California 2008 bill text

Senate Bill 1625

California Container Recycling and Litter Reduction Act

The following text was found at http://www.leginfo.ca.gov/pub/07-08/bill/sen/sb_1601-1650/sb_1625_bill_20080421_amended_sen_v97.html

BILL NUMBER: SB 1625	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 21, 2008
	AMENDED IN SENATE  MARCH 28, 2008

INTRODUCED BY   Senator Corbett
    (   Coauthor:   Senator   Kuehl
  ) 

                        FEBRUARY 22, 2008

   An act to amend Sections 14500, 14501, 14504, 14505, 14512.7,
14551, and 14575 of, to add Sections 14517.1 and 14518.6 to, and to
repeal Section 14523.5 of, the Public Resources Code, relating to
recycling  , and making an appropriation therefor  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1625, as amended, Corbett. Recycling: CRV containers.
   (1) Under existing law, the California Beverage Container
Recycling and Litter Reduction Act, every beverage container sold or
offered for sale in this state is required to have a minimum refund
value. A distributor is required to pay a redemption payment for
every beverage container sold or offered for sale in the state to the
Department of Conservation and the department is required to deposit
those amounts in the California Beverage Container Recycling Fund.
The money in the fund is continuously appropriated to the department
for the payment of refund values and processing fees. A violation of
the act is a crime.
   "Beverage" is defined, for purposes of the act, to include, among
other things, beer and other malt beverages, wine and distilled
spirit coolers, carbonated mineral and soda waters, noncarbonated
fruit drinks, and vegetable juices, in liquid form that are intended
for human consumption, but excludes from that definition vegetable
drinks in beverage containers of more than 16 ounces. The act also
excludes, from the definition of "beverage," any product sold in a
container that is not an aluminum beverage container, a glass
container, a plastic beverage container, or a bimetal container.
   This bill would rename the act as the California Container
Recycling and Litter Reduction Act. The bill would define the term
"plastic bottle" as an individual rigid or semirigid container with a
body consisting primarily of plastic and with a neck narrower than
the body in which one gallon or less of any nonbeverage product is
sold. The bill would define the term "CRV container" to mean a
beverage container or a plastic bottle and would provide that the
term "beverage container," when used in the act, means a CRV
container.
   The bill would also revise the term "beverage" to include nut,
grain, or soy drinks that contain any percentage of juice, and would
delete the requirement that a vegetable drink subject to the act be
sold in a container of 16 ounces or less. The bill would delete the
exclusion from the term "beverage," for a product that is not sold in
the above-specified types of containers. The bill would also make
conforming changes to other definitions, for purposes of the act.
   Since the payments for the plastic beverage containers and other
CRV containers that this bill would make subject to the act would be
deposited in a continuously appropriated fund, the bill would make an
appropriation. The bill would also impose a state-mandated local
program by creating new crimes relating to CRV containers.
   (2) The Department of Conservation is required to establish
reporting periods of 6 months each for redemption rates and recycling
rates for specified types of beverage containers. The act also
requires the department to determine the redemption rates and
recycling rates for those beverage containers for each reporting
period and to issue a report on those determinations. The act defines
various words for purposes of those provisions, including
"redemption rate." The act also makes various findings and
declarations, including a declaration that, when the redemption rate
for any one type of beverage container falls below 65%, the act
provides for an increased refund value.
   This bill would delete the provisions that require the department
to establish reporting periods for redemption rates and that require
the department to determine redemption rates for specified types of
beverage containers. The bill also would delete the definition of
redemption rate.
   (3) The existing act requires the department to calculate a
processing fee and a processing payment for each beverage container
with a specified scrap value. The processing fee is required to be
paid by beverage manufacturers for each beverage container sold or
transferred to a dealer. Existing law requires the department to pay
processing payments for redeemed containers to processors, for each
type of beverage container, in a specified manner. The department is
required to reduce the processing fee for calendar year 2007 to zero
for a container that has a recycling rate equal to, or greater than,
40%.
   This bill would instead require the department to suspend the
requirement to pay the processing fee for any container type with a
certain recycling rate for calendar years 2009 and 2010 if the
balance of the fund is more than $150,000,000.
   (4) The bill would prohibit the department from expending any
funds collected pursuant to the California Beverage Container
Recycling and Litter Reduction Act that were collected or payable on
or before January 1, 2009, for a beverage container, for making any
refund value, processing payment, handling fee, or other expenditures
related to a CRV container that was not subject to the act on
January 1, 2007.
