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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/25/2022 - DISPOSABLE BAG ORDINANCE REVIEWDATE: STAFF: January 25, 2022 Molly Saylor, Senior Sustainability Specialist WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Disposable Bag Ordinance Review. EXECUTIVE SUMMARY The purpose of this item is to review the Fort Collins' Disposable Bag Ordinance in the context of the State's recent Colorado Plastic Pollution Reduction Act (HB21-1162), as well as recent stakeholder engagement, and discuss opportunities for alignment and other amendments. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Which, if any, of the potential changes does Council support going forward? 2. If Council supports making changes to the Ordinance, does Council also support staff bringing a revised Ordinance to consider for adoption in February? BACKGROUND / DISCUSSION Reducing Plastics Pollution is an adopted Council Priority, which aligns with the community’s Road to Zero Waste goal to produce zero waste by 2030 as well as the goal to sustain and improve the health of the Cache la Poudre River and watershed. Reducing plastic pollution by implementing the Disposable Bag Ordinance is an Our Climate Future strategy in support of the Zero Waste Neighborhoods Big Move. Past Council Action • 2020-2021 - Council identified mitigating plastic pollution as a priority and worked with staff over the course of 2020 to craft the Disposable Bag Ordinance (Ordinance No. 026, 2021) which was adopted Feb 16, 2021 a nd affirmed by voters on April 6, 2021. All Council materials are inventoried at <https://ourcity.fcgov.com/plastics>. Disposable Bag Ordinance Overview • Adopted in February 2021; affirmed by voters in April 2021 • Effective May 1, 2022 • Bans plastic bags at large grocers (over 10,000 square ft.); 12-cent fee on paper bags • Half of the 12-cent fee goes to grocers and the other half to the City o Requires Grocer Fee Revenue Plan for grocers o Creates new City program for Plastic Pollution and Waste Reduction • Participants of any Federal, State, County of local income-qualified program are exempt from 12-cent fee Staff Recommended Updates The following sections reflect staff’s recommended updates to the Ordinance, including efforts to align Fort Coll ins with the State’s policy, and to incorporate feedback from stakeholders. Council may also prefer to consider alternative scenarios. Figure 1 illustrates the spectrum of possibilities for closely or loosely aligning to the State’s January 25, 2022 Page 2 policy. Details of staff recommendations are outlined in Figure 2 and a complete list of recommended changes and how they compare to the State’s policy is included. (Attachment 1) Figure 1. Spectrum of scenarios for loosely or tightly aligning to the State's policy Figure 2. Staff recommendation for aligning and amending the Disposable Bag Ordinance to be complementary to State policy and maintain local focus on equity and timing. CONTEXT OF STAFF RECOMMENDATION General 1. Timeline o Recommendation: Maintain the Fort Collins timeline for changes to bags at grocers, recognizing additional changes to bags and expanded polystyrene (Styrofoam) at other types of stores will come through the State’s policy in 2023 and 2024. o Current policy: Disposable Bag Ordinance is effective for large grocers as of May 1, 2022. o Context of recommendation: ▪ Fort Collins voters supported the original effective date of May 1, 2022 and grocers have already begun preparing. ▪ The State’s policy will require the City to lead extensive roll-out efforts because of the variety of stores impacted. Staff can best support all Fort Collins businesses and community members with a staggered approach, in which there is time to learn from the initial experience with grocers. (Attachment 1) Fee Elements 2. Fee amount o Recommendation: Align to the State’s policy that charges a 10-cent fee per paper bag o Current policy: 12-cent fee per paper bag January 25, 2022 Page 3 o Context of recommendation: ▪ When adopted, the Disposable Bag Ordinance created a new Plastic Pollution M itigation and Solid Waste Reduction program to which City fee revenue would be applied (Attachment 2), requiring 6- cents per paper bag to conservatively cover costs. ▪ The combined impact of lowering the per bag fee but increasing the amount retained by t he City maintains the necessary 6-cents per bag to run the program. ▪ See the following section on Fee Structure for more details on impacts to the City and grocers. 3. Fee structure o Recommendation: Align to the State’s policy that splits the paper bag fee revenue 60-40 (City-grocer) o Current policy: 50-50 split (City-grocer) o Context of recommendation: ▪ Both a 50-50 split of 12-cents and a 60-40 split of 10 cents results in 6-cents of revenue per bag to the City thus there is no impact to City revenues by making this change. ▪ Engagement with grocers found that aligning to the State’s fee and fee structure will streamline processes state-wide and is the preferred path forward for the majority. ▪ Less fee revenue per bag leaves fewer funds available for grocers to recover costs related to the Ordinance, which is a short-term concern for some grocers due to the impacts of supply chain disruptions on availability and cost of reusable and paper bags. Exemptions 4. Income-qualified exemption o Recommendation: Maintain current broad exemption o Current policy: Residents who participate in Federal, State, County, or local income qualified assistance programs including WIC and SNAP who provide benefit cards at the point of sale would be exempt from the paper bag fee (Attachment 3) o Context of recommendation: ▪ The State’s policy limits exemptions to Federal and State food-based income-qualified programs, which may miss participants in other programs, creating a disproportionate impact on low -income households. 5. Allow additional exemptions o Recommendation: Based on stakeholder input, allow further exemptions and exceptions to be developed and granted via administrative rule, possibly allowing for hardships beyond income (e .g. disability, access to a vehicle, etc.) or to address unique customer service situations. o Current policy: No exemptions granted other than for recipients of income-qualified programs. o Context of recommendation: ▪ Unique circumstances may create undue hardships for a variety of community members. • Circumstances may be related to protected class and therefore can’t be addressed in the same way a low-income exemption is designed. It will take additional time to explore, test and implement thoughtful and equitable exemption rules for these cases. o Example of undue hardship: Some community members with disabilities or medical conditions need to order groceries for delivery, as they are unable to shop in -store. These customers have no option to use reusable bags and avoid the pap er bag fee. They may also experience a harder time handling paper bags, depending on their disability. • Additional exemptions or exceptions may be needed to handle unique customer service situations. Staff will best be able to support grocers and their customers in these scenarios if they can quickly develop and test exceptions via City Manager -approved administrative rules. January 25, 2022 Page 4 Definitions and Administration 6.Definitions o Recommendation: Align definitions to the State’s policy, either by adopting the exact wording or by aligning to the intent of the definition in cases where the policies are differently structured. o Staff also proposes updating and aligning some non-substantive elements of the local Ordinance. o A list of definitions for updating may be reviewed before Council adopts the final Ordinance. (Attachment 1) COMMUNITY ENGAGEMENT Staff had over forty conversations with disproportionately impacted community members and grocers to understand concerns and ideas for how to make the transition to the new rules easier. General engagement feedback can be categorized into the three themes detailed in Figure 3. Engagement themes Engagement details Ready to Go •Majority of people ready to make the change •Many community members who are seniors, low-income, or disabled already regularly use reusable bags •Many people have experienced these changes in other cities Supportive, with some help needed •Some community members are generally supportive, but may need support to transition, such as access to free reusable bags and detailed advance information on the changes •Several groups specifically asked about ways to receive free or low- cost reusable bags Concern •A small number of community members expressed dislike of regulations and/or specific parts of this Ordinance o For example, several people said they would miss plastic bags for convenience reasons or because they reuse them •Community members with disabilities raised concerns about how the Ordinance may increase barriers for people in their community Figure 3. Engagement themes Specific Engagement Feedback - “Storyboarding” method for communicating changes: Based on feedback from People First (a local group of community members with intellectual and developmental disabilities who advocate to reduce and remove barriers to equitable community access), staff will leverage more “storyboard” based communication materials to help people understand what to do at the checkout. Storyboards can help visual learners, people with intellectual and developmental disabilities, people who speak other languages, and the general public. This builds on existing best practices for communicating waste guidelines visually. (Attachment 4) January 25, 2022 Page 5 NEXT STEPS Staff anticipates the following next steps: • Continue supporting early roll-out with grocers; stakeholders (February) • Based on Council feedback, bring forward draft Ordinance (February) • Council consideration of updated Ordinance (February/March) • Launch community-wide communications and outreach campaigns (March-April) • Ordinance goes into effect May 1, 2022 • Continue checking in with grocers and disproportionately impacted stakeholders (May -ongoing) ATTACHMENTS 1. Staff Recommended Changes (PDF) 2. Disposable Bag Fee Study (PDF) 3. Income Qualified Relief (PDF) 4. Stakeholder Engagement (PDF) 5. Powerpoint Presentation (PDF) Attachment I: Staff Recommended Updates to Fort Collins Disposable Bag Ordinance Note: The State’s Plastic Pollution Reduction Act addresses disposable bags and expanded polystyrene (Styrofoam). The following table compares only the elements of the two policies related to disposable bags. For more information on expanded polystyrene, see staff memo from September 21st, 2021. Element of Regulation Fort Collins Ordinance State Bill Staff Recommendation Recommendation No. Items regulated Plastic and Paper Bags Plastic and Paper Bags No changes – bag policies align NA Entities regulated Large grocers over 10,000 square feet with majority of typical grocery departments. All stores and retail food establishments (excepting restaurants meeting certain requirements and small stores). Maintain: Keep timeline for grocer implementation in 2022, integrating other types of stores through the State’s policy in 2023. 1 Implementation date May 1, 2022 - Plastic bag ban and paper bag fee. January 1, 2023 - Paper and plastic bags for fee January 1, 2024 - Plastic bag ban (paper bag fee continues) July 1, 2024 - Local regulation permitted if “as or more stringent.” Maintain: Keep timeline for grocer implementation in 2022, integrating other types of stores through the State’s policy in 2023. 1 Fee amount 12-cents/paper bag 10-cents/paper bag Align: Change Fort Collins’ fee to 10-cents/paper bag per grocer preference of state-wide consistency 2 Fee recovery 50-50 split (City - grocer). 60-40 split (City - grocer). Align: Change Ordinance to reflect 60-40 split between City and grocer (respectively) to be consistent. Note: City recovers 6-cents per bag in both scenarios, impact only to grocers. 3 ATTACHMENT 1 Fee use by City Various waste-related activities outlined in Disposable Bag Fee Study, aligned with State Bill. Administrative and enforcement costs and any recycling, composting, or other waste diversion programs or related outreach or education activities. No recommended changes – policies align. NA Fee exemptions Recipient of an income-qualified program. Recipient of State or Federal food assistance program. Maintain: Keep the City’s broader allowance for who can receive an income-qualified exemption as an important local equity element. 4 Other exceptions/exemptions N/A N/A Add: Based on stakeholder engagement, add language to the City’s Ordinance allowing the City Manager to make administrative rules to exempt other types of hardships. 5 Pre-emption Not addressed. Repeals blanket local pre-emption effective July 1, 2024; permits local government measures at least as stringent as State Bill on or after July 1, 2024 Maintain: Continue local implementation with original timelines, as written in local Ordinance, acknowledging there will be an approx. 1.5 year gap before the pre-emption is repealed. 1 Definitions and Non-Substantive Clean-up Disposable Bag Definition unclear on whether online shopping, pick-up and delivery are included. Definition of what is not considered a disposable bag lists many types of in-store bags. Clearly includes pick-up and delivery. Definition of what is not considered a disposable bag is more inclusive than Fort Collins’ Ordinance. Align: Local Ordinance will clearly include online shopping, pick-up and delivery. Align: Use the State’s definition to expand what is not considered a disposable bag. 6 Reusable Bag Definition intended to avoid stores from switching to thicker plastic film bags under the guise of “reusability”; sets high standards for the type of bags that can be given away by stores and includes a “machine washable” requirement. Definition intended to avoid stores from switching to thicker plastic film bags under the guise of “reusability”; sets high standards for the type of bags that can be given away by stores but without machine-washability requirement. Align: Rework local definition of reusable bag to align to the State’s policy for consistency. Note: Staff has learned very few wholesale reusable bags are labeled as machine washable and supports removing this to not be overly restrictive of stores offering promotional bags. Staff will continue to recommend bags be washed regularly as a best practice. 6 Grocer Fee Revenue Plan Requires grocers to create a Grocer Fee Revenue Plan outlining how they will spend their fee revenue. N/A Add: Clarifying wording that grocers may apply fee revenue to support efforts to reduce plastic pollution and improve recycling and waste reduction, in alignment with the way the City is permitted to use its revenue. 6 Signage Does not specifically require grocers to post signage. Requires grocers to prominently post signage about the carryout bag fee. Align: Integrate the same wording as the State’s policy. 6 Enforcement and fees City enforcement with standard code violation penalties. Allows City to define fines and penalties. No recommended change. NA Fee collection Remittance cadence undefined. Quarterly remittance. Align: Add language to Fort Collins Ordinance defining quarterly remittance. 6 1 Disposable Bag Fee Study City of Fort Collins, Colorado Contents Executive Summary ....................................................................................................................................... 2 Study Overview ......................................................................................................................................... 2 Approach ................................................................................................................................................... 2 Fee Components ....................................................................................................................................... 2 Fee Calculation & Supported Fee Levels ................................................................................................... 2 Study Background ......................................................................................................................................... 3 Fee Calculation .............................................................................................................................................. 4 Methodology ............................................................................................................................................. 4 Program Costs ............................................................................................................................................... 4 Projected Fee Revenues ............................................................................................................................ 5 Recommended Fee Range ........................................................................................................................ 6 Other Considerations .................................................................................................................................... 7 Colorado and peer cities with hybrid policies in place ............................................................................. 7 Case studies .............................................................................................................................................. 7 Aspen .................................................................................................................................................... 7 Boulder .................................................................................................................................................. 8 Research Referenced .................................................................................................................................... 9 ATTACHMENT 2 2 Executive Summary Study Overview The City of Fort Collins is developing a single-use plastic bag ordinance to address the issue of plastic pollution, which would include a ban on providing single-use plastic bags and a fee on paper bags that would apply to large retail grocers. An ordinance will be presented for Council consideration on February 2nd and 16th and Council intends to submit the measure to the April 2021 municipal election. In determining an appropriate fee, City staff assembled the below Disposable Bag Fee Study based on the underlying costs of administering the new program. This report outlines the approach, fee components, and calculations, as well as projected fee revenue and staff recommendations for the use of fee revenue for this ordinance. The report also provides other considerations, such as alternative approaches to the fee structure and case studies from other Colorado cities that have bag ordinances in place. Approach To determine the appropriate amount for a fee on paper bags, staff gathered information on internal costs and researched results from similar programs that were implemented in other cities. Both estimated costs and forecasted revenues were calculated independently, and then backed into a specific range that was determined to be supported. Fee Components Cities imposing new fees are required to demonstrate a clear connection between program costs incurred by the City and the subject of the fee, in this case paper bags. The purpose of a fee is to defray the cost of providing a service to the community. This study includes the following cost categories in calculating the fee: 1. Current estimate of bag usage and estimate of bag use reduction if fee is imposed 2. Costs incurred by the City 3. Costs incurred by retailers Fee Calculation & Supported Fee Levels The bag fee formula is based on total cost to the City and equitable sharing of fee revenue to the retailer, against the total volume of projected bags subject to the fee: Using this approach, the fee supported could range from $0.12-0.21 per paper bag, with half of the revenue being retained by the retailer to cover their related costs. Program and Related Costs / Portion retained by City / Projected Bags Used = Fee per Bag 3 Study Background Cities imposing new fees are required to demonstrate a clear nexus between program costs incurred by the City and the subject of the fee, in this case paper bags. The purpose of a fee is to defray the cost of providing a service to the community. This connection has been defined in different ways across Colorado and U.S. cities with a best practice being Aspen’s hybrid bag policy (see case study below). Staff recommends aligning to the approach Aspen has taken. The following fee summary reflects this approach and outlines the types of costs associated with the new program created by the ordinance that would be recovered and potential fee revenue. Proposed Plastic Pollution Mitigation and Solid Waste Reduction Program established by bag ordinance: By passing the bag ordinance, Council would create a new plastic pollution mitigation and solid waste reduction program, to which the fee revenue can be applied. The elements of this program include: • the administration and operation of the Waste Reduction Program and administration activities to collect all disposable bag fees; • activities and campaigns conducted by the City (or a contracted vendor) to provide reusable bags to residents and visitors, educate residents, businesses and visitors about the impact of disposable bags, trash, single-use plastics and other waste on the waterways and environment and on the health and welfare of its residents and visitors, the importance of reducing the number of disposable bags entering the waste stream and to raise awareness about waste reduction and recycling; • community clean-up events, City activities, and other community-led activities to reduce or mitigate solid waste and litter; • programs and infrastructure to facilitate and encourage the community to reduce waste and recycle, including community-led efforts; • creating, expanding, and maintaining equitable outreach and engagement strategies, including a public website to educate residents on the progress of waste reduction efforts; • other activities directly related to the reduction of waste from disposable bags, trash, single-use plastics and other waste and its impact on the waterways and environment within the city and the Cache la Poudre watershed; and • funding or providing other support for programs and activities conducted by others in furtherance of these purposes. The following section outlines the program costs that would be recovered and the Figure 1 establishes the fee revenue connection. 4 Fee Calculation Methodology This fee study was conducted internally by the Sustainability Services Senior Financial Analyst and leverages baseline assumptions about plastic pollution mitigation and solid waste reduction program costs created by the ordinance and fee structure examples from other cities. Key takeaways from the fee study include: • Direct and indirect costs related to materials management, reduction, and recycling are significant when considering expanding efforts to be equitable, to support community-led efforts, and when considering infrastructure or capital investments. • Based on the assumptions outlined within the study, the total combined City and grocer cost per bag is estimated to range from approximately $0.12-0.21 per bag and would support establishing a fee up to $0.20 per bag based on the requirement for a fee to not exceed related City costs. • The costs basis was established under learnings of best practice from other cities to include recovery of direct and systems costs on an annual basis. The resulting revenues could be focused on first recovering new direct costs, but also leveraged to support long-term capital and systems investments needed to reduce plastic pollution and reach waste goals. Related costs were provided by the finance support staff for each relevant Service Area and aggregated to include both the low- and high-end estimates. This provided the range to use as a numerator for the fee calculation below: Program Costs The estimates shown in Figure 1 below represent staff’s recommendation to cover a broad range of direct and systems costs related to solid waste reduction and recycling, similar to Aspen’s fee (see case study below). Figure 1. Costs to the City for the new plastic pollution mitigation and solid waste reduction program: Cost description Annual cost range (low) (high) a. Cover the costs to administer, enforce and conduct community wide engagement about the ordinance $260,000 $300,000 b. Provide reusable bags to both residents and visitors, especially to low-moderate income residents and other historically underrepresented groups $10,000 $30,000 c. Cover a portion of the costs of existing litter pick up, stormwater, wastewater and street sweeping costs related to single-use items $100,000 $150,000 d. Cover a portion of the costs of existing paper and plastic film recycling costs at the Timberline Recycling Center $50,000 $100,000 Program and Related Costs / Portion retained by City / Projected Bags Used = Fee per Bag 5 e. Expanded equitable engagement, outreach, and community partnership, including neighborhood and community project funding as program and funding capacity allow $175,000 $300,000 f. Solid waste reduction, recycling, plastic pollution mitigation efforts, and infrastructure, including but not limited to encouraging systems approaches to reuse and reduction efforts targeting single- use items $200,000 $500,000 Total Cost $795,000 $1,380,000 Cost per Bag (50% retained by City; 75% reduction in bags) $0.12 $0.21 Key assumptions and considerations: • Above figures reflect estimations based on current cost structures that were provided as ranges by the relevant finance analyst for each item. They do not reflect assumptions for how the costs may alter over time. • The low end of the range for each line item represents the more conservative estimate and the high end represents more expanded programming. • Details by cost o (a.) Administration cost would cover staffing for 1.0 added classified FTE that would be responsible for administering the ordinance, including outreach to and engagement with residents and businesses as the ordinance is rolled out and for enforcement support, 1.0 added FTE for the first two years to support ordinance roll out, and the costs of marketing and outreach campaign materials. o (b.) Bags are assumed to cost approximately one dollar per bag. Based on staff estimates and experiences distributing other items, it is reasonable to distribute three bags per household to 3,000 households per year. o (c.) Litter clean-up and other operational costs related to single-use plastic items and paper bag litter were estimated by finance support for each service area. This is presented as a wider range due to the challenge of estimating the exact percentage represented by these items versus overall litter. o (d.) Assumes a portion of the costs to collect and transfer plastic film, paper, and cardboard for recycling at the Timberline Recycling Center. o (e.) Assumes reimagined community engagement strategies such as: paid community partner and ambassador programs to engage on the City’s behalf, reaching parts of the community the City struggles to access; language justice and focus groups to ensure culturally relevant campaigns; and neighborhood-scale community-led projects to address barriers to waste reduction, reuse and recycling and encourage behavior change. o (f.) Investments in programs and infrastructure to protect waterways and natural areas, reduce waste, encourage reuse, and enable local circular economy progress. Infrastructure investments may include but are not limited to recycling center equipment and compost facility development. Projected Fee Revenues The estimates shown in Figure 2 below represent staff’s estimate of the base case revenues that would correlate with the fee ranges recommended based on research of other cities. This research found fees for bags that ranged between $0.05-0.25 per bag, with $0.10-0.20 being the most common in Colorado. Accordingly, staff projected the resulting revenues for a $0.10-.20 range. 6 Figure 2. Revenue projections from the bag fee, assuming staff’s recommendation to retain 50% of the fee. Estimated Annual Revenue Fee per paper bag $ 0.10 $ 0.20 Estimated Current Number of Paper and Plastic Bags 52,500,000 Estimated Reduction in Bag Usage* 75% 75% Fee Retained by City 50% City Revenue $ 656,250 $ 1,312,500 * Based on results documented in Palo Alto This analysis was performed separately from the estimated program cost calculation in Figure 1. The results independently arriving at similar ranges ($0.10-0.20 vs. $0.12-0.21) reinforces staff’s conclusion that the proposed range is appropriate. Recommended Fee Range The above resulting revenue range of $650K-$1.3M leads to a conclusion that a fee between $0.10-0.20 per paper bag would meet the requirement for a fee to be established at or below the sum of related costs, which ranged from $795K-1.38M in Figure 1. Key assumptions and considerations: • Approximately 340 bags are used per person per year, resulting in an estimated 52,500,000 bags per year0F 1. • Palo Alto saw their hybrid approach ultimately settle at a 75% reduction of paper bags (with no plastic bags). The Fort Collins fee summary uses this data point to estimate long-term fee revenue after the initial transition1F 2. • Palo Alto also has a low-income exemption and thus numbers already reflect this assumption. Figures do not make any additional assumptions on revenue from bags exempted or provided for no cost to income- qualified community members. • Some costs to the City are expected to taper as single-use bag use (and related fees) taper. • Ten-cent and twenty-cent options are shown but other cities have used other amounts ranging from five- cents up to twenty-five-cents. • Staff recommends revisiting the level of fee to ensure it is set appropriately every 3-5 years similar to other City fees • Figures presented represent the base case analysis; staff also calculated scenarios with High, Medium, and Low assumptions for existing bag usage (250-340 bags) and reduction in single-use bags (50-90%) and found that in most scenarios, a fee between $0.10-0.20 would support the minimum program costs. 1 From Brendle, 2012 and Wagner, T, 2017 2 Palo Alto https://www.cityofpaloalto.org/civicax/filebank/documents/48074 7 Other Considerations Colorado and peer cities with hybrid policies in place These peer cities were used to understand typical fee ranges and to understand lessons learned from other cities that have implemented similar programs. • Aspen, CO*** • Avon, CO** • Carbondale, CO*** • Steamboat Springs, CO*** • Telluride, CO** • Vail, CO** • Eugene, OR* • Palo Alto, CA** • Santa Barbara, CA** • Tacoma, WA* • Seattle, WA* • San Francisco, CA**** Legend: * cities charging between 5 cents per paper bag; ** 10 cents, *** 20 cents, **** 25 cents Case studies These case studies gave key insight into best practices and lessons learned from other Colorado cities that have created bag programs and to which they apply fee revenue. Aspen • Key takeaways: o Allows Aspen to recover costs for reducing waste and recycling, inclusive but not limited to direct bag reduction costs • Bag policy: Hybrid approach, banning plastic bags, fee on paper bags • Fee amount: 20-cents per paper bag • Ordinance language: (f) The Waste Reduction Fee shall be administered by the City of Aspen Environmental Health Department. (g) Funds deposited in the Waste Reduction and Recycling Account shall be used for the following projects, in the following order of priorities: (1) Campaigns conducted by the City of Aspen and begun within three hundred sixty-five (365) days of the effective date of this act, to: Provide reusable carryout bags to residents and visitors; And Educate residents, businesses, and visitors about the impact of trash on the City's environmental health, the importance of reducing the number of disposable carryout bags entering the waste stream, and the impact of disposable carryout bags on the waterways and the environment. (2) Ongoing campaigns conducted by the City of Aspen to: a. Provide reusable bags to both residents and visitors; and b. Create public educational campaigns to raise awareness about waste reduction and recycling; c. Funding programs and infrastructure that allows the Aspen community to reduce waste and recycle. d. Purchasing and installing equipment designed to minimize trash pollution, including, recycling containers, and waste receptacles; e. Funding community cleanup events and other activities that reduce trash; f. Maintaining a public website that educates residents on the progress of waste reduction efforts; and g. Paying for the administration of this program. (h) The Fees shall not be used to supplant funds appropriated as part of an approved annual budget. 