BILL ANALYSIS Ó
SB 254
Page 1
Date of Hearing: August 12, 2013
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
SB 254 (Hancock and Correa) - As Amended: August 6, 2013
SENATE VOTE : 32-5
SUBJECT : Solid waste: used mattresses: recycling and recovery
SUMMARY : This bill establishes the Used Mattress Recovery and
Recycling Act (Act), which requires mattress manufacturers and
retailers to develop a mattress stewardships program to increase
the recovery and recycling of used mattresses to reduce illegal
dumping.
EXISTING LAW :
1)Under the California Integrated Waste Management Act of 1989,
requires each city or county to must divert 50 percent of
solid waste on and after January 1, 2000 through source
reduction, recycling, and composting activities. The Act
establishes a statewide policy goal that not less than 75
percent of solid waste be source reduced, recycled, or
composted on and after January 1, 2020.
2)Establishes the California Oil Recycling Enhancement Act,
which requires manufacturers of used oil to pay a fee of 4
cents per quart (16 cents per gallon) to the Department of
Resources Recycling and Recovery (CalRecycle), which then pays
a recycling incentive of 4 cents per quart to industrial
generators, curbside collection program operators, and
certified used oil collection center for used oil collected
from the public and transported for recycling. This Act
includes related grants and loans, development and
implementation of an information and education program, and a
reporting, monitoring, and enforcement program.
3)Establishes the Electronic Waste Recycling Act of 2003, which
requires a retailer selling a covered electronic device (CED)
in California to collect a recycling fee ($3 to $5) from the
consumer. Fees are deposited into the Electronic Waste
Recovery and Recycling Account, which is continually
appropriated to CalRecycle and the Department of Toxic
Substances Control to make electronic waste recovery payments
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to cover the net cost of an authorized collector in operating
a "free and convenient" system for collecting, consolidating,
and transporting CEDs, and to make electronic waste recycling
payments to cover an electronic waste recycler's average net
cost of receiving, processing, and recycling CEDs. The Act
defines CED as a product that contains a video display device
4 inches and larger.
4)Establishes the Cell Phone Recycling Act, which requires every
retailer of cell phones to have in place a system for the
acceptance and collection of used cell phones for reuse,
recycling, or proper disposal. Specifies that this Act be
cost-free to consumers.
5)Establishes the Rechargeable Battery Recycling Act, which
requires every retailer of rechargeable batteries to have in
place a system for the acceptance and collection of used
rechargeable batteries for reuse, recycling, or proper
disposal. Specifies that this Act be cost-free to consumers.
6)Establishes the Dry Cell Battery Management Act, which
establishes requirements for the production and labeling of
consumer products with dry cell batteries and sets limits on
the amount of mercury in those batteries.
7)Establishes the Mercury Thermostat Collection Act, which
requires manufacturers to establish and maintain a program for
out-of-service mercury-added thermostats. Requires the
program to include collection, handling, and arranging for
appropriate management of out-of-service mercury-added
thermostats. This program is cost-free to consumers.
8)Requires pharmaceutical manufacturers that sell or distribute
a medication in California, which is usually self-injected at
home with a hypodermic needle to submit to CalRecycle a plan
that describes any actions taken by the manufacturer for the
safe collection and proper disposal of the waste devices by
July 1, 2010, and annually thereafter.
9)Establishes the Product Stewardship for Carpets Program, which
requires manufacturers of carpet sold in California to submit
a carpet product stewardship plan to CalRecycle that
demonstrates how it will manage its waste carpet.
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10)Establishes the Architectural Paint Recovery Program, which
requires architectural paint manufacturers to develop and
implement a program to manage waste latex paint.
THIS BILL :
1)States legislative findings relating to the illegal dumping
and potential for recycling of used mattresses and declares
the intent of the Legislature to provide consumers with the
opportunity to drop off used mattresses free of charge.
