BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1343| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1343 Author: Huffman (D), et al Amended: 7/13/09 in Senate Vote: 21 SENATE ENV. QUALITY COMMITTEE : 5-2, 7/6/09 AYES: Simitian, Corbett, Hancock, Lowenthal, Pavley NOES: Runner, Ashburn ASSEMBLY FLOOR : 48-29, 6/2/09 - See last page for vote SUBJECT : Solid waste: architectural paint: recovery program SOURCE : Californians Against Waste DIGEST : This bill establishes the architectural paint recovery program and enforced by the California Integrated Waste Management Board for recycling and reuse purposes for the number one source of household waste. ANALYSIS : Existing law: 1. Establishes the Mercury Thermostat Collection Act of 2008 that sets forth a program for manufacturers of mercury-containing thermostats to manage the waste thermostats. (Section 25214.8.10 et seq. of the Health and Safety Code) CONTINUED AB 1343 Page 2 2. Requires every retailer of cell phones sold in this state shall have in place a system for the acceptance and collection of used cell phones for reuse, recycling, or proper disposal. (Section 42494 of the Public Resources Code) 3. Establishes the Rechargeable Battery Recycling Act of 2006 that requires every retailer to have in place a system for the acceptance and collection of used rechargeable batteries for reuse, recycling, or proper disposal (Section 42453 of the Public Resources Code) 4. Establishes the Electronic Waste Recycling Act, overseen by the California Integrated Waste Management Board (CIWMB) in partnership with the Department of Toxic Substances Control (DTSC), to collect and recycle electronic waste (Section 42460 et seq. of the Public Resources Code and Section 25214.10 et seq. of the Health and Safety Code) 5. Prohibits the disposal of liquid latex paint in the land or into the waters of the state unless authorized by applicable provisions of law. (Section 25217.1 of the Health and Safety Code) 6. Allows for management, storage and transportation of latex paint for recycling as described. (Sections 25217.3 and 25217 of the Health and Safety Code) 7. Prohibits the disposal of hazardous waste, including most oil-based paints, in a solid waste landfill. 8. Authorizes the Air Resources Board and local air districts to adopt and enforce rules regarding architectural paints or coatings, including achieving a feasible reduction in volatile organic compounds emitted by the architectural paint or coating. (Section 40916 of the Health and Safety Code) 9. Requires state agencies to use recycled latex paint with at least 50 percent postconsumer recycled content. (Section 12209 of the Public Contract Code) CONTINUED AB 1343 Page 3 This bill: 1. Makes findings and declarations regarding the management of post consumer architectural paint. 2. Establishes the Architectural Paint Recovery Program (Program) and states the purpose of the Program is to require paint manufacturers to develop and implement a program to manage paint and reduce the costs and environmental impacts of postconsumer paint in California. 3. Requires manufacturers of architectural paint, individually or through a stewardship organization, submit an architectural paint stewardship plan to the CIWMB to develop and implement a recovery program to reduce the generation of postconsumer architectural paint, promote the reuse of postconsumer architectural paint, and manage the end-of-life of postconsumer architectural paint, in an environmentally sound fashion, including collection, transportation, processing, and disposal. 4. Prohibits manufacturers or retailers from selling architectural paint in this state unless the manufacturer is in compliance with the new chapter. 5. Requires the CIWMB, on July 1, 2011, and on January 1 and July 1 annually thereafter, to post a notice on its Internet website listing manufacturers that are not in compliance with this chapter and requires a wholesaler or a retailer that distributes or sells architectural paint shall monitor CIWMB's website to determine if the sale of a manufacturer's architectural paint is in compliance with this chapter. 6. Requires, on or before January 1, 2011, a manufacturer or designated stewardship organization shall submit an architectural paint stewardship plan to the CIWMB. The plan shall: A. Demonstrate sufficient funding for the architectural paint stewardship program as described in the plan, including a funding mechanism for CONTINUED AB 1343 Page 4 securing and dispersing funds to cover administrative, operational, and capital costs, including the assessment of charges on architectural paint sold by manufacturers in this state. (1) The funding mechanism shall provide for an architectural paint stewardship assessment for each container of architectural paint sold by manufacturers in this state and the assessment shall be remitted to the stewardship organization, if applicable. (2) The architectural paint stewardship assessment shall be added to the cost of all architectural paint sold to California retailers and distributors, and each California retailer or distributor shall add the assessment to the purchase price of all architectural paint sold in the state. (3) The architectural paint stewardship assessment shall be approved by the board as part of the plan, and shall be sufficient to recover, but not exceed, the cost of the architectural paint stewardship program. B. Address the coordination of the architectural paint stewardship program with local household hazardous waste programs, including contracting for the costs for architectural paint collected by the household hazardous waste programs, where practical. C. Include goals established by the manufacturer or stewardship organization to reduce the generation of postconsumer paint, to promote the reuse of postconsumer paint, including recovery and recycling of postconsumer paint, as practical, based on current household hazardous waste program information. The goals may be revised by the manufacturer or stewardship organization based on the information collected for the annual report. D. Include consumer, contractor, and retailer education and outreach efforts to promote the source CONTINUED AB 1343 Page 5 reduction and recycling of architectural paint. This information may include, but is not limited to, developing, and updating as necessary, educational and other outreach materials aimed at retailers of architectural paint. These materials shall be made available to the retailers. 