HomeMy WebLinkAboutStaff Report 401-09CMR:401:09 Page 1 of 3
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: NOVEMBER 16, 2009 CMR:401:09
REPORT TYPE: INFORMATIONAL
SUBJECT: Recommendations and Request for Council Direction Concerning a Fee
on Single-use Paper Bags
EXECUTIVE SUMMARY
Palo Alto’s Ordinance eliminating the use of single-use plastic checkout bags at large grocery
stores became effective on September 18, 2009. At Council’s direction, staff is now returning
with recommendations for a companion fee-based program for single-use paper checkout bags
which would help minimize a conversion to paper bags and maximize a conversion to reusable
bags.
RECOMMENDATION
Staff recommends that Council direct staff to continue to develop a fee system for single-use paper
bags and to coordinate fully with the City of San Jose and others working on regional program
development, returning to Council in approximately 9 months.
BACKGROUND
Palo Alto adopted an Ordinance requiring the elimination of single-use plastic checkout bags at large
grocery stores on September 18, 2009. All affected stores complied by the deadline, with Whole
Foods, Country Sun, and Piazza’s eliminating the plastic bags voluntarily ahead of schedule. At the
time of Ordinance adoption, Council members requested that staff return with a proposal for a fee
system on paper bags to help avoid conversion from plastic to paper. The goal is to convert from all
types of single-use bags to reusable bags. Plastic bags are especially harmful to the environment
because they breakdown very slowly and endanger wildlife. Switching to paper is not desirable
because paper bags consume energy and resources in the manufacturing process. Both types of
single-use bags produce waste and consume resources. Recycling plastic bags is very difficult and
less than 5% are currently recycled. (See Attachment A for details on related Palo Alto Programs.)
Palo Alto is one of a very small number of cities in the United States to have successfully
implemented single-use plastic bag restrictions. SavethePlasticBag.com, an industry organization,
initiated litigation against most cities adopting restrictions blocking these attempts, claiming that
cities had done inadequate review under the California Environmental Quality Act (CEQA). Unlike
most other cities, Palo Alto had prepared more CEQA documentation (a Mitigated Negative
Declaration) and an out of court settlement was reached in July 2009. As part of the settlement, the
CMR:401:09 Page 2 of 3
Palo Alto Ordinance will remain in effect and Palo Alto will prepare an Environmental Impact
Report (EIR) prior to adopting plastic bag restrictions for other stores.
Palo Alto has joined with other local governments working on a plastic bag EIR to minimize costs
and staff time. While no decision on extending the restrictions to other stores has been made,
Council members directed staff to continue to work on program development. Preparation of an EIR
is the next step. A Master Environmental Assessment (MEA) is being prepared by California Green
Cities to serve as a basis for an EIR which would be tailored by each city. Palo Alto is participating
in this effort.
Palo Alto staff is also tracking closely the work on an EIR just begun by the City of San Jose. San
Jose staff has been directed by their Council to prepare an EIR which will likely analyze at least
three options:
1. Eliminate plastic and paper single-use carryout bags.
2. Eliminate plastic and paper, except for green* paper single-use carryout bags.
3. Same as 2), but with a 10-25 cent fee on paper bags to be refunded by the retailer.
*“green” means less than 40% post-consumer recycle content.
Palo Alto’s current ordinance represents the second option listed above for large grocery stores, as
40% post-consumer recycle content is mandated for paper in the Palo Alto Ordinance.
DISCUSSION
Local businesses have advised staff that a regional fee system is critical to avoiding strong
opposition. Business leaders believe that a Palo Alto – only fee system would decrease the
competiveness for Palo Alto businesses and lead to confusion with respect to nearby communities.
Therefore, it appears prudent for Palo Alto to continue collaborating with California Green Cities
and the City of San Jose prior to making specific recommendations to Council, both with respect to a
fee system and expanding the restrictions to other stores. The analysis of both the fee system and the
larger set of stores will be linked in the San Jose analysis. The fee system may also be addressed in
the California Green Cities work. The Greenhouse Gas (GHG) analysis in an EIR will depend upon
estimates of paper bag usage which would presumably be impacted by a fee system, or the lack
thereof.
A single-use bag fee system has not yet been implemented anywhere in the United States. The City
of Seattle’s would have been the first, but it was overturned by a vote of Seattle residents. Palo Alto
staff began work on a fee system for paper bags following the lead of Seattle and draft California
legislation which would split the fee revenue between the store and government. San Jose staff has
been directed to work on a fee system where 100% of the fee is retained by the store. Such a fee
system requires a different type of research and analysis than a system where a portion is remitted to
government.
