CalChamber Cites Key Policy Elements for Recycling in a Circular Economy

Working to find a comprehensive solution to recycling and packaging concerns is a goal shared by the California Chamber of Commerce and its members.

That was the message conveyed this week by CalChamber Senior Policy Advocate Adam Regele in testimony to the Senate Environmental Quality Committee.

Regele made his comments at the April 26 committee hearing on SB 54 (Allen; D-Santa Monica), explaining the CalChamber’s oppose unless amended position.

Shared Goals

The CalChamber agrees with Senator Ben Allen that it is the responsibility of the Legislature to address deficiencies in the state’s management and recycling of packaging materials through a comprehensive solution, Regele said.

Regele noted that the CalChamber also agrees with the Senator on the necessary components for achieving his vision: source reducing materials where feasible, designing for recyclability, attracting new investments and providing a pathway for enhancing California’s recycling and composting infrastructure, and creating end markets in order to realize a working circular economy.

Impact on Multiple Sectors

Disagreement has arisen, however, on the mechanics, feasibility and implementation of prior versions of the bill, Regele pointed out.

Disputed provisions would have substantial impacts on the state’s food and agriculture sectors, retailers and nearly every sector selling goods to consumers or other businesses.

Over the last two years, Regele commented, discussions have illuminated unintended consequences and regrettable substitutions, plus infrastructure needs and significant costs associated with creating a circular economy, highlighting both the scale of the challenges and the need for further refining the policies.

Deficiencies to Fix

Regele expressed hope that stakeholders on all sides can overcome deficiencies in bill language noted over the last few years, such as:

• Providing in statute critical definitions necessary to send market signals and guide companies as they design for recyclability;

• Creating a pathway to bring and expand California’s recycling and composting infrastructure in the time frame contemplated by the bill’s mandates;

• Standardizing the requirements across all jurisdictions to educate companies and consumers with consistent recycling rules;

• Ensuring the California Legislature retains authority on the subject and avoids delegating much of its authority to the California Department of Resources Recycling and Recovery (CalRecycle);

• Maintaining due process by striking the emergency rulemaking authority provided to CalRecycle to develop major regulations, as a five-day notice and comment period is wholly inadequate;

• Applying eco-modulated fees where appropriate to account for externality costs rather than banning products under condition of sale language; and

• Including funding mechanisms to ensure the scope of the program can be realized without major disruptions to supply chains or increased costs to consumers.

Work in Progress

The CalChamber and its member companies remain at the table and will continue to provide solutions toward advancing the vision of a circular economy that reduces waste, increases real recycling, and prevents pollution so that a better system of managing material emerges, allowing economies and environments to thrive.

Staff Contact: Adam Regele

CalChamber
The California Chamber of Commerce is the largest, broad-based business advocate to government in California, working at the state and federal levels to influence government actions affecting all California business. As a not-for-profit, we leverage our front-line knowledge of laws and regulations to provide affordable and easy-to-use compliance products and services.