BILL ANALYSIS                                                                                                                                                                                                    �



                                                                SB 515
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    SB 515
           AUTHOR:     Corbett
           AMENDED:    As Introduced
           FISCAL:     Yes               HEARING DATE:     April 4, 2011
           URGENCY:    No                CONSULTANT:       Caroll 
           Mortensen
            
           SUBJECT  :    PRODUCT STEWARDSHIP:  HOUSEHOLD BATTERIES

            SUMMARY  :    
           
            Existing law  :

           1) Prohibits the disposal of some common or "universal" wastes 
              in solid waste landfills (California Code of Regulations, 
              Title 22, Division 4.5, Chapter 23).  Universal wastes are 
              hazardous wastes that are generated by a wide variety of 
              sources that contain mercury, lead, cadmium, copper and 
              other substances hazardous to human and environmental 
              health.  Examples of these wastes are household batteries, 
              fluorescent tubes, and some electronic devices.

           2) Pursuant to the Dry Cell Battery Management Act, 
              establishes requirements for the production and labeling of 
              consumer products with dry cell batteries and sets limits 
              for the amount of mercury in those batteries.  (Public 
              Resources Code �15000 et seq.). 

           3) Pursuant to the Rechargeable Battery Recycling Act, 
              establishes a mandatory take-back program for rechargeable 
              batteries at retail locations.  (�42451 et seq.).

           4) Pursuant to the Mercury Thermostat Collection Act of 2008, 
              requires manufacturers of mercury-added thermostats sold in 
              this state before January 1, 2006, to establish and 
              maintain a collection, transportation, recycling, and 
              disposal program for out-of-service mercury-added 
              thermostats.  (Health and Safety Code �25214.8.10 et seq.).










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           5) Pursuant to the Product Stewardship for Carpets Program, 
              requires manufacturers of carpet sold in California to 
              submit a carpet product stewardship plan to the Department 
              of Resources Recycling and Recovery (DRRR) that 
              demonstrates how it will manage its waste carpet.  (�42970 
              et seq.). 

           6) Pursuant to the Architectural Paint Recovery Program, 
              requires architectural paint manufacturers to develop and 
              implement a program to manage waste latex paint.  (�48700 
              et seq.). 

            This bill  :  

           1)Requires, by September 30, 2012, a producer or the product 
             stewardship organization created by one or more producers of 
             household batteries to develop and submit, in consultation 
             with stakeholders, a product stewardship plan (plan) to 
             DRRR.

           2)Defines "producer" as:

              a)   The person who manufactures the household battery and 
                who sells, offers for sale, or distributes that household 
                battery in the state under that person's own name or 
                brand, or

              b)   If there is no person who sells, offers for sale, or 
                distributes the household battery in the state under the 
                person's own name or brand, the producer of the household 
                battery is the owner or licensee of a trademark or brand 
                under which the household battery is sold or distributed 
                in the state, whether or not the trademark is registered, 
                or

              c)   If there is no person who is a producer of the 
                household battery as determined above, the producer of 
                that household battery is the person who imports the 
                household battery into the state for sale or 
                distribution. 

           3)Exempts household batteries that are sold in a covered 









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             electric device, as defined, and those that are not easily 
             removed or not intended to be removed from the product other 
             than by the manufacturer.

           4)Establishes requirements for the elements of the plan that 
             describe how it will institute, implement, finance, and 
             oversee a program to manage household batteries to achieve 
             the collection rates below.

           5)Establishes collection rates for household batteries of 25% 
             by January 1, 2015, 45% by January 1, 2017, and on January 
             1, 2018 and annually thereafter the manufacturer must 
             demonstrate continuous meaningful improvement in the 
             collection rate.

           6)Requires DRRR to review the plans and deem them complete or 
             incomplete within 45 days and establishes a procedure for 
             addressing deficiencies.

           7)Requires producers, on or before April 1, 2014, to submit an 
             annual report describing implementation of the plan 
             including sales data from the previous calendar year.

           8)Requires DRRR, on or before July 1, 2013, and annually 
             thereafter to list on its website a list of the brands of 
             household batteries that are in compliance.

           9)Prohibits the sale of household batteries in California 
             unless the producer has submitted a plan that has been 
             deemed complete.

           10)Requires producers to pay to DRRR administrative fees to 
             cover expenses for review of the initial plan and review of 
             the subsequent annual reports but specifies that the fees 
             cannot exceed costs to recover costs incurred to administer 
             and enforce this bill's requirements.

           11)Establishes the Household Battery Stewardship Account and 
             the Household Battery Stewardship Penalty Subaccount to 
             receive the administrative fees and penalties and specifies 
             that these funds are available for program implementation 
             upon appropriation by the Legislature.










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           12)Establishes a process to determine compliance with this 
             bill and issuance of related penalties.

           13)Allows DRRR to determine a finding of 'good faith effort' 
             in compliance with this article.  If that finding is not 
             made, specified fines are allowed.

           14)States that producer's involvement in implementing and 
             complying with this bill is not a violation of specified 
             anti-trust provisions. 

           15)Establishes an expedited permit process for universal waste 
             facilities.

           16)Makes extensive findings and declarations related to the 
             management of household batteries. 

            COMMENTS  :

            1)Purpose of Bill  .  According to the author, SB 515 will 
             require battery manufacturers to design, fund and operate a 
             stewardship program to properly manage batteries in order to 
             sell their products in California.  SB 515 will also require 
             battery manufacturers to meet collection goals each year and 
             report data to DRRR who will oversee the implementation of 
             each manufacturer's stewardship plan.  This bill is similar 
             to the author's SB 1100 of 2010.  

