Proposed Changes

This bill would delete the provisions prohibiting the department from imposing a processing fee on PET beverage containers for which there is such a willing purchaser. This bill would also prohibit the department from reducing the processing fee requirements for any beverage manufacturer for any beverage container sold in the state unless the beverage manufacturer demonstrates to the department that the beverage container is manufactured at a facility that meets or exceeds a certain percentage of recycled content, regardless of whether the container is manufactured in the state.

Beverages Covered

Remains unchanged

Deposits and Fees

Remains unchanged

Redemption System

Remains unchanged

Penalties

Remains unchanged

 

 

 

 

Details

Prohibits stores from distributing single-use carryout bags.

Would allow the distribution of recycled paper bags (and, in some areas, compostable bags) as long as they are sold for at least 10¢ each.

The requirements only apply to stores of a certain size or sales volume; however, any store could voluntarily comply with the regulations.

Reusable grocery bags sold under these regulations must be made by certified manufacturers and meet certain requirements including recycled material content. Manufacturers would be required to pay a fee to obtain their certification.

Establishes penalties for noncompliance.

Establishes a grant/loan program to support the manufacture and recycling of plastic reusable grocery bags that use recycled content.

Progress

2014
June 18 Set, first hearing. Referred to  APPR. suspense file.
May 20  Read second time and amended. Re-referred to Com. on  APPR.
May 19  From committee: Do pass as amended and re-refer to Com. on  APPR.
        (Ayes  5. Noes  3.) (May  14).
Apr. 21 From committee: Be re-referred to Com. on  NAT. RES. (Ayes  9. Noes
        0.) (April  21). Re-referred to Com. on  NAT. RES.
Mar. 27 From committee with author's amendments. Read second time and
        amended. Re-referred to Com. on  RLS.  (Corrected April 2.)
Feb. 10 Re-referred to Com. on  RLS.
Feb. 6  From committee with author's amendments. Read second time and
        amended. Re-referred to Com. on  L. & E.
2013
Aug. 5  Set, first hearing. Hearing canceled at the request of author.
June 27 Hearing postponed by committee.
May 16  Referred to Com. on  L. & E.
Apr. 29 In Assembly.  Read first time.  Held at Desk.
Apr. 29 Read third time. Passed. (Ayes 37. Noes  0. Page 712.) Ordered to
        the Assembly.
Apr. 24 Ordered to special consent calendar.
Apr. 23 Read second time. Ordered to third reading.
Apr. 22 From committee:  Be placed on second reading file pursuant to Senate
        Rule 28.8.
Apr. 12 Set for hearing April  22.
Apr. 10 From committee: Do pass and re-refer to Com. on  APPR. (Ayes  4.
        Noes  0. Page 486.) (April  10). Re-referred to Com. on  APPR.
Mar. 19 Set for hearing April  10.
Feb. 28 Referred to Com. on  L. & I.R.
Feb. 15 From printer. May be acted upon on or after March  17.
Feb. 14 Introduced.  Read first time.  To Com. on RLS. for assignment.  To
        print.

Track this bill

Details

On March 12, 2014, the Joint Legislative Audit Committee approved an audit of the Beverage Container Recycling Program within the Department of Resources, Recycling and Recovery (CalRecycle). The California State Auditor will perform the audit.
According to the audit request from Senators Cathleen Galgiani and Ricardo Lara, the audit should answer the following  questions:

1. What is the financial condition of the program?
2. Does the program have adequate protocols and practices to identify distributors and redemption amounts as well as effective collection practices?
3. How effective is the department’s oversight of distributors, including the adequacy and timeliness

of the audits and subsequent collection of redemption  deposits?

1. How effective are the policies and practices to combat fraud in the program, and does the program employ practices to prevent, detect and deter fraud?
2. Identify any program improvements to increase revenues and reduce costs and expenditures without raising distributors’ fees.
3. Evaluate the effectiveness of any changes made from recommendations in the September 2012 audit report by the State Auditors Office. Also, determine the status of implementing outstanding recommendations.

 

Details

This bill proposes many changes to the existing California redemption system, but the most significant is the establishment of a takeback system for beverages not covered by a deposit.

The existing legislation defines many types of liquids as beverages, but only requires a deposit on those packaged in certain containers. Beverages in other container types (notably aseptic packages) would be defined by this bill as "regulated beverages."

The bill requires distributors to come up with a plan for takeback and recycling of regulated beverages, and to meet an 80% recycling rate. Distributors who choose not to implement their own takeback system are required instead to pay a redemption payment into a new Voluntary Beverage Container Fund, which would be used to pay refunds on those containers (known as voluntary beverage containers) and to administer the system. Voluntary beverage containers would be subject to the same deposit and refund system as other beverage containers accepted in the existing law.

