AB 298 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator S. Joseph Simitian, Chairman 2011-2012 Regular Session BILL NO: AUTHOR: AMENDED: FISCAL: URGENCY: AB 298 Brownley June 18, 2012 Yes No SUBJECT: BAGS HEARING DATE: July 2, 2012 CONSULTANT: Randy Pestor SUMMARY: Existing law, under the At-Store Recycling Program (Public Resources Code §42250 et seq.) (part of the California Integrated Waste Management Act of 1989): 1) Requires operators of stores, defined as supermarkets and stores over 10,000 square feet that includes a pharmacy, to establish an at-store recycling program. Under the program: a) Plastic bags provided by the store must include a label encouraging customers to return the bag to the store for recycling. b) Clearly labeled and easily accessible recycling bins for plastic bags must be provided. c) All plastic bags collected must be recycled in a manner consistent with the local jurisdiction’s recycling plan. d) The store must maintain records relating to the program for at least three years and must make the records available to the local jurisdiction or the Department of Resources Recovery and Recycling (DRRR or CalRecycle) upon request. e) The operator of the store must make reusable bags available to customers. AB 298 Page 2 2) Requires plastic carryout bag manufacturers to develop educational materials to encourage reducing and recycling of plastic carryout bags and make those materials available to stores. 3) Preempts local governments from requiring stores that meet these provisions from implementing separate plastic carryout bag recycling programs, additional auditing or reporting requirements, or from imposing plastic carryout bag fees upon a store. 4) Authorizes a city, county, or the state to levy fines for stores in violation of this law. 5) Sunsets the above provisions on January 1, 2013. This bill enacts the Single-use Carryout Bags Law under the California Integrated Waste Management Act of 1989 that: 1) Defines terms used in the bill, including: a) “Recycled paper bag” as a paper carryout bag that contains a minimum of 40% postconsumer recycled content (except certain smaller bags may contain at least 20% postconsumer content); is accepted for recycling in curbside programs in a majority of households that have access to curbside recycling programs; is compostable; and has printed on the bag the name of the manufacturer, the location where manufactured, and the minimum percentage of post-consumer content. (§42280(c)). b) “Reusable grocery bag” before June 30, 2015, means a bag made of cloth or other machine washable fabric with handles, or durable plastic bag with handles that is at least 2.25 mils thick and designed for multiple uses. After July 1, 2015, is a bag designed and manufactured for at least 125 uses, machine washable or made from a material that can be cleaned and disinfected, and contains certain information on a tag attached to the bag. After July 1, 2016, is also a plastic bag with at least 20% postconsumer material designed for at least 125 uses, and meets certain requirements. (§§42280(d) and 42287). c) “Single-use carryout bag” as a bag made of plastic, paper, or other material that is provided by a store to a customer at the point-of-sale and AB 298 Page 3 that is not a reusable grocery bag. Single-use carryout bag does not include a bag provided at a pharmacy to a customer purchasing prescription medication or a nonhandled bag used to protect a purchased item from damaging or contaminating other purchased items when placed in a recycled paper bag or reusable grocery bag. (§42280(f)). d) “Store” as either a full-line self-service retail store with gross annual sales of $2 million or more that sells certain food items; a store with at least 10,000 square feet that generates sales or use taxes and includes a licensed pharmacy; or a convenience food store, foodmart, or other entity engaged in the retail sale of a limited line of goods that generally includes milk, bread, soda, and snack foods. (§42280(g)). 2) Prohibits a store, on and after January 1, 2014, from providing a single-use carryout bag (i.e., paper, plastic, or other material) to a customer at the pointof-sale. (§42281(b)(1)). 3) Authorizes a store, on and after January 1, 2014, to provide a reusable grocery bag (i.e., cloth or durable plastic) to a customer, which may be made available for purchase. (§42281(b)(2)). 4) Authorizes a store to make a recyclable paper bag (i.e., paper with minimum percentage of postconsumer material) available for purchase at the point of sale. (§42281(e)). 5) Authorizes a store to make a compostable bag (i.e., meeting certain compostable and other requirements) available for purchase. (§42281(f)). 6) Requires a store to provide a customer participating in the California Special Supplemental Food Program for Women, Infants, and Children with a reusable grocer bag or recycled paper bag at no cost. (§42281(d)). 