BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 712|
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                                 THIRD READING


          Bill No:  AB 712
          Author:   Williams (D), et al.
          Amended:  7/11/11 in Senate
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  5-0, 6/20/11
          AYES:  Simitian, Strickland, Hancock, Kehoe, Lowenthal
          NO VOTE RECORDED:  Blakeslee, Pavley
           
          ASSEMBLY FLOOR  :  72-0, 5/5/11 - See last page for vote


           SUBJECT  :    Recycling:  beverage containers

           SOURCE  :     California Grocers Association


           DIGEST  :    This bill prohibits, on and after July 1, 2012, 
          the Department of Resources Recycling and Recovery from 
          providing the Beverage Container Recycling and Litter 
          Reduction Act funds to a city, county, or city and county 
          that prevents the siting or operation of a certified 
          recycling center at a supermarket site.

           ANALYSIS  :    Existing law, the Beverage Container Recycling 
          and Litter Reduction Act (Bottle Bill): 

          1. Establishes refund value and redemption payments for 
             beverage containers. 

          2. Requires a distributor to pay a redemption payment for 
             every beverage container sold or offered for sale in the 
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             state to Department of Resources Recycling and Recovery 
             (CalRecycle), which is required to deposit those amounts 
             in the California Beverage Container Recycling Fund 
             (Fund).  The money in the Fund is continuously 
             appropriated for the payment of refund values and 
             processing fees. 

          3. Specifies that every convenience zone must be served by 
             at least one certified recycling center, with specified 
             operating hours.  If a zone is "unserved" by a certified 
             recycling center, existing law requires that the dealer 
             (store) redeem beverage containers from consumers. 

          4. Authorizes funding for specified purposes to increase 
             beverage container recycling, including payments to 
             cities and counties.

           Comments
           
          The Bottle Bill is designed to provide consumers with a 
          financial incentive for recycling and to make recycling 
          convenient to consumers so that the beverage container 
          component of the solid waste stream will decrease.  The 
          centerpiece of the Bottle Bill is the California Redemption 
          Value (CRV).  Consumers pay a deposit, the CRV, on each 
          beverage container they purchase.  Retailers collect the 
          CRV from consumers when they buy beverages.  The dealer 
          retains a small percentage of the deposit for 
          administration and remits the remainder to the distributor, 
          who also retains a small portion for administration before 
          remitting the balance to CalRecycle.  When consumers return 
          their empty beverage containers to a recycler (or donate 
          them to a curbside or other program), the deposit is paid 
          back as a refund. 

          To provide convenient recycling opportunities to consumers, 
          certified recycling centers are located on the site of a 
          supermarket (dealer) and accept beverage containers for 
          recycling and remit the CRV refund to consumers.  There 
          must be one certified recycling center in each convenience 
          zone, which is typically a half-mile radius circle around a 
          dealer.  In order to assist these centers cover their 
          operating costs, the Bottle Bill allocates handling fees.  
          If there is no certified recycler in a convenience zone, 

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          the dealer is responsible for taking back containers. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  7/8/11)

          California Grocers Association (source)
          California Retailers Association

           OPPOSITION  :    (Verified  7/8/11)

          Los Angeles County Solid Waste Management 
            Committee/Integrated Waste Management Task Force

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          there are eight cities that prohibit manned recycling 
          facilities:  Newport Beach, Laguna Hills, Laguna Niguel, 
          Ladera Ranch, Manhattan Beach, Hermosa Beach, Tustin and 
          Vista.  The California Grocers Association provided two 
          specific examples.  The City of Tustin only allows bulk 
          reverse vending or reverse vending machines on retail and 
          commercial lots.  Tustin does not allow a manned facility 
          on a grocers' parking lot.  The City of Hermosa Beach only 
          allows recycling facilities in its heavy commercial zones.  
          Hermosa Beach does not allow recycling centers in retail 
          and commercial, where all of its grocery stores are 
          located.

