BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2139
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          Date of Hearing:  April 19, 2010

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                    AB 2139 (Chesbro) - As Amended:  April 6, 2010
           
          SUBJECT  :  Solid waste:  product stewardship.

           SUMMARY  :   Enacts the California Product Stewardship Act (Act).   
          The Act requires the Department of Resources Recycling and  
          Recovery (DRRR) to administer a program to develop product  
          stewardship protocols to foster "cradle-to-cradle" producer  
          responsibility for specified products.  

           EXISTING LAW  

          1)Pursuant to the California Integrated Waste Management Act of  
            1989, requires local governments to divert 50% of solid waste  
            generated from landfill disposal through source reduction,  
            reuse, and recycling.  

          2)Establishes the California Oil Recycling Enhancement Act,  
            which requires manufacturers of used oil to pay a fee of 4  
            cents per quart (16 cents per gallon) to DRRR.  DRRR then pays  
            a recycling incentive of 4 cents per quart to industrial  
            generators, curbside collection program operators, and  
            certified used oil collection centers for used oil collected  
            from the public and transported for recycling.  This Act  
            includes related grants and loans, development and  
            implementation of an information and education program, and a  
            reporting, monitoring, and enforcement program.  

          3)Establishes the Electronic Waste Recycling Act of 2003, which  
            requires a retailer selling a covered electronic device (CED)  
            in California to collect a recycling fee (between $8 and $25)  
            from the consumer.  Fees are deposited into the Electronic  
            Waste Recovery and Recycling Account, which is continually  
            appropriated to DRRR and the Department of Toxic Substances  
            Control (DTSC) to make electronic waste recovery payments to  
            cover the net cost of an authorized collector in operating a  
            "free and convenient" system for collecting, consolidating,  
            and transporting CEDs, and to make electronic waste recycling  
            payments to cover an electronic waste recycler's average net  
            cost of receiving, processing, and recycling CEDs.  The Act  
            defines CED as a product that contains a video display device  








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            4 inches and larger.  

          4)Establishes the Cell Phone Recycling Act of 2004, which  
            requires every retailer of cell phones to have in place a  
            system for the acceptance and collection of used cell phones  
            for reuse, recycling, or proper disposal.  

          5)Establishes the Rechargeable Battery Recycling Act of 2006,  
            which requires every retailer of rechargeable batteries to  
            have in place a system for the acceptance and collection of  
            used rechargeable batteries for reuse, recycling, or proper  
            disposal.  

          6)Establishes the Mercury Thermostat Collection Act of 2008,  
            which requires manufacturers to establish and maintain a  
            program for out-of-service mercury-added thermostats.   
            Requires the program to include collection, handling, and  
            arranging for appropriate management of out-of-service  
            mercury-added thermostats.   

          7)Requires pharmaceutical manufacturers that sell or distribute  
            a medication in California, which is usually self-injected at  
            home with a hypodermic needle to submit to the DRRR a plan  
            that describes any actions taken by the manufacturer for the  
            safe collection and proper disposal of the waste devices by  
            July 1, 2010, and annually thereafter.  

           THIS BILL  :
           
           1)Specifies that the Act is intended to provide sound product  
            stewardship protocols that encourage producers to research  
            alternatives during the product design and packaging phases to  
            foster producer responsibility and reduce the end-of-life  
            environmental impacts.  

          2)Establishes three "covered products" to be included in the  
            Act:

             a)   Home generated medical sharps, including hypodermic  
               needles, pen needles, intravenous needles, and lancets;

             b)   Small non-reusable propane containers; and, 

             c)   Household pesticides intended for home use, except those  
               which are primarily intended for residential cleaning and  








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               disinfection.

          3)Clarifies that actions taken under the Act do not interfere  
            with existing efforts of DTSC relating to green chemistry.

          4)Establishes requirements for the producers to create a product  
            stewardship plan and requires the plan to be submitted by the  
            producer to DRRR by September 30, 2011.  Requires DRRR to  
            approve or disapprove the plan by January 1, 2012.  Should  
            DRRR disapprove the plan, requires notification to the  
            producer, who is charged with revising the plan within 30  
            days. 

