BILL ANALYSIS Ó SB 662 Page 1 Date of Hearing: June 22, 2015 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Das Williams, Chair SB 662 (Committee on Environmental Quality) - As Introduced February 27, 2015 SENATE VOTE: 37-0 SUBJECT: Recycling SUMMARY: Committee omnibus bill that makes various changes to the Public Resources Code relating to recycling. EXISTING LAW: 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 the Department of Resources, Recycling and Recovery (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. SB 662 Page 2 3)Authorizes a local governing body to propose eligible property in its jurisdiction as a Recycling Market Development Zone (RMDZ), and authorizes CalRecycle to designate RMDZs that are necessary to assist in attracting private sector recycling investments to the area. 4)Creates the Recycling Market Development Revolving Loan Subaccount (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)Establishes the RMDZ Loan Program to provide low-interest loans for the purchase of equipment and other costs for California-based recycling businesses. 6)Establishes the Architectural Paint Recovery Program, which requires a manufacturer of architectural paint or the designated stewardship organization to submit an architectural paint stewardship plan to CalRecycle to develop and implement a recovery program to reduce, reuse, and manage postconsumer architectural paint. 7)Requires the manufacturer or designated organization to also submit an annual report on or before September 1 of each year SB 662 Page 3 describing its architectural paint recovery efforts. THIS BILL: 1)Authorizes CalRecycle to expend money from the Subaccount to make payments to local governing bodies within RMDZs to reimburse them for activities promoting the zone. 2)Changes the annual report date of a manufacturer's architectural paint recovery efforts to CalRecycle from September 1 to November 1 of each year. FISCAL EFFECT: According to the Senate Appropriations Committee, this bill has ongoing costs of approximately $125,000 annually from the Recycling Market Development Revolving Loan Subaccount (special) for payments to RMDZ administrators for promotional activities. COMMENTS: According to CalRecycle: Developing [recycling] facilities is a critical component of CalRecycle's efforts to achieving 75% 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 SB 662 Page 4 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. Existing law requires PaintCare to submit an annual report to CalRecycle by September 1 that describes the status of the program, including the volume of paint sold in the preceding fiscal year and the volume of paint recovered. When implementing the law, PaintCare has found that it needs a minimum of four months past the end of the fiscal year (June 30) to prepare the annual report to CalRecycle, which has resulted in PaintCare requesting an extension from CalRecycle for the last two years. This bill moves the date from September 1 to November 1 to provide a more realistic time frame for submitting the report. REGISTERED SUPPORT / OPPOSITION: Support American Coatings Association SB 662 Page 5 California Paint Council City of Torrance PaintCare Opposition None on file Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916) 319-2092