BILL ANALYSIS
AB 1173
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1173 (Huffman)
As Amended September 4, 2009
Majority vote
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|ASSEMBLY: |51-25|(June 2, 2009) |SENATE: |21-17|(September 10, |
| | | | | |2009) |
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Original Committee Reference: E.S. & T.M.
SUMMARY : Prohibits a manufacturer from using funds from energy
distribution charges for the purchase and distribution of
compact fluorescent lights (CFLs), unless the CFLs meet
specified standards, including low levels of mercury, and the
manufacturer has implemented a fluorescent lamp recycling
program. Requires a retailer who receives funds from energy
distribution charges for a fluorescent lamp program to provide
in-store collection opportunities for recycling fluorescent
lamps. Prohibits, on and after January 1, 2011, the sale of new
general purpose lighting fixtures that contain preheat ballasts
for the operation of preheat linear fluorescent lamps.
The Senate amendments :
1)Prohibit, on and after January 1, 2011, the sale of new
general lighting purpose lighting fixtures that contain
preheat ballasts for operation of preheat linear fluorescent
lamps.
2)Define terms for the purposes of the chapter.
3)Prohibit funds generated from energy distribution charges from
being distributed to any manufacturer for the purchase and
distribution of compact fluorescent lamps, unless all of the
following conditions, along with conditions that were in the
Assembly version of the bill, exist:
a) All compact fluorescent lamps purchased contain no more
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mercury than the amount referenced in the most recent
ENERGY STAR version, or four milligrams of mercury for any
basic lamp of up to 25 watts, whichever is less; and,
b) Packaging for the subsidized compact fluorescent lamps
has a label informing consumers that disposing of
fluorescent lamps in the solid waste stream is prohibited
and informing consumers about opportunities for proper
recycling.
4)Authorize the manufacturer to contract with a retailer for
collection of end-of-life residential fluorescent lamps.
5)Prohibit funds from energy distribution charges from being
used to pay for manufacturer or retailer recycling activities
required by this bill.
6)Establish requirements for the residential fluorescent lamp
recycling program, including that the program must be
established within 90 days of receiving funds; demonstrate
sufficient funding; be free and convenient to all consumers;
and, include education and outreach efforts, as specified.
7)Require manufacturers of residential fluorescent lamps, within
one year of implementing a residential fluorescent lamp
recycling program, and annually thereafter, to submit a report
to the California Integrated Waste Management Board (CIWMB)
describing its residential fluorescent lamp recovery efforts.
8)Add CIWMB authority and requirements in relation to
residential fluorescent lamp collection and recycling
programs, including:
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a) Require the CIWMB to review the annual report and within
90 days of receipt to adopt a finding of compliance or
noncompliance with the provisions of this bill;
b) Require the CIWMB, prior to adopting a finding of
compliance or noncompliance, to notify manufacturers and to
provide the manufacturer with an opportunity to cure its
noncompliance or argue that the finding of noncompliance is
in error. Require the CIWMB, if the manufacturer does not
persuade the board that it is in compliance, to post a
notice listing the manufacturer as not in compliance;
c) Authorize manufacturers that have been listed as
non-compliant, but can demonstrate to the satisfaction of
the CIWMB that they are in compliance, to request a
certification letter from the CIWMB to that effect;
d) Require the CIWMB to enforce the requirements of the
bill; and,
e) Require the CIWMB to establish administrative fees to be
paid by CFL manufacturers to cover the cost of reviewing
and approving the annual report and the cost of oversight
and enforcement of the residential fluorescent lamp
recycling program. Prohibit the fee from exceeding $5,000
per manufacturer and require the fee to bear a reasonable
relationship to actual costs.
9)Delete provisions that:
a) Give the CFL manufacturer or distributor of CFLs the
option of agreeing to pay a fee for each CFL for which
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energy distribution charge funding is received instead of
implementing a recycling program for CFLs; and,
b) Create a Fluorescent Lamp Recycling Fund in the State
Treasury, to be administered by the Department of Toxic
Substances Control, to make payments to retailer-based
collectors, local governments, and other approved
collectors of residentially-generated fluorescent lamps.
AS PASSED BY THE ASSEMBLY , this bill:
1)Prohibited the distribution of moneys from energy distribution
charges for the purchase and distribution of compact
fluorescent lights that did not meet specified standards or to
retailers that did not establish a recycling program.
2)Established a per subsidized fluorescent lamp fee to fund
payments to approved collectors of fluorescent lamps.
FISCAL EFFECT : According to the Senate Appropriations
Committee, CIWMB review of reports and enforcement will cost
between $20,000 and $40,000 per year, to be funded by the
Integrated Waste Management Account (fully offset by fees).
COMMENTS : The bill's sponsor asserts that AB 1173 is aimed at
reducing mercury emissions from residential fluorescent lighting
through market-based source reduction and recycling incentives.
They contend that while the environmental benefits of using
fluorescent lighting over incandecent lighting is clear, the
current generation of fluorescent lighting contains mercury.
Proponents argue that AB 1173 will motivate manufacturers to
reduce mercury in CFLs, while helping to establish a free and
convenient program for consumers to properly dispose of
fluorescent lighting.
The California Public Utilities Commission's energy efficiency
programs are funded by charges applied to each customer's bill
within each utility's service territory. CFLs use about 75%
less energy than incandescent bulbs, overall. Since 1999, as
part of their energy efficiency programs, investor owned
utilities (IOUs) have funded a lighting incentive program to
provide 'pre-bates' to CFL manufacturers and distributors in
order to buy down the purchase price of CFLs sold at retail.
Last year, the IOUs spent approximately $60 million collectively
to buy down the price of an estimated 30 million lamps. The
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IOUs have proposed spending about $45 million annually to
subsidize fluorescent lamp purchases over the next three years.
Californians Against Waste asserts that the main criteria used
by the IOUs to determine eligibility for these funds have been
price. These low-priced lamps, often imported, tend to have
higher levels of mercury and do not last as long as their
counterparts that are manufactured in the United States.
Mercury is an essential part of CFLs because it allows the bulb
to be an efficient light source. Unfortunately, it is also a
reproductive toxicant and can harm the brain, heart, kidneys,
lungs, and immune system of people of all ages. Additionally,
the public is prohibited from disposing CFLs in the solid waste
stream.
Since IOUs continue to include substantial subsidies for
fluorescent lamp purchases in their programs, tens of millions
of CFLs will be purchased, installed, and eventually discarded
in California. Currently, there is no convenient and cost
effective infrastructure in place for California residents to
recycle their lamps. This bill limits eligibility for energy
distribution charges to only those manufacturers and retailers
whose lamps meet certain criteria, including low levels of
mercury, and who create a program for collecting and properly
recyling spent compact fluorescent lights.
According to opponents, this bill, "Threatens California's
successful track record on energy efficiency and acts as a
disincentive, by requiring manufacturers that participate in
Public Goods Charge efficiency programs to pay for the recycling
of CFLs. The bill could cost California electric customers $10
million per year and require California utilities to purchase an
additional 120 million KW hours of electricity generation
undermining state energy efficiency, renewable portfolio, and AB
32 Greenhouse Gas reduction goals."
Analysis Prepared by : Shannon McKinney / E.S. & T.M. / (916)
319-3965
FN: 0003149