Bill Text: CA AB2139 | 2009-2010 | Regular Session | Amended


Bill Title:

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-06-03 - Read third time, passage refused. (Ayes 30. Noes 31. Page 5589.) [AB2139 Detail]

Download: California-2009-AB2139-Amended.html
BILL NUMBER: AB 2139	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 1, 2010
	AMENDED IN ASSEMBLY  APRIL 6, 2010

INTRODUCED BY   Assembly Member Chesbro

                        FEBRUARY 18, 2010

   An act to add Chapter 5 (commencing with Section 48800) to Part 7
of Division 30 of the Public Resources Code, relating to solid waste.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2139, as amended, Chesbro. Solid waste: product stewardship.
   The California Integrated Waste Management Act of 1989,
administered by the Department of Resources Recycling and Recovery,
requires a pharmaceutical manufacturer that sells or distributes
medication that is self-injected at home through the use of
hypodermic needles and other similar devices to submit a plan to the
department that describes how the manufacturer supports the safe
collection and proper disposal of the waste devices.
   This bill would create the California Product Stewardship Act and
would  define the term "covered product" asincluding
home-generated medical sharps, pesticides intended for residential
use, and nonrefillable propane cylinders, as defined  
require the department, by January 1, 2012, in consultation with
specified state agencies, to submit a report to the Legislature
recommending that one or more consumer products be included as a
covered product for purposes of the act  .
   The bill would require  , by September 30, 2011, 
a producer  of a covered product, one year after the effective
date of a statute designating a product as a covered product, 
or the product stewardship organization created by one or more
producers of  a   that  covered product
 to act as an agent on their behalf,  to submit a product
stewardship plan to the department, which would be required to
include specified elements, including performance goals, a collection
rate, and product goals.  On or before January 1, 2012, the
  The  department would be required to review and
either approve or disapprove   deem  the
product stewardship plan submitted to the department  as complete
or incomplete, within 45 days after receiving the plan  .
   The bill would prohibit the producer of a covered product 
, on and after July 1, 2012,  from selling a covered
product  6 months after the plan is deemed complete  unless
the producer or product stewardship organization of the covered
product has submitted a plan to the department that is 
approved   deemed complete  by the department. The
bill would require the department,  on July 1, 2012 
 6 months after a plan is deemed complete  , and on January
1 and July 1 annually thereafter, to post on its Internet Web site
the covered products that are not in compliance and the bill would
require a wholesaler or retailer that distributes or sells covered
products to monitor the department's Internet Web site to determine
if a covered product is in compliance. The act would require a
producer of a covered product to collect the covered product pursuant
to the product stewardship plan and to meet the performance goals
included in the product stewardship plan.  The bill would provide
that a product stewardship program is in compliance with the act
only if it achieves the collection rate specified in the product
stewardship plan   . 
   Each producer or product stewardship organization implementing a
product stewardship plan would be required to prepare and submit to
the department an annual report describing the activities carried out
pursuant to the product stewardship plan.
   A producer or product stewardship organization submitting a
product stewardship plan would be required to pay the department
 a   an annual  fee  of an
unspecified amount when submitting the plan for review and approval
and to pay an annual administrative fee of an unspecified amount
  that would be set by the department  . The bill
would provide for the imposition of administrative civil penalties
upon a producer who does not comply with the act's requirements. The
bill would create in the existing Integrated Waste Management Fund
the Product Stewardship Account and would require that the
administrative fees be deposited into that account and that the
penalties be deposited into the Product Stewardship Penalty
Subaccount that the bill would create in that account. The bill would
authorize the fees and penalties to be expended, upon appropriation
by the Legislature, to cover the board's program implementation costs
and as incentives to enhance recyclability and redesign efforts and
to reduce environmental and safety impacts of covered products.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) This act requires the Department of Resources Recycling and
Recovery to develop, implement, and administer the Product
Stewardship Program.  
   (b) Product stewardship is a mechanism to place responsibility for
end-of-life management issues for products on those involved in the
product chain in an equitable manner.  
   (c) The program established by this act will test the efficacy of
a consistent framework approach for managing products that have
significant end-of-life waste management impacts as well as impacts
on the environment and public health. This framework approach
provides a consistent process that includes goals and oversight so
that a level playing field exists among all producers, while
maintaining flexibility for specific products and for producers to
design their product stewardship programs.  
   (d) End-of-life management of solid waste has historically been
the responsibility of state and local governments with the primary
physical management and financial burden placed on local government
and ratepayers who have no ability to influence the design of the
products or packaging to reduce waste management costs.  
   (e) Prior to this program, the state addressed products with
end-of-life management issues through a patchwork of product-specific
and material-specific programs.  
   (f) Implementing product stewardship programs that are funded and
managed by the producers of products with significant end-of-life
impacts reduces the role of, and cost to, state and local government
and ratepayers.  
   (g) The Product Stewardship Program established by this act will
explore the feasibility and potential environmental, economic, and
social benefits of instituting a permanent product stewardship
program for an extended number of products while still providing
producers with the flexibility to customize individual product
stewardship plans toward the most effective and efficient approach
for a particular product or product category.  
   (h) The Product Stewardship Program established by this act will
test the applicability of extended producer responsibility and may be
used as a template for including additional products in these
programs. 
   SECTION 1.   SEC. 2.   Chapter 5
(commencing with Section 48800) is added to Part 7 of Division 30 of
the Public Resources Code, to read:
      CHAPTER 5.  CALIFORNIA PRODUCT STEWARDSHIP PROGRAM



