BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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          |SENATE RULES COMMITTEE            |                        SB 254|
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                                    THIRD READING


          Bill No:  SB 254
          Author:   Hancock (D), et al.
          Amended:  5/28/13
          Vote:     27


           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  6-0, 4/17/13
          AYES:  Hill, Calderon, Corbett, Hancock, Jackson, Leno
          NO VOTE RECORDED:  Gaines, Fuller, Pavley

           SENATE APPROPRIATIONS COMMITTEE  :  5-1, 5/23/13
          AYES:  De Le�n, Hill, Lara, Padilla, Steinberg
          NOES:  Gaines
          NO VOTE RECORDED:  Walters


           SUBJECT  :    Solid waste:  used mattresses:  recycling and  
          recovery

           SOURCE  :     Californians Against Waste
                      International Sleep Products Association


           DIGEST  :    This bill establishes the Used Mattress Recovery and  
          Recycling Act (Act), a manufacturer and retailer stewardships  
          program, which recovers and recycles used mattresses.

           ANALYSIS  :    

          Existing law:

          1.Requires, under the California Integrated Waste Management Act  
            of 1989, each city or county source reduction and recycling  
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            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.  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.

          2.Requires, pursuant to the Product Stewardship for Carpets  
            Program, 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.

          This bill establishes the Act, and does the following:

           1. Requires a mattress recycling organization (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 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 organization to prepare a proposed used  
             mattress recycling program budget by July 1, 2015, and  
             annually thereafter.  Requires CalRecycle to approve,  
             disapprove, or conditionally approve a final budget by  

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             September 1, 2015, and annually thereafter.

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

           8. Authorizes the organization to set the charge as a flat rate  
             and not as a percentage of the purchase price.  Prohibits the  
             organization from setting more than two different charges to  
             accommodate mattress size differentials.

           9. Authorizes the organization, in the first 12 months during  
             which the mattress recycling charge is collected, to change  
             the amount of the mattress recycling charge, and shall  
             provide no less than 90 days' notice to the public before the  
             change in the amount of the charge takes place.

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

           11.Requires the organization to maintain minutes, books, and  
             records reflecting the activities and transactions of the  
             organization.

           12.Authorizes the organization to conduct audits on parties  
             required to remit the recycling charge to the organization.  

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

           14.Requires, beginning July 1, 2014, retailers to offer a  
             consumer the option of having a used mattress picked up for  
             recovery, at no additional cost, at the time of delivery of a  
             new mattress to the consumer, or be provided with an  
             opportunity for free drop off of the used mattress. 

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

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

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

           18.Authorizes a retailer to contract out to a third-party for  
             the delivery of a new mattress or pick up of a used mattress  
             and authorizes a retailer to charge the consumer for the cost  
             of the delivery of a new mattress.

           19.Authorizes a retailer or third-party contractor delivering a  
             new mattress to refuse to pick up a used mattress from a  
             consumer if the retailer or contractor determines the used  
             mattress is contaminated and poses a risk to personnel, new  
             products, or equipment.

           20.Contains definitions for various terms.
           
          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 one in ten 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.)

           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  

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          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 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."  
           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.

           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  

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          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 at new  
          mattress manufacturing facilities.


           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                 Ongoing costs of approximately $500,000 to the  
               Integrated Waste Management Fund (Special Fund) in FY  
               2014-15 first to draft regulations and guidance documents  
               and for review and certification of the mattress recycling  
               organization and its plan then for ongoing oversight and  
               enforcement.

                 Ongoing revenues of approximately $500,000 to the Used  
               Mattress Recycling Account beginning in FY 2015-16 for  
               reimbursement of state costs.

           SUPPORT  :   (Verified  5/28/13)

          Californians Against Waste (co-source) 
          International Sleep Products Association (co-source) 
          California Apartment Association
          California Retailers Association
          City and County of San Francisco
          City of Berkeley
          City of El Cerrito
          City of Martinez
          City of Richmond
          City of Sunnyvale
          Contra Costa County Board of Supervisors
          Costa Mesa Sanitary District
          DR3 Recycling
          Ecology Action
          Gayle McLaughlin, Mayor of City of Richmond
          LFP Mattress Recycling
          Marin County Hazardous & Solid Waste Management Joint Powers  
          Authority

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          Napa Recycling & Waste Services
          National Resources Defense Council
          Northern California Recycling Association
          Republic Services, Inc.
          Sleep Train, Inc.
          Sonoma County Waste Management Agency
          West Contra Costa Integrated Waste Management Authority



          RM:nl:ej  5/28/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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