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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