Consideration of Plastic Trash Bag Manufacturer Requests for an Exemption from the Plastic Trash Bag Law for the 2002 Reporting Period

1
Consideration of Plastic Trash Bag Manufacturer
Requests for an Exemption from the Plastic Trash
Bag Law for the 2002 Reporting Period
2
Basis for An Exemption

• Demonstrate lack of quality APCM
• Meet Board quality standards?
• Demonstrate reasonable efforts were made
• Document efforts to work with suppliers

3
Four Manufacturers Requested An Exemption for 2002

• Manufacturers requesting exemptions
• Clorox
• Trans Western Polymers
• Poly-America
• Pactiv Corporation
• Board directed staff to confirm that
  manufacturers made reasonable efforts

4
Reasonable Efforts To Obtain APCM Include

• ID each APCM supplier contacted
• ID mutually agreed upon tests specs used
• Document quality testing results
• Independent tests
• certification from the APCM supplier
• Document reasons for rejecting each sample
• Document actions to resolve quality issues

5
Process for Confirming Reasonable Efforts

• Supplied list of questions
• Intent of questions was to document reasonable
  efforts
• Adequacy of documentation verified through
• Review of all written materials submitted
• Individual and conference calls
• In person meetings
• Email communication
• Focus was on confirming that reasonable efforts
  were made

6
Reasons Cited For Lack of Availability of Quality
APCM

• Manufacturers reported the following
• Fewer suppliers in business in 2002
• Out of date Board supplier list
• Insufficient collection of LLDPE feedstock
• Available LLDPE going to other markets
• Suppliers lacked capacity to meet orders
• Customer specifications (color strength) make
  use of APCM more difficult

7
Phone Survey of Suppliers and Compliant
Manufacturers

• Staff phone several APCM suppliers and compliant
  trash bag manufacturers
• Confirm supplier ability to meet demand both
  quality and quantity
• Confirm with compliant manufacturers how they
  were able to meet 10 percent APCM requirement

8
Factors Limiting Purchases As Reported By APCM
Suppliers

• APCM price must be lower than virgin
• No follow up on
• Phone calls offering APCM, or samples submitted
• What quality standards samples failed on
• Potential purchase orders not completed
• No feedback about steps to improve quality

9
How Did Other Manufacturers Achieve Compliance

• Made compliance with 10 APCM an important goal
• Purchased PCR from several suppliers
• Used the 1.2 credit for using CA PCR
• Stayed in regular communication with suppliers
• Culture was one of achieving compliance

10
Issues Raised At Committee

• New standard of review
• Not given adequate notice
• Suppliers not contacting manufacturers
• There is no APCM available
• Outdated Board suppliers list

11
(No Transcript)
12
Poly-America, 2002 Summary

• Exempted in 99, 00, 01
• Used 842 tons of APCM in 02
• 4.1 Recycled Content
• Purchased processed APCM into pellets
• Supplied receipts documenting purchases

13
Pactiv Corp., 2002 Summary

• First exemption request
• Used 357 tons of APCM
• 7.5 Recycled content
• Purchased and processed APCM into pellets
• Supplied receipts documenting purchases

14
Clorox Co., 2002 Summary

• Exempted in 99, 00, and 01
• Used no APCM in 2002
• 0 Recycled Content
• Tested five samples, from 3 suppliers
• None met quality standards
• Could not document that they established
  effective communication with suppliers to resolve
  quality problems

15
Trans Western Polymers Inc., 2002 Summary

• Exempted in 01
• Used 32.5 tons of APCM
• 1 Recycled content
• Did not purchase new APCM in 2002
• Tried to run APCM purchased in 2001
• Did not attempt to contact new suppliers to
  obtain better quality APCM

16
Staff Recommendations

• Based on review of submitted documentation,
  follow up discussion with manufacturers, and
  industry surveys, staff recommends
• Select Option 1 and approve the exemptions for
• PolyAmerica
• Pactiv Corp
• Select Option 2 disapprove the exemptions for
• Clorox
• Trans Western