Existing law establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which covers certain single-use packaging and plastic single-use food serviceware, as provided. As part of its comprehensive statutory scheme, the act requires the producers, as defined, of these covered materials to source reduce plastic covered material by 25%, to ensure that covered material offered for sale, distributed, or imported in or into the state on or after January 1, 2032, is recyclable or compostable, and to ensure that plastic covered material offered for sale, distributed, or imported in or into the state meets specified recycling rates.

Existing law prohibits a person from selling or offering for sale a product, as defined, that is labeled with the term compostable unless the product satisfies an identified ASTM standard specification or, if applicable, another certification.

This bill would exempt products that are eligible to be labeled with the term compostable from the source reduction requirements of the act.

Existing law establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which covers certain single-use packaging and plastic single-use food serviceware, as provided. As part of its comprehensive statutory scheme, the act requires the producers, as defined, of these covered materials to source reduce plastic covered material by 25%, to ensure that covered material offered for sale, distributed, or imported in or into the state on or after January 1, 2032, is recyclable or compostable, and to ensure that plastic covered material offered for sale, distributed, or imported in or into the state meets specified recycling rates.

Existing law prohibits a person from selling or offering for sale a product, as defined, that is labeled with the term compostable or home compostable unless the product satisfies an identified ASTM standard specification or, if applicable, another certification.

This bill would define compostable polymers as exempt products that are eligible to be labeled with the terms compostable or home compostable. The bill would exempt compostable polymers term compostable from the 25% source reduction requirements. requirements of the act.

Existing law establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which covers certain single-use packaging and plastic single-use food serviceware, as provided. As part of its comprehensive statutory scheme, the act requires the producers, as defined, of these covered materials to source reduce plastic covered material, material by 25%, to ensure that covered material offered for sale, distributed, or imported in or into the state on or after January 1, 2032, is recyclable or compostable, and to ensure that plastic covered material offered for sale, distributed, or imported in or into the state meets specified recycling rates.

Existing law establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which covers certain single-use packaging and plastic single-use food serviceware, as provided. As part of its comprehensive statutory scheme, the act requires the producers, as defined, of these covered materials to source reduce plastic covered material, to ensure that covered material offered for sale, distributed, or imported in or into the state on or after January 1, 2032, is recyclable or compostable, and to ensure that plastic covered material offered for sale, distributed, or imported in or into the state meets specified recycling rates.

The act defines the term plastic to mean a synthetic or semisynthetic material chemically synthesized by the polymerization of organic substances that can be shaped into various rigid and flexible forms, including, but not limited to, polyhydroxybutyrate. Under the act, this definition specifically excludes natural rubber and naturally occurring polymers, such as proteins.

This bill would additionally exclude from the term plastic naturally occurring polymers made by living organisms, including, but not limited to, alginate, beeswax, chitin, polysaccharides, and polyhydroxybutyrate.

GOVERNOR'S VETO

GV Bill Id:AB 1489

Author:(Wood)

As Enrolled Ver:September 14, 2023

2/3 vote

SUMMARY

This bill specifies that compostable covered materials are not subject to the source reduction requirements of the Plastic Pollution Prevention and Packaging Producer Responsibility Act (Act) established by SB 54 (Allen), Chapter 75, Statutes of 2022.

Governor’s Veto Message

This bill would specify that compostable covered materials are not subject to the source reduction requirements of the Plastic Pollution Prevention and Packaging Producer Responsibility Act (SB 54), thereby exempting compostable plastics.

Last year, I signed SB 54 (Allen), Chapter 75, Statutes of 2022, which established a comprehensive regulatory framework and the nation's most ambitious goals to reduce single-use plastic in this state. It also set aggressive timelines for the Department of Resources Recycling and Recovery (CalRecycle) to implement a new and complex program.

While I appreciate the author's intent to support compostable materials, the changes proposed by this bill will interfere with CalRecycle's ability to meet its statutory obligations to adopt regulations by January 1, 2025, as set by the Legislature. I encourage the author and stakeholders to work with CalRecycle on the issue this bill seeks to address in the regulatory process.

COMMENTS

The Act is intended to require the development of a circular economy for packaging and plastic foodware in the state. The Act requires producers to meet ambitious recycling, composting, and source reduction targets. The Act requires a producer responsibility organization to achieve specified source reduction requirements for plastic covered materials. The percentages increase from 10% by January 1, 2027, to 25% by January 1, 2032. The Act includes an "ecomodulated fee" structure that is intended to provide financial incentives, or disincentives, to encourage producers to use environmentally-preferable materials in covered material. As it relates to this bill, the ecomodulated fee is reduced for compostable plastics. CalRecycle is hosting monthly workshops as it begins the process of promulgating regulations to implement the Act.

Compostable plastics are plastics that are designed to decompose under certain conditions. There are various standards in place to determine if a plastic product is compostable or not. In recognition of various issues with the current standards, SB 1335 (Allen), Chapter 610, Statutes of 2018, which establishes reuse, recycling, and compost requirements for food packaging used in state facilities, required CalRecycle to adopt regulations to create standards for those terms. SB 54 uses the SB 1335 standards for composability.

This bill exempts compostable covered materials from the source reduction requirements of the Act. The author intends for this bill to address concerns from some manufacturers of compostable plastics related to the effect of SB 54's source reduction requirements on the industry, given how small a portion of the packaging and foodware stream compostable plastics comprise. According to the Bio-Based and Biodegradable Industries Association, compostable materials could substitute up to 5% to 8% of current plastic packaging.

According to the Author

SB 54, the Plastic Pollution Producer Responsibility Act, was a landmark piece of legislation advancing California towards a more sustainable future. Critically, SB 54 ensures that that covered material offered for sale, distributed, or imported in or into the state on or after January 1, 2032, is recyclable or compostable. Recyclable and compostable products must be a part of our future in California. To ensure that future remains viable, AB 1489 clarifies that that SB 54's 25% source-reduction requirements do not apply to certified compostable products. Under AB 1489, products eligible for exemption must meet California's carefully constructed compost standards. This clarification is needed as California transitions towards a more innovative, sustainable future.

Arguments in Support

Writing in support of this bill, Newlight Technologies, Inc. states:

Newlight has developed technology that uses naturally occurring microorganisms to convert GHGs into a carbon negative material that we call AirCarbon: a molecule made throughout nature that functions like plastic, but contains no synthetic plastics, is reusable, and is certified as both industrial and home compostable… In order to meet the goals of SB 54, there need to be clear market signals that compostable materials are a part of California's future to reduce reliance on legacy plastics.

Arguments in Opposition

Writing in opposition, a coalition of environmental organizations states:

Compostable plastics cannot fully solve our plastic production and pollution crisis. We need to begin by reducing the production and use of all single-use products and packages and move toward a circular and reusable economy. By exempting a category of single-use products, the Legislature would promote a transition to other single-use materials over reusable and refillable alternatives. Moreover, some certified compostable plastics have fossil fuel components, often have some of the same problematic additives as fossil-fuel derived plastics, and are known to contaminate waste streams. Compostable plastics were specifically negotiated under SB 54 and already receive preferential treatment because those items are subject to a reduced fee …This was an explicit agreement as part of SB 54. To undo this with a broad exemption for specific products when the issue of compostables was addressed in SB 54 is not justifiable.

