BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1998|
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                                 THIRD READING


          Bill No:  AB 1998
          Author:   Brownley (D), et al
          Amended:  8/27/10 in Senate
          Vote:     21

           
           SENATE ENV. QUALITY COMMITTEE  :  5-2, 6/28/10
          AYES:  Simitian, Corbett, Hancock, Lowenthal, Pavley
          NOES:  Runner, Strickland
           
          SENATE APPROPRIATIONS COMMITTEE  :  11-0, 8/12/10
          AYES:  Kehoe, Ashburn, Alquist, Corbett, Emmerson, Leno,  
            Price, Walters, Wolk, Wyland, Yee
           
          ASSEMBLY FLOOR  :  42-27, 6/2/10 - See last page for vote


           SUBJECT :    Solid waste:  single-use carryout bags

           SOURCE  :     Heal the Bay


           DIGEST  :    This bill prohibits the use of single-use  
          carryout bags by prohibiting grocery stores and convenience  
          stores from providing all single-use carryout bags to  
          customers after 2012, as specified.  This bill makes a  
          one-time appropriation of $2 million from the Recycling  
          Market Development Revolving Loan Subaccount in the  
          Integrated Waste Management Account to the Department of  
          Resources Recycling and Recovery to provide loans and  
          grants to encourage plastic bag manufacturers to make bags  
          with recycled content that meet the requirements for  
          reusable bags.
                                                           CONTINUED





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           ANALYSIS  :    Existing law, pursuant to Section 42250 et  
          seq. of Chapter 5.1 of the Public Resources Code:

          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.  Under the program: 

             A.    Plastic bags provided by the store must include a  
                label encouraging customers to return the bag to the  
                store for recycling.

             B.    Easily accessible recycling bins for plastic bags  
                must be provided.

             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 the  
                California Integrated Waste Management Board (now the  
                Department of Resources Recovery and Recycling or  
                DRRR) upon request.

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

          2. Preempts local governments from requiring stores that  
             meet these provisions from implementing separate  
             recycling programs or from imposing a fee on plastic  
             bags.

          3. Sunsets the above provisions on January 1, 2013.

          This bill:

          1. Prohibits, on or after January 1, 2012, grocery stores  
             and chain pharmacies from providing a single-use  
             carryout bag to a customer at the point of sale, except  
             as authorized.








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          2. Prohibits, on or after January 1, 2013, convenience  
             stores and food marts with an off-sale alcohol permit  
             from providing a single-use carryout bag to a customer  
             at the point of sale, except as authorized.

          3. Allows the sale of recycled paper bags to a customer at  
             the point of sale for the store's actual cost of the  
             bag. 

          4. Requires stores to make reusable bags available for  
             purchase by consumers.

          5. Allows stores to provide free reusable bags as part of  
             limited promotional programs.

          6. Requires a store to provide Women, Infants, and Children  
             Supplemental Food Program (WIC) and Supplemental  
             Nutrition Assistance Program (Food Stamps) customers a  
             reusable bag or recycled paper bag at no cost.

          7. Requires grocery stores and chain pharmacies to continue  
             at-store collection of plastic bags and plastic film for  
             recycling similar to the current state mandate.

          8. Specifies that local jurisdictions with curbside  
             composting programs may allow stores to sell state  
             approved compostable carryout bags for their actual cost  
             at the point of sale.

          9. Requires, beginning January 1, 2013, a reusable grocery  
             bag producer to submit to DRRR a biennial certification,  
             including a certification fee established by DRRR, that  
             certifies that each type of reusable grocery bag that is  
             imported, manufactured, sold or distributed in the state  
             and provided to a store for sale or distribution meets  
             specified requirements.

          10.Requires DRRR to deposit the certification fees into the  
             Reusable Bag Account, which is established by the bill  
             in the Integrated Waste Management Fund, and requires  
             that moneys in the account be expended by DRRR, upon  
             appropriation by the Legislature, to implement the  
             certification requirements.








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          11.Provides that a violation of these certification  
             requirements will be subject to an administrative civil  
             penalty assessed by DRRR.  Requires DRRR to deposit  
             these penalties into the Penalty Subaccount, which the  
             bill creates, in the Reusable Bag Account, for  
             expenditure by DRRR, upon appropriation by the  
             Legislature, to implement the certification  
             requirements.

          12.Requires DRRR, by January 1, 2015, to submit a report to  
             the Legislature regarding the implementation of the  
             bill's provisions.

          13.Preempts, as of January 1, 2011, local regulations on  
             the use and sales of reusable bags, single-use carryout  
             bags, recycled paper bags, or other specified bags at  
             stores.

          14.Allows a city, county, city and county or the state to  
             impose civil penalties for a violation of the bill's  
             requirements, except for the certification requirements.

