Existing law, inoperative due to a pending referendum petition, election, would, as of July 1, 2015, prohibit stores that have a specified amount of sales in dollars or retail floor space from providing a single-use carryout bag to a customer and prohibit those stores from selling or distributing a recycled paper bag at the point of sale unless the store makes that bag available for purchase for not less than $0.10. This same law would, on and after July 1, 2016, impose these prohibitions and requirements on convenience food stores, foodmarts, and other specified entities.

This bill would repeal the requirement that a store that distributes recycled paper bags make those bags available for purchase for not less than $0.10.

Existing law, inoperative due to a pending referendum petition, would, as of July 1, 2015, prohibit stores that have a specified amount of sales in dollars or retail floor space from providing a single-use carryout bag to a customer and prohibit those stores from selling or distributing a recycled paper bag at the point of sale unless the store makes that bag available for purchase for not less than $0.10. This same law would, on and after July 1, 2016, impose these prohibitions and requirements on convenience food stores, foodmarts, and other specified entities.

This bill would repeal the requirement that a store that distributes recycled paper bags make those bags available for purchase for not less than $0.10.

This bill would declare that it is to take effect immediately as an urgency statute.

Date of Hearing: April 13, 2015

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Das Williams, Chair

ABPCA Bill Id:AB 191

Author:(Harper) – As Amended Ver:March 11, 2015

SUBJECT:

Solid waste: single-use carryout bags.

SUMMARY:

Repeals the 10 cent charge for reusable bags and recycled paper bags required by California's plastic bag law, which is currently inoperative pending the outcome of the referendum to repeal the state's ban on single-use plastic bags. Will only become operative if the referendum is approved by voters.

EXISTING LAW:

Establishes various requirements relating to the distribution of carryout bags, but is currently inoperative pending the outcome of the referendum to repeal the state's ban on single-use plastic bags.

1. Establishes various definitions relating to carryout bags, including:
   
   

   1. “Recycled paper bag” as a paper carryout bag provided by a store to a customer at the point of sale and contains a minimum of 40% postconsumer recycled materials. For a bag with the capacity to hold eight pounds or less, the bag must contain at least 20% postconsumer recycled materials. A recycled paper bag must be accepted for recycling in a majority of households in curbside recycling programs in the state, as well as have specified information printed on the bag.
      
      

   2. “Reusable grocery bag” as a bag that can be used a minimum of 125 times, as specified; can be cleaned; has specified information visible on the bag; cannot contain lead, cadmium, or any other toxic material that may pose a threat to public health; and, must be consistent with federal regulations related to recyclable claims if the bag producer claims the bag is recyclable
      
      

   3. “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. Exempts from this definition specified bags, including a bag provided by a pharmacy for a prescription purchase, a non-handled bag used to protect an item from damaging or contaminating other items when placed in a recycled paper bag or reusable grocery bag, and a dry-cleaning or garment bag.
      
      

   4. “Store” as a full-line self-service retail store with gross annual sales of at least $2 million and sells a line of dry grocery, canned goods, or nonfood items and some perishables (a typical grocery store); has at least 10,000 square feet of retail space and a pharmacy; or, a convenience food store or foodmart. Includes in the definition of store any other retail establishment that voluntarily agrees to comply with the requirements of this bill.
      
      

2. Prohibits stores from making single-use carryout bags available at the point of sale on the following timeline:
   
   

   1. On and after January 1, 2015, at either a grocery store or retailer with at least 10,000 square feet of retail space and a pharmacy.
      
      

   2. On and after July 1, 2016, at a convenience food store and foodmart.
      
      

3. Authorizes a store to make available a reusable grocery bag or recycled paper bag at the point of sale. Requires that these bags may not be sold to a consumer for less than $0.10.
   
   

4. Requires that all monies collected by stores pursuant to this law be retained at the store and be used for costs associated with complying with the law; actual costs of providing recycled paper bags and reusable grocery bags; and costs associated with a store’s educational materials or educational campaign encouraging the use of reusable bags.
   
