BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 567| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED SB 567 Page 2 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. CONTINUED SB 567 Page 3 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 CONTINUED SB 567 Page 4 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. CONTINUED SB 567 Page 5 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 CONTINUED SB 567 Page 6 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. CONTINUED SB 567 Page 7 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 **** END **** CONTINUED