BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                SB 270
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Jerry Hill, Chair
                              2013-2014 Regular Session
                                           
           BILL NO:    SB 270
           AUTHOR:     Padilla, De León, and Lara
           AMENDED:    August 21, 2014
           FISCAL:     Yes               HEARING DATE:     August 29, 2014
           URGENCY:    No                CONSULTANT:       Joanne Roy
            
           SUBJECT  :    SOLID WASTE:  SINGLE-USE CARRYOUT BAGS

            SUMMARY  :    
           
            Existing law  : 
            
            1) Under the At-Store Recycling Program (Public Resources Code  
              §42250 et seq.) (part of the California Integrated Waste  
              Management Act of 1989):

              a)    Requires operators of stores, defined as supermarkets  
                 and stores over 10,000 square feet that includes a  
                 pharmacy, to establish an at-store recycling program.   
                 Under the program: 

                 i)         Plastic bags provided by the store must  
                      include a label encouraging customers to return the  
                      bag to the store for recycling.

                 ii)        Clearly labeled and easily accessible  
                      recycling bins for plastic bags must be provided.

                 iii)       All plastic bags collected must be recycled in  
                      a manner consistent with the local jurisdiction's  
                      recycling plan.

                 iv)        The store must maintain records relating to  
                      the program for at least three years and must make  
                      the records available to the local jurisdiction or  
                      the Department of Resources Recovery and Recycling  
                      (CalRecycle) upon request.

                 v)         The operator of the store must make reusable  









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                      bags available to customers.

              b)    Requires plastic carryout bag manufacturers to develop  
                 educational materials to encourage reducing and recycling  
                 of plastic carryout bags and make those materials  
                 available to stores. 

              c)    Allows cities and counties to adopt, implement, and  
                 enforce local laws related to local curbside or drop-off  
                 recycling programs.

              d)    Authorizes a city, county, or the state to levy fines  
                 for stores in violation of this law.  

              e)    Defines "reusable bag" as a bag with handles and made  
                 of either cloth or durable plastic.  Requires a reusable  
                 bag made of plastic to be at least 2.25 mils thick and  
                 specifically designed for multiple uses.

              f)    Sunsets the above provisions on January 1, 2020.

          2)Establishes the Toxics in Packaging Prevention Act, which: 

             a)   Prohibits a person from offering for sale or for  
                promotional purposes in this state a product in a package  
                that includes a regulated metal in the package itself or  
                in a packaging component if the regulated metal has been  
                intentionally introduced into the package or packaging  
                component during manufacturing or distribution.

             b)   Defines "regulated metal" as lead, mercury, cadmium, or  
                hexavalent chromium.

             c)   Defines "package" as any container, produced either  
                domestically or in a foreign country that provides a means  
                of marketing, protecting, or handling a product from its  
                point of manufacture to its sale or transfer to a  
                consumer, including a unity package, an intermediate  
                package, or a shipping container.  "Package" also includes  
                unsealed receptacles, including carrying cases, crates,  
                cups, pails, rigid foil and other trays, wrappers and  
                wrapping films, bags (including single-use carryout bags),  
                and tubs.









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             d)   Excludes reusable bags from the definition of "package."

          3)Establishes the Recycling Market Development Revolving Loan  
             Program to provide low-interest loans to businesses within  
             one of the state's Recycled Market Development Zones (RMDZ)  
             for the purchase of equipment and other relevant business  
             costs.   

            This bill  :  

           1)Defines terms in the bill, including:

              a)   "Recycled paper bag" as a paper carryout bag provided  
                by a store to a customer at the point of sale and contains  
                a minimum of 40% postconsumer recycled materials.  For a  
                bag with the capacity to hold eight pounds or less, the  
                bag must contain at least 20% postconsumer recycled  
                materials.  A recycled paper bag must be accepted for  
                recycling in a majority of households in curbside  
                recycling programs in the state, as well as have specified  
                information printed on the bag.

              b)   "Reusable grocery bag" as, on and after July 1, 2016, a  
                bag that meets requirements specified in 2) below.