            2)Background  .

              a)   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 
                fluorescent lamps, batteries, mercury thermostats, and 
                electronic devices in the trash through February 8, 2006. 
                 This is no longer the case and they are banned from 
                landfill disposal.  Hazardous waste law describes 
                hazardous waste characteristics and generally states that 









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                wastes that demonstrate hazardous characteristics cannot 
                be disposed in a solid waste landfill.  These rules are 
                based upon the hazard traits of waste, not necessarily 
                their behavior in the landfill. 

              b)   Impact on Local Governments:  Currently, local 
                household hazardous waste collection programs are the 
                outlet for proper management of household batteries.  
                Cost estimates to manage waste batteries are on average 
                of $800 per ton (with some costing $2700 per ton), which 
                amounts to tens of millions of dollars each year.  Local 
                governments are also the default to manage the other 
                universal wastes such as electronics and fluorescent 
                light tubes.  This is in addition to other hazardous 
                wastes such as pesticides, paint, and chemicals that 
                can't be disposed in a solid waste landfill.  With 
                revenues decreasing and responsibilities increasing, 
                another solution is necessary to manage these products 
                that are problematic at the end-of-life.  Many local 
                governments have greatly decreased, or in some instances, 
                shuttered, their HHW programs leaving no management 
                options for the public. 

              c)   Product Stewardship:  This is a rapidly expanding 
                concept that addresses the challenges of managing 
                consumer products, like household batteries, that pose 
                costly and problematic issues at end-of-life.  According 
                to the California Product Stewardship Council, "Product 
                stewardship involves consumers, government agencies and 
                product manufacturers sharing the responsibility of 
                reducing the impact of product waste on public health, 
                the environment, and the economy.  Extended Producer 
                Responsibility (EPR) is a strategy to place a shared 
                responsibility for end-of-life product management on the 
                producers, and all entities involved in the product 
                chain, instead of the general public; while encouraging 
                product design changes that minimize a negative impact on 
                human health and the environment at every stage of the 
                product's lifecycle.  This allows the costs of treatment 
                and disposal to be incorporated into the total cost of a 
                product.  It places primary responsibility on the 
                producer, or brand owner, who makes design and marketing 
                decisions.  It also creates a setting for markets to 









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                emerge that truly reflect the environmental impacts of a 
                product, and to which producers and consumers respond."

              d)   Call2Recycle and Current Battery Recycling Efforts: 
                There is a non-profit organization that is working in 
                North American to collect rechargeable batteries.  
                According to their information, "Call2Recycle is a 
                program of the Rechargeable Battery Recycling Corporation 
                (RBRC) promoting environmental sustainability by 
                providing free battery and cell phone recycling in North 
                America.  The Call2Recycle program for rechargeable 
                battery and cell phone recycling is available to 
                residents, retailers, businesses, communities, 
                municipalities and public agencies in the U.S. and 
                Canada.  The program was created in 1994 and is funded by 
                battery and product manufacturers to raise awareness 
                about the importance of battery recycling and to promote 
                product stewardship initiatives.  Call2Recycle is funded 
                by product manufacturers across the globe committed to 
                environmentally-sound recycling of rechargeable batteries 
                and cell phones.  These manufacturers representing 90% of 
                the rechargeable power industry place the RBRC recycling 
                seal on their rechargeable products and batteries, 
                letting users know that the batteries need to be recycled 
                rather than thrown in the trash."

                This group is actively working with the major 
                manufacturers of alkaline batteries and the author's 
                office and other stakeholders on SB 515. 

            3)Support and Opposition Arguments  .  Supporters generally 
             state that the product stewardship approach is the preferred 
             way to manage problematic waste streams including household 
             batteries and ensures the end-of-life management costs are 
             not passed on to local governments or taxpayers. Many state 
             that they believe that the program will result in high 
             recovery rates because of increased convenience. 

             Groups in opposition generally state that SB 515 unfairly 
             places responsibility for batteries contained in products on 
             the producer of the product, not the maker of the battery.  
             They also state that the proposed program would be overly 
             burdensome and increase costs.  Specifically, 









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             Hewlett-Packard which has a take-back program for its 
             branded products would like to see an exemption recognizing 
             its existing programs. 
            
           SOURCE  :        Stopwaste.org (Alameda County) 

           SUPPORT  :       Californians Against Waste
                          California Retailers Association
                          California State Association of Counties
                          Center for Environmental Health
                          Central Contra Costa Sanitary District
                          Clean Water Action
                          Contra Costa Clean Water Program
                          Environment California
                          Humboldt Waste Management Authority
                          League of California Cities
                          Los Angeles County Solid Waste Management 
                          Committee
                          Monterey Regional Waste Management District
                          Napa Recycling and Waste Services
                          City of Roseville
                          City and County of San Francisco 
                          Santa Clara County Board of Supervisors
                          City of Santa Monica
                          Sierra Cost Management
                          Sierra Club California
                          Solid Waste Association of North America
                          City of Sunnyvale
                          Tehama County Sanitary Landfill Agency
                          City of Torrance
                          City of Vernon
                          
            OPPOSITION  :    BIOCOM
                          The Grocers Manufacturing Association
                          Hewlett-Packard
                          TechAmerica
                          Toy Industry Association Inc.  


            












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