BILL ANALYSIS Ó AB 2675 Page 1 Date of Hearing: April 9, 2014 ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW Jim Frazier, Chair AB 2675 (Lowenthal) - As Introduced: February 21, 2014 SUBJECT : State agency: public contracts SUMMARY : Requires state agencies that purchase products specified in the State Agency Buy Recycled Campaign (SABRC) to increase the threshold of recycled purchases from 50% to 75% by 2020. EXISTING LAW requires state agencies to do the following: 1)Purchase products that contain specified minimum amounts of postconsumer recycled-content material in 11 reportable product categories defined in statute. 2)Ensure that at least 50% of the purchases in the 11 categories are for recycled products. 3)Report annually to the California Department of Resources Recycling and Recovery (CalRecycle) dollars spent on recycled and non-recycled products purchased in the 11 categories. FISCAL EFFECT : Unknown COMMENTS : AB 4 (Eastin), Chapter 1094, Statutes of 1989, established SABRC, which requires agencies to buy recycled items for at least 50% of their purchases in 11 reportable product categories. Agencies are required to purchase recycled products whenever available, if fitness and quality are equal and the products cost the same or less than non-recycled products. Agencies annually report information about their purchases in these categories to CalRecycle. CalRecycle then compiles this information and produces reports about SABRC compliance by product category and department. The 11 reportable categories are: 1)Paper products; AB 2675 Page 2 2)Printing and writing papers; 3)Mulch, compost, co-compost; 4)Glass products; 5)Lubricating oils; 6)Plastic products; 7)Paint; 8)Antifreeze; 9)Tires; 10)Tire-derived products; and, 11)Metal products. This bill would increase the requirement for recycled purchases in these categories to 75% by January 1, 2020. In the most recent SABRC report for Fiscal Year 2011-12, agencies spent about $130 million on recycled products. This accounted for 70% of purchase amounts for the 11 categories. Additionally, purchases in the three product categories of mulch, compost, co-compost; metal products; and tire-derived products exceeded the 75% mark. However, some product categories fell short of the current 50% mandate. According to the author, increasing the threshold aligns with the state-wide goal set by AB 341 (Chesbro), Chapter 476, Statutes of 2011, which aims to divert at least 75% of solid waste through reduction, recycling, and composting by 2020. REGISTERED SUPPORT / OPPOSITION : Support None on file Opposition None on file AB 2675 Page 3 Analysis Prepared by : Scott Herbstman / A. & A.R. / (916) 319-3600