BILL ANALYSIS
AB 2398
Page 1
Date of Hearing: April 19, 2010
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 2398 (John A. Perez) - As Amended: April 14, 2010
SUBJECT : Product stewardship: carpet.
SUMMARY : Prohibits producers and retailers of carpet from
selling carpet in California unless the producer or a carpet
stewardship organization (organization) has submitted a
stewardship plan to the Department of Resources Recycling and
Recovery (DRRR), as specified.
EXISTING LAW :
1)Pursuant to the California Integrated Waste Management Act of
1989, requires local governments to divert 50 percent of solid
waste generated from landfill disposal through source
reduction, reuse, and recycling.
2)Establishes the California Oil Recycling Enhancement Act,
which requires manufacturers of used oil to pay a fee of 4
cents per quart (16 cents per gallon) to DRRR. DRRR then pays
a recycling incentive of 4 cents per quart to industrial
generators, curbside collection program operators, and
certified used oil collection center for used oil collected
from the public and transported for recycling. This Act
includes related grants and loans, development and
implementation of an information and education program, and a
reporting, monitoring, and enforcement program.
3)Establishes the Electronic Waste Recycling Act of 2003, which
requires a retailer selling a covered electronic device (CED)
in California to collect a recycling fee (between $8 and $25)
from the consumer. Fees are deposited into the Electronic
Waste Recovery and Recycling Account, which is continually
appropriated to DRRR and the Department of Toxic Substances
Control (DTSC) to make electronic waste recovery payments to
cover the net cost of an authorized collector in operating a
"free and convenient" system for collecting, consolidating,
and transporting CEDs, and to make electronic waste recycling
payments to cover an electronic waste recycler's average net
cost of receiving, processing, and recycling CEDs. The Act
defines CED as a product that contains a video display device
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4 inches and larger.
4)Establishes the Cell Phone Recycling Act of 2004, which
requires every retailer of cell phones to have in place a
system for the acceptance and collection of used cell phones
for reuse, recycling, or proper disposal.
5)Establishes the Rechargeable Battery Recycling Act of 2006,
which requires every retailer of rechargeable batteries to
have in place a system for the acceptance and collection of
used rechargeable batteries for reuse, recycling, or proper
disposal.
6)Establishes the Mercury Thermostat Collection Act of 2008,
which requires manufacturers to establish and maintain a
program for out-of-service mercury-added thermostats.
Requires the program to include collection, handling, and
arranging for appropriate management of out-of-service
mercury-added thermostats.
7)Requires pharmaceutical manufacturers that sell of distribute
a medication in California, which is usually self-injected at
home with a hypodermic needle to submit to the DRRR a plan
that describes any actions taken by the manufacturer for the
safe collection and proper disposal of the waste devices by
July 1, 2010, and annually thereafter.
THIS BILL :
1)Defines terms used in the bill.
2)On or before September 30, 2011, requires a carpet producer or
carpet stewardship organization to submit a carpet stewardship
plan to DRRR. Requires producers or carpet stewardship
organizations to consult with stakeholders during development
of the plan.
3)Specifies that each plan include:
a) Contact information for all participating producers;
b) The collection rate for the carpets subject to the plan
to achieve 50 percent collection by calendar year 2014 and
70 percent by 2017;
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c) An overall target of 95 percent collection; and,
d) A description specified elements, including brands of
carpet covered by the plan, the annual schedule for
achieving the collection rate, collection opportunities for
consumers, reuse and recycling rates, and financing methods
for plan implementation.
4)Requires a producer or carpet stewardship organization to
contact cities, counties, districts, and regional agencies, in
whose jurisdictions the program will be implemented to:
a) Enter into an agreement to reimburse the local public
agency for the cost of collecting carpets; and/or,
b) Provide the local agency with the location, hours, and
contact information for the convenient collection points
for carpets that are located in the county where the local
agency is located.
5)Specifies that a carpet stewardship program shall be
considered in compliance with this bill only if it achieves
the collection rate in the plan. If a program achieves 95
percent collection, the producer or carpet stewardship
organization shall not be required to pay the annual fee.
6)Authorizes a producer or carpet stewardship organization to
petition DRRR for an adjustment to the collection rate, and
authorizes DRRR to approve the adjustment if it determines
that there are documented exigent circumstances beyond the
control of the petitioner.
7)Requires DRRR to review a plan within 45 days of receipt and
either deem the plan complete or incomplete. If the plan is
incomplete, requires DRRR to notify the producer or
organization, which shall submit a revised plan within 45
days. Requires DRRR to provide all plans submitted available
on its website.
8)Requires DRRR, on or before July 1, 2012, and annually
thereafter, to post on its website a list of all brands of
carpet for which the producer is in compliance with the bill.
9)On and after January 1, 2012, prohibits a producer,
wholesaler, or retailer from selling a carpet for sale unless
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producer or organization has plan deemed complete by DRRR.
10)Upon notification from DRRR that a plan is complete, requires
a producer or organization to:
a) Implement the plan, including achieving the collection
rate specified;
b) Pay administrative fees; and,
c) Submit an annual report.
