BILL ANALYSIS
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UNFINISHED BUSINESS
Bill No: SB 402
Author: Wolk (D)
Amended: 9/11/09
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
ASSEMBLY FLOOR : Not available
SUBJECT : Recycling: beverage containers: redemption
payments
SOURCE : Author
DIGEST : This bill addresses the insolvency in the
California Beverage Container Recycling and Litter
Reduction Act (Bottle Bill) by expanding the California
Beverage Container Recycling Program, closing the loophole
for large juice containers, moving the threshold for the
10-cent California Redemption Value (CRV) from 24 ounces to
20 ounces, accelerating the CRV payment to the Department
of Conservation from 90 to 60 days. This bill also
authorizes the Department of Conservation to reduce the
number of unserved supermarket-based recycling centers.
Assembly Amendments (1) delete the prior version which
dealt with the Franchise Tax Board collections process, (2)
insert language which makes changes to the California
Beverage Container Recycling Program, and (3) add an
urgency clause.
CONTINUED
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ANALYSIS : Existing law, under the California Beverage
Container Recycling and Litter Reduction Act (Act) (Section
14500, et seq. of the Public Resources Code):
1. Requires every beverage container, as defined, sold or
offered for sale in this state to have a minimum refund
value.
2. Requires a distributor to pay a CRV payment for every
beverage container (five cents for less than 24 ounces
and 10 cents for more than 24 ounces) sold or offered
for sale in the state to the Department of Conservation
(DOC) and DOC is required to deposit those amounts in
the California Beverage Container Recycling Fund (Fund).
The money in the Fund is continuously appropriated to
DOC for the payment of refund values and processing
fees.
3. Defines "beverage" 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.
4. Excludes from the definition of "beverage", among other
things, vegetable drinks in beverage containers of more
than 16 ounces, milk, medical food, and any product sold
in a container that is not an aluminum beverage
container, a glass container, a plastic beverage
container, or a bimetal container.
5. Defines "beverage manufacturer" as any person who
bottles, cans, or otherwise fills beverage containers,
or imports filled beverage containers, for sale to
distributors, dealers, or consumers.
6. Defines "processor" as any person, including a scrap
dealer, certified by DOC who purchases empty aluminum
beverage containers, bimetal beverage containers, glass
beverage containers, plastic beverage containers, or any
other beverage containers, including any one or more of
those beverage containers, which have a refund value
established pursuant to this division, from recycling
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centers in this state for recycling, or, if the
container is not recyclable, not for recycling, and who
cancels, or who certifies to DOC the cancellation of,
the refund value of these empty beverage containers by
processing empty beverage containers, in any manner
which DOC may prescribe.
7. Requires distributors to pay the redemption payment not
later than the last day of the third month following the
sale and authorizes a distributor, to elect to make a
single annual payment if the distributor meets specified
conditions and notifies DOC of its intent to make annual
redemption payments.
8. Requires DOC 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.
9. Authorizes funding for specified purposes to increase
beverage container recycling (see
http://www.consrv.ca.gov/DOR/gpi/webcon.pdf for
California Beverage Container Recycling and Litter
Reduction Act flow chart).
This bill:
1. States legislative intent that projects under contract
with DOC be fully completed for the $35 million in
market development grants awarded during the 2008-09
fiscal year for which partial or complete encumbrance of
funds has taken place by September 1, 2009.
2. Regarding the definition of "beverage" effective July 1,
2010:
A. Redefines the term "beverage" to include
vegetable, nut, grain, or soy drinks.
B. Deletes the exclusion from the term "beverage",
for a product that is not sold in aluminum, glass,
plastic, or bimetal container, thus including aseptic
and paperboard type beverage containers.
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C. Exempts beverages in a flexible foil, plastic
pouch, or aseptic container that holds seven fluid
ounces or less.
3. Adds a definition of "paper beverage container" that
means a paperboard carton, gable-top, aseptic,
poly-coated paperboard, or other beverage container made
primarily of paper.
4. Adds a definition of "unserved convenience zone" to mean
a convenience zone where this is not an operating
certified recycling center or other locations that meet
the requirements of the Act.
5. Changes the threshold for the 10-cent CRV payment paid
by the distributor and the refund value from containers
that hold 20 ounces or more.
6. Requires beverage distributors to make the CRV payment
no later than the last day of the second month following
the sale of the beverages instead of the third month.
7. Establishes, for fiscal years 2010 and 2011, the
processing payment for paper beverage containers at $135
per ton and the processing fee equivalent to 35 percent
of $135 per ton.
8. Increases the amount for grant funds to certified
community conservation corps for beverage container
litter reduction programs and recycling programs from
$15 million to $22 million.
9. Clarifies that $20 million in unencumbered funds
currently held by DOC may be expended to close the
shortfall.
10.Adjusts funding in various market development programs
to maximize market development efficiencies and
effectiveness.
11.Suspends, for the 2009-10 fiscal year, expenditures for
grants for beverage container recycling and litter
reduction programs and a statewide public education and
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information campaign aimed at promoting increased
recycling of beverage containers.
12.Provides assistance and incentives to reduce the number
of zones not serviced by a certified recycling center.
13.Deletes obsolete provisions and make conforming changes.
Comments
According to the author's office, current law provides
consumers with a recycling incentive of five cents on most
beverage containers (10 cents on containers 24 ounces and
larger. Over the last two decades, this program has
stimulated recycling levels in the 60-80 percent range.
However, as a result of increased recycling and general
fund loans, there are insufficient funds available in the
Beverage Container Recycling Fund to pay ongoing costs of
the recycling infrastructure. This bill contains
provisions to rectify those issues.
This bill intends to balance program funding and
expenditures by suspending and/or eliminating
outdated/unnecessary program expenditures, closing
container exemption loopholes, increasing recycling
incentives on higher cost/larger containers, and
accelerating the time frame for beverage distributor CRV
payments.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 9/11/09)
Anheuser-Busch Companies, Inc.
CALCC
California Bottled Water Association
California Coastal Coalition
California Refuse Recycling Council
California Small Brewers Association
California State Association of Counties
Cities of Napa and San Jose
City and County of San Francisco Dept. of the Environment
Civicorps Schools
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Conservation Corps
Conservation Corps of Long Beach
Crown Imports
ECO2 Plastic Inc
Ecoplast
eCullet Glass Recycler
Fresno Local Conservation Corps
Heineken USA
LA Conservation Corps
League of California Cities
Merlin Plastics
MillerCoors
NexCycle
Orange County Conservation Corps
Peninsula Packaging Co.
Peninsula Plastics Recycling Inc.
Regional Council of Rural Counties
Sacramento Regional Conservation Corps
San Francisco Conservation Corps
San Gabriel Valley Conservation Corps
San Jose Conservation Corps - Charter School
Sequoia Community Corps
Service Employees International Union
Strategic Materials Inc.
Talco Plastics, Inc.
Tri-CED Community Recycling
Urban Corps - San Diego County
Urban Counties Caucus
Urban Ore
Waste Management
Yuba Sutter Community Conservation Corps
OPPOSITION : (Verified 9/11/09)
California League of Food Processors
California Nevada Soft Drink Association
Grocery Manufactures Association
TSM:mw 9/11/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
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