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.









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           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  









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                 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  









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              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  









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             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  









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                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,  









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                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).










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              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
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                          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