      Article 1.  Findings and Declarations


   48800.  The Legislature finds and declares all of the following:
   (a) This chapter requires the Department of Resources Recycling
and Recovery to develop, implement, and administer the Product
Stewardship Program.
   (b) Product stewardship is a mechanism to place responsibility for
end-of-life management issues for products on those involved in the
product chain in an equitable manner.
   (c) The program established by this chapter will test the efficacy
of a consistent framework approach for managing products that have
significant end-of-life waste management impacts as well as impacts
on the environment and public health. This framework approach
provides a consistent process that includes goals and oversight so
that a level playing field exists among all producers, while
maintaining flexibility for specific products and for producers to
design their product stewardship programs.
   (d) End-of-life management of solid waste has historically been
the responsibility of state and local governments with the primary
physical management and financial burden placed on local government
and ratepayers, who have no ability to influence the design of the
products or packaging to reduce waste management costs.
   (e) Prior to this program, the state addressed products with
end-of-life management issues through a patchwork of product and
material specific programs.
   (f) Implementing product stewardship programs that are funded and
managed by the producers of products with significant end-of-life
impacts reduces the role of, and cost to, state and local government
and ratepayers.
   (g) The Product Stewardship Program established by this chapter
will explore the feasibility and potential environmental, economic,
and social benefits of instituting a permanent product stewardship
program for an extended number of products while still providing
producers with the flexibility to customize individual product
stewardship plans toward the most effective and efficient approach
for a particular product or product category.
   (h) The Product Stewardship Program established by this chapter
will test the applicability of extended producer responsibility and
may be used as a template for including additional products in these
programs. 

      Article  2.   1.   General Provisions



    48800.1.   48800.   This chapter shall
be known and may be cited as the California Product Stewardship Act.

