BILL ANALYSIS                                                                                                                                                                                                    �



                                                                SB 254
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Jerry Hill, Chair
                              2013-2014 Regular Session
                                           
           BILL NO:    SB 254
           AUTHOR:     Hancock and Correa
           AMENDED:    April 15, 2013 
           FISCAL:     Yes               HEARING DATE:     April 17, 2013
           URGENCY:    No                CONSULTANT:       Joanne Roy
           
           SUBJECT  :    SOLID WASTE:  RECYCLING:  USED MATTRESSES

            SUMMARY  :    
           
            Existing law  :

           1) Under the California Integrated Waste Management Act of  
              1989, requires each city or county source reduction and  
              recycling element to include an implementation schedule that  
              shows a city or county must divert 25% of solid waste from  
              landfill disposal or transformation by January 1, 1995,  
              through source reduction, recycling, and composting  
              activities, and must divert 50% of solid waste on and after  
              January 1, 2000.  (Public Resources Code �41780).  It is a  
              policy goal of the state that not less than 75% of solid  
              waste be source reduced, recycled, or composted by 2020, and  
              annually thereafter.  (Public Resources Code �41780.01).

           2) Pursuant to the Dry Cell Battery Management Act, establishes  
              requirements for the production and labeling of consumer  
              products with dry cell batteries and sets limits for the  
              amount of mercury in those batteries.  (�15000 et seq.). 

           3) Pursuant to the Rechargeable Battery Recycling Act,  
              establishes a mandatory take-back program for rechargeable  
              batteries at retail locations.  (�42451 et seq.).

           4) Pursuant to the Product Stewardship for Carpets Program,  
              requires manufacturers of carpet sold in California to  
              submit a carpet product stewardship plan to the Department  
              of Resources Recycling and Recovery (CalRecycle) that  
              demonstrates how it will manage its waste carpet.  (�42970  
              et seq.). 









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           5) Pursuant to the Architectural Paint Recovery Program,  
              requires architectural paint manufacturers to develop and  
              implement a program to manage waste latex paint.  (�48700 et  
              seq.).

           6) Pursuant to the Mercury Thermostat Collection Act of 2008,  
              requires manufacturers of mercury-added thermostats sold in  
              this state before January 1, 2006, to establish and maintain  
              a collection, transportation, recycling, and disposal  
              program for out-of-service mercury-added thermostats.   
              (Health and Safety Code �25214.8.10 et seq.).

            This bill  establishes the Used Mattress Recovery and Recycling  
           Act (Act), and does the following:

           1) Requires a mattress recycling organization to develop and  
              submit to CalRecycle for approval a plan for recycling used  
              mattresses in the state by April 1, 2015.

           2) Requires CalRecycle to review and approve, disapprove, or  
              conditionally approve the plan within 90 days of receipt of  
              the plan.

           3) Requires the mattress recycling organization to begin  
              implementing the used mattress recycling plan within 30 days  
              of CalRecycle's approval or conditional approval of the  
              plan.

           4) By January 1, 2017, requires CalRecycle to establish a state  
              mattress recycling baseline amount and state mattress  
              recycling goal, which are based on the methodology contained  
              in the organization's plan and the data contained in the  
              organization's first annual report.

           5) Requires CalRecycle to review, and update as necessary, the  
              baseline amount and goals to ensure that the program  
              advances the statewide recycling goal beginning July 1,  
              2020, and every four years thereafter.

           6) Requires the mattress recycling organization to prepare a  
              proposed used mattress recycling program budget by July 1,  
              2015, and annually thereafter. Requires CalRecycle to  









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              approve, disapprove, or conditionally approve a final budget  
              by September 1, 2015, and annually thereafter.

           7) Authorizes a mattress recycling organization to establish a  
              recycling charge imposed on the sale of a mattress at the  
              point of sale.

           8) Requires the mattress recycling organization to use the  
              revenue generated by the recycling charge to fund a program  
              for the purpose of recycling used mattresses in the state.

           9) Requires the mattress recycling organization to maintain  
              minutes, books, and records reflecting the activities and  
              transactions of the organization.

           10)Authorizes the mattress recycling organization to conduct  
              audits on parties required to remit the recycling charge to  
              the organization.  

           11)Requires the organization, mattress recyclers and renovators  
              to submit an annual report, which includes specified  
              information, to CalRecycle beginning April 1, 2016.  

           12)Requires retailers to offer a consumer the option of having  
              a used mattress picked up for recovery at the time of  
              delivery of a new mattress to the consumer beginning July 1,  
              2014. 

