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SR-510-003-02 . .- J City of Santa Moniea@ City Council Report City Council Meeting: June 13, 2006 Agenda Item:.i..S To: Mayor and City Council From: Craig Perkins, Director - Environmental and Public Works Management Subject: Recommendation to Ban the Use of Food-Related Expanded Polystyrene within Santa Monica and Provide Direction to Staff on Possible Actions Related to Plastic Grocery Bags and Other Non-Recyclable Plastic Food Packaging Recommended Action It is recommended that Council: 1. direct the City Attorney to prepare an ordinance that would ban the use of food- related expanded polystyrene (EPS) food packaging within Santa Monica; 2. direct that EPS food packaging be discontinued from use at all City facilities, City managed concessions and City sponsored events; and 3. provide staff with direction on possible additional City actions related to plastic grocery bags and other Non-Recyclable Plastic Food Packaging as is discussed below. Executive Summary This report presents the results of a staff investigation, requested by City Council on March 22, 2005, into the potential costs and benefits of banning expanded polystyrene food service packaging in Santa Monica. The results of that investigation indicate that such a ban would provide environmental benefits to the community and would not likely 1 have significant negative economic impacts to the city or to local food service businesses. It is recommended that the ban should apply to all public, private and non- profit entities within the City and have an effective date one year from the final ordinance adoption date so as to allow extensive information and outreach to impacted businesses. Budgetary impacts from the adoption of a ban would include additional costs to City operations to buy alternative food packaging, costs to prepare and distribute outreach materials to businesses, and staffing costs for implementation and enforcement. Staff estimates the total annual budgetary impact related to the implementation of a ban to be approximately $31,000 for supplies and materials and staff resources equivalent to approximately .25 FTE Administrative Analyst position on an as-needed basis. Backqround On January 22, 2001, the City's Task Force on the Environment (TFOE) unanimously approved a motion recommending that City Council adopt an ordinance prohibiting the use of "food-related" expanded polystyrene (EPS) plastic foam packaging in Santa Monica. This motion was intended to address the extensive negative impacts to the beach and marine environment from EPS food packaging. On June 14, 2004, the TFOE unanimously approved a motion requesting that City Council adopt an ordinance "that bans the purchase, sale and distribution of single-use non-CRV (California Refund Value) plastic food containers on City-owned or managed property". This motion was 2 made in response to recent data 1 regarding the continuing and increasing negative environmental impacts of plastic products as well as recent regulatory programs targeting single-use non-recyclable plastic food packaging products adopted by other local coastal communities. On March 22, 2005, City Council directed staff to "investigate a ban on foam plastic products, as recommended by the Environmental Task Force and recently passed by the City of Malibu, consult with the local business community on economic impacts and return to Council with information, recommendations, and suggestions for an implementing ordinance if appropriate." In response, staff researched: 1) the environmental impacts of EPS, other plastic containers, and various alternative products; 2) policy initiatives and actions other communities and government agencies have taken to regulate or ban specific plastic food packaging products; and 3) potential costs and other impacts to the City and to local businesses and organizations from the actions proposed to be taken in Santa Monica. This report presents the results and recommendations of the staff analysis. For the purpose of this report, "food packaging products" and "food service products" are synonymous and refer to cups, plates, trays, bowls, take-out food containers and other single-use disposable products used in the restaurant and food service industry for prepared, ready to consume food products that are packaged in the City of Santa I Including: Use and Disposal of Polystyrene in California, April 2003 (Draft), California Integrated Waste Management Board; and Composition and Distribution of Beach Debris in Orange County, CA, Marine Pollution Bulletin, March 2001 3 Monica. This would not include such items as egg cartons and meat trays used in grocery stores. For the purpose of this report, "other non-recyclable plastic food packaging" refers to clear polystyrene food packaging (plastic with the recycling symbol and the number 6). This material is technically recyclable but it is not practical or cost effective to recycle. When considering management options for plastic products and their resulting contribution to the waste stream, it is important to be aware of the individual characteristics of the many different types of plastics, including their common uses, disposal options and environmental impacts, as well as to understand the characteristics and availability of alternative products. For example, the impacts of polystyrene food packaging on marine ecosystems differ depending on whether the