BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 68
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          Date of Hearing:   April 13, 2009

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                    AB 68 (Brownley) - As Amended:  March 31, 2009
           
          SUBJECT  :  Solid waste:  single-use carryout bags. 

           SUMMARY  :  This bill establishes a statewide fee of 25 cents for  
          single-use carryout bags (bags), of all types, beginning in  
          2010.  

           EXISTING LAW  :  
           
          1)Requires operators of stores (defined as supermarkets and  
            stores over 10,000 square feet that include a pharmacy) to  
            establish an in-store plastic carryout bag recycling program.   
            The program must include: 

             a)   Plastic bags provided by the store to include a label  
               encouraging customers to return the bag to the store for  
               recycling;

             b)   Easily accessible recycling bins for plastic bags;

             c)   All plastic bags collected must be recycled in a manner  
               consistent with the local jurisdiction's recycling plan;

             d)   The store must maintain records relating to the program  
               for at least three years and must make the records  
               available to the local jurisdiction or California  
               Integrated Waste Management Board (CIWMB) upon request; and

             e)   The operator of the store must make reusable bags  
               available to customers.

          2)Requires manufacturers of plastic bags to develop educational  
            materials to encourage reducing, reusing, and recycling  
            plastic bags. 

          3)Pre-empts local governments from requiring stores that meet  
            these provisions to implement separate recycling programs or  
            from imposing a fee on plastic bags.

          4)Establishes a sunset on the above provisions of January 1,  








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            2013.

           THIS BILL  : 

          1)States legislative findings related to bags and their  
            environmental impacts.  

          2)Defines terms used in the bill, including: 

             a)   "Paper carryout bag" as a bag that contains no old  
               growth fiber; is 100% recyclable; and, contains a minimum  
               of 40% post-consumer recycled content.  

             b)   "Compostable carryout bag" as a bag that is derived from  
               100% "bio-based" sources containing no genetically modified  
               feedstocks and meets the American Society for Testing and  
               Materials Standard Specification for Compostable Plastics.   


             c)   "Reusable bag" as a bag made from cloth or other machine  
               washable fabric, designed for multiple uses. 

             d)   Expands the existing definition of "store" to include  
               chain convenience stores with at least 10,000 cumulative  
               square feet or retail space. 

          3)On and after July 1, 2010, prohibits a store from providing a  
            bag unless the store charges a Bag Pollution Cleanup Fee (fee)  
            of at least 25 cents per bag and requires that all bags  
            distributed meet the above definitions, including limiting  
            distribution of reusable bags to machine washable fabric bags.  
              

          4)Exempts from the fee individuals using the California Special  
            Supplemental Food Program for Woman, Infants, and Children and  
            individuals using the State Department of Social Services Food  
            Stamp Program.  

          5)Authorizes a store to retain a portion of the fee, up to 5  
            cents for plastic and compostable bags and up to 7 cents for  
            paper bags.  Requires the store to use the fee to reimburse  
            the store's costs associated with collecting the fee; develop  
            in-store educational materials encouraging the use of reusable  
            bags; develop and implement an educational campaign to  
            encourage the use of reusable bags; reimburse the store's  








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            costs associated with reusable bag giveaways; and, reimburse  
            the store's costs associated with the purchase of single-use  
            carryout bags that comply with the definitions above. 

          6)The remainder of the fee is to be transmitted to the State  
            Board of Equalization (BOE) to be deposited into the Bag  
            Pollution Fund (Fund).  The Fund is to be spent, upon  
            appropriation by the Legislature, as follows:  

             a)   80% of the Fund, by CIWMB for grants to local  
               governments, which have not enacted a ban on bags and  
               participate in the collection of the fee, on a per capita  
               basis to establish litter control programs and to conduct  
               reusable bag giveaways. 

             b)   3% by BOE to cover the costs of administering the fee  
               collection and an additional 3% by CIWMB to cover  
               administrative costs.  

             c)   14% shall be allocated equally to CIWMB, the State Water  
               Resources Control Board, the Department of Toxic Substances  
               Control, and the Ocean Protection Council to develop and  
               implement programs for pollution prevention, abatement,  
               cleanup, enforcement, "green chemistry" and product  
               redesign, water quality protection and cleanup, and  
               environmental and public education and outreach related to  
               the use of bags; and, for CIWMB to report to the  
               Legislature before January 1, 2012 regarding the  
               effectiveness of the bill and to make recommendations to  
               further encourage the use of reusable bags (as defined).  

          7)Authorizes BOE to adopt rules and regulations related to this  
            bill, including provisions relating to fee collection,  
            reporting, refunds, and appeals.  

           FISCAL EFFECT  :  Unknown costs to CIWMB to administer grants to  
          local governments, implement source reduction efforts, conduct  
          mitigation projects, and develop reusable bag giveaway programs.  
           These costs should be covered by the fee established by this  
          bill.  