7) Provides phasing of certain bag requirements between January 1, 2014, and July 1, 2015; and requires a convenience food store and foodmart to comply with the above bag requirements by July 1, 2015. (§§42281(b) and 42282). 8) Requires a store, except for a convenience food store or foodmart, to provide for collection of plastic bags, which applies to a store that is prohibited from providing single-use carryout bags to its customers. (§42283). AB 298 Page 4 9) Sets requirements for DRRR to certify reusable grocery bags that: a) require a reusable grocery bag producer to submit a certification to DRRR by January 1, 2015, and every two years thereafter; b) require a producer to submit a fee to DRRR with each certification to cover DRRR certificate costs; c) require DRRR to publish a list on its Internet website by July 1, 2015, regarding certain reusable grocery bag information; c) provide for DRRR audits and inspections of a producer; d) authorize DRRR to test any reusable bag; e) authorize DRRR to enter into an agreement with other states that conduct inspections to provide enforcement of these requirements; f) set civil penalties for violating these requirements; g) require DRRR to deposit all certification fees into the Reusable Bag Account created in the Integrated Waste Management Fund to be expended by DRRR, upon appropriation by the Legislature, to assist DRRR with implementing these certification-related requirements; and h) require penalties to be deposited into a Penalty Subaccount created in the Reusable Bag Account for these same purposes upon appropriation by the Legislature. (§42288). 10) Requires DRRR to submit a report to the Legislature by January 1, 2016, regarding the effectiveness of the Law and recommendations for statutory changes to increase effectiveness of the Law, which must include certain matters (e.g., compilation of state cleanup data to evaluate pollution reduction, number and types of violations). This report requirement sunsets January 1, 2017. (§42289) 11) Authorizes a city, county, city and county, or the state to impose civil liability of $500 for the first violation of the Law, $1,000 for the second violation, and $2,000 for the third and subsequent violations. These penalties do not apply to the above certification procedures. Collected penalties must be paid to whichever office brought the action and penalties. (§42289.5). COMMENTS: 1) Purpose of Bill. According to the author, “California taxpayers spend approximately $25 million annually to collect and bury the 19 billion plastic bags used every year. Unfortunately, these bags are rarely recycled; the California Integrated Waste Management Board estimated that less than 5% of all single use plastic bags in the state are actually recycled. Instead, local agencies spend millions more to dispose of plastic bags and clean up discarded plastic bags – for example, in 1994, the annual cost to clean the 31 miles of beaches along Los Angeles County was over $4 million, much of it AB 298 Page 5 due to plastic bags.” The author notes that “In recent years many cities and counties have seen the benefits of passing single bag ordinances and 47 cities and counties have done just that. With the passage of the City of Los Angeles bag ordinance last month 33% of Californians are currently under a single use bag ordinance. However, those ordinances differ enough that there is a need for an overarching statewide policy on single use bags. AB 298 will do just that by prohibit[ing] grocery stores and convenience stores (as defined) from providing single use carryout bag to a customer after 2014 and 2015 respectively. In lieu of single use bags stores must make reusable bags and 40% postconsumer paper bags available for purchase by the customer.” 2) Background. Plastic bags and plastic film together represent 2.2% of the waste stream, and every year California taxpayers spend $25 million disposing of the 19 billion plastic bags used annually. Although plastic represents a relatively small fraction of the overall waste stream in California, plastic waste is the predominate form of marine debris. Plastics are estimated to compose 60-80% of all marine debris and 90% of all floating debris. According to the California Coastal Commission, the primary source of marine debris is urban runoff, of which lightweight plastic bags and plastic film are particularly susceptible. Due to the interplay of ocean currents, marine debris preferentially accumulates in certain areas throughout the ocean. The North Pacific Central Gyre is the ultimate destination for much of the marine debris originating from the California coast. A study by the Algalita Marine Research Foundation found an average of more than 300,000 plastic pieces per square mile of the Gyre and that the mass of plastic was six times greater than zooplankton floating on the water’s surface. Most plastic marine debris exists as small plastic particles due to excessive UV radiation exposure and subsequent photo-degradation. These plastic pieces are ingested by aquatic organisms and have already negatively affected over 250 animal species worldwide. In addition, hydrophobic chemicals present in the ocean in trace amounts (e.g., from contaminated runoff and oil and chemical spills) have an affinity for, and can bind to, plastic particles and may also enter and accumulate in the food chain through the same mechanism. 