BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                SB 700
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Jerry Hill, Chair
                              2013-2014 Regular Session
                                           
           BILL NO:    SB 700
           AUTHOR:     Wolk
           AMENDED:    April 15, 2013
           FISCAL:     Yes               HEARING DATE:     April 17, 2013
           URGENCY:    No                CONSULTANT:       Joanne Roy
            
           SUBJECT  :    NATURAL RESOURCES:  PARKS:  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.










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           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  establishes the Local Environmental Enhancement Act,  
           which includes the following: 

           1) Establishes the Local Environmental Enhancement Fund  
              requiring monies in the fund to be expended by the Natural  
              Resources Agency upon appropriation by the Legislature for  
              purposes of this act.

           2) Requires the Natural Resources Agency to issue grants to  
              cities and counties for local parks and programs for  
              purposes of reducing and cleaning up litter.

           3) Requires the grants be used for specified purposes,  
              including operating and maintenance costs, park  
              acquisitions such as parks in disadvantaged communities,  
              protecting and restoring park cultural and historical  
              resources, local park improvement or rehabilitation  
              projects, litter abatement and cleanup programs.

           4) Provides that a local government, which has an ordinance  
              stating that the bag tax imposed pursuant to this act does  
              not apply to that local jurisdiction, may not be awarded  
              such a grant.









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           5) Prohibits a local government from applying for a grant  
              amount that is more than the total revenue generated in  
              that local jurisdiction by the bag tax.

           6) Defines "retail establishment" as a business that sells  
              food for consumption on or off the premises or a business  
              that sells beer, wine, or distilled spirits for consumption  
              off the premises where alcohol is sold.

           7) Defines "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 and that is not a reusable  
              grocery bag.

           8) Defines "reusable grocery bag" as a bag made of cloth or  
              other machine washable fabric that has handles or a durable  
              plastic bag with handles that is at least 2.25 mils thick,  
              contains at least 20% postconsumer recycled material and is  
              designed for multiple uses.

           9) Requires a retail establishment to charge $0.05 for a  
              single-use carryout bag to a customer.

           10)Requires the retail establishment to retain $0.005 of each  
              bag charge.

           11)Authorizes the retail establishment to retain an additional  
              $0.005 if it meets specified requirements such as crediting  
              the consumer at least $0.05 for each carryout bag provided  
              by the consumer for packaging his/her purchases at the time  
              of sale.

           12)Requires the Board of Equalization to collect the  
              single-use carryout bag charges, adopt regulations related  
              to reporting and transmitting the charges, and track  
              revenues in the Local Environmental Enhancement Fund.

           13)Provides that the act does not preempt local governments  
              from adopting laws related to single-use carryout bags.

            COMMENTS  :










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            1) Purpose of Bill  .  According to the author, of the billions  
              of single-use shopping bags annually used in this state,  
              many of the bags are improperly disposed, resulting in  
              environmental harm and visual blight.  The goals of SB 700  
              are to: reduce use of single-use shopping bags, both paper  
              and plastic; use tax revenues to achieve an environmental  
              purpose; allow local community choice to opt out of a  
              statewide program or to design their own; and, retain  
              consumer choice to use reusable bags or pay a tax on  
              single-use plastic or paper bags.

           The author believes that SB 700 could generate approximately  
              $100-200 million annually and reduce single-use carryout  
              bags in the state by 70-80%.

            2) Background .  The use of single-use carryout bags, whether  
              they be plastic, paper, or biodegradable, have negative  
              effects on the environment, including litter, solid waste  
              generation and effects on wildlife.  Single-use paper bags  
              have been found to result in greater greenhouse gas  
              emissions, atmospheric acidification, water consumption,  
              and ozone production than single-use plastic bags.  

           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  









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              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  
              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.  

           This bill does not preempt local governments from adopting  
              their own ordinances related to single-use carryout bags.   
              SB 700 authorizes local governments to adopt ordinances to  
              not have this bill's bag tax imposed in a local  
              jurisdiction, but with the caveat that those local  
              jurisdictions that choose to do so are ineligible for  
              grants pursuant to this act.

            4) Reducing single-use bag consumption, but for how long  ?  The  
              author notes that this bill is based on successful programs  
              in Washington, D.C. and elsewhere that use collected  
              fees/taxes on bags to achieve an environmental purpose.   
              The Washington, D.C. Council created the Anacostia River  
              Cleanup and Protection Act of 2009 which imposes a $0.05  
              tax on paper and plastic grocery bags which reduced bag  
              consumption significantly, with estimates ranging between  
              67-80% over a couple of years.  Fiscal Year 2011 was the  
              first full budget cycle for the D.C.'s bag tax.  According  
              to the District's chief financial officer, the city  
              collected $1.8 million in 2011 from the tax and $1.6  
              million in 2012 which would indicate a reduction in the  
              consumption of bags for the first two years.

              However, concern has been raised that such a program may  
              have a "rebound effect" experienced by other governments  
              that levy a bag tax - meaning that although there may be an  









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              initial decrease in single-use bag consumption, the number  
              of bags consumed may reverse and increase after the initial  
              shock of the tax wears off.  

              For example, in 2002 Ireland established a ?15-cent tax per  
              plastic grocery bag.  Annual consumption of bags initially  
              dropped 94% from 328 bags to 21 bags per capita.  However,  
              annual consumption increased to 33 bags per capita by 2007.  
               To address the uptrend, the government raised the bag tax  
              to ?22-cents in July 2007.  Consumption fell to 26 bags per  
              capita the same year and decreased further to18 bags per  
              capita by 2010.

              Similarly, Italy enacted a tax of ?13-cent per bag in 2002.  
               Annual consumption fell from 1.3 billion bags to 20  
              million bags the next year.  However, bag consumption  
              subsequently bounced back to 140 million bags, and like  
              Ireland, Italy raised the tax to ?22-cents per bag in 2007.

              Is it reasonable to consider that a similar rebound effect  
              may be in store for California should SB 700 be enacted?  

            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, Jonathan Klick and Joshua Wright, from University  
              of Pennsylvania and George Mason University, respectively,  
              did a more recent study on the public health impact of  
              plastic bag bans and found 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.

           If one of the goals of this bill is to increase the use of  









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              reusable bags, perhaps increasing people's awareness on  
              proper use and care of the reusable bags, like washing  
              them, would be beneficial.

            6) Double-referral  .  SB 700 is double-referred to the Senate  
              Committees on Natural Resources & Water and Environmental  
              Quality.  SB 700 passed the Senate Natural Resources  
              Committee on April 9, 2014 (6-2).

            7) Related legislation  .  SB 405 (Padilla) prohibits stores, as  
              defined, from providing single-use plastic bags to  
              customers, requires stores to make available for purchase  
              reusable grocery bags, and authorizes stores to make  
              available for purchase recycled paper bags.  

           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.  
            
            8) Previous 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,  









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              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,  
              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  









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              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 the 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  :        California Parks and Recreation Society  

           SUPPORT  :       None on file 

           OPPOSITION  :    None on file