   (5) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) California has demonstrated a more than 20-year commitment to
reducing and recycling materials that would otherwise become waste.
   (b) California's commitment to waste reduction and recycling has
demonstrated itself in the development and implementation of a
comprehensive waste reduction and recycling policy that has succeeded
in a 50 percent diversion of solid waste from landfills.
   (c) California's commitment has further demonstrated itself in the
development and implementation of the nation's most expansive and
cost effective beverage container recycling system that has succeeded
in recycling 60 percent of beverage containers generated.
   (d) Despite the commitment and efforts of the public, local
agencies, and the state  ,  to reduce waste and
increase recycling, the lack of incentives and opportunities for the
recycling of most plastic bottles has resulted in a recycling
failure.
   (e) Studies by the California Integrated Waste Management Board
(CIWMB) and the United States Environmental Protection Agency reveal
that each year California generates more than 13 billion plastic
bottles and disposes of more than 315,000 tons of plastic bottle
waste.
   (f) A recent study by the CIWMB further revealed that while 96
percent of the plastic bottles not currently covered by the state's
container recycling law are made from readily recyclable and
marketable polyethylene terephthalate (PET) and high density
polyethylene (HDPE) plastic, less than 12 percent of these plastic
bottles are currently recycled.
   (g) Relying exclusively on California's curbside recycling
infrastructure to collect the more than six billion non-California
Refund Value (CRV) plastic bottles littered and landfilled in
California annually has proven unsuccessful and even moderate
success, 50 percent recycling, if it were possible, would cost local
agencies and ratepayers in excess of thirty-five million dollars
($35,000,000) annually in higher collection and processing costs.
   (h) Compounding the problem of plastic litter and waste, the
California Ocean Protection Council (OPC) has determined that marine
debris poses a serious threat to California's marine environment and
ocean-based economies, and that 60 to 80 percent, inclusive, of all
marine debris and 90 percent of all floating debris is plastic.
   (i) To help reduce the problem of plastic marine debris, the OPC
in February unanimously adopted a resolution stating in part: "The
state should look closely at extending the CRV or similar Extended
Producer Responsibility programs to include other plastics commonly
found in marine debris."
   (j) California's 20 years of experience demonstrates that
extending the financial incentives and convenient return
opportunities of the state's successful container recycling and
litter reduction law to all plastic bottles regardless of content
represents the single most expeditious and cost-effective means of
reducing and recycling the more than six billion non-CRV plastic
bottles that are littered and landfilled in California annually.
  SEC. 2.  Section 14500 of the Public Resources Code is amended to
read:
   14500.  This division shall be known and may be cited as the
California Container Recycling and Litter Reduction Act.
  SEC. 3.   Section 14501 of the Public Resources Code is amended to
read:
   14501.  The Legislature finds and declares as follows:
   (a) Experience in this state and others demonstrates that
financial incentives and convenient return systems ensure the
efficient and large-scale recycling of  beverage 
containers. Accordingly, it is the intent of the Legislature to
encourage increased, and more convenient,  beverage 
container redemption opportunities for all consumers. These
redemption opportunities shall consist of dealer and other shopping
center locations, independent and industry operated recycling
centers, curbside programs, nonprofit dropoff programs, and other
recycling systems that assure all consumers, in every region of the
state, the opportunity to return  beverage 
containers conveniently, efficiently, and economically.
   (b) California grocery, beer, soft drink, container manufacturing,
labor, agricultural, consumer, environmental, government, citizen,
recreational, taxpayer, and recycling groups have joined together in
calling for an innovative program to generate large-scale redemption
and recycling of  beverage  containers.
   (c) This division establishes a beverage container recycling goal
of 80 percent.
   (d) It is the intent of the Legislature to ensure that every
container type proves its own recyclability.
   (e) It is the intent of the Legislature to make redemption and
recycling convenient to consumers, and the Legislature hereby urges
cities and counties, when exercising their zoning authority, to act
favorably on the siting of multimaterial recycling centers, reverse
vending machines, mobile recycling units, or other types of recycling
opportunities, as necessary for consumer convenience, and the
overall success of litter abatement and  beverage 
container recycling in the state.