           13)Requires CalRecycle to post on its website a list of  
              manufacturers and retailers who are in compliance with the  
              Act.

           14)Authorizes CalRecycle to impose administrative civil  
              penalties on any entity that is not in compliance with the  
              Act.

           15)Authorizes the organization to enter into joint ventures,  
              agreements, and contracts with third parties for purposes of  
              implementing the program.

           16)Contains definitions for various terms.

            COMMENTS  :









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            1)Purpose of bill  .  More communities are experiencing increased  
             numbers of illegally dumped mattresses.  The accumulation of  
             these used mattresses in public spaces, especially if left for  
             long periods of time, can pose a serious public health  
             problem.  Used mattresses can be a breeding ground for mold  
             and pests.  This bill is intended to reduce illegal dumping,  
             increase recycling, and reduce public agency costs for  
             end-of-life management of used mattresses.  
            
            2)Background  .  According to a recent article in the Los Angeles  
             Times, "Californians buy about 4 million new mattresses and  
             box springs a year.  About half the time, the used mattresses  
             that they replace end up in a guest room or go to friends or  
             relatives.  Many of the other 2 million discarded units get  
             dumped on streets or sent to landfills.  Fewer than 1 in 10  
             is recycled for wood, plastic, fiber batting and springs to  
             be used in other products, such as steel and carpet padding.   
             Discarded mattresses cause blight on urban streets and are  
             magnets for mold, rats, insects and other vermin." (Marc  
             Lifsher, "California weighs mattress recycling fee," Los  
             Angeles Times, March 28, 2013.)

            3)Illegal dumping and used mattress management  .  According to  
             CalRecycle, illegal dumping is the act of disposing of solid  
             waste at a location that is not a permitted solid waste  
             disposal facility and is usually done for economic gain -  
             posing significant social, environmental, and economic  
             impacts throughout the state.

           The California State Association of Counties, League of  
             California Cities, and California Integrated Waste Management  
             Board requested county administrative officers and city  
             managers to participate in a June 2006 survey on illegal  
             dumping and litter abatement.  An annual local government  
             abatement and enforcement cost of $44 million is based on  
             responses from 35 counties and 37 cities, so the cost is  
             likely to be considerably higher.  The California Department  
             of Transportation incurs a $55 million annual cost for  
             highway cleanups.

           According to CalRecycle, local governments tend to "view  
             illegal dumping as a litter/nuisance abatement issue, rather  









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             than a solid waste issue.  Local responses vary greatly  
             statewide, both in terms of approach and level of activity.   
             Local code enforcement plays a lead role in some communities,  
             while public works departments have primary responsibility in  
             others."

           CalRecycle notes that it is "responsible for investigation,  
             cleanup, and enforcement of illegal solid waste disposal  
             sites and shares this responsibility with local enforcement  
             agencies (LEAs)."  CalRecycle also established a state and  
             local Illegal Dumping Technical Advisory Committee to assess  
             the extent of the illegal dumping problem and make  
             recommendations to CalRecycle to "enhance the effectiveness  
             of local and regional responses to the problem."

           When used mattresses are properly disposed of in a solid waste  
             facility, the mattresses are difficult to manage.  Their bulk  
             clogs up equipment and they are difficult to compact.  In  
             addition, after disposal, the mattresses have a  tendency to  
             "float" to the surface of the waste.

            4)Recycling and remanufacturing mattresses  .  According to  
             information by St. Vincent De Paul, the organization is the  
             "world leader in mattress recycling.  Our Oakland, California  
             facility was the first commercially viable mattress recycling  
             business in the world.  Today, between our operations in  
             Oakland and Eugene, Oregon we recycle over 120,000 mattresses  
             and box springs every year."

           The organization notes that mattresses and box springs are cut  
             open and separated into various components, including cotton,  
             foam, wood and steel.  Through this method, 85% to 90% of a  
             typical mattress can be recycled.  Steel is melted and recast  
             as new items, foam is chipped for use in carpet pad, cotton  
             is used in insulation, and wood can be composted or used as  
             fuel.

           Remanufacturing mattresses and box springs generally involves  
             removing old coverings and materials inside the mattresses  
             and box springs, and leaving the metal or wooden framework  
             and springs which are repaired as needed.  New padding is  
             placed over the springs, foam is placed over the padding for  
             comfort, and a new cover is sewn on in the same way as done  









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             at new mattress manufacturing facilities.