          15.Requires these civil penalties to be paid to the office  
             of the city attorney, city prosecutor, district  
             attorney, or Attorney General (AG), whichever office  
             brought the action, and allows the penalties collected  
             by the AG to be expended by the AG, upon appropriation  
             by the Legislature, to enforce the bill's provisions.

          16.Makes a one-time appropriation of $2 million from the  
             Recycling Market Development Revolving Loan Subaccount  
             in the Integrated Waste Management Account to DRRR to  
             provide loans and grants to encourage plastic bag  
             manufacturers to make bags with recycled content that  
             meet the requirements for reusable bags.

          17.Contains various definitions and terms for the purposes  
             of the bill, including "recycled paper bag" and  
             "reusable grocery bag."  Defines "single-use carryout  
             bag" to mean a bag made of plastic, paper, or other  
             material, that is provided by a store to a customer at  
             the point of sale and that is not a reusable grocery bag  
             that meets the requirements of this bill.  A single-use  
             carryout bag does not include a bag provided by a  







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             pharmacy to a customer purchasing a prescription  
             medication, or a non-handled bag used to protect a  
             purchased item from damaging or contaminating other  
             purchase items when placed in a recycled paper bag or  
             reusable bag.

          18.Defines "store" to mean a retail establishment that  
             meets any of the following requirements:
           
             A.    A full-line, self-service retail store with gross  
                annual sales of $2,000,000, or more, and which sells  
                a line of dry grocery, canned goods, or nonfood items  
                and some perishable items.
              
             B.    Has over 10,000 square feet of retail space and a  
                licensed pharmacy, as specified.

             C.    Is a convenience food store, foodmart, or other  
                entity engaged in the retail sale of a limited line  
                of goods that generally includes milk, bread, soda,  
                and snack foods and has a license to sell beer and  
                wine.
              
           Background  

          California taxpayers spend approximately $25 million  
          annually to collect and bury the 19 billion plastic bags  
          used every year.  However, these bags are rarely recycled;  
          DRRR estimates that less than five percent of all single  
          use plastic bags in the state are actually recycled.   
          Instead, local agencies spend millions more to dispose of  
          plastic bags and clean up discarded plastic bags.

          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 United States  
          Environmental Protection Agency, marine debris has become a  
          serious problem along shorelines, coastal waters,  
          estuaries, and oceans throughout the world.  It is  
          estimated that 60-80 percent of all marine debris, and 90  
          percent of floating debris, is plastic.  Marine debris can  







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          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.

           Comments  

          According to the author's office, this bill will  
          effectively deter the use of single-use bags by prohibiting  
          grocery stores and convenience stores from providing all  
          single-use carryout bags to a customer after 2012 and 2013,  
          respectively.  In lieu of single-use bags stores must make  
          reusable bags and 40 percent post consumer paper bags  
          available for purchase by the customer. This bill is an  
          effective policy approach that will move consumers to use  
          more sustainable alternatives.  The State of California has  
          a critical role to play in becoming a true leader in  
          eliminating single-use bag waste and preventing the  
          proliferation of marine debris.  The passage of this bill  
          will move California forward in breaking our addiction to  
          single-use bags.   

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          Appropriates $2,000,000 from the Recycling Market  
          Development Revolving Loan Subaccount, which this bill  
          creates, in the Integrated Waste Management Account to DRRR  
          for the purposes of providing loans and grants for the  
          creation and retention of jobs and economic activity in the  
          manufacture and recycling of plastic bags that use recycled  
          content.

           SUPPORT  :   (Verified  8/30/10)

          Heal the Bay (source)







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           1 Bag at a Time, Inc.
           7th Generation Advisors 
           American Federation of State, County and Municipal  
            Employees 
           Amerigreenbag.com
           Associations of Communities United of South Los Angeles 
           Ballona Creek Renaissance 
           Bay Area Council 
           California Association of Environmental Health  
            Administrators
           California Coastal Coalition 
           California Coastkeeper Alliance 
           California Democratic Party - Environmental Caucus 
           California Grocer's Association 
           California Labor Federation, AFL-CIO
           California League of Conservation Voters 
           California Refuse Recycling Council 
           California Retailers Association 
           California State Lands Commission 
           Californians Against Waste
           Central Contra Costa Solid Waste Authority 
           Chico Bag
           Cities of Berkeley, Carpinteria, Chula Vista, Del Mar, El  
            Cerrito, Imperial Beach, Long Beach, Los Angeles, Malibu,  
            Manhattan Beach, Milpitas, Newport Beach, Palo Alto,  
            Pasadena, Sacramento, San Buenaventura, San Clemente, San  
            Francisco, San Jose, San Rafael, Santa Barbara, Santa  
            Monica, Sebastopol, Solana Beach, South Lake Tahoe, and  
            Ventura
           Clean South Bay
           Clean Water Action California
           Communities for a Better Environment 
           Community Environmental Council 
           Congresswoman Susan Davis 
           Councilmember Jerome Stocks, City of Encinitas 
           Councilmember Marti Emerald, City of San Diego 
           Councilmember Nancy Gardner, City of Newport Beach
           Councilmember Sherri S. Lightner, City of San Diego 
           Councilmember Suja Lowenthal, City of Long Beach
           Councilmember Teresa Barth, City of Encinitas 
           Counties of Los Angeles, Marin, Monterey, San Francisco,  
            and Santa Clara 
           Defender of Wildlife 
           Deputy Major Maggie Houlihan, City of Encinitas 







