BILL ANALYSIS Ó SB 662 Page 1 Date of Hearing: July 8, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 662 (Committee on Environmental Quality) - As Introduced February 27, 2015 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|7 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This committee bill makes the following changes to the Public Resources Code relating to recycling: SB 662 Page 2 1)Extends the use of the Recycling Market Development Revolving Loan Subaccount (subaccount) to include payments to local governments for the promotion of a recycling market development zone (RMDZ). 2)Changes the annual reporting date for the architectural paint extended producer responsibility collection program from September 1 to November 1, beginning in 2016. FISCAL EFFECT: Total costs of approximately $375,000 to $400,000 over three years from the Recycling Market Development Revolving Loan Subaccount for payments to RMDZ Zone Administrators for promotional activities. COMMENTS: 1)Recycled Material Market Development. Under existing law, CalRecyle is required to develop a comprehensive market development plan to stimulate demand for waste materials generated in the state. As part of this effort, CalRecyle designates RMDZs to attract private sector recycling investment. Local governments, private businesses, and nonprofit organizations within a RMDZ are eligible to receive loans, technical assistance and free product marketing. Loans and other RMDZ activities are funded by the subaccount, which received initial seed money from the Integrated Waste Management Account and receives ongoing funding from loan repayments and interest. SB 662 Page 3 For the last 20 years, CalRecycle provided reimbursement payments to RMDZ Zone Administrators for outreach services to promote the RMDZ Loan program. It was recently determined that CalRecyle may not have sufficient authority to expend funds from the subaccount to reimburse Zone Administrators for outreach services. This bill clarifies CalRecyle's statutory authority to provide reimbursement payments for RMDZ promotion activities. 2)Paint Recovery. PaintCare is California's extended producer responsibility (EPR) collection system for left over paint recovery. Existing law requires PaintCare to submit an annual report by September 1 detailing the status of the program, including the volume of paint sold in the preceding fiscal year and the volume of paint recovered. For the last two years, PaintCare has requested an extension asserting it needs a minimum of four months after the end of the fiscal year (June 30) to prepare the report. This bill provides PaintCare an additional two months to prepare the annual report. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081 SB 662 Page 4