BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 45


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          ASSEMBLY THIRD READING


          AB  
          45 (Mullin)


          As Amended  January 21, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Local           |6-3  |Gonzalez, Cooley,     |Maienschein, Alejo, |
          |Government      |     |Gordon, Holden,       |Chiu                |
          |                |     |Linder, Waldron       |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Environmental   |4-2  |Alejo, Gonzalez,      |Dahle, Gallagher    |
          |Safety          |     |McCarty, Ting         |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |12-0 |Gomez, Bloom,         |                    |
          |                |     |Bonilla, Bonta,       |                    |
          |                |     |Calderon, Daly,       |                    |
          |                |     |Eggman, Eduardo       |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Quirk, Weber, Wood    |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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                                                                      AB 45


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          SUMMARY:  Requires the California Department of Resources  
          Recycling and Recovery (CalRecycle) to adopt one or more model  
          ordinances for a comprehensive program for the collection of  
          household hazardous waste (HHW), and allows a local jurisdiction  
          to adopt one of the model ordinances.  Specifically, this bill:   



          1)Requires CalRecycle, in consultation with affected industries  
            and stakeholders, to adopt one or more model ordinances for a  
            comprehensive program for the collection of HHW for adoption  
            by any local jurisdiction that provides for the residential  
            collection and disposal of solid waste.  


          2)Requires CalRecycle, upon adoption of the model ordinance or  
            ordinances, to notify the public by positing the ordinances on  
            their Internet Web site.   


          3)Allows, after CalRecycle complies with the posting  
            requirements in 2) above, a local jurisdiction that proposes  
            to enact an ordinance governing the collection and diversion  
            of HHW to adopt one of the model ordinances.  


          4)Requires CalRecycle to determine whether an appropriate  
            nonprofit organization has been created and funded for the  
            purpose of making grants to local governments to assist with  
            both of the following activities:


             a)   Educate residents of communities on the existence of HHW  
               disposal programs and how to use them; and,


             b)   Defray the cost of components of local government HHW  
               programs.  









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          5)Requires CalRecycle, in making the determination in 4) above,  
            to consider the following:


             a)   If the nonprofit organization has, at the time of the  
               determination, a minimum of $5 million dedicated to grants  
               to local governments for the purposes described in 4)  
               above.  


             b)   If the nonprofit organization will have sufficient  
               funding to allocate grants to local governments throughout  
               the state for five years;


             c)   If the composition of the nonprofit's board of directors  
               is sufficiently diverse and experienced to appropriately  
               consider grant applications that will positively impact  
               efforts to improve the disposal of HHW; and,


             d)   If the nonprofit organization has appropriate criteria  
               for considering grant applications.  


          6)Provides that this bill is applicable only to local  
            jurisdictions that provide for the residential collection and  
            disposal of solid waste.  


          7)Repeals the provisions of this bill on January 1, 2019, if  
            CalRecycle does not make the determination that an appropriate  
            nonprofit organization exists, as specified in 4) and 5)  
            above, by December 31, 2018.  


          8)Defines the following terms:









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             a)   "Comprehensive program for the collection of HHW" to  
               mean a local program that may include, but is not limited  
               to, the following components:


               i)     Utilization of locally sponsored collection sites;


               ii)    Scheduled and publicly advertised drop off days;


               iii)   Door-to-door collection programs;


               iv)    Mobile collection programs;


               v)     Dissemination of information about how consumers  
                 should dispose of the various types of HHW; and,


               vi)    Education programs to promote consumer understanding  
                 and use of the local components of a comprehensive  
                 program.


             b)   "HHW" includes, but is not limited to, the following:


               i)     Automotive products, including, but not limited to,  
                 antifreeze, batteries, brake fluid, motor oil, oil  
                 filters, fuels, wax, and polish;


               ii)    Garden chemicals, including, but not limited to,  
                 fertilizers, herbicides, insect spray, pesticides, and  
                 weed killers;