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           Downtown Encinitas MainStreet Association
           Duro Paper Bag Company 
           Earth Resource Foundation 
           Earthwise Bag Company 
           East Bay Municipal Utilities District
           Ecology Center 
           Endangered Habitats League
           Environment California 
           Envirosax
           Flip & Tumble, LLC
           ForestEthics 
           Fresh and Easy Neighborhood Market
           Global Green
           Global IQ
           Green Chamber of San Diego 
           Green Sangha
           Humboldt Coastkeepers
           Humboldt County Board of Supervisors 
           Humboldt Waste Management Authority 
           JPS Global Investments 
           Lake Balboa Neighborhood Council 
           League of Cities 
           Livermore Chamber of Commerce
           Los Angeles County Solid Waste Management Committee/  
            Integrated Waste Management Task Force 
           Marin County Hazardous and Solid Waste Management Joint  
            Powers Authority 
           Mayor Anja Reinke, City of Burbank
           Monterey Bay Aquarium 
           Monterey Regional Waste Management District 
           Monterey Regional Waste Management District
           Natural Resources Defense Council 
           Neighborhood Market Association
           Northcoast Environmental Center 
           Oak Park Neighborhood Association 
           Ocean Conservancy 
           Oceana
           Orange County Business Council
           Orange County Coastkeeper
           Ormond Beach Observers 
           Planning and Conservation League 
           Plastic Pollution Coalition
           Project GreenBag
           PW Supermarkets, Inc







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           Rainforest Action Network
           Regional Solid Waste Association 
           Rickshaw Bag Works Inc
           Rite Aid
           Roplast
           Safeway
           San Diego Coastkeeper 
           San Diego County Disposal Association 
           San Diego County Integrated Waste Management Citizens  
            Advisory Committee 
           San Francisco Chamber of Commerce
           San Francisco Planning and Urban Research Association
           San Luis Obispo County Integrated Waste Management  
            Authority
           Santa Barbara Channelkeeper
           Santa Monica Bay Restoration Commission 
           Santa Monica Baykeeper
           Save Mart Supermarkets
           Save the Bay 
           Sierra Club of California
           Silicon Valley Leadership Group
           Solid Waste Solutions, Inc 
           Sonoma County Regional Climate Protection Authority 
           Sonoma County Waste Management Agency 
           South Bay Cities Council of Governments
           Steven Bochco Productions
           Super A Food, Inc
           Surfers Environmental Alliance 
           Surfrider Foundation 
           Teens Turning Green 
           The Northern California Recycling Association 
           Turtle Island Restoration Network
           Union of Concerned Scientists 
           Urban Semillas
           Valley Industry and Commerce Association
           Washington Elementary PTA
           Western States Council of the United Food & Commercial  
            Workers 
           Wild Heritage Planners
           Wildcoast
           WinCo Foods 
           Wisdom Academy for Young Scientists
           Youth Opportunities for High School and Associations of  
            Communities United of South Los Angeles 







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           OPPOSITION  :    (Verified  8/27/10)

          American Chemistry Council 
          American Forest and Paper Association
          Biodegradable Products Institute 
          Bradley Packaging Systems 
          California Film Extruders and Converters Association 
          California Forestry Association 
          Californians for Extended Producer Responsibility 
          Command Packaging
          Corona Chamber of Commerce 
          Crown Poly
          Diversified Transportation Services 
          Great American Packaging
          Heritage Bag
          Hilex Poly
          Howard Jarvis Taxpayers Association 
          International Paper
          Long Beach Chamber of Commerce
          Metabolix
          Redondo Beach Chamber of Commerce 

           ARGUMENTS IN SUPPORT  :    According to the bill's sponsor,  
          Heal the Bay:

            "Californians use an estimated 19 billion single-use  
            plastic bags every year.  We can no longer recycle our  
            way out of this problem.  Despite efforts to expand  
            recycling programs, less than 5% of single-use plastic  
            bags are currently being recycled.  The rest of these  
            bags inevitably end up in our landfills or as litter,  
            clogging stormdrain systems, and make their way to our  
            waterways and ocean.  