              c)   "Single-use carryout bag" as a bag made of plastic,  
                paper, or other material that is provided by a store to a  
                customer at the point of sale.  Exempts from this  
                definition specified bags, including a bag provided by a  
                pharmacy for a prescription purchase, a nonhandled bag  
                used to protect an item from damaging or contaminating  
                other items when placed in a recycled paper bag or  
                reusable grocery bag, and a dry-cleaning or garment bag.

              d)   "Store" as a full-line self-service retail store with  
                gross annual sales of at least $2 million and sells a line  
                of dry grocery, canned goods, or nonfood items and some  
                perishables (a typical grocery store); has at least 10,000  
                square feet of retail space and a pharmacy; or, a  
                convenience food store or foodmart.  Includes in the  
                definition of store any other retail establishment that  
                voluntarily agrees to comply with the requirements of the  









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                bill.  

           2)Beginning July 1, 2015, requires that a reusable grocery bag  
             be able to be used a minimum of 125 times, as specified; can  
             be cleaned; have specified information visible on the bag;  
             cannot contain lead, cadmium, or any other toxic material  
             that may pose a threat to public health; and, must be  
             consistent with federal regulations related to recyclable  
             claims if the bag producer claims the bag is recyclable.

           3)Establishes certification requirements for producers of  
             reusable bags and suppliers of postconsumer recycled content.  
              

           4)Prohibits stores from making single-use carryout bags  
             available at the point of sale on the following timeline:   

              a)   On and after January 1, 2015, at either a grocery store  
                or retailer with at least 10,000 square feet of retail  
                space and a pharmacy.

              b)   On and after July 1, 2016, at a convenience food store  
                and foodmart.

           5)Authorizes a store to make available a reusable grocery bag  
             or recycled paper bag at the point of sale.  Requires that  
             these bags may not be sold to a consumer for less than $0.10.  
              

           6)Requires that all moneys collected by stores pursuant to the  
             bill be retained at the store and be used for costs  
             associated with complying with the bill; actual costs of  
             providing recycled paper bags and reusable grocery bags; and,  
             costs associated with a store's educational materials or  
             educational campaign encouraging the use of reusable bags. 

           7)Requires a store to provide a reusable bag or recycled paper  
             bag at no charge to any customer using California Special  
             Supplemental Food Program for Women, Infants and Children  
             benefits, CalFresh benefits (federally known as Supplemental  
             Nutrition Assistance Program [SNAP] benefits), California  
             Food Assistance Program benefits, or cash aid benefits.  










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           8)Authorizes stores that are not included in the bill to  
             voluntarily participate in the bill's requirements by  
             submitting an irrevocable written notice to CalRecycle  
             containing specified information.  

           9)Authorizes a city, county, city and county, or the state to  
             impose civil liability of $1,000 for the first violation of  
             the proposed law, $2,000 for the second violation, and $5,000  
             for each subsequent violation.  Collected penalties must be  
             paid to whichever agency brought the action.  

           10)Preempts local ordinances adopted on or after September 1,  
             2014, relating to reusable grocery bags, single-use carryout  
             bags, or recycled paper bags.  

           11)Appropriates $2 million from the Recycled Market Development  
             Revolving Loan Subaccount for loans for the creation and  
             retention of jobs and economic activity in the state for the  
             manufacture and recycling of plastic reusable grocery bags  
             that use recycled content.  Requires recipients of a loan to  
             retain and retrain existing employees for the manufacturing  
             of reusable grocery bags that meet the requirements of the  
             bill.  Specifies that any funds not expended by the end of  
             the 2015-16 fiscal year revert back to the Subaccount.  

            COMMENTS  :

            1) Purpose of Bill  .  The author states, "California uses an  
              estimated 14 billion single-use plastic bags a year.   
              According to CalRecycle, less than five percent of  
              single-use plastic bags are recycled.  Plastic bags cause  
              litter, slow sorting and jam machinery at recycling centers  
              costing California more than an estimated $25 million each  
              year to collect and bury the plastic bag waste.  By banning  
              plastic bags on a statewide level, the amount of litter and  
              plastic marine debris caused by plastic bags can be  
              significantly reduced."

