BILL ANALYSIS Ó
AB 2530
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
2530 (Gordon)
As Amended June 15, 2016
Majority vote
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|ASSEMBLY: |59-11 |(June 2, 2016) |SENATE: |22-16 |(August 22, |
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Original Committee Reference: NAT. RES.
SUMMARY: 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 California Refund Value
(CRV) sold in the state the previous calendar year.
The Senate amendments:
1)Delete a requirement that manufacturers label the beverage
containers with the amount of post-consumer recycled content;
2)Require that information to instead be reported to the
Department of Resources Recycling and Recovery (CalRecycle).
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3)Require CalRecycle to post the information provided on its
website.
FISCAL EFFECT: According to the Senate Appropriations
Committee, this bill has one-time costs of approximately $71,000
(California Beverage Container Recycling Fund) for CalRecycle to
develop the reporting infrastructure and minor ongoing costs.
COMMENTS: 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 (CFR) 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 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.
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PET is the most common plastic used in food and beverage
packaging, including bottled water and soda. According to
CalRecycle data, 43% of containers included in the California
Beverage Container Recycling and Litter Reduction Act (Bottle
Bill) 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.
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.
Plastic containers accounted for 220,000 tons. Approximately
half of these were processed and recycled in California.
Unlike other state laws that require minimum levels of
postconsumer recycled material, this bill does not have a
mandate for postconsumer recycled content in beverage
containers. This bill requires manufacturers who sell beverages
in plastic containers in California, and that are subject to the
Bottle Bill, to report annually to CalRecycle on the level of
postconsumer recycled material used for those plastic beverages.
Making that information available to the public will enable
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consumers to determine whether or not beverage companies are
using recycled plastic in the beverages they purchase.
Analysis Prepared by:
Elizabeth MacMillan / NAT. RES. / (916) 319-2092
FN: 0003858