7. Requires, on or before July 1, 2011, or two months after a plan is approved, the manufacturer or stewardship organization to implement the architectural paint stewardship program described in the approved plan. 8. Requires the CIWMB to review and approve the architectural paint stewardship plan within 90 days of receipt. A plan not acted upon by the board within 90 days shall be deemed adopted. 9. Requires, by July 1, 2012, and each year thereafter, a manufacturer of architectural paint sold in this state shall, individually or through a representative stewardship organization, submit a report to the CIWMB describing its architectural paint recovery efforts. At a minimum, the report shall include all of the following: A. The total volume of architectural paint sold in this state during the preceding calendar year. B. The total volume of postconsumer architectural paint recovered in this state during the preceding calendar year. C. A description of methods used to collect, transport, and process postconsumer architectural paint in this state. D. The total cost of implementing the architectural paint stewardship program. E. An evaluation of how the architectural paint stewardship program's funding mechanism operated. F. Examples of educational materials that were provided to consumers the first year and any changes CONTINUED AB 1343 Page 6 to those materials in subsequent years. 10.Requires the CIWMB to review the annual report required within 90 days of receipt shall adopt a finding of compliance or noncompliance with the provisions of this chapter and to enforce this chapter. The board shall enforce this chapter. 11.The stewardship organization shall pay the board administrative fees in the amount of ____ dollars ($____) when the plan is submitted for review and approval and thereafter an annual administrative fee of 0.05 percent of the architectural paint stewardship program costs as reported in the plan. 12.Establishes that a civil penalty may be administratively imposed by the CIWMB on any person who violates this chapter in an amount of $1,000 for each violation and for any person who intentionally, knowingly, or negligently violates this chapter may be assessed a civil penalty by the CIWMB of up to $10,000 for each violation. 13.Requires any penalties collected by the board shall be used to offset the cost of the review and approval architectural paint stewardship plans and annual reports and of enforcement activities. 14.States that any action taken by a manufacturer or representative stewardship organization regarding the cost recovery system or the collecting, transporting, or processing of postconsumer architectural paint, pursuant to the requirements of this chapter and only to the extent necessary to plan and implement the cost recovery system, collection system, or recycling system, is not a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or any other state law relating to antitrust, regulation of trade, or regulation of commerce. Comments CONTINUED AB 1343 Page 7 Both latex and oil-based paints are considered hazardous waste in California, making their disposal in a solid waste landfill prohibited. Paint contains resins, solvents, pigments, and additives. While latex paint is less hazardous than oil-based, its ingredients are hazardous to public health and the environment. Paint should not be allowed to "dry out" for disposal, or poured down storm drains or into the sewer system. According to CIWMB, postconsumer paint is the largest source of household hazardous waste in California. In the 2007-08 fiscal year, 2.4 million gallons of postconsumer paint was collected, comprising 29 percent of household hazardous waste. Management of this paint costs local governments approximately $6-8 per gallon, for a total estimated cost of $14-18 million annually. According to the author's office, only five percent of households in California use local household hazardous waste programs. NOTE: Please refer to the Senate Environmental Quality Committee analysis for background information on product stewardship and the extended producer responsibility programs. Related legislation . AB 283 (Chesbro), 2009-10 Session, creates the California Product Stewardship Act to establish an extended producer responsibility framework that encourages producers to be comprehensively responsible for the life cycle of their products. (In the Assembly Appropriations Committee.) FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No ASSEMBLY FLOOR : AYES: Ammiano, Arambula, Beall, Blumenfield, Brownley, Buchanan, Caballero, Charles Calderon, Carter, Chesbro, Coto, Davis, De La Torre, De Leon, Eng, Evans, Feuer, Fong, Fuentes, Galgiani, Hall, Hayashi, Hernandez, Hill, Huffman, Jones, Krekorian, Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning, Nava, John A. Perez, V. Manuel Perez, Portantino, Price, Ruskin, Salas, Saldana, Skinner, Solorio, Swanson, Torlakson, Torres, Torrico, Yamada, Bass CONTINUED AB 1343 Page 8 NOES: Adams, Anderson, Bill Berryhill, Tom Berryhill, Blakeslee, Conway, Cook, DeVore, Duvall, Fletcher, Fuller, Gaines, Garrick, Gilmore, Hagman, Harkey, Huber, Jeffries, Knight, Logue, Miller, Nestande, Niello, Nielsen, Silva, Smyth, Audra Strickland, Tran, Villines NO VOTE RECORDED: Block, Emmerson, Furutani TSM:mw 7/22/09 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** CONTINUED