BILL ANALYSIS                                                                                                                                                                                                    Ó






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                                   THIRD READING 


          Bill No:  SB 662
          Author:   Committee on Environmental Quality  
          Introduced:2/27/15  
          Vote:     21  

           SENATE ENVIRONMENTAL QUALITY COMMITTEE:  7-0, 4/15/15
           AYES:  Wieckowski, Gaines, Bates, Hill, Jackson, Leno, Pavley

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 4/27/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SUBJECT:   Recycling


          SOURCE:    Author


          DIGEST:  This bill is the Senate Environmental Quality  
          Committee's annual omnibus bill that clarifies the Department of  
          Resources, Recycling and Recovery's (CalRecycle) authority to  
          make reimbursement payments for promotion of the Recycling  
          Market Development Zone (RMDZ) Program to stimulate recycling  
          market development in California.  This bill also makes a  
          technical change to move the annual reporting due date for  
          California's architectural paint extended producer  
          responsibility collection program. 


          ANALYSIS:   


          Existing law:









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          1) Declares the state's policy goal that not less than 75% of  
             solid waste generated be source reduced, recycled, or  
             composted by 2020 and annually thereafter, and that market  
             development is the key to increasing cost-effective  
             recycling.

          2) Requires CalRecycle to develop a comprehensive market  
             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.

          3) Authorizes a local governing body to propose eligible  
             property in its jurisdiction as a RMDZ, and authorizes  
             CalRecycle to designate RMDZs which are necessary to assist  
             in attracting private sector recycling investments to the  
             area.

          4) Creates the Recycling Market Development Revolving Loan  
             Subaccount and continuously appropriates the funds deposited  
             in the subaccount to CalRecycle for making loans to local  
             governing bodies, private businesses, and non-profit entities  
             within the RMDZ for the purposes of the RMDZ Loan Program.

          5) Requires a manufacturer of architectural paint or the  
             designated stewardship organization, within the Architectural  
             Paint Recovery Program, to submit an architectural paint  
             stewardship plan to CalRecycle to develop and implement a  
             recovery program to reduce, reuse, and manage postconsumer  
             architectural paint.

          6) Requires the manufacturer or designated organization to also  
             submit an annual report on or before September 1 of each year  
             describing its architectural paint recovery efforts.

          This bill: 

          1)Authorizes CalRecycle to expend money from the Recycling  
            Market Development Revolving Loan Subaccount to make payments  
            to local governing bodies within RMDZs to reimburse them for  
            activities promoting the zone development.

          2)Changes the annual report date of a manufacturer's  
            architectural paint recovery efforts to CalRecycle from  







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            September 1 to November 1 of each year.

          Comments
          
          Purpose of this bill.  This bill is the Senate Environmental  
          Quality Committee's annual omnibus bill and makes two technical  
          changes regarding current programs.

          According to CalRecycle, regarding the efforts of RMDZ  
          Administrators to develop manufacturing facilities within the  
          Zone, "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.

          PaintCare is California's extended producer responsibility  
          collection system for left-over paint recovery, run by  
          manufacturers.  Over the past two years, PaintCare's growth has  
          led to the need for a minimum of four months past the end of the  
          fiscal year (June 30) to prepare the annual report to  
          CalRecycle, which necessitates continued deadline extension  
          requests.  Changing the date to November 1 would allow a more  
          realistic time frame for submitting the report.

          FISCAL EFFECT:   Appropriation:    Yes         Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee:

           Ongoing costs of approximately $125,000 annually from the  
            Recycling Market Development Revolving Loan Subaccount  
            (special) for payments to RMDZ administrators for promotional  
            activities.







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          SUPPORT:   (Verified4/27/15)


          American Coatings Association 
          California Paint Council 
          PaintCare 


          OPPOSITION:   (Verified4/27/15)


          None received

          Prepared by:Laurie Harris / E.Q. / (916) 651-4108
          4/29/15 16:07:26


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