FISCAL COMMENTS

According to the Assembly Appropriations Committee, CalRecycle estimates ongoing annual costs of at least $164,000 in staff costs and possible contract costs of an unknown amount to implement this bill (Circular Economy Fund).

CalRecycle notes it is currently in the process of developing regulations for the source reduction requirements of SB 54 (Allen), Chapter 75, Statutes of 2022, which will likely be filed with the Office of Administrative Law shortly after January 1, 2024. As part of this process, CalRecycle is determining what is compostable for covered materials and developing ways to establish a source reduction baseline. This bill would require CalRecycle to identify the covered materials that would be exempt under this bill, possibly reopen and modify its source reduction regulation and baseline estimation to account for this bill, and evaluate eligibility for the exemption on an ongoing basis.

VOTES

ASM NATURAL RESOURCES: 10-0-1

YES: Luz Rivas, Flora, Addis, Friedman, Hoover, Mathis, Muratsuchi, Ward, Wood, Zbur

ABS, ABST OR NV: Pellerin

ASM APPROPRIATIONS: 14-0-2

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Lowenthal, Robert Rivas

ASSEMBLY FLOOR: 66-0-14

YES: Alanis, Alvarez, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Low, Lowenthal, Maienschein, McCarty, McKinnor, Stephanie Nguyen, Ortega, Pacheco, Jim Patterson, Joe Patterson, Petrie‑Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Wicks, Wilson, Wood, Rendon

ABS, ABST OR NV: Addis, Aguiar-Curry, Arambula, Bryan, Connolly, Hart, Lee, Mathis, Muratsuchi, Papan, Pellerin, Soria, Weber, Zbur

SENATE FLOOR: 39-0-1

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Caballero

UPDATED

VERSION: September 14, 2023

CONSULTANT: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0002471

 THIRD READING  

Bill No: AB 1489

Author: Wood (D)

Amended: 4/26/23 in Assembly

Vote: 21

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 6/28/23

AYES: Allen, Dahle, Gonzalez, Hurtado, Menjivar, Nguyen, Skinner

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/23

AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener

ASSEMBLY FLOOR: 66-0, 5/25/23 - See last page for vote

SUBJECT: Solid waste: compostable covered materials

SOURCE: Author

DIGEST:

This bill specifies that compostable covered materials are not subject to the source reduction requirements of the Plastic Pollution Prevention and Packaging Producer Responsibility Act (SB 54, Allen, Chapter 75, Statutes of 2022).

ANALYSIS:

Existing law:

1. Establishes the California Integrated Waste Management Act of 1989 (IWMA), administered by the Department of Resources Recycling and Recovery (CalRecycle), to regulate the disposal, management, and recycling of solid waste. Through the IWMA, establishes a state goal that at least 75% of solid waste be source reduced, recycled, or composted by 2020. (Public Resources Code (PRC) §§ 40000 et. seq.)
2. Prohibits the sale of a plastic product that is labeled “compostable” or “home compostable,” unless it meets certain American Society for Testing and Materials (ASTM) standard specifications or other described criteria. (PRC §42357)
3. Establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which establishes a goal that single-use packaging and plastic food serviceware be 100% compostable or recyclable by Jan 1, 2032, and imposes minimum recycled content and source reduction requirements for these covered materials to be achieved through an extended producer responsibility (EPR) program. (PRC § 42070 et. seq.)
   1. Defines plastic for purposes of this bill to include both traditional plastics like high density polyethylene (HDPE) and PET Polyethylene terephthalate and aliphatic biopolyesters, such as polyhydroxyalkanoate (PHA) and polyhydroxybutyrate (PHB). This definition of plastic does not include natural rubber or naturally occurring polymers such as proteins or starches. (PRC § 42041).

This bill: Specifies that compostable covered materials are not subject to SB 54 (Allen, 2022).

Background

1. California’s Waste Goals. Under the IWMA, CalRecycle is tasked with reducing the amount of waste that gets landfilled in California. The IWMA establishes a goal that 75% of solid waste generated in the state be diverted from landfills through source reduction, recycling, and composting by 2020. However, according to CalRecycle’s 2021 State of Disposal and Recycling, the State’s 2021 recycling rate was just 40%, down from a peak of 50% in 2014. The single largest contributor to the recycling rate is exports, where recyclable material is sold outside the State. However, the amount of recyclables that California can export, and correspondingly the State’s recycling rate, may decline given new global policies like China’s National SWORD and the Basel Convention, which restrict the amount of foreign waste that countries will accept.
2. The Problem with Plastic. Plastics pose a threat to the environment from origin to end-of-life. Plastics are petroleum-based and have a large carbon footprint. The global production of plastic is responsible for three and a half percent of all greenhouse gas emissions, or more carbon emissions than the entire aviation sector. In 2021, global plastics production was estimated at 390.7 million metric tons, a four percent increase from the previous year. The United Nations Environment Programme reports that only 9% of all plastic ever made has been recycled. A further 12% has been incinerated, and the remaining 79% has accumulated in landfills or in natural environments. Once plastics enter the environment, they remain there for hundreds to thousands of years. Plastics do not break down into their constituent parts, but instead break down into very small particles of plastic, or microplastics (plastics under five millimeters). Because they are so small, microplastics can travel in the air, in water, and can be easily absorbed by living things and accumulate up the food chain. Microplastics have been found in the most pristine natural environments on earth, including in the deep ocean, pristine areas of national parks, Antarctic sea ice, and in human placentas. Laboratory studies have found that microplastics increase the risk of cancer and disrupt hormone pathways.
3. Composting and Source Reduction in SB 54. SB 54 uses an EPR approach to reach ambitious targets to reduce plastic waste. The bill will reduce single-use plastic serviceware and packaging through source reduction and recycling over the next decade. Under SB 54, producers of packaging and single-use plastics will pay $500 million per year from January 1, 2027, through January 1, 2037 through a Producer Responsibility Organization (PRO) to fund the program. The PRO in turn can collect $150 million from plastic manufacturers. CalRecycle oversees the program to ensure it is achieving its ambitious goals. In this role, CalRecycle is specifically tasked with adopting regulations to develop a process and criteria for determining the types of food service packaging that are reusable, recyclable, or compostable.

SB 54 establishes goals pertaining to composting and source reduction, including:

• 1. Requiring all covered material sold in the state be recyclable or compostable by January 1, 2032; and
  2. Achieving a 25% source reduction for all covered material by 2032.

SB 54 also considers the relative environmental benefits of alternatives to traditional plastics through an “eco modulated fee” structure that provides financial incentives to producers for using materials that are more environmentally friendly products than traditional plastics, like paper, metal, or compostable plastic.

1. Compostability and Plastics. Compostable materials break down into compost under certain environmental conditions. While some compostable products can decompose under normal backyard conditions, others require high temperatures, aeration, and high pressure and nutrient concentrations (roughly analogous to a pressure cooker) in order to break down.

In order to be considered “compostable” under state law, materials have to meet certain standards. Generally, California uses ASTM International standards, which are widely accepted international standards, to determine whether something is compostable. ASTM includes a classification for industrially compostable material, which breaks down in 90 to 180 days in an industrial facility (D6400- 19), and home compostable material, which must degrade within 180 days under home composting conditions (D6868-19).

There are several types of plastic on the market that meet this criteria for compostability, including PHA and PHB. PHA and PHB are made from bacterial fermentation of plant starch and can be used as an alternative for traditional plastic single-use items such as foodware and packaging.

To be considered compostable under SB 54, products must meet the requirements to be labeled as compostable as enacted in AB 1201 (Ting, 2021). Under AB 1201, products can be labeled compostable only if they meet stringent criteria for compostability which includes being certified by a third party as compostable and limiting PFAS and total organic fluorine, among other criteria. Currently, plastic alternatives like PHB have not been found to meet this standard for compostability, although as the technology evolves, these products or other plastic alternatives may do so in the future.

Comments

1. Purpose of Bill. According to the author, “SB 54, the Plastic Pollution Producer Responsibility Act, was a landmark piece of legislation advancing California towards a more sustainable future. Critically, SB 54 ensures that that covered material offered for sale, distributed, or imported in or into the state on or after January 1, 2032, is recyclable or compostable. Recyclable and compostable products must be a part of our future in California. To ensure that the future remains viable, AB 1489 clarifies that SB 54’s 25% source reduction requirements do not apply to certified compostable products. Under AB 1489, products eligible for exemption must meet California’s carefully constructed compost standards. This clarification is needed as California transitions towards a more innovative, sustainable future.”
2. Compostable v. Plastic in SB 54. SB 54 establishes an overarching goal that 100% of packaging and single-use plastic products will be recyclable or compostable by January 1, 2032. This sends a clear signal to move away from traditional plastics and instead use recyclable or compostable materials, like paper or potentially compostable plastic. At the same time, SB 54 ratchets down the volume of packaging and single-use plastic products produced by establishing a source reduction goal of 25% by 2032. However, if a material is both compostable and plastic, it would be caught between these two directives. As new compostable plastics emerge on the market, or if existing materials like PHB improve to reach the high compostability standards laid out in SB 54, compostable plastic could become an important material to achieve SB 54’s compostable material goals. Since there is no or almost no plastic that meets this compostability standard on the market to date, production of compostable plastic would have to ramp up. At the same time, compostable plastics, as plastics, would need to meet the source-reduction goals in SB 54, meaning that the amount of material produced should be ratcheted down. These two objectives are in conflict: AB 1489 clarifies that compostable products, whether they are plastic or paper, should be excluded from SB 54’s source reduction goals.

While swapping in compostable products for single-use packaging is less preferable from a zero-waste standpoint than reducing those materials, compostables are not likely to saturate the market to replace plastic packaging and single-use items. According to the Bio-Based and Biodegradable Industries Association, compostable materials could substitute up to 5-8% of current plastic packaging.

1. Accounting for Plastic Alternatives in SB 54. SB 54 treats sustainable, recyclable or reusable materials, including compostables, differently from traditional plastics by using an “eco-modulated fee” for plastic packaging. The fee will be higher for traditional plastics and lower for more sustainable products, including compostables. The amount of the discount that will be given to compostables will be established through regulations developed by CalRecycle. CalRecycle is currently hosting monthly informal workshops as it begins the process of promulgating regulations to implement SB 54. The eco modulated fee could achieve many of the same goals or work in concert with the provisions in this bill.

Related/Prior Legislation

SB 54 (Allen, Chapter 75, Statutes of 2022) established an EPR program to achieve recycling rates, composting and recyclability goals, and source reduction goals for single-use, disposable packaging or single-use, disposal food service ware.

AB 1201 (Ting, Chapter 504, Statutes of 2021) prohibited a person from selling a plastic product labeled with the term “compostable,” “home compostable,” or “soil biodegradable” unless the product meets specified standards and satisfies specified criteria and would authorize CalRecycle to adopt regulations for plastic product labeling.

AB 1583 (Chapter 690, Statutes of 2019), requires CalRecycle to, by July 1, 2020, convene a Statewide Commission on Recycling Markets and Curbside Recycling, and, by January 1, 2021, to issue policy recommendations to achieve market development goals and identify products that are recyclable or compostable.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, CalRecycle estimates ongoing costs of about $264,000 annually and $700,000 every other year (Circular Economy Fund) to implement the provisions of this bill.

SUPPORT: (Verified 9/1/23)

Biodegradable Products Institute

Go!pha

Newlight Technologies

The Pha Coalition, LLC

OPPOSITION: (Verified 9/1/23)

Last Plastic Straw

Monterey Bay Aquarium

Ocean Conservancy

Oceana

Plastic Free Future

Plastic Oceans International

Plastic Pollution Coalition

Save Our Shores

The Nature Conservancy

ARGUMENTS IN SUPPORT: Writing in support of this bill, Newlight Technologies states: “Newlight has developed technology that uses naturally occurring microorganisms to convert GHGs into a carbon negative material that we call AirCarbon: a molecule made throughout nature that functions like plastic, but contains no synthetic plastics, is reusable, and is certified as both industrial and home compostable…In order to meet the goals of SB 54, there need to be clear market signals that compostable materials are a part of California's future to reduce reliance on legacy plastics.”

ARGUMENTS IN OPPOSITION: Writing in opposition, a coalition of environmental organizations states: “Compostable plastics cannot fully solve our plastic production and pollution crisis. We need to begin by reducing the production and use of all single-use products and packages and move toward a circular and reusable economy. By exempting a category of single-use products, the Legislature would promote a transition to other single-use materials over reusable and refillable alternatives. Moreover, some certified compostable plastics have fossil fuel components, often have some of the same problematic additives as fossil-fuel derived plastics, and are known to contaminate waste streams. Compostable plastics were specifically negotiated under SB 54 and already receive preferential treatment because those items are subject to a reduced fee …This was an explicit agreement as part of SB 54. To undo this with a broad exemption for specific products when the issue of compostables was addressed in SB 54 is not justifiable.”

ASSEMBLY FLOOR: 66-0, 5/25/23

AYES: Alanis, Alvarez, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Low, Lowenthal, Maienschein, McCarty, McKinnor, Stephanie Nguyen, Ortega, Pacheco, Jim Patterson, Joe Patterson, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Wicks, Wilson, Wood, Rendon

NO VOTE RECORDED: Addis, Aguiar-Curry, Arambula, Bryan, Connolly, Hart, Lee, Mathis, Muratsuchi, Papan, Pellerin, Soria, Weber, Zbur

Prepared by: Brynn Cook / E.Q. / (916) 651-4108

9/2/23 9:51:55

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1489 (Wood) - Solid waste: compostable covered materials

Bill Summary:

This bill would specify that compostable covered materials are not subject to the source reduction requirements of the Plastic Pollution Prevention and Packaging Producer Responsibility Act.

Fiscal Impact:

• The Department of Resources Recovery and Recycling (CalRecycle) estimates ongoing costs of about $264,000 annually and $700,000 every other year (Circular Economy Fund) to implement the provisions of this bill.

Background:

California’s Waste Goals. Under the IWMA, CalRecycle is tasked with reducing the amount of waste that gets landfilled in California. The IWMA establishes a goal that 75% of solid waste generated in the state be diverted from landfills through source reduction, recycling, and composting by 2020. However, according to CalRecycle’s 2021 State of Disposal and Recycling, the State’s 2021 recycling rate was just 40%, down from a peak of 50% in 2014. The single largest contributor to the recycling rate is exports, where recyclable material is sold outside the State. However, the amount of recyclables that California can export, and correspondingly the State’s recycling rate, may decline given new global policies like China’s National SWORD and the Basel Convention, which restrict the amount of foreign waste that countries will accept.

