BILL ANALYSIS Ó AB 1159 Page 1 Date of Hearing: May 20, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1159 (Gordon) - As Amended April 21, 2015 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Environmental Safety and Toxic | |6 - 0 | | |Materials | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill establishes a product stewardship program for home-generated medical sharps and household batteries until January 1, 2024, and requires CalRecycle to adopt regulations by AB 1159 Page 2 January 1, 2017, as specified. Specifically, this bill: 1) Requires CalRecycle, by March 1, 2017, to appoint a stakeholder advisory committee for each to provide technical feedback, and requires the stakeholder advisory committee to report to CalRecycle as specified. 2) Requires a product stewardship organization to submit a product stewardship plan to CalRecycle by July 1, 2017. Provides time limits and specified requirements of CalRecycles' review and approval process. Provides any product stewardship plan not approved by January 1, 2018 is not in compliance. 3) Requires a product stewardship organization submitting a product stewardship plan to pay CalRecycle an annual administrative fee, which shall be set at an appropriate amount to cover CalRecycle's administrative costs. Creates the Product Stewardship Account and Product Stewardship Penalty Subaccount. 4) Allows CalRecycle or a court to assess a civil penalty on any person in violation of the provisions of this bill. 5) Requires each product stewardship organization to annually report to CalRecycle on the activities carried out pursuant to the product stewardship plan. Requires CalRecycle, by July 1, 2023, to report to the Legislature with evaluations of the product stewardship organizations, financial information and overall cost savings. 6) Sunsets the provisions of this bill on January 1, 2024. AB 1159 Page 3 FISCAL EFFECT: Ongoing CalRecycle staffing costs of $385,000 and one-time costs of $8,000 (Product Stewardship Account/ Waste Management Account). COMMENTS: 1)Rationale. According to the author, this bill establishes the Product Stewardship Pilot Program, to require producers and product stewardship organizations of home-generated sharps waste or household batteries to develop and implement a product stewardship plan. The author further states, both of these products are widely used, lack convenient disposal and recycling opportunities for consumers, and have significant and indisputable end-of-life impacts. This bill sets performance goals for the disposal and recycling of both products. 2)Background. In California, household batteries are classified as universal waste, which include materials that DTSC has determined are hazardous waste that are ubiquitous and contain mercury, lead, cadmium, copper, or other substances hazardous to human and environmental health. Since 2006, universal waste has been prohibited from disposal in solid waste landfills. Currently, local household hazardous waste collection programs are the primary outlet for proper management of universal waste and other hazardous wastes generated by households, including batteries. Cost estimates to manage waste batteries average around $800 per ton (with some costing up to $2,700 per ton), amounting to tens of millions of dollars each year. AB 1159 Page 4 An estimated one million Californians inject medications outside traditional health care facilities, which generate approximately 389 million sharps each year. The numbers of patients using injectable medications will continue to grow because it is an effective delivery method. The most common home use of sharps is to manage diabetes. Other reasons to home-inject include multiple sclerosis, infertility, migraines, allergies, hemophilia, and medications for pets. California was one of the first states to address the problems of sharps with the passage of SB 1305 (Figueroa), Chapter 64, Statutes of 2006 to prohibit the disposal of medical sharps in California's landfills. Although illegal, most used needles still end up in household trash and pose a significant risk of injury and/or infection to custodial workers and solid waste employees. 3)Product Stewardship/Expanded Producer Responsibility (EPR). Product stewardship refers to a policy model that includes manufacturers in the end-of-life management for products that they produce. According to the California Product Stewardship Council, EPR is a strategy to place a shared responsibility for end-of-life product management on all entities involved in the product chain. Successful EPR programs result in products that are better designed for reuse and recycling, make recycling more convenient for consumers, reduce illegal disposal of hazardous materials, and encourage the use of recycled materials in new products. In 2007, CalRecycle adopted strategic directives to guide AB 1159 Page 5 solid waste management in California. Strategic Directive 5: Producer Responsibility states that "it is a core value of [CalRecycle] that producers assume the responsibility for the safe stewardship of their materials in order to promote environmental sustainability." 4)Previous Legislation. Similar legislation, AB 2284 (Williams), would have required producers of non-rechargable household batteries to develop and implement a plan to collect and manage batteries sold in the state. This bill was significantly amended in this committee to create three battery recycling pilot projects and moved to the Senate but was never heard in the Senate Environmental Quality Committee. AB 403 (Stone, 2013) would have required businesses that sell medical sharps to establish a product stewardship plan for the end of life management of home-generated medical sharps. At the request of the author, his bill remained in this Committee without a hearing. 5)Related Legislation. AB 45 (Mullin), also on today's agenda, requires jurisdictions that provide for residential collection and disposal of solid waste to increase the collection and diversion of household hazardous waste. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081 AB 1159 Page 6