BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 521
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          Date of Hearing:  April 29, 2013

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                     AB 521 (Stone) - As Amended:  April 19, 2013
           
          SUBJECT  :  Recycling:  marine plastic pollution 

           SUMMARY  :  Establishes a product stewardship program for plastic  
          products that pose a significant risk to the marine environment.  
           

           EXISTING LAW  : 

          1)Under the federal Marine Plastic Pollution Research and  
            Control Act of 1987 (Public Law 100-220, Title II) prohibits  
            the at-sea disposal of plastic and other solid materials for  
            all navigable waters within the United States.  The law also  
            requires the US Environmental Protection Agency (EPA), the  
            National Oceanic and Atmospheric Administration, and the US  
            Coast Guard to jointly conduct a public education program on  
            the marine environment.

          2)Under the federal Clean Water Act requires the state to  
            identify a list of impaired water-bodies and develop and  
            implement Total Maximum Daily Loads (TMDLs) for impaired water  
            bodies.

          3)Under the Porter Cologne Water Quality Control Act (commencing  
            with Water Code Section 13000) regulates discharges of  
            pollutants in storm water and urban runoff by regulating,  
            through the National Pollution Discharge Elimination System  
            (NPDES), industrial discharges and discharges through the  
            municipal storm drain systems.

          4)Under the California Integrated Waste Management Act of 1989,  
            requires each city or county to divert 50 percent of solid  
            waste from landfill disposal or transformation on and after  
            January 1, 2000.  The Act establishes a statewide policy goal  
            that not less than 75 percent of solid waste be source  
            reduced, recycled, or composted on and after January 1, 2020.   


          5)Establishes the California Oil Recycling Enhancement Act,  
            which requires manufacturers of used oil to pay a fee of 4  








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            cents per quart (16 cents per gallon) to the Department of  
            Resources Recycling and Recovery (CalRecycle), which then pays  
            a recycling incentive of 4 cents per quart to industrial  
            generators, curbside collection program operators, and  
            certified used oil collection centers for used oil collected  
            from the public and transported for recycling.  The Act  
            includes related grants and loans, development and  
            implementation of an information and education program, and a  
            reporting, monitoring, and enforcement program.  

          6)Establishes the Electronic Waste Recycling Act of 2003, which  
            requires a retailer selling a covered electronic device (CED)  
            in California to collect a recycling fee (between $3 and $5)  
            from the consumer.  Fees are deposited into the Electronic  
            Waste Recovery and Recycling Account, which is continuously  
            appropriated to CalRecycle and the Department of Toxic  
            Substances Control (DTSC) to make electronic waste recovery  
            payments to cover the net cost of an authorized collector in  
            operating a "free and convenient" system for collecting,  
            consolidating, and transporting CEDs, and to make electronic  
            waste recycling payments to cover an electronic waste  
            recycler's average net cost of receiving, processing, and  
            recycling CEDs.  The Act defines CED as a product that  
            contains a video display device 4 inches and larger. 

          7)Establishes the Cell Phone Recycling Act, which requires every  
            retailer of cell phones to have in place a system for the  
            acceptance and collection of used cell phones for reuse,  
            recycling, or proper disposal.  

          8)Establishes the Rechargeable Battery Recycling Act, which  
            requires every retailer of rechargeable batteries to have in  
            place a system for the acceptance and collection of used  
            rechargeable batteries for reuse, recycling, or proper  
            disposal.  

          9)Establishes the Dry Cell Battery Management Act, which  
            establishes requirements for the production and labeling of  
            consumer products with dry cell batteries and sets limits on  
            the amount of mercury in those batteries.  

          10)Establishes the Mercury Thermostat Collection Act, which  
            requires manufacturers to establish and maintain a program for  
            mercury-added thermostats.  Requires the program to include  
            collection, handling, and arranging for appropriate management  








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            of mercury-added thermostats.   

          11)Requires pharmaceutical manufacturers that sell or distribute  
            a medication in California that is usually self-injected at  
            home with a hypodermic needle to submit to CalRecycle a plan  
            that describes any actions taken by the manufacturer for the  
            safe collection and proper disposal of the waste devices by  
            July 1, 2010, and annually thereafter.  

          12)Establishes the Product Stewardship for Carpets Program,  
            which requires manufacturers of carpet sold in California to  
            submit a carpet product stewardship plan to CalRecycle that  
            demonstrates how waste carpet will be collected and properly  
            managed. 

          13)Establishes the Architectural Paint Recovery Program, which  
            requires architectural paint manufacturers to develop and  
            implement a program to manage waste latex paint.  