           COMMENTS  :

           1)Background
           








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          According to the author, Californians use over 19 billion  
          plastic bags annually (approximately 552 per person), creating  
          over 147,000 tons of waste.  CIWMB staff estimates that only  
          5-6% of plastic materials are recycled in California.  The  
          author also states that paper bags also have negative  
          environmental impacts, including deforestation, air pollution,  
          and excessive energy consumption.  Compostable bags are not a  
          viable alternative.  

          Plastic bags are a significant contributor to litter and marine  
          debris.  Their light weight and expansive nature makes them  
          especially prone to blowing into waterways.  Even when disposed  
          of in the waste stream, these bags pose litter problems as they  
          blow off of trucks and out of solid waste handling operations.   
          According to the USEPA, marine debris has become a serious  
          problem along shorelines, coastal waters, estuaries, and oceans  
          throughout the world.  It is estimated that 60-80% of all marine  
          debris, and 90% of floating debris, is plastic.  Marine debris  
          can be life threatening to marine organisms and can wreak havoc  
          on coastal communities and the fishing industry.  Recent studies  
          by the Algalita Marine Research Foundation and the Southern  
          California Coastal Water Research Project have found that the  
          average mass of plastics in the seawater off the coast of Long  
          Beach is two and a half times greater than the average mass of  
          plankton.  After storms with excessive runoff, the mass of  
          plastics is even greater.  A similar study over seawater 1,000  
          miles west of San Francisco found the mass of plastics was six  
          times the mass of plankton in drifts where marine animals  
          congregate for feeding on plankton.  

          The Ocean Protection Council (OPC) has been at the forefront on  
          this issue.  In February 2007, OPC adopted a resolution to  
          reduce marine debris, which included specific actions on  
          single-use plastics.  In November 2008, OPC adopted its final  
          implementation strategy for the resolution.   The strategy  
          includes three "priority actions for measurable success:" 1)  
          Implement a take-back program for convenience food packaging;   
          2)  Prohibit single-use products that pose significant ocean  
          littler impacts where a feasible alternative is available;  and,  
          3)  Assess fees on commonly littered items.   Plastic single-use  
          bags are included in action 2; OPC proposes that a fee be added  
          for all single use paper and plastic bags to incentivize people  
          to switch to reusable bags.  OPC goes on to suggest that if a  
          fee does not dramatically reduce the use of bags, a ban should  
          be considered.  








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          Los Angeles County has also taken action on this issue by  
          preparing a report, An Overview of Carryout Bags in Los Angeles  
          County, in 2007.   The report included several key findings.   
          Plastic carryout bags have been found to significantly  
          contribute to litter and have other negative impacts on marine  
          wildlife and the environment.  Biodegradable carryout bags are  
          not a practical solution in Los Angeles County as there are no  
          local commercial composting facilities able to process the bags.  
           Reusable bags are more environmentally sustainable than paper  
          and plastic bags.  Accelerating the widespread use of reusable  
          bags will diminish plastic bag litter and redirect environmental  
          preservation efforts and resources toward "greener" activities.

          Reusable bags are the most environmentally benign alternative to  
          plastic bags.  Paper, the most likely replacement for plastic,  
          also has drawbacks, including being more costly for stores and  
          using more energy to produce and recycle.  However, these do  
          degrade when littered and do not pose the threats to marine life  
          that plastic bags do.  Additionally, compostable or degradable  
          plastic bags are not recyclable and contaminate recycling  
          equipment if they are mixed in with conventional plastic bags.   
          Moreover, most degradable bags do not break down in a marine  
          environment.

          While it is anticipated that the fee would reduce the number of  
          bags used in the state significantly, it is worth noting that if  
          the current estimated 19 billion bags continue to be used, the  
          fee would generate $4.75 billion annually.  

          In 2006, AB 2449 (Levine), Chapter 845, was enacted, requiring  
          all stores to establish a plastic bag recycling program.  The  
          stated goal of this legislation was to increase recycling, and  
          to create the infrastructure necessary to collect and recycle  
          plastic bags.  That bill also pre-empted local governments from  
          enacting a per-bag fee on plastic bags.  Local governments have  
          indicated concerns with the pre-emption created by AB 2449,  
          arguing that the fee could be used to discourage bag  
          distribution and fund anti-litter or recycling programs.

         2)This bill 

           Heal the Bay, the sponsor, states:  

              a)   25% of the world's population lives in countries in  








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               which a ban or fee has been placed on single-use plastic  
               carryout bags.   

             b)   San Francisco, Malibu, Oakland, and Manhattan Beach have  
               banned single-use plastic carryout bags.  The Cities of  
               Santa Monica, Los Angeles, Palo Alto, Berkeley, Eureka, and  
               Foster, as well as Humboldt County, are also considering  
               similar ordinances.  

