Rigid Plastic Packaging Container (RPPC) Informational Update

1. Rigid Plastic Packaging Container (RPPC) Informational Update Permitting and Compliance Committee Meeting February 17, 2009

2. Current RPPC Law Addresses: • Resource conservation • Plastic packaging diversion • Supporting postconsumer material (PCM) markets • Supporting plastic collection and processing infrastructure • Compliance and enforcement

3. Definition of a RPPC • A RPPC • Plastic packaging • Relatively inflexible, finite shape or form • Minimum capacity 8 fluid ounces (or equivalent volume) • Maximum capacity 5 fluid gallons (or equivalent volume) • Capable of holding its shape while holding other products

4. Definition of a RPPC (cont’d.) Regulated RPPCs do NOT include rigid plastic containers that: • Are shipped outside California and remain with the products shipped • Contain drugs, medical devices, or cosmetics • Contain food (including medical food and infant formula)

5. Definition of a RPPC (cont’d.) Regulated RPPCs do NOT include rigid plastic containers that: • Contain insecticides, fungicides and rodenticides • Federal law prohibits from containing used material and are used for shipping hazardous or toxic materials

6. Not Regulated Regulated “ Maintains its shape while holding other products Does not maintain its shape while holding other products Maintains its shape while holding other products Definition of RPPC Regulated

7. Compliance Options • Product manufacturers are responsible for demonstrating compliance upon notification by the Board • RPPCs shall, on average, meet one of several compliance options: • Be made from 25% post consumer material; or • Have a 45% recycling rate (using methods specified in regulations); or

8. Compliance Options (cont’d.) • Be a reusable package or refillable package; or • Be a source reduced container; or • Contain floral preservative and subsequently be reused by the floral industry for at least two years; or • Meets the alternative compliance option for manufacturers under the same corporate ownership.

9. Typical Certification Cycle • 100 companies notified of certification cycle and due date for certification forms. • Staff analyzes submitted information. • Companies notified of results of staff analysis. • Board considers potential penalties for companies that do not comply with RPPC requirements.

10. RPPC Enforcement Certification Cycles Penalties • 1997 - 2000 (Combined) • 2001 • 2005 $67,859.00 $121,109.01 $126,375.84 (to date)

11. Background for Regulations Revisions • Inequities in process/regulated products • Informal rulemaking stakeholder workshops held in 2006 and 2007 • Identified issues with existing regulations • Identified issues with statute • Major stakeholder groups include: • Product manufacturers • Plastic recyclers • Container manufacturers • Environmental groups

12. Background for Regulations Revisions (cont’d.) • In November 2007, Board directed staff to: • Start the formal rulemaking process; and • Delay new certification cycle until the Board adopts revised regulations that address issues.

13. Issues/Concerns Being Addressed by Rulemaking • Modify key definitions • Add 2006 statutory compliance option – alternative container compliance • Add pre-certification notification process • Add process to obtain advisory opinions on whether containers are regulated

14. Changes in Key Definitions • Postindustrial plastic: Can no longer be credited as postconsumer plastic • Product Manufacturer: Factors for identifying who is responsible

15. Inequities in the Regulations: • The “Manufactured for...by....” statement can create an unlevel playing field for similar packaging: • Product manufacturers using this type of label transfer RPPC compliance responsibility to others; • Product manufacturers not using this type of label on identical/similar container are responsible for RPPC compliance; • Board cannot require overseas container manufacturers to meet requirements; • Increase in number of imported products/containers over time.

16. Changes in Key Definitions (cont’d.) • Definition of a RPPC • At least one closure vs. multiple closures • Caps, lids, handles may be non-plastic vs. all plastic containers

17. Inequities in the Existing Regulations:

18. Inequities in the Existing Regulations:

19. Changes in Key Definitions (cont’d.) • Source Reduction: • Resin switching not allowed as compliance option

20. Alternative Container ComplianceMethods (Added) 2006 statute change -- California PCM used in other products or packaging may be credited toward the RPPC PCM content when it contains a minimum of 25% PCM • PCM generated in California is exported/used to make an equivalent product or packaging; or • Other plastic products or plastic packaging not subject to the RPPC law.

21. Pre-Certification Process (Added) Product Manufacturers will be notified almost 2 years in advance of possible certification: • Allows companies time to review requirements and achieve compliance without threat of immediate penalties

22. Advisory Opinions Process (Added) Establishes a process for a manufacturer to request an advisory opinion from the Executive Director whether a container is a regulated RPPC

23. Stakeholder Issues/Concerns Regarding Statute • Stakeholders raised concerns regarding statute that are outside the scope of regulations revisions: • Postconsumer material does not include postindustrial material (materials generated from, and reused within, the original manufacturing process) • 25% postconsumer material requirement is too stringent • Concentration of product(s) is included in the definition of source reduction

24. Current Status of Formal Rulemaking High staff turnover has delayed development of materials to start the formal rulemaking process

25. Timeline Conduct Economic and Fiscal Analysis • Survey/data collection • Final analysis February 2009 February 2009

26. Timeline (cont’d.) Obtain Control Agency Approvals of Economic and Fiscal Analysis • Air Resources Board • Cal EPA • Department of Finance March 2009 April 2009 May 2009

27. Timeline (cont’d.) • Submit formal rulemaking package to Office of Administrative Law (OAL) • Begin 45-Day Comment Period • Hearing at end of 45-day comment period June 2009 June-July 2009 August-September 2009

28. Summary • Proposed changes to regulations will: • Help “level the playing field” • Divert RPPCs from disposal • Support collection infrastructure and markets for postconsumer material • Establish procedures to improve the compliance process

29. Questions?