BILL ANALYSIS
AB 2398
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2398 (John A. Perez)
As Amended August 27, 2010
Majority vote
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|ASSEMBLY: |49-27|(June 2, 2010) |SENATE: |23-12|(August 31, |
| | | | | |2010) |
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Original Committee Reference: NAT. RES.
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.
The Senate amendments :
1)Specify that until January 1, 2013, the only organization
authorized is the Carpet America Recovery Effort (CARE).
2)Revise the requirements of the carpet stewardship plan to:
a) Achieve the requirements of the bill;
b) Include goals that, to the extent feasible, increase the
recycling of postconsumer carpet, as specified;
c) Describe measures that will be taken to manage
postconsumer carpet in a manner consistent with the state's
solid waste hierarchy;
d) Include a funding mechanism to carry out the plan; and,
e) Include education and outreach efforts.
3)Specify that the plan be designed to accept and manage all
suitable postconsumer carpet, regardless of polymer type or
primary materials of construction.
4)Clarify the funding requirements, including auditing. Require
DRRR to identify its costs associated with the bill and
establish a fee adequate to cover those costs for manufacturers
or organizations that submit a plan.
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5)Between July 1, 2011, and January 1, 2013, set the "assessment"
at $0.05 per square yard of carpet sold. After January 1, 2013,
specifies that the assessment per unit of carpet sold shall be
in an amount that cumulatively will adequately fund the plan and
be consistent with the purposes of the bill.
6)Require DRRR to enforce the provisions of the bill, as
specified.
7)Beginning July 1, 2012, and not later than January 1 and July 1
annually thereafter, require DRRR to post a notice on its
Internet Web site listing manufacturers that are in compliance
with the bill. Require retailers or wholesalers to monitor the
Web site to determine if the sale of a manufacturer's carpet is
in compliance.
8)Require, on or before January 1, 2014, DRRR and the Department
of General Services (DGS) to complete a study that examines the
standard for carpet purchases by the state and recommend to the
Governor and the Legislature any appropriate changes to that
standard. To the extent feasible and within existing resources,
require DGS to ensure that postconsumer carpet removed from
state buildings be managed in accordance with the bill.
AS PASSED BY THE ASSEMBLY , this bill:
1)Added carpet to the state agency buy recycled requirements and
specifies a minimum content of 25% recycled material.
2)Defined terms used in the bill.
3)Required, on or before September 30, 2011, a carpet producer or
carpet stewardship organization to submit a carpet stewardship
plan to DRRR.
4)Specified 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;
b) Include a funding mechanism to provide sufficient funding
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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)Specified 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)Required 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, prohibited a manufacturer,
wholesaler, or retailer from offering a carpet for sale unless a
plan has been submitted that is in compliance with the bill.
8)Required 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% by January 1, 2017; and,
b) The amount of postconsumer carpet recycled in the state
shall equal or exceed 50% by January 1, 2022.
9)If more than one organization submits a plan pursuant to this
bill, required DRRR to 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, required 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;
b) The total amount of postconsumer carpet recycled, by
volume and weight, in the state during the reporting period;
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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)Required an organization to 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)Established administrative civil penalties for any person who
sells or offers for sale a carpet that is prohibited from sale
of $1,000 per day and $10,000 per violation of the violation is
intentional, knowing, or negligent.
FISCAL EFFECT : According to the Senate Appropriations Committee,
the DRRR 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 DRRR
has approved an annual fee schedule, those costs should be covered
by fees. DGS indicates that it will face minor costs to update
state procurement regulations with respect to recycled carpet.
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% 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
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 10-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
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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: 0006820