A fee system would be enhanced and more efficient the larger the area of geographic coverage.
With that principle in mind, the Santa Clara County Recycling and Waste Reduction Commission
(RWRC) has recommended a County-wide system of plastic bag restrictions and fees on paper
bags. Palo Alto’s Mayor currently serves on the RWRC. The San Jose work on development of a
fee system has become the next logical step in the implementation of the RWRC recommendation
CMR:401:09 Page 3 of 3
for County-wide coordination on a fee system. Palo Alto staff is, therefore recommending awaiting
the outcome of the San Jose analysis prior to returning to Council with specific recommendations.
Due to the linkage, through the required EIR, to the issue of expanding the plastic bag restriction to
other stores, staff also recommends waiting on this issue. Staff expects to return to Council in 9
months.
NEXT STEPS
The next step is for staff to return to Council within nine (9) months with recommendations on a fee
system for paper bags and on an expansion of the program beyond large grocery stores.
RESOURCE IMPACT
The resources need to continue to work on recommendations. The resources needed to implement
an expanded program will be addressed with those recommendations in approximately 9 months.
POLICY IMPLICATIONS
Imposing a fee system on single-use paper bags would tend to reduce their use and would be fully
consistent with the policies contained in the City’s Zero Waste Operational Plan. However, such a
system is not yet being recommended for adoption.
ENVIRONMENTAL REVIEW
The environmental impact of a fee system for single-use paper bags is positive as it would encourage
conversion to reusable bags. Staff is exploring the extent to which environmental review
documentation is required, should a fee be recommended and imposed.
ATTACHMENTS
Attachment A: Palo Alto Fact Sheet on its Single-use Bag Action
PREPARED BY: ______________________________________
PHIL BOBEL
Manager, Environmental Compliance Division
DEPARTMENT HEAD: ______________________________________
GLENN S. ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: ______________________________________
JAMES KEENE
City Manager
Palo Alto Ordinance will remain in effect and Palo Alto will prepare an Environmental Impact
Report (EIR) prior to adopting plastic bag restrictions for other stores.
Palo Alto has joined with other local governments working on a plastic bag EIR to minimize costs
and staff time. While no decision on extending the restrictions to other stores has been made,
Council members directed staff to continue to work on program development. Preparation of an EIR
is the next step. A Master Environmental Assessment (MEA) is being prepared by California Green
Cities to serve as a basis for an EIR which would be tailored by each city. Palo Alto is participating
in this effort.
Palo Alto staff is also tracking closely the work on an EIR just begun by the City of San Jose. San
Jose staff has been directed by their Council to prepare an EIR which will likely analyze at least three
options:
1. Eliminate plastic and paper single-use carryout bags.
2. Eliminate plastic and paper, except for green* paper single-use carryout bags.
3. Same as 2), but with a 10-25 cent fee on paper bags to be refunded by the retailer.
*"green" means less than 40% post-consumer recycle content.
Palo Alto's current ordinance represents the second option listed above for large grocery stores, as
40% post-consumer recycle content is mandated for paper in the Palo Alto Ordinance.
DISCUSSION
Local businesses have advised staff that a regional fee system is critical to avoiding strong
opposition. Business leaders believe that a Palo Alto -only fee system would decrease the
competiveness for Palo Alto businesses and lead to confusion with respect to nearby communities.
Therefore, it appears prudent for Palo Alto to continue collaborating with California Green Cities
and the City of San Jose prior to making specific recommendations to Council, both with respect to a
fee system and expanding the restrictions to other stores. The analysis of both the fee system and the
larger set of stores will be linked in the San Jose analysis. The fee system may also be addressed in
the California Green Cities work. The Greenhouse Gas (GHG) analysis in an EIR will depend upon
estimates of paper bag usage which would presumably be impacted by a fee system, or the lack
thereof.
A single-use bag fee system has not yet been implemented anywhere in the United States. The City
of Seattle's would have been the first, but it was overturned by a vote of Seattle residents. Palo Alto
staff began work on a fee system for paper bags following the lead of Seattle and draft California
legislation which would split the fee revenue between the store and government. San Jose staffhas
been directed to work on a fee system where 100% of the fee is retained by the store. Such a fee
system requires a different type of research and analysis than a system where a portion is remitted to
government.
A fee system would be enhanced and more efficient the larger the area of geographic coverage. With
that principle in mind, the Santa Clara County Recycling and Waste Reduction Commission
(RWRC) has recommended a County-wide system of plastic bag restrictions and fees on paper
CMR:401:09 Page 2 of3
bags. Palo Alto's Mayor currently serves on the RWRC: The San Jose work on development of a
fee system has become the next logical step in the implementation of the RWRC recommendation
for County-wide coordination on a fee system:. Palo Alto staiIis, therefore recommending awaiting
the outcome of the San Jose analysis prior to returning to Council with specific recommendations.
