BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 254| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 254 Author: Hancock (D), and Correa (D) et al. Amended: 9/6/13 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 León, Hill, Lara, Padilla, Steinberg NOES: Gaines NO VOTE RECORDED: Walters SENATE FLOOR : 32-5, 5/29/13 AYES: Beall, Berryhill, Block, Calderon, Cannella, Corbett, Correa, De León, DeSaulnier, Emmerson, Evans, Galgiani, Hancock, Hernandez, Hill, Hueso, Huff, Jackson, Lara, Leno, Lieu, Liu, Monning, Padilla, Pavley, Price, Roth, Steinberg, Torres, Wolk, Wright, Yee NOES: Anderson, Fuller, Gaines, Knight, Wyland NO VOTE RECORDED: Nielsen, Walters, Vacancy ASSEMBLY FLOOR : Not available SUBJECT : Solid waste: used mattresses: recycling and recovery SOURCE : Californians Against Waste International Sleep Products Association CONTINUED SB 254 Page 2 DIGEST : 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. Assembly Amendments: 1) require the mattress recycling plan address any potential Proposition 26 issues for local governments; 2) specify that the mattress recycling plan (plan) ensures that urban and rural local governments and participating (rather than permitted) solid waste facilities are provided with a mechanism for the collection of illegally disposed mattresses; 3) change the date by which the mattress recycling organization must submit the annual report; 4) change the date by which recyclers, renovators, and solid waste facilities must begin reporting to Department of Resources Recycling and Recovery (CalRecycle); 5) specify that any plan modifications or revisions will be subject to CalRecycle review and require revised plans to be implemented 90 days after approval; 6) specify that penalties collected be deposited in the Used Mattress Recycling Fund; 7) authorize CalRecycle to develop emergency regulations to implement the requirements of this bill; 8) state legislative intent that this bill will not undermine existing used mattress recycling, resale, refurbishing, and reuse operations; and 9) make other clarifying and technical changes. ANALYSIS : Existing law: 1.Requires, under the California Integrated Waste Management Act of 1989, 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. 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 CONTINUED SB 254 Page 3 Program, manufacturers of carpet sold in California to submit a carpet product stewardship plan to the CalRecycle that demonstrates how it will manage its waste carpet. This bill establishes the Act, and does the following: 1. On or before July 1, 2014, requires "a qualified industry organization" to establish an organization for purposes of developing, implementing, and administering a plan. Specifies that the mattress recycling organization be composed of manufacturers, renovators, and retailers. 2. 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. 3. 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. 4. 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. 5. On or before January 1, 2018, 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. 6. On and after July 1, 2019, requires the organization to demonstrate a good faith effort to comply with the state mattress recycling goal. 7. 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. CONTINUED SB 254 Page 4 8. 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. 9. 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. 10.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. 11.Authorizes CalRecycle to adopt emergency regulations to implement the requirements of the bill. 12.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 two 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. CONTINUED SB 254 Page 5 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 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 CONTINUED SB 254 Page 6 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 at new mattress manufacturing facilities. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Assembly Appropriations Committee, this bill has one-time costs of $750,000 (special fund) for CalRecycle to adopt regulations, implement, monitor, and enforce the program and 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. SUPPORT : (Verified 9/11/13) Californians Against Waste (co-source) International Sleep Products Association (co-source) California Apartment Association California Manufacturers and Technology Association California Retailers Association California State Association of Counties Cities of: Berkeley, El Cerrito, Martinez, Richmond, and Sunnyvale City and County of San Francisco Contra Costa County Board of Supervisors Costa Mesa Sanitary District DR3 Recycling Ecology Action Gayle McLaughlin, Mayor of City of Richmond League of California Cities LFP Mattress Recycling Marin County Hazardous & Solid Waste Management Joint Powers Authority Napa Recycling & Waste Services National Resources Defense Council Northern California Recycling Association CONTINUED SB 254 Page 7 Republic Services, Inc. Rural County Representatives of California Sanitation Districts of Los Angeles County Sleep Train, Inc. Sonoma County Waste Management Agency Waste Management West Contra Costa Integrated Waste Management Authority OPPOSITION : (Verified 9/11/13) California Stewardship Council RM:nl:ej 9/11/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED