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HomeMy WebLinkAboutMemo - Mail Packet - 9/28/2021 - Memorandum From Molly Saylor Re: Reduce Plastic Pollution - Comparison Of Adopted State Bill And Local OrdinanceEnvironmental Services 222 Laporte Ave. PO Box 580 Fort Collins, CO 80522 970.221.6600 fcgov.com/environmental services MEMORANDUM Date: September 21, 2021 To: Mayor Arndt and City Councilmembers Thru: Kelly DiMartino, Interim City Manager Kyle Stannert, Deputy City Manager Jacqueline Kozak Thiel, Chief Sustainability Officer Lindsay Ex, Environmental Services Director Caroline Mitchell, Waste Reduction and Recycling Program Manager From: Molly Saylor, Lead Specialist, Environmental Sustainability Re: Reduce Plastic Pollution – Comparison of Adopted State Bill and Local Ordinance Purpose: Inform Council how the State of Colorado’s Plastic Pollution Reduction Act (HB21-1162) compares to the Fort Collins Disposable Bag Ordinance No. 026, highlight local considerations related to the State’s Bill, and present staff recommended next steps. Bottom line: Based on a staff review, there are some significant differences between the State and City bag policies, for example, implementation timelines, entities regulated, and the State’s narrower exemption to the paper bag fee. The State policy also bans expanded polystyrene (a.k.a. Styrofoam). There are several other similar but not identical elements between the two policies (see Table I). Staff recommends updating several elements to align with the State, while maintaining other elements as originally written, and plans to discuss proposed changes with Council at the January 25th Work Session as part of Council’s priority. Background: Fort Collins Disposable Bag Ordinance No. 026. The Fort Collins Disposable Bag Ordinance (No. 2021- 026) was passed by Council in February as part of their work to Reduce Plastic Pollution and was affirmed by the voters in the April election. The Ordinance bans plastic bags and puts a 12-cent fee on paper bags at large grocers, beginning May 1, 2022. Recipients of income-qualified programs are exempt from the 12-cent fee. The Ordinance requires grocers and the City to split fee revenue 50-50 and for grocers to create a fee revenue plan. The City may use its portion of the revenue to support plastic pollution and waste reduction efforts. Colorado State Bill HB21-1162. The Colorado State Bill (HB21-1162), passed in June 2021, phases in changes to grocery bags and expanded polystyrene (Styrofoam) between 2023 and 2024. The first change will require all retailers to charge 10-cents for plastic and paper bags (small stores exempt) in 2023. In 2024, plastic bags will be banned in stores (except for use of existing inventory) and the fee on paper bags will continue. Recipients of federal or state food assistance programs are exempt from the fee. The Bill splits the 10-cent bag fee between grocers and local governments at a 40-60 split (respectively). Also in 2024, expanded polystyrene food containers will be banned at all retail food establishments. 2 The Bill also repeals the local government pre-emption clause and expressly permits, on July 1, 2024, local governments to enact local ordinances or rules that are “as stringent or more stringent” than the State policies. Key considerations for Fort Collins: Local retailers will need clarity around which implementation timelines and policy details to follow as preparation for the changes will begin months in advance of implementation. Council may want to take steps to align or affirm our local Ordinance no later than Q1 of 2022 (note that a Work Session is scheduled for January 25, 2022 to discuss the staff recommended changes). On or after July 1, 2024, the State’s Bill allows local ordinances to be more stringent but does not support more permissive ordinances. This may impact the ways in which the City addresses equity impacts in its own Ordinance, including both existing and future considerations. For example, with the State’s narrower paper bag fee exemption, fewer people would qualify. Another example is if the City wished to create a new exemption focused on considerations for disabled persons. o With the initial focus on equity impacts of this Ordinance, Council may wish to discuss this implication further in the context of Staff’s recommendations (see Table I) to maintain the broader low-income exemption in the Fort Collins Ordinance as originally written and consider future equity-related changes. With more stores included in the State’s