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Legislative Weekly
November 27, 2002
Old Senate, New Assembly
When the Legislature reconvenes the Monday after Thanksgiving, the state's budget shortfall -- and not energy -- will dominate the agenda.
The Legislature's two energy policy committees, while pushed off the front page, will continue to play an important role in the formation of California's energy policy.
Few changes are expected in the Senate. All nine members of the Energy, Utilities and Communications Committee will return for the new term, including the committee chair, Debra Bowen (D-Marina del Rey).
Chair Reyes Vice Chair  Richman |
Dr. Richman, a board-certified physician of general internal medicine, was elected in 2000, and immediately upon taking office was thrust into the energy arena when he was named to serve on the Assembly Extraordinary Session Committee on Energy Costs and Availability, where he earned a reputation as a thoughtful, hard-working committee member.
"Producer Responsibility”
Debated at Cal-EPA Electronic Waste Forum
On Monday, Cal-EPA Secretary Winston Hickox, Integrated Waste Management Board Member Michael Paparian, Department of Toxic Substances Control Director Ed Lowry and Senator Byron Sher presided over a series of panel discussions on the subject of electronic waste management. The forum was intended to solicit recommendations from four major stakeholder groups - the electronics industry, the environmental community, the waste management and recycling industry and local governments - on developing a California e-waste management system consistent with the priorities outlined in Governor Davis’ veto message on SB 1523 (Sher, 2002) and SB 1619 (Romero, 2002). While interesting, the discussion was limited almost entirely to policy themes, with much of the time being devoted to competing interpretations about the extent to which manufacturers should be held responsible for the end of life management of their products.
Hewlett Packard stunned some observers, including Senator Sher, by proposing a system whereby manufacturers internalize the cost of recycling their products. HP operates a recycling center in Roseville, where they currently charge $14-$30 per piece of equipment received, primarily to cover transportation costs. HP’s remarks sparked a lengthy discussion over how such a system would work with regard to manufacturers that do not have, or do not choose to invest in, recycling infrastructure. Presumably, those companies would pay the state to cover the balance of e-waste recycling costs, perhaps in proportion to their California market share. It is not clear how such a potentially complex funding mechanism could be implemented in keeping with the Governor’s desire to avoid a bureaucratic solution to e-waste management.
More importantly, it is clear that local governments, waste management companies and recyclers will continue to push for up-front fees on electronic products, regardless of manufacturers’ recycling commitments. Local government officials are particularly dismissive of the idea that their rate payers should shoulder some of the cost burden for separate collection of e-waste. Given this logic, all recyclable products found in municipal waste could be assessed a fee at the time of purchase since there are incremental waste management costs associated with these products. These groups also stated that the $10 fee proposed in SB 1523 (for TVs and computer monitors) falls well short of the actual costs to collect and recycle these items.
Another interesting development was the suggestion from (DTSC) Director Lowry that the state may be willing to consider a regulatory exemption for consumer electronic devices (CEDs) destined for recycling, which the state currently proposes to regulate as hazardous waste. This development could bode well for CED manufacturers in terms of reducing the cost of collection and recycling and the attendant political pressure for front-end product fees.
Monday’s meeting promises to be the first step in another lengthy legislative debate over a California-only system for managing electronic waste. All consumer product manufacturers should stay tuned, since the outcome here is likely to bear on future recycling policies affecting your products.
California Not Alone in Budget Crisis According to Recent National Report
A study released last Monday by the National Governors' Association indicates that California is among a large number of states also suffering from significant budget deficits. The release of this report comes as Governor Davis and the legislature prepare for a December 9th special budget session in which they will attempt to decrease the projected $21 billion-plus cash shortfall by $5 billion. The survey indicates just how bad things really are by suggesting that outdated tax structures, rising health care costs, and the sluggish economy have resulted in a trend where states are increasing taxes by the largest amount in a decade. Nationwide, the survey found that tax and fee increases set to go into effect in 2003 will add up to $8.3 billion.
While the national survey did not rank states numerically in order of their fiscal health, California fared relatively poorly due to the sheer volume of residents who rely on government-financed education and healthcare, and also because of the struggling high-tech sector where state revenues from stock options and capital gains tanked. The scheduled special session begins December 9th and is expected to focus on cost savings and cuts, while proposals for tax and fee increases are likely to be held over at least until January 2003 when the Governor releases his formal budget plan.
Parra Leads Gardner by 166 Votes in the 30th Assembly District Race
The California Target Book reported yesterday, November 26, that democrat Nicole Parra leads her Republican opponent Dean Gardner by a margin of 166 votes out of 52,432 counted in the 30th Assembly district (Fresno and Kern counties). 200 absentee and 380 provisional ballots are yet to be counted. Provisional ballots are those cast on election day by voters whose names were not listed on the registration rolls. Insiders are still predicting that Parra will squeeze out a close victory with most of the uncounted ballots coming from Kern County, where she received over 62 percent of the vote.
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