The Problem with Plastic. Plastics pose a threat to the environment from origin to end-of-life. Plastics are petroleum-based and have a large carbon footprint. The global production of plastic is responsible for three and a half percent of all greenhouse gas emissions, or more carbon emissions than the entire aviation sector. In 2021, global plastics production was estimated at 390.7 million metric tons, a four percent increase from the previous year. The United Nations Environment Programme reports that only 9% of all plastic ever made has been recycled. A further 12% has been incinerated, and the remaining 79% has accumulated in landfills or in natural environments. Once plastics enter the environment, they remain there for hundreds to thousands of years. Plastics do not break down into their constituent parts, but instead break down into very small particles of plastic, or microplastics (plastics under five millimeters). Because they are so small, microplastics can travel in the air, in water, and can be easily absorbed by living things and accumulate up the food chain. Microplastics have been found in the most pristine natural environments on earth, including in the deep ocean, pristine areas of national parks, Antarctic sea ice, and in human placentas. Laboratory studies have found that microplastics increase the risk of cancer and disrupt hormone pathways.

Composting and Source Reduction in SB 54. SB 54 uses an EPR approach to reach ambitious targets to reduce plastic waste. The bill will reduce single-use plastic serviceware and packaging through source reduction and recycling over the next decade. Under SB 54, producers of packaging and single-use plastics will pay $500 million per year from January 1, 2027, through January 1, 2037 through a Producer Responsibility Organization (PRO) to fund the program. The PRO in turn can collect $150 million from plastic manufacturers. CalRecycle oversees the program to ensure it is achieving its ambitious goals. In this role, CalRecycle is specifically tasked with adopting regulations to develop a process and criteria for determining the types of food service packaging that are reusable, recyclable, or compostable.

SB 54 establishes goals pertaining to composting and source reduction, including:

Requiring all covered material sold in the state be recyclable or compostable by January 1, 2032; and

Achieving a 25% source reduction for all covered material by 2032.

SB 54 also considers the relative environmental benefits of alternatives to traditional plastics through an “eco modulated fee” structure that provides financial incentives to producers for using materials that are more environmentally friendly products than traditional plastics, like paper, metal, or compostable plastic.

Compostability and Plastics. Compostable materials break down into compost under certain environmental conditions. While some compostable products can decompose under normal backyard conditions, others require high temperatures, aeration, and high pressure and nutrient concentrations (roughly analogous to a pressure cooker) in order to break down.

Proposed Law:

This bill would specify that compostable covered materials are not subject to the source reduction requirements of the Plastic Pollution Prevention and Packaging Producer Responsibility Act (Act).

Related Legislation:

SB 54 (Allen, Chapter 75, Statutes of 2022). Establishes an EPR program to achieve recycling rates, composting and recyclability goals, and source reduction goals for single-use, disposable packaging or single-use, disposal food service ware.

AB 1201 (Ting, Chapter 504, Statutes of 2021). Prohibits a person from selling a plastic product labeled with the term “compostable,” “home compostable,” or “soil biodegradable” unless the product meets specified standards and satisfies specified criteria and would authorize CalRecycle to adopt regulations for plastic product labeling.

AB 1583 (Chapter 690, Statutes of 2019). Requires CalRecycle to, by July 1, 2020, convene a Statewide Commission on Recycling Markets and Curbside Recycling, and, by January 1, 2021, to issue policy recommendations to achieve market development goals and identify products that are recyclable or compostable.

SB 1353 (Allen, Chapter 610, Statutes of 2018). Prohibits a state food service facility from dispensing prepared food using type of food service packaging unless the packaging is on a specified list maintained by CalRecycle and has been determined to be reusable, recyclable, or compostable. 

Staff Comments:

CalRecycle notes that resources would be needed to identify the covered materials that would be exempt under this bill, as written. SB 54 directs CalRecycle to make the determination on what is compostable for covered materials. Staff at the department would be needed in addition to a contract, to conduct a study of the source reduction baseline estimation. Currently, the department is developing ways to estimate the source reduction baseline without relying on contracted studies. However, any changes that may complicate the baseline estimation could require a contract. Furthermore, eligibility to be considered “compostable covered material” could change over time, which may require additional contracted studies in the years out.

If this bill were to go into effect on Jan 1, 2024 the department would have already 1) put a process in place for determining the baseline and 2) developed regulations regarding source reduction to be filed with OAL shortly after Jan 1, 2024 as required by SB 54.  

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1489 (Wood) - Solid waste: compostable covered materials

Bill Summary:

This bill would specify that compostable covered materials are not subject to the source reduction requirements of the Plastic Pollution Prevention and Packaging Producer Responsibility Act.

Fiscal Impact:

• The Department of Resources Recovery and Recycling (CalRecycle) estimates ongoing costs of about $264,000 annually and $700,000 every other year (Circular Economy Fund) to implement the provisions of this bill.

Background:

California’s Waste Goals. Under the IWMA, CalRecycle is tasked with reducing the amount of waste that gets landfilled in California. The IWMA establishes a goal that 75% of solid waste generated in the state be diverted from landfills through source reduction, recycling, and composting by 2020. However, according to CalRecycle’s 2021 State of Disposal and Recycling, the State’s 2021 recycling rate was just 40%, down from a peak of 50% in 2014. The single largest contributor to the recycling rate is exports, where recyclable material is sold outside the State. However, the amount of recyclables that California can export, and correspondingly the State’s recycling rate, may decline given new global policies like China’s National SWORD and the Basel Convention, which restrict the amount of foreign waste that countries will accept.

The Problem with Plastic. Plastics pose a threat to the environment from origin to end-of-life. Plastics are petroleum-based and have a large carbon footprint. The global production of plastic is responsible for three and a half percent of all greenhouse gas emissions, or more carbon emissions than the entire aviation sector. In 2021, global plastics production was estimated at 390.7 million metric tons, a four percent increase from the previous year. The United Nations Environment Programme reports that only 9% of all plastic ever made has been recycled. A further 12% has been incinerated, and the remaining 79% has accumulated in landfills or in natural environments. Once plastics enter the environment, they remain there for hundreds to thousands of years. Plastics do not break down into their constituent parts, but instead break down into very small particles of plastic, or microplastics (plastics under five millimeters). Because they are so small, microplastics can travel in the air, in water, and can be easily absorbed by living things and accumulate up the food chain. Microplastics have been found in the most pristine natural environments on earth, including in the deep ocean, pristine areas of national parks, Antarctic sea ice, and in human placentas. Laboratory studies have found that microplastics increase the risk of cancer and disrupt hormone pathways.

Composting and Source Reduction in SB 54. SB 54 uses an EPR approach to reach ambitious targets to reduce plastic waste. The bill will reduce single-use plastic serviceware and packaging through source reduction and recycling over the next decade. Under SB 54, producers of packaging and single-use plastics will pay $500 million per year from January 1, 2027, through January 1, 2037 through a Producer Responsibility Organization (PRO) to fund the program. The PRO in turn can collect $150 million from plastic manufacturers. CalRecycle oversees the program to ensure it is achieving its ambitious goals. In this role, CalRecycle is specifically tasked with adopting regulations to develop a process and criteria for determining the types of food service packaging that are reusable, recyclable, or compostable.

