BILL ANALYSIS
AB 2398
Page 1
ASSEMBLY THIRD READING
AB 2398 (John A. Perez)
As Amended May 28, 2010
Majority vote
NATURAL RESOURCES 6-3 APPROPRIATIONS 12-5
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|Ayes:|Chesbro, Brownley, De |Ayes:|Fuentes, Ammiano, |
| |Leon, Hill, Huffman, | |Bradford, |
| |Skinner | |Charles Calderon, Coto, |
| | | |Davis, Monning, Ruskin, |
| | | |Skinner, Solorio, |
| | | |Torlakson, Torrico |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Gilmore, Knight, Logue |Nays:|Conway, Harkey, Miller, |
| | | |Nielsen, Norby |
| | | | |
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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. Specifically, this bill :
1)Adds carpet to the state agency buy recycled requirements and
specifies a minimum content of 25 percent recycled material.
2)Defines terms used in the bill.
3)On or before September 30, 2011, requires a carpet producer or
carpet stewardship organization to submit a carpet stewardship
plan to DRRR.
4)Specifies that the plan do all of the following:
a) Develop and implement a program, including measurable
goals established by the organization, that will increase
the diversion of postconsumer carpet from landfills,
increase the recyclability of carpets, and promote the
recycling of postconsumer carpet into materials that are
used to manufacture new products;
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b) Include a funding mechanism to provide sufficient
funding to carry out the program; and,
c) Include education and outreach efforts to consumers,
retailers, and waste haulers to promote the segregated
collection and recycling of postconsumer carpet.
5)Specifies that the funding mechanism shall provide for an
assessment per until of carpet sold in the state, as
determined in the plan, to be paid by each member of the
organization in an amount that cumulatively will adequately
fund the program. The assessment is to be approved by DRRR.
6)Requires DRRR, within 60 days of receipt of a plan, to
determine if a plan is complete and to notify the submitter of
its determination. If it is not complete, requires the
submitter to revise and resubmit the plan within 60 days.
7)On and after April 1, 2012, a manufacturer, wholesaler, or
retailer shall not offer a carpet for sale unless a plan has
been submitted that is in compliance with the bill.
8)Requires an organization to demonstrate to DRRR that the
following targets have been met:
a) The amount of postconsumer carpet recycled in the state
shall equal or exceed 25 percent by January 1, 2017; and,
b) The amount of postconsumer carpet recycled in the state
shall equal or exceed 50 percent by January 1, 2022.
9)If more than one organization submits a plan pursuant to this
bill, DRRR shall use information submitted by the organization
in its annual report to determine the recycling rate
attributable to each organization and shall determine
compliance accordingly.
10)On or before July 1, 2013, and each year thereafter, requires
a manufacturer or organization to submit a report, to include:
a) The total amount of carpet solid and postconsumer carpet
collected, by volume and weight, in the state during the
reporting period;
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b) The total amount of postconsumer carpet recycled, by
volume and weight, in the state during the reporting
period;
c) The total cost of implementing the program and other
elements of the plan; and,
d) An evaluation of the effectiveness of the program, its
funding mechanism, and other elements of the plan and
anticipated steps, if needed, to improve performance.
11)The organization shall submit to DRRR an annual
administrative fee, to be established by DRRR in an amount
adequate to cover the full costs of administering and
enforcing this bill.
12)Establishes administrative civil penalties for any person who
sells or offers for sale a carpet that is prohibited from sale
of $1,000 per violation and $10,000 per violation of the
violation is intentional, knowing, or negligent.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill has annual, ongoing costs to DRRR of
approximately $275,000, the equivalent of 3.5 PY, to review
plans and reports and monitor and enforce compliance (Carpet
Stewardship Account (CSA), created by this bill within the
Integrated Waste Management Account (IWMA)). This bill will
also result in annual, ongoing revenue to DRRR of an unknown
amount, but likely approximately $275,000 (CSA within IWMA).
(The bill states that fees collected from carpet producers will
fully cover administrative costs.)
COMMENTS : According to DRRR's 2008 Statewide Waste
Characterization Study, an estimated 1.3 million tons of 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.
Current product stewardship efforts : The carpet industry has
attempted to address these issues through a voluntary product
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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.
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."
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092
FN: 0004733