      Article  3.   2.   Definitions


   48800.2.  For purposes of this chapter, and unless the context
otherwise requires, the definitions in this article govern the
construction of this chapter.
   48800.3.  "Brand" means a name, symbol, word, or mark that
identifies a product, rather than its components, and attributes the
product to the owner or licensee of the brand as the producer.
   48800.4.  "Collection rate" means a quantitative measure that
establishes the amount of a covered product required to be collected
pursuant to a product stewardship plan.
   48800.5.  "Consumer product" means a product that is sold in this
state in a transaction that is a retail sale or in a transaction to
which a use tax applies pursuant to Part 1 (commencing with Section
6001) of Division 2 of the Revenue and Taxation Code. 
   48800.6.  "Covered product" means all of the following consumer
products that are used or discarded in this state, as defined by the
department:
   (a) "Covered product 1" means home-generated sharps waste,
including, but not limited to, hypodermic needles, pen needles,
intravenous needles, lancets, and other devices, that are used to
penetrate the skin for the delivery of medications derived from a
household, including from a multifamily residence or household.
   (b) (1) "Covered product 2" means pesticides, as defined in
Section 12753 of the Food and Agricultural Code, that are intended
for residential use, including any of the following:
   (A) A spray adjuvant.
   (B) A substance or mixture of substances that is intended to be
used for defoliating plants, regulating plant growth, or for
preventing, destroying, repelling, or mitigating a pest, as defined
in Section 12754.5 of the Food and Agricultural Code, that may infest
or be detrimental to vegetation, human, animal, or household, or be
present in a agricultural or nonagricultural environment whatsoever.
   (2) For purposes of this chapter, pesticides intended for
residential use shall be limited to those defined as a consumer
product, pursuant to Section 48800.5, but shall exclude those
consumer products that are intended primarily for residential
cleaning and disinfecting.
   (c) "Covered product 3" means nonrefillable propane cylinders, as
defined in Section 178.65 of Title 49 of the Code of Federal
Regulations.  
   48800.6.  "Covered product" means a consumer product that is used
or discarded in this state and is made subject to this chapter
pursuant to Article 3 (commencing with Section 48810). 
   48800.7.  "Department" means the Department of Resources Recycling
and Recovery.
   48800.8.  "Performance goal" means the collection rate of a
covered product, and may include, but is not limited to, the reuse
and recycling rate established by the product stewardship plan for
that covered product.
   48800.9.  "Producer" shall be determined, with regard to a covered
product that is sold, offered for sale, or distributed in the state,
as meaning one of the following:
   (a) A person who manufactures the covered product and who sells,
offers for sale, or distributes that covered product in the state
under that person's own name or brand.
   (b) If there is no person who sells, offers for sale, or
distributes the covered product in the state under the person's own
name or brand, the producer of the covered product is the owner or
licensee of a trademark or brand under which the covered product is
sold or distributed in the state, whether or not the trademark is
registered.
   (c) If there is no person who is a producer of the covered product
for purposes of subdivisions (a) and (b), the producer of that
covered product is the person who imports the product into the state
for sale or distribution.
   48800.10.  "Product goal" means those qualitative or quantitative
goals determined by the producer to measure improvements that reduce
the  life cycle   life-cycle  impacts of a
covered product.
   48800.11.  "Product stewardship" means requiring the producer of a
covered product, and all other entities involved in the product
chain, to share in the responsibility of reducing the  life
cycle   life-cycle  impact of the covered product
and its packaging, including requiring the producer who makes design
and marketing decisions for the covered product to bear the primary
responsibility for this reduction.
   48800.12.  "Product stewardship organization" means an
organization  appointed   created  by one
or more producers to act as an agent on behalf of the producer to
design, submit, and administer a product stewardship plan pursuant to
this chapter.
   48800.13.  "Product stewardship plan" or "plan" means a plan
written by an individual producer or a product stewardship
organization, on behalf of one or more producers, that includes all
of the information required by Section 48813.
   48800.14.  "Recycling rate" means a quantitative measure that
establishes the amount of a collected covered product that is
recycled as compared to the total amount of the covered product that
is collected, including the amount of the covered product that is
discarded for reuse, energy recovery, or safe disposal.
   48800.15.  "Reporting period" means the period commencing January
1 and ending on December 31 of the same calendar year.
   48800.16.  "Reuse rate" means a quantitative measure that
establishes the amount of a collected covered product that is reused
as compared to the total amount of the covered product that is
collected, including the amount of the covered product that is
discarded by recycling, energy recovery, or safe disposal.
   48800.17.  "Sell" or "sales" means any transfer of title of a
covered product for consideration, including a remote sale conducted
through a  sale   sales  outlet, catalog,
or Internet Web site or similar electronic means, but does not
include a lease.