   (f) The purpose of this division is to create and maintain a
marketplace where it is profitable to establish sufficient recycling
centers and locations to provide consumers with convenient recycling
opportunities through the establishment of minimum refund values and
processing fees and, through the proper application of these
elements, to enhance the profitability of recycling centers,
recycling locations, and other  beverage  container
recycling programs.
   (g) The responsibility to provide convenient, efficient, and
economical redemption opportunities rests jointly with manufacturers,
distributors, dealers, recyclers, processors, and the Department of
Conservation.
   (h) It is the intent of the Legislature, in enacting this
division, that all empty  beverage  containers
redeemed shall be recycled, and that the responsibilities and
regulations of the department shall be determined and implemented in
a manner which favors the recycling of redeemed containers, as
opposed to their disposal.
   (i) Nothing in this division shall be interpreted as affecting the
current business practices of scrap dealers or recycling centers,
except that, to the extent they function as a recycling center or
processor, they shall do so in accordance with this division.
   (j) The program established by this division will contribute
significantly to the reduction of the  beverage 
container component of litter in this state.
  SEC. 4.  Section 14504 of the Public Resources Code is amended to
read:
   14504.  (a) Except as provided in subdivision (b), "beverage"
means any of the following products if those products are in liquid,
ready-to-drink form, and are intended for human consumption:
   (1) Beer and other malt beverages.
   (2) Wine and distilled spirit coolers.
   (3) Carbonated water, including soda and carbonated mineral water.

   (4) Noncarbonated water, including noncarbonated mineral water.
   (5) Carbonated soft drinks.
   (6) Noncarbonated soft drinks and "sport" drinks.
   (7) Except as provided in paragraph (3) of subdivision (b),
vegetable, nut, grain, soy  ,  or noncarbonated fruit drinks
that contain any percentage of juice.
   (8) Coffee and tea drinks.
   (9) Carbonated fruit drinks.
   (b) "Beverage" does not include any of the following:
   (1) Wine, or wine from which alcohol has been removed, in whole or
in part, whether or not sparkling or carbonated.
   (2) Milk, medical food, or infant formula.
   (3) One hundred percent fruit juice in containers that are 46
ounces or more in volume.
   (c) For purposes of this section, the following definitions shall
apply:
   (1) "Infant formula" means any liquid food described or sold as an
alternative for human milk for the feeding of infants.
   (2) (A) "Medical food" means a food or beverage that is formulated
to be consumed, or administered enterally under the supervision of a
physician, and that is intended for specific dietary management of
diseases or health conditions for which distinctive nutritional
requirements, based on recognized scientific principles, are
established by medical evaluation.
   (B) A "medical food" is a specially formulated and processed
product, for the partial or exclusive feeding of a patient by means
of oral intake or enteral feeding by tube, and is not a naturally
occurring foodstuff used in its natural state.
   (C) "Medical food" includes any product that meets the definition
of "medical food" in the federal Food, Drug, and Cosmetic Act (21
U.S.C. Sec. 360ee (b)(3)).
   (3) "Noncarbonated soft drink" means a nonalcoholic, noncarbonated
naturally or artificially flavored water containing sugar or
sweetener or trace amounts of various elements from both natural and
synthetic sources.
  SEC. 5.  Section 14505 of the Public Resources Code is amended to
read:
   14505.  (a) "Beverage container" means the individual, separate
bottle, can, jar, carton, or other receptacle, however denominated,
in which a beverage is sold, and which is constructed of metal,
glass, or plastic, or other material, or any combination of these
materials. "Beverage container" does not include cups or other
similar open or loosely sealed receptacles.
   (b) "California Refund Value container" or "CRV container" means a
beverage container or a plastic bottle, as defined in Section
14517.1.
   (c) Except as provided in subdivision (a), whenever the term
"beverage container" is used in this division, it shall be deemed to
mean a CRV container.
   (d) Whenever the term "distributor" is used in this division, it
shall be deemed to mean a CRV container distributor.
   (e) Whenever the term "beverage manufacturer" is used in this
division, it shall be deemed to mean a CRV container manufacturer.
  SEC. 6.  Section 14512.7 of the Public Resources Code is amended to
read:
   14512.7.  "Fund" means the California Container Recycling Fund
established pursuant to subdivision (a) of Section 14580.
  SEC. 7.  Section 14517.1 is added to the Public Resources Code, to
read:
   14517.1.  (a) "Plastic bottle" means an individual rigid or
semirigid container with a body consisting primarily of plastic and
with a neck narrower than the body in which one gallon or less of a
nonbeverage product is sold.
