BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2284
                                                                  Page  1

          Date of Hearing:   April 30, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 2284 (Williams) - As Amended:   April 22, 2014

          Policy Committee:                              Natural  
          ResourcesVote:6-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires producers of non-rechargable household  
          batteries to collect and manage batteries sold in the state  
          through product stewardship plans.   Specifically, this bill:

          1)On or before January 1, 2016, requires a producer or  
            organization to submit a battery stewardship plan to Cal  
            Recyle.

          2)Requires a producer or organization to pay an administrative  
            fee at the time the plan is submitted and specifies that  
            CalRecycle establish the fee at an amount to cover, but not  
            exceed, costs associated with reviewing, approving, and  
            enforcing the plan.   The fee may not exceed $5,000.

          3)Requires a producer or organization to report annually to  
            CalRecycle.  Once a producer or organization has achieved  
            specified collection rates, the reports may be submitted  
            biannually.

          4)Authorizes CalRecycle to assess administrative civil penalties  
            not to exceed $1,000 per day against a wholesaler or retailer  
            that violates the requirements of the bill, as specified. 

          5)Authorizes a producer or organization that implements a plan  
            in compliance with the bill and incurs costs in excess of  
            $3,000 in collecting, handling, recycling, or properly  
            disposing batteries to bring a civil action to recover costs,  
            damages, and fees from another producer for failure to comply  
            with the Act, as specified.  









                                                                  AB 2284
                                                                  Page  2

          6)Preempts a city, county, or district from adopting or  
            enforcing any ordinance that regulates the disposal,  
            collection, and recycling of primary batteries.  

          7)Exempts specified medical devices from the requirements of the  
            bill.

           FISCAL EFFECT  

          Increased costs to CalRecycle of approximately $200,000 to  
          develop regulations related to the plan, annual reporting  
          requirements and enforcement.  Ongoing costs of implementation  
          of approximately $100,000 to $200,000 per year.  

          Most costs are likely recoverable, with the exception of the  
          initial regulatory costs, through the fee authority provided by  
          the bill

           COMMENTS  

           1)Rationale.   According to the author, more than 150 million  
            household batteries are sold in the state annually, yet only  
            about five percent are currently collected for recycling.   
            This bill requires battery manufacturers to design, fund, and  
            operate a stewardship program to properly manage batteries  
            sold in California. 

            This bill requires primary battery manufacturers to achieve a  
            10% collection rate within two years and a 20% collection rate  
            within five years of implementation.   
           
           2)Background.   In California, household batteries are classified  
            as universal waste, which include materials that DTSC has  
            determined are hazardous waste that are ubiquitous and contain  
            mercury, lead, cadmium, copper, or other substances hazardous  
            to human and environmental health. Since 2006, universal waste  
            has been prohibited from disposal in solid waste landfills,

           3)Product Stewardship  .  According to the sponsor, 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  








                                                                  AB 2284
                                                                  Page  3

            responsibility for end-of-life product management on 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.  

           4)Rechargable Batteries.    Rechargable battery producers are  
            already required to implement stewardship plans.  The  
            Rechargeable Battery Recycling Act 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.  

           5)Cost Recovery.   This bill contains cost-recovery provisions  
            for battery producers to recovery any cost of collecting and  
            recycling batteries from other producers.  This bill does not  
            contain cost-recovery provisions for rechargeable producers.    
            Rechargable battery producers should not be required to absorb  
            the costs of collecting and recycling primary batteries.

           6)Previous Legislation.   Similar legislation, AB 488 (Williams),  
            was held on this committee's Suspense File in the Assembly  
            last year.  AB 2284 reduces the costs to CalRecyle and battery  
            producers and addresses AB 488 implementation concerns.    


           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081