BILL ANALYSIS Ó SB 567 Page 1 Date of Hearing: June 27, 2011 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Wesley Chesbro, Chair SB 567 (DeSaulnier) - As Amended: April 11, 2011 SENATE VOTE : 21-13 SUBJECT : Recycling: plastic products SUMMARY : Requires plastic products sold in the state and labeled as "compostable" or "marine degradable" to meet specified standards. Prohibits the sale of plastic products labeled as "biodegradable," "degradable," or "decomposable." EXISTING LAW : 1)Prohibits the sale of plastic bags labeled "compostable" or "marine biodegradable" unless the plastic bag meets the American Society for Testing and Materials (ASTM) standard specification for those definitions. Prohibits sale of plastic bag that is labeled with the term "biodegradable," "degradable," or decomposable," or any form of those terms, or in any way imply that the bag will break down, fragment, biodegrade, or decompose in a landfill or other environment. Related provisions, including definitions and penalties, are specified. (Public Resources Code § 42355 et seq.) 2)Prohibits the sale of plastic food and beverage containers labeled "compostable" or "marine degradable" unless the container meets the applicable ASTM standard specification. Prohibits the sale of plastic food and beverage containers that are labeled "biodegradable," "degradable," or "decomposable," or any form of those terms, or in any way imply that the food or beverage container will break down, fragment, biodegrade, or decompose in a landfill or other environment. Related provisions, including definitions and penalties, are specified. (Public Resources Code § 42359 et seq.) THIS BILL : 1)Repeals the above provisions. 2)Prohibits a plastic product from being sold that is labeled SB 567 Page 2 "compostable" or "marine biodegradable" unless the plastic product meets certain ASTM standards. Prohibits a plastic product from being sold that is labeled with the term "biodegradable," "degradable," or "decomposable," or any form of those terms, or in any way imply that the plastic product will break down, fragment, biodegrade, or decompose in a landfill or other environment. Related provisions including definitions and penalties are specified. Provisions relating to the adoption of a different standard from the ASTM standard are specified and are more general than those in current law. 3)Contains related legislative intent. FISCAL EFFECT : According to the Senate Appropriations Committee, staff estimates that the Department may incur minor costs to review updated standards. There may also be minor costs to enforce provisions of the bill. Those costs are likely to be recoverable by the Department. COMMENTS : 1)Background. According to the author, under current law, manufacture of plastic bags and food and beverage containers cannot claim that their products are "biodegradable" and can only claim their products are "compostable" if they meet the ASTM scientific technical standard for "compostability," D6400. Currently there are no restrictions on end-of-life claims for other plastic products besides bags and food and beverage containers. Many plastic product currently sold in the state claim to be "biodegradable," though there is no technical standard for this term. Numerous studies have shown that even "compostable" plastic does not quickly bread down in the environment as one would expect5 a "biodegradable" product to. Some plastic products claim to be "compostable" even though they do not meet the technical standard for compostability, making the material unacceptable in composting facilities. The author notes that claiming that plastic is "biodegradable" is inherently misleading because the environmental conditions and timeframe required for the supposed biodegradation are not communicated to consumers. Most consumers will assume that "biodegradable" means a product will quickly break down if littered, which is not true even for "compostable" plastics designed to break down in composting facilities. While SB 567 Page 3 scientific technical standards exist to verify that a product is "compostable," there are no such standards to verify if a product is "biodegradable" because the conditions and timeframe inherent in the claim of "biodegradability" are too vague. 2)Purpose of the Bill . This bill will expand the scope of the current labeling restrictions for plastic bags and food packaging in Public Resources Code §§ 42357-42359 to all plastic products. 3)Benefit of the Bill . False labeling of products damages composting facilities' ability to ensure that their feedstock material will break down properly and be available for resale to end users. This bill would help to ensure that composting facilities receive useable material. Furthermore, many California consumers contentiously purchase products that have a minimal impact on the environment. This bill protects such consumers by deterring fraud in the marketplace. 4)Federal Law . Unfair or deceptive acts or practices in or affecting commerce are declared unlawful under federal law. 15 U.S.C. § 45 (a)(1). The Federal Trade Commission (FTC) published guides that help to explain the effect the law has on environmental labeling, advertising, and marketing. These effects include the labeling of products or packages as "degradable," "biodegradable," or "compostable." 5)Related Legislation . SB 1749 (Karnette) Chapter 619, Statutes of 2004, prohibited the sale of a plastic bag labeled as "biodegradable," "compostable," "degradable," or any other form of those terms, or in any way imply that the container will break down in a landfill unless the bag meets the current ASTM standard specification for the term used on the label. AB 2147 (Harman) Chapter 349, Statutes of 2006, prohibited the sale of a plastic food or beverage container labeled as "biodegradable," "compostable," "degradable," or any other form of those terms, or in any way imply that the container will break down in a landfill unless the bag meets the current ASTM standard specification for the term used on the label. AB 1972(DeSaulnier) Chapter 436, Statutes of 2008, prohibited SB 567 Page 4 the sale of a plastic bag labeled as "compostable" or "marine degradable" unless the bag meets the ASTM standard specification or a standard adopted by the California Integrated Waste Management Board. Prohibited the sale of a plastic bag labeled "biodegradable," "degradable," or "decomposable," or as otherwise specified. The bill prohibited the sale of a plastic food or beverage container labeled as "compostable" or "marine degradable" unless the container meets the ASTM standard specification or a standard adopted by the California Integrated Waste Management Board. Prohibited the sale of a plastic food or beverage container labeled "biodegradable," "degradable," or "decomposable," or as otherwise specified. AB 2071(Karnette) Chapter 570, Statutes of 2008, authorizes a city, county, or the state to impose civil liability in the amount of five hundred dollars ($500) for the first violation, one thousand dollars ($1,000) for the second violation, and two thousand dollars ($2,000) for the third and any subsequent violation of the of the above provisions. SB 228 (DeSaulnier) Chapter 406, Statutes of 2010, requires a manufacturer of a compostable plastic bag meeting the specified standards to ensure that the compostable plastic bag is "readily and easily identifiable" from other plastic bags in a manner consistent the FTC Guides for the Use of Environmental Marketing Claims. SB 1454 (DeSaulnier of 2010) is nearly identical to SB 567. The only difference between the two bills is that SB 567 clarifies a cross-reference under § 42358(c). SB 1454 was passed by both houses and vetoed by the governor. In his veto message, Governor Schwarzenegger wrote "I have signed into law the author's SB 228, which requires manufacturers of compostable plastic bags meeting specific American Society for Testing Materials (ASTM)? I think that bill represents a reasonable next step in providing information to the consumer and recyclers about the differences in biodegradable products. I am concerned about the much more expansive universe or plastic products that this bill would regulate and the unforeseen consequences that could result from such a vast expansion." REGISTERED SUPPORT / OPPOSITION : SB 567 Page 5 Support American Chemistry Council California Resource Recovery Association Californians Against Waste City of Oakland City and County of San Francisco Marin County Hazardous and Solid Waste Management Joint Powers Authority Solid Waste Association of North America Opposition None on file Analysis Prepared by : Lynn A. Kirshbaum / NAT. RES. / (916) 319-2092