   (b) The department may develop, maintain, and regularly update a
list of products and containers that meet the definition of "plastic
bottle" in this section.
   (c) "Plastic bottle" does not mean a container for a beverage, as
defined in Section 14504, or a product expressly excluded from the
definition of beverage pursuant to subdivision (b) of Section 14504.
   (d) "Plastic bottle" does not mean a container  for any
toxic or hazardous product   that contains a toxic or
hazardous product that is regulated by the Federal Insecticide,
Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.)  .
  SEC. 8.  Section 14518.6 is added to the Public Resources Code, to
read:
   14518.6.  "Product manufacturer" means a person who bottles or
otherwise fills a plastic bottle or imports a filled plastic bottle,
for sale to a distributor, dealer, or consumer.
  SEC. 9.   Section 14523.5 of the Public Resources Code is repealed.

  SEC. 10.  Section 14551 of the Public Resources Code is amended to
read:
   14551.  (a) The department shall establish reporting periods for
the reporting of recycling rates. Each reporting period shall be six
months. The department shall determine all of the following for each
reporting period and shall issue a report on its determinations,
within 130 days of the end of each reporting period:
   (1) Sales of beverages in aluminum beverage containers, bimetal
beverage containers, glass beverage containers, plastic beverage
containers, and other beverage containers in this state, including
refillable beverage containers.
   (2) Returns for recycling, and returns not for recycling, of empty
aluminum beverage containers, bimetal beverage containers, glass
beverage containers, plastic beverage containers, and other beverage
containers in this state, including refillable beverage containers
returned to distributors pursuant to Section 14572.5. These numbers
shall be calculated using the average current weights of beverage
containers, as determined and reported by the department.
   (3) An aluminum beverage container recycling rate, the numerator
of which shall be the number of empty aluminum beverage containers
returned for recycling, including refillable aluminum beverage
containers, and the denominator of which shall be the number of
aluminum beverage containers sold in this state.
   (4) A bimetal beverage container recycling rate, the numerator of
which shall be the number of empty bimetal containers returned for
recycling, including refillable bimetal beverage containers, and the
denominator of which shall be the number of bimetal beverage
containers sold in this state.
   (5) A glass beverage container recycling rate, the numerator of
which shall be the number of empty glass beverage containers returned
for recycling, including refillable glass beverage containers, and
the denominator of which shall be the number of glass beverage
containers sold in this state.
   (6) A plastic beverage container recycling rate, the numerator of
which shall be the number of empty plastic beverage containers
returned for recycling, including refillable plastic beverage
containers, and the denominator of which shall be the number of
plastic beverage containers sold in this state.
   (7) A recycling rate for other beverage containers, the numerator
of which shall be the number of empty beverage containers other than
those containers specified in paragraphs (1) to (6), inclusive,
returned for recycling, and the denominator of which shall be the
number of beverage containers, other than those containers specified
in paragraphs (1) to (6), inclusive, sold in this state.
   (8) The department may define categories of other beverage
containers, and report a recycling rate for each of those categories
of other beverage containers.
   (9) The volumes of materials collected from certified recycling
centers, by city or county, as requested by the city or county, if
the reporting is consistent with the procedures established pursuant
to Section 14554 to protect proprietary information.
   (b) The department shall determine the manner of collecting the
information for the reports specified in subdivision (a), including
establishing procedures, to protect any proprietary information
concerning the sales and purchases.
  SEC. 11.  Section 14575 of the Public Resources Code is amended to
read:
   14575.  (a) If any type of empty CRV container with a refund value
established pursuant to Section 14560 has a scrap value less than
the cost of recycling, the department shall, on January 1, 2000, and
on or before January 1 annually thereafter, establish a processing
fee and a processing payment for the container by the type of the
material of the container.
   (b) The processing payment shall be at least equal to the
difference between the scrap value offered to a statistically
significant sample of recyclers by willing purchasers, and except for
the initial calculation made pursuant to subdivision (d), the sum of
both of the following:
   (1) The actual cost for certified recycling centers, excluding
centers receiving a handling fee, of receiving, handling, storing,
transporting, and maintaining equipment for each container sold for
recycling or, only if the container is not recyclable, the actual
cost of disposal, calculated pursuant to subdivision (c). The
department shall determine the statewide weighted average cost to
recycle each container type, which shall serve as the actual
recycling costs for purposes of paragraph (2) of subdivision (c), by
conducting a survey of the costs of a statistically significant
sample of certified recycling centers, excluding those recycling
centers receiving a handling fee, for receiving, handling, storing,
transporting, and maintaining equipment.
