BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 488
                                                                  Page  1

          Date of Hearing:   May 24, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 488 (Williams) - As Amended:  April 23, 2013 

          Policy Committee:                              Natural  
          ResourcesVote:6-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill establishes a product stewardship program for  
          household batteries and requires each producer or organization  
          to submit a product stewardship plan with specified requirements  
          and recycling rates to CalRecycle by January 1, 2015.   
          Specifically, this bill:

          1)Requires a producer or organization to pay a plan review fee  
            at the time the plan is submitted and specifies that  
            CalRecycle establish the fee at an amount to cover, but not  
            exceed, costs associated with reviewing, approving, and  
            enforcing the plan.   

          2)Requires a producer or organization to report annually and pay  
            an annual administrative fee at the time the annual report is  
            submitted, and specifies that CalRecycle establish the fee at  
            an amount to cover, but not exceed, costs associated with  
            reviewing, approving, and enforcing the requirements of the  
            bill.  

          3)Authorizes CalRecycle to assess administrative civil penalties  
            not to exceed $1,000 per day against a wholesaler or retailer  
            that violates the requirements of the bill, as specified. 

          4)Exempts specified medical devices from the requirements of the  
            bill.

           FISCAL EFFECT  

          1)Increased costs to CalRecycle of approximately $250,000 to  
            develop regulations related to the plan, annual reporting  








                                                                  AB 488
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            requirements and enforcement.  Ongoing costs of implementation  
            of approximately $400,000 to $500,000 per year.  

            Most costs are likely recoverable, with the exception of the  
            initial regulatory costs, through the two fees authorized by  
            the bill.

           COMMENTS

          1)Rationale.   According to the author, more than 150 million  
            household batteries are sold in the state annually, yet only  
            about five percent are currently collected for recycling.   
            This bill requires battery manufacturers to design, fund, and  
            operate a stewardship program to properly manage batteries  
            sold in California. 

            This bill also requires battery manufacturers to increase  
            collection and recycling 25% by 2019.  While 25% is a  
            significant increase over the current collection, which is  
            only about five percent, it is substantially lower than the  
            collection goals of similar programs.   
           
           2)Background.   In California, household batteries are classified  
            as universal waste, which include materials that DTSC has  
            determined are hazardous waste that are ubiquitous and contain  
            mercury, lead, cadmium, copper, or other substances hazardous  
            to human and environmental health. Since 2006, universal waste  
            has been prohibited from disposal in solid waste landfills,  
            although it is not enforced as evidenced by low recycling  
            rates.

           3)Product stewardship  .  According to the California Product  
            Stewardship Council,
            product stewardship involves consumers, government agencies,  
            and product manufacturers sharing the responsibility of  
            reducing the impact of product waste on public health, the  
            environment, and the economy.  Extended Producer  
            Responsibility (EPR) is a strategy to place a shared  
            responsibility for end-of-life product management on all  
            entities involved in the product chain, instead of the general  
            public, while encouraging product design changes that minimize  
            a negative impact on human health and the environment at every  
            stage of the product's lifecycle.  










                                                                  AB 488
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           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081