BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 1149 (Gordon) Hearing Date: 08/25/2011 Amended: As introduced Consultant: Brendan McCarthy Policy Vote: EQ 5-0 _________________________________________________________________ ____ BILL SUMMARY: AB 1149 extends the sunset of the plastic market development program, within the Bottle Bill program, to 2017. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Administering grants About $450 per year Special * Grants $10,000 per year Special * * Beverage Container Recycling Fund. _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE. Under current law (referred to as the "Bottle Bill") California consumers pay a deposit payment every time they purchase a covered bottle or can. The funds collected are used to provide a California Redemption Value payment when a bottle or can is recycled. Because only about 80 percent of covered bottle and cans are recycled, excess revenues are used to support collection and recycling of bottles and cans through payments to processors and collectors and other programs. One element of the Bottle Bill program is the plastic market development program, under which up to $10 million per year may be provided in market development payments of up to $150 per ton to recyclers and manufacturers that make use of recycled plastic. The Plastic Market Development Program sunsets on January 1, 2012. AB 1149 extends the sunset of the Plastic Market Development Program until January 1, 2017. The bill also specifies criteria to be used by the Department of Resources Recycling and Recovery > (>) Page 1 when setting the level of the market development payments. By extending the sunset of the program, the bill will increase Bottle Bill program costs by $10 million per year, plus administrative costs of about $450,000 per year which are paid from the Beverage Container Recycling Fund, but are not included in the $10 million provided for market development payments.