BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 521
                                                                  Page  1

          Date of Hearing:   May 24, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                      AB 521 (Stone) - As Amended:  May 7, 2013

          Policy Committee:                              Natural  
          ResourcesVote:5-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill establishes a product stewardship program for plastic  
          products that pose a significant risk to the marine environment.  
           Specifically, this bill: 

          1)Requires CalRecycle, on or before June 1, 2014, in  
            coordination with the Ocean Protection Council (OPC) and the  
            State Water Resources Control Board (SWRCB), to adopt  
            regulations establishing the procedures, targets, goals and  
            alternative compliance process for the marine product  
            stewardship program as specified.

          2)Requires CalRecycle, on or before July 1, 2014, 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.  

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

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

          5)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.  

          6)Allows a producer to pay an alternative compliance fee to  








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            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.  

           FISCAL EFFECT  

          1)Increased costs to CalRecyle to develop an unknown number of  
            individual product stewardship programs by regulation. Based  
            on previous product stewardship regulations, it is estimated  
            to cost between $400,000 and $500,00 per product.  

          2)This bill establishes an alternative compliance fee to allow  
            producers to pay to opt-out and shift the stewardship burden  
            to CalRecycle directly.  It is not clear how CalRecycle would  
            determine the amount of the fees based on what the producer's  
            costs would have been for a plan design and implementation.   
            Producers may opt to pay a one-time fee rather than bear  
            responsibility for implementing a plan required collection  
            rates and significant penalties for violations.
           
           3)Minor, absorbable costs to OPC and SWRCB for consultation.  

          COMMENTS  

           1)Purpose.   According to the author, this bill will help reduce  
            the amount of plastic garbage that pollutes California  
            waterways and coastlines by establishing a new program to  
            prevent plastic pollution from reaching California's marine  
            environment.  This program is designed to requirie producers  
            of the most prevalent items to be responsible for the  
            reduction of this pollution.  

           2)Background.   Plastics are estimated to compose 60 to 80% of  
            all marine debris and 90% of all floating debris.  According  
            to the California Coastal Commission, the primary source of  
            marine debris is urban runoff, to 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.  

            In 2008 the OPC released a report, the Implementation Strategy  
            to Reduce and Prevent Ocean Litter, which established four  
            broad objectives to reduce marine debris:  a) reduce  








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            single-use packaging and promote sustainable alternatives;  b)  
            prevent and control litter and plastic debris;  c) cleanup and  
            remove ocean litter;  and, d) coordinate with other  
            jurisdictions in the pacific region.   

          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.  


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