polystyrene is expanded (such as a "foam" coffee cup) or is a clear solid. Expanded polystyrene is currently used throughout the economy including use in building and construction and for many kinds of packaging from foam block packaging for fragile equipment, to coffee cups and other food containers. Expanded polystyrene is a petroleum-based product made from plastic that has been "blown" or expanded using a gas. In the past, chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs) were used as blowing agents to expand the plastic. The CFCs, the most environmentally destructive of the chemicals used as blowing agents, were voluntarily phased out of the manufacture of EPS food-service products around 1988 because of the significant threat they pose to the protective stratospheric ozone layer. Federal law 4 mandated the elimination of HCFCs after 1993. Most EPS food-service products and other EPS products are now made with pentane, a legal alternative to CFCs and HCFCs which is not known to pose a threat to the ozone layer (per the U.S. Clean Air Act Amendments of 1990), but contributes to ground level smog as well as global climate change. In the late 1980s and early 1990s several communities, including Berkeley, CA, Portland OR, and Santa Monica, instituted bans on EPS food service products manufactured with CFCs and HCFCs, primarily in response to concerns about the ozone-depleting potential of these chemicals. Although the technology exists to recycle EPS, very little is actually recycled due to economic and logistical constraints. In 2002, the polystyrene industry reported that of the 869 million pounds of EPS produced in the U.S. only 26.2 million pounds of post consumer EPS packaging (3% of the total) was recycled. Of that 3%, almost none of the material recycled was EPS food packaging. Most of the EPS that is recycled consists of foam block packaging material that is reground and remolded into similar products at a small scale by individual polystyrene manufacturing companies. There are currently no municipalities in the U.S. that offer curbside collection and recycling programs for EPS because recycling is not currently economically viable, as acknowledged by the polystyrene industry. The only EPS recycling plant in California capable of recycling EPS food packaging was taken out of service in January 2001, thereby effectively eliminating the ability to recycle EPS food packaging in the state. 5 Impacts of EPS to the Beach and Marine Environment The EPS food packaging is designed for a useful life that can be measured in minutes or hours, yet because it is a non-biodegradable product (i.e. it is unable to decay into constituent substances) it persists in the environment for hundreds and possibly thousands of years. Numerous studies have documented the prevalence of EPS debris in the environment. A litter management pilot study conducted by the California Department of Transportation from 1998 - 2000 found that EPS represented 15% of the total volume of litter recovered from stormdrains. A 1998 study that quantified beach debris at 43 sites along the Orange County coast found that EPS was the second most abundant form of debris, following pre-production plastic pellets. A detailed breakdown of beach debris collected nationwide in 1999 on Coastal Cleanup Day indicates that approximately 75% of all EPS debris was from food packaging including cups, fast-food containers, plates and miscellaneous foam pieces. A much smaller percentage (<3%) was from egg cartons and meat trays, and the remainder was from non-food packaging materials. Data from the 1997 California Coastal Clean-up Day list foamed plastic as the second most commonly found beach litter, after cigarette butts. Data from Heal the Bay's Adopt-A-Beach program for 2005 indicate that EPS and non-recyclable plastic comprised over 64% of all trash collected from Santa Monica beaches during the year (Figure 1). 6 Figure 1. Santa Monica Adopt-A-Beach Trash Totals 2005 Material Pieces collected % of total Non-recyclable plastic EPS Cigarette butts and lighters Paper and cardboard Recyclable bottles and cans Metal caps, lids and batteries Other Total 26,298 19,124 17, 182 3987 2437 1099 358 70,485 37.3% 27.1% 24.4% 5.7% 3.5% 1.5% 0.5% 100% The relationship between EPS disposable food packaging and beach litter/marine debris is a main reason cited by communities that have recently banned or restricted the use of EPS food packaging in their jurisdictions. Since EPS material is so light, it floats in water and is easily carried by the wind, even when disposed of properly. It also readily breaks down into small pieces (although it cannot ultimately biodegrade). Marine biologists have concluded that degraded EPS in the marine environment mimics certain natural food sources and therefore increases the chance of ingestion by wildlife. Recent studies have found plastics to be in the digestive systems of nearly all tested ocean-feeding bird species. Ingestion of EPS by birds and marine animals often results in reduced appetite, reduced nutrient absorption and possible death by starvation. Information provided by plastic industry groups to staff suggests that litter is not caused by the discarded product, but instead by illegal human behavior. It is also suggested that biodegradable food service packaging may actually increase the amount of litter generated because well-meaning individuals will no longer feel compelled to dispose of trash