   

5. Requires a store to provide a reusable bag or recycled paper bag at no charge to any customer using California Special Supplemental Food Program for Women, Infants and Children benefits, CalFresh benefits (federally known as Supplemental Nutrition Assistance Program [SNAP] benefits), California Food Assistance Program benefits, or cash aid benefits.
   
   

6. Preempts local ordinances adopted on or after September 1, 2014, relating to reusable grocery bags, single-use carryout bags, or recycled paper bags.

FISCAL EFFECT:

Unknown.

COMMENTS:

1. This bill. According to the author, "the enactment of SB 270 has increased costs and created undue hardships for consumers in California. The $0.10 fee on each bag is an extra and unnecessary expense for individuals and families. While some individuals qualify for an exemption, many Californians living on fixed incomes do not qualify for these relief programs but are still impacted." This bill would repeal the 10 cent minimum charge for reusable or recycled paper bags distributed to consumers.
   
   

2. Background on plastic. Plastic bags and plastic film together represent just over two percent of the waste stream, and every year California taxpayers spend $25 million disposing of the 14 billion plastic bags used annually. Although plastic represents a relatively small fraction of the overall waste stream in California by weight, plastic waste is the predominate form of marine debris. Plastics are estimated to comprise 60-80 percent of all marine debris and 90 percent 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. Unlike most forms of plastic, lightweight single-use bags pose a litter threat even when properly disposed of by consumers; they are prone to blowing off the working surface of landfills and off of trucks during transport.
   
   Most plastic marine debris exists as small plastic particles due to excessive UV radiation exposure and subsequent photo-degradation. These plastic pieces are confused with small fish, plankton, or krill and ingested by aquatic organisms. Over 600 marine animal species have been negatively affected by ingesting plastic 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 action. Over 100 cities and counties throughout California have adopted ordinances banning plastic bags, including Los Angeles, Santa Barbara, San Francisco, San Jose, Long Beach, Los Angeles County, Santa Clara County, and Alameda County. Many 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. While current law preempts local ordinances adopted after September 1, 2014, many local governments are considering adopting a ban while the law is inoperative pending the outcome of the referendum. If AB 190 is chaptered, the preemption would be repealed.
   
   Huntington Beach, located within the author's district, adopted a ban in 2013. In January of this year, the city council voted to "take the necessary steps" to repeal the ban, beginning with an Environmental Impact Report, which is expected to be completed by the end of April.
   
   

4. Why ten cents? Under California's plastic bag law, stores can only distribute recycled paper bags or reusable bags at the point of sale. The state law mirrors the majority of local ordinances, which based the amount on the average cost of a paper bag. The primary reason for the minimum charge is to encourage consumers to use reusable bags rather than simply switching to paper bags. In 2007, a peer-reviewed assessment, the Life Cycle Assessment for Three Types of Grocery Bags – Recyclable Plastic; Compostable, Biodegradable Plastic; and, Recycled, Recyclable Paper, was prepared for the Progressive Bag Alliance to compare the environmental impacts of different types of single-use bags. The assessment identified environmental impacts for all types of single-use bags. While paper does not have the marine impacts of plastic, the production of recycled paper bags does create significant energy, water, and greenhouse gas emissions.
   
   Without the charge, paper bag use appears to increase dramatically. For example, in Portland, Oregon, which does not charge for paper bags, paper bag use went up 491 percent one year after a ban on plastic bags. In comparison, the use of paper bags decreased nearly 24 percent in San Jose, which adopted the charge on paper bags.
   
   The charge is retained by the store and can be used by the store to comply with this bill; actual costs of providing recycled paper bags and reusable grocery bags; and costs associated with a store’s educational materials or educational campaign encouraging the use of reusable bags. In Los Angeles County, for example, stores have reported that approximately half of the paper bags they distribute are to consumers exempt from the charge. The funds collected by the charge are used to cover the costs of providing these bags. Any consumer can avoid the charge by bringing their own bags.
   
