BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:   April 13, 2010

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                  Pedro Nava, Chair
                  AB 2176 (Blumenfield) - As Amended:  April 5, 2010
           
          SUBJECT  :  Hazardous waste: lighting products.

           SUMMARY  :   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.  Specifically,  this bill  :  

          1)Enacts the Act and establishes legislative intent to require  
            the recycling of all unwanted mercury-containing lamps by  
            January 1, 2020.

           2)Defines terms for the purposes of the Act  , including: 
             a)   "Class 1 lamp" as a lamp containing mercury; 
             b)   "Class 2 lamp" as a lamp that produces fewer than 45  
               lumens per watt; and, 
             c)   "Mercury burden" as the amount of mercury contained in a  
               covered lamp, plus the average amount of mercury that is  
               expected to be released into the environment by electrical  
               generation necessary in the use of a covered lamp,  
               including a class 2 lamp, during the course of its useful  
               life. 


           3)Establishes a product stewardship program for class 1 lamps.

              a)   Requires, on or before September 30, 2011, a producer of  
               a class 1 lamp, either individually or jointly with other  
               producers, to submit a product stewardship program plan  
               (plan) to the Department of Toxic Substances Control  
               (DTSC).  

             b)   Requires the person submitting the plan to consult with  
               specified stakeholders.  

             c)   Requires the plan to include information such as  
               descriptions of the participants of the plan; a collection  
               system; educational and outreach efforts; a financing  
               system; plans to reduce or eliminate the environmental  
               impacts of covered lamps; plans to recycle all class 1  








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               lamps that are sold on and after January 1, 2020; and, a  
               processing and disposal system (for which no federal or  
               state prison labor can be used).
             d)   Sets plan approval timelines and requirements.  
             e)   Requires, on or before January 1, 2012, a producer or  
               designated stewardship organization to implement the plan  
               approved by DTSC.
             f)   Requires, at least once every four years, the plan  
               operator to update and submit the plan.
             g)   Requires, on or before April 1, 2013, and on or before  
               each April 1 annually thereafter, the plan operator to  
               prepare and submit to DTSC a report for the immediately  
               preceding reporting period describing the effectiveness of  
               the program. 
             h)   Requires DTSC, based on the reports submitted, to  
               calculate the average mercury burden of all class 1 lamps  
               and the average cost associated with that recovery.
             i)   Requires the person that submits a plan to DTSC to enter  
               into an agreement with DTSC to pay DTSC for the costs  
               incurred by DTSC associated with the review, implementation  
               and enforcement of the plan.
           
          4)Establishes a fee program for class 2 lamps  .
             a)   Requires, on or before January 1, 2014, and on or before  
               January 1 annually thereafter, a producer of a class 2 lamp  
               to pay to the California Energy Commission (CEC) the fee  
               established by the CEC.
             b)   Requires, on or before June 30, 2012, the CEC to adopt  
               regulations that determine the amount of the fee.  Requires  
               the CEC to determine the amount of the fee based on the  
               mercury burden of class 2 lamps sold in the state, relative  
               to the average mercury burden of compact fluorescent lamps  
               and the average cost per compact fluorescent lamp paid by  
               the producers of class 1 lamps for the product stewardship  
               program.
             c)   Requires the regulations to require the CEC to set the  
               amount of the payment at a level necessary to provide  
               sufficient funds to implement this program.
             d)   Requires the CEC to deposit all fee revenues collected  
               in the Energy Efficiency Research Fund.
             e)   Authorizes the funds in the Energy Efficiency Research  
               Fund to be expended by the CEC to provide grants for energy  
               efficiency, toxics reduction and environmental impact  
               mitigation programs.









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           5)Reporting requirements  .  
             a)   Requires, on or before January 1, 2012, DTSC to issue  
               and post on its website a report concerning the status of  
               the collective product stewardship programs.
             b)   Requires, on or before October 1, 2013, and on or before  
               October 1 annually thereafter, DTSC to seek feedback from  
               stakeholders to determine the effectiveness and efficiency  
               of the program.  
             c)   Requires DTSC, if it determines that the requirements of  
               this bill have resulted in negative impacts on the  
               availability or purchase of energy efficient lighting in  
               the state, to report this information by January 1 of each  
               year to the Legislature.
             d)   Requires DTSC to provide information on its website  
               including lists of producers participating in an approved  
               product stewardship program, producers that have paid the  
               fee, and producers identified by DTSC as noncompliant.