by appropriate means. While it is generally agreed that much of the food service 7 EPS litter is the result of thoughtless human actions, some food service EPS litter is actually a result of wind or water drift from waste bins, waste haulers, and other litter sources. Furthermore, public education and enforcement of existing litter laws to date have had little effect in eliminating littering2. Nevertheless, improved litter education and outreach programs, particularly on a regional basis, may help to reduce some of the litter reaching the beach and marine environment. The California Restaurant Association and the American Chemistry Council have indicated a willingness to work with the City to develop and assist with funding a comprehensive anti litter program focused on litter in Santa Monica. A copy of their anti litter proposal can be found with the online version of this staff report. Alternatives to EPS Food Packaqinq There are several alternatives to EPS currently available for food packaging. These include paper, aluminum, rigid plastic, and bio-products manufactured from corn starch, sugar cane, or a combination of bamboo, tapioca and water. Cost and availability of these products differs based on the type of material and the type of product (i.e. cups, plates, trays, take-out containers, etc.); however, the more commonly used container types are readily available in Santa Monica from existing food packaging suppliers. From a beach litter and marine pollution perspective, all of these alternatives are believed to be superior to EPS because 1) they are less likely to be blown out of waste , receptacles; 2) in the case of paper, plastic and aluminum products they are less likely to break apart into smaller pieces; and 3) in the case of the bio-products, they will 2 Municipal Best Management Practices for Controlling Trash and Debris in Stormwater and Urban Runoff, May 2006, California Coastal Commission 8 eventually biodegrade in the environment if they are improperly disposed of, which will minimize the negative impacts on wildlife. When considering only purchase costs, EPS is currently the least expensive food packaging available followed by paper products and then other types of rigid plastic containers. The price of biodegradable and compostable food packaging now on the market can be comparable to the cost of paper and non-EPS plastic for some types of containers and can be significantly more expensive for others. Although EPS is currently the least expensive option from an initial cost perspective, prices for EPS rise in parallel with increasing crude oil prices. The price of both paper and rigid plastic packaging or containers varies considerably depending on the product type, weight and thickness. It is important to note that all types of single-use disposable food packaging products cause environmental impacts. Most paper products, particularly those intended for hot foods or drinks, are lined with a petroleum-based polyethylene coating - this coating gives the product rigidity and insulation. Although these products present less of a marine debris problem than EPS, they cannot be effectively recycled or composted. Like EPS containers, rigid plastic containers are made of petroleum based polymers. However, these products have poor insulating value and some are not intended for hot foods or drinks. The majority of non-EPS, single-use disposable containers currently used for food service, with the exception of beverage containers, are made of clear polystyrene. Clear polystyrene containers cannot currently be recycled. 9 The most popular type of biodegradable and compostable container is made from corn starch. These containers are used by companies such as Wild Oats and more recently Wal-Mart. These containers look like clear plastic and perform very well for many food products, but have poor insulating properties and are not intended for hot foods or drinks (above 115 degrees F). There are a variety of other biodegradable and compostable food packaging and containers manufactured for both hot and cold foods. These products have good insulating properties, are rigid, and some are microwavable. These containers are manufactured with renewable resources, including plant-based starches and fibers, sugar cane fiber, corn starch and limestone. ReQulation of EPS and Other Plastics in other Jurisdictions In 2004, in response to growing concern about the environmental and economic impacts of EPS debris to beach and marine environments, several coastal communities in California including the Cities of Huntington Beach, Laguna Hills, San Clemente, San Juan Capistrano and Aliso Viejo and the County of Ventura, instituted restrictions or bans on EPS, primarily within their own public facilities and at city-sponsored events. In 2005, the City of Malibu also instituted a city-wide ban on EPS food service products. Data is not currently available regarding the effects of the recent bans on reducing debris at local beaches. The cities of Portland and Berkeley both report that their bans (instituted in the early 1990s) remain in effect and that, after an initial adjustment period on the part of regulated businesses, they have been very successful. They further state that compliance by local businesses has not been a significant issue, and that the 10 alternative products In predominant use are clear polystyrene, coated paper and aluminum. Internationally there have been many bans on