BILL ANALYSIS AB 1998 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator S. Joseph Simitian, Chairman 2009-2010 Regular Session BILL NO: AB 1998 AUTHOR: Brownley AMENDED: May 28, 2010 FISCAL: Yes HEARING DATE: June 28, 2010 URGENCY: No CONSULTANT: Caroll Mortensen SUBJECT : SOLID WASTE: SINGLE-USE CARRYOUT BAGS SUMMARY : Existing law , pursuant to Public Resources Code, Chapter 5.1, 42250 et seq.: 1) Requires operators of stores (defined as supermarkets and stores over 10,000 square feet that include a pharmacy) to establish an in-store plastic carryout bag recycling program. Under the program: a) Plastic bags provided by the store must include a label encouraging customers to return the bag to the store for recycling; b) Easily accessible recycling bins for plastic bags must be provided; c) All plastic bags collected must be recycled in a manner consistent with the local jurisdiction's recycling plan; d) The store must maintain records relating to the program for at least three years and must make the records available to the local jurisdiction or the California Integrated Waste Management Board (CIWMB) (now the Department of Resources Recovery and Recycling or DRRR) upon request; and, e) The operator of the store must make reusable bags available to customers. AB 1998 Page 2 2) Preempts local governments from requiring stores that meet these provisions from implementing separate recycling programs or from imposing a fee on plastic bags. 3) Sunsets the above provisions on January 1, 2013. This bill : 1) Repeals the existing in-store plastic bag recycling program (#1 and #2 above). 2) Defines terms used in the bill, including: a) "Recycled paper bag" as a paper carryout bag that contains a minimum of 40% post-consumer recycled content; is accepted for recycling in curbside programs in a majority of households that have access to curbside recycling programs; is compostable; and, has printed on the bag the name of the manufacturer, the location where manufactured, and the percentage of post-consumer content. b) Until a standard adopted by DRRR, "reusable bag" as a bag that is designed and manufactured for at least 100 uses and is made of a washable material that "does not contain lead or any toxic metal in a toxic amount, as determined by the Department." By January 1, 2013, requires DRRR to establish standards for reusable bags, as specified. c) "Single-use carryout bag" as a bag made of plastic, paper, or other material that is provided by a store to a customer at the point-of-sale and that is not a reusable bag. Single-use carryout bag does not include a bag provided at a pharmacy to a customer purchasing prescription medication or a nonhandled bag used to protect a purchased item from damaging or contaminating other purchased items when placed in a recycled paper bag or reusable bag. d) "Store" as supermarkets; stores over 10,000 square feet that include a pharmacy; and, a convenience food AB 1998 Page 3 store or foodmart engaged in retailing a limited line of goods that generally includes milk, bread, soda, and snacks. 3) Prohibits, on and after January 1, 2012, a store from providing single-use carryout bags to customers at the point-of-sale. Requires stores to make reusable bags available for purchase and authorizes stores to provide reusable bags at no cost. 4) Requires, on and after July 1, 2013, that a store only provide reusable bags to consumers. 5) Authorizes stores to provide customers participating in the California Special Supplemental Food Program for Women, Infants, and Children with reusable bags or recycled paper bags at no cost. 6) Requires stores to make available for sale to consumers at the point-of-sale a recycled paper bag at a reasonable cost, but not less than five cents. 7) Requires convenience food stores and foodmarts to comply with the new requirements by July 1, 2013. 8) Allows San Francisco to continue to offer compostable plastic bags that meet specified requirements. 9) Requires, on and after January 1, 2013, and every two-years thereafter, producers of reusable bags to submit a certification to DRRR that each bag meets the requirements specified in the bill and any standards developed by DRRR. Producers must also submit a fee for each certification, not to exceed $10,000 per producer for the initial certification and between $2,000 and $3,000 every two-years thereafter. Fees collected must be used by DRRR to administer the requirements of the bill. 10)Authorizes DRRR to conduct inspections to enforce this chapter. 11)Establishes, for stores that do not comply with the bag distribution requirements above, administrative civil AB 1998 Page 4 penalties up to $500 for the first violation, and an additional $500 for subsequent violations, up to a total of $5,000. 12)Establishes, for violations of the reusable bag certification requirements, or any submission of false information, administrative civil penalties of up to $50,000 per violation, not to exceed an annual total of $150,000. 