Michael J. Rogge
Policy Director, Environmental Quality
September 9, 2014
The Honorable Edmund G. Brown
Governor of California
State Capitol, First Floor
Sacramento, CA 95814
Re: SB 270 (Padilla) Solid Waste: Single-Use Carryout Bags - OPPOSE
Dear Governor Brown,
The California Manufacturers & Technology Association (CMTA) opposes SB 270 (as
AMENDED 8/21/14), legislation that would ban single-use plastic bags and impose a 10 cent
minimum tax on postconsumer recycled content paper bags. This bill would not only cost
California 2,000 jobs in the plastic bag industry, but will jeopardize hundreds of jobs in the paper
and converting industries as well.
Los Angeles County data shows that paper bag usage dropped 16% following the implementation
of their local ordinance. The 2 million dollars that is promised to changeover current plastic bag
lines is only enough to convert one half of one production line at one facility.
That is very few jobs retained.
If this bill is signed, you will be giving preference to well-to-do, urban, coastal communities over
poorer, rural, inland communities. The 100 communities that have approved such a bag ban are
predominately on or near the coast. This is a regressive tax and amounts to price-fixing on a
product with the highest recovery rate in the solid waste stream by far.
Grocers argue that they can’t handle stores in one area of the state using bags and stores in
another area banning plastic bags and charging for paper. That argument doesn’t hold water.
From one store to another there are differences in lease rates, local taxes and a myriad of
expenses related to the size and location of the store. Right now, there are grocers (like Trader
Joe’s) who only use paper bags and don’t charge. They would be required to charge.
The grocers would not support a ban simply on plastic bags, because they would then have to
supply paper bags at more than 10 times the cost. They could stop using plastic bags now and
add a 10 cent or more fee on paper bags, but they fear they would lose business to those grocers
who do not. They provide paper and plastic bags now for free and internalize cost. Consumers
are not going to see a drop in the price of goods. There is no enforcement in this bill. Grocers
are looking for government “to wear the black hat.” A paper bag cost between 4 cents and 6
cents (for the highest quality handled bag). Any charge beyond that is pure profit for the grocers.
We are talking about hundreds of millions of dollars in added profit.
California Manufacturers & Technology Association
PH 916.498.3313
FAX 916.441.5449
1115 Eleventh Street Sacramento CA 95814
EMAIL mrogge@cmta.net
The United Food and Commercial Workers Union actually removed their support for this bill in
the Assembly stating that they were concerned about the lack of enforcement in the bill and
would not remove their opposition until the 10 cent tax on paper was eliminated. They later
withdrew their opposition after coming to an agreement with Safeway on how they could share in
the wealth this measure creates. Make no mistake, this is a Safeway led campaign. Not all
grocers want to be associated with this campaign and a number actively oppose it.
This bill will steer people away from using paper bags and toward heavy reusable bags. Paper
bags not only contain recycled content, but are reusable, compostable, recyclable and come from
a sustainable resource. The large, heavy plastic, reusable bags are resource intensive and are
without an infrastructure for recycling. These bags will end up in the landfill and are far less
green than the paper bags they will replace. Well over 60% of the fabric and hemp reusable bags
are made in the Orient. You will be trading California jobs for jobs in Asia if you sign this bill.
When Byron Sher’s, SB 939 was signed into law in 1989, the paper industry stepped up and
made a significant investment to increase the amount of recycled content used in its paper and
help California achieve its aggressive environmental targets. Unfortunately, it appears that no
good deed goes unpunished.
Companies shy away from making investments in operations when conditions are not stable.
Unpredictability is a definite contributor why California has 10% of this country’s manufacturing
workforce, but now only garners 1.5% of its capital investment (2013 figures).
We urge you to VETO SB 270. Don’t tax the people of California who have chosen not to be
taxed. Leave the decision up to the local jurisdictions.
Sincerely,
Michael J. Rogge
Policy Director, Environmental Quality
cc: Graciela Castillo-Krings, Deputy Legislative Secretary, Office of the Governor
California Manufacturers & Technology Association
PH 916.498.3313
FAX 916.441.5449
1115 Eleventh Street Sacramento CA 95814
EMAIL mrogge@cmta.net