1 (i) No Waste Reduction Fee shall revert to the General Fund at the end of the fiscal year, or at any other time, but shall be continually available for the uses and purposes set forth in Subsection (g) of this Section without regard to fiscal year limitation. Boulder • Key takeaways: o Outlines costs for recovery that are directly tied to bags. • Bag policy: Fee on plastic and paper bags • Fee amount: 10-cents per bag • Ordinance language: (g) Funds from the disposable bag fee shall be used only for the expenditures that are intended to mitigate the effects of disposable bags, including, without limitation, the following: (1) Administrative costs associated with developing and implementing the disposable bag fee. (2) Activities of the City to: (A) Provide reusable carryout bags to residents and visitors; (B) Educate residents, businesses and visitors about the impact of disposable bags on the City's environmental health, the importance of reducing the number of single-use carryout bags entering the waste stream and the expenses associated with mitigating the affects of single-use bags on the City's drainage system, transportation system, wildlife and environment; (C) Fund programs and infrastructure that allow the Boulder community to reduce waste associated with disposable bags; (D) Purchase and install equipment designed to minimize bag pollution, including recycling containers and waste receptacles associated with disposable bags; (E) Fund community cleanup events and other activities that reduce trash associated with disposable bags; (F) Mitigate the effects of disposable bags on the City's drainage system, transportation system, wildlife and environment; (G) Maintain a public website that educates residents on the progress of waste reduction efforts associated with disposable bags; and (H) Fund the administration of the disposable bag fee program. (h) No disposable bag fees collected in accordance with this chapter shall be used only for general government purposes. (i) Disposable bag fees collected in accordance with this chapter shall be continually available for the uses and purposes set forth in subsection (g) of this section without regard to fiscal year limitation. No disposable bag fee funds shall be used for any purpose not authorized in this chapter. 1 Research Referenced Brendle Group Report done for City of Fort Collins from 2014 City of Aspen https://www.cityofaspen.com/DocumentCenter/View/687/City-of-Aspen-Single-Use-Bag- Study-PDF?bidId= City of Boulder https://documents.bouldercolorado.gov/WebLink/DocView.aspx?id=10701&dbid=0&repo=LF8PROD2& cr=1 City of Palo Alto https://www.cityofpaloalto.org/civicax/filebank/documents/48074 Report by Wagner, T. from 2017 1 Attachment III: Income-Qualified Relief Note: This attachment was originally created to support the initial adoption of the Disposable Bag Ordinance and is being shared with Council again as a reference for Recommendation 4. Recommendation The proposed bag ordinance includes a ban on plastic bags and a point-of-sale fee on paper bags which impacts Fort Collins’ residents. Staff recommendations include accommodations for our lowest earners and a two-pronged approach: 1) a cost exemption of the paper bag fee at the point-of-sale to participants who provide a benefit card reflecting participation in Federal, State, or County income-qualified aid programs to address the needs of low-income residents, and 2) distribution of reusable bags for low- to moderate-income earners. Context of Recommendations Fee Exemption at Point of Sale to Participants in Federal, State, or County income- qualified aid programs The proposed ordinance states “A large grocer may provide a disposable paper bag to a customer at no charge if the customer provides, at the time of purchase, a benefit card reflecting participation in federal, state, or county income-qualified aid program including but not limited to benefits delivered via Electronic Benefits Transfer (EBT) such as Supplemental Nutrition Assistant Program (SNAP) or Supplemental Nutrition Program for Women, Infants and Children (WIC).” The primary food assistance programs are described below. SNAP- Supplemental Nutrition Assistance Program ·The Supplemental Nutrition Assistance Program (SNAP) is a food assistance program in Colorado, formerly known as Food Stamps. SNAP provides food assistance benefits as part of a federal nutrition program to help low-income households purchase food. U.S. citizens and some non-citizens are eligible for SNAP benefits. Even if some members of the household are not eligible, household members who are eligible may still be able to get SNAP benefits. ·Proof of enrollment: CO Electronic Benefits Transfer (EBT) card ·For a family of 4, SNAP covers households below 36% Fort Collins/Loveland Family Median Income WIC -The Special Supplemental Nutrition Program for Women, Infants and Children ·The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) provides Federal grants to States for supplemental foods, health care referrals, and nutrition education for low-income pregnant, breastfeeding, and non-breastfeeding postpartum women, and to infants and children up to age five who are found to be at nutritional risk. To be eligible for this benefit program, you must be a resident of Colorado and one of the following: Pregnant, or Breastfeeding, or Postpartum, or A child 5 years old or younger. Individuals on Medicaid, TANF, SNAP or FDPIR are automatically income eligible. ·Proof of enrollment: CO Electronic Benefits Transfer (EBT) card ·For a family of 4 in Fort Collins, WIC covers households below 52% of Fort Collins/Loveland Family Median Income ATTACHMENT 3 2 SNAP/WIC Eligibility Guidelines in Fort Collins Each state sets eligibility guidelines. The graphic below shows the eligibility requirements in Colorado. Reusable Bag Distribution for Low to Moderate Income Residents A portion of the revenue collected from the bag fee will be used by the City to purchase reusable bags that will be distributed to low to moderate-income residents. The City will apply an equity lens and partner with the community to create an equitable plan for distributing bags to low-income households. This is likely to include working with non-profits and government agencies such as the Food Bank, Homeward Alliance, Larimer County Workforce Center, etc. to distribute bags. Reusable bags will also be distributed through affordable housing properties and at public events hosted by the City and community nonprofits. Participants in all City income-qualified programs will receive notification about reusable bag distribution events. If additional funding is made available in advance of receiving bag fee revenue, the City will distribute reusable bags earlier. 