BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2530


                                                                    Page  1





          Date of Hearing:  April 11, 2016 


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          AB 2530  
          (Gordon) - As Introduced February 19, 2016


          SUBJECT:  Recycling:  beverage containers


          SUMMARY:  Requires that manufacturers of plastic beverage  
          containers sold in the state label the containers with the  
          percentage of postconsumer recycled content.  


          EXISTING LAW: 


          1)Pursuant to the California Beverage Container Recycling and  
            Litter Reduction Act (Bottle Bill): 

             a)   Requires beverage containers sold in this state to have  
               a California refund value (CRV) of 5 cents for containers  
               that hold fewer than 24 ounces and 10 cents for containers  
               that hold 24 ounces or more and requires a distributor to  
               pay a redemption payment to the Department of Resources  
               Recycling and Recovery (CalRecycle).  Continuously  
               appropriates these funds to CalRecycle for the payment of  
               refund values and processing fees.  
             b)   Requires that each new glass container manufactured in  
               the state contain a minimum of 35% postfilled (recycled  
               food container cullet) glass.  Requires every glass food,  
               drink, or beverage container manufacturer in the state to  








                                                                    AB 2530


                                                                    Page  2





               report the amount of tons of new glass and the tons of  
               postfilled glass used in the manufacturing of those  
               containers to CalRecycle every month.   


             c)   Authorizes CalRecycle to conduct audits or  
               investigations to determine compliance with the Bottle Bill  
               and related regulations.  


          2)Pursuant to the Integrated Waste Management Act (IWMA):  
             a)   Requires that local governments divert at least 50% of  
               solid waste from landfill disposal and establishes a  
               statewide goal that 75% of solid waste be diverted from  
               landfill disposal by 2020.
             b)   Requires that 50% of newsprint paper sold in the state  
               contain a minimum of 40% postconsumer recycled content.  


             c)   Requires that rigid plastic packaging containers sold in  
               the state contain a minimum of 25% postconsumer recycled  
               material and have a recycling rate of at least 45%.  


             d)   Requires that manufacturers of plastic trash bags that  
               are at or above 0.70 mils thick to  annually certify that  
               they comply with one of the following: 


               i)     That the bags sold in California contain a minimum  
                 of 10% recycled content; or,
               ii)    That all plastic products sold by the manufacturer  
                 in California contain a minimum of 30% recycled content.   



             e)   Requires that fiberglass sold in the state contain a  
               minimum of 30% postconsumer recycled content. 
             f)   Requires that expanded polystyrene loosefill packaging  








                                                                    AB 2530


                                                                    Page  3





               (i.e., packing peanuts) sold in the state contain a minimum  
               of 60% recycled content.  


             g)   Prohibits a manufacturer or supplier from selling a  
               plastic food or beverage container that is advertised with  
               a specific recycling content amount unless the manufacturer  
               or supplier is able to provide certification of that claim  
               in a format that is easy to understand and scientifically  
               accurate.  Requires a manufacturer or supplier to provide  
               information and documentation verifying the recycling  
               content of a plastic food or beverage container within 90  
               days of a request for such information made by a member of  
               the public or a state agency.


          THIS BILL:


          1)Beginning January 1, 2018, requires a manufacturer of a  
            plastic beverage container sold in the state to clearly  
            indicate the average percentage of postconsumer recycled  
            content in the beverage container, as specified.  


          2)For purposes of determining and labeling the amount of  
            postconsumer recycled content, requires the manufacturer to  
            utilize one or both of the following approaches:


             a)   The average amount of postconsumer recycled content in  
               all beverage containers sold by the manufacturer in the  
               state during the previous year; or, 


             b)   The average amount of postconsumer recycled content in a  
               specified type of beverage container.  










                                                                    AB 2530


                                                                    Page  4





          3)Requires a manufacturer to demonstrate compliance with the  
            bill's requirements to CalRecycle on an annual basis. 


          4)Prohibits CalRecycle from reducing the processing fee  
            requirements for a manufacturer of a plastic beverage  
            container unless the manufacturer complies with the  
            requirements of the bill.  


          FISCAL EFFECT:  Unknown 


          COMMENTS:  


          1)Food and beverage packaging.  Historically, glass, steel,  
            aluminum, and paper have been recycled for use in food  
            packaging.  The risk of postconsumer contamination has not  
            been a major concern with glass and metals, because they are  
            generally impervious to contaminants and are adequately  
            cleaned at the temperatures used in their recycling.  In  
            addition, pulp from reclaimed fiber in paper and paperboard  
            may be used for food-contact articles provided it meets  
            federal standards (Title 21 of the Code of Federal  
            Regulations, Section 176.260).  