13)Preempts local governments from enforcing or adopting any new or existing law, ordinance, resolution, regulation, or rule on any store, as defined, relating to reusable bags, single-use carryout bags, recycled paper bags, or any other bag referred to in the bill. 14)Makes related findings and declarations. COMMENTS : 1)Purpose of Bill . According to the author, plastic single-use bags are urban tumbleweeds in our communities as these bags are blown into the gutters and collect in our storm drain system, eventually making their way out to the ocean. 2)Background . California taxpayers spend approximately $25 million annually to collect and bury the 19 billion plastic bags used every year. However, these bags are rarely recycled; DRRR estimates that less than 5% of all single use plastic bags in the state are actually recycled. Instead, local agencies spend millions more to dispose of plastic bags and clean up discarded plastic bags. Plastic bags are a significant contributor to litter and marine debris. Their light weight and expansive nature makes them especially prone to blowing into waterways. Even when disposed of in the waste stream, these bags pose litter problems as they blow off of trucks and out of solid waste handling operations. According to the US EPA, marine debris has become a serious problem along shorelines, coastal waters, estuaries, and oceans throughout the world. It is estimated that 60-80% of all marine debris, and 90% of AB 1998 Page 5 floating debris, is plastic. Marine debris can be life threatening to marine organisms and can wreak havoc on coastal communities and the fishing industry. Recent studies by the Algalita Marine Research Foundation and the Southern California Coastal Water Research Project have found that the average mass of plastics in the seawater off the coast of Long Beach is two and a half times greater than the average mass of plankton. After storms with excessive runoff, the mass of plastics is even greater. A similar study over seawater 1,000 miles west of San Francisco found the mass of plastics was six times the mass of plankton in drifts where marine animals congregate for feeding on plankton. In February 2007, the Ocean Protection Council (OPC) adopted a resolution to reduce marine debris, which included specific actions on single-use plastics. In November 2008, OPC adopted its final implementation strategy for the resolution. The strategy includes three "priority actions for measurable success:" 1) Implement a take-back program for convenience food packaging; 2) Prohibit single-use products that pose significant ocean littler impacts where a feasible alternative is available; and, 3) Assess fees on commonly littered items. Plastic single-use bags are included in action 2; OPC proposes that a fee be added for all single-use paper and plastic bags to incentivize people to switch to reusable bags. OPC goes on to suggest that if a fee does not dramatically reduce the use of bags, a ban should be considered. AB 1998 is proposing a sales ban on just plastic bags. 3)Policy Considerations . While the basic framework for a single-use carryout bag program are represented, issues remain that should be addressed to ensure the bill can be efficiently and effectively implemented and accomplishes the goals it seeks to accomplish. a) Local Government Preemption: Many local governments have adopted ordinances or regulations that address single-use bags in varying ways. Some ban all bags, some just plastic, some charge fees or some combination of these. This bill preempts local governments from implementing or enforcing their programs and prevents new AB 1998 Page 6 ones from being established. It would be beneficial to clearly understand how this preemption will affect existing and future programs. b) Litter and Pollution Remediation: This bill takes a slightly different approach than previous legislation. One difference being the establishment of a funding mechanism to deal with the litter and pollution, as well as problems posed in the stormwater, sewer and water treatment facilities associated with bag debris. Previous legislation included fees to be placed on bags to directly address those problems. AB 1998 does not establish a funding mechanism for these programs. It requires stores to make available a recycled paper bag at not more than 5 cents that is retained by the store. c) Recycled Paper Bags: This bill requires that stores make available 40% postconsumer recycled paper bags at the checkout counter for not less than 5 cents regardless of size. While 40% postconsumer content is common in grocery sacks, smaller paper bags often can not accommodate that level of recycled content. Options should be considered to encourage the highest levels of recycled content while allowing time for the industry to adjust. d) Bag Certification: While it is important that recycled content for paper bags and basic performance characteristics for reusable bags be able to be substantiated and meet the requirements of AB 1998, the current process seems extremely cumbersome and expensive without much return. A more streamlined and efficient approach can be established. e) In-Store Bag Recycling Program: AB 1998 proposes to repeal this program. This requires stores to provide recycling opportunities to their customers for plastic bags. While often underutilized, it was a popular program in many stores and concerns have been raised about other options for recycling plastic bags. Consumers have grown accustom to these programs to recycle