BILL ANALYSIS
SB 402
Page 1
SENATE THIRD READING
SB 402 (Wolk)
As Amended September 11, 2009
Majority vote
SENATE VOTE :Vote not relevant
NATURAL RESOURCES 8-0
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|Ayes:|Skinner, Gilmore, | | |
| |Brownley, Chesbro, De | | |
| |Leon, Hill, Huffman, | | |
| |Logue | | |
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SUMMARY : Addresses the insolvency in the Bottle Bill by
expanding the program, closing the loophole for large juice
containers, moving the threshold for the 10 cent CRV from 24
ounces to 20 ounces, accelerating the CRV payment to the
Department of Conservation (DOC) from 90 to 60 days; also,
authorizes DOC to reduce the number of unserved
supermarket-based recycling centers.
EXISTING LAW , pursuant to the California Beverage Container
Recycling and Litter Reduction Act (Bottle Bill):
1)Requires every beverage container, as defined, sold or offered
for sale in this state to have a minimum refund value and
requires a distributor to pay a redemption payment for every
beverage container sold or offered for sale in the state to
DOC, which 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.
2)Defines "beverage" to include, among other things, soda, 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. 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
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container, a glass container, a plastic beverage container, or
a bimetal container.
3)Requires DOC to establish reporting periods of six months each
for redemption rates and recycling rates for beverage
containers and requires them to determine and report the
redemption rates and recycling rates for those beverage
containers for each reporting period.
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 2008/2009 fiscal year
for which partial or complete encumbrance of funds has taken
place by September 1, 2009.
2) Regarding the definition of "beverage" effective April 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; and
c) Exempts beverages in a flexible foil, plastic pouch, or
aseptic container that hold than 7 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.
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6) Requires beverage distributors to make the CRV payment no
later than the last day of the 2nd month following the sale
of the beverages instead of the 3rd month.
7) Establishes, for calendar years 2010 and 2011, the processing
payment for paper beverage containers at $135 per ton and the
processing fee equivalent to 35% of $135 per ton.
8) Increases the amount for grants funds to certified community
conservation corps for beverage container litter reduction
programs and recycling programs from $15 million to $19
million.
9) Suspends, for the 2009-10 fiscal year, expenditures for
grants for beverage container recycling and litter reduction
programs and a statewide public education and information
campaign aimed at promoting increased recycling of beverage
containers.
10) Prohibits DOC from reducing expenditures for handling fees
and conservation corps grants for the 2009-10 and 2010-11
fiscal years.
11)Provides assistance and incentives to reduce the number of
zones not serviced by a certified recycling center.
12)Temporarily freezes the processing payments and fees for
glass.
13)States that recyclers will not be penalized if they can not
find markets for the new paperboard containers.
14)Adds a retroactive provision requiring DOC to reimburse costs
of the proportional reduction on January 1, 2010.
15)Extends the implementation date for the new container types
from April 1 to July 1, 2010.
16)Clarifies funding for the conservation corps and protects the
one-time augmentation of $8.25 million provided in this
year's Budget Act from a proportional reduction.
17)Clarifies that distributors are not required to remit the CRV
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to the DOC if they have not yet received the payment.
18)Clarifies that $20 million in unencumbered funds currently
held by the DOC may be expended to close the current
shortfall.
19)Adjusts funding in various market development programs to
maximize market development efficiencies and effectiveness.
20)Deletes obsolete provisions and make conforming changes.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, current law provides
consumers with a recycling incentive of 5 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 provision to rectify those issues.
This bill intends to balance program funding and expenditures by
1) suspending and/or eliminating outdated/unnecessary program
expenditures; 2) closing container exemption loopholes;
increasing recycling incentives on higher cost/larger
containers; and, 3) accelerating the timeframe for beverage
distributor CRV payments.
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092
FN: 0003190