BILL ANALYSIS Ó
AB 2153
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Date of Hearing: May 18, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2153 (Cristina Garcia) - As Amended April 14, 2016
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|Policy |Environmental Safety and Toxic |Vote:|4 - 1 |
|Committee: |Materials | | |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill establishes the Lead-Acid Battery Recovery and
Recycling Act to require mandatory collection and recycling of
lead-acid batteries through the use of deposits and refunds.
Specifically, this bill:
1)Requires a qualified industry association, by July 1, 2017, to
establish a lead-acid battery recycling organization (LABRO),
as defined, to develop and administer the program. Requires
the director of CalRecycle to certify the LABRO and appoint an
advisory committee comprised of specified representatives to
advise the LABRO.
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2)Requires each manufacturer, retailer and recycler to register
with the LABRO by January 1, 2018. Prohibits the sale or
distribution of lead-acid batteries after January 1, 2019,
unless the retailer, manufacturer or recycler is in compliance
with the bill.
3)Requires the LABRO to develop and submit a specified recycling
plan and budget (to be updated annually) to CalRecyle on or
before July 1, 2018. Requires LABRO to reimburse CalRecyle
for incurred administrative costs.
4)Requires the LABRO to establish a deposit charge to be added
to the price of the battery of between $15 and $20, to be
deposited in the Used Lead-Acid Battery Fund (Fund) for
administrative revenues. Continuously appropriates the Fund
to the Department of Toxic Substance Control (DTSC) for
clean-up activities. Requires CalRecyle to enforce the
program, including by the use of administrative and civil
penalties, which are to be deposited in the Lead-Acid Battery
Recovery and Recycling Account within the Fund.
5)Provides a refund of the deposit minus $3 to a consumer who
returns an eligible battery. Of the $3, $1 is deposited in
the fund and $2 are returned to the LABRO for program
administration and implementation
6)Authorizes the Fund to repay any 2016-17 General Fund loans to
the Toxic Substance Control Account for lead contamination
clean-up.
FISCAL EFFECT:
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1)Unknown, continuously appropriated revenues for DTSC lead
clean-up activities clean-resulting from the battery charge.
According to the Board of Equalization, in 2012, there were
about 16 million lead-acid car batteries sold in California.
For every million batteries sold, DTSC would receive $1million
in revenue.
2)Increased initial costs for CalRecyle of between $650,000 and
$750,000 and 6-7 PY to develop regulations, enforcement
procedures, establish the fund and certify the advisory
committee.
3)After the program is established, ongoing annual CalRecycle
implementation and enforcement costs of approximately $1
million and 9-10 PY.
Funding requires an initial loan from the Integrated Waste
Management Account but ongoing funding is provided from the
Fund.
COMMENTS:
1)Purpose. This bill requires a LABRO to establish and add a
charge to the purchase price of a lead-acid battery at the
point of sale, and continuously appropriates battery charge
revenues to DTSC for the cleanup of areas of the state that
have been contaminated by the production, recycling, or
improper disposal of lead-acid batteries and activities.
In addition, should the Legislature approve the $176.6 General
Fund appropriation toward the Exide cleanup, This bill
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authorizes funds in the Lead-Acid Battery Cleanup Fund to be
used towards repaying the General Fund loan.
2)Voluntary Core Battery Program. According to a 2007
contracted report to the California Integrated Waste
Management Board (CIWMB), Framework for Evaluating End-of-Life
Product Management Systems in California, the need to have
disposal options for lead-acid batteries lead to an industry
response by the Battery Counsel international (BCI) to promote
model legislation for states to enact. The model included a
landfill ban, a mandatory retailer-take back system, and
mandatory collection of deposit on the purchase of a new
battery if an old battery is not returned. California adopted
a modified version of the model legislation in 1989 with only
two of those components:
a) Prohibiting the disposal of a lead-acid battery at a
solid waste facility, or on or in any land, surface waters,
watercourses, or marine waters and,
b) Requiring retailers to accept the trade-in of a spent
lead-acid battery by a consumer upon purchase of a new one.
Despite the lack of a deposit requirement, most retailers
voluntarily charge a deposit as an incentive to get the
batteries returned, and the deposit charge varies (usually
between $15-$18). If a used battery is returned to the
retailer at the time of purchase of a new battery, the deposit
is usually waived. The deposit is considered a "core" charge,
or deposit.
Since it is illegal to dispose of lead-acid batteries in
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California landfills, and all retailers that sell lead-acid
batteries must accept their return for disposal, the core
charge gives retailers a tool to comply with those laws by
incentivizing consumers to return their batteries. However, a
statutorily mandated deposit could substantially increase
lead-acid battery collection rates, which in turn will require
management of that waste.
1)The problem with lead. Lead id listed under California's
Proposition 65 since 1987 as a substance that can cause
reproductive damage and birth defects, and has been on the
list of chemicals known to cause cancer since 1992. According
to the Office of Environmental Health Hazard Assessment, lead
has multiple toxic effects on the human body. In particular,
decreased intelligence in children and increased blood
pressure in adults are among the more serious non-carcinogenic
effects. Lead is a probable carcinogen in humans.
Even at low levels, lead may cause a range of health effects
including behavioral problems and learning disabilities.
Children six years old and under are most at risk because this
is when the brain is developing.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081
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