Due to the linkage, through the required EIR, to the issue of expanding the plastic bag restriction to
other stores, staff also recommends waiting on this issue. Staff expects to return to Council in 9
months.
NEXT STEPS
The next step is for staff to return to Council within nine (9) months with recommendations on a fee
sYStem for paper bags and on an expansion of the program beyond large grocery stores.
RESOURCE IMPACT
The resources need to continue to work on recommendations. The resources needed. to implement an
expanded program will be addressed. with those recommendations in approximately 9 months.
POLICY IMPYCATIONS
Imposing a :fee system on single-use paper bags would tend to reduce their use and would be fully
consistent with the policies contained in the City's Zero Waste Operational Plan. However, such a
system is not yet being recommended for adoption. .
ENVIRONMENTAL.REVIEW
The environmental impact of a fee system for single-use paper bags is positive as it would encourage
conversion to reusable bags. Staff is exploring the extent to which environmental review
documentation is required, should a fee be recommended and imposed.
ATTACHMENTS
Attachment A: Palo Alto Fact Sheet on its SmgIe-use Bag Action
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
CMR:401:09
PHIL BOBEL
Manager, Environmental Compliance Division
Ii. 1 &J.-t---~
GLENN S. ROBERTS
Director of Public Works
Page 3 of3
ATTACHMENT A
City of Palo Alto
Plastic Bag Restriction and Reusable Bag Promotion
(http://www.cityofpaloalto.orgienvironment/news/details.asp?NewsID=1024&TargetID=59)
NEW ORDINANCE REQUIREMENTS
Palo Alto's new Ordinance
(http://www.cityofualoalto.orglcivicaltileba
nklblobdload.asp?BlobID=15550) prohibits
large grocery stores from distributing single
use plastic checkout bags as of September
18,2009. Materials prepared to advise store
personnel and customers about the new
restriction can be seen on the Palo Alto
website:
http://www.cityofualoalto.orglcivicaltileban
klblobdload.asp?BlobID= 17476
Highlights:
~ SingleMUse Plastic Carryout Bags not allowed.
~ Applies only to large grocery stores for now.
~ Paper bags are allowed if the postMconsumer recycled content is 40% or greater.
~. Plastic bags are allowed in produce and meat departments.
~ Reusable bags are encouraged to save resources and minimize conversion to
paper.
Public Outre.ach:
Meetings were held with grocery stores, drug stores, and food service facilities.
Regulatory action on drug stores and food service facilities was deferred pending further
work on pharmacy and prepared food issues.
Environmental Review (CEQA):
Although limited in number and
scope, studies done by others have
concluded that paper bags consume
more energy to produce than plastic
bags. Since an Ordinance restricting
Diq You Bring Your Own B<lgl plastic bags could lead to a switch to
paper, Palo Alto conducted an
environmental review resulting in a Mitigated Negative Declaration (MND). The MND
(http://www.cityofpaloalto.orgicivicaitilebanklblobdload.asp?BlobID=13928) concluded
that any potential increases in greenhouse gas emissions from increased vehicle trips and
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short-term conversion to paper bags would be reduced to a less than significant level by
Palo Alto~s programs to promote the use of reusable bags by shoppers.
Savetheplasticbag.com initiated litigation because an Environmental Impact Report (EIR)
was not prepared. The case was settled out of court to save City staff time and resources.
Palo Alto agreed to prepare an EIR before extending the plastic bag restriction to other
stores.
Council Direction for Further Action:
>-Other Stores: Staff is working on extending the plastic bag restriction to other
stores. Based on plastic bags found in the natural environment~ it appears the
most important category to address next are other stores selling food. First~ an
EIR must be prepared. Palo Alto is contributing to work being done on an EIR by
California Green Cities and following similar work being done by San Jose and
others. Palo Alto will collaborate with others to produce the most cost effective
EIR possible. >-Fee on Paper Bags: Palo Alto staff were directed by Council to prepare
recommendations on a fee system on single-use paper bags and are currently
working on fee program issues. If a fee is be imposed and retained by
government, a study must be performed demonstrating that the fee is needed to
offset City costs. If the fee is to be retained by stores~ supporting rational and
authorization will need to be identified.
Pre-Existing Ordinance
Palo Alto's pre-existing Ordinance on single-use bags requires that a store, any store,
offering single-use plastic bags, must also offer paper bags. This provision remains in
effect in Palo Alto.
