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 --