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               iii)   Household chemicals, including, but not limited to,  
                 ammonia, cleaners, strippers, and rust removers;


               iv)    Paint products, including, but not limited to,  
                 paint, caulk, glue, stripper, thinner, and wood  
                 preservatives and stain;


               v)     Consumer electronics, including, but not limited to,  
                 televisions, computers, laptops, monitors, keyboards, DVD  
                 and CD players, VCRs, MP3 players, cell phones, desktop  
                 printers, scanners, fax machines, computer mice,  
                 microwaves, and related cords;


               vi)    Swimming pool chemicals, including, but not limited  
                 to, chlorine tablets and liquids, pool acids, and  
                 stabilizers;


               vii)   Household batteries, defined as batteries that  
                 individually weigh two kilograms or less of mercury,  
                 alkaline, carbon-zinc, or nickel-cadmium, and any other  
                 batteries typically generated as household waste,  
                 including, but not limited to, batteries used to provide  
                 power for consumer electronic and personal goods often  
                 found in a household;  


               viii)  Fluorescent tubes and compact fluorescent lamps;  


               ix)    Mercury-containing items, including, but not limited  
                 to, thermometers, thermostats, and switches;  


               x)     Home-generated sharps waste, as defined in existing  








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                 law; and,  


               xi)    Home-generated pharmaceutical waste, defined as a  
                 prescription or nonprescription drug, as specified, that  
                 is a waste generated by a household or households.   
                 "Home-generated pharmaceutical waste" shall not include  
                 drugs for which producers provide a take-back program as  
                 a part of a United States Food and Drug Administration  
                 managed risk evaluation and mitigation strategy pursuant  
                 to Section 355-1 of Title 21 of the United States Code,  
                 or waste generated by a business, corporation, limited  
                 partnership, or an entity involved in a wholesale  
                 transaction between a distributer and a retailer.  


          9)Makes a number of findings and declarations.  


          EXISTING LAW:  


          1)Requires cities and counties to prepare, adopt, and submit to  
            CalRecycle an HHW Element plan which identifies a program for  
            the safe collection, recycling, treatment, and disposal of  
            hazardous wastes that are generated by households within the  
            jurisdiction and provides a specific time frame for achieving  
            these objectives.  
          2)Requires, under the California Integrated Waste Management Act  
            of 1989, each city or county to divert 50% of solid waste from  
            landfill disposal or transformation on and after January 1,  
            2000.  Establishes a statewide policy goal that not less than  
            75% of solid waste be source reduced, recycled, or composted  
            on and after January 1, 2020.  


          3)Requires CalRecycle and the Department of Toxic Substance  
            Control (DTSC) to jointly maintain a database of all HHW  
            collection events, facilities, and programs within the state  








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            and make that information available to the public upon  
            request.


          4)Requires the California Integrated Waste Management Board to  
            coordinate with DTSC to develop and implement a public  
            information program to provide uniform and consistent  
            information on the proper disposal of hazardous substances  
            found in and around homes, and to assist the efforts of  
            counties required to provide HHW collection, recycling, and  
            disposal programs.  


          5)Requires CalRecycle, upon appropriation by the Legislature, to  
            distribute grants to cities, counties, or other local agencies  
            with the responsibility for solid waste management, and for  
            local programs to help prevent the disposal of hazardous  
            wastes at disposal sites, which include but are not limited to  
            programs that expand or implement HHW programs.  


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill contains increased annual costs to  
          CalRecycle in the range of $200,000 to $300,000 (special fund).   



          COMMENTS:  


          1)Bill Summary.  This bill requires CalRecycle, in consultation  
            with affected industries, to adopt one or more model  
            ordinances for a comprehensive program for the collection of  
            HHW for adoption by a local jurisdiction that provides for the  
            residential collection and disposal of solid waste.  Local  
            jurisdictions proposing to enact an ordinance to govern the  
            collection and diversion of HHW may adopt one of the model  
            ordinances after CalRecycle has posted the model ordinances on  
            its Web site.  Additionally, this bill requires CalRecycle to  








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            determine if an appropriate nonprofit organization has been  
            created and funded to make grants to local governments for  
            specified activities relating to HHW programs.  This bill  
            requires CalRecycle to consider a list of factors in making  
            the determination about the nonprofit organization.  The  
            provisions of this bill will be repealed on January 1, 2019,  
            if CalRecycle does not make the determination that an  
            appropriate nonprofit organization exists by December 31,  
            2018.  This bill is an author-sponsored measure.