Bill, Fort Collins would likely see more revenue than originally projected, expanding the capacity of the City’s new plastic pollution mitigation and solid waste and litter reduction program. Recommended Next Steps: Immediately: Share information with the community via https://ourcity.fcgov.com/plastics on how the Bill and the Ordinance compare and on next steps City Council and staff are taking in advance of roll-out. Fall: o Continue detailed analysis of the State Bill (HB21-1162), for example comparing precise wording of definitions, in advance of January 25th work session. o Conduct engagement with grocers and disproportionately impacted stakeholders to identify any other changes to the local ordinance that Council could consider. Winter: Council Work Session scheduled for January 25th, 2022 to discuss proposed changes and any further updates surfaced through engagement or Council preferences. Additional regular meetings may be scheduled if Council decides to make any changes to our local ordinance. Related Resources: Fort Collins Disposable Bag Ordinance (No. 026) - https://www.fcgov.com/elections/files/plastics- ordinance.pdf Colorado State Bill HB21-1162 - https://leg.colorado.gov/sites/default/files/2021a_1162_signed.pdf Table I - Policy Comparison Table with Staff Recommended Changes (Note: Significant differences are highlighted in the table using orange font) Element of Regulation Fort Collins Bill State Bill Staff Recommendation Items regulated Plastic and Paper Bags Plastic and Paper Bags, Styrofoam No recommended changes Entities regulated Large grocers over 10,000 square feet with majority of typical grocery departments Bags - All stores and retail food establishments (excepting restaurants meeting certain requirements and small stores, see below) Styrofoam – All retail food establishments, with some exceptions for schools Align: Expand Fort Collins’ Ordinance to align to the State’s broader scope for new plastic bag rules. Implementation date Plastic bag ban and paper bag fee -- May 1, 2022 Styrofoam – 1/1/2024 Paper and Plastic bags for fee – 1/1/2023 Plastic bag ban (paper bag fee continues) – 1/1/ 2024 Local regulation permitted if not “less stringent” – 1/1/2024 Maintain: Keep the implementation date of the FortCollins Ordinance the same as originally written. Fee amount 12-cents/paper bag 10-cents/paper bag Align: Change Fort Collins’ fee to 10-cents/paperbag to reduce confusion Fee recovery 50-50 split grocer and CityRemittance schedules vary.Will start one quarter after the ban takes effect. 40-60 split grocer and City (respectively)Quarterly remittance starting 1/1/2022Align: Change the grocer split to 40-60 (grocer andCity, respectively) to reduce confusion. Combinedwith aligning the fee, the two changes maintain the City’s ability to recover costs. Fee use by City Various waste-relatedactivities, aligned with StateBill. Administrative and enforcement costs and anyrecycling, composting, or other waste diversionprograms or related outreach or education activities No recommended changesFee exemptions Recipient of an income-qualified program Recipient of State or Federal food assistance program Maintain: Keep the broader allowance for who can receive an income-qualified exemption to preserve this equity element of the original Fort Collins Ordinance.Otherexceptions/exemptionsN/A Some small stores are exempt from the bag ban(with less than three locations in Colorado and arenot part of a franchise with physical locations outside the State) Align: If the local Ordinance is expanded to includea broader scope of store types, also include theState’s small store exception. Enforcement and fees City enforcement with standard code violationpenalties Allows City to define fines and penalties No recommended changeOther elements Does not clearly define how grocery pick-up anddelivery will be handledDefines point of sale to be store or wherever groceries are delivered meaning it will apply todeliveryAlign and consider: Adopt the State’s definition to reduce confusionandconsider if an additionalequity consideration should be made by exemptingdisabled community members for whom delivery and pick up are their only options (pending further engagement with thatcommunity).Pre-emption Not addressed Repeals blanket local pre-emption effective 7/1/2024; permits local government measures at leastasstringentasStateBillonorafter7/1/2024Maintain: Maintain original timelines as written in local Ordinance; there will be an approx. 1.5 year gapbeforethepre-emptionisrepealed.