      Article  3.    Covered Product Designation 


   48810.  (a) On or before January 1, 2012, the department,
following one or more noticed public workshops and in consultation
with the State Air Resources Board, the Department of Conservation,
the State Department of Public Health, the Department of Toxic
Substances Control, the State Water Resources Control Board, and
other appropriate state agencies, shall submit a report to the
Legislature recommending the inclusion of one or more consumer
products as a covered product for purposes of this chapter.
   (b) The department shall recommend a consumer product be included
as a covered product pursuant to this section only if the
manufacture, transport, use, or disposal of the consumer product
poses or imposes one or more of the following environmental, waste
management, or health impacts:
   (1) The consumer product poses a significant threat to public
health and safety when discarded.
   (2) The consumer product poses a threat of increased greenhouse
gas emissions.
   (3) The consumer product imposes significant end-of-life
management costs on state or local government.
   (c) The factors the department shall consider in recommending a
consumer product pursuant to this section shall include, but are not
limited to, all of the following:
   (1) Current impacts to local government and general ratepayers.
   (2) Public health, toxicity, and significant environmental and
safety impacts and benefits.
   (3) Resource recovery and material conservation potential,
including the potential for product redesign to achieve greater waste
reduction, toxicity reduction, and water consumption reduction, an
increase in recycled content, and a greater capability for being
recycled.
   (4) Energy use and conservation potential.
   (5) Climate change impacts and benefits.
   (6) Existing infrastructure capacity for material management and
potential for expansion.
   (7) Success in collecting and processing similar products in other
programs in the United States and other countries.
   (8) The selection of products in extended producer responsibility
programs in other states.
   (9) Ocean pollution impacts.
   (10) Stormwater runoff impacts.
   (11) The lack of an existing product stewardship or other
regulatory system for the product.
   (12) Life-cycle net environmental impacts.
   (13) Public safety and public health uses of products.
   (d) (1) The requirement for submitting a report imposed under
subdivision (a) is inoperative on January 1, 2016, pursuant to
Section 10231.5 of the Government Code.
   (2) A report required to be submitted pursuant to subdivision (a)
shall be submitted in compliance with Section 9795 of the Government
Code.  
   48811.  A consumer product shall become a covered product pursuant
to this chapter on the effective date of a statute amending this
chapter that designates that consumer product as a covered product.


      Article 4.  Product Stewardship Program


    48810.   48812.   This chapter does not
limit, supersede, duplicate, or otherwise conflict with the
authority of the Department of Toxic Substances Control under Section
25257.1 of the Health and Safety Code to fully implement Article 14
(commencing with Section 25251) of Chapter 6.5 of Division 20 of the
Health and Safety Code, including the authority of the Department of
Toxic Substances Control to include products in its product registry.

   48813.  (a)  On or before September 30, 2011 
 One year after the effective date of a statute designating a
product as a covered product  , a producer or a product
stewardship organization that is created by one or more producers of
a covered product shall submit a product stewardship  plan to
the department. A product stewardship organization created pursuant
to this section shall be open for participation by all producers of a
covered product.   plan to the department. 
   (b) Each product stewardship plan for a covered product shall
address the environmental impacts of the covered product over the
entire  life cycle   life-cycle  of that
product, including the product design, manufacture, and distribution
of the covered product, and the collection, transportation, reuse,
recycling, and final disposition of the discarded covered product, in
accordance with this chapter.  A producer or product stewardship
organization shall consult with stakeholders during the development
of the product stewardship plan, including soliciting stakeholder
comments and responding to stakeholder comments   before
submitting the product stewardship plan.  The plan shall
include, at a minimum, all of the following elements:
   (1) Contact information for all participating producers.
   (2) A description of the covered product and associated brands
covered by the plan.
   (3) Performance goals, including a detailed description of how the
performance goals will be achieved and how results will be measured,
and including all of the following:
   (A) A collection rate, which shall be included as a performance
goal for the covered product.
   (B) A reuse rate and a recycling rate for the covered product
shall be included in the performance goals.
   (C) If the covered product is prohibited from being disposed of at
a solid waste disposal facility, the performance goal shall include
a schedule to accomplish a 100-percent collection rate.
   (4) The roles and responsibilities of key players along the
product chain.
   (5) Financing methods for the product stewardship plan.
   (6) Strategies for managing and reducing the  life cycle
  life-cycle  impacts of the covered product, steps
that will be taken to ensure environmentally sound management, and
how impacts will be tracked over time to show continual improvement.
   (7) Education and outreach activities.
   (8) Product goals, including, but not limited to, product
designing and materials content, manufacturing, packaging,
distribution, and end-of-life management goals. The product goals
shall address the use of virgin material in the manufacture of the
covered product, the impact upon, or use of, water or energy by the
covered product, the use of, or generation of hazardous substances
by, the covered product, the carbon footprint of the covered product,
the covered product's longevity, the recycled content of the covered
product, and the covered product's recyclability, where applicable.