           6)Prohibitions  .  
             a)   Prohibits, on and after January 1, 2012, a producer,  
               wholesaler, or retailer from selling or offering for sale a  
               class 1 lamp to a person in this state unless the producer  
               of that class 1 lamp is participating in a product  
               stewardship program under a plan approved by DTSC.
             b)   Prohibits, on and after January 1, 2014, a producer,  
               wholesaler, or retailer from selling or offering for sale a  
               class 2 lamp to a person in this state unless the producer  
               of that class 2 lamp has paid the fee required. 

           7)Enforcement requirements  .  Requires DTSC to send written  
            notice and issue compliance orders with a schedule for  
            achieving compliance for violators of the Act. 

          8)Authorizes DTSC, under Green Chemistry provisions, to further  
            regulate lamps.

          9)Makes legislative findings and declarations.  

           EXISTING LAW  :

          1)Pursuant to California Code of Regulations, Title 22, Division  
            4.5, Chapter 23, prohibits the disposal of some common or  
            "universal" wastes in solid waste landfills.  Universal wastes  
            are hazardous wastes that are generated by a wide variety of  
            sources that contain mercury, lead, cadmium, copper and other  








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            substances hazardous to human and environmental health.  

          2)Pursuant to Health and Safety Code 25251 et seq., requires  
            DTSC to adopt regulations by January 1, 2011, to identify and  
            prioritize chemicals of concern, to evaluate alternatives, and  
            to specify regulatory responses, including product stewardship  
            programs.

          3)Pursuant to the California Lighting Efficiency and Toxics  
            Reduction Act (Health and Safety Code 25210.9 and Public  
            Resources Code 25402.5.4. et seq.):
             a)   Prohibits the manufacture, on or after January 1, 2010,  
               of general purpose lights, as defined, for sale that  
               contain levels of hazardous substances prohibited in the  
               European Union (EU) pursuant to the RoHS Directive  
               ("Restriction on the Use of Certain Hazardous Substances in  
               Electrical and Electronic Equipment" or Directive  
               2002/95/EC.)
             b)   Prohibits the sale of general purpose lights, on or  
               after January 1, 2010, under the following circumstances:   
               the lights would be prohibited in the EU pursuant to the  
               RoHS Directive; the manufacturer has not provided specified  
               information about the lights to the DTSC; and the lights  
               are not certified as being free of levels of hazardous  
               substances that would prohibit their sale in California.
             c)   Required DTSC to convene a task force to consider and  
               make recommendations, on or before September 1, 2008, on  
               the proper collection and recycling of end-of-life general  
               purpose lights.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   
           Purpose of the bill  :  According to the author's office,  
          "Lighting is a significant source of environmental mercury  
          contamination?  Although [compact fluorescent lamps] CFLs use  
          75% less energy than traditional incandescent bulbs, if thrown  
          in the trash, CFLs can expose people and the environment to  
          harmful mercury vapor because they contain mercury in the bulb.   
          Currently, 90% of CFLs are not recycled in California.  One of  
          the principle reasons for a low recycling rate is that the  
          disposal and recycling opportunities for CFLs are currently  
          inconvenient or non-existent for most consumers?  In addition to  
          the health and environmental impacts from mercury, incandescent  
          bulbs have a variety of other environmental impacts including  








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          contributing to global warming, heavy metal emissions,  
          particulate matter emissions as well as nitrogen oxide (NOx) and  
          sulfur oxide (SOx) emissions.  All of these impacts impose  
          serious health and regulatory burdens on the State?  It is  
          therefore important to encourage the movement toward energy  
          efficient bulbs, or CFLs, while encouraging their proper  
          handling at end-of-life." 
           
          Health effects of mercury exposure  :  Under the Safe Drinking  
          Water and Toxic Enforcement Act of 1986 (Proposition 65),  
          mercury and mercury compounds were listed in 1990 as  
          reproductive toxicants.  According to the US EPA, mercury  
          exposure at high levels can harm the brain, heart, kidneys,  
          lungs, and immune system of people of all ages.

