BILL ANALYSIS Ó SB 567 Page 1 SENATE THIRD READING SB 567 (DeSaulnier) As Amended August 16, 2011 Majority vote SENATE VOTE :21-13 NATURAL RESOURCES 6-3 APPROPRIATIONS 10-5 ----------------------------------------------------------------- |Ayes:|Chesbro, Brownley, |Ayes:|Fuentes, Blumenfield, | | |Dickinson, Hill, Monning, | |Bradford, Charles | | |Skinner | |Calderon, Campos, Davis, | | | | |Dickinson, Hill, Lara, | | | | |Solorio | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Knight, Grove, Halderman |Nays:|Harkey, Donnelly, | | | | |Nielsen, Norby, Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : Requires plastic products sold in the state and labeled as "compostable," "home compostable," or "marine degradable" to meet specified standards. Prohibits the sale of plastic products labeled as "biodegradable," "degradable," or "decomposable." Specifically, this bill : 1)Prohibits a plastic product from being sold that is labeled "compostable," "home compostable," or "marine biodegradable" unless the plastic product meets certain American Society for Testing Materials (ASTM) standards or the Vincotte OK Compost Home certification. 2)Defines "plastic product" as a product made of plastic, alone or in combination with other material. A plastic product includes, but is not limited to, any of the following: a) A consumer product (i.e., a product or part of a product that is used, bought, or leased for use by a person for any purpose); b) A package or a packaging component; c) A bag, sack, wrap, or other thin plastic sheet film SB 567 Page 2 product; or, d) A food or beverage container or a container component, including, a straw, lid, or utensil. 3)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. 4)Imposes civil liability of $500 for the first violation of these laws, $1,000 for the second violation, and $2,000 for the third and any subsequent violation. 5)Repeals the existing law referenced below. EXISTING LAW prohibits the sale of plastic bags and plastic food and beverage containers labeled "compostable" or "marine biodegradable" unless the plastic bag meets the ASTM standard specification for those definitions. Prohibits sale of a 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. Imposes civil liability of $500 for the first violation of these laws, $1,000 for the second violation, and $2,000 for the third and any subsequent violation. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)Minor, absorbable ongoing costs to the Department of Resources Recycling and Recovery (DRRR) to review standards. (Integrated Waste Management Fund (IWMF)) 2)Potential minor, absorbable ongoing costs to DRRR to adopt standards and make recommendations to the Legislature. (IWMF) 3)Potential ongoing costs to DRRR of an unknown amount, but possibly in the tens of thousands of dollars annually, to enforce and oversee implementation of the bill's provisions. (IWMF) SB 567 Page 3 4)Unknown ongoing General Fund (GF) costs, likely not significant, to the Attorney General (AG) to enforce the provisions of this bill. (GF) 5)Unknown ongoing revenue from imposition of civil penalties. (GF) COMMENTS : According to the author, under current law, a manufacturer 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. Currently the only restrictions on end-of-life claims for other plastic products are bags and food and beverage containers. Many plastic products 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 that meets existing ASTM standards does not break down in the environment as the label implies. 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 a scientific technical standard exists to verify that a product is compostable, there is no such standard to verify if a product is biodegradable. This bill will expand the scope of the current labeling restrictions for plastic bags and food packaging in Public Resources Code Sections 42357-42359 to all plastic products. Misleading product labels damage composting facilities' ability to ensure that their feedstock 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 intentionally purchase products that have a minimal impact on the environment. This SB 567 Page 4 bill protects such consumers by deterring misleading product labeling. Federal Law . Unfair or deceptive acts or practices in or affecting commerce are illegal under federal law. 15 U.S.C. Section 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." Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0001947