          While these policies are helpful in reducing marine debris from  
          plastic, they have the unintended consequence of shifting  
          disposable bags to paper, which have their own significant  
          environmental impacts.  This bill attempts to dramatically  
          reduce the overall use of disposable bags and instead shift  
          consumers toward the use of reusable bags.  

          Fees do reduce the use of bags.  In 2002, Ireland instituted a  
          fee equivalent to 25 cents, in the first three months the amount  
          of shopping bags used by consumers decreased 90% and raised  
          $3.45 million. After one year the plastic bag use decreased by  
          94% and raised $9.6 million.  In 2007, Ikea instituted a 5 cent  
          fee on bags in the US and achieved a 92% reduction in bag use.   
          Ikea also offers plastic reusable bags for 59 cents.  
           
          3)Suggested amendment 

              a)   This bill defines "reusable bag" to only include machine  
               washable fabric bags.  A large number of reusable bags  
               currently available are made of durable plastic and look  
               similar to paper grocery bags with handles.  These bags are  
               widely available and have the advantage of holding their  
               shape when open.  The author may wish to amend the bill to  
               expand the definition of reusable bags to include those  
               types already widely available, as follows: 

                    (g) "Reusable bag" means a bag that is made of  cloth  
                 or other machine washable fabric that is specifically  
                 designed and manufactured for multiple reuse.   either of  
                 the following:
                     (1) A bag made of cloth or other machine washable  
                 fabric that has handles.
                     (2) A durable plastic bag with handles that is at  
                 least 2.25 mils thick and is specifically designed and  
                 manufactured for multiple reuse.  
                








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          4)Related legislation

              a)   This bill is similar to AB 87 (Davis), which would also  
               establish a 25 cent fee on single-use carryout bags.  AB 87  
               will also be heard at the April 13th hearing.  

             Both AB 68 and AB 87 are similar to AB 2058 (Levine) and AB  
               2928 (Davis) introduced last year.   Assemblymembers Davis  
               and Brownley became joint-authors on AB 2058, which was the  
               only of those bills to pass out of Assembly Natural  
               Resources.  It was held on the Senate Appropriations  
               Suspense File.  

             b)   AB 1141 (Calderon) expands the existing in-store plastic  
               bag recycling program established by AB 2449 (Levine),  
               Chapter 845, Statutes of 2006.   This bill will be heard in  
               this committee on April 20th.  

             c)   SB 228 (DeSaulnier) requires bags labeled "compostable"  
               or "marine degradable" to be readily and easily  
               identifiable to assist in their collection and sorting.   
               This bill has been referred to the Senate Environmental  
               Quality Committee.  

             d)   SB 531 (DeSaulnier) establishes the "Single-Use Carryout  
               Bag Responsibility Act" and requires suppliers of  
               single-use carryout bags (paper and plastic) to remit a fee  
               of $0.001 per bag to the Single-Use Carryout Bag  
               Responsibility Fund to award grants to abate and cleanup  
               bag litter and to encourage the proper disposal and  
               collection of bags.  This bill will be heard in the Senate  
               Environmental Quality Committee on April 20.   

           REGISTERED SUPPORT / OPPOSITION  :

           Support 

           Heal the Bay (sponsor)
          American Federation of State, County and Municipal Employees  
          (AFSCME)
          Ballona Creek Renaissance
          Breathe California
          California Coastkeeper Alliance
          California State Association of Counties
          Californians Against Waste








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          Center for Oceanic Awareness, Research, and Education
          ChicoBag
          City of Los Angeles
          City of Oakland
          Clean Water Action
          Defenders o Wildlife
          Earth Resource Foundation
          Environment California
          Environmental Justice Coalition for Water
          Faith2Green
          Friends of the LA River
          Global Green USA
          Haight Ashbury Neighborhood Council
          Heal the Ocean
          Malibu Surfing Association
          Marin Sanitary Service
          Natural Resources Defense Council
          One Bag At a Time
          Orange County Coastkeeper
          Planning and Conservation League
          ReuseThisBag.com
          Ross Mirkarimi, Member, San Francisco Board of Supervisors
          Saatchi & Saatchi S
          San Diego Coastkeeper
          Santa Barbara Channelkeeper
          Santa Monica Baykeeper
          Save the Bay
          Sierra Club California
          Southern California Watershed Alliance
          Surfrider Foundation
          The River Project
          TreePeople
          Urban Environmental Policy Institute
          Urban Semillas
          WiLDCOAST
          1 Bag at a Time
          Approximately 160 individuals

           Opposition 
           
          American Forest and Paper Association
          Cal-Tax
           

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








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