BILL ANALYSIS Ó
SB 270
Page 1
Date of Hearing: June 18, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 270 (Padilla) - As Amended: May 20, 2014
Policy Committee: Natural
ResourcesVote:5-3
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill prohibits retail stores from providing single-use
carryout bags to customers, and requires retail stores to
provide only reusable grocery bags for no less than 10 cents per
bag. Specifically, this bill:
1)Appropriates $2 million from an unspecified special fund to
CalRecycle for grants and loans for manufacturing conversion
and the recycling of plastic reusable bags with recycled
content. Requires grant recipients to retain and retrain
existing employees for the manufacturing of reusable grocery
bags that meet the requirements of the bill.
2)Prohibits grocery stores and large retail establishments with
licensed pharmacies from providing single-use carryout bags at
the point of sale beginning July 1, 2015. This includes bags
made of plastic, paper, or other material that is not
reusable, as defined. Expands the prohibition to convenience
food stores and foodmarts beginning July 1, 2016. Exempts the
following from the definition of single-use carryout bag:
a) Prescription medication bags.
b) Nonhandled bags used to protect products from
contamination by other products.
c) Bags to contain unwrapped food items, i.e., bulk food
from bins.
d) Clothing bags placed over hangers
1)Beginning July 1, 2015, a store may sell or distribute a
reusable grocery bag to a customer at the point of sale only
if the reusable bag is made by a certified producer and meets
SB 270
Page 2
the following requirements:
a) Contains a handle and is designed for at least 125 uses
and:
i) If made from plastic film, contains a minimum
or 20% postconsumer recycled material after January 1,
2016.
ii)If made from plastic film, contains a minimum of 40%
postconsumer recycled material by January 1, 2020.
iii)Is recyclable in the state and contains applicable
content information.
a) Provides a volume capacity of 15 litres.
b) Is machine washable or made from a material that can be
cleaned and disinfected.
c) Has printed or attached to the bag the following
information:
i) The name of the manufacturer.
ii) The country where the bag was manufactured.
iii) A statement that the bag is a reusable bad and
designed for at least 125 uses.
iv) If applicable, instruction on how to recycle the
bag in the state and the inclusion of the symbol or
term "recyclable" consistent with federal guidelines.
a) Does not contain lead, cadmium or toxic materials as
specified and complies with recycling claims pursuant to
federal law.
1)Provides additional specifications for reusable plastic bags
made from plastic film or natural or synthetic fiber.
2)Authorizes stores to provide reusable grocery bags, including
compostable bags, recycled paper bags, and reusable plastic
bags at the point of sale for no less than 10 cents per bag.
3)Requires stores to provide reusable grocery bags or recycled
paper bags to customers participating in the California
Special Supplemental Food Program for Women, Infants, and
Children, and other supplemental food assistance programs, as
specified, at no cost.
SB 270
Page 3
4)Allows stores that are not subject to the prohibition to
voluntarily comply with the provisions of the bill.
5)Allows cities and counties or other public agencies that have
adopted an ordinance relating to reusable grocery bags,
single-use plastic carryout bags, or recycled paper bags, to
continue to enforce the ordinance if it was adopted before
September 1, 2014. Any amendments to the ordinances after
January 1, 2015 are pre-empted by the provisions of the bill
except if the amendment only increases the amount the store
charges for a reusable bag to no less than 10 cents.
6)Requires CalRecyle to establish a schedule and procedure for
reusable bag and postconsumer recycled content certifications,
including a fee for implementation costs.
7)Requires CalRecyle to publish a list of approved bags and
approved third-party certification entities on its website.
8)Authorizes a certification process for CalRecycle to:
a) Test, inspect, audit grocery bags and producers. Audit
costs shall be paid by the producer.
b) Enter into agreements with s other state entities to
conduct inspections and provide enforcement.
1)Authorizes local government and the state to impose civil
penalties of up to $500 for first-time offenders, $1,000 for
second violations, and $2,000 for subsequent violations.
Proceeds from these penalties shall be paid to the city
attorney, city prosecutor, district attorney or Attorney
General that brought the action.
FISCAL EFFECT
1)$2 million unspecified special fund appropriation to
CalRecycle to establish a loan and grant program for reusable
plastic bag manufacturing machinery and facilities conversion
and worker training.
