BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular
SB 662 (Committee on Environmental Quality) - Recycling
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|Version: February 27, 2015 |Policy Vote: E.Q. 7 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: April 27, 2015 |Consultant: Marie Liu |
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This bill does not meet the criteria for referral to the
Suspense File.
Bill
Summary: SB 662 would extend the uses of the Recycling Market
Development Revolving Loan Subaccount (subaccount) to include
payments to local governments for services related to the
promotion of a recycling market development zone (RMDZ). This
bill would also change the annual reporting due date under the
architectural paint extended producer responsibility collection
program.
Fiscal
Impact: Ongoing costs of approximately $125,000 annually from
the Recycling Market Development Revolving Loan Subaccount
(special) for payments to RMDZ administrators for promotional
activities.
Background: Existing law requires the Department of Resources, Recycling
and Recovery (CalRecycle) to develop a comprehensive market
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development plan to stimulate market demand in the state for
waste material generated in the state, and requires the plan to
include efforts to encourage and promote cooperative, regional
programs to expand markets for recycled material. To this end,
CalRecycle is authorized to designate Recycling Market
Development Zones (RMDZs) to attract private sector recycling
investments. Local governments, private businesses, and
nonprofits within a RMDZ are eligible to receive loans,
technical assistance, and free product marketing. Authorization
for the RMDZs sunset on July 1, 2021.
Loans and other RMDZ activities are funded by the subaccount,
which received seed money from the Integrated Waste Management
Account, and receives ongoing revenues from loan repayments and
interest. The subaccount is continuously appropriated to
CalRecycle.
The Architectural Paint Recovery Program requires a manufacturer
of architectural point or the designated stewardship
organization to submit an architectural paint stewardship plan
to CalRecycle which develops and implements a recovery program
to reduce, reuse, and manage postconsumer architectural paint.
Beginning September 1, 2013, a manufacturer or architectural
paint sold in this state must submit an annual report to
CalRecycle describing its architectural paint recovery efforts.
Proposed Law:
This bill would authorize CalRecycle to expend the subaccount
to reimburse local governments for promotional activities for
RMDZs, including training, outreach, development of written
promotional materials, and technical analysis of feedstock
availability.
This bill would also change the annual reporting due date for
the architectural extended producer responsibility collection
program from September 1 to November 1 beginning in 2016.
Staff
Comments: According to CalRecycle, regarding the efforts to
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develop manufacturing facilities within the RMDZs, "Developing
such facilities is a critical component of CalRecycle's efforts
to achieving 75 percent recycling by 2020 and the state's
greenhouse gas reduction goals. Attracting, siting, and
permitting such facilities, as well as finding appropriate
recycled feedstock, requires the services of Zone
Administrators. For the last 20 years, CalRecycle has provided
reimbursement payments, primarily from the RMDZ Loan Subaccount,
to the Zone Administrators for outreach services to promote the
RMDZ Loan Program. However, a recent determination found that
PRC 42023.1, which authorizes the RMDZ Loan Subaccount funds
expenditures, does not give CalRecycle sufficient authority to
expend funds from the RMDZ Loan Subaccount to reimburse Zone
Administrators for outreach services."
This bill clarifies CalRecycle's statutory authority to make
reimbursement payments for RMDZ promotion activities. In the
past, the 36 zones have received between $3,500 and $10,000
annually for promotional activities. CalRecycle anticipates that
future promotional activities will likely total between $370,000
and $400,000 over the next three years. As this bill expands the
use of the subaccount, a continuously appropriated fund, this
bill makes an appropriation.
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