REUSABLE BAG PROMOTIONS
Palo Alto has actively been promoting reusable bag use since the 1990's locally and in
collaboration with Santa Clara County-wide and San Francisco Bay Area-wide efforts.
Prior to 2008, Palo Alto estimates that it has distributed approximately 20,000 reusable
bags at various events and through a series of programs. These efforts have included
newspaper advertising, radio and television promotions, utility bill inserts, participation
at community events, store posters and reusable bag giveaways. In 2008, Palo Alto began
a more concerted and focused effort to increase reusable bag use.
2008 Bring Your Own Bag (BYOBag)
Campaign
In February 2008, Palo Alto conducted an
observational study of shopper's bag use habits
and launched a campaign April December,
2008 to increase reusable bag use. The
campaign consisted of partnering with retail
stores and community organizations to facilitate
engaging the community. In exchange for their
efforts, the 38 participating partners were
acknowledged in print and online advertising at
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a level that corresponded to a tiered reward system. Shoppers were enticed to use
reusable bags with incentives from retail partners and coupons for discounts on reusable
bag purchases. Campaign promotion included a website, newspaper ads, online ads,
discount coupon in utility bill insert, store posters, parking lot signs, campaign buttons for
store clerks, a bag monster character that made scheduled and impromptu public
appearances, the painting of reusable bags by children at local art camps, girl scouts
tabling at store entrances, community members creating a display at a neighborhood
block party, tabling at corporate employee events, stores hanging BYOBag banners, City
staff participating in a children's parade, bag giveaways and local news stories on the
campaign.
The www.cityofpaloalto.org/BYOBag web site included education on the issues with
single-use carryout bags, where to purchase reusable bags, incentives offered by partner
stores, and downloadable BYOBag promotional materials.
In April 2008, Palo Alto also helped lead a San Francisco Bay Area-wide campaign in
conjunction with the Bay Area Recycling Outreach Coalition (BayROC), BayROC is a
partnership of over 100 cities in the nine Bay Area Counties that pool their resources to
create shared outreach, education messages and promotional campaigns. The campaign
consisted of online click ads to targeted audiences, bag giveaways, radio spots and the
creation ofthe www.igotmybag.org web site.
MarchlApril2009 Financial Hardship Reusable Bag Giveaway
During March and April 2009 Palo Alto coordinated the giveaway
of reusable bags to Palo Alto households for whom the purchase of
bags may be a financial hardship. The City partnered with Mollie
Stone's Market and a postcard was mailed to 1,700 Palo Alto
households. For the month of April 2009, the postcard was
redeemable for three reusable bags. No purchase was necessary
and the City reimbursed the grocer for the costs of the bags.
In addition, the City worked with housing organizations for direct
distribution of reusable bags to residents by the property
management. Bags were purchased by the City and distributed to
219 households.
Households targeted for the giveaways were identified by their qualification in other
programs that provide financial support such as Utilities Rate Assistance Program,
affordable housing programs, and the Palo Alto Unified School Districts low/not cost
lunch programs. At total of 1,338 bags were distributed to Palo Alto households in need.
September 18.2009 Reusable Bag Give-Away:
On the effective date of Palo Alto's new
Ordinance for large grocery stores approximately
3,000 bags were given away at affected stores,
with almost all affected stores participating.
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2009 Reusable Bag Campaign:
As a follow-up to the 2008 Campaign, the City repeated its observational survey of
shopper's bag use habits in February 2009. Survey results, anecdotal data and focus
group fmdings indicated that Palo Altans had reusable bags but remembering them was
"Don't leave
me behind."
the barrier to using them. The September 2009 -
April 2010 campaign, is focused on just that. The
theme of the campaign is humorous and
lighthearted with a lonely bag longing to be taken
shopping and the tagline, "Make it a habit and Grab
it."
Again Palo Alto is partnering with retailers and
organizations to· promote remembering to bring
reusable bags. Tools for retailers include shopping
cart corral signs, store posters, campaign buttons for
store clerks, static cling window decals, floor
decals, store banners and parking lot and shopping center signs. A reminder kit for
shoppers was created that includes a static cling window decal, sticky note reminders and
a shopping list magnet. Retail stores and organizations are distributing reminder kits to
shoppers. Other campaign components include video blog testimonials featuring how
shoppers remember their bags. Shopper and store challenges, an updated website and
creative store incentives are in development to help shoppers remember whenever and
wherever they shop. Campaign publicity includes traditional methods of reaching the
community and utilization of social media such as blogging and usage of Facebook® and
Twitter®.
