BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1447


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          Date of Hearing:  May 20, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1447 (Alejo) - As Amended May 5, 2015


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:


          This bill establishes minimum recycled content standards for  
          polyethylene terephthalate (PET) food and beverage packaging  
          manufactured or filled in the state.  Specifically, this bill:  








                                                                    AB 1447


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          1)Defines "PET plastic packaging" to mean food, drink, or  
            beverage packaging material that consists primarily of  
            polyethylene terephthalate and used to contain food or  
            beverages.  


          2)On and after July 1, 2016, requires each manufacturer of PET  
            plastic packaging for sale in the state to include a minimum  
            of 10% of postfilled PET plastic in the plastic packaging that  
            it manufactures, or any empty plastic packaging,  imported  
            into the state to be filled with food or drink in the state  
            contain a minimum of 10% .


          3)Specifies annual reporting requirements to CalRecyle beginning  
            January 1, 2017, and annually thereafter.


          4)Provides violations of this requirement are subject to fines  
            and civil penalties of $1,000 per violation.


          FISCAL EFFECT:


          Increased annual costs to CalRecyle of $761,000 and 8PYs to  
          implement a new monitoring, tracking and enforcement program  
          (Waste Management Fund).


          COMMENTS:


          1)Purpose.  According to the author, in order to increase the  
            amount of plastic recycling in-state, meet consumers' basic  
            expectations for buying recycled materials, and create parity  
            with other container minimum recycling laws, AB 1447 proposes  








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            to create a minimum recycled content standard for all PET  
            containers sold in the state at 10%.  


          2)Backgroud.  PET is the most common plastic used in food and  
            beverage packaging, including bottled water and soda.  
            According to CalRecycle data, 43% of Bottle Bill containers  
            are PET, making it the most common beverage packaging material  
            in California.  



          Several plastic food and drink manufacturers located in  
            California have received non-objection letters from the FDA  
            and comply with the state's existing recycled content  
            requirements for rigid plastic packaging containers.  Several  
            beverage manufacturers also include postfilled content in  
            their packaging.  For example, Arrowhead and Nestle bottled  
            water both report a 50% recycled content rate; Pepsi reports  
            10% recycled content; and, Naked Juice reports that their  
            bottles are made from 100% recycled content.  

          California has seven reclaimers accepting plastic for washing  
            and producing recycled flake or pellets and 30 manufacturers  
            that use recycled plastic to manufacture new products.  While  
            there has been significant growth in the use of recycled  
            plastic in California, the vast majority of recycled plastic  
            is sent overseas.  










          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  








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          319-2081