2)Defines the terms used in the bill, including:
a) "Manufacturer" as a person who manufactures a mattress
and who sells, offers for sale, or distributes a mattress
in the state. If there is no person that meets this
definition, specifies that the manufacturer is the person
who imports the mattress into California for sale or
distribution. Exempts retailers from this definition if
they import mattresses into the state from an out-of-state
warehouse or distribution center.
b) "Mattress" as a resilient material or combination of
materials that is enclosed by a ticking, is used alone or
in combination with other products, and is intended for or
promoted for sleeping upon. Specifies that mattress
foundations are included in this definition.
c) "Mattress recycling organization" (organization) as a
tax-exempt organization that is established to develop,
implement, and administer a mattress recycling program.
d) "Recycler" as a person who engages in the manual or
mechanical separation of mattresses to substantially
recovers components and commodities contained in mattresses
for the purpose of reuse or recycling.
e) "Renovator" as a person who renovates used mattresses
for the purpose of sale, or offering for sale, in the
state.
f) "Retailer" as a person who sells mattresses in the state
or offers to a consumer a mattress in the state through any
means, including, but not limited to, remote offering,
including sales outlets or catalogs, electronically through
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the Internet, by telephone, or through the mail.
g) "Used mattress" as a mattress that has been abandoned or
discarded by a consumer.
3)On or before July 1, 2014, requires "a qualified industry
organization" to establish an organization for purposes of
developing, implementing, and administering a mattress
recycling plan (plan). Specifies that the mattress recycling
organization be composed of manufacturers, renovators, and
retailers.
4)Requires all manufacturers, renovators, and retailers to
register with the organization by January 1, 2015. Authorizes
retailers to register as a manufacturer for a brand for which
there is no registered manufacturer.
5)On and after specified dates, prohibits retailers,
manufacturers, and renovators from selling or distributing
mattresses in the state that are not in compliance with the
requirements of the bill.
6)On or before July 1, 2015, requires the organization to submit
the plan to CalRecycle, and requires CalRecycle to approve,
conditionally approve, or disapprove the plan, based on
specified criteria and within specified timelines.
7)Establishes requirements for the plan, including, in part:
a) Program objectives that are consistent with the state's
solid waste hierarchy;
b) A consultation process with stakeholders, including, but
not limited to, local government representatives,
recyclers, and solid waste industry representatives;
c) Methods to increase the number of used mattresses
diverted from landfills and reduce the number of illegally
dumped used mattresses;
d) Methods to determine the number of mattresses sold in
the state and used mattresses collected for recycling,
renovation, and disposal;
e) Methods used to coordinate activities with existing used
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mattress collecting and recycling programs;
f) Establishing a financial incentive to encourage parties
to collect for recycling used mattresses discarded or
illegally dumped in the state.
g) Ensuring, to the maximum extent possible, that local
governments and solid waste facilities are provided with a
mechanism for the recovery of illegally disposed mattresses
that is funded "at no additional cost to the local
government or the solid waste facility;" and,
h) Ensuring, to the maximum extent possible, that solid
waste facilities offer individuals free drop-off of used
mattresses and providing for the reimbursement of
"reasonable costs" associated with this activity.
8)Specifies that the plan is a public record, with the exception
of protected financial and sales data.
9)Within 60 days of CalRecycle approval, requires the
organization to implement the plan.
10)On or before January 1, 2017, requires CalRecycle, in
consultation with the organization and taking into account
specified factors, to establish the state mattress recycling
baseline amount and the state mattress recycling goal.
Requires CalRecycle to review and update the recycling goal
every four years.
11)On and after April 1, 2020, requires the organization to
demonstrate "substantial compliance" with the state mattress
recycling goal.
12)On or before July 1, 2015, and annually thereafter, requires
the organization to develop a used mattress recycling program
budget, as specified. Requires CalRecycle to approve or
disapprove the budget by September 1, 2015, and annually
thereafter.
13)On or before July 1, 2015, and quarterly thereafter, requires
the organization to reimburse CalRecycle for "costs the
department incurs that are directly related to the mattress
recycling organization's activities pursuant to this chapter."
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14)Establishes the Used Mattress Recycling Account within the
Integrated Waste Management Account, into which all
reimbursements and penalties shall be deposited. Requires the
funds to be expended to administer and enforce the program.
15)Requires the organization to establish a "mattress recycling
charge" to be added to the purchase price of a mattress.