   48814.  (a) On or before January 1, 2012, the department shall
review the product stewardship plan submitted to the department and
either approve or disapprove the plan. If the department does not
approve the plan, the department shall notify the producer or
organization that submitted the plan and the producer or organization
shall revise and resubmit the disapproved product stewardship plan
within 30 days after receiving the notification. 
    48814.    (a) No more than 45 days after receiving a
product stewardship plan pursuant to Section 48813, the department
shall review the product stewardship plan and either deem the plan
complete or incomplete. If the department does not deem the plan
complete, the department shall notify the producer or organization
that submitted the plan of the deficiencies, and the producer or
organization shall revise and resubmit the plan within 45 days of the
notification. If the department deems the plan complete, the
department shall notify the producer or organization that the plan is
complete. 
   (b) All product stewardship plans submitted to the department
shall be available to the public on the department's Internet Web
site.
   (c) A producer shall notify the department 30 days before
instituting a significant or material change to a product stewardship
plan. 
   48814.5.  (a) A product stewardship program complies with this
chapter only if it achieves the collection rate specified in a
product stewardship plan that the department has deemed complete
pursuant to Section 48814.
   (b) If a product stewardship program achieves a collection rate of
at least 95 percent, the producer or product stewardship
organization shall not be required to pay the annual fee imposed
pursuant to Section 48819.
   (c) A producer may petition the department for an adjustment to
the collection rate. The department may grant an adjustment to the
collection rate only if the department determines that there are
documented exigent circumstances that are beyond the control of the
producer or product stewardship organization. 
   48815.  (a)  On and after July 1, 2012   Six
months after the department deems a plan for a covered product to be
complete  , a producer shall not offer a covered product for
sale in this state or offer a covered product for promotional
purposes in this state unless the producer or a product stewardship
organization consisting of producers of the covered product has
submitted a product stewardship plan to the department pursuant to
Section 48813 and the product stewardship plan is  approved
  deemed complete  by the department pursuant to
Section 48814.
   (b)  On July 1, 2012   Six months after the
department deems a plan for a covered product to be complete  ,
and on January 1 and July 1 annually thereafter, the department shall
post on its Internet Web site covered products that are not in
compliance with this section.
   (c) A wholesaler or retailer that distributes or sells covered
products shall monitor the department's Internet Web site to
determine if the sale of a covered product is in compliance with this
section.
   48816.  A producer of a covered product shall do all of the
following when implementing this chapter, including  an
approved product stewardship plan:   a product
stewardship plan deemed complete by the department: 
   (a) Collect the individual covered product to be reused or
recycled pursuant to the product stewardship plan for the covered
product submitted by the producer or product stewardship organization
pursuant to Section 48813 and  approved  
deemed complete  by the department pursuant to Section 48814.
   (b) Meet the performance goals included in the product stewardship
plan.
   (c) Provide collection services, in accordance with Section 48817,
for the covered product, that do not charge a fee at the time when
the covered product is collected for either recycling or disposal.
   (d) Pay costs associated with the product stewardship plan,
including the costs of collection, transportation, and recycling or
disposal, or both, of the covered product.
   (e) Submit the annual report required by Section 48818.
   48817.  A covered product shall be handled and recycled, or if not
feasible to be recycled, disposed of, in accordance with all state
and federal laws and regulations and local ordinances and
regulations, including, but not limited to, any law, regulation, or
ordinance that regulates hazardous waste.