In addition, Distributors would also pay an annual fee into the Regulated Beverage Account, which would be used to fund the system.

The containers these beverages are sold in must be at least 35% postconsumer content.

This bill also proposes several administrative changes, especially regarding rates and fees and the operations of recycling centers.

The first Budget Change Proposal, “Increase Beverage Container Recycling Revenue through increased Audit Coverage,” would hire five auditors for three-year limited term positions, with a cost of $566,000 per year. CalRecycle projects this effort will bring in $2.5 million over a three-year period, or $837,000 per year, net of staff expenses.  This proposal was approved by budget sub-committees in both the State Assembly and Senate.
CalRecycle’s second proposal, “Beverage Container Recycling Program Reform Phase II: Sustainably Reducing the Structural Operating Deficit,” proposes the following changes: (1) a three-year phase-out of pro-

Processing fee offsets (meaning that beverage manufacturers would begin paying full amounts of processing fees, a $60 million annual increase); (2) eliminate administrative fee payments to recyclers and processors ($26 million per year); (3) eliminate city and county payments ($10.5 million/year) and create new $7 million Recycling Enforcement Grant Program; (4) diversify funding for local conservation corps (across the beverage, tire and used oil recycling programs); (5) eliminate payments to curbside programs of $15 million/year; (6) cut handling fees to redemption centers by $7.4 million per year by limiting payments to $1,700 per site; (7) add 12 new staff to administer new Recycling Enforcement Grant Program and analyze new data from distributors at a cost of $1.5 million.  This proposal is being “held open” by the budget committees.
The third proposal, dated January 7, 2014 and  titled, “Initial Transition for Support of DORIIS from Contractor to State Staffing,” requests that two limitedterm staff positions (at a total cost of $280,000) be created in FY 2014/15 to plan and prepare for the eventual transition of CalRecycle’s primary automated information system (known as DORIIS) from contractors to State staff resources. The new staff would also be responsible for developing technical training and information to bring other CalRecycle IT Services staff up to speed on the DORIIS technical environment. By bringing DORIIS in-house, the proposal estimates CalRecycle will yield an annual savings of $250,000.  This proposal was recently approved by the two budget sub-committees. More detailed summaries of these budget change proposals can be found in the CRI Letters and Briefings section of www.container-reycling.org. See  http://www.calrecycle.ca.gov/Temp/201415BCPs/    for the original text of each proposal.

San Francisco: A CA State Appeals Court Upholds City’s Single-Use Plastic Bag Ban

A state appeals court has issued a ruling upholding San Francisco's ban on single-use plastic bags as precedent for future cases. The ordinance, passed by the Board of Supervisors in February 2012, applies to all retail stores and food establishments, expanding a narrower 2007 law that covered supermarkets and pharmacies. It prohibits plastic bags that can be used only once and requires the stores to charge 10 cents for recyclable paper bags. It took effect for all retail stores on October 1, 2012 and for all food establishments on October 1, 2013. Similar measures are in effect in about 50 cities and counties in California and have survived legal challenges.

 

 

Details

This bill, if passed, would formalize the legislature's intent to pass producer responsibility legislation to reduce plastic pollution, especially in waterways. The resulting legislation, the Plastic Pollution Reduction Producer Responsibility Act, would serve to:

• Protect California's coasts and oceans by significantly reducing plastic pollution in the marine environment and requiring producers of those products to be financially responsible for the reduction.
• Reduce the financial burden on local governments, taxpayers, and California regional water quality control boards in implementing key marine plastic pollution prevention infrastructure and activities.
• Support California's economy by shifting the financial burden to those responsible for marine plastic pollution and by providing resources for local infrastructure projects.
• Conduct ongoing monitoring to show measurable reduction of plastic pollution in the marine environment and to better understand the sources, pathways, and impacts of marine plastic pollution.

The introduced version of the bill did not contain much in the way of implementation details, but by the third revision, the following proposals had emerged:

• The Department of Resources Recycling and Recovery would create a list of specific plastic items or categories of items that contribute significantly to marine plastic debris. Manufacturers of those items would then be required to craft a plan to reduce the number of these items ending up in the oceans.
• A system of fees, to be paid by manufacturers, would be implemented to cover the costs of the Department.
• Items that violate the policies of the bill would be subject to a civil penalty which would be used to fund the system.
• Manufacturers could elect to pay an annual fee instead of designing and implementing a waste-reduction plan.

Progress

February 20, 2013: Introduced

After being passed around from committee to committee and amended three times, this bill was referred to the Appropriations suspense file, where it was reported "held under submission" on May 24.

Track this bill

Details

Under existing law, the Department of Resources Recycling and Recovery is required to establish reporting periods and procedures for both recycling rates and redemption rates. This bill simplifies the process, removing all references to "redemption rate" in the text. The department would only be required to track recycling rates.

