BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 567|
          |Office of Senate Floor Analyses   |                         |
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                              UNFINISHED BUSINESS


          Bill No:  SB 567
          Author:   DeSaulnier (D)
          Amended:  9/1/11
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  5-2, 04/04/11
          AYES:  Simitian, Hancock, Kehoe, Lowenthal, Pavley
          NOES:  Strickland, Blakeslee

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           SENATE FLOOR  :  21-13, 06/01/11
          AYES:  Alquist, Blakeslee, Calderon, Corbett, De León, 
            DeSaulnier, Evans, Hancock, Harman, Hernandez, Kehoe, 
            Leno, Lieu, Liu, Lowenthal, Padilla, Price, Simitian, 
            Steinberg, Wright, Yee
          NOES:  Anderson, Berryhill, Cannella, Correa, Dutton, 
            Emmerson, Fuller, Gaines, Huff, La Malfa, Strickland, 
            Walters, Wyland
          NO VOTE RECORDED:  Negrete McLeod, Pavley, Rubio, Runner, 
            Vargas, Wolk

           ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    Recycling:  plastic products

           SOURCE  :     Californians Against Waste


           DIGEST  :   This bill repeals current law concerning the sale 
          of plastic bags which have to meet various standards and 
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          instead, as of January 1, 2013, prohibit the sale of a 
          plastic product, as defined, labeled as "compostable," 
          "home compostable," or "marine degradable" unless it meets 
          those American Society for Testing and Materials (ASTM) 
          standard specifications, the OK Compost HOME certification, 
          as specified, or a standard adopted by the department, or 
          unless the plastic product is labeled with a qualified 
          claim for which the department has adopted an existing 
          standard, and the plastic product meets that standard.  
          This bill prohibits the sale of a plastic product that is 
          labeled as "biodegradable," "degradable," "decomposable," 
          or as otherwise specified.  The bill provides for the 
          continuation of the labeling requirements imposed upon a 
          manufacturer of a compostable plastic bag. This bill 
          provides for the imposition of a civil penalty for a 
          violation of those prohibitions.

           ANALYSIS  :    Existing law, under the California Integrated 
          Waste Management Act of 1989:

          1.Prohibits a plastic bag from being sold that is labeled 
            "compostable" or "marine biodegradable" unless the 
            plastic bag meets certain ASTM standards, and prohibits a 
            plastic bag from being sold that is labeled with the term 
            "biodegradable," "degradable," or "decomposable," or any 
            form of those terms.  Certain related provisions, 
            including definitions and penalties, are specified. 

          2.Prohibits a food or beverage container from being sold 
            that is labeled "compostable" or "marine biodegradable" 
            unless the food or beverage container meets certain ASTM 
            standards, and prohibits a food or beverage container 
            from being sold that is labeled with the term 
            "biodegradable," "degradable," or "decomposable," or any 
            form of those terms.  Certain related provisions, 
            including definitions and penalties, are specified. 
           
           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 
            ASTM standards or the Vincotte OK Compost Home 
            certification. 

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          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 
               product; or, 
             D.   A food or beverage container or a container 
               component, including, a straw, lid, or utensil. 

          1.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. 

          2.Require a manufacturer of a plastic bag covered by the 
            bill to ensure that the bag is "readily and easily 
            identifiable from other plastic bags" consistent with the 
            Federal Trade Commission Guides for the Use of 
            Environmental Marketing Claims. 

          3.Prohibits a compostable bag from being labeled with the 
            "chasing arrow" resin identification code or a recycling 
            symbol of any form. 

          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.Specifies that the bill goes into effect on January 1, 
            2013. 

           Related Legislation

           SB 951 (Hart) Chapter 1076, Statutes of 1993, enacted the 
          Plastic Trash Bag Law to require recycled plastic 
          postconsumer material in certain types of plastic trash 

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          bags.  SB 698 (Rainey) Chapter 44, Statutes of 1998, 
          revised various procedures relating to these provisions to 
          enable postconsumer materials to be in other plastic 
          products of the manufacturer.  In response to concerns 
          about manufacturers that violate the law, SB 698 added a 
          debarment provision that made these violators ineligible 
          for state contract awards until they comply with the 
          requirements and prohibits the state from soliciting offers 
          from, or awarding contracts to, those firms.  SB 698 also 
          required the California Integrated Waste Management Board 
          to publish a list of violators.

          SB 1749 (Karnette) Chapter 619, Statutes of 2004, 
          prohibited persons from selling a plastic bag labeled as 
          "compostable," "biodegradable," "degradable," or any form 
          of those terms, unless the plastic bag meets certain 
          requirements.  AB 1023 (DeSaulnier) Chapter 143, Statutes 
          of 2007, exempts these bags from the Plastic Trash Bag Law.