           Universal waste:   Universal wastes are hazardous wastes that are  
          ubiquitous and 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 most electronic devices.  Under California's  
          Universal Waste Rule, households were allowed to dispose of  
          fluorescent lamps, batteries, mercury thermostats, and  
          electronic devices in the trash through February 8, 2006.  While  
          these products are now prohibited in landfills, many consumers  
          dispose of them in the trash, creating an enormous cost and  
          resource burden on local jurisdictions.  For example, the County  
          of Santa Clara spent $150,000 to collect and recycle 81,000  
          pounds of fluorescent lighting alone in fiscal year 2008/09.


           Product stewardship:   According to the USEPA, product  
          stewardship is a product-centered approach to environmental  
          protection.  Also known as extended product responsibility  
          (EPR), product stewardship calls on those in the product life  
          cycle-manufacturers, retailers, users, and disposers-to share  
          responsibility for reducing the environmental impacts of  
          products.  Product stewardship recognizes that product  
          manufacturers must take on new responsibilities to reduce the  
          environmental footprint of their products.  AB 2176 takes a  
          product stewardship approach to managing an ubiquitous waste  
          that is prohibited in landfills.  

           Support:   Supporters of the bill argue, "This bill minimizes the  
          mercury impacts from lighting, promotes efficient lighting,  








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          provides critical assistance to overburdened local governments  
          tasked with disposing of mercury-containing bulbs, and creates  
          jobs in recycling programs?  Lighting is a significant source of  
          environmental mercury contamination for two reasons: (1)  
          electricity consumption from inefficient bulbs leads to  
          unnecessary power generation at coal fired power plants-the most  
          significant source of mercury contamination; and (2) some  
          efficient bulbs, like fluorescent lamps, cause less power-plant  
          related emissions but contain small amounts of mercury in the  
          bulb.  AB 2176 addresses both sources of mercury pollution from  
          lighting to minimize the harmful impacts of toxins in our  
          environment?  By requiring producers to set up and manage  
          recycling programs for mercury-containing bulbs, AB 2176 will  
          create new jobs in recycling all over California?  AB 2176  
          requires CFL producers, rather than local governments, to  
          develop, fund, and manage recycling programs.  This will ensure  
          that waste lighting products are kept out of landfills and  
          recycled responsibly by the private sector - and will protect  
          taxpayers from paying the price."

           Opposition:   Opponents of the bill argue, "AB 2176 would require  
          an expensive and unnecessary new program for the collection and  
          recycling of waste fluorescent lamps, which will both discourage  
          the use of energy efficient lighting and derail the progress  
          made to date in establishing a practical network of collection  
          locations for lamps.  [Assemblymember Blumenfield's] proposal  
          does not build on prior work in this area, but rather represents  
          a step backward.  Specifically, [this] bill would place  
          exclusive responsibility on lighting manufacturers, without any  
          role for utilities, retailers, recyclers, or government to  
          facilitate or fund a recycling infrastructure or to generate  
          responsible consumer behavior? The premise of [this] bill  
          ignores the consensus recommendations issued in 2008 by the  
          Department of Toxic Substances Control's Lamp Recycling Task  
          Force that was convened pursuant to AB 1109."  Those with a  
          "support if amended" position argue for clarification of  
          specific definitions, including "distributor" and "producer."  

           Related legislation:   Several bills purport to use a product  
          stewardship approach for various consumer products.  These  
          include:

          AB 283 (Chesbro).  Creates the California Product Stewardship  
          Act of 2009, and requires regulations to be developed by July 1,  
          2011, to implement a program for environmentally sound product  








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          stewardship protocols that encourage producers to research  
          alternatives during the product design and packaging phases, in  
          order to foster cradle-to-cradle producer responsibility and  
          reduce the end-of-life environmental impacts of the product.   
          (Held in the Assembly Appropriation Committee)

          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.  (Held in the Senate  
          Appropriations Committee) 

          AB 2139 (Chesbro).  Creates the California Product Stewardship  
          Act.  Develops a product stewardship program to address medical  
          sharps, containers used to contain pesticides, personal-use  
          propane tanks, personal butane lighters, and single-use food  
          packaging.  (Set for hearing in the Assembly Environmental  
          Safety and Toxic Materials Committee on April 13, 2010) 

          AB 2398 (J. Perez).  Requires, by September 30, 2011, a producer  
          or the product stewardship organization created by one or more  
          producers of carpet to submit a carpet stewardship plan which  
          would be required to include specified elements, including  
          performance goals. (Set for hearing in the Assembly Natural  
          Resources Committee on April 12, 2010)