          According to the author:

            "All supermarkets in California are required to have a 
            recycling center within a specified area around the store 
            (called a 'convenience zone').  If a recycling 
            opportunity does not exist in this zone, the supermarket 
            must take all containers back instore.  It is the case, 
            however, that some local governments have passed or are 
            enforcing policies which prohibit placement of 'manned 
            recycling facilities' largely for aesthetic reasons. This 
            results in forcing a supermarket to take containers back 
            in the store.  As the recycler of last resort, grocers 
            face significant challenges in taking back containers 
            while protecting their customers and employees.  First, a 
            lack of physical space within the grocery store for 

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            processing containers is a significant hurdle for many 
            grocers.  Second, and most importantly, there are 
            substantial health and safety concerns.  Because grocery 
            stores have extremely limited in-store and storage areas, 
            the little space that does exist is generally reserved 
            for food products.  If stores have to process returned 
            containers in-store, they would have nowhere to put 
            containers other than right next to food products.  
            Returned containers have contaminants and pathogens, and 
            food residue in the 'empty' containers tends to attract 
            rodents and pests.  The close proximity of California 
            Redemption Value (CRV) returns to food products causes 
            reasonable concern for food safety both in the customer 
            area of the store as well as the storage area.  If 
            grocers attempted to solve the storage issue by storing 
            the product outside on the loading dock or similar 
            location, the challenge becomes securing the CRV returns 
            from theft so they would not be re-returned.  Even in an 
            outside storage location, the containers continue to have 
            health issues because they still attract rodents and 
            pests while in extremely close proximity to the store.

            "This bill, appropriately, doesn't change a supermarket's 
            responsibility to take containers back in the store if 
            there is no take-back center.  But, local governments 
            shouldn't directly interfere with a supermarket's ability 
            to comply with the law by locating a take-back center on 
            site, outside the store.  To that effect, AB 712 prevents 
            any local government from receiving state grants and 
            recycling funding if they enforce policies that prevent 
            the citing or operation of a recycling center at a 
            supermarket site.  The provisions of AB 712 don't become 
            operative until July 1, 2012."

           ARGUMENTS IN OPPOSITION  :    The Los Angeles County Solid 
          Waste Management Committee/Integrated Waste Management Task 
          Force states:

            "AB 712, if enacted, would prohibit CalRecycle from 
            providing any Beverage Container Recycling and Litter 
            Reduction Act (Bottle Bill) funds to a city, county, or 
            city and county that prevents the siting or operation of 
            a certified recycling center at a supermarket site.  The 
            Bottle Bill specifies that there must be one certified 

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            recycling center in each 'convenience zone,' which is 
            typically a half-mile radius around a 'dealer,' e.g. 
            supermarket, which accepts beverage containers for 
            recycling and remits the CRV refund to consumers.  If 
            there is no certified recycler in a convenience zone, the 
            'dealer' is responsible for taking back containers.

            "This bill proposes to infringe upon local land-use 
            autonomy without any provisions for local conditions and 
            circumstance that may prevent the siting of a recycling 
            center at a supermarket.  Rather than retain funds 
            collected from local residents at the State level that 
            are intended to encourage the collection of additional 
            recyclable beverage containers, the State should be 
            ramping up efforts to develop additional markets for 
            these collected recyclable materials within the State.  
            Additionally, the State should consider the establishment 
            of minimum siting criteria for recycling facilities so 
            that they do not become a nuisance or blight on the 
            community.  Take back recycling facilities currently have 
            very minimal oversight and are not required to report the 
            end markets where the collected materials are sent or the 
            total volume of materials processed, and too often 
            reports have emerged regarding fraud and other violations 
            of existing reporting requirements for these facilities." 
             

          While the Task Force supports the expansion of convenient 
          recycling opportunities for consumers, they are opposed to 
          legislation that infringes upon local land use 
          decision-making authority.


           ASSEMBLY FLOOR  :  72-0, 5/5/11
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Galgiani, 
            Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, 
            Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, 
            Jeffries, Knight, Lara, Logue, Bonnie Lowenthal, Ma, 
            Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, 
            Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, 

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            Silva, Skinner, Smyth, Solorio, Swanson, Valadao, Wagner, 
            Wieckowski, Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Furutani, Garrick, Gorell, Jones, 
            Mansoor, Nielsen, Torres, Vacancy


          DLW:kc  7/12/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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