   

5. The referendum. The Referendum to Overturn Ban on Single-Use Plastic Bags was certified by the California Secretary of State on February 24, 2015 after receiving a total of 809,810 signatures, 598,684 of which were projected to be valid. The measure will be on the November 8, 2016 ballot. The American Progressive Bag Alliance is the main proponent for the repeal; other supporters include the City of Laguna Niguel, 7 other organizations, and 11 businesses. The campaign to support SB 270 and oppose the referendum is led by California vs. Big Plastic, and includes 7 State officials, 21 municipalities, over 60 organizations, and 6 businesses. As of February 2, 2015, referendum proponents have raised over $6.6 million, nearly all of that from the plastic industry. SB 270 supporters have raised just under $100,000 from environmental organizations and reusable bag manufacturers.
   
   A poll conducted by the University of Southern California and the Los Angeles Times in November 2014 found that 59% of California voters would vote in support of the ban; 34% indicated that they would vote for repeal.
   
   

6. Related legislation.
   
   

   1. AB 190 (Harper) repeals California's plastic bag law. This bill has also been referred to this committee and is set to be heard on April 13th.
      
      

   2. AB 1136 (Steinorth) expands the category of people exempt from paying the 10 cent charge for reusable bags or recycled paper bags to include seniors and students. This bill has been double referred to the Assembly Aging and Long-Term Care Committee and Natural Resources Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

American Forest & Paper Association
California Manufacturers & Technology Association
Howard Jarvis Taxpayers Association
Orange County Board of Supervisors

Opposition

1 Bag at a Time, Inc.
5 Gyres Institute
7^th Generation Advisors
American Forest & Paper Association
California League of Conservation Voters
California Retailers Association
Californians Against Waste
Center for Oceanic Awareness, Research, & Education
ChicoEco, Inc.
City of Los Angeles Councilmember Paul Koretz
City of Palo Alto
Clean Water Action
Cleanups for Change
Community Environmental Council
Command Packaging
Earthwise
Environment California
Environmental Working Group
Green Sangha
Heal the Bay
Hidden Resources
Howard Jarvis Taxpayers Association
I.Marketing Group
Marin County Hazardous and Solid Waste Management Joint Powers Authority
Napa Valley CanDo
Natural Resources Defense Council
Plastic Pollution Coalition
San Francisco Department of the Environment
Santa Clara Valley Water District
Sierra Club California

Solid Waste Association of North America (SWANA)
Surfrider Foundation
Wildcoast
World Society for the Protection of Animals
Zero Waste Humboldt

Analysis Prepared by:

Elizabeth MacMillan / NAT. RES. / (916) 319-2092

Date of Hearing: March 23, 2015

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Das Williams, Chair

ABPCA Bill Id:AB 191

Author:(Harper) – As Amended Ver:March 11, 2015

SUBJECT:

Solid waste: single-use carryout bags.

SUMMARY:

Repeals the 10 cent charge for reusable bags and recycled paper bags required by California's plastic bag law, which is currently inoperative pending the outcome of the referendum to repeal the state's ban on single-use plastic bags. Will only become operative if the referendum is approved by voters.

EXISTING LAW:

Establishes various requirements relating to the distribution of carryout bags, but is currently inoperative pending the outcome of the referendum to repeal the state's ban on single-use plastic bags.

1. Establishes various definitions relating to carryout bags, including:
   
   
   

   1. “Recycled paper bag” as a paper carryout bag provided by a store to a customer at the point of sale and contains a minimum of 40% postconsumer recycled materials. For a bag with the capacity to hold eight pounds or less, the bag must contain at least 20% postconsumer recycled materials. A recycled paper bag must be accepted for recycling in a majority of households in curbside recycling programs in the state, as well as have specified information printed on the bag.
      