EPS and other plastic products, primarily in response to trash and litter issues. China banned the use and production of EPS food containers in 2000. In 2003, Taiwan banned disposable plastic tableware as well as plastic shopping bags. Kenya, Rwanda, Germany and Sweden, and thirty towns in Alaska, have all banned the use of plastic shopping bags. Ireland, Denmark and Switzerland have all instituted a "tax" on plastic shopping bags to encourage the use of alternatives. The program in Ireland reportedly contributed to a 90% reduction in the use of the plastic bags since the fee was imposed in March 2002. In January 2005 the San Francisco Commission on the Environment unanimously approved a proposal asking the City to impose a 17 cent fee on plastic and paper grocery bags. In November 2005 that proposal was put on hold when the City of San Francisco entered into an agreement with supermarkets in the area to voluntarily reduce bag use and recycling, targeting a reduction of 10 million bags by December 2006. EPS Food Service PackaQinQ Use in Santa Monica In Santa Monica, there are approximately 300 individual restaurants and food service businesses currently holding business licenses. The Santa Monica Chamber of Commerce recently conducted an on-line survey of its member businesses in the food service industry. Of the 14 responses it received, 11 businesses noted that they currently use some type of EPS food packaging in their operations. Respondents listed 11 paper, plastic and corn-based biodegradable containers in response to the question "What alternative products work for you?" In response to the question "What difficulties have you encountered in finding alternatives to styrofoam?" four respondents listed "price" or "cost" and one respondent noted the lack of availability of a particular container type in an alternative material. Responding businesses indicated a wide range in the amount they currently spend on EPS packaging, between $0 and $25,000 per year. A copy of this survey can be found with the online version of this staff report. City staff, with the assistance of Santa Monica College students, conducted a survey of 122 Santa Monica food service businesses in January 2006 to assess the type and quantity of food service and packaging materials used. Forty seven percent of the 122 businesses surveyed use no EPS food packaging at all. Fifty three percent of the businesses surveyed use some type of EPS food packaging, primarily cups and clamshell to-go containers. Additionally, about 30% of the restaurants use some type of clear polystyrene containers, including clamshell to-go containers, cup lids and condiment cups. Nearly half of the restaurants use paper food service products including to-go boxes, cups and plates, and twelve restaurants use aluminum to-go containers and aluminum foil. Many of the restaurants surveyed used more than one type of food packaging materials. Extrapolation of the data from the staff survey suggests that a ban on EPS food packaging in Santa Monica could possibly impact up to 150 or more businesses. It is difficult to obtain accurate estimates of the different types and amounts of food 12 packaging purchased and used by each business. For this reason, an accurate estimate of potential costs for switching to alternatives is difficult to calculate. This is also complicated by the variety in the number, types and sizes of food packaging purchased and used by restaurants. The California Restaurant Association (CRA) and the American Chemistry Council (ACC) recently conducted a telephone survey of Santa Monica restaurants regarding the use of EPS. A copy of this survey, along with letters and other communications from the CRA, the ACC and their public relations consultants, and information regarding CRA member restaurants in Malibu regarding increased costs for the purchase of alternative packaging materials, are available with the online version of this staff report. The CRA/ACC survey indicates that 60% of respondents use some form of EPS products and that 43% or respondents indicate that they would be "negatively impacted" by a ban on EPS. The best estimates that staff can arrive at are that costs for replacing EPS disposable food packaging with non-EPS plastic, paper or biodegradable alternatives may increase container costs from 0% to 300%. The wide range depends upon the types and amounts of products required and the product uses. The estimates were obtained through interviews with restaurant owners, by reviewing actual usage data of food service packaging obtained from restaurants in Santa Monica and from cost data obtained from various local food service packaging wholesalers. Actual costs for individual restaurants to switch to an alternative product will be largely dependant on the 13 amount of EPS food packaging that they use. For a typical high volume restaurant serving primarily take-out food (the type of restaurant likely to experience the greatest economic impact from a ban), estimated additional costs for switching to alternatives range from no additional cost to $180 per month depending on the product type and material and if the product is ordered in bulk or purchased periodically in small amounts. These figures are backed up by data presented to staff from the California Restaurant Association for a typical fast food restaurant in Malibu whose costs increased $175 per month when it recently switched from EPS to paper food service