3 1 Attachment IV: Stakeholder Engagement Summary Key Takeaways ·Most people feel ready for these changes and will appreciate clear information on the Ordinance details in advance ·Many people appreciate the opportunity to receive free reusable bags ·Continuing to build relationships with disproportionately impacted stakeholders and grocers will help ease the transition ·Relationships will build a foundation to continue developing, testing, and implementing strategies to ease burdens on disproportionately impacted stakeholders Stakeholder-Specific Feedback Grocers ·Who we spoke to: ·King Soopers ·Safeway ·Trader Joes ·Lucky’s Market ·Whole Foods ·Wal-Mart ·Sprouts ·Target ·Sam’s Club ·Natural Grocers ·Total of 17 meetings with 40 grocer employees so far with 8 more meetings scheduled for February. ·Approach: Staff scheduled three preparation and engagement meetings with each chain between December and February. The first two meetings focused on providing an overview of the Ordinance and grocer requirements, including how to complete the Grocer Fee Revenue Plan. Staff has used this engagement opportunity to receive feedback on different elements of the Ordinance, feeding into Recommendations 1 and 5 for Council’s consideration. ·What we heard: ·Grocers have encountered these Ordinances in other cities and often have systems that can transfer to Fort Collins stores. ·Grocers are looking to understand the specifics of our Ordinance to get ready. ·Several grocers have corporate policies that support or align with this Ordinance. ·Several grocers mentioned they appreciate the partnership and support received in advance of implementation and that they have a long runway to get ready. ·The majority of grocers support aligning to the State’s fee amount and City- grocer split to increase consistency across the State. ·Some grocers also shared concerns about short-term supply chain impacts on prices and availability of reusable and paper bags. ·Generally, there are a lot of pressures on grocers at the moment, ranging from COVID impacts on staffing and supply chains to more local issues like the Boulder fires and customer tensions. ATTACHMENT 4 2 Disproportionately impacted stakeholders · Who we spoke to: · Seniors (e.g., some individual members of Senior Advisory Board, Senior Center patrons) · People with physical, intellectual, and developmental disabilities (e.g., People First members, unaffiliated community members with disabilities) · Low-income residents (e.g., CARE Housing Residents) · Over 30 community members across all groups · Note: Members of each of these groups may intersect with the others, for example, many seniors we spoke to also have a disability · Approach: Staff went to where people are in the community, offered information about the Ordinance and facilitated open conversation around what questions or concerns people had and what ideas they had to make the transition to the new bag rules easier. Whenever possible, staff prioritized deeper conversations to understand perspectives thoroughly and to build relationships and trust with these communities. · What we heard:  · Many people   Will seek to avoid paying the 12-cents by bringing reusable bags.  Already use reusable bags, although sometimes forget them.  Support moving away from disposable plastic grocery bags.  Have experienced these changes in other cities they’ve lived in or visited.  Feel ready to make the change.  Expressed respect that the voters approved the Ordinance.  Like the idea of getting free reusable bags and wanted to understand where to buy reusable bags.  Are aware of the impact of plastic bags on the environment. · Several people  Are concerned about not having plastic bags to reuse for purposes such as cleaning litter boxes and lining trash cans.  Are interested in more stores making cardboard boxes available to carry out groceries (similar to the approach used currently at Costco, Sam’s Club, and Natural Grocers).  Felt concerned about the hygiene of reusable bags and hopes City will encourage people to wash bags regularly.  Shared observations that some will be upset about the cost but believe the low-income exemptions will help.  Were curious what grocers think of the change.  Mentioned there will be an adjustment period and that it may be hard for some at first.  Liked that the Ordinance does not apply to small grocers.  Like plastic bags because of how easy they are to use and will miss them  Use in-store plastic film recycling and wish more people would use it to recycle plastic bags.  Feel confused about the State’s policy and how it will interact with our local Ordinance.  Feel confused about grocery delivery and pick-up under the Ordinance.  Expressed that they were unaware of the impacts of paper bags on the environment. 3  Wanted to make sure that the changes were communicated to their community through effective channels.  Said they had a hard time picturing what to do at the cash register when using reusable bags or paying for paper bags.  