2)Significant one-time costs and ongoing costs to CalRecyle,
potentially in the $1 million to $1.4 million range to oversee
and implement the program, including $500,000 or more for
evaluation, bag testing and data compiling requirements.
SB 270
Page 4
3)Significant revenue increase for stores resulting from
reusable bag charges paid by customers.
Assuming the minimum 10 cent charge required by the bill,
stores would receive additional revenue of $100,000 for every
million bags sold. It is estimated that up to 14 billion
single-use plastic bags are used in California annually.
COMMENTS
1)Rationale. According to the author, California uses an
estimated 14 billion single-use plastic bags a year.
According to CalRecycle, currently, less than five percent of
single-use plastic bags are recycled.
The environmental impact of single-use plastic bags is
well-documented. Plastic bags comprise 10% of marine debris
and take more than 1,000 years to break down. Reusable bags
have a lower overall impact than single-use bags.
The author contends plastic bags cause litter, slow sorting
and jam recycling machinery costing Californians millions to
collect and bury plastic bag waste. The author is carrying
this bill to ban plastic bags on a statewide level thus
reducing litter and marine debris.
2)Background. According to Californians Against Waste, an
estimated $34 million to $107 million is spent by local
governments to manage plastic bag liter in the state.
The Natural Resources Defense Council estimates California
cities spend about $11 per resident to keep litter from ending
up in our oceans as marine pollution alone. Although plastic
represents a relatively small fraction of the overall waste
stream in California by weight, plastic is the most prevalent
form of marine debris. Plastics are estimated to comprise 60%
to 80% of all marine debris, and 90% of all floating debris.
According to the California Coastal Commission, the primary
source of marine debris is urban runoff, to which lightweight
plastic bags and plastic film are particularly susceptible.
Due to the interplay of ocean currents, marine debris tends to
accumulate in certain areas of the ocean.
SB 270
Page 5
Most plastic marine debris exists as small plastic particles
due to excessive UV radiation exposure and subsequent
photo-degradation. These plastic pieces are ingested by
marine organisms and have been proven to negatively affect
over 250 animal species worldwide.
3)Local Bag Ordinances. According to the Califonian's Against
Waste website, at least 100 cities and counties and public
agencies throughout California have adopted ordinances banning
plastic bags including San Francisco, San Jose, Long Beach,
Los Angeles County, Los Angeles City, Santa Clara County,
Alameda County. Many of these local governments also require
stores to charge a fee for a paper carryout bag, and a few
have banned both single-use plastic and paper carryout bags.
By January 1, 2015, local bans will cover over 1/3 of the
state.
4)Pollution Control or Profit? SB 270 requires stores to charge
not less than 10 cents for both paper bags and reusable bags.
Some of the previous bills on this issue directed fee revenues
to be used for litter and pollution prevention, as well as
stormwater, sewer and water treatment facility problems
associated with bag debris.
Some local ordinances, for example, Los Angeles County, allow
the money generated by bag purchases and retained by stores to
be used only for the stores' costs of compliance, actual costs
of providing recyclable paper carryout bags, or costs for
educational materials/campaigns encouraging the use of
reusable bags.
Although charging for reusable bags may encourage people to
bring their own bags, none of the revenue raised by this bill
is dedicated to local government liter control efforts.
5)Support. This bill is supported by numerous environmental
groups, local governments, labor organizations and the State
Lands Commission, all of which cite the environmental benefits
and removal cost savings associated with switching to reusable
bags.
This bill is also supported by major retail stores who are
burdened by different requirements throughout California's
jurisdictions and prefer a statewide standard, even if it is
only going forward.
SB 270
Page 6
6)Opposition. This bill is opposed by several paper and plastic
bag manufacturers and some local governments. Manufacturers
argue this bill will create detrimental economic situations
and job loss. Opposition is also concerned that this bill
unfairly includes recycled paper bags in the fee provisions,
without cause. Others contend this bill is a partial plastic
bag ban that actually encourages the use of heavy duty plastic
bags without providing specific recycling programs.
7)Previous Legislative Attempts. Since 2007, numerous attempts
to ban or charge fees for non-reusable bags have all failed in
the Legislature.
8)Related Legislation, This session, SB 405 (Padilla) is
substantially similar to this bill.
SB 405 died on the Senate Floor. AB 158 (Levine) was passed
out of this committee in January but placed on inactive by the
author on the Assembly floor. AB 158 did not contain a
minimum fee for reusable bags.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081