containers. Current usage of EPS and non-recyclable plastic food packaging in City operations is minimal and is limited to beach concessions and to the senior lunch program. Based upon current use, the cost impact to the Senior Center programs for using non-plastic products is estimated to be less than $400 annually and less than $200 for the beach concessions. Banning the use of EPS would not eliminate the negative environmental impacts from the products on Santa Monica beaches. However, it would significantly reduce the source of such wastes within the City and would contribute to an overall reduction in the amount of plastic waste entering the Santa Monica Bay environment. An important goal of Santa Monica's Sustainable City Plan is to procure and use sustainable products and services, such as those that are durable, recyclable, non-polluting, biodegradable, and/or derived from renewable resources. None of these attributes are associated with EPS or other disposable, non-recyclable plastic containers. 14 Policy Alternatives Alternatives to the recommended action include 1) implement a ban on EPS food service products for all City facilities and City sponsored events but not for private businesses; and 2) implement a citywide ban on all types of non-recyclable plastic food service products. Option 1 would avoid any economic impact to businesses and would avoid costs to the City for implementation and enforcement of a citywide ban, however the environmental benefits of such a policy would be largely symbolic due to the currently minimal use of EPS in City operations. Option 2 would likely not prove practical due to the current lack of availability of alternatives to some plastic food service products as discussed below. Other Plastic Food Service PackaQinQ and Plastic BaQs The TFOE has strongly recommended that the City Council adopt an ordinance that will 1) ban the use of EPS food packaging by 12/31/06; 2) ban the use of non-recyclable plastic food packaging by 12/31/07 and allow the use of biodegradable plastic packaging as an alternative; and 3) encourage the use of non-plastic food packaging and promote the use of biodegradable and compostable alternative products. The TFOE has also recommended that Council consider either adopting a ban on plastic grocery bags or institution of a fee or tax to reduce their use. Staff agrees with the TFOE recommendation that EPS food packaging be banned and that businesses be encouraged to use non-plastic food packaging and promote the use 15 of biodegradable and compostable alternative products. The TFOE recommends banning non-recyclable plastic food packaging because like EPS it is a significant component of beach and marine debris. Staff concurs with this view. However, based on discussions with local restaurant owners and others in the food service industry, staff feels that banning non-recyclable plastic food service containers could prove problematic because certain food packaging products (in particular, the lids for coffee cups and other drink containers) made of clear/rigid polystyrene don't have readily available non plastic or recyclable plastic alternatives. Although staff has not thoroughly researched the problem of plastic grocery bag waste in Santa Monica, a number of communities in California and elsewhere have recently focused on plastic grocery bags as a serious litter and ocean pollution problem. In California, plastic waste comprises 9.5% of total solid waste. Plastic bags comprise about 1.5% of the total, but are believed to be a much greater percentage of beach and ocean litter. A survey conducted by EPWM Solid Waste Management staff in December 2005 solicited plastic bag information from 25 Santa Monica grocery stores and food markets. The survey concluded that these 25 businesses use approximately 23 million plastic bags each year. Based on this magnitude of use, it is apparent that plastic grocery and shopping bag waste may be an important area for further research and possible City actions. It is requested that Council provide staff with direction on possible additional City actions related to plastic grocery bags and other Non-Recyclable Plastic Food 16 Packaging, and specifically if Council would like staff to conduct additional research in these areas. BudgetlFinanciallmpact The primary budgetary impacts from adoption of the recommended ordinance would include additional costs to City operations to buy alternative food packaging, costs to prepare and distribute outreach materials to the business community, and potential staffing costs for implementation and enforcement. Staff estimates that approximately $30,000 in supplies and materials and a .25 FTE temporary Administrative Analyst position may be needed for a two year period following adoption of the ordinance. If Council directs staff to prepare an ordinance, a final fiscal impact analysis and recommendations will be presented to Council for review and action at the meeting for the first reading of a proposed ordinance. This will include additional detail regarding the costs and staffing impact of enacting an EPS and non-recyclable plastics ban. All efforts would be made to combine enforcement activities with existing on-site inspections currently conducted by City staff. Prepared by: Dean Kubani, Acting Environmental Programs Division Manager Approved: Forwarded to Council: Craig Perkin Director - nvironmental and Public Works Management Department 17 '.ll