BILL ANALYSIS Ó SB 405 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator Jerry Hill, Chair 2013-2014 Regular Session BILL NO: SB 405 AUTHOR: Padilla AMENDED: April 2, 2013 FISCAL: Yes HEARING DATE: April 17, 2013 URGENCY: No CONSULTANT: Joanne Roy SUBJECT : SOLID WASTE: CARRYOUT BAGS SUMMARY : Existing law , under the At-Store Recycling Program (Public Resources Code §42250 et seq.) (part of the California Integrated Waste Management Act of 1989): 1) 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: a) Plastic bags provided by the store must include a label encouraging customers to return the bag to the store for recycling. b) Clearly labeled and easily accessible recycling bins for plastic bags must be provided. c) All plastic bags collected must be recycled in a manner consistent with the local jurisdiction's recycling plan. d) 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. e) The operator of the store must make reusable bags available to customers. SB 405 Page 2 2) 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. 3) Allows cities and counties to adopt, implement, and enforce local laws related to local curbside or drop-off recycling programs. 4) Authorizes a city, county, or the state to levy fines for stores in violation of this law. 5) 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. 6) Sunsets the above provisions on January 1, 2020. This bill : 1) Defines terms in the bill, including: a) "Postconsumer recycled material" as material that would otherwise be destined for solid waste disposal. b) "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. c) "Reusable grocery bag" as, on and after July 1, 2016, a bag that meets requirements specified in (2) below. d) "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 with specified SB 405 Page 3 exceptions including a bag provided by a pharmacy for a prescription purchase and 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. e) "Store" as either: 1) 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; 2) has at least 10,000 square feet of retail space and a pharmacy; or, 3) a convenience food store or foodmart. 2) Requires the following of a reusable grocery bag on and after July 1, 2016: a) able to be used a minimum of 125 times as specified; b) can be cleaned; c) have specified information visibly on the bag; d) cannot contain lead, cadmium, or any other heavy metal in toxic amounts; and, e) must be consistent with federal regulations related to recyclable claims if the bag producer claims the bag is recyclable. 3) Provides additional requirements of a reusable grocery bag if made from plastic. 4) Authorizes CalRecycle to do the following: 1) inspect and audit a reusable bag producer and requires the producer to pay for costs associated with the audit; 2) test a reusable bag for compliance with the provisions of this bill; 3) enter into an agreement with other state agencies to conduct inspections necessary for enforcement; and, 4) assess administrative civil penalties for violations of provisions of this bill. 5) Requires penalties to be deposited into the Reusable Bag Account for purposes of implementing this bill upon appropriation by the Legislature. 6) Prohibits a single-use carryout bag (i.e. paper, plastic, or other material) from being available at the point of sale to a customer: a) On and after January 1, 2015, at either a full-line SB 405 Page 4 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. 7) Requires a store, on and after July 1, 2016, to make available a reusable grocery bag at the point of sale. 8) Authorizes a store to make available a recycled paper bag for purchase at the point of sale. 9) Requires a store to provide a customer participating in the California's Special Supplemental Food Program for Women, Infants, and Children with a reusable grocery bag or recycled paper bag at no cost. 10)Authorizes a store to make a compostable bag (i.e., meeting certain compostable and other requirements) available for purchase. 11)Requires CalRecycle to submit a report to the Legislature by January 1, 2017, regarding the effectiveness of the proposed law, and includes information on violations, data to evaluate pollution reduction, evaluation of reusable bag requirements, and recommendations to further encourage the use of reusable grocery bags. 12)Authorizes a city, county, city and county, or the state to impose civil liability of $500 for the first violation of the proposed law, $1,000 for the second violation, and $2,000 for each subsequent violation. Collected penalties must be paid to whichever agency brought the action. Provides that these remedies are not exclusive, but are in addition to remedies available under the state's Unfair Competition Law. 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 5% of single-use plastic bags are recycled. Plastic bags cause litter, slow sorting SB 405 Page 5 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 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) Local bag ordinances . Approximately 70 local governments throughout California have adopted ordinances banning plastic bags including San Francisco, San Jose, Long Beach, Los Angeles County, Santa Clara County, Alameda County and SB 405 Page 6 others. Most 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. Concern has been raised that this bill would preempt local ordinances banning plastic bags. The legal test for determining if state law preempts local regulation consists of deciding whether the regulation in question is of statewide concern or a municipal affair. If a regulation is a matter of statewide concern, then it is not a municipal affair, and therefore the regulation is considered to conflict with state law. Determining "statewide concern" entails a three-prong test. A local regulation is preempted if the court finds one of the following: 1) the ordinance duplicates state law; 2) the ordinance contradicts a state statute that expressly occupies the field; or, 3) the state occupies the legislative area by implication. As noted by Mendocino Solid Waste Management Authority, there is concern that "this bill would open the door to credible litigation against local ordinances on the theory of 'implied preemption' because they 'fully occupy the field' of retail bags." In addition, California courts have developed tests for determining when local regulations are not preempted. One approach