BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB1454
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          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  SB 1454 (DeSaulnier) - As Amended:  June 22, 2010 

          Policy Committee:                              Natural  
          ResourcesVote:6-0
                        Judiciary                             7-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill expands to all plastic consumer products existing  
          restrictions on the sale of certain plastic products labeled as  
          "compostable" or "marine biodegradable" and makes other label  
          restrictions.  Specifically, this bill:

          1)Repeals existing, separate prohibitions on the sale of plastic  
            bags and food containers, respectively, labeled as  
            "compostable" or "marine biodegradable" unless the product  
            meets applicable American Society for Testing and Materials  
            (ASTM) standard specification for the term, and applies those  
            prohibitions to the sale of any plastic consumer product.

          2)Prohibits the sale of a plastic consumer product labeled with  
            the following: "biodegradable;" "degradable;" "decomposable;"  
            any term that implies the product will breakdown, fragment or  
            decompose; or a qualified claim, such as "home biodegradable."

          3)Exempts a person from the prohibition described under 2),  
            above, if the Department for Resources Recycling and Recovery  
            (Calrecycle) adopts a standard for the term or qualified claim  
            more stringent than ASTM's standard specification for  
            "compostable" or "marine biodegradable" and the product meets  
            that standard.

          4)Authorizes Calrecycle to review a standard for the prohibited  
            terms newly adopted by ASTM and any other organization and to  
            advise the Legislature concerning the standard. 

          5)Authorizes a local government or the state to impose civil  








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            penalties for violation of the bill's provisions, as follows:   
            $500/day for first offence; $1,000/day for second offense;  
            $2,000 for subsequent offenses.

          6)Directs the Attorney General (AG) to collect penalties for  
            state actions and authorizes the AG, upon appropriation, to  
            use penalty revenues to enforce the bill's provisions

          7)Declares state agency costs associated with implementation of  
            this bill to be recoverable by the AG from liable parties.

          8)Requires a manufacturer or supplier to provide a person, upon  
            request, easily understandable and scientifically accurate  
            documentation of compliance with the provisions of this bill.


           FISCAL EFFECT  

          1)Minor, absorbable ongoing costs to Calrecycle to review  
            standards.  (Integrated Waste Management Fund (IWMF).)

          2)Potential minor, absorbable ongoing costs to Calrecycle to  
            adopt standards and make recommendations to the Legislature.   
            (IWMF.)

          3)Potential ongoing costs to Calrecycle of an unknown amount,  
            but possibly in the tens of thousands of dollars annually, to  
            enforce and oversee implementation of the bill's provisions.   
            (IWMA.)  (The bill does not require enforcement or oversight  
            by Calrecycle.  The department, based on its experience with  
            implementation of past legislation-AB 2449, Levine (Chapter  
            845, Statutes of 2006)-that similarly had no enforcement or  
            oversight provisions of the Integrated Waste Management Board  
            (the department's predecessor), anticipates pressure to  
            oversee and enforce the bill's implementation, nonetheless.

          4)Likely ongoing costs to the AG of an unknown amount to enforce  
            the provisions of this bill.  (GF.)

          5)Likely ongoing revenue of an unknown amount from imposition of  
            civil penalties.  (GF.)


           COMMENTS  









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           1)Rationale  .  The author describes many products currently sold  
            in California as being labeled with end-of-life claims, such  
            as "compostable" and "biodegradable," even though those  
            products do not meet, not are they required to meet,  
            scientific standards for the meaning of those terms.  The  
            author notes that consumers buy products that, because of the  
            product's labeling, they mistakenly believe are less harmful  
            to the environment or that may be placed in compost bins or  
            similar "green" waste containers.  The author describes the  
            consequences as contamination of the waste stream, added waste  
            management costs, and the placement of many plastic products  
            in the landfill contrary to consumer expectations.  The author  
            contends this bill will treat similar products similarly by  
            extending existing prohibitions against the mislabeling of  
            plastic bags and food packaging to all plastic consumer  
            products.  The result, the author argues, will be  
            scientifically accurate product labels, consumer education,  
            proper disposal of plastic products, and reduced waste  
            management costs.

           2)Background  .  

              a)   Regulation of Use of End-of-Life Labels  .  Current law  
               includes two, separate provisions concerning the placement  
               of end-of-life management claims on plastic bags and food  
               and beverage containers, respectively. For each these  
               categories of products, statute prohibits the sale of a  
               product labeled as "compostable" or "marine biodegradable"  
               unless the bag or food or beverage container meets  
               standards for those terms as specified by the ASTM.   
               Statute also prohibits the sale of any of these categories  
               of products labeled "biodegradable," "degradable,"  
               "decomposable" or any form of those terms. 

               The rationale behind regulation of use such of end-of-life  
               labels is that, unless tied to a scientific standard-such  
               as ASTM's standard specification-these terms are vague and  
               lead to consumer confusion and improper disposal.   
               Consumers may choose to purchase products with these labels  
               because they assume they will be composted, will not  
               accumulate in a landfill, or will, in some way, be disposed  
               of in an environmentally benign way.  Because many of these  
               products, despite their label, are not truly compostable,  
               or only degrade under certain conditions not typically  
               found in a compost facility, many compost operators remove  








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               all plastic products, regardless of label, from their  
               compostable materials.  In the end, most products end up in  
               a landfill where degradation is intentionally slow,  
               regardless of product labels.

              b)   American Society for Testing and Materials  .  ASTM  
               describes itself as "one of the largest voluntary standards  
               development organizations in the world-a trusted source for  
               technical standards for materials, products, systems, and  
               services?that guides design, manufacturing and trade in the  
               global economy."

           3)Related Legislation  .  SB 228, DeSaulnier, requires compostable  
            plastic bag manufacturers, effective July 1, 2011, to ensure  
            that such bags are readily identifiable and distinguishable  
            from other plastic bags by specified visual indicators.  The  
            bill is pending before this committee.  

           4)Support  .  This bill is supported by the City and County of San  
            Francisco, which operates a curbside compost collection  
            program, among organizations.

          5)Opposition  .  The only registered opposition to this bill is  
            Green Genius, a company that makes plastic trash bags that  
            biodegrade under typical landfill conditions, which the  
            company describes as desirable.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081