BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 662


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          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.








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          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  








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            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  








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            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 








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          California Paint Council 


          City of Torrance


          PaintCare




          Opposition


          None on file




          
          Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092