          Manufacturers of plastic food packaging that contains recycled  
            plastic are responsible for ensuring that the recycled  
            material is of suitable purity for its intended use and will  
            meet all existing specifications for the virgin material.  The  
            federal Food and Drug Association (FDA) states that safety  
            concerns with the use of recycled plastic materials in food  
            packaging include: 1) that contaminants from the postconsumer  
            material may appear in the final food-contact product made  
            from the recycled material; 2) that recycled postconsumer  
            material not regulated for food-contact use may be  








                                                                    AB 2530


                                                                    Page  5





            incorporated into food-contact packaging; and, 3) that  
            components in the recycled plastic may not comply with the  
            regulations for food-contact use. To address these concerns,  
            FDA considers each proposed use of recycled plastic on a  
            case-by-case basis and issues informal advice as to whether  
            the recycling process is expected to produce plastic suitable  
            for food packaging.  FDA then issues a "non-objection" letter  
            to the manufacturer for the packaging.  Generally,  
            manufacturers use postfilled plastic, which refers to recycled  
            materials that contained food or beverages prior to recycling,  
            to meet FDA standards.  
          2)Polyethylene terephthalate (PET).  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  
            container 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.  
          3)Plastic recycling in California.  California has around 10  
            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.  


            In 2014, Californians returned approximately 17.7 billion (one  
            million tons) beverage containers covered by the Bottle Bill.   








                                                                    AB 2530


                                                                    Page  6





            Plastic containers accounted for 220,000 tons.  Approximately  
            half of these were processed and recycled in California.  


          4)Author's statement:  


               In the decades since the Bottle Bill was enacted,  
               Californians have embraced recycling beverage containers  
               and roughly 82% are returned for recycling.  Given the  
               public's embrace of beverage container recycling, consumers  
               should be able to easily determine whether the beverages  
               they purchase are made out of recycled plastic - to know  
               whether the beverage container material they have recycled  
               is going back into new beverage containers.      


          5)Suggested amendments:  


             a)   The requirements for determining postconsumer recycled  
               content are unclear and not consistent.  The committee may  
               wish to amend the bill to clarify these provisions and  
               specify that the recycling content claims comply with the  
               Federal Trade Commission Guides for the Use of  
               Environmental Marketing Claims.  


             b)   This bill requires that independent, accredited  
               laboratories certify a manufacturer's beverage containers  
               comply with the requirements of this bill; however, the  
               bill requires labeling based on the average content, not by  
               each container.  The committee may wish amend the bill to  
               allow manufacturers to acquire an independent, third-party  
               certification for the average percentage of postconsumer  
               recycled content and strike out the reference to  
               laboratories.    










                                                                    AB 2530


                                                                    Page  7





          6)Previous legislation: 


            AB 1447 (Alejo) would have established minimum recycled  
            content standards for PET food and beverage packing and  
            expanded the recycled content requirement for glass food and  
            beverage containers to containers manufactured out of state.   
            This bill was held in the Assembly Appropriations Committee. 


            SB 732 (Pan) would have required every manufacturer of a  
            beverage sold in any plastic container to demonstrate to  
            CalRecycle that each type of a plastic beverage container sold  
            in this state contains, on average, not less than 10%  
            postfilled material on and after January 1, 2017.  This bill  
            would have also prohibited CalRecycle from reducing the  
            processing fee requirements for any beverage manufacturer for  
            any beverage sold in the state unless the manufacturer  
            demonstrates to CalRecycle that the container is manufactured  
            at a facility that meets or exceeds a specified percentage of  
            recycled content, regardless of whether the container is  
            manufactured in this state.  This bill was held in Senate  
            Environmental Quality Committee. 





          REGISTERED SUPPORT / OPPOSITION:




          Support


          As You Sow 










                                                                    AB 2530


                                                                    Page  8





          Californians Against Waste


          CarbonLITE Industries


          Clean Water Action/Clean Water Fund


          Marin Sanitary Service 


          Napa Recycling & Waste Services


          RePET, Inc. 


          Sierra Club California 


          Sonoma County Waste Management Authority 


          StopWaste


          UPSTREAM


          Verdeco Recycling, Inc. 


          West Coast Chapter of the Institute of Scrap Recycling  
          Industries
          Zanker Recycling 











                                                                    AB 2530


                                                                    Page  9






          Opposition


          None on file




          Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092