BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 254
                                                                  Page  1

          Date of Hearing:   August 30, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 254 (Hancock) - As Amended:  August 26, 2013 

          Policy Committee:                             Natural  
          ResourcesVote:7-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill establishes a statewide mattress recycling program to  
          be developed, implemented, and administered by a mattress  
          recycling organization comprised of manufacturers, retailers,  
          and renovators as approved by CalRecyle.  Specifically, this  
          bill requires CalRecycle to: 

          1)Certify the mattress recycling organization as specified.

          2)Appoint an advisory committee to the recycling organization.

          3)Establish recycling goals and specified program enforcement.

           FISCAL EFFECT 

          One-time costs of $750,000 (special fund) for CalRecycle to  
          adopt regulations, implement, monitor, and enforce the program.   
          Ongoing operational costs of $500,000.

          All costs, including start-up costs, are required to be  
          reimbursed from the proceeds of the mattress recycling charge.

           COMMENTS  

           1)Purpose.   According to the author, the problem of illegally  
            dumped mattresses has become critical, especially in parts of  
            the state that have been hardest hit by the recent recession.   
            The accumulation of these used mattresses in public spaces  
            poses a public health problem as used mattresses can be a  
            breeding ground for mold and pests.    









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            This bill encourages recycling by creating a producer-managed   
            recycling program, including an advance recovery fee to be  
            paid by the consumer at the point of sale. 

           2)Background.   According to the Product Stewardship Institute,  
            approximately 40 million mattresses and box springs are sold  
            in the United States each year for use in residential and  
            institutional settings.   It is estimated that over four  
            million mattresses and box springs were sold in California in  
            2010.  

            According to a recent case study prepared by UC Santa Barbara  
            for CalRecycle, it is estimated that around 4.2 million  
            mattresses and box springs reach the end of their lives in  
            California every year.  Whether they are recycled or disposed,  
            used mattresses represent a significant cost to manage.   
            Analysis by the Product Stewardship Institute indicates that  
            many local governments are paying a per mattress disposal fee  
            ranging from $9 to $30.
           
           3)Recycling Mattresses.   The recycling process for mattresses  
            and box springs consists of manually removing each layer of  
            material.  As a result, only a small percentage of mattresses  
            and box springs are dismantled and recycled.  

            According to St. Vincent DePaul-DR3 Recycling, there are  
            currently five used mattresses recycling companies in  
            California.  Up to 80-90% of a mattress can be recycled by  
            breaking it down into the different components.  Steel and  
            polyurethane foam are most valuable materials with  
            well-established markets, while cotton and wood materials can  
            also be captured and re-sold.  While some mattress components  
            have value, including steel springs and polyurethane foam,  
            there is still a net cost for collection and recycling which  
            discourages large-scale recycling.
           
          4)Proposed Amendments.   The author has proposed a series of  
            amendments to address local government concerns regarding  
            stranded costs, to address potential impact the program may  
            have on Proposition 26 requirements for rate increases to be  
            approved by the voters, and to address technical concerns.   
            Specifically, the author is proposing amendments to:

             a)   Require the nonprofit to address any potential  
               Proposition 26 impacts in the plan submitted to CalRecycle  








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               for approval.

             b)   Clarify the definition of solid waste facility is for  
               the purpose of this program only.

             c)   Delete plan requirements that conflict with other parts  
               of the bill.

            CalRecycle is seeking additional amendments that would  
            authorize the Department to develop emergency regulations in  
            order to meet the initial requirements of the bill.

           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081