BILL ANALYSIS Ó SB 1118 Page 1 Date of Hearing: August 16, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 1118 (Hancock) - As Amended: August 13, 2012 Policy Committee: Natural ResourcesVote:6-1 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill creates a product stewardship recycling program for the collection and recycling of used mattresses. Specifically, this bill: 1)Requires, by April 1, 2013, every manufacturer of mattresses sold in the state to submit, individually, collectively or through a stewardship organization, an initial mattress recovery and recycling plan, in an electronic format, to the Department of Resources Recycling and Recovery (Calrecycle) that describes how the manufacturer will ensure recovery and recycling of waste mattress generated by consumers who purchase new mattresses, and, by April 1, 2014, to submit a final mattress recovery plan to the department that ensures the collection and recycling of specified percentages of waste mattress by certain dates. 2)Requires Calrecycle to post the initial plan on its website. 3)Requires a manufacturer of mattresses sold in the state as of July 1, 2013 to implement the initial plan. 4)Requires Calrecycle to review a final mattress plan and, within 90 days of receipt, approve, disapprove or conditionally approve the plan according to the requirements of this bill. 5)Prohibits, as of August 1, 2014, a mattress manufacturer from selling a mattress in the state if the manufacturer is not covered by a plan approved or conditionally approved by Calrecycle. SB 1118 Page 2 6)Requires, as of July 1, 2013, Calrecycle to post on its website a list of manufacturers in compliance with the requirements of this bill. 7)Requires a manufacturer submitting a mattress plan to pay Calrecycle an administrative fee sufficient to cover the costs of plan review, audits, enforcement and other related administrative activities. 8)Authorizes Calrecycle to impose an administrative civil penalty for violations of the requirements of this bill, not to exceed $1,000 per day, unless the violation is intentional, knowing and negligent, in which case the penalty may not exceed $10,000 per day. FISCAL EFFECT 1)One-time costs of approximately $100,000 to develop and adopt the administrative fee amount, develop a database of mattress manufacturers and retailers, and establish other implementation procedures and systems (special fund). 2)Ongoing costs of approximately $300,000 to $400,000 to Calrecycle to review plans and determine their compliance with the bill's requirements, and to enforce the requirements of this bill, including audits, inspections and notifications (special fund). 3)Fee revenue to Calyrecylce roughly equivalent to the department's one-time and ongoing costs to implement this bill (special fund). 4)Penalty revenue of an unknown amount (special fund). COMMENTS 1)Rationale. The author notes that mattresses, because of their size and bulk, are inherently difficult to dispose of properly and are hard to manage in landfills. Mattress material, however, mostly can be reused or recycled. The author describes an increasing number of mattresses being discarded SB 1118 Page 3 illegally. Such illegally disposed of mattresses, the author adds, pose health and safety problem on communities and impose costs on local governments who must collect the mattresses. For example, the author cites numbers from the City of Oakland, where city officials collect more than a dozen discarded mattresses every day, with even greater numbers reported by San Francisco and Los Angeles. The author intends this bill to result in a manufacturer-devised program of mattress recovery and recycling that prevents mattresses from ending up on our streets, vacant lots and open spaces. 2)Background. California has numerous programs to minimize and manage the waste that results from the many products we consume. For example, state law requires local governments to divert 50% of solid waste generated from landfill disposal through source reduction, reuse, and recycling. In addition, legislatively established state programs levy fees on waste motor oil and electronic goods to facilitate their collection and recycling; require retailers of cell phones and rechargeable batteries to accept them from consumers for reuse, recycling or disposal; and compel producers of home-generated medical sharps to develop a plan for the safe collection and proper disposal of them. Rather than seeking to manage waste after it has been produced, programs such as the mattress recovery and recycling program envisioned by this bill seek to implement extended producer responsibility (EPR), which addresses waste generation at the point of product design. Typically, producers do not consider recycling possibilities, disposal costs, and environmental impacts when designing products because public agencies and other entities, not the producers, bear those costs, which each year amount to hundreds of millions of dollars. By placing responsibility for product disposal on the producer, EPR provides the producer a financial incentive to reduce the generation of waste. EPR was the adopted policy of the now-defunct Integrated Waste Management Board and was supported by the League of California Cities, California State Association of Counties, and the Regional Council of Rural Counties. Currently, California has several statutorily required EPR programs, including the used carpet recovery program (Chapter 681, statutes of 2010, (J. Perez, AB 2398) and the used paint recovery program (Chapter 420, Statutes of 2010 (Huffman, AB 1343).) SB 1118 Page 4 3)Support. This bill is supported by the cities of Oakland and San Francisco and several waste management organizations. 4)Opposition. This bill is opposed by the California Chamber of Commerce, the International Sleep Products Association and other industry organizations who generally object to EPR programs, describing them as costly and inefficient. Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081