           THIS BILL  :  

          1)Establishes definitions for terms used in the bill, including:  


             a)   "Covered item" or "category of covered items" as a  
               source of marine plastic pollution listed by CalRecycle; 

             b)   "Marine plastic pollution" as plastic found in rivers,  
               streams, riparian habitats, beaches, and the marine  
               environment; 

             c)   "Producer" as one of the following: 

               i)     A person that manufactures a covered item and sells,  
                 offers for sale, distributes, or uses that covered item  
                 in a commercial enterprise under the person's own brand; 

               ii)    If there is no person that fits the above  
                 definition, the owner or licensee of a trademark under  
                 which the covered item is sold, distributed, or used in a  
                 commercial enterprise in the state; or,

               iii)   If there is no person that meets the above  
                 definitions, the person that imports the covered item  
                 into the state for sale, distribution, or use in a  








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                 commercial enterprise.  

             d)   "Producer responsibility organization" (organization) as  
               an organization designated by a group of producers to act  
               as an agent on their behalf to develop and operate a marine  
               plastic pollution recovery plan (plan).  

          2)On or before June 1, 2014, requires CalRecycle, in  
            coordination with the Ocean Protection Council (OPC) and the  
            State Water Resources Control Board (SWRCB) to adopt  
            regulations that accomplish the following:

             a)   Procedures for the identification and listing of covered  
               items and categories of covered items; 

             b)   Requirements for the contents, review, and approval of  
               plans; 

             c)   Procedures for the calculation of the amount and  
               collection of the alternative compliance fee; 

             d)   Establish marine plastic pollution reduction targets  
               (targets) for a producer of a covered item, after  
               CalRecycle determines the proportion of pollution reduction  
               of a covered item that each producer is required to  
               achieve; 

             e)   Achieve an overall reduction goal of 75 percent by 2020  
               and 95 percent by 2025, compared to the baseline amount on  
               June 1, 2014.  

          3)On or before July 1, 2014, requires CalRecycle, in  
            consultation with OPC and SWRCB, to adopt a list of covered  
            items or categories of covered items that are the major  
            sources of marine plastic pollution in the state.  Requires  
            CalRecycle to revise the list as new information becomes  
            available.  

          4)Authorizes CalRecycle to exclude any item that is already  
            subject to "effective marine plastic pollution prevention  
            policies."  

          5)Within six months of the inclusion of a covered item or  
            category of covered items being added to the CalRecycle list,  
            requires a producer or organization to design and submit a  








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            plan to reduce the marine plastic pollution caused by the  
            item, which shall include: 

             a)   Measures to meet the targets established by CalRecycle;  
               and, 

             b)   Measures for monitoring, measuring, assessing, and  
               reporting on the progress made toward the targets.  

          6)Requires CalRecycle, in consultation with OPC and SWRCB, to  
            review and approve the plan if it determines that it is  
            "likely to meet" the plan's goals and targets.  If the plan is  
            not "likely to meet" the plan's goals and targets, authorizes  
            CalRecycle to require the producer or organization to revise  
            the plan.  

          7)Requires CalRecycle to recover any costs associated with  
            reviewing and approving the plan by establishing a fee on the  
            producer or organization, as prescribed.  

          8)Requires CalRecycle to periodically review the progress of a  
            producer in implementing and meeting the targets specified in  
            the plan.  

          9)Authorizes CalRecycle to administer civil penalties for  
            violations of this chapter of up to $1,000 per violation per  
            day and up to $10,000 per violation per day for intentional,  
            knowing, or negligent violations.  

          10)Allows a producer to pay an "alternative compliance fee" to  
            CalRecycle in lieu of submitting and implementing a plan.   
            Requires CalRecycle to set the fee, but specifies that the fee  
            cannot exceed the amount that the producer would expend in  
            developing and implementing a plan.   Requires CalRecycle to  
            periodically revise the fee.  

          11)Authorizes CalRecycle to expend the fees collected for: 

             a)   Innovative product design for the covered item; and, 

             b)   Recovery, collection, and recycling programs to prevent  
               marine plastic pollution caused by the covered item.  

           FISCAL EFFECT  :  Unknown









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           COMMENTS  :

           This bill  .  According to the author, AB 521 will "help reduce  
          the amount of plastic garbage that pollutes California waterways  
          and coastlines.  The bill [will] establish a new program to  
          prevent plastic pollution from reaching California's marine  
          environment by requiring producers of the most prevalent items  
          to be responsible for the reduction of this pollution."  
           
          Plastic pollution (aka, marine debris)  .  Plastics are estimated  
          to compose 60-80 percent of all marine debris and 90 percent of  
          all floating debris.  According to the California Coastal  
          Commission, the primary source of marine debris is urban runoff,  
          of which lightweight plastic bags and plastic film are  
          particularly susceptible.  Due to the interplay of ocean  
          currents, marine debris tends to accumulate in certain areas of  
          the ocean.  The North Pacific Central Gyre is where much of the  
          marine debris originating in California ends up.  This area of  
          the Pacific has been referred to as the "Garbage Patch" or the  
          "Pacific Trash Vortex" because of the significant quantities of  
          plastic that have accumulated there. 

          Most plastic marine debris exists as small plastic particles due  
          to excessive UV radiation exposure and subsequent  
          photo-degradation.  These plastic pieces resemble food to marine  
          animals.  Small pieces are confused with small fish, plankton,  
          or krill.  Plastic bags can be mistaken for jellyfish,  
          especially by sea turtles.  Plastic has been proven to  
          negatively affect at least 663 animal species worldwide,  
          including all known species of sea turtles, half of all marine  
          mammal species, and one-fifth of all species of seabirds.  For  
          example, in the North Pacific, 90 percent of Laysan albatross  
          chicks have plastic debris in their gastrointestinal tract.  