            "The cleanup of litter from single-use bags puts an  
            additional strain on our economy.  The state spends an  
            estimated $25 million annually to clean up and landfill  
            littered plastic bags.  One study has estimated that the  
            taxpayer cost to subsidize the recycling, collection, and  
            disposal of plastic and paper bags could amount to as  
            much as 17 cents per bag.  This figure does not include  
            the additional costs that local governments incur  
            annually for cleaning littered streets, beaches and  







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            installing trash control devices to comply with total  
            maximum daily load limits (TMDLs) for trash under the  
            Clean Water Act.

            "Paper bags are not a viable alternative to plastic bags.  
             Paper bags, particularly those made of virgin materials,  
            contribute to deforestation, greenhouse gas emissions,  
            and waterborne wastes from the pulping and paper making  
            process.  Compostable plastic bags are also problematic  
            because they are lightweight and may easily become  
            litter.  They do not readily degrade in aquatic  
            environments, and instead require industrial composting  
            facilities to property break down.  Only a small number  
            of cities currently support the infrastructure to collect  
            and dispose of compostable bags properly.

            "San Francisco, Malibu, Fairfax, and Palo Alto have  
            banned plastic bags and at least 20 more cities in  
            California are considering this approach.  Rather than  
            taking a piecemeal city-by-city approach, AB 1998 will  
            create one uniform policy for addressing all types of  
            single-use bags to encourage consumers to use reusable  
            bags, the most sustainable alternative.

            "The State of California has a critical role to play in  
            becoming a true leader in eliminating plastic bag waste  
            and preventing the proliferation of marine debris.  The  
            passage of AB 1998 will be a major step in breaking our  
            addition to single-use bags."

           ARGUMENTS IN OPPOSITION  :    The American Chemistry Council  
          (ACC) writes:  "Though ACC supports the intent of [this]  
          legislation to reduce plastic bag litter and waste, we  
          believe that the most appropriate policy - both  
          environmentally and economically - is to focus on  
          increasing and promoting the recycling infrastructure so  
          that bags and other films plastics can be collected and  
          used as feedstock in the production of other products, such  
          as new bags, pallets, containers, crates, and pipe."

          ACC contends that there will be some unintended  
          consequences if this bill becomes law.  They point out that  
          "California law mandates that certain grocery stores and  
          pharmacies provide recycling bins so that consumers can  







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          return bags for recycling.  This local infrastructure also  
          provides consumers with the opportunity to recycle other  
          plastic wraps such as produce and bread bags, dry cleaning  
          bags, wraps from paper towels, bathroom tissue, napkins,  
          and even the plastic bags used to deliver newspapers.  By  
          banning plastic bags, grocery stores will no longer be  
          required to provide recycling bins for these products and a  
          critical consumer recycling infrastructure would be  
          dismantled.  Such a result does not make environmental  
          sense."

          Other opponents to this bill argue that if this bill  
          becomes law it would:

          1. Eliminate manufacturing jobs in California at a time  
             when more jobs are needed.  These plants cannot be  
             retooled.  It would take millions of dollars.

          2. Dismantle a growing plastic recycling program thus  
             creating more litter since this industry recycles other  
             plastic film products.

          3. Increase green house gas emissions due to alternate,  
             less environmentally friendly, products that will now  
             have to be offered.

          4. Expose your constituents to possible health hazards as  
             not everyone has the ability to wash reusable bags.


           ASSEMBLY FLOOR  : 
                                                                                 AYES:  Ammiano, Arambula, Bass, Beall, Block, Blumenfield,  
            Bradford, Brownley, Buchanan, Caballero, Carter, Chesbro,  
            Coto, Davis, De La Torre, De Leon, Eng, Evans, Feuer,  
            Fong, Fuentes, Furutani, Galgiani, Hayashi, Hill,  
            Huffman, Jones, Bonnie Lowenthal, Ma, Monning, Nava, V.  
            Manuel Perez, Portantino, Ruskin, Salas, Saldana,  
            Skinner, Solorio, Swanson, Torlakson, Yamada, John A.  
            Perez
          NOES:  Adams, Anderson, Bill Berryhill, Blakeslee, Conway,  
            DeVore, Emmerson, Fuller, Gaines, Garrick, Gilmore,  
            Hagman, Harkey, Huber, Jeffries, Knight, Logue, Mendoza,  
            Miller, Nestande, Niello, Nielsen, Norby, Smyth, Torrico,  
            Tran, Villines







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          NO VOTE RECORDED:  Tom Berryhill, Charles Calderon, Cook,  
            Fletcher, Hall, Hernandez, Lieu, Silva, Audra Strickland,  
            Torres, Vacancy


          TSM:mw  8/30/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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