Dislike regulations generally. Highlight: Storyboarding Based on feedback from People First (a local group of community members with intellectual and developmental disabilities who advocate to reduce and remove barriers to equitable community access), staff will leverage more “storyboard” based communication materials to help people understand what to do at the checkout. Storyboards can help visual learners, people with intellectual and developmental disabilities, people who speak other languages, and the general public. This builds on existing best practices for communicating waste guidelines visually. Staff is exploring a deeper partnership with People First and The Arc of Larimer County to create storyboards related to the Disposable Bag Ordinance. The final product will be integrated into the community-wide communications and outreach campaign this spring. More about People First and The Arc of Larimer County available at: https://thearcoflarimercounty.org/about-us/ https://thearcoflarimercounty.org/what-we-do/people-first/ Disposable Bag Ordinance Review01-25-22Molly SaylorLead Sustainability SpecialistATTACHMENT 5 2Questions for Council1. Which, if any, of the potential changes does Council support going forward?1. If Council supports making changes to the Ordinance, does Council alsosupport staff bringing a revised Ordinance to consider for adoption inFebruary? STRATEGIC ALIGNMENTEnvironmental Health• 4.4 Zero waste• 4.9 Poudre River healthBUDGETProgram funded by dedicated bag fee revenue• $120k in 2022 3Plastics PollutionCOUNCIL PRIORITYPlastics Pollution• Microplastics• Macroplastics 4Our Climate Future AlignmentThis strategy supports Big Move 2: Zero Waste Neighborhoods It also…•centers community bymaking fee revenue available for community-led or co-led projects •centers equity by partnering with historically underrepresented groups to design materialsOCF Approach in Practice – StoryboardingStoryboarding, suggested by People First, is an accessibility tool to visually let people know what to do in new situations. Storyboards can help visual learners, people with intellectual and developmental disabilities, people who speak other languages, and the general public. 5Fort Collins Disposable Bag OrdinanceWhat is the Fort Collins Disposable Bag Ordinance?• Adopted in February 2021; affirmed by voters in April 2021• Effective May 1, 2022• Bans plastic bags at large grocers; 12-cent fee on paper bags • Half of the 12-cent fee to grocers and the other half to the City • Requires Grocer Fee Revenue Plan• Creates new City program for Plastic Pollution and Waste Reduction• Income-qualified program participants exempt from 12-cent fee 6Developments Since AdoptionSince Council adoption and voter approval…• Passage of Colorado Plastic Pollution Reduction Act (HB21-1162)• Stakeholder engagement (grocers and disproportionately impacted groups)• Lead sustainability specialist hired to manage Ordinance and related Program• Initial distribution of reusable bags to low-income householdsBag Distribution - Phase I• 1,300 households• 3 bags / household• Includes tips and info 7Engagement ThemesReady to goSupportive, with some help neededConcernOutreach approach:• Go to where people are• Relationship building •“What questions or concerns do you have?”•“What could we do to make this easier?”Outreach to:• Seniors• Community members with low/moderate incomes• Community members with disabilities• Grocers 8Colorado Plastic Pollution Reduction ActWhat is the Colorado Plastic Pollution Reduction Act?• 2023 – All retailers to charge 10-cents per plastic or paper bag• Fed or state food assistance recipients exempt• Splits bag fee 60-40 (City-grocer).• 2024 – Plastic bags banned; Expanded polystyrene food containers banned at retail food establishments• Fee on paper bags continues• 2024 – Local government pre-emption clause repealed; local ordinances “as stringent or more stringent” than State’s policy ok 9Continuum of ScenariosContinuum of scenarios for Council consideration:Maintain local Ordinance as writtenAlign completely with StateStaff recommendation:Complementary policy (maintains timing and equity elements) 10Staff Recommended ChangesGeneral Fees Exemptions Definitions & Administration1. Maintain timeline for bag changes for grocers2. AdoptState paper bag fee of 10-cents3. Adopt State bag fee split between City and grocers (60-40)4. Maintainexemption for allincome-qualified program recipients5. Allow administrative rules for other exceptions6. Align toState definitions7. Clean up other non-substantive elements, as identified by Staff 11Discussion Point – Recommendations 2&3: Fee Amount and StructureConsiderations: •No impact to City revenue in either scenario – both result in 6-cents per bag to City• Majority of grocers prefer greater consistency across the State over higher grocer share• Change will mean fewer funds available to grocers for costs related to Ordinance• For example, may not cover paper bag costs with supply chain disruptionsCurrent status Proposed change12-cent fee per paper bag; 50-50 split (City-grocers)10-cent fee per paper bag; 60-40 split (City-grocers)• City – 6-cents/bag• Grocer – 6-cents/bag• City – 6-cents/bag• Grocer – 4-cents/bag 12Discussion Point – Recommendation 4: Maintaining Broad ExemptionCurrent statusProposed changeConsiderations: • State’s policy limits exemption to food-based assistance programs only• Broader definition may be considered “less stringent” than State’s policy and thus not aligned• Maintaining aligns with previous Council’s desire to exempt as many low-income community members as possibleCurrent status Proposed changeRecipients of any Federal, State, County or local income-qualified assistance programNone – maintain as originally written 13Discussion Point – Recommendation 5: Allowing Further ExemptionsConsiderations: • State’s policy limits fee exemption to food-based assistance programs only• Additional exemptions could be considered “less stringent” than State’s policy and thus not aligned• Allows staff to flexibly explore and test equity-focused exemptions and program elementsCurrent status Proposed changePaper bag fee can only be waived for income-qualified program recipients but not other hardships or in other necessary situationsAllow administrative rules to create additional exemptions (e.g. other hardships, safety sensitive situations, etc.) after further exploration and testing 14Next Steps & Timeline - Disposable Bag OrdinanceI. Support early roll-out with grocers; stakeholders (2021-February)II. Based on Councilmember feedback, bring forward draft Ordinance (2021-February /March)III. Council consideration of updated Ordinance (2021-February /March)IV. Launch community-wide communications; outreach (March-April)V. Ordinance goes into effect May 1, 2022VI. Continue checking in with grocers and disproportionately impacted stakeholders (May-ongoing) 15Questions for Council1. Which, if any, of the potential changes do Councilmembers support going forward? 2. If Councilmembers support making changes to the Ordinance, do Councilmembers also support staff coming back to Council in February with a revised Ordinance to consider for adoption?