          5)Beginning July 1, 2012, prohibits the sale of a covered  
            product unless the producer is in compliance with the Act.  To  
            be in compliance the producer must:

             a)   Submit a product stewardship plan or participation in a  
               stewardship organization.  The product stewardship plan  
               must include:

               i)     A description of the covered product and associated  
                 brands covered by the plan;

               ii)    Performance goals, including a description of how  
                 the performance goals will be achieved and how results  
                 will be measured;

               iii)   Collection, reuse, and recycling rates for the  
                 covered product;

               iv)    If the covered product is prohibited from being  
                 disposed of at a solid waste disposal facility, the  
                 performance goal shall include a schedule to accomplish a  
                 100 percent collection rate;  

               v)     Financing methods for the plan; 

               vi)    Strategies for managing and reducing the life cycle  
                 impacts of the covered product; and,

               vii)   Education and outreach activities.

             b)   Pay operational costs associated with the Act.  









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          6)Beginning June 30, 2013, requires producers and stewardship  
            organizations operating under the Act to submit an annual  
            report to DRRR, which includes the status of performance  
            goals, a description of outreach and educational activities,  
            and actions undertaken to manage and reduce the life-cycle  
            impacts of the covered product.  

          7)Establishes the Extended Producer Responsibility Account  
            (Account) and the Extended Producer Responsibility Penalty  
            Subaccount (Subaccount) in the Integrated Waste Management  
            Fund.  

             a)   Requires producers subject to the Act to submit an  
               unspecified administrative fee to DRRR to cover  
               administrative costs to be deposited into the Account.  

             b)   Requires all penalties collected under the Act to be  
               deposited into the Subaccount, which may be expended by  
               DRRR to cover costs of implementing the Act.  

             c)   Specifies that the Account and Subaccount may be  
               expended by DRRR for incentives to enhance recyclability  
               and redesign efforts and to reduce environmental and safety  
               impacts of covered products.  

          8)Establishes enforcement provisions for the Act, including a  
            public hearing process.  Specifies that DRRR take into account  
            the "good faith effort" of a producer toward implementing the  
            plan.  Establishes unspecified civil liability for violations  
            of the Act.  
           
          FISCAL EFFECT  :  Unknown

           COMMENTS  :

           1)Background  :  Product stewardship is a strategy to "close the  
            loop" by placing primary responsibility for life cycle  
            management on producers.  This approach is similar to that  
            being pursued for green chemistry in California.   In  
            September 2007, the former California Integrated Waste  
            Management Board (CIWMB) adopted an EPR Framework as an  
            overall policy priority and committed to seek statutory  
            authority.   Prior to adopting the Framework, CIWMB conducted  
            a stakeholder workshop on EPR.  The Framework was adopted by  
            CIWMB in a public board meeting, which included comments from  








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            stakeholders and the public. 

          The EPR Framework is a strategy to share responsibility among  
            those who make, sell, use, and dispose of products, while  
            placing the primary responsibility on producers to reduce a  
            product's lifecycle impacts.  In other words, those who  
            benefit from a product would share in the costs associated  
            with the environmental impacts of the product.  
           
           In addition to encouraging recycling and waste reduction,  
            product stewardship also addresses another pressing concern.   
            DTSC routinely tests products for toxicity to determine if the  
            product is hazardous and therefore prohibited from landfill  
            disposal.  However, there is no system in place for the  
            management of these products (or the toxins they include).  

          Currently, the costs associated with managing household products  
            prohibited from landfill disposal are borne by local  
            governments.  According to the League of California Cities,  
            "Cities and counties in California spend upwards of $500  
            million annually to manage products banned from landfills as  
            well as those disposed of at the landfill - a cost that local  
            governments ultimately end up passing on to the consumers in  
            the form of fees on solid waste services."  

           2)This bill  :  According to the author, "The California Product  
            Stewardship Act requires manufacturers of hazardous products  
            to create products that are less toxic, more durable and  
            easier to recycle when they enter the waste stream.  AB 2139  
            proposes an Extended Producer Responsibility Framework which  
            would establish one law to address a wide range of toxic  
            products including medical waste like hypodermic needles,  
            household pesticides, small propane tanks, and other hazardous  
            waste found around the home.  These waste end up in California  
            landfills and make a significant impact on our environment."