   (2) A reasonable financial return for recycling centers.
   (c) The department shall base the processing payment pursuant to
this section upon either of the following:
   (1) The department shall use the average scrap values paid to
recyclers between October 1, 2001, and September 30, 2002, for the
2003 calculation and the same 12-month period directly preceding the
year in which the processing fee is calculated for any subsequent
calculation.
   (2) For calculating processing payments that will be in effect on
and after January 1, 2004, the department shall determine the actual
costs for certified recycling centers, every second year, pursuant to
paragraph (1) of subdivision (b). The department shall adjust the
recycling costs annually to reflect changes in the cost of living, as
measured by the Bureau of Labor Statistics of the United States
Department of Labor or a successor agency of the United States
government.
   (d) Except as specified in subdivision (g), the actual processing
fee paid by a beverage manufacturer shall equal 65 percent of the
processing payment calculated pursuant to subdivision (b).
   (e) The department, consistent with Section 14581 and subject to
the availability of funds, shall reduce the processing fee paid by
beverage manufacturers by expending funds in each material processing
fee account, in the following manner:
   (1) On January 1, 2005, and annually thereafter, the processing
fee shall equal the following amounts:
   (A) Ten percent of the processing payment for a container type
with a recycling rate equal to or greater than 75 percent.
   (B) Eleven percent of the processing payment for a container type
with a recycling rate equal to or greater than 65 percent, but less
than 75 percent.
   (C) Twelve percent of the processing payment for a container type
with a recycling rate equal to or greater than 60 percent, but less
than 65 percent.
   (D) Thirteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 55 percent, but
less than 60 percent.
   (E) Fourteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 50 percent, but
less than 55 percent.
   (F) Fifteen percent of the processing payment for a container type
with a recycling rate equal to or greater than 45 percent, but less
than 50 percent.
   (G) Eighteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 40 percent, but
less than 45 percent.
   (H) Twenty percent of the processing payment for a container type
with a recycling rate equal to or greater than 30 percent, but less
than 40 percent.
   (I) Sixty-five percent of the processing payment for a container
type with a recycling rate less than 30 percent.
   (2) Notwithstanding this section, for calendar years 2009 and 2010
only, if the balance of the fund that is subject to expenditure
pursuant to Section 14581 on September 30, 2007, and on September 30
of each year thereafter, is more than one hundred fifty million
dollars ($150,000,000) the requirement to pay a processing fee for
any container type shall be suspended during the subsequent calendar
year (January 1 to December 31) for each container type with a
recycling rate as follows:
   (A) Fifty-five percent for the 12-month period ending June 30,
2008, for the suspension in 2009.
   (B) Sixty percent for the 12-month period ending June 30, 2009,
for the suspension in 2010.
   (C) For any container type with a recycling rate of less than the
required thresholds, the processing fee payment shall be in the
amount provided in paragraph (1).
   (3) The department shall calculate the recycling rate for purposes
of paragraphs (1) and (2) based on the 12-month period ending on
June 30 that directly precedes the date of the January 1 processing
fee determination.
   (f) Not more than once every three months, the department may make
an adjustment in the amount of the processing payment established
pursuant to this section notwithstanding any change in the amount of
the processing fee established pursuant to this section, for any
beverage container, if the department makes the following
determinations:
   (1) The statewide scrap value paid by processors for the material
type for the most recent available 12-month period directly preceding
the quarter in which the processing payment is to be adjusted is 5
percent more or 5 percent less than the average scrap value used as
the basis for the processing payment currently in effect.
   (2) Funds are available in the processing fee account for the
material type.
   (3) Adjusting the processing payment is necessary to further the
objectives of this division.
   (g) (1) Except as provided in paragraphs (2) and (3), every
beverage manufacturer shall pay to the department the applicable
processing fee for each container sold or transferred to a
distributor or dealer within 40 days of the sale in the form and in
the manner which the department may prescribe.