            5)Waste-Management Theories  :  SB 254 creates a producer-managed  
             used mattress recovery and recycling program.  The bill  
             requires a mattress recycling organization to develop and  
             implement a manufacturer and retailer stewardship program to  
             recover and recycle mattresses at the end of their useful  
             life in an environmentally sound manner.  The bill includes  
             an advance recovery fee (ARF) to be paid by the consumer of a  
             new mattress at the point of sale. The fee revenue funds the  
             proposed program, which is managed by the organization and  
             overseen and enforced by CalRecycle. 

           Extended producer responsibility (EPR), and take-back laws in  
             particular, provides that manufacturers should be forced to  
             internalize disposal costs and environmental externalities  
             associated with their products.  EPR involves: 1) the  
             shifting of responsibility (physically and/or economically;  
             fully or partially) upstream toward the producer and away  
             from the municipalities; and, 2) to provide incentives to  
             producers to incorporate environmental considerations in the  
             design of their products.  This bill retains the core concept  
             of EPR in that producers' environmental responsibility (EPR)  
             for products extends beyond the factory door to the  
             post-consumer stage, but is more of a hybrid of two other  
             waste management theories:  product stewardship and advance  
             recovery fee (ARF). 

           Product Stewardship is closely related to EPR.  Product  
             stewardship programs usually involve voluntary approaches and  
             multi-stakeholder dialogues between state governments,  
             industry, and consumer and environmental groups to arrive at  
             better management practices for particular products.  Product  
             stewardship differs from EPR in that responsibility is shared  
             across the chain of custody.

           A consumer-financed ARF is an alternative to producer-financed  
             systems.  Typically, retailers forward the proceeds to a  
             governmental authority that would fund municipal collection  
             centers and subsidize private recycling operations to make  
             recycling economical.  Tax incidence theory holds that some  
             of the ARF would actually be absorbed by manufacturers or  
             retailers, so the burden of funding the new recycling  









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             infrastructure would be shared.  In California, e-waste is an  
             example of an ARF program.  

           From the perspective of state and local governments, ARFs may  
             be considered beneficial because they provide a steady source  
             of revenue to fund the recycling infrastructure needed to  
             manage waste, including "historic waste, " which are used  
             products already on the market when an ARF is enacted.  In  
             California, local governments are generally responsible for  
             dealing with the illegal dumping of mattresses, which can be  
             costly to the local governments.  For example, the author  
             notes that the City of Oakland currently picks up and  
             disposes of approximately 18 to 35 illegally dumped  
             mattresses per day, which annually costs the city $501,355.   
             Many manufacturers favor an ARF as well, because it leaves  
             producers out of the collection and recycling process and may  
             lead to a steady supply of subsidized secondary materials.

           An ARF helps consumers understand that there is a real  
             environmental consequence and disposal cost for products that  
             they purchase.  Such a fee also helps provide consumer  
             awareness that pollution is not solely caused by industrial  
             firms, but by individual consumption decisions as well.  

           However, some environmental groups may disagree with the ARF  
             waste-management theory and prefer EPR policies that directly  
             assign take-back responsibility to producers, on the grounds  
             that only EPR provides incentives for ecological design of  
             products.  A coalition of United States environmental groups  
             has asserted, "[a] system that merely collects money at point  
             of sale and hands it over to a government agency to 'solve  
             the problem' does little to encourage clean production -  
             since there are no built-in incentives in the approach to  
             encourage better design?"  (Noah Sachs, "Planning the Funeral  
             at the Birth:  Extended Producer Responsibility in the  
             European Union and the United States," Harvard Environmental  
             Law Review, 2006.)  

           Rather than require CalRecycle to create and implement a used  
             mattress recovery and recycling program, this bill requires  
             mattress manufacturers and retailers to do so, which requires  
             the producers to be part of the waste solution.  This bill  
             also helps ensure proper checks and balances by providing  









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             oversight and enforcement authority to CalRecycle.

             6) Previous Legislation  .  Last year, SB 1118 (Hancock) would  
              have established mattress recycling goals for the state with  
              the final recycling goal of 75% of mattresses in the state  
              by 2020.  SB 1118 required mattress manufacturers to submit  
              a mattresss recycling plan to CalRecycle for approval and  
              failure to do so would have prohibited mattress  
              manufacturers from selling their products in the state.  SB  
              1118 died on the Senate Floor (17-19).

            SOURCE  :        Authors  

           SUPPORT  :       None on file  

           OPPOSITION :    None on file