BILL ANALYSIS AB 1998 Page 1 Date of Hearing: May 5, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 1998 (Brownley) - As Amended: April 20, 2010 Policy Committee: Natural ResourcesVote:6-3 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill prohibits a store from distributing single-use bags. Specifically, this bill: 1)As of January 1, 2012, prohibits a supermarket, larger pharmacy or convenience store from distributing a single-use bag made of plastic, paper or other material and requires the retailer to offer for sale reusable bags. 2)Requires the Department of Recycling and Resource Recovery to: a) Administer and enforce the provisions of this bill. b) Determine whether a reusable bag distributed by retailer contains lead or other heavy metals. c) Submit a report to the Legislature by January 1, 2015, on the effectiveness of this bill. FISCAL EFFECT 1)One-time costs during 2011-12 and 2012-13 of approximately $1.5 million, equivalent to 21 positions, to prepare regulations, assist regulated stores, characterize reusable bags, and develop a program-specific database (Integrated Waste Management Account (IWMA)). 2)Ongoing cost of approximately $1 million annually, equivalent to 15 positions, beginning in 2013-14, to provide ongoing assistance to regulated stores, conduct site inspections and audits, characterize reusable bags, and maintain database AB 1998 Page 2 (Integrated Waste Management Account (IWMA)). 3)One-time costs of approximately $150,000 in 2013-14 to develop report to Legislature (IWMA). COMMENTS 1)Rationale . The sponsor notes that Californians dispose of billions of plastic bags each year and that these bags-nearly none of which are recycled-are both a nuisance and a danger. These bags, the sponsor continues, trash our cities and contaminate our coasts and oceans, so much so that many parts of the sea contain more plastic than plankton. Single-use alternatives to plastic bags present their own problems, the sponsor claims. Paper bags use forest resources and are energy intensive to produce and transport. "Compostable" single-use bags break down only under ideal conditions, but generally not in landfills and not in the marine environment. The sponsor contends this bill leads to the most reasonable, sustainable alternative to single-use plastic bags-widespread adoption of reusable bags. 2)Background . a) Oceans of Plastic, Polyethylene Streams . Numerous studies find the world's oceans are becoming increasingly polluted, the biggest single source of that pollution is mainland runoff, and nearly all of this pollution is plastic. A gyre of trash, thousands of miles wide and hundreds of feet deep, sits in the Pacific. Another trash gyre has been discovered in the Atlantic. Recent academic studies found that, in some parts of the sea, the amount of plastic suspended in the water outweighs the amount of plankton by several tons. This growing contamination harms sea life, which ingests the tiny plastic bits, swallow large pieces of it whole, or become entangled in it It is difficult to say how much single-use plastic bags contribute to this plastic soup; there has yet to be an academic study identifying in detail the origins of sea born plastic. But such bags are likely a significant component. Single-use plastic bags are light and readily catch the wind. Even when disposed of properly, they fly off the back of garbage trucks and tumble from landfills. Rains collect them from streets and gutters, cast them on AB 1998 Page 3 the beaches and sweep them to sea. Those that don't reach the ocean, or those that simply haven't made it there yet, litter streets and streambeds. They catch in trees and on chain link fences. According to the now defunct California Integrated Waste Management Board, the state's municipal governments spend tens of millions of dollars each year collecting the bags. b) Plastic Bags Restricted Around the World . Responding to concerns over marine pollution, the nuisance of litter, and the deadly consequences of flash flooding, numerous governments around the world require retailers to charge for single-use plastic bags (Ireland, for example), restrict their use (Mexico City allows distribution of biodegradable plastic bags only), or ban them outright (such as Dhaka, Bangladesh; Mumbai, India; and China). In California, the cities of San Francisco and Oakland recently banned the bags. c) California Addresses Plastic Bags Too, But to Little Effect. The state has several programs to encourage more responsible management of waste, including programs for recycling, toxic waste disposal, and storm water management. In addition, state law requires cities and counties to divert 50% of their solid waste from landfills by 2000. What's more, state law requires supermarkets and drug stores to establish plastic bag recycling programs. Nonetheless, California recycles only a small fraction of the 19 billion plastic bags it uses each year. 3)Are Paper Bags Better ? Paper bags do not present the litter problem that single-use plastic bags do. Because they are flat and weighty, they do not blow away as easily as plastic bags. And, should they enter the marine environment, they quickly biodegrade. In addition, paper bags are easily recycled. Production of the bags, however, consumes valuable timber. The bags are also relatively energy intensive to produce and to transport. For these reasons, some do not see single-use paper bags as an ideal substitute for plastic bags. 4)What If I Forget My Bags ? Some express concern that the bill could impose an undue financial burden on customers who forget their reusable bags or who cannot afford to buy them. This is because each reusable bag costs a dollar or more. Such customers would have no choice but to purchase the relatively AB 1998 Page 4 expensive reusable bags to carry home their groceries, even it they have purchased reusable bags in the past. 5)Related Legislation . a) AB 2138 (Chesbro) , also before this committee, prohibits a food provider from distributing disposable food packaging (including take-out bags) unless the packaging is compostable or recyclable. b) AB 68 (Brownley, 2009) and AB 87 (Davis, 2009) both sought to place a 25-cent fee on the distribution of single-use carry-out bags. Both bills were held by this committee. c) AB 2058 (Levine, 2007) would have prohibited the free dispensing of carryout plastic bags by a store to its customers, unless the store can demonstrate to the CIWMB that 35% and 70% of the plastic bags it dispensed in 2007 have been diverted from the waste stream by July 1, 2011 and July 1, 2012, respectively. AB 2058 died in Senate Appropriations. d) AB 2449 (Levine) - Chapter 845, Statutes of 2006 requires supermarkets and drug stores to establish plastic bag recycling programs. AB 2449 also pre-empted local governments from enacting fees on plastic bag use. 6)Support . This bill is supported by numerous environmental groups and American Federation of State, County and Municipal Employees (AFSCME), who argue single-use bags pollute our marine ecosystem, litter our cities, and consume limited resources, including public funds. 7)Opposition . The bill is opposed by several industry groups and the California Taxpayers' Association, who contend single-use bags are affordable, convenient and environmentally benign when managed properly. Some opponents also argue that banning these bags will needlessly destroy the jobs of the Californians who produce them and raise prices on retail customers. Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081