          In addition to the physical impacts of plastic pollution,  
          hydrophobic chemicals present in the ocean in trace amounts  
          (e.g., from contaminated runoff and oil and chemical spills)  
          have an affinity for, and can bind to, plastic particles where  
          they enter and accumulate in the food chain.

          In 2007, the OPC adopted a resolution on "reducing and  
          preventing marine debris."  A year later, OPC released the  
          Implementation Strategy for the [OPC] Resolution to Reduce and  
          Prevent Ocean Litter, which established four broad objectives to  
          reduce marine debris:  1) Reduce single-use packaging and  








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          promote sustainable alternatives;  2) Prevent and control litter  
          and plastic debris;  3) Cleanup and remove ocean litter;  and,  
          4) Coordinate with other jurisdictions in the pacific region.   

          Local government impacts  .  Currently, local governments bear  
          most of the burden of dealing with marine plastic pollution.   
          According to The Cost to West Coast Communities of Dealing with  
          Trash, Reducing Marine Debris, a report released by the U.S.  
          Environmental Protection Agency in September 2012, local  
          governments bear the costs of beach and waterway cleanup; street  
          sweeping; installation and maintenance of storm-water capture  
          devices; storm drain cleaning and maintenance; manual cleanup of  
          litter; and, public anti-littering campaigns.  The report finds  
          that the states of Oregon, Washington, and California combined  
          spend more than $520 million annually to combat litter and  
          curtail marine debris.  The report collected information from  
          more than 90 cities, ranging from 200 to nearly 4 million  
          residents.  The largest cities expended an average of just over  
          $10 million annually.  The smallest cities spent an average of  
          just under $100,000.  According to the California Product  
          Stewardship Council, to date 133 local resolutions have been  
          adopted in California supporting product stewardship.  
           
          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.   
               This allows the costs of treatment and disposal to be  
               incorporated into the total cost of a product.  It places  
               primary responsibility on the producer, or brand owner, who  
               makes design and marketing decisions.  It also creates a  
               setting for markets to emerge that truly reflect the  
               environmental impacts of a product, and to which producers  
               and consumers respond.

           Alternative compliance  .  This bill establishes an "alternative  








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          compliance fee," which would allow producers to opt out of the  
          plan requirements and would shift the burden for new product  
          design and cleanup and recycling programs for the product to  
          CalRecycle directly.  The amount of the fee is to be determined  
          by CalRecycle, but shall not exceed the producer's costs if they  
          had opted to develop and implement a plan.  It is not clear how  
          CalRecycle would be able to determine how much a producer's  
          costs would be for plan design and implementation, especially as  
          plans may vary widely in complexity and costs, depending on the  
          producer or organization and the product itself.  It seems  
          likely that many (if not most) producers would opt to pay a  
          one-time fee rather than bear responsibility for implementing a  
          plan with very high collection rates and significant penalties  
          for violations, potentially weakening the producer  
          responsibility goals of the bill.   The author may wish to amend  
          the bill to make the alternative compliance fee an annual fee  ,  
          rather than a one-time fee, to ensure that CalRecycle is able to  
          continue to operate the programs required by the bill.  

           Clarifying amendment  .   The committee may wish to amend the bill  
           to clarify that if CalRecycle does not approve a plan, it is  
          required, rather than permitted, to require that the plan be  
          revised.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Aquarium of the Bay
          Azul
          Californians Against Waste
          California Coastkeeper Alliance
          California Teamsters Public Affairs Council
          City of Monterey
          ChicoEco, Inc.
          Clean Water Action
          Communities for a Better Environment
          Environment California
          Farallones Marine Sanctuary Association
          Green Sangha
          Heal the Bay
          Long Beach Coalition for a Safe Environment
          Mary Crowley, Executive Director and Founder of Ocean Voyages  
          Institute
          MBA Polymers








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          Monterey Bay Aquarium
          Natural Resources Defense Council
          Ocean Voyages Institute
          Oceana
          Oceans Advocate
          Paul Koretz, Los Angeles City Councilmember
          Planning and Conservation League
          Plastic Pollution Coalition
          Project Kaisei
          San Francisco Commission on the Environment
          Save our Shores
          Seventh Generation Advisors
          Surfrider Foundation
          The 5 Gyres Institute
          Turtle Island Restoration Network
          WiLDCOAST

           Opposition 
           
          American Chemistry Council
          American Cleaning Institute
          California Chamber of Commerce
          California Manufacturers and Technology Association
          California Restaurant Association
          Consumer Specialty Products Association
          Dart Container Corporation
          Grocery Manufacturers Association
          National Federation of Independent Business
          Pactiv Corporation
          SPI:  The Plastics Industry Trade Association
          Toy Industry Association
          Western Plastics Association

           
          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092