Also in September 2009, Palo Alto helped lead a renewed BayROC Bay Area-wide
campaign promoting remembering reusable bags. The BayROC campaign, conducted
September -October 2009, partnered with San Francisco State University Students to
create campaign components for radio, cable and broadcast television. Several cities,
including Palo Alto, held press events in September to kick-off their local and BayROC
regional campaigns. Palo Alto's press event, held at Piazza's Fine Foods, included the
stenciling of "Got Bags?" graphics on· the parking lot by a Girl Scout Troop and video
blogging by shoppers providing tips for remembering bags. The parking lot stencil was
provided in partnership with Keep California Beautiful's statewide campaign and the
City has made the stencils available to Palo Alto stores for stenciling their parking lots.
BYO-.-
BRING YOUR OWN BAG
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RESULTS
The key program goals are to:
1. Reduce single-use plastic bags, and
2. Increase the use of reusable bags.
Single-Use Plastic Bag Reduction
The primary measure of success of this goal is the compliance percentage at stores
affected by the Ordinance. One hundred percent of the affected large grocery stores have
complied.
Reusable Bag Percentage
Beginning 2008 and repeated the ftrst quarter of the calendar year, Palo Alto has
conducted observational surveys of shoppers exiting grocery stores and pharmacies to
quantify reusable bags use. The results to date are:
2008 (First Quarter)
2009 (First Quarter)
Refrigerator "BYOBag" Magnet
PALO ALTO WEB SITE LINKS
Percent Reusable Bag Use
At Palo Alto Grocery
Stores and Pharmacies
9%
18%
Car Windshield Decal "Don't Leave Me Behind"
Plastics (including links to Reusable Bag Promotions and Palo Alto Plastics Policy):
http://www.cityofpaloalto.org/environment/news/ details.asp?N ewsID= 13 74&TargetID=63
Plastic Bag:
http://www.cityofpaloalto.org/environmentlnewsl details.asp?NewsID= 1 024&TargetID=63
Expanded Polystyrene:
http://www.cityofualoalto.orgienvironmentinews/details.asp?NewsID=1277&TargetID=63
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Key Provisions
Palo Alto Plastic Bag Ordinance
5.35.030 Type of Checkout Bags Permitted at Supermarkets
(a) All supermarkets within the City of Palo Alto shall provide only the
following as Checkout Bags to customers: Reusable Bags and/or
Recyclable Paper Bags.
(b) Nothing in this Chapter shall be read to preclude Supermarkets from
making Reusable Bags available for sale to customers.
(c) All Supermarkets are strongly encouraged to educate their statIto promote
Reusable Bags.
5.35.020 Types of Checkout Bags Permitted at Retail Establishments
(a) All Retail Establishments within the City of Palo Also shall provide the
following as Checkout Bags to customers: Paper bags only, or a choice
between paper or plastic bags. If the Retail Establishment offers
customers a choice of paper or plastic bags at the checkstand, cash register
or other point of departure, the customer shall be asked whether he or she
requires or prefers that the good purchased be placed in paper or plastic
bags. The goods shall be placed in the type of bag requested by the
customer.
(b) Nothing in this Section shall be read to preclude Retail Establishments
from making Reusable Bags available for sale to customers~
( c) This Section shall not apply to Supermarkets as defined in Section
5.35.01O(f).
5.35.010 Defmitions
(b) "Recyclable Paper Bag" or "Recyclable Paper Checkout Bag" means a
paper bag that meets all of the following requirements: (1) contains no old
growth fiber, (2) is 100% recyclable overall and contains a minimum of
40% post-consumer recycled content, and (3) displays the word
"Recyclable" on the outside of the bag.
(d) "Reusable Bag" means a bag with handles that is specifically designed and
manufactured for multiple reuse and is either (1) made of cloth or other
machine washable fabric, and/or (2) made of durable plastic that is at least
2.25 mils thick and is suitable for reuse.
(e) "Single-Use Plastic Checkout Bag" means any Checkout Bag made from
plastic, excluding Reusable Bags.
(f) "Supermarket" means a full-line, self service grocery store within the City
of Palo Alto with gross annual sales of two million dollars ($2,000,000.00)
or more which sells several lines of dry grocery, canned goods, perishable
food, produce and meat and some nonfood items. The City shall use the
annual updates of the Progressive Grocer Marketing Guidebook and any
computer printouts developed in conjunction with the guidebook to
determine gross annual sales.
A complete copy of the Ordinance may be viewed at the following location:
Plastic Bag:
http://www.cityofualoalto .org/ environment/news/ details.asp?NewsID= 1 024&TargetID=63
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