          The goal of the EPR framework is to establish one law to address  
            a wide range of products that end up in California landfills  
            and have a significant impact on our environment.   The author  
            states "by having producers share in the costs of managing  
            product discards, EPR harnesses the power of the free market  
            to drive environmental improvement."   This bill is modeled  
            after the former CIWMB's EPR Framework.   

          3)Medical Sharps  :  An estimated one million Californians inject  








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            medications outside traditional health care facilities and  
            generate approximately 389 million sharps each year.  The  
            numbers of patients using injectable medications will continue  
            to grow because it is an effective delivery method for  
            medications used to treat conditions including diabetes,  
            multiple sclerosis, infertility, migraines, allergies, and  
            hemophilia.  California was one of the fore-runners in  
            addressing the dangers of sharps in the waste stream with the  
            passage of SB 1305 (Figueroa), Chapter 64, Statutes of 2006,  
            which prohibits the disposal of medical sharps in California's  
            landfills.  Although illegal, most of these used needles still  
            end up in household trash and pose a significant risk of  
            injury and/or infection to custodial workers and solid waste  
            employees.
           
          4)Universal waste  :  Universal wastes are household hazardous  
            wastes that contain mercury, lead, cadmium, copper and other  
            substances hazardous to human and environmental health.  In  
            general, universal waste may not be discarded in solid waste  
            landfills.  Examples of these wastes are batteries,  
            fluorescent tubes, and some electronic devices.  This bill  
            includes two universal wastes that are routinely disposed with  
            household trash and pose a significant risk to solid waste  
            employees, non-empty small propane tanks and pesticide  
            containers. 
           
          5)Prior and Related Legislation  :
           
              a)   AB 289 (Chesbro) 2009:  Proposed the California Product  
               Stewardship Act of 2009 (Act).  The Act requires the  
               California Integrated Waste Management Board (CIWMB) to  
               administer a program to provide environmentally sound  
               product stewardship protocols to foster "cradle-to-cradle"  
               producer responsibility.  (Held in the Assembly  
               Appropriations Committee)

             b)   AB 1343 (Huffman):  Creates an architectural paint  
               recovery program to require manufacturers or designated  
               stewardship organizations to develop and submit an  
               architectural paint stewardship plan to reduce the  
               generation of post consumer paint, promote the reuse of  
               post consumer architectural paint, and manage the  
               end-of-life of post consumer architectural paint, in an  
               environmentally sound fashion, including collection,  
               transportation, processing, and disposal.  (Held in the  








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               Senate Appropriations Committee) 

             c)   AB 2176 (Blumenfield):  Enacts the California Lighting  
               Toxics Reduction and Jobs in Recycling Act (Act) which  
               establishes a producer responsibility program for  
               mercury-containing lamps and a fee program for inefficient  
               lamps.  (Scheduled for hearing in Assembly Environmental  
               Safety and Toxic Materials on April 20)

             d)   AB 2398 (J. Perez):  Requires, by September 30, 2011, a  
               producer or product stewardship organization to submit a  
               carpet stewardship plan which would be required to include  
               specified elements, including performance goals.   
               (Scheduled for hearing in this committee on April 19)

             e)   SB 1100 (Corbett):  Creates a product stewardship  
               program for household batteries.  (Referred to the Senate  
               Appropriations Committee)

           1)Double Referred  :  This bill was heard by the Assembly  
            Environmental Safety and Toxic Materials Committee on April  
            14, and passed with a vote of 6-3.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Association of Bay Area Governments
          California Product Stewardship Council
          California State Association of Counties
          Californians Against Waste
          Central Contra Costa Solid Waste Authority
          City and County of San Francisco
          Del Norte Solid Waste Management Authority
          Humboldt Waste Management Authority
          League of California Cities
          Marin Sanitary Service
          Santa Clara Board of Supervisors
          Sierra Club, California
          Solid Waste Association of North America













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           Opposition 
           
          American Chemistry Council
          California Chamber of Commerce
          California Manufacturers and Technology Association
          Chemical Industry Council of California 
          Consumer Specialty Products Association
          Grocery Manufacturers Association
          Monsanto
          Responsible Industry for a Sound Environment
          Soap and Detergent Association 
          Western Plant Health Association

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