SB 54 establishes goals pertaining to composting and source reduction, including:

Requiring all covered material sold in the state be recyclable or compostable by January 1, 2032; and

Achieving a 25% source reduction for all covered material by 2032.

SB 54 also considers the relative environmental benefits of alternatives to traditional plastics through an “eco modulated fee” structure that provides financial incentives to producers for using materials that are more environmentally friendly products than traditional plastics, like paper, metal, or compostable plastic.

Compostability and Plastics. Compostable materials break down into compost under certain environmental conditions. While some compostable products can decompose under normal backyard conditions, others require high temperatures, aeration, and high pressure and nutrient concentrations (roughly analogous to a pressure cooker) in order to break down.

Proposed Law:

This bill would specify that compostable covered materials are not subject to the source reduction requirements of the Plastic Pollution Prevention and Packaging Producer Responsibility Act (Act).

Related Legislation:

SB 54 (Allen, Chapter 75, Statutes of 2022). Establishes an EPR program to achieve recycling rates, composting and recyclability goals, and source reduction goals for single-use, disposable packaging or single-use, disposal food service ware.

AB 1201 (Ting, Chapter 504, Statutes of 2021). Prohibits a person from selling a plastic product labeled with the term “compostable,” “home compostable,” or “soil biodegradable” unless the product meets specified standards and satisfies specified criteria and would authorize CalRecycle to adopt regulations for plastic product labeling.

AB 1583 (Chapter 690, Statutes of 2019). Requires CalRecycle to, by July 1, 2020, convene a Statewide Commission on Recycling Markets and Curbside Recycling, and, by January 1, 2021, to issue policy recommendations to achieve market development goals and identify products that are recyclable or compostable.

SB 1353 (Allen, Chapter 610, Statutes of 2018). Prohibits a state food service facility from dispensing prepared food using type of food service packaging unless the packaging is on a specified list maintained by CalRecycle and has been determined to be reusable, recyclable, or compostable. 

Staff Comments:

CalRecycle notes that resources would be needed to identify the covered materials that would be exempt under this bill, as written. SB 54 directs CalRecycle to make the determination on what is compostable for covered materials. Staff at the department would be needed in addition to a contract, to conduct a study of the source reduction baseline estimation. Currently, the department is developing ways to estimate the source reduction baseline without relying on contracted studies. However, any changes that may complicate the baseline estimation could require a contract. Furthermore, eligibility to be considered “compostable covered material” could change over time, which may require additional contracted studies in the years out.

If this bill were to go into effect on Jan 1, 2024 the department would have already 1) put a process in place for determining the baseline and 2) developed regulations regarding source reduction to be filed with OAL shortly after Jan 1, 2024 as required by SB 54.  

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Allen, Chair

2023 - 2024 Regular

SUBJECT: Solid waste: compostable covered materials

DIGEST: This bill specifies that compostable covered materials are not subject to the source reduction requirements of the Plastic Pollution Prevention and Packaging Producer Responsibility Act (SB 54, Allen, Chapter 75, Statutes of 2022).

ANALYSIS:

Existing law:

1. Establishes the California Integrated Waste Management Act of 1989 (IWMA), administered by the Department of Resources Recycling and Recovery (CalRecycle), to regulate the disposal, management, and recycling of solid waste. Through the IWMA, establishes a state goal that at least 75% of solid waste be source reduced, recycled, or composted by 2020. (Public Resources Code (PRC) §§ 40000 et. seq.)
2. Prohibits the sale of a plastic product that is labeled “compostable” or “home compostable,” unless it meets certain American Society for Testing and Materials (ASTM) standard specifications or other described criteria. (PRC §42357)
3. Prohibits a state food service facility from using packaging food packaging unless it meets certain criteria for compostability including:
   1. Meets ASTM standard specifications identified in existing law;
   2. Must be regularly collected and accepted for processing at public and private compost facilities; and
   3. Must break down in a public or private aerobic compost facility designed for and capable of processing postconsumer food waste and food-soiled paper. (PRC §42370)
4. Establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which establishes a goal that single-use packaging and plastic food serviceware be 100% compostable or recyclable by Jan 1, 2032, and imposes minimum recycled content and source reduction requirements for these covered materials to be achieved through an extended producer responsibility (EPR) program. (PRC § 42070 et. seq.)
   1. Defines plastic for purposes of this bill to include both traditional plastics like high density polyethylene (HDPE) and PET Polyethylene terephthalate and aliphatic biopolyesters, such as polyhydroxyalkanoate (PHA) and polyhydroxybutyrate (PHB). This definition of plastic does not include natural rubber or naturally occurring polymers such as proteins or starches. (PRC § 42041).
      

This bill: Specifies that compostable covered materials are not subject to SB 54 (Allen, 2022).

Background

1. California’s Waste Goals. Under the IWMA, CalRecycle is tasked with reducing the amount of waste that gets landfilled in California. The IWMA establishes a goal that 75% of solid waste generated in the state be diverted from landfills through source reduction, recycling, and composting by 2020. However, according to CalRecycle’s 2021 State of Disposal and Recycling, the State’s 2021 recycling rate was just 40%, down from a peak of 50% in 2014. The single largest contributor to the recycling rate is exports, where recyclable material is sold outside the State. However, the amount of recyclables that California can export, and correspondingly the State’s recycling rate, may decline given new global policies like China’s National SWORD and the Basel Convention, which restrict the amount of foreign waste that countries will accept.
2. The Problem with Plastic. Plastics pose a threat to the environment from origin to end-of-life. Plastics are petroleum-based and have a large carbon footprint. The global production of plastic is responsible for three and a half percent of all greenhouse gas emissions, or more carbon emissions than the entire aviation sector. In 2021, global plastics production was estimated at 390.7 million metric tons, a four percent increase from the previous year. The United Nations Environment Programme reports that only 9% of all plastic ever made has been recycled. A further 12% has been incinerated, and the remaining 79% has accumulated in landfills or in natural environments. Once plastics enter the environment, they remain there for hundreds to thousands of years. Plastics do not break down into their constituent parts, but instead break down into very small particles of plastic, or microplastics (plastics under five millimeters). Because they are so small, microplastics can travel in the air, in water, and can be easily absorbed by living things and accumulate up the food chain. Microplastics have been found in the most pristine natural environments on earth, including in the deep ocean, pristine areas of national parks, Antarctic sea ice, and in human placentas. Laboratory studies have found that microplastics increase the risk of cancer and disrupt hormone pathways.
3. Composting and Source Reduction in SB 54. SB 54 uses an EPR approach to reach ambitious targets to reduce plastic waste. The bill will reduce single-use plastic serviceware and packaging through source reduction and recycling over the next decade. Under SB 54, producers of packaging and single-use plastics will pay $500 million per year from January 1, 2027, through January 1, 2037 through a Producer Responsibility Organization (PRO) to fund the program. The PRO in turn can collect $150 million from plastic manufacturers. CalRecycle oversees the program to ensure it is achieving its ambitious goals. In this role, CalRecycle is specifically tasked with adopting regulations to develop a process and criteria for determining the types of food service packaging that are reusable, recyclable, or compostable.