      
      

   2. “Reusable grocery bag” as a bag that can be used a minimum of 125 times, as specified; can be cleaned; has specified information visible on the bag; cannot contain lead, cadmium, or any other toxic material that may pose a threat to public health; and, must be consistent with federal regulations related to recyclable claims if the bag producer claims the bag is recyclable
      
      
      

   3. “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. Exempts from this definition specified bags, including a bag provided by a pharmacy for a prescription purchase, a non-handled bag used to protect an item from damaging or contaminating other items when placed in a recycled paper bag or reusable grocery bag, and a dry-cleaning or garment bag.
      
      
      

   4. “Store” as a full-line self-service retail store with gross annual sales of at least $2 million and sells a line of dry grocery, canned goods, or nonfood items and some perishables (a typical grocery store); has at least 10,000 square feet of retail space and a pharmacy; or, a convenience food store or foodmart. Includes in the definition of store any other retail establishment that voluntarily agrees to comply with the requirements of this bill.
      
      
      

2. Prohibits stores from making single-use carryout bags available at the point of sale on the following timeline:
   
   
   

   1. On and after January 1, 2015, at either a grocery store or retailer with at least 10,000 square feet of retail space and a pharmacy.
      
      
      

   2. On and after July 1, 2016, at a convenience food store and foodmart.
      
      
      

3. Authorizes a store to make available a reusable grocery bag or recycled paper bag at the point of sale. Requires that these bags may not be sold to a consumer for less than $0.10.
   
   
   

4. Requires that all monies collected by stores pursuant to this law be retained at the store and be used for costs associated with complying with the law; actual costs of providing recycled paper bags and reusable grocery bags; and costs associated with a store’s educational materials or educational campaign encouraging the use of reusable bags.
   
   
   

5. Requires a store to provide a reusable bag or recycled paper bag at no charge to any customer using California Special Supplemental Food Program for Women, Infants and Children benefits, CalFresh benefits (federally known as Supplemental Nutrition Assistance Program [SNAP] benefits), California Food Assistance Program benefits, or cash aid benefits.
   
   
   

6. Preempts local ordinances adopted on or after September 1, 2014, relating to reusable grocery bags, single-use carryout bags, or recycled paper bags.

FISCAL EFFECT:

Unknown.

COMMENTS:

1. This bill. According to the author, "the enactment of SB 270 has increased costs and created undue hardships for consumers in California. The $0.10 fee on each bag is an extra and unnecessary expense for individuals and families. While some individuals qualify for an exemption, many Californians living on fixed incomes do not qualify for these relief programs but are still impacted." This bill would repeal the 10 cent minimum charge for reusable or recycled paper bags distributed to consumers.
   
   
   

2. Background on plastic. Plastic bags and plastic film together represent just over two percent of the waste stream, and every year California taxpayers spend $25 million disposing of the 14 billion plastic bags used annually. Although plastic represents a relatively small fraction of the overall waste stream in California by weight, plastic waste is the predominate form of marine debris. Plastics are estimated to comprise 60-80 percent of all marine debris and 90 percent 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. Unlike most forms of plastic, lightweight single-use bags pose a litter threat even when properly disposed of by consumers; they are prone to blowing off the working surface of landfills and off of trucks during transport.
   
   Most plastic marine debris exists as small plastic particles due to excessive UV radiation exposure and subsequent photo-degradation. These plastic pieces are confused with small fish, plankton, or krill and ingested by aquatic organisms. Over 600 marine animal species have been negatively affected by ingesting plastic 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 action. Over 100 cities and counties throughout California have adopted ordinances banning plastic bags, including Los Angeles, Santa Barbara, San Francisco, San Jose, Long Beach, Los Angeles County, Santa Clara County, and Alameda County. Many 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. While current law preempts local ordinances adopted after September 1, 2014, many local governments are considering adopting a ban while the law is inoperative pending the outcome of the referendum. If AB 190 is chaptered, the preemption would be repealed.
   
   Huntington Beach, located within the author's district, adopted a ban in 2013. In January of this year, the city council voted to "take the necessary steps" to repeal the ban, beginning with an Environmental Impact Report, which is expected to be completed by the end of April.
   