            2) Background  .  Plastic bags and plastic film together  
              represent 2.2% of the waste stream, and every year  
              California taxpayers spend $25 million disposing of the 19  
              billion plastic bags used annually. Although plastic  
              represents a relatively small fraction of the overall waste  









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              stream in California, plastic waste is the predominate form  
              of marine debris.  Plastics are estimated to compose 60-80%  
              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, of which  
              lightweight plastic bags and plastic film are particularly  
              susceptible.  Due to the interplay of ocean currents, marine  
              debris preferentially accumulates in certain areas  
              throughout the ocean.  The North Pacific Central Gyre is the  
              ultimate destination for much of the marine debris  
              originating from the California coast.  A study by the  
              Algalita Marine Research Foundation found an average of more  
              than 300,000 plastic pieces per square mile of the Gyre and  
              that the mass of plastic was six times greater than  
              zooplankton floating on the water's surface. 

           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  
              aquatic organisms and have already negatively affected over  
              250 animal species worldwide.  In addition, hydrophobic  
              chemicals present in the ocean in trace amounts (e.g., from  
              contaminated runoff and oil and chemical spills) have an  
              affinity for, and can bind to, plastic particles and may  
              also enter and accumulate in the food chain through the same  
              mechanism. 

            3) Should Slightly Thicker Plastic Bags Be Considered  
              "Reusable" Bags  ?  This bill allows a bag made from plastic  
              film be considered "reusable"  if it is "capable of carrying  
              22 pounds over a distance of 175 feet for a minimum of 125  
              uses and be at least 2.25 mils thick?" (SB 270 as amended  
              August 21, 2014, Page 8, lines 6-9).  

           A plastic bag with a 2.25 mils thickness has a slightly thicker  
              plastic film than a single-use bag and currently is  
              typically provided by a retail/department store at the point  
              of purchase such as See's Candy or Fleet Feet.  It is  
              questionable whether most people would consider such bags as  
              "reusable" in the same, general sense as a cloth bag.  Will  
              consumers actually reuse these slightly thicker bags at  
              least 125 times or will these bags be treated more like  
              single-use bags?  Will these types of bags change consumer  









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              habits and result in litter reduction?  Will these slightly  
              thicker plastic bags satisfy the goal of the bill, which is  
              to reduce plastic bag litter and marine debris?

            4) Why Are Paper Bags in This Bill  ?  SB 270 mandates a fee on  
              paper bags at the point of sale.  Paper bags do not pose the  
              same threats to the marine environment.  Also, unlike  
              plastic bags, paper bags are more commonly recycled and  
              contain recycled content.   If the goal of this bill is to  
              reduce plastic marine debris, why are paper bags included?

            5) Local Bag Ordinances  .  Approximately 100 local governments  
              throughout California have adopted ordinances banning  
              plastic bags such as San Francisco, San Jose, Long Beach,  
              Los Angeles County, Santa Clara County, and Alameda County.   
              Many of these cities and counties 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.  Some local  
              ordinances 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.  

           This bill does not pre-empt existing ordinances; however, it  
              does provide uniformity moving forward by pre-empting local  
              ordinances adopted after September 1, 2014.
           
            6) Recycling Market Development Revolving Loan Subaccount  .   
              CalRecycle provides money in this subaccount as a source of  
              financing to recycling-based businesses, non-profit  
              organizations, and public entities for the purpose of  
              increasing the diversion of non-hazardous solid waste from  
              California landfills and to promote market demand for  
              secondary and postconsumer materials.  Types of projects  
              typically funded include machinery and equipment, working  
              capital, real estate purchase (maximum of $1 million), real  
              estate improvement, and refinancing of onerous debt that  
              results in increased diversion.  The fund balance of this  
              subaccount generally fluctuates between $3-9 million; the  
              beginning balance for fiscal year 2014-15 was $3.3 million.   
              This bill appropriates $2 million to provide loans for the  
              creation and retention of jobs and economic activity in  









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              California for the manufacture and recycling of plastic  
              reusable grocery bags that use recycled content.  

            7) Related and Past Legislation  .  SB 405 (Padilla) in the  
              current Session is substantially similar to SB 270.   
              Generally, SB 405 prohibited grocery stores from providing  
              single-use plastic bags to consumers and requires stores to  
              make reusable bags available for purchase by customers.  SB  
              405 died on the Senate Floor.    