SB 54 establishes goals pertaining to composting and source reduction, including:

• 1. Requiring all covered material sold in the state be recyclable or compostable by January 1, 2032; and
  2. Achieving a 25% source reduction for all covered material by 2032.

SB 54 also considers the relative environmental benefits of alternatives to traditional plastics through an “eco modulated fee” structure that provides financial incentives to producers for using materials that are more environmentally friendly products than traditional plastics, like paper, metal, or compostable plastic.

1. Compostability and Plastics. Compostable materials break down into compost under certain environmental conditions. While some compostable products can decompose under normal backyard conditions, others require high temperatures, aeration, and high pressure and nutrient concentrations (roughly analogous to a pressure cooker) in order to break down.

In order to be considered “compostable” under state law, materials have to meet certain standards. Generally, California uses ASTM International standards, which are widely accepted international standards, to determine whether something is compostable. ASTM includes a classification for industrially compostable material, which breaks down in 90 to 180 days in an industrial facility (D6400- 19), and home compostable material, which must degrade within 180 days under home composting conditions. (D6868-19).

There are several types of plastic on the market that meet this criteria for compostability, including PHA and PHB. PHA and PHB are made from bacterial fermentation of plant starch and can be used as an alternative for traditional plastic single-use items such as foodware and packaging.

SB 54 uses a more stringent criteria for compostability developed in SB 1335 (Allen, Chapter 610, Statutes of 2018). To be considered compostable under this standard, products must break down as easily as food waste and food-soiled paper. CalRecycle regulations on SB 1335 require that the packaging must meet the ASTM standards D6400-19 or D6868-19, demonstrate 90% biodegradation within 60 days, and comply with related statutory requirements to be labeled “compostable” in the state.

Compostable plastics currently on the market do not break down as easily as food waste and would not meet the standards of compostable under SB 54: however, materials that meet these standards could be developed at any time.

Comments

1. Purpose of Bill. According to the author, “SB 54, the Plastic Pollution Producer Responsibility Act, was a landmark piece of legislation advancing California towards a more sustainable future. Critically, SB 54 ensures that that covered material offered for sale, distributed, or imported in or into the state on or after January 1, 2032, is recyclable or compostable. Recyclable and compostable products must be a part of our future in California. To ensure that the future remains viable, AB 1489 clarifies that SB 54’s 25% source reduction requirements do not apply to certified compostable products. Under AB 1489, products eligible for exemption must meet California’s carefully constructed compost standards. This clarification is needed as California transitions towards a more innovative, sustainable future.”
2. Compostable v. Plastic in SB 54. SB 54 establishes an overarching goal that 100% of packaging and single-use plastic products will be recyclable or compostable by January 1, 2032. This sends a clear signal to move away from traditional plastics and instead use recyclable or compostable materials, like paper or potentially compostable plastic. At the same time, SB 54 ratchets down the volume of packaging and single-use plastic products produced by establishing a source reduction goal of 25% by 2032. However, if a material is both compostable and plastic, it would be caught between these two directives. As new compostable plastics emerge on the market, or if existing materials like PHB improve to reach the high compostability standards laid out in SB 54, compostable plastic could become an important material to achieve SB 54’s compostable material goals. Since there is no or almost no plastic that meets this compostability standard on the market to date, production of compostable plastic would have to ramp up. At the same time, compostable plastics, as plastics, would need to meet the source-reduction goals in SB 54, meaning that the amount of material produced should be ratcheted down. These two objectives are in conflict: AB 1489 clarifies that compostable products, whether they are plastic or paper, should be excluded from SB 54’s source reduction goals.

While swapping in compostable products for single-use packaging is less preferable from a zero-waste standpoint than reducing those materials, compostables are not likely to saturate the market to replace plastic packaging and single-use items. According to the Bio-Based and Biodegradable Industries Association, compostable materials could substitute up to 5-8% of current plastic packaging.

1. Accounting for Plastic Alternatives in SB 54. SB 54 treats sustainable, recyclable or reusable materials, including compostables, differently from traditional plastics by using an “eco-modulated fee” for plastic packaging. The fee will be higher for traditional plastics and lower for more sustainable products, including compostables. The amount of the discount that will be given to compostables will be established through regulations developed by CalRecycle. CalRecycle is currently hosting monthly informal workshops as it begins the process of promulgating regulations to implement SB 54. The eco modulated fee could achieve many of the same goals or work in concert with the provisions in this bill.
   
   

Related/Prior Legislation

SB 54 (Allen, Chapter 75, Statutes of 2022). Establishes an EPR program to achieve recycling rates, composting and recyclability goals, and source reduction goals for single-use, disposable packaging or single-use, disposal food service ware.

AB 1201 (Ting, Chapter 504, Statutes of 2021). Prohibits a person from selling a plastic product labeled with the term “compostable,” “home compostable,” or “soil biodegradable” unless the product meets specified standards and satisfies specified criteria and would authorize CalRecycle to adopt regulations for plastic product labeling.

AB 1583 (Chapter 690, Statutes of 2019). Requires CalRecycle to, by July 1, 2020, convene a Statewide Commission on Recycling Markets and Curbside Recycling, and, by January 1, 2021, to issue policy recommendations to achieve market development goals and identify products that are recyclable or compostable.

SB 1353 (Allen, Chapter 610, Statutes of 2018). Prohibits a state food service facility from dispensing prepared food using type of food service packaging unless the packaging is on a specified list maintained by CalRecycle and has been determined to be reusable, recyclable, or compostable. 

SOURCE:

Author

SUPPORT:

Biodegradable Products Institute

Go!pha
Newlight Technologies

The Pha Coalition, LLC

OPPOSITION:

Last Plastic Straw
Monterey Bay Aquarium
Ocean Conservancy
Oceana
Plastic Free Future
Plastic Oceans International
Plastic Pollution Coalition
Save Our Shores
The Nature Conservancy

Arguments in Support. Writing in support of this bill, Newlight Technologies, Inc. states: “Newlight has developed technology that uses naturally occurring microorganisms to convert GHGs into a carbon negative material that we call AirCarbon: a molecule made throughout nature that functions like plastic, but contains no synthetic plastics, is reusable, and is certified as both industrial and home compostable…In order to meet the goals of SB 54, there need to be clear market signals that compostable materials are a part of California's future to reduce reliance on legacy plastics.”

Arguments in Opposition. Writing in opposition, a coalition of environmental organizations states: “Compostable plastics cannot fully solve our plastic production and pollution crisis. We need to begin by reducing the production and use of all single-use products and packages and move toward a circular and reusable economy. By exempting a category of single-use products, the Legislature would promote a transition to other single-use materials over reusable and refillable alternatives. Moreover, some certified compostable plastics have fossil fuel components, often have some of the same problematic additives as fossil-fuel derived plastics, and are known to contaminate waste streams. Compostable plastics were specifically negotiated under SB 54 and already receive preferential treatment because those items are subject to a reduced fee …This was an explicit agreement as part of SB 54. To undo this with a broad exemption for specific products when the issue of compostables was addressed in SB 54 is not justifiable.”

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1489

Author:(Wood)

As Amended Ver:April 26, 2023

Majority vote

SUMMARY

This bill specifies that compostable covered materials are not subject to the source reduction requirements of the Plastic Pollution Prevention and Packaging Producer Responsibility Act (Act).