bags generated by not just the stores where they were placed, but other establishments as well. Also, AB 1998 Page 7 this program did provide a feedstock to the film plastic recycling industry. The repeal would be effective January 1, 2011, a year before the proposed program would be implemented. The repeal of this program should be evaluated, and at the very least, phased out as the new program phases in. f) Scope: Many local governments have ordinances or regulations that address bags at a wide scope of stores. AB 1998 covers bags used at the checkout stand at grocery and convenience stores. While it covers the stores with the highest bag use rates, it does leave other establishments out. It also bans just plastic bags and many local jurisdictions have banned all single-use bags. 4)Related Legislation . a) AB 2449 (Levine) Chapter 845, Statutes of 2006 requires all stores to establish a plastic bag recycling program. The stated goal of this legislation was to increase recycling, and to create the infrastructure necessary to collect and recycle plastic bags. AB 2449 also preempted local governments from enacting a per-bag fee on plastic bags. b) AB 2058 (Levine) of 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 Committee. c) AB 2138 (Chesbro) of 2010 establishes recycling and composting requirements for take-out food packaging, including bags. (Assembly Appropriations Committee). d) SB 228 (DeSaulnier) of 2009 requires bags labeled "compostable" or "marine degradable" to be readily and easily identifiable to assist in their collection and sorting. (Assembly Natural Resources Committee). AB 1998 Page 8 e) SB 531 (DeSaulnier) of 2009 requires manufacturers of plastic carryout bags to develop specified educational materials to encourage the reduced use or recycling of those bags. The CIWMB may modify the educational materials and requires CIWMB to approve the educational materials by January 2012. f) AB 68 (Brownley) of 2009 and AB 87 (Davis) of 2009 both sought to place a 25-cent fee on the distribution of single-use carry-out bags. Both bills were held in Assembly Appropriations Committee. SOURCE : Heal the Bay SUPPORT : AFSCME, Amerigreenbag.com, Association of Communities United of South Los Angeles, Ballona Creek Renaissance, Bay Area Council, California Association of Environmental Health Administrators, California Coastal Coalition, California Coastkeeper Alliance, California Grocer's Association, California League of Conservation Voters, California State Lands Commission, Californians Against Waste, Chico Bag, Cities of Burbank, Del Mar, Long Beach, Newport Beach, Pasadena, San Buenaventura, Solana Beach, Ventura, Clean South Bay, Clean Water Action California, Defenders of Wildlife, Downtown Encinitas MainStreet Association, Duro Bag Manufacturing Company, Earth Resource Foundation, Earthwise Bag Company, East Bay Municipal Utility District, Environment California, Envirosax, ForestEthics, Fresh and Easy Neighborhood Market Inc., Friends of Five Creeks, Global Green USA, Green Sangha, Humboldt Coastkeepers, Humboldt County Board of Supervisors, Los Angeles County, Los Angeles County Solid Waste Management Committee/ Integrated Waste Management Task Force, Marin County Board of Supervisors, Monterey County Board of Supervisors, Monterey Regional Waste Management District, Natural Resources Defense Council, Neighborhood Market Association, Northcoast Environmental Center, OCEANA, Orange AB 1998 Page 9 County Coastkeeper, Ormond Beach Observers, Pam Slater-Price, Chairwoman, San Diego County Board of Supervisors, Planning and Conservation League, Plastic Pollution Coalition, PW Supermarkets Inc. (San Jose), Rainforest Action Network, Rite Aid, San Diego Coastkeeper, San Francisco Chamber of Commerce, San Luis Obispo County Integrated Waste Management Authority, Santa Barbara Channelkeeper, Santa Clara County Board of Supervisors, Santa Monica Bay Restoration Commission, Santa Monica Baykeeper, Save Mart Supermarkets, Seventh Generation Advisors, Sierra Club of California, Solid Waste Solutions, Inc, StopWaste.org - Alameda County Waste Management Authority, Steven Bochco Productions, Suja Lowenthal - Councilmember - City of Long Beach, Super A Food Inc. (Commerce), Surfers' Environmental Alliance, Surfrider Foundation (plus Humboldt & Santa Barbara Chapter), State Lands Commission, Urban Semillas, Washington Elementary PTA, Western States Council of the United Food & Commercial Workers, WiLDCOAST, Wild Heritage Planners, WinCo Foods Inc., Wisdom Academy for Young Scientists, Youth Opportunities for High School and Associations of Communities United of South Los Angeles, 1 Bag at a Time, Inc., 910 individuals OPPOSITION : American Chemistry Council, American Forest & Paper Association, Biodegradable Products Institute, Bradley Packaging Systems, California Film Extruders & Converters Association, California Forestry Association, Californians for Extended Producer Responsibility, Central California Hispanic Chamber of Commerce, Command Packaging, Corona Chamber of Commerce, Crown Poly Inc., Great American Packaging, Heritage Bag, Hispanic Chamber of Commerce, Howard Jarvis Taxpayers Association, Metabolix, Long Beach Area Chamber of Commerce, Redondo Beach Chamber of Commerce