          2)Background on HHW.  HHW is hazardous waste commonly generated  
            by households and includes such ubiquitous items as batteries,  
            pesticides, electronics, fluorescent lamps, used oil,  
            solvents, and cleaners.  If these products are handled or  
            disposed of incorrectly, they can pose a threat to health and  
            safety and the environment.  When these products are  
            discarded, they become "household hazardous waste."  In  
            California, it is illegal to dispose of HHW in the trash, down  
            the drain, or by abandonment.  HHW needs to be disposed of  
            through a HHW program.  


            Cities and counties are required to prepare, adopt, and submit  
            to CalRecycle, a HHW Management Element Plan, which identifies  
            a program for the safe collection, recycling, treatment, and  
            disposal of HHW.  The Element Plan specifies how HHW generated  
            within the jurisdiction must be collected, treated, and  
            disposed.  Each jurisdiction is required to prepare and  
            implement plans to reduce and safely collect, recycle, treat,  
            and dispose of HHW and provides a specific time frame for  
            achieving these objectives.  While there are many different  
            approaches for the collection and management of HHW, all are  
            permitted by DTSC and most are operated by local  
            jurisdictions.  Some private operators operate programs under  
            contract with local jurisdictions, including curbside and  
            door-to-door collection.  










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          3)Author's Statement.  According to the author, "State law has  
            loosely regulated HHWs for approximately 25 years.  AB 45 aims  
            to coordinate with affected industries like local governments,  
            producers of HHW products, and CalRecycle to adopt model  
            ordinances for a comprehensive program for the collection of  
            HHW.  Local governments have the option to choose whether or  
            not to use the model ordinances listed by CalRecycle.  In  
            addition, CalRecycle will determine whether or not an  
            appropriate nonprofit organization has been created and funded  
            for the purpose of making grants to local governments.  This  
            non-profit will be created to assist in educating residents  
            about HHW disposal programs and how to use them.  In addition,  
            the Department will ensure that product manufacturers  
            contribute a minimum of five million dollars to the non-profit  
            for defraying the cost of components of local government HHW  
            programs."  


          4)Related Legislation.  AB 2371 (Mullin) of 2014, as heard by  
            the Assembly Local Government Committee, would have required  
            each jurisdiction, no later than January 1, 2016, to review  
            its HHW Element to determine its effectiveness in the  
            collection, recycling, treatment, and disposal of HHW, and  
            would have required CalRecycle, on or before January 1, 2017,  
            to submit a report to the Legislature that analyzes the  
            effectiveness of the state's HHW management system.  AB 2371  
            was later amended to deal with a different subject matter.  


            AB 1159 (Gordon) of 2015 would have established a limited-term  
            product stewardship program for home-generated medical sharps  
            and household batteries.  AB 1159 was held in the Assembly  
            Appropriations Committee. 


          5)Policy Considerations.  The Legislature may wish to consider  
            the following:  










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             a)   Nonprofit Organization.  This bill is contingent on a  
               determination made by CalRecycle on whether an appropriate  
               nonprofit organization has been created and funded for the  
               purpose of making grants to local governments.  Under this  
               bill, CalRecycle is required to consider a list of factors  
               in making this determination, which includes whether the  
               nonprofit organization has $5 million and if the nonprofit  
               organization has sufficient funding to allocate to local  
               governments for five years.  The Legislature may wish to  
               consider that, while CalRecycle must consider certain  
               factors, there are no requirements in this bill to require  
               that a specified amount of funding is distributed.


               The California State Association of Counties (CSAC),  
               opposed unless amended, argues that "there is a lack of  
               criteria, specific qualifications, or process as to how  
               these non-profits would operate.  The bill arbitrarily  
               identifies the amount of five million dollars as a  
               sufficient amount for grants to local governments.  HHW  
               management is a very expensive process as those toxic  
               products require very specific handling.  We question how  
               this number was deemed sufficient."  