3) Local bag responses. Many cities and counties throughout California have adopted ordinances banning plastic bags including San Francisco, San Jose, AB 298 Page 6 Long Beach, Los Angeles County, Santa Clara County, Alameda County and others. Most of these local governments also require stores to charge a fee for a paper carryout bag, and a few have banned both single-use plastic and paper carryout bags. The desire for statewide uniformity in 2010 led the California Grocers Association to support AB 1998 (Brownley) which would have banned plastic carryout bags and placed a fee on paper bags. 4) No corresponding litter and pollution program funded by fees. AB 298 does not provide a funding mechanism to deal with litter and pollution, as well as stormwater, sewer and water treatment facility problems associated with bag debris. Instead, AB 298 authorizes a store to make a recycled paper bag available for purchase at the point of sale. Some previous legislation included fees to be placed on bags to directly address those problems. AB 298, like AB 1998 (Brownley) of 2010, does not establish a funding mechanism for these programs. Should there be fees on bags to address single-use bag problems? 5) Bags may be needed. AB 298 prohibits a store from providing a single-use bag to a customer after January 1, 2014, and authorizes – but does not require – reusable grocery bags to be available for purchase. Under these circumstances, there may be no bags available for a customer. A store should be required, rather than authorized, to make reusable grocery bags available for purchase by a customer. 6) Related legislation. AB 2058 (Levine) of 2007 would have prohibited the free dispensing of carryout plastic bags by a store to its customers, unless the store can demonstrate to the California Integrated Waste Management Board (CIWMB) that 70% of the plastic bags it dispensed had been diverted from the waste stream. AB 2058 was held in Senate Appropriations Committee. SB 531 (DeSaulnier) of 2009 would have required manufacturers of plastic carryout bags to consult with various entities, including the CIWMB, when developing specified educational materials to encourage the reduced use or recycling of those bags, and authorized the CIWMB to modify those materials. SB 531 was held in Assembly Natural Resources Committee without further action. AB 68 (Brownley) of 2009 and AB 87 (Davis) of 2009 both would have AB 298 Page 7 required a 25-cent fee on the distribution of single-use carryout bags. Both bills were held in the Assembly Appropriations Committee. AB 2138 (Chesbro) of 2010 would have established recycling and composting requirements for take-out food packaging, including bags. AB 2138 was held on the Assembly Appropriations Committee suspense file. AB 1998 (Brownley) of 2010 would have repealed the at-store recycling program and instead prohibited stores from providing a single-use plastic carryout bag to a customer and required stores to provide reusable bags for purchase or recycled paper bags for a fee. AB 1998 failed in the Senate on August 31, 2010 (14-21). SB 915 (Calderon) of 2011 sets plastic bag reduction and recycled content goals. A hearing in the Senate Environmental Quality Committee was canceled at the request of the author. AB 1834 (Brownley) of 2012 defines reusable bags and is on the Senate Floor. SB 1106 (Strickland) of 2012 prohibits the manufacture, distribution, and sale of reusable bags without a warning label that both specifies the need for reusable bags to be cleaned and disinfected between uses and outlines the health risks associated with not cleaning or disinfecting reusable bags between uses. SB 1106 failed in the Senate Environmental Quality Committee April 23, 2012 (2-5). SOURCE: Californians Against Waste, Environment California, Heal the Bay SUPPORT: Azul, California Coastkeeper Alliance, Canyonland Conservation Fund, City and County of San Francisco Department of the Environment, Clean Water Action, Earthwise Bag Company, Inc., Los Angeles County Board of Supervisors, Los Angeles County Solid Waste Management Committee/Integrated Waste Management Task Force, Santa Clara County Board of Supervisors, Save Our Shores, Seventh Generation Advisors, Surfrider Foundation OPPOSITION: None on file. AB 298 Page 8