          AB 2147 (Harman) Chapter 349, Statutes of 2006, prohibited 
          persons from selling plastic food and beverage containers 
          labeled as "compostable," "biodegradable," "degradable," or 
          any form of those terms, unless the containers meet certain 
          requirements.

          AB 2071 (Karnette) Chapter 570, Statutes of 2008 set 
          penalties for violations of the SB 1749 plastic bag 
          requirements and the AB 2147 food and beverage container 
          requirements.

          AB 1972 (DeSaulnier) Chapter 436, Statutes of 2008, revised 
          prohibited actions under the plastic bag, as well as the 
          food and beverage container, requirements, while revising 
          definitions and providing for review of changing ASTM 
          standards.

          SB 228 (DeSaulnier) Chapter 406, Statutes of 2010, requires 
          a compostable plastic bag manufacturer meeting certain 
          standards to ensure that the compostable plastic bag is 
          "readily and easily identifiable" (as defined in this bill) 
          from other plastic bags, in a manner that is consistent 
          with the Federal Trade Commission Guides for the Use of 
          Environmental Marketing Claims.


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          SB 1454 (DeSaulnier) of 2010 was similar to SB 567, except 
          that SB 567:  a) does not repeal the existing food and 
          beverage provisions (Public Resources Code §42359 et seq.), 
          and b) clarifies a cross-reference under §42358(c).  
          According to Governor Schwarzenegger in vetoing SB 1454, "I 
          have signed into law the author's SB 228, which requires 
          manufacturers of compostable plastic bags meeting specific 
          ASTM standards to ensure that the bag is readily and easily 
          identifiable from other plastic bags.  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 of plastic products that this bill would 
          regulate and the unforeseen consequences that could result 
          from such a vast expansion."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          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) 

          4.Unknown ongoing General Fund (GF) costs, likely not 
            significant, to the Attorney General to enforce the 
            provisions of this bill. (GF) 

          5.Unknown ongoing revenue from imposition of civil 
            penalties. (GF) 

           SUPPORT :   (Verified  9/7/11)

          Californians Against Waste (source) 
          American Chemistry Council

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          Association of Postconsumer Plastic Recyclers
          Biodegradable Plastics Institute
          California Resource Recovery Association
          Cereplast
          City and County of San Francisco
          City of Oakland
          Heritage Bag
          Heritage Plastics
          Marin County Hazardous and Solid Waste Management Joint 
          Powers                                            Authority
          Metabolix, Inc. 
          NatureWorks
          Solid Waste Association of North America

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          under current law "manufacturers of plastic bags and food 
          packaging cannot claim that their products are 
          'biodegradable' and can only claim their products are 
          'compostable' if they meet the ÝASTM] scientific technical 
          standard for 'compostability,' ASTM D6400.  Currently there 
          are no restrictions on end-of-life claims for plastic 
          products, excluding plastic bags and food packaging.  Many 
          plastic products that are currently sold in California 
          claim to be 'biodegradable,' even though there is no 
          technical standard to test against that term and numerous 
          studies have shown that even 'compostable' plastic does 
          quickly break down in the environment as one would expect a 
          'biodegradable' product to.  Additionally, some plastic 
          products are claiming to be 'compostable' even though they 
          do not meet the technical standard for compostability, 
          making the material unacceptable in composting facilities." 
           The author also notes that "SB 567 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:  specifically 
          manufacturers would be prohibited from claiming their 
          plastic products are 'biodegradable' and could only claim 
          they are 'compostable' if it meets the relevant technical 
          standard."

          This bill repeals the existing plastic bag provisions and 
          adds new provisions for plastic products, along with 
          definitions, penalties, and ASTM review procedures.


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          The American Chemistry Council believes this bill "will 
          help reduce consumer confusion over the misuse of labeling 
          terms such as 'bio-degradable' on packaging and products 
          and thereby help prevent potential contamination and 
          degradation of the existing plastics recycling stream."  
          The Council also notes that "unsubstantiated claims of 
          biodegradability of products and packaging also have the 
          potential to increase litter."  According to Californians 
          Against Waste, "SB 567 will help consumers and businesses 
          make accurate product choices by requiring manufacturers be 
          truthful and specific about end-of-life capabilities of 
          their products."

           ARGUMENTS IN OPPOSITION  :    The Plastics Environmental 
          Council (PEC) is opposed to "prohibiting a company from 
          marketing their plastic product as 'biodegradable'" and 
          "?not Ýproviding] a mechanism for the properly qualified 
          marketing as biodegradable of those plastic products that 
          exhibit significant (10-40%) biodegradation in a matter of 
          months in anaerobic environments such as landfills?"  
          According to PEC, "The technology that makes this possible 
          is based on the addition of novel materials in very small 
          amounts, about 0.5-2.0% by weight, to an otherwise 
          conventional petroleum derived plastic resin?" and "These 
          additives 
          promote the biochemical degradation of the base plastics 
          primarily in an anaerobic landfill environment?"


          DLW:nl  9/7/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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