           SB 700 (Wolk) in the current Session would have required retail  
              establishments, as defined, to collect a fee of 5 cents for  
              every single-use carryout bag provided to a customer.  The  
              bill requires that the fees be available for grants to  
              cities and counties for local parks and local programs that  
              reduce and cleanup litter.  This bill was held in the Senate  
              Appropriations Committee.

           AB 158 (Levine) in the current Session is substantially similar  
              to SB 270.  Generally, this bill prohibits grocery stores  
              from providing single-use plastic bags to customers and  
              requires stores to make reusable bags available for purchase  
              by customers.  AB 158 did not contain a minimum fee for  
              reusable bags.  This bill was moved to the Assembly inactive  
              file by the author.  

           SB 1219 (Wolk), Chapter 384, Statutes of 2012, extended the  
              sunset of the At-Store Recycling Program requirements from  
              January 1, 2013 to January 1, 2020 and repealed the  
              provisions preempting local regulatory action related to the  
              at-store recycling program requirements.

           SB 1106 (Strickland) of 2012 prohibits the manufacture,  
              distribution, and sale of reusable bags without a warning  
              label that both specifies the need for reusable bags to be  
              cleaned and disinfected between uses and outlines the health  
              risks associated with not cleaning or disinfecting reusable  
              bags between uses.  SB 1106 failed in the Senate  
              Environmental Quality Committee April 23, 2012 (2-5).

           AB 298 (Brownley) of 2012, would have generally prohibited  
              stores from providing single-use plastic bags to customers,  
              required stores to make reusable grocery bags, as defined,  









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              available for purchase by customers, and created standards  
              for reusable bags.  AB 298 was held on the Senate  
              Appropriations Committee suspense file.

              AB 1834 (Brownley) of 2012 would have defined "reusable bag"  
              for purposes of the At-Store Recycling Program Law and would  
              have specified that on and after July 1, 2013, the  
              definition of what is a reusable bag under this bill will  
              become operative.  Between January 1, 2013 until June 30,  
              2013, the current At-Store Recycling Program Law would have  
              remained operative.  This bill would have become operative  
              only if SB 1219 (Wolk) became law.  AB 1834 was placed on  
              the Senate inactive file and died on the Senate floor.

              SB 915 (Calderon) of 2011 sets plastic bag reduction and  
              recycled content goals.  A hearing in the Senate  
              Environmental Quality Committee was canceled at the request  
              of the author.

              AB 2138 (Chesbro) of 2010 would have established recycling  
              and composting requirements for take-out food packaging,  
              including bags.  AB 2138 was held on the Assembly  
              Appropriations Committee suspense file.

              AB 1998 (Brownley) of 2010 would have repealed the at-store  
              recycling program and instead prohibited stores from  
              providing a single-use plastic carryout bag to a customer  
              and required stores to provide reusable bags for purchase or  
              recycled paper bags for a fee.  AB 1998 failed in the Senate  
              on August 31, 2010 (14-21).

              SB 531 (DeSaulnier) of 2009 would have required  
              manufacturers of plastic carryout bags to consult with  
              various entities, including the California Integrated Waste  
              Management Board (CIWMB), when developing specified  
              educational materials to encourage the reduced use or  
              recycling of those bags, and authorized CIWMB to modify  
              those materials. SB 531 was held in Assembly Natural  
              Resources Committee without further action.

              AB 68 (Brownley) of 2009 and AB 87 (Davis) of 2009 both  
              would have required a 25-cent fee on the distribution of  
              single-use carryout bags.  Both bills were held in the  









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              Assembly Appropriations Committee. 

              AB 2058 (Levine) of 2007 would have prohibited the free  
              dispensing of carryout plastic bags by a store to its  
              customers, unless the store can demonstrate to CIWMB that  
              70% of the plastic bags it dispensed had been diverted from  
              the waste stream.  AB 2058 was held in Senate Appropriations  
              Committee.

            SOURCE  :        Author  

           SUPPORT  :       None on file

            OPPOSITION  :    None on file