BILL ANALYSIS Ó AB 2153 Page 1 Date of Hearing: May 18, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2153 (Cristina Garcia) - As Amended April 14, 2016 ----------------------------------------------------------------- |Policy |Environmental Safety and Toxic |Vote:|4 - 1 | |Committee: |Materials | | | | | | | | | | | | | ----------------------------------------------------------------- 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. AB 2153 Page 2 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: AB 2153 Page 3 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 AB 2153 Page 4 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 AB 2153 Page 5 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 AB 2153 Page 6