is known as the balancing of state and local interests. The balancing test requires the local regulation be shown to reflect a strong local interest which will prevail when balanced against a state regulation which it conflicts. In the case of single-use carryout bags, there may be circumstances in individual communities that warrant stricter local regulations than state law. This bill provides uniformity throughout the state, but whether it would preempt each and every local ordinance pertaining to single-use carryout bags is debatable. Is it the author's intent that this bill preempts local regulations? If so, it should be explicitly stated in the bill. 4) No corresponding litter and pollution program funded by SB 405 Page 7 fees . Although, SB 405 authorizes a store to make a recycled paper bag available for purchase at the point of sale, this bill does not provide a funding mechanism to deal with litter and pollution, as well as stormwater, sewer and water treatment facility problems associated with bag debris. Some previous legislation included fees to be placed on bags to directly address those problems. SB 405, like AB 298 (Brownley) of 2012 and AB 1998 (Brownley) of 2010, does not establish a funding mechanism for these programs. On the other hand, some local governments place requirements on how stores may expend the money collected from bag purchases. For example, Los Angeles County allows 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. Should the stores use the funds generated by fees on bags to address single-use bag problems? 5) Reusable bags are not perfect . Concern has been raised that reusable grocery bags may have public health implications. For example, reusable bags can harbor bacteria such as coliform bacteria, but washing the reusable bags can eliminate 99.9% of bacteria. However, a 2011 study examining reusable bags in California and Arizona showed that 97% of people reported that they never wash their bags. In addition, a 2012 study, by Jonathan Klick and Joshua Wright, from University of Pennsylvania and George Mason University, respectively, on the public health impact of plastic bag bans showed that emergency-room admissions related to E. coli infections increased in San Francisco after the ban compared to nearby counties that did not show the increase. The San Francisco ban was also associated with increases in salmonella and other bacterial infections. Similar effects were found in other California local jurisdictions that adopted similar ordinances. SB 405 Page 8 SB 405 addresses such public health implications by requiring cleaning/care instructions on the reusable bag. 6) Related legislation . SB 700 (Wolk) requires grocery stores and restaurants to collect a charge of $0.05 for each single-use carryout bag provided to a customer and requires the funds collected to be allocated to reducing and cleaning up litter in local parks and programs. SB 700 is double-referred to Senate Committees on Natural Resources & Water and Environmental Quality. SB 700 passed out of Committee on Natural Resources & Water on April 9, 2013 (6-2) with amendments. SB 405 and SB 700 are incompatible with one another. SB 405 bans single-use plastic bags in grocery stores but authorizes paper bags to be sold and allows the store to retain the fee. SB 700 requires a fee on both plastic and paper single-use bags in grocery stores and restaurants, and requires the revenue to be used for local public purposes. If both SB 405 and SB 700 are enacted, they will directly conflict with each other. The Committee may wish to consider supporting only one policy and move that measure forward. AB 158 (Levine) is similar to SB 405 and generally prohibits grocery stores from providing single-use plastic bags to customers, and requires stores to make reusable grocery bags available for purchase by customers. AB 158 passed out of Assembly Natural Resources Committee (6-3) on April 1, 2013. 7) Past legislation . 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 SB 405 Page 9 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, 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 SB 405 Page 10 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 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 : Azul Bag It! California Coastal Coalition California Coastkeeper Alliance Californians Against Waste Central Contra Costa Solid Waste Authority City of Palo Alto City of Sacramento City of San Francisco Los Angeles County Integrated Waste Management Committee/Integrated Waste Management Task Force Contra Costa Clean Water Program County of San Francisco Environment California Green Chamber of Commerce Green Sangha Green Vets Los Angeles Heal the Bay La Mode Verte Productions Marin County Hazardous & Solid Waste Management Joint Powers Authority SB 405 Page 11 Napa Valley CanDo Natural Resources Defense Council Northern California Recycling Association Pacifica Environmental Family Planning & Conservation League plasticbaglaws.org Santa Monica High School Save Our Shores Seventh Generation Advisors Sierra Club Surfrider Foundation The 5 Gyres Institute Turtle Island Restoration Network United Food & Commercial Workers Western States 2 Individuals OPPOSITION : 99[ Outlet Achasi's Mini Market Advance Polybag, Inc. American Forest and Paper Association Angela's Drive In Dairy Arctic Hot Spot Azusa Council Member Angel Carrillo Bell Gardens Chamber of Commerce Bell Gardens Mayor Sergio Infanzon Brianna's Miss Store Cities Restaurant Clear Skies Enterprises Congress of Racial Equality of California Crown Poly, Inc. (and 206 employees of Crown Poly) Drive In Rancho Market Eagle Portables EDD Elkay Plastics Co., Inc. ETS First Store 989 Fiscal Credit Union GDS Institute Hilex Poly Co. Hollywood Work Source Center La Alicia Meat Market La Favorita Bakery SB 405 Page 12 La Princesita Market Linnie's Pet Pampering Maledzing Shoppe Mendocino Solid Waste Management Authority Noble Affair Oldtimers Foundation Orange County Adult Achievement Center Pasteleria Tres Leches Pico Rivera Mayor Gustavo Camacho Pink Planet Aid REAA So Cal Burgers South Gate Chamber of Commerce St. Louis Drug Co. Superbag Operating, Ltd. Telacu Teresita's Terminix The Cantero Group The Voice Media Third Baptist Church of San Francisco, Inc. U.S. Black Chamber, Inc. Ugly Cherry Cream Nut Pie Unique Dollar West Angeles Church of God in Christ 10 Individuals