BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 662| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: SB 662 Page 2 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 SB 662 Page 3 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. SB 662 Page 4 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 **** END ****