Progress

February 21, 2013: Introduced and read first time

The reporting bill passed in the House and made it through two readings in Senate committee before it was essentially killed. In early September, it was resurrected as a timber harvesting bill.

Track this bill

Details

This bill proposes many changes to the existing California redemption system, but the most significant is the establishment of a takeback system for beverages not covered by a deposit.

The existing legislation defines many types of liquids as beverages, but only requires a deposit on those packaged in certain containers. Beverages in other container types (notably aseptic packages) would be defined by this bill as "regulated beverages."

The bill requires distributors to come up with a plan for takeback and recycling of regulated beverages, and to meet an 80% recycling rate. Distributors who choose not to implement their own takeback system are required instead to pay a redemption payment into a new Voluntary Beverage Container Fund, which would be used to pay refunds on those containers (known as voluntary beverage containers) and to administer the system. Voluntary beverage containers would be subject to the same deposit and refund system as other beverage containers accepted in the existing law.

In addition, Distributors would also pay an annual fee into the Regulated Beverage Account, which would be used to fund the system.

The containers these beverages are sold in must be at least 35% postconsumer content.

This bill also proposes several administrative changes, especially regarding rates and fees and the operations of recycling centers.

Progress

February 22, 2013: Introduced

After a passage in Assembly and a Senate hearing, this bill was "recycled" as a bill about hazardous materials in packaging and no longer relates to the deposit system.

Track this bill

Details

Since 2002, the California general fund had borrowed hundreds of millions of dollars from the Beverage Container Recycling Fund. Between 2007 and 2009, an additional 166 million dollars was borrowed, and there was not enough money left in the fund to make scheduled recycling payments.

In early 2009, California Governor Arnold Schwarzenegger proposed a relief plan involving targeted cuts and on compressing subsidiary efforts, such as for public education and recycling incentives, into a new program of competitive grants, but legislators rejected the plan. A bill also introduced in 2009 – which would have increased deposit values, added several container types to the system and implemented a number of other changes that would have strengthened the Recycling Fund – was vetoed by the governor.

As a result of the deficit in the fund, the state reduced handling fees and funding to several recycling-related programs by 85%. Processing fees were also reduced. In November, more cuts were made to processing payments, and and handling fees were eliminated entirely.1 This drastic decrease in income caused many redemption centers to close.

The 2010 Assembly Bill 7 was intended to restore the Beverage Container Recycling Fund to working order. It was enacted as an urgency measure on March 8, and most of the provisions are only effective for a few years.

The most relevant provisions of the bill are as follows:

• Effective February 1, 2010 through June 30, 2012, Distributors are required to make CRV payments 2 months after sale of a beverage (the previous requirement allowed 3 months).
• Requres all the funding that was reduced in January through June 2009 to be paid back to the entities that suffered the cuts.
• Protects the money in the fund from being used, loaned, or transferred for any purpose other than those originally described in the law.
• For the 2009–10 fiscal year only, the eight million two hundred fifty thousand dollars ($8,250,000) is appropriated to the
  California Conservation Corps.

More information about the bill can be found in the Department of Resources Recycling and Recovery notice, "AB 7 (8X) Implementation and Update on Proportional Reduction Payments" [PDF,312kb] issued on March 11, 2010.

The California Legislative Analyst’s Office (LAO) produced a report on March 18, 2010, summarizing the state's deposit system and the events leading to the funding shortfall. The report also offered suggestions for additional actions to bring the fund back to solvency. The 2010-11 Budget: Funding and Policy Options for the Beverage Container Recycling Program [PDF,419kb]

Progress

January 15, 2010: Introduced

February 4, 2010: Passed third reading and sent to Senate

February 17, 2010: Amended in Senate

February 18, 2010: Urgency clause adopted; sent to Assembly

February 25, 2010: Enrolled and sent to governor

March 8, 2010: Approved by governor

Footnotes

1. Source: California Department of Conservation. " Beverage Container Recycling: Proportional Reduction in Payments" http://www.calrecycle.ca.gov/BevContainer/Payments/Reduction/default.htm

Details

Senate Bill 55

In addition to the changes regarding vegetable juice and container types, this bill also specifies changes to the administrative aspects of the deposit system.

The current law requires reporting of redemption rates for various categories of beverage; the new bill eliminates that requirement.

The government is required to pay cities and counties a certain amount of money from the state fund to finance waste reduction programs. The bill would increase this amount.

After several amendments, the bill was stripped down to only the parts having to do with reporting of redemption rates.

Senate Bill 402

SB 402 would strengthen California's Bottle Bill and balance the Bottle Bill Fund by ending program exemptions and decreasing the 10 cent CRV threshold to 20 ounces from 24 ounces, ending the exemption given to non-bottle-and-can beverage containers, and other measures.