Major Provisions

COMMENTS

SB 54 (Allen), Chapter 75, Statutes of 2022, established the Act to require the development of a circular economy for packaging and plastic foodware in the state. The Act requires producers to meet ambitious recycling, composting, and source reduction targets. The Act requires a producer responsibility organization to achieve specified source reduction requirements for plastic covered materials. The percentages increase from 10% by January 1, 2027, to 25% by January 1, 2032. The Act includes an "ecomodulated fee" structure that is intended to provide financial incentives, or disincentives, to encourage producers to use environmentally-preferable materials in covered material. As it relates to this bill, the ecomodulated fee is reduced for compostable plastics. CalRecycle is hosting monthly workshops as it begins the process of promulgating regulations to implement the Act.

Compostable plastics are plastics that are designed to decompose under certain conditions. There are various standards in place to determine if a plastic product is compostable or not. In recognition of various issues with the current standards, SB 1335 (Allen), Chapter 610, Statutes of 2018, which establishes reuse, recycling, and compost requirements for food packaging used in state facilities, required CalRecycle to adopt regulations to create standards for those terms. SB 54 uses the SB 1335 standards for composability.

This bill exempts compostable covered materials from the source reduction requirements of the Act. The author intends for this bill to address concerns from some manufacturers of compostable plastics related to the effect of SB 54's source reduction requirements on the industry, given how small a portion of the packaging and foodware stream compostable plastics comprise. According to the Bio-Based and Biodegradable Industries Association, compostable materials could substitute up to 5% to 8% of current plastic packaging.

According to the Author

SB 54, the Plastic Pollution Producer Responsibility Act, was a landmark piece of legislation advancing California towards a more sustainable future. Critically, SB 54 ensures that that covered material offered for sale, distributed, or imported in or into the state on or after January 1, 2032, is recyclable or compostable. Recyclable and compostable products must be a part of our future in California. To ensure that future remains viable, AB 1489 clarifies that that SB 54's 25% source-reduction requirements do not apply to certified compostable products. Under AB 1489, products eligible for exemption must meet California's carefully constructed compost standards. This clarification is needed as California transitions towards a more innovative, sustainable future.

Arguments in Support

Writing in support of this bill, Newlight Technologies, Inc. states:

Newlight has developed technology that uses naturally occurring microorganisms to convert GHGs into a carbon negative material that we call AirCarbon: a molecule made throughout nature that functions like plastic, but contains no synthetic plastics, is reusable, and is certified as both industrial and home compostable…In order to meet the goals of SB 54, there need to be clear market signals that compostable materials are a part of California's future to reduce reliance on legacy plastics.

Arguments in Opposition

Writing in opposition, a coalition of environmental organizations states:

Compostable plastics cannot fully solve our plastic production and pollution crisis. We need to begin by reducing the production and use of all single-use products and packages and move toward a circular and reusable economy. By exempting a category of single-use products, the Legislature would promote a transition to other single-use materials over reusable and refillable alternatives. Moreover, some certified compostable plastics have fossil fuel components, often have some of the same problematic additives as fossil-fuel derived plastics, and are known to contaminate waste streams. Compostable plastics were specifically negotiated under SB 54 and already receive preferential treatment because those items are subject to a reduced fee …This was an explicit agreement as part of SB 54. To undo this with a broad exemption for specific products when the issue of compostables was addressed in SB 54 is not justifiable.

FISCAL COMMENTS

CalRecycle estimates ongoing annual costs of at least $164,000 in staff costs and possible contract costs of an unknown amount to implement this bill (Circular Economy Fund).

CalRecycle notes it is currently in the process of developing regulations for the source reduction requirements of SB 54 (Allen), Chapter 75, Statutes of 2022, which will likely be filed with the Office of Administrative Law shortly after January 1, 2024. As part of this process, CalRecycle is determining what is compostable for covered materials and developing ways to establish a source reduction baseline. This bill would require CalRecycle to identify the covered materials that would be exempt under this bill, possibly reopen and modify its source reduction regulation and baseline estimation to account for this bill, and evaluate eligibility for the exemption on an ongoing basis.

VOTES

ASM NATURAL RESOURCES: 10-0-1

YES: Luz Rivas, Flora, Addis, Friedman, Hoover, Mathis, Muratsuchi, Ward, Wood, Zbur

ABS, ABST OR NV: Pellerin

ASM APPROPRIATIONS: 14-0-2

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Lowenthal, Robert Rivas

UPDATED

VERSION: April 26, 2023

CONSULTANT: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0000741

Date of Hearing: May 10, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 1489

Author:(Wood) – As Amended Ver:April 26, 2023

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill specifies that compostable covered materials are not subject to the source reduction requirements of the Plastic Pollution Prevention and Packaging Producer Responsibility Act (Act).

FISCAL EFFECT:

CalRecycle estimates ongoing annual costs of at least $164,000 in staff costs and possible contract costs of an unknown amount to implement this bill (Circular Economy Fund).

CalRecycle notes it is currently in the process of developing regulations for the source reduction requirements of SB 54 (Allen), Chapter 75, Statutes of 2022, which will likely be filed with the Office of Administrative Law shortly after January 1, 2024. As part of this process, CalRecycle is determining what is compostable for covered materials and developing ways to establish a source reduction baseline. This bill would require CalRecycle to identify the covered materials that would be exempt under this bill, possibly reopen and modify its source reduction regulation and baseline estimation to account for this bill, and evaluate eligibility for the exemption on an ongoing basis.

COMMENTS:

1) Purpose. According to the author:

SB 54, the Plastic Pollution Producer Responsibility Act, was a landmark piece of legislation advancing California towards a more sustainable future. Critically, SB 54 ensures that that covered material offered for sale, distributed, or imported in or into the state on or after January 1, 2032, is recyclable or compostable. Recyclable and compostable products must be a part of our future in California. To ensure that future remains viable, AB 1489 clarifies that that SB 54’s 25% source-reduction requirements do not apply to certified compostable products. Under AB 1489, products eligible for exemption must meet California’s carefully constructed compost standards. This clarification is needed as California transitions towards a more innovative, sustainable future.

2) Background. SB 54 established the Act to require the development of a circular economy for packaging and plastic foodware in the state. The Act requires producers to meet ambitious recycling, composting, and source reduction targets. The Act requires a producer responsibility organization to achieve specified source reduction requirements for plastic covered materials. The percentages increase from 10% by January 1, 2027, to 25% by January 1, 2032. The Act includes an “ecomodulated fee” structure that is intended to provide financial incentives, or disincentives, to encourage producers to use environmentally-preferable materials in covered material. As it relates to this bill, the ecomodulated fee is reduced for compostable plastics. CalRecycle is hosting monthly workshops as it begins the process of promulgating regulations to implement the Act.

Compostable plastics are plastics that are designed to decompose under certain conditions. There are various standards in place to determine if a plastic product is compostable or not. In recognition of various issues with the current standards, SB 1335 (Allen), Chapter 610, Statutes of 2018, which establishes reuse, recycling, and compost requirements for food packaging used in state facilities, required CalRecycle to adopt regulations to create standards for those terms. SB 54 uses the SB 1335 standards for composability.

This bill exempts compostable covered materials from the source reduction requirements of the Act. The author intends for this bill to address concerns from some manufacturers of compostable plastics related to the effect of SB 54’s source reduction requirements on the industry, given how small a portion of the packaging and foodware stream compostable plastics comprise. According to the Bio-Based and Biodegradable Industries Association, compostable materials could substitute up to 5% to 8% of current plastic packaging.