11)Requires a wholesaler or retailer that distributes or sells
carpets in California to monitor DRRR's website to determine
if the sale of a producer's carpets are in compliance with the
bill.
12)Beginning April 1, 2013, requires producers or organizations
to submit an annual report describing the activities carried
out pursuant to the plan during the previous reporting period,
as specified.
13)Requires a producer or organization submitting a plan to pay
an unspecified administrative fee to DRRR sufficient to cover
(but not exceed) the costs incurred by DRRR for implementing
this bill.
14)Establishes the Carpet Stewardship Account and the Carpet
Stewardship Penalty Subaccount in the Integrated Waste
Management Fund. Requires all fees collected to be deposited
into the Account, and all penalties to be deposited in the
Subaccount. Specifies that funds collected may be expended as
incentives to enhance reuse, recyclability, and redesign
efforts and to reduce environmental and safety impacts of
carpet.
15)Authorizes DRRR to enforce the bill's requirements, as
specified.
FISCAL EFFECT : Unknown
COMMENTS :
1)Background : According to DRRR's 2008 Statewide Waste
Characterization Study, an estimated 1.3 million tons of
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carpet is disposed in California landfills annually,
comprising 3.2 percent of all solid waste. Carpet can be
recycled and can be manufactured using recycled-content.
According to the USEPA, barriers to effective recycling
include the lack of an established infrastructure for the
collection and processing of waste carpet, especially from
residential sources.
2)Current product stewardship efforts : The carpet industry has
attempted to address these issues through a voluntary product
stewardship program. Carpet America Recovery Effort (CARE) is
a third-party entity created in 2002 by a Memorandum of
Understanding (MOU) between carpet producers, federal, state,
and local government agencies, and non-governmental
organizations. The MOU was signed by the California
Integrated Waste Management Board (now DRRR) and three
California carpet manufacturers. The MOU established national
goals over a ten year timeframe to increase the amount of
recycling and reuse of post-consumer carpet, with a final goal
of 40% diversion from landfill disposal by 2012. CARE is
tasked with monitoring, evaluating, and assessing progress
toward the MOU's goals. While the goals of this program are
laudable, the diversion numbers are not keeping pace with the
goals. In 2007, the percentage of carpet recycled and
diverted from landfill disposal was 4.9 and 5.3, respectively;
in 2008, these percentages were 4.3 and 5.2. This lack of
progress is part of the rationale provided by DRRR when they
opted out of MOU participation in the next cycle, currently
being negotiated for 2012.
3)This bill : This bill would require producers to develop
product stewardship plans either independently or as part of
an organization to increase the amount of carpet collected and
recycled. This bill is "intended to reduce costs to local
government, to harmonize the state's producer responsibility
obligations with other national and international programs,
and to enhance the protection of public health and the
environment through safer product design, use, and end-of-life
management."
4)Related legislation :
a) AB 289 (Chesbro) 2009: Proposed the California Product
Stewardship Act of 2009 (Act). The Act requires the
California Integrated Waste Management Board (CIWMB) to
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administer a program to provide environmentally sound
product stewardship protocols to foster "cradle-to-cradle"
producer responsibility. (Held in the Assembly
Appropriations Committee)
b) AB 1343 (Huffman): Creates an architectural paint
recovery program to require manufacturers or designated
stewardship organizations to develop and submit an
architectural paint stewardship plan to reduce the
generation of post consumer paint, promote the reuse of
post consumer architectural paint, and manage the
end-of-life of post consumer architectural paint, in an
environmentally sound fashion, including collection,
transportation, processing, and disposal. (Held in the
Senate Appropriations Committee)
c) AB 2139 (Chesbro): Enacts the California Product
Stewardship Act, which requires the Department of Resources
Recycling and Recovery (DRRR) to administer a program to
develop product stewardship protocols to foster
"cradle-to-cradle" producer responsibility for specified
products. (Passed by the Assembly Environmental Safety and
Toxic Materials Committee on April 13 on a 6-3 vote;
scheduled for hearing by this committee on April 19.)
d) AB 2176 (Blumenfield): Enacts the California Lighting
Toxics Reduction and Jobs in Recycling Act (Act) which
establishes a producer responsibility program for
mercury-containing lamps and a fee program for inefficient
lamps. (Scheduled for hearing in Assembly Environmental
Safety and Toxic Materials on April 20.)
e) SB 1100 (Corbett): Creates a product stewardship
program for household batteries. (Referred to the Senate
Appropriations Committee)
REGISTERED SUPPORT / OPPOSITION :
Support
Californians Against Waste
California Resource Recovery Association
California Retailers Association
Clean Water Action
League of California Cities
1 individual
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Opposition
Atlas Carpet Mills
California Manufacturers & Technology Association
Cal-Tax
Fabrica International, Inc.
Royalty Carpet Mills, Inc.
The Dixie Group, Inc.
World Floor Covering Association
W. F. Taylor
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092