      Article 5.  Reporting


   48818.  (a) Beginning one year after a product stewardship
 plan is approved or no later than January 1, 2013, whichever
date is earlier, and every subsequent year thereafter, each producer
or   plan is deemed complete, and every January 1 for
each subsequent year thereafter, each producer or  stewardship
organization implementing a product stewardship plan shall prepare
and submit to the department an annual report describing the
activities carried out pursuant to the product stewardship plan
during the previous reporting period, including, but not limited to,
all of the following:
   (1) Whether the producer or product stewardship organization, in
implementing the plan, attained the performance goals for the covered
product, and if the performance goals were not met, what actions the
producer or product stewardship organization will take during the
next reporting period to attain those performance goals.
   (2) Whether the producer or product stewardship organization, in
implementing the plan, attained the product goals for the covered
product, and if the product goals were not met, what actions the
producer or stewardship organization will take during the next
reporting period to achieve those product goals.
   (b) The department shall review a report submitted pursuant to
this section and shall  approve the report  
deem the report to be compete  if the department determines the
report contains the information required by this section.
   (c) The department shall make all reports submitted to the
department pursuant to this section available to the public on the
department's Internet Web site.

      Article 6.  Financial Provisions


   48819.  (a) The producer or product stewardship organization
submitting a product stewardship plan shall pay the department an
administrative fee in the amount of ____ when the plan is submitted
for review and approval and thereafter pay an annual administrative
fee of ____.
    48819.    (a) A producer or product stewardship
organization that submits a product stewardship plan to the
department shall pay an annual fee to the department pursuant to this
section.  
   (b) The department shall set the annual fee in an amount that is
adequate to cover the department's full costs of reviewing and acting
upon product stewardship plans and annual reports. The department
may establish a variable annual fee based on relevant factors,
including, but not limited to, the proportion of a covered product
produced by the feepayer compared to the total amount of the covered
product produced by all producers or product stewardship
organizations.  
   (b) 
    (c)  The total amount of annual fees collected pursuant
to this section shall not exceed the amount necessary to recover
costs incurred by the department in connection with the
administration and enforcement of the requirements of this chapter.

   (d) If a product stewardship program achieves the collection rate
specified in subdivision (b) of Section 48814.5, the producer or the
product stewardship organization shall not be required to pay the
annual fee. 

     48820.  (a) The Product Stewardship Account and the Product
Stewardship Penalty Subaccount are hereby established in the
Integrated Waste Management Fund.
   (b) All fees collected pursuant to this chapter shall be deposited
in the Product Stewardship Account and may be expended by the
department, upon appropriation by the Legislature, to cover the
department's costs to implement this chapter.
   (c) All penalties collected pursuant to this chapter shall be
deposited in the Product Stewardship Penalty Subaccount and may be
expended by the department, upon appropriation by the Legislature, to
cover the department's costs to implement this chapter.
   (d) All funds collected may be expended as incentives to enhance
reuse, recyclability, and redesign efforts and to reduce
environmental and safety impacts of covered products.

      Article 7.  Enforcement


   48821.  (a) If, after holding a public hearing, the department
finds that a producer has failed to make a good faith effort to
comply with this chapter, the department shall issue a compliance
order with a schedule for achieving compliance.
   (b) If, after issuing an order and schedule for compliance
pursuant to subdivision (a), the department finds that the producer
has failed to make a good faith effort to comply with this chapter,
the department may impose an administrative civil penalty of 
____   five thousands dollars ($5,000)  per day
until the producer achieves compliance.
   (c) For purposes of this section, "good faith effort" means all
reasonable and feasible efforts by a producer  towards
implementing the requirements of this chapter, including, but not
limited to, meeting the performance goals specified in the plan.
  , or the program implementing a product stewardship
plan deemed complete by the department, toward implementing the
requirements of this chapter, including, but not limited to, meeting
the collection rate specified in the plan.  
   (d) If a product stewardship organization submits a plan, on
behalf of a producer, that has been deemed complete by the department
and the department finds that the program established by the plan
has made a good faith effort to implement this chapter, the
department shall not deem the producer to have failed to make a good
faith effort to implement this chapter. 
   48822.  (a) The department, or its designee, may inspect, audit,
or require and review third-party audits of producers, product
stewardship organizations, and service providers, including
collectors and recyclers, that are utilized to fulfill the
requirements of a product stewardship plan.
   (b) For purposes of this section, a "service provider" means any
person who is authorized to perform an action to implement the
product stewardship plan with regard to the collection, recycling,
reuse, or disposal of a covered product, but does not include the
consumer of the covered product.   
feedback