BILL ANALYSIS
AB 1173
Page 1
GOVERNOR'S VETO
AB 1173 (Huffman)
As Amended September 4, 2009
2/3 vote
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|ASSEMBLY: |51-25|(June 2, 2009) |SENATE: |21-17|(September 10, |
| | | | | |2009) |
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|ASSEMBLY: |52-27|(September 11, | | | |
| | |2009) | | | |
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Original Committee Reference: E.S. & T.M.
SUMMARY : Prohibits a manufacturer from using funds from energy
distribution charges for the purchase and distribution of
compact fluorescent lights (CFLs), unless the CFLs meet
specified standards, including low levels of mercury, and the
manufacturer has implemented a fluorescent lamp recycling
program. Requires a retailer who receives funds from energy
distribution charges for a fluorescent lamp program to provide
in-store collection opportunities for recycling fluorescent
lamps. Prohibits, on and after January 1, 2011, the sale of new
general purpose lighting fixtures that contain preheat ballasts
for the operation of preheat linear fluorescent lamps.
The Senate amendments :
1)Prohibit, on and after January 1, 2011, the sale of new
general lighting purpose lighting fixtures that contain
preheat ballasts for operation of preheat linear fluorescent
lamps.
2)Define terms for the purposes of the chapter.
AB 1173
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3)Prohibit funds generated from energy distribution charges from
being distributed to any manufacturer for the purchase and
distribution of compact fluorescent lamps, unless all of the
following conditions, along with conditions that were in the
Assembly version of the bill, exist:
a) All compact fluorescent lamps purchased contain no more
mercury than the amount referenced in the most recent
ENERGY STAR version, or four milligrams of mercury for any
basic lamp of up to 25 watts, whichever is less; and,
b) Packaging for the subsidized compact fluorescent lamps
has a label informing consumers that disposing of
fluorescent lamps in the solid waste stream is prohibited
and informing consumers about opportunities for proper
recycling.
4)Authorize the manufacturer to contract with a retailer for
collection of end-of-life residential fluorescent lamps.
5)Prohibit funds from energy distribution charges from being
used to pay for manufacturer or retailer recycling activities
required by this bill.
6)Establish requirements for the residential fluorescent lamp
recycling program, including that the program must be
established within 90 days of receiving funds; demonstrate
sufficient funding; be free and convenient to all consumers;
and, include education and outreach efforts, as specified.
AB 1173
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7)Require manufacturers of residential fluorescent lamps, within
one year of implementing a residential fluorescent lamp
recycling program, and annually thereafter, to submit a report
to the California Integrated Waste Management Board (CIWMB)
describing its residential fluorescent lamp recovery efforts.
8)Add CIWMB authority and requirements in relation to
residential fluorescent lamp collection and recycling
programs, including:
a) Require the CIWMB to review the annual report and within
90 days of receipt to adopt a finding of compliance or
noncompliance with the provisions of this bill;
b) Require the CIWMB, prior to adopting a finding of
compliance or noncompliance, to notify manufacturers and to
provide the manufacturer with an opportunity to cure its
noncompliance or argue that the finding of noncompliance is
in error. Require the CIWMB, if the manufacturer does not
persuade the board that it is in compliance, to post a
notice listing the manufacturer as not in compliance;
c) Authorize manufacturers that have been listed as
non-compliant, but can demonstrate to the satisfaction of
the CIWMB that they are in compliance, to request a
certification letter from the CIWMB to that effect;
d) Require the CIWMB to enforce the requirements of the
AB 1173
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bill; and,
e) Require the CIWMB to establish administrative fees to be
paid by CFL manufacturers to cover the cost of reviewing
and approving the annual report and the cost of oversight
and enforcement of the residential fluorescent lamp
recycling program. Prohibit the fee from exceeding $5,000
per manufacturer and require the fee to bear a reasonable
relationship to actual costs.
9)Delete provisions that:
a) Give the CFL manufacturer or distributor of CFLs the
option of agreeing to pay a fee for each CFL for which
energy distribution charge funding is received instead of
implementing a recycling program for CFLs; and,
b) Create a Fluorescent Lamp Recycling Fund in the State
Treasury, to be administered by the Department of Toxic
Substances Control, to make payments to retailer-based
collectors, local governments, and other approved
collectors of residentially-generated fluorescent lamps.
AS PASSED BY THE ASSEMBLY , this bill:
1)Prohibited the distribution of moneys from energy distribution
charges for the purchase and distribution of compact
fluorescent lights that did not meet specified standards or to
retailers that did not establish a recycling program.
2)Established a per subsidized fluorescent lamp fee to fund
payments to approved collectors of fluorescent lamps.
FISCAL EFFECT : According to the Senate Appropriations
Committee, CIWMB review of reports and enforcement will cost
between $20,000 and $40,000 per year, to be funded by the
Integrated Waste Management Account (fully offset by fees).
AB 1173
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COMMENTS : The California Public Utilities Commission's energy
efficiency programs are funded by charges applied to each
customer's energy bill within each utility's service territory
(energy distribution charges). Since 1999, as part of these
energy efficiency programs, investor owned utilities (IOUs) have
funded a lighting incentive program to provide 'pre-bates' to
CFL manufacturers and distributors in order to buy down the
purchase price of CFLs sold at retail. CFLs use about 75% less
energy than incandescent bulbs, overall. Last year, the IOUs
spent approximately $60 million collectively to buy down the
price of an estimated 30 million lamps. The IOUs have proposed
spending about $45 million annually to subsidize fluorescent
lamp purchases over the next three years.
Proponents of AB 1173 assert that the main criteria used by the
IOUs to determine eligibility for these lighting incentive
programs have been price. These low-priced lamps, often
imported, tend to have higher levels of mercury than those
manufactured in the United States. Mercury is an essential part
of CFLs because it allows the bulb to be an efficient light
source. Unfortunately, mercury is also a reproductive toxicant
and can harm the brain, heart, kidneys, lungs, and immune
systems of people of all ages. Because of these risks, the
public is prohibited from disposing CFLs in the solid waste
stream.
Since IOUs continue to include substantial subsidies for
fluorescent lamp purchases in their energy efficiency programs,
tens of millions of CFLs will be purchased, installed, and
eventually discarded in California. Currently, there is no
convenient and cost effective infrastructure in place for
California residents to recycle their lamps. This bill limits
eligibility for energy distribution charges to only those
manufacturers and retailers whose lamps meet certain criteria,
including low levels of mercury, and who create a program for
collecting and properly recyling spent compact fluorescent
lights.
GOVERNOR'S VETO MESSAGE :
AB 1173
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This bill creates a new program for the recycling of
certain residentially-generated fluorescent lamps. While
I applaud the author's intent, this bill inappropriately
links a waste and toxics reduction program to
California's world-renowned energy efficiency efforts.
Current law requires the state's investor-owned and
publicly-owned utilities to charge consumers a public
goods charge and use a portion of the money collected on
energy efficiency programs. One of those programs has
traditionally been to incentivize the purchase of more
energy-efficient compact fluorescent lamps (CFLs) by
providing monetary incentives to both manufacturers and
retailers to reduce the increased costs of CFLs to the
consumer.
By tying CFL recycling mandates to a manufacturer or
retailers' participation in CFL energy efficiency
programs, this bill creates a reverse incentive that
could force manufacturers and retailers to choose not to
participate in either program. The result is no new
improvement to CFL recycling and a potential increase in
the costs of CFLs to consumers, which decreases CFL sales
and undermines our energy-efficiency efforts.
Analysis Prepared by : Shannon McKinney / E.S. & T.M. /
(916) 319-3965
FN: 0003418