BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2530 (Gordon) - Recycling: beverage containers ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 15, 2016 |Policy Vote: E.Q. 5 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Narisha Bonakdar | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Bill Summary:1) AB 2530 requires manufacturers of beverages sold in plastic beverage containers subject to the California Redemption Value (CRV) to report the amount of virgin plastic and postconsumer recycled plastic used to the California Department of Resources Recycling and Recovery (CalRecycle) annually. Fiscal Impact: One-time costs of approximately $71,000 (California Beverage Container Recycling Fund) for CalRecycle to develop the reporting infrastructure. Minor ongoing costs. Background: Statutes requiring recycled content. California has several programs and statutes that require minimum levels of recycled content or "postconsumer" material in various products or AB 2530 (Gordon) Page 1 of ? purchases. Postconsumer material is generally defined as products that were bought, used, and recycled by consumers. For example, a plastic bottle that has been purchased, recycled, and used to make another product would be considered postconsumer material. Rigid plastic packaging container law. California's Rigid Plastic Packaging Container (RPPC) law was enacted in 1991 as part of an effort to reduce the amount of plastic waste disposed in California landfills and to increase the use of recycled postconsumer plastic. The law mandates that rigid plastic packaging containers sold in the state contain a minimum of 25% postconsumer recycled material. Some products are exempt from compliance, including food, drugs, baby formula, and other materials. Glass beverage container recycled content. California state law requires in-state glass manufacturers to use a minimum of 35% postfilled glass (glass that had previously been filled with a beverage or food) in the manufacturing of their glass food, drink, or beverage containers, measured in the aggregate on an annual basis, and a minimum of 25% postfilled glass if the manufacturers use at least half mixed-color cullet. Glass manufacturers are required to report each month to CalRecycle on the total tons of new glass food, drink, and beverage containers made in California and the tons of California postfilled glass used in the manufacturing of those new containers. There is no similar statewide requirement for plastic beverage containers. State Agency Buy Recycled Campaign. Current state law establishes the State Agency Buy Recycled Campaign (SABRC), which requires state agencies and the Legislature to purchase recycled-content products and track those purchases. The SABRC requires minimum postconsumer material content for 11 specified product categories, including a minimum level of 10% postconsumer material for plastic products. All state agencies are mandated to require all businesses to certify in writing the percentage of postconsumer material in the products, materials, goods, or supplies offered or sold to the state. AB 2530 (Gordon) Page 2 of ? Plastic recycling in California. California has around 10 reclaimers accepting plastic for washing and producing recycled flake or pellets and more than 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 beverage containers (one million tons). Plastic containers accounted for 220,000 tons. Roughly half of these plastic containers are at least partially processed in California. Proposed Law: This bill: 1)Beginning on March 1, 2018, requires manufacturers of plastic beverage containers subject to the CRV to annually report to CalRecycle the amount of virgin plastic and postconsumer recycled plastic used. 2)Requires manufacturers to submit the above information to CalRecycle under penalty of perjury. 3)Specifies that the requirements above do not apply to a refillable plastic beverage container. 4)Requires CalRecycle to post the information reported on its website. Staff Comments:1) Purpose of Bill. According to the author, "Thirty years ago, the Legislature passed and the Governor signed the California Beverage Container Recycling and Litter Reduction Act, better AB 2530 (Gordon) Page 3 of ? known as the Bottle Bill. This Act established California's systems for the recycling of beverage containers. 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 recycling, consumers should be able to determine whether beverage companies are using recycled plastic in the beverages they purchase." This bill constitutes a state mandate. However, under the California Constitution, costs associated legislation defining a new crime or changing an existing definition of a crime are not reimbursable. -- END --