Specifies that the charge be sufficient to fund the
organization's requirements under the bill. Requires the
charge to be a flat rate, and permits no more than two
different charges for different mattress sizes.
16)Authorizes the organization to revise the charge when
appropriate, as specified.
17)Authorizes the organization to conduct an audit of parties
required to collect the charge. If the organization conducts
an audit, requires that CalRecycle receive a copy.
18)Authorizes the organization to enter into a joint venture,
agreements, or contracts with third parties, including, but
not limited to, corporations, partnerships, nonprofit
entities, and governmental agencies to undertake activities on
behalf of the organization.
19)Specifies record keeping requirements for the organization,
and requires the organization to be audited at the
organization's expense by an independent certified public
accountant at least once per calendar year, and requires that
the audit be provided to CalRecycle.
20)Authorizes CalRecycle to conduct its own audit of the
organization if it determines that an audit is necessary to
enforce the requirements of the bill and that the audit
conducted by the organization is not adequate for this
purpose.
21)On or before April 1, 2016, and annually thereafter, requires
the organization to prepare a report, which shall be submitted
to CalRecycle and made available to the public. Requires that
the report include, in part:
a) Financial information;
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b) The quantity of used mattresses disposed, collected for
recycling, and the quantities of materials recycled;
c) On and after April 1, 2020, information demonstrating
compliance with the state mattress recycling goal; and,
d) Other information, as specified.
22)On and after April 1, 2016, and annually thereafter, requires
recyclers and renovators to submit a report to CalRecycle with
specified information regarding the number of mattresses
received, renovated, recycled, or disposed.
23)On and after July 1, 2014, requires retailers to pick-up a
used mattress whenever a new mattress is delivered to a
consumer at no cost, but does not prohibit a retailer from
charging a delivery fee. If the retailer determines that a
used mattress is contaminated and poses a risk to personnel,
new products, or equipment permits the retailer to refuse
pick-up. Requires a retailer to provide the opportunity for
free drop-off of a used mattress that is not picked-up for
this reason. Exempts online sales from this requirement.
24)On or before March 1, 2015, and annually thereafter, requires
CalRecycle to post a list of manufacturers and renovators that
are in compliance with the requirements of the bill.
25)Establishes civil penalties for violations of the bill's
requirements not to exceed $500 per day, and up to $5,000 per
day for intentional, knowing, or reckless violations.
26)Upon a finding that a manufacturer, organization, renovator,
or retailer is not in compliance, authorizes CalRecycle to
revoke the plan approval, remove the entity from the published
listing, and require additional reporting requirements as
needed for compliance.
27)Provides for antitrust immunity for members of the
organization as their actions relate to the requirements of
the bill.
FISCAL EFFECT : According to the Senate Appropriations
Committee, this bill has ongoing costs of approximately $500,000
to the Integrated Waste Management Fund in fiscal year (FY)
2014-15 first to draft regulations and guidance documents and
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for review and certification of the mattress recycling
organization and its plan, and then for ongoing oversight and
enforcement. This bill will have ongoing revenues of
approximately $500,000 to the Used Mattress Recycling Account
beginning in FY 2015-16 for reimbursement of state costs.
COMMENTS : According to the author, "In recent years, the
problem of illegally dumped mattresses has become more and more
serious, especially in the parts of the state that have been
hardest hit by the recent recession. The accumulation of these
used mattresses in public spaces, especially if left for [a]
long period of time, can pose a serious public health problem.
Used mattresses can be a breeding ground for mold and pests.
The scope of the problem is real and growing. In Oakland, for
example, between 18 and 35 mattresses are recovered by the city
per day. The city estimates that municipal operations devoted
to recovering these mattresses cost approximately $500,000
annually. The City of Richmond estimates that it has recovered
approximately 5,000 illegally dumped mattresses from December
2010 to March 2012. The City of Los Angeles estimates that it
recovers 120-150 illegally dumped mattresses per day. The City
and County of San Francisco recovers approximately 75 to 80
mattresses per day." The author states that this bill provides
a method to recover and recycle used mattresses to minimize
illegal disposal.
