BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1343
                                                                  Page 1

          Date of Hearing:  April 27, 2009

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                AB 1343 (Huffman) - As Introduced:  February 27, 2009
           
          SUBJECT  :  Solid waste:  architectural paint

           SUMMARY  :  Establishes the architectural paint recovery program.

           EXISTING LAW  :  Prohibits the disposal of latex architectural  
          paint in the land or waters of the state and solid waste  
          landfills.  Permits recyclable latex paint to be collected and  
          processed for recycling.  Requires state agencies to use  
          recycled latex paint with at least 50% postconsumer recycled  
          content.  

           THIS BILL  establishes an architectural paint recovery program,  
          which: 

          1)Requires a manufacturer of paint sold in California,  
            individually or through a representative organization, to  
            implement a recovery program "to undertake responsibility for  
            the development and implementation of strategies" to reduce  
            generation, promote reuse, and manage waste paint through the  
            collection, transport, and processing of postconsumer paint.  

          2)Authorizes the manufacturer to establish a fee on consumers to  
            cover the costs of the program.  

          3)By July 1, 2010 and annually thereafter, requires a  
            manufacturer to submit a report to the California Integrated  
            Waste Management Board (CIWMB) describing its paint recovery  
            efforts, including: 

             a)   Total volume of paint sold in the preceding year; 

             b)   Total volume of postconsumer paint recovered in the  
               preceding year; 

             c)   A description of the methods used for collection,  
               transport, and processing; 

             d)   Total cost of implementing the program and an evaluation  
               of the program's funding mechanism; 








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             e)   Examples of educational materials provided to consumers;  


             f)   An analysis of the environmental effects of collecting  
               and recycling latex paint; and, 

             g)   An evaluation of the feasibility of donating usable  
               postconsumer paint to charitable organizations, nonprofit  
               organizations, and public schools.  

          4)By January 1, 2012, requires CIWMB to submit a report to the  
            Legislature describing the results of the program and to  
            recommend whether or not the program should be extended and  
            any modifications needed.  Requires CIWMB to include  
            information about any financial savings to state or local  
            government.  

          5)Specifies that any action taken by a manufacturer under the  
            program is not a violation of the Cartwright Act, the Unfair  
            Practices Act, or any other state law relating to antitrust,  
            regulation of trade, or regulation of commerce. 

          6)Sunsets on July 1, 2013 and is repealed on January, 1, 2014.  

           FISCAL EFFECT  :  Unknown costs to CIWMB to process the reporting  
          information and to prepare a report to the Legislature.   

          COMMENTS  :

           1)Background  

          Both latex and oil-based paints are considered hazardous waste  
          in California, making their disposal in a solid waste landfill  
          prohibited.  Paint contains resins, solvents, pigments, and  
          additives.  While latex paint is less hazardous than oil-based,  
          its ingredients are hazardous to public health and the  
          environment.   Paint should not be allowed to "dry out" for  
          disposal, or poured down storm drains or into the sewer system.   
          For consumers, it is classified as a household hazardous waste  
          (HHW).  

          According to CIWMB, leftover paint is the largest source of HHW  
          in California.  In the 2007-2008 fiscal year, 2.4 million  
          gallons of leftover paint was collected, comprising 29% of HHW.   








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          Management of this paint costs local governments approximately  
          $6-8 per gallon, for a total estimated cost of $14-18 million  
          annually.  According to the author, only 5% of households in  
          California use local HHW programs.   

          In 2003, the Paint Product Stewardship Initiative (PPSI) began  
          facilitating a national dialogue to reduce the generation of  
          leftover paint, while increasing reuse and recycling  
          opportunities.  In 2007, PPSI mediated an agreement among paint  
          manufacturers, government agencies, recyclers, contractors, and  
          other interested parties to establish an industry-funded paint  
          stewardship organization that will collect and manage leftover  
          paint using a "pass-through" cost to consumers.  As a first step  
          in implementing the agreement, in 2008 a demonstration project  
          was established in Minnesota.  This bill is consistent with the  
          national effort by authorizing manufacturers to implement the  
          program through a representative organization.

           2)This bill 
           
          According to the author, this bill will reduce the financial  
          burden on local governments and protect the environment by  
          requiring manufacturers to take responsibility for establishing  
          and financing a safe and reliable system for the recovery and  
          proper management of leftover paint.  

           3)Suggested amendments

              a)   The  committee may wish to make clarifying changes to  
               Section 48702 (beginning on page 2, line 22)  : 
              
                  48702.  (a)  On and after January 1, 2010, a   A   
               manufacturer of paint sold in this state shall,  
               individually or through a representative organization,  
               implement a recovery program to  undertake responsibility  
               for the development and implementation of  develop  and  
               implement  strategies to reduce the generation of  
               postconsumer paint, promote the reuse of postconsumer  
               paint, and manage the end-of-life of postconsumer paint,  
               through collecting, transporting, and processing  the  
               postconsumer paint  .
                  (b) A cost recovery system may be established by the  
               manufacturer, individually or through a representative  
               organization, to collect a fee from the consumer on all  
               architectural paint sold in this state sufficient to  








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               recover the costs of the end-of-life management of  
               postconsumer paint in an environmentally sound fashion,  
               including collecting, storing, transporting, and reusing or  
               disposing  of the postconsumer paint .

             b)   This bill requires manufacturers to submit a report to  
               CIWMB on July 1, 2010 and annually thereafter.  The initial  
               report would be due only six months after the  
               implementation date of the bill, which is unlikely to be  
               sufficient time for manufacturers to have established and  
               implemented programs.   The committee may wish to amend the  
               bill to move the date for the initial report to July 1,  
               2011.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Californians Against Waste
          City and County of San Francisco
          Waste Management, Inc. 

           Opposition 
           
          Cal-Tax
          Stop Hidden Taxes Coalition
           

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