   
   

4. Why ten cents? Under California's plastic bag law, stores can only distribute recycled paper bags or reusable bags at the point of sale. The state law mirrors the majority of local ordinances, which based the amount on the average cost of a paper bag. The primary reason for the minimum charge is to encourage consumers to use reusable bags rather than simply switching to paper bags. In 2007, a peer-reviewed assessment, the Life Cycle Assessment for Three Types of Grocery Bags – Recyclable Plastic; Compostable, Biodegradable Plastic; and, Recycled, Recyclable Paper, was prepared for the Progressive Bag Alliance to compare the environmental impacts of different types of single-use bags. The assessment identified environmental impacts for all types of single-use bags. While paper does not have the marine impacts of plastic, the production of recycled paper bags does create significant energy, water, and greenhouse gas emissions.
   
   Without the charge, paper bag use appears to increase dramatically. For example, in Portland, Oregon, which does not charge for paper bags, paper bag use went up 491 percent one year after a ban on plastic bags. In comparison, the use of paper bags decreased nearly 24 percent in San Jose, which adopted the charge on paper bags.
   
   The charge is retained by the store and can be used by the store to comply with this bill; actual costs of providing recycled paper bags and reusable grocery bags; and costs associated with a store’s educational materials or educational campaign encouraging the use of reusable bags. In Los Angeles County, for example, stores have reported that approximately half of the paper bags they distribute are to consumers exempt from the charge. The funds collected by the charge are used to cover the costs of providing these bags. Any consumer can avoid the charge by bringing their own bags.
   
   
   

5. The referendum. The Referendum to Overturn Ban on Single-Use Plastic Bags was certified by the California Secretary of State on February 24, 2015 after receiving a total of 809,810 signatures, 598,684 of which were projected to be valid. The measure will be on the November 8, 2016 ballot. The American Progressive Bag Alliance is the main proponent for the repeal; other supporters include the City of Laguna Niguel, 7 other organizations, and 11 businesses. The campaign to support SB 270 and oppose the referendum is led by California vs. Big Plastic, and includes 7 State officials, 21 municipalities, over 60 organizations, and 6 businesses. As of February 2, 2015, referendum proponents have raised over $6.6 million, nearly all of that from the plastic industry. SB 270 supporters have raised just under $100,000 from environmental organizations and reusable bag manufacturers.
   
   A poll conducted by the University of Southern California and the Los Angeles Times in November 2014 found that 59% of California voters would vote in support of the ban; 34% indicated that they would vote for repeal.
   
   
   

6. Related legislation.
   
   
   

   1. AB 190 (Harper) repeals California's plastic bag law. This bill has also been referred to this committee and is set to be heard on March 23^rd.
      
      
      

   2. AB 1136 (Steinorth) expands the category of people exempt from paying the 10 cent charge for reusable bags or recycled paper bags to include seniors and students. This bill has been referred to this committee.

REGISTERED SUPPORT / OPPOSITION:

Support

American Forest & Paper Association
Howard Jarvis Taxpayers Association
Orange County

Opposition

1 Bag at a Time, Inc.
5 Gyres Institute
7^th Generation Advisors
California League of Conservation Voters
Californians Against Waste
Center for Oceanic Awareness, Research, & Education
ChicoEco, Inc.
City of Los Angeles Councilmember Paul Koretz
City of Palo Alto
Clean Water Action
Cleanups for Change
Community Environmental Council
Command Packaging
Earthwise
Environment California
Environmental Working Group
Green Sangha
Heal the Bay
Hidden Resources
I.Marketing Group
Marin County Board of Supervisors
Marin County Hazardous and Solid Waste Management Joint Powers Authority
Napa Valley CanDo
Natural Resources Defense Council
Plastic Pollution Coalition
Sierra Club California
Surfrider Foundation
Wildcoast
World Society for the Protection of Animals
Zero Waste Humboldt

Analysis Prepared by:

Elizabeth MacMillan / NAT. RES. / (916) 319-2092