   (2) (A) Notwithstanding Section 14506, with respect to the payment
of processing fees for beer and other malt beverages manufactured
outside the state, the beverage manufacturer shall be deemed to be
the person or entity named on the certificate of compliance issued
pursuant to Section 23671 of the Business and Professions Code. If
the department is unable to collect the processing fee from the
person or entity named on the certificate of compliance, the
department shall give written notice by certified mail, return
receipt requested, to that person or entity. The notice shall state
that the processing fee shall be remitted in full within 30 days of
issuance of the notice or the person or entity shall not be permitted
to offer that beverage brand for sale within the state. If the
person or entity fails to remit the processing fee within 30 days of
issuance of the notice, the department shall notify the Department of
Alcoholic Beverage Control that the certificate holder has failed to
comply, and the Department of Alcoholic Beverage Control shall
prohibit the offering for sale of that beverage brand within the
state.
   (B) The department shall enter into a contract with the Department
of Alcoholic Beverage Control, pursuant to Section 14536.5,
concerning the implementation of this paragraph, which shall include
a provision reimbursing the Department of Alcoholic Beverage Control
for its costs incurred in implementing this paragraph.
   (3) (A) Notwithstanding paragraph (1), if a beverage manufacturer
displays a pattern of operation in compliance with this division and
the regulations adopted pursuant to this division, to the
satisfaction of the department, the beverage manufacturer may make a
single annual payment of processing fees, if the beverage
manufacturer meets either of the following conditions:
   (i) If the redemption payment and refund value is not increased
pursuant to paragraph (3) of subdivision (a) of Section 14560, the
beverage manufacturer's projected processing fees for a calendar year
total less than ten thousand dollars ($10,000).
   (ii) If the redemption payment and refund value is increased
pursuant to paragraph (3) of subdivision (a) of Section 14560, the
beverage manufacturer's projected processing fees for a calendar year
total less than fifteen thousand dollars ($15,000).
   (B) An annual processing fee payment made pursuant to this
paragraph is due and payable on or before February 1 for every
beverage container sold or transferred by the beverage manufacturer
to a distributor or dealer in the previous calendar year.
   (C) A manufacturer shall notify the department of its intent to
make an annual processing fee payment pursuant to this paragraph on
or before January 31 of the calendar year for which the payment will
be due.
   (4) The department shall pay the processing payments on redeemed
containers to processors, in the same manner as it pays refund values
pursuant to Sections 14573 and 14573.5. The processor shall pay the
recycling center the entire processing payment representing the
actual costs and financial return incurred by the recycling center,
as specified in subdivision (b).
   (h) When assessing processing fees pursuant to subdivision (a),
the department shall assess the processing fee on each container
sold, as provided in subdivisions  (e) and (f)  
(d) and (e)  , by the type of material of the container,
assuming that every container sold will be redeemed for recycling,
whether or not the container is actually recycled.
   (i) The container manufacturer, or a designated agent, shall pay
to, or credit, the account of the beverage manufacturer in an amount
equal to the processing fee.
   (j) If, at the end of any calendar year for which glass recycling
rates equal or exceed 45 percent and sufficient surplus funds remain
in the glass processing fee account to make the reduction pursuant to
this subdivision or if, at the end of any calendar year for which
PET recycling rates equal or exceed 45 percent and sufficient surplus
funds remain in the PET processing fee account to make the reduction
pursuant to this subdivision, the department shall use these surplus
funds in the respective processing fee accounts in the following
calendar year to reduce the amount of the processing fee that would
otherwise be due from glass or PET beverage manufacturers pursuant to
this subdivision.
   (1) The department shall reduce the glass or PET processing fee
amount pursuant to this subdivision in addition to any reduction for
which the glass or PET beverage container qualifies under subdivision
 (f)   (e)  .
   (2) The department shall determine the processing fee reduction by
dividing two million dollars ($2,000,000) from each processing fee
account by an estimate of the number of containers sold or
transferred to a distributor during the previous calendar year, based
upon the latest available data.
  SEC. 12.  The Department of Conservation shall not expend any funds
collected pursuant to Division 12.1 (commencing with Section 14500)
of the Public Resources Code that were collected or payable 
on or before   prior to  January 1, 2009 for a
beverage container, as defined in Section 14505, as that section read
 on   immediately preceding  January 1,
2009, for making any refund value, processing payment, handling fee,
or any program or other expenditure related to a CRV container that
was not subject to the California Beverage Recycling and Litter
Reduction Act  on January 1, 2007   immediately
preceding January 1, 2009  .
  SEC. 13.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
      ____ CORRECTIONS  Text--Page 15.
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Updated June 6, 2008