BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 2530|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: AB 2530
Author: Gordon (D)
Amended: 6/15/16 in Senate
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-2, 6/29/16
AYES: Wieckowski, Hill, Jackson, Leno, Pavley
NOES: Gaines, Bates
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/1/16
AYES: Lara, Beall, Hill, McGuire, Mendoza
NOES: Bates, Nielsen
ASSEMBLY FLOOR: 59-11, 6/2/16 - See last page for vote
SUBJECT: Recycling: beverage containers
SOURCE: Californians Against Waste
DIGEST: This bill 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.
ANALYSIS:
AB 2530
Page 2
Existing law:
1) Enacts the California Beverage Container Recycling and Litter
Reduction Act (Bottle Bill) which:
a) Requires beverage containers, as defined, sold in-state
to have a 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 distributors to pay a
redemption payment to CalRecycle for every beverage
container sold in the state. These funds are continuously
appropriated to CalRecycle for the payment of refund
values and processing fees.
b) Requires every glass manufacturer in the state to use
at least 35% of postfilled glass in the manufacturing of
their glass food, drink or beverage containers, as
specified.
2)Enacts the Integrated Waste Management Act which:
a) 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%.
b) 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.
c) Requires that expanded polystyrene loosefill packaging
(i.e., packing peanuts) sold in the state contain a minimum
AB 2530
Page 3
of 60% recycled content.
d) 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.
e) 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) Requires a manufacturer of a plastic beverage container,
beginning in March 1, 2018, to report the amount of virgin
plastic and postconsumer recycled content in plastic used in
their beverage containers subject to CRV sold in the state
the previous calendar year.
2) Requires manufacturers 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.
Background
1) Statutes requiring recycled content. California has several
programs and statutes that require minimum levels of recycled
content or "postconsumer" material in various products or
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.
a) Rigid plastic packaging container law. California's
AB 2530
Page 4
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.
b) 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.
c) 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.
2) Plastic recycling in California. California has around 10
reclaimers accepting plastic for washing and producing
recycled flake or pellets and over 30 manufacturers that use
AB 2530
Page 5
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. Plastic containers accounted for 220,000 tons.
Roughly half of these plastic containers are at least
partially processed in California.
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
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."
2) No postconsumer recycled content requirement. As noted in
the background, several other programs in California,
including the RPPC program, require minimum levels of
postconsumer recycled material. This bill does not impose a
mandate for postconsumer recycled content in beverage
containers, but does require manufacturers who sell beverages
in plastic containers in California, and that are subject to
CVR, to report annually to CalRecycle on the level of
postconsumer recycled material used for those plastic
beverages.
Related/Prior Legislation
AB 1447 (Alejo, 2016) would have established minimum recycled
content standards for polyethylene terephthalate (PET) food and
beverage packing and expanded the recycled content requirement
for glass food and beverage containers to containers
AB 2530
Page 6
manufactured out of state. This bill was held in the Assembly
Appropriations Committee.
SB 732 (Pan, 2016) 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 California contains no less than 10% postfilled material, and
would have prohibited CalRecycle from reducing the processing
fees for beverage manufacturers unless their beverage containers
meet the required recycled content. This bill was held in
Senate Environmental Quality Committee.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
According to the Senate Appropriations Committee:
One-time costs of approximately $71,000 (California Beverage
Container Recycling Fund) for CalRecycle to develop the
reporting infrastructure.
Minor ongoing costs.
SUPPORT: (Verified8/2/16)
Californians Against Waste (source)
As You Sow
CarbonLITE Industries
Central Contra Costa Solid Waste Authority
Clean Water Action
EcoPET Plastics, Inc.
Global PET
Los Angeles Alliance for a New Economy
Marin County Hazardous and Solid Waste Management Joint Power
Authority
AB 2530
Page 7
Marin Sanitary Service
Napa Recycling &Waste Services
Natural Resources Defense Council
Northern California Recycling Association
RePET
Sierra Club California
Sonoma County Waste Management Agency
StopWaste
Tri-CED Community Recycling
UPSTREAM
Verdeco Recycling, Inc.
West Coast Chapter of the Institute of Scrap Recycling
Industries
Zanker Recycling
OPPOSITION: (Verified8/2/16)
American Beverage Association
American Chemistry Council
California Bottled Water Association
California Chamber of Commerce
California Grocer Association
California League of Food Processors
California Manufacturers and Technology Association
California Nevada Beverage Association
California Retailers Association
Grocery Manufacturers Association
International Bottled Water Association
Plastic Recycling Corporation of California
SPI - The Plastics Industry Trade Association
ARGUMENTS IN SUPPORT: Proponents say that AB 2530 creates a
voluntary market incentive for beverage producers to increase
their use of recycled content. They note that while Californians
have done a great job collecting beverage containers for
recycling, the in-state plastic recycling market is facing
considerable challenges, including the drastic drop in oil
prices, which has lowered demand and price for
California-generated recycled materials, and that this has many
manufacturers reconsidering their commitments to using recycled
content. They further state that AB 2530 will encourage the
development of a closed-loop recycling system that supports a
AB 2530
Page 8
robust in-state recycling industry that not only creates jobs
but also provides a valuable raw material for the state's
manufacturers.
ARGUMENTS IN OPPOSITION:Opponents argue that AB 2530 would
impose new, costly and unnecessary bureaucratic duties on the
beverage industry that ignore the realities of today's regional
beverage manufacturing and distribution marketplace.
Specifically, they note that large beverage manufacturers have
hundreds of specific product packages that would need an annual
in-depth supply chain analysis to generate an accurate
percentage of recycled content.
They further argue that the bill fails to recognize alternative
environmental commitments and packaging innovation, presents a
potential for frivolous litigation, and fails to demonstrate a
public policy rationale or purpose.
ASSEMBLY FLOOR: 59-11, 6/2/16
AYES: Alejo, Arambula, Atkins, Baker, Bloom, Bonilla, Bonta,
Brown, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley,
Dababneh, Daly, Dodd, Eggman, Frazier, Cristina Garcia,
Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray,
Grove, Hadley, Roger Hernández, Holden, Irwin, Jones,
Jones-Sawyer, Lackey, Levine, Linder, Lopez, Low, Maienschein,
Mayes, McCarty, Medina, Mullin, Nazarian, O'Donnell, Olsen,
Patterson, Quirk, Salas, Santiago, Mark Stone, Thurmond, Ting,
Weber, Williams, Wood, Rendon
NOES: Achadjian, Travis Allen, Brough, Chávez, Harper, Mathis,
Melendez, Obernolte, Wagner, Waldron, Wilk
NO VOTE RECORDED: Bigelow, Burke, Cooper, Dahle, Beth Gaines,
Gallagher, Kim, Ridley-Thomas, Rodriguez, Steinorth
Prepared by:Rebecca Newhouse / E.Q. / (916) 651-4108
8/3/16 18:21:32
**** END ****
AB 2530
Page 9