Mattress management : Mattresses and box springs are difficult
to move and inconvenient to dispose of properly, resulting in
high levels of illegal disposal. 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."
Even when properly disposed of in a solid waste facility, they
are difficult to manage. Their bulk clogs up equipment, and
they are difficult to compact. Even after disposal, they have a
tendency to "float" to the surface of the waste.
CalRecycle is the state entity responsible for investigation,
cleanup, and enforcement of illegal solid waste disposal sites
and shares this responsibility with local enforcement agencies.
In 2006, CalRecycle established a state and local Illegal
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Dumping Technical Advisory Committee (IDTAC) to assess the
extent of the illegal dumping problem and make recommendations
to "enhance the effectiveness of local and regional responses to
the problem." According to CalRecycle information presented at
a meeting of the IDTAC, approximately 4.2 million mattresses and
box springs are disposed (legally or illegally) each year in
California. CalRecycle estimates that 85 percent of the
material is recyclable and that mattress recycling would create
approximately 100 new jobs.
The California State Association of Counties, League of
California Cities, and the former California Integrated Waste
Management Board (now CalRecycle) requested county
administrative officers and city managers to participate in a
June 2006 survey on illegal dumping and litter abatement.
According to the survey, local government abatement and
enforcement costs were approximately $44 million based on
responses from 35 counties and 37 cities, so the true cost is
likely considerably higher. The California Department of
Transportation spends approximately $55 million annually for
highway cleanups.
St. Vincent De Paul Society operates DR3 mattress recycling in
Oakland. 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 percent 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.
Renovating 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 and foam is
placed over the springs, and new mattress ticking is sewn on.
Estimates on the number of mattress recyclers in California
vary. The committee was able to identify a handful of
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facilities, located in the Los Angeles area, the Bay Area, and
in Central California. These facilities deconstruct the
mattresses on-site and create green jobs for Californians.
Producer responsibility or advance recovery fee? 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, renovator, 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, provide that manufacturers should internalize
disposal costs associated with their products. EPR involves: 1)
the shifting of responsibility upstream toward the producer and
away from the municipalities; and, 2) providing incentives to
producers to incorporate environmental considerations in the
design of their products.
Some environmental groups disagree with ARFs and prefer "true"
EPR policies that place end-of-life management for products on
the manufacturers, on the grounds that only EPR provides
incentives for ecological design of products and incorporates
the costs for the product's life-cycle into the cost of the
product. 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.)
This bill combines a core concept of EPR, by holding producers
responsible for the management of the system, with an ARF on
consumers at the point-of-sale. Rather than requiring
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 oversight and enforcement authority to
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CalRecycle.
Previous Legislation : Last year, SB 1118 (Hancock) would have
established mattress recycling goals for the state with the
final recycling goal of 75 percent of mattresses in the state by
2020. SB 1118 required mattress manufacturers to submit a
mattress 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 failed passage on
the Senate Floor (17-19).
Suggested amendments : The committee may wish to amend the bill
to address a number of minor technical issues .
REGISTERED SUPPORT / OPPOSITION :
Support
Californians Against Waste (sponsor)
International Sleep Products Association (sponsor)
CalChamber
California Apartment Association
Californians for Mattress Recycling
City and County of San Francisco
City of Cloverdale
City of El Cerrito
City of Martinez
City of Oakland
City of Richmond
City of Sunnyvale
City of Thousand Oaks
Contra Costa County
Costa Mesa Sanitary District
Deslee Textiles USA, Inc.
Ecology Action
Got Sleep?
Jerome's Furniture
LFP Recycling, Inc.
Leigh Fibers
Marin County Hazardous and Solid Waste Management Joint Powers
Authority
Mattress Discounters
McRoskey Mattress Company
Napa Recycling and Waste Services
Northern California Recycling Association
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Republic Services
Secondary Materials and Recycled Textiles Association
Select Comfort
Sit 'n Sleep
Sleep Country
Sleep Train Mattress Centers
Sonoma County Waste Management Agency
Tempur-Pedic
West Contra Costa County Integrated Waste Management Authority
1 individual
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Opposition
None on file
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092