BILL ANALYSIS                                                                                                                                                                                                    Ó






                                                       Bill No:  AB  
          2675
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                           Senator Lou Correa, Chair
                           2013-2014 Regular Session
                                 Staff Analysis



          AB 2675  Author:  Lowenthal
          As Introduced: February 21, 2014
          Hearing Date:  June 24, 2014
          Consultant:  Paul Donahue


                                     SUBJECT  

                         State agency: public contracts

                                   DESCRIPTION
           
          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

           1)Requires state agencies to purchase products that contain  
            specified minimum amounts of postconsumer  
            recycled-content material in 11 reportable product  
            categories defined in statute.

          2)Requires state agencies to ensure that at least 50% of  
            the purchases in the 11 categories are for recycled  
            products. 

          3)Directs agencies to 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.

                                    BACKGROUND
           
           Purpose of the bill  : According to the author, the State  




          AB 2675 (Lowenthal) continued                            
          Page 2
          


          Agency Buy Recycled Campaign (SABRC) requires California  
          agencies to ensure that at least 50% of their purchases in  
          11 designated categories are of post-consumer recycled  
          content (PCRC) products. Goods manufactured with recycled  
          materials save native resources, produce less greenhouse  
          gas emissions than their virgin counterparts, and divert  
          waste that would otherwise end up in a landfill. 

          In the average fiscal year, the State of California spends  
          more than $1 billion dollars on the direct purchase of  
          goods, and more than $10 billion dollars on the purchase of  
          services which include goods. Components of SABRC have been  
          in place at least as far back as the California Integrated  
          Waste Management Act of 1989. To date, State agencies have  
          purchased more than $1 billion of SABRC-compliant  
          post-consumer recycled content products.

          By requiring that agencies procure an increased percentage  
          of goods from PCRC sources, AB 2675 harnesses our state's  
          considerable purchasing power to more forcefully support a  
          market that helps California meet both the greenhouse gas  
          reduction goals of AB 32 (Nunez) of 2006 and the solid  
          waste diversion goals of AB 341 (Chesbro) of 2011. It's a  
          responsible and wise use of taxpayer dollars that will  
          benefit Californians for generations to come.
           
           Background  : 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; 
          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.




          AB 2675 (Lowenthal) continued                            
          Page 3
          



          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.

                            PRIOR/RELATED LEGISLATION
           
          AB 341 (Chesbro), Chapter 476, Statutes of 2011. Calls for  
          diversion of at least 75% of solid waste through reduction,  
          recycling, and composting by 2020.

          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.



           SUPPORT:   

          California Refuse Recycling Council

           OPPOSE:  

          None on file

           FISCAL COMMITTEE:   Senate Appropriations Committee



                                   **********












          AB 2675 (Lowenthal) continued                            
          Page 4