               In a letter to the author, the Advanced Medical Technology  
               Association, Biotechnology Industry Organization, Consumer  
               Healthcare Products Association, and the Pharmaceutical  
               Research and Manufacturers of America state "the  
               undersigned associations commit that following the  
               enactment of AB 45 in a form that our member companies  
               believe will ensure a strong commitment by local government  
               to a comprehensive state-wide approach to disposal of  
               (HHW), we will facilitate the establishment and funding of  
               an appropriate non-profit entity dedicated to providing  
               education to California consumers about the appropriate  
               handling and disposal of our industries' products.  This  
               entity, which we propose to be funded by the industry  
               participants represented by the signatories of this letter,  








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               as well as other impacted groups, would be funded at the  
               amount of $5 million over a 5-year period."  


             b)   Current Programs and Definitions.  The Legislature may  
               wish to consider how current programs and definitions  
               pertaining to the management of HHW will interact with the  
               provisions in this bill.  


               i)     Grant Funding.  CSAC states, "CalRecycle currently  
                 runs a HHW grant program.  There are no findings in the  
                 bill indicating why such a move could, or would be an  
                 improvement over the current system." 


               ii)    HHW Element Plan.  According to CSAC, "jurisdictions  
                 across the state have developed comprehensive ordinances  
                 to collect and manage HHW, each tailored to the needs of  
                 their respective community.  We question the need for a  
                 general HHW model ordinance when locals are required to  
                 have them in place already.  In addition, there is little  
                 guidance within the legislation to indicate the types of  
                 ordinances that might be developed."  


               iii)   Definitions.  CSAC argues that "the bill includes a  
                 new, broader definition of HHW, which includes  
                 home-generated pharmaceutical waste, such as prescription  
                 or non-prescription drugs.  This would ban the disposal  
                 of these drugs without a comprehensive plan in place to  
                 collect this material.  We believe that a specific  
                 collection model is necessary for these types of  
                 materials, as a typical local collection event, or  
                 curbside program is not appropriate for dangerous  
                 substances.  CSAC supports a product stewardship model  
                 for pharmaceutical waste, which incentivizes the  
                 industries that profit from these products to have a  
                 significant stake in their proper management and  








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                 disposal."  


               iv)    Shared Responsibility.  Product Stewardship and  
                 Extended Producer Responsibility (EPR) refers to a policy  
                 model that includes manufacturers in the end-of-life  
                 management for products that they produce.  The  
                 California Product Stewardship Council states that EPR is  
                 a strategy to place a shared responsibility for  
                 end-of-life product management on all entities involved  
                 in the product chain, instead of the local governments  
                 and taxpayers, while encouraging product design changes  
                 that minimize a negative impact on human health and the  
                 environment at every stage of a product's lifecycle."  


                 CSAC argues that "the role of industry, or other  
                 stakeholder participation outlined in the bill lacks  
                 critical detail."  


          6)Arguments in Support.  Supporters argue that industry is  
            considering approaches that would support consumer education  
            and local governments in the implementation of comprehensive  
            programs with the goal to increase compliance with the State's  
            goals of diverting HHW from the waste stream.  Supporters  
            believe such approaches complement this bill's intent to build  
            on the residential collection system to ensure consumer  
            convenience and enhance participation rates without mandates  
            on local governments.  


          7)Arguments in Opposition.  Santa Barbara County, in opposition,  
            states "We believe that retailers and manufacturers should  
            participate in the end-of-life management of the products they  
            put on the market.  We are disappointed that AB 45 moves away  
            from this shared responsibility approach and instead continues  
            to make local jurisdictions solely responsible for collecting  
            HHW.  The recent amendments mention a non-profit organization  








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            that will provide grants to jurisdictions for HHW programs,  
            but we are not clear how this non-profit organization will be  
            formed or how the funds will be generated."  




          Analysis Prepared by:                                             
                          Misa Lennox and Debbie Michel / L. GOV. / (916)  
                          319-3958                                   FN:  
          0002600