          SB 1100 (Corbett).  Creates a product stewardship program for  
          household batteries.  (In the Senate Appropriations Committee)

           Issues:
          1)California's Lighting Task Force:   The Lighting Efficiency and  
            Toxics Reduction Act, established by AB 1109 (Huffman, 2007),  
            directed DTSC to convene the Lighting Task Force to consider  
            and make recommendations on methods of collection, recycling,  
            education, outreach, labeling, and designations for end of use  
            residential fluorescent lamps.  The Task Force released its  
            findings in September, 2008, which included a list of 13  
            recommendations.  While some recommendations seem to be  
            touched upon by this bill, such as the education and outreach  
            program should include a wide range of methods and media,  
            other recommendations seem absent, such as program  
            implementation should be a shared responsibility among all  








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            parties benefiting from the sale or use of fluorescent lights.  
             Should the requirements of this bill better align with the  
            recommendations of the Task Force?   
           
          2)California's Green Chemistry Initiative:  As part of the Green  
            Chemistry Initiative, in 2009 the Governor signed AB 1879  
            (Feuer) into law.  AB 1879 requires DTSC to adopt regulations  
            by January 1, 2011, to identify and prioritize chemicals of  
            concern, to evaluate alternatives, and to specify regulatory  
            responses where chemicals of concern are found in consumer  
            products.  One of the regulatory responses that DTSC is  
            authorized to take is imposing requirements for the  
            manufacturer to manage the product at the end of its useful  
            life, including recycling or responsible disposal of the  
            consumer product.  Are the requirements of this bill  
            duplicative to those already granted to DTSC and should light  
            bulbs be managed through the existing regulatory process  
            instead of through a separate, newly created program?

           3)Fee structure  :  This bill requires the CEC to determine the  
            amount of the fee that it must impose on class 2 (inefficient)  
            lamps based on the mercury burden of class 2 lamps sold in the  
            state, relative to the average mercury burden of compact  
            fluorescent lamps and the average cost per compact fluorescent  
            lamp paid by the producers of class 1 lamps for the product  
            stewardship program.  It also requires the CEC to set the  
            amount of the fee at a level necessary to provide sufficient  
            funds to implement this program.  It seems that the goal of  
            the fee is to encourage producer and consumer movement toward  
            less environmentally harmful lamps, but the fee structure is  
            unwieldy and does not take into account public health or  
            environmental impacts of lamps and electricity generation  
            beyond mercury burden.  Is mercury burden alone an appropriate  
            measurement of public health and environmental impact?  Are  
            the fees in this bill appropriately tied to the adverse  
            impacts of mercury and will they, in fact, contribute to the  
            mitigation of public health or environmental impacts of  
            lighting and electricity generation?

           4)Technical corrections  :  While this bill attempts to create  
            product stewardship and fee based programs to encourage more  
            energy efficient light bulbs and reduce hazardous waste  
            generated by light bulbs throughout their lifecyle, it is a  
            work in progress.  The author may wish to consider making the  
            following amendments:








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             a)   Conform the defintion section with existing definitions  
               in the Health and Safety Code; and, 

             b)   Conform the requirements of the bill with existing  
               universal waste requirements; and,

             c)   Require that mercury collected as a part of the system  
               established by the bill is reclaimed and recycled, rather  
               than disposed of.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           Natural Resources Defense Council (Sponsor)
          Breast Cancer Fund
          California Association of Environmental Health Administrators 
          California League of Conservation Voters
          Californians Against Waste
          California Product Stewardship Council
          California Resource Recovery Association
          Central Contra Costa Solid Waste Authority
          City and County of San Francisco
          County of Santa Clara- Board of Supervisors
          Environmental Defense Fund
          Environmental Working Group 
          Environment California
          Napa County
          Planning and Conservation League
          Stop Waste

           Opposition 
           General Electric Lighting
          OSRAM Sylvania, Inc.
          Phillips
          San Diego Gas and Electric (conveyed an opposed, support and a  
          support if amended position)

           Support if amended
           Pacific Gas and Electric 
          Southern California Edison 
           
          Analysis Prepared by  :    Shannon McKinney / E.S. & T.M. / (916)  
          319-3965