BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
2398 (J. Perez)
Hearing Date: 08/02/2010 Amended: 06/23/2010
Consultant: Brendan McCarthy Policy Vote: EQ 5-2
AB 2398 (J. Perez), Page 2
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BILL SUMMARY: AB 2398 requires carpet manufacturers to implement
stewardship programs to increase the recycling rate of carpet in
the state to 25 percent by 2017 and 50 percent by 2022. After
April 1, 2012, the bill prohibits the sale of carpet in the
state by a manufacturer that is not part of a stewardship
organization with an approved plan. The bill requires an
assessment per unit of carpet sold in the state to pay for the
costs of the stewardship plans.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Oversight of stewardship $290 $280
$280Special *
plans
Reporting on state carpet
$50General
purchasing policies
* Integrated Waste Management Account. Ultimately to be covered
by fees.
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STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED
AB 2389 establishes a carpet stewardship program, under which
carpet manufacturers are required to increase the amount of
carpet that is recycled in the state. Specifically, the bill
requires carpet manufacturers, either individually or through
one or more stewardship organizations, to submit a carpet
stewardship plan to the state by September 31, 2011. The plan
shall include the methods that will be used to increase
recycling of carpet, including information on funding
mechanisms. The stewardship plans shall be funded by an
assessment on each unit of carpet sold in the state, to be used
by the stewardship organizations to increase recycling.
The stewardship organizations are required to submit their plans
to the Department of Resources Recycling and Recovery, which
will review and approve the plans.
AB 2398 (J. Perez), Page 2
After April 1, 2012, a carpet manufacturer may not sell carpet
in the state if the manufacturer is not part of a stewardship
organization with an approved plan. The stewardship
organizations are required to submit annual plans to the
Department, demonstrating that the organization has reached a
recycling rate of 25 percent by 2017 and 50 percent by 2022.
Stewardship organizations are required to pay an annual fee to
the Department to cover its costs to enforce the requirements of
the bill. The bill authorizes the Department to impose civil
penalties for violations of the requirements of the bill.
The bill also adds carpet to the state's buy-recycled
requirements for state agencies, specifying that carpet should
include at least 25 percent recycled material.
The Department of Resources Recycling and Recovery indicates
that it will need about $280,000 in ongoing additional resources
to enforce the provisions of the bill. Once the stewardship
organizations have submitted their plans and the Department has
approved an annual fee schedule, those costs should be covered
by fees.
The Department of General Services indicates that it will face
minor costs to update state procurement regulations with respect
to recycled carpet.
AB 1343 (Huffman, 2009) establishes producer stewardship program
for architectural paint. That bill was held on this committee's
Suspense File.
AB 2176 (Bloomenfiled) establishes a producer stewardship
program for mercury-containing lamps. That bill was held in the
Assembly Appropriations Committee.
AB 2319 (Chesbro) establishes a producer stewardship program for
several products. That bill failed passage on the Assembly
floor.
SB 1100 (Corbett) establishes a producer stewardship program for
household batteries. That bill is in the Assembly Appropriations
Committee.
AB 2398 (J. Perez), Page 2
The author's proposed amendments designate a specific entity as
the statewide stewardship organization until January 1, 2013.
From April 1, 2011 to January 1, 2013, the amendments require a
$0.05 per square yard assessment to be placed on all carpet sold
in the state, to be remitted to the designated stewardship
organization. After January 1, 2013, the amount of the
assessment will be determined by the stewardship plans. The
amendments delete specific recycling targets and instead require
stewardship organizations to demonstrate continuous, meaningful
improvement in recycling rates. The amendments eliminate the
requirement for state agencies to buy recycled carpet and
require the Department of General Services to report to the
Legislature on issues relating to state purchases of carpet.