According to Californians Against Waste, the bill offers a number of benefits to California:

California's successful Beverage Container Recycling Program is under threat by significant cuts to core recycling programs, such as payments for supermarket-based recycling, payments for curbside recycling and payments to conservation corps recycling. Due to the imbalance, the Department of Conservation was forced to: cut $131 million in funding for local governments, local conservation corps, curbside recycling, recycling market development and other performance-based incentives for recycling; and Increase beverage industry ‘processing fee’ costs by roughly $75 million. Additionally, some 600 California grocery stores are currently unserved by recycling centers, and without relief, they will be obligated to take containers inside their stores.

SB 402 will bring the Beverage Container Recycling Fund back into balance while strengthening recycling.  Specifically, SB 402 will:

• Expand the scope of beverage containers covered by the program to include all container types for existing beverages, regardless of size or material type.
• Accelerate the timeframe for beverage distributors to make CRV payments from 90 to 60 days in order to better align with CRV ‘pay-out’ timeframe (20 days).
• Move the existing 10 cent CRV threshold from containers 24 ounces and larger to containers 20 ounces and larger.
• Reduce, suspend and eliminate non-core program expenditures by $36 million.
• Maintain essential funding for ‘core program’ expenditures

In addition to the changes in covered beverages and container types, administrative changes that will have little effect on the general public are also part of the bill. They include the following:

• It requires distributors to make redemption payments into the Recycling Fund two months after sale of a beverage (the current deadline is 3 months)
• It also makes changes to the accepted uses for money left over (unclaimed deposits) in the Recycling Fund.
• The bill includes incentives to encourage the establishment of recycling centers in underserved areas

Governor Arnold Schwarzenegger vetoed Senate Bill 402 on October 11, citing numerous issues, including hardship on consumers and the fact that many of the container types to be added are not recyclable, concluding that the bill was not a good long-term solution to the problems facing California's deposit system.

To alleviate some of the problems, the governor ordered that one of the provisions of the bill be put into effect, requiring distributors to make payments into the Beverage Container Recycling Fund every two months.

Progress

SB 55

January 15, 2009: Introduced. Read first time. To Com. on RLS. for assignment.

January 29, 2009: Referred to Committee on Environmental Quality

April 22, 2009: Read second time. Amended. Re-referred to Com. on APPR.

May 11, 2009: Hearing scheduled

May 13, 2009: Amended to remove provisions that would add juice beverages

May 20, 2009: Amended

May 28, 2009: Passed 3rd reading in Senate. Sent to Assembly

Jun 18, 2009: Sent to Committee on Natural Resources

July 7, 2009: Re-referred to Committee on Appropriations.

SB 402

February 25, 2009: Introduced and referred To Com. on RLS. for assignment.

March 12, 2009: Referred To Coms. on REV. & TAX. and RLS

April 28, 2009: Amended. Re-referred to Com. on RLS.

May 7, 2009: Re-referred to Com. on APPR.

May 28, 2009: Passed committee, Read second time.

June 1, 2009: Passed Senate and send To Assembly.

June 22, 2009: Referred to Assembly Com. on REV. & TAX.

July 7, 2009: Re-referred to Com. on APPR

August 31, 2009: Passed committee, Read second time.

Sept. 4, 2009: Read third time. Amended. Re-referred to Com. On NAT. RES.

September 11, 2009: Passed Assembly and referred to Senate. Passed Senate.

October 11, 2009: Vetoed by governor

 

Contacts

Californians Against Waste
921 11th Street, Suite 420
Sacramento, CA 95814
Phone: 916-443-5422

 

 

Details

The 2008 Container Recycling and Litter Reduction Act provides for some administrative changes. For example, the current law specifies that when the redemption rate for any one type of beverage container falls below 65%, the act provides for an increased refund value. The revised bill would remove that requirement and all requirements for reporting redemption rates. It also eliminates processing fees for 2009 and 2010 as long as the balance of the Container Recycling Fund remains above $150,000,000. Other changes are specified about the management of funds.

The most significant change to the law for consumers, however, is that the bill would expand the CRV to cover all plastic bottles, including those not containing beverages. It also expands the containers covered to all sealed beverage containers, eliminating the current law's provision that excludes aseptic cartons.

Progress

February 22, 2008: Introduced in Senate and referred to Comm. on RLS

March 6, 2008: Referred to Comm. on E.Q.

April 21, 2008: Read second time. Amended. Re-referred to Com. on APPR.

May 12, 2008: Set, first hearing. Failed passage in committee. (Ayes 6. Noes
7. Page 3767.) Reconsideration granted.

May 29, 2008: Read third time. Passed. (Ayes 21. Noes 18. Page 4007.) Sent to Assembly and read in Assembly

June 5, 2008: Referred to Committee on Natural Resources

June 17, 2008: Re-referred to Committee on Appropriations