BILL ANALYSIS Ó AB 1447 Page 1 Date of Hearing: May 20, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1447 (Alejo) - As Amended May 5, 2015 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|6 - 3 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 AB 1447 Page 3 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) AB 1447 Page 4 319-2081