Writing in support of this bill, Newlight Technologies, Inc. states:

Newlight has developed technology that uses naturally occurring microorganisms to convert GHGs into a carbon negative material that we call AirCarbon: a molecule made throughout nature that functions like plastic, but contains no synthetic plastics, is reusable, and is certified as both industrial and home compostable…In order to meet the goals of SB 54, there need to be clear market signals that compostable materials are a part of California’s future to reduce reliance on legacy plastics.

Writing in opposition, a coalition of environmental organizations states:

Compostable plastics cannot fully solve our plastic production and pollution crisis. We need to begin by reducing the production and use of all single-use products and packages and move toward a circular and reusable economy. By exempting a category of single-use products, the legislature would promote a transition to other single-use materials over reusable and refillable alternatives. Moreover, some certified compostable plastics have fossil fuel components, often have some of the same problematic additives as fossil-fuel derived plastics, and are known to contaminate waste streams. Compostable plastics were specifically negotiated under SB 54 and already receive preferential treatment because those items are subject to a reduced fee …This was an explicit agreement as part of SB 54. To undo this with a broad exemption for specific products when the issue of compostables was addressed in SB 54 is not justifiable.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: April 24, 2023

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Luz Rivas, Chair

ABPCA Bill Id:AB 1489 (

Author:Wood) – As Amended Ver:April 12, 2023

SUBJECT: Solid waste: compostable polymers

SUMMARY: Specifies that compostable polymers are not subject to the source reduction requirements of the Plastic Pollution Prevention and Packaging Producer Responsibility Act (Act).

EXISTING LAW:

1. Establishes the Act (Public Resources Code 42040 et seq.), which:
   1. Requires, by January 1, 2024, producers of single-use packaging and single-use plastic foodware (covered material) to form a producer responsibility organization (PRO), subject to specified requirements and Department of Resources Recycling and Recovery (CalRecycle) approval, to carry out the requirements of the Act. Prohibits a producer of covered material from selling, offering for sale, importing, or distributing covered materials in the state unless the producer is approved to participate in the PRO.
   2. Requires all covered material offered for sale, distributed, or imported into the state on and after January 1, 2032, to be recyclable or compostable, as specified.
   3. Requires all plastic covered material offered for sale, distributed, or imported into the state to meet the following recycling rates:
      1. Not less than 30% of covered material on and after January 1, 2028.
      2. Not less than 40% of covered material on and after January 1, 2030.
      3. Not less than 65% of covered material on and after January 1, 2032.
         
   4. Prohibits producers of expanded polystyrene (EPS) food service ware from selling, offering for sale, distributing, or importing EPS food service ware in or into the state unless the producer demonstrates that EPS meets the following recycling rates:
      
      1. 25% on and after January 1, 2025.
      2. 30% on and after January 1, 2028.
      3. 50% on and after January 1, 2030.
      4. 65% on and after January 1, 2032.
   5. Requires the PRO to, among other things, develop and implement a plan to achieve a 25% source reduction by weight and 25% source reduction by plastic component for covered materials sold, offered for sale, or distributed in the state by January 1, 2032, including interim targets of 10% by January 1, 2027, and 20% by January 1, 2030. Requires at least 10% of plastic covered material to be source reduced by shifting to reusable or refillable covered material or through eliminating a plastic component and the remaining source reduction to be achieved through concentration, right-sizing, lightweighting, shifting to bulk or large format packaging, or shifting from a plastic covered material to a nonplastic covered material.
2. Prohibits the sale, or offering for sale, of any product in the state that is labeled with the term “compostable” or “home compostable” unless the product meets specified ASTM standards. (PRC 42357)
3. Requires CalRecycle to adopt regulations to develop a process and criteria for determining the types of food service packaging that are reusable, recyclable, or compostable. (PRC 42370.2)

FISCAL EFFECT: Unknown

COMMENTS:

1. Author’s statement:

SB 54, the Plastic Pollution Producer Responsibility Act, was a landmark piece of legislation advancing California towards a more sustainable future. Critically, SB 54 ensures that that covered material offered for sale, distributed, or imported in or into the state on or after January 1, 2032, is recyclable or compostable.

Recyclable and compostable products must be a part of our future in California. To ensure that future remains viable, AB 1489 clarifies that that SB 54’s 25% source-reduction requirements do not apply to certified compostable products. Under AB 1489, products eligible for exemption must meet California’s carefully constructed compost standards. This clarification is needed as California transitions towards a more innovative, sustainable future.

1. SB 54. SB 54 (Allen), Chapter 75, Statutes of 2022, established the Act to require the development of a circular economy for packaging and plastic foodware in the state. The Act requires that producers meet ambitious recycling, composting, and source reduction targets. The Act states requires the producer responsibility organization to achieve specified source reduction requirements for plastic covered materials. The percentages increase from 10% by January 1, 2027, to 25% by January 1, 2032.

The Act includes an “ecomodulated fee” structure that is intended to provide financial incentives, or disincentives, to encourage producers to use environmentally-preferable materials in covered material. As it relates to this bill, the ecomodulated fee is reduced for compostable plastics.

CalRecycle has begun hosting monthly informal workshops as it begins the process of promulgating regulations to implement the Act. The next meeting will be held on April 25^th.

1. Determining compostability. Compostable plastics are plastics that are designed to decompose under certain conditions. There are various standards in place to determine if a plastic product is compostable or not. Generally, the state has relied upon ASTM International standards, which include specifications for industrially compostable (D6400-19) and home compostable (D6868-19). However, the standard for industrially compostable runs between 90 to180 days, and California’s industrial compost operations process material more quickly than those timelines, resulting in incomplete degradation of the materials composted. The home compost standard requires degradation within 180 days. In recognition of the issues with the current ASTM standards, SB 1335 (Allen), Chapter 610, Statutes of 2018, which establishes reuse, recycling, and compost requirements for food packaging used in state facilities, required CalRecycle to adopt regulations to create standards for those terms. For composability, CalRecycle regulations require that the packaging must meet the ASTM standards D6400-19 or D6868-19, demonstrate 90% biodegradation within 60 days, and comply with related statutory requirements to be labeled “compostable” in the state. SB 54 uses the SB 1335 standards for composability.
2. This bill. This bill exempts compostable polymers from the source reduction requirements of the Act. It intended to address concerns from some manufacturers of compostable polymers about the effect of SB 54’s source reduction requirements given how small a portion of the packaging and foodware stream they are. According to the Bio-Based and Biodegradable Industries Association, compostable materials could substitute up to 5-8% of current plastic packaging.
3. Suggested amendments. The committee may wish to make the following amendments to this bill:
   1. Clarify that the composability standard for the bill is the standard used in SB 54; and,
   2. Replace the term “polymers” with “covered material.”

REGISTERED SUPPORT / OPPOSITION:

Support

CJ Biomaterials

Newlight Technologies

Opposition

Monterey Bay Aquarium

Natural Resources Defense Council

Ocean Conservancy

Oceana

Plastic Free Future

Save Our Shores

The Nature Conservancy, California Chapter

Analysis Prepared by: Elizabeth MacMillan / NAT. RES. /