BILL ANALYSIS Ó AB 1359 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator S. Joseph Simitian, Chairman 2011-2012 Regular Session BILL NO: AB 1359 AUTHOR: Skinner AMENDED: January 4, 2012 FISCAL: Yes HEARING DATE: March 19, 2012 URGENCY: No CONSULTANT: Peter Cowan SUBJECT : BEVERAGE CONTAINER RECYCLING SUMMARY : Existing law , under the California Beverage Container Recycling and Litter Reduction Act (the Act): 1) Requires the Department of Resources Recycling and Recovery (DRRR) to establish six months reporting periods for redemption rates and recycling rates for specified types of beverage containers. And, requires DRRR to within 130 days of each reporting period, determine redemption rates and recycling rates for those beverage containers and issue a report on those determinations. (Public Resources Code §14551). 2)Requires DRRR to calculate and collect a processing fee for each beverage container with a specified scrap value. Beverage manufacturers are required to pay DRRR the applicable processing fee for each container sold or transferred to a distributor or dealer within 40 days of the sale, but allows a beverage manufacturer that meets certain conditions and displays a pattern of operation in compliance with the Act, to the satisfaction of DRRR, to make a single annual payment of processing fees. (§14575). AB 1359 Page 2 3) Requires a fiberglass manufacturer to ensure that the annual tonnage of fiberglass manufactured or sold in the state by that manufacturer contain at least 30% cullet, unless DRRR makes a specified determination. (§§19510-19512). This bill : 1) Deletes the definition of "redemption rate" and provisions that require the establishment of reporting periods and calculations for redemption rates for beverage containers. (§§14523.5 & 14551). 2) Deletes obsolete conditions for the annual payment of processing fees by beverage manufactures. (§14575). 3) Makes technical changes to the fiberglass 30% cullet requirement and deletes obsolete provisions. (§§19510-19512). 4) Corrects references, deletes obsolete provisions, and makes other conforming changes. COMMENTS : 1) Purpose of Bill . According to the author AB 1359 "helps streamline Recycling & Litter Reduction Act. ÝBy deleting] the provisions in the Act that establish reporting periods and calculations for beverage container redemption rates." 2) Background . The requirement for calculating both recycling and redemption rates for aluminum, glass, plastic, and other container materials has been in statute for years. Recycling rates measure only containers subject to the Act, and redemption rates have calculations that additionally include containers not subject to the Act. The redemption rate was used in the past as a trigger for higher fees, this trigger was removed by SB 332 (Sher) Chapter 815, Statutes of 1999. The remaining recycling rate calculation is adequate to determine the numbers and types of AB 1359 Page 3 containers returned for recycling. "Cullet" is postconsumer glass from food or beverage containers and other sources. According to a DRRR report for 2010 the average cullet content in fiberglass produced and sold in California exceeds 48%. 3) Related legislation . SB 518 (Simitian) deletes the definition of "redemption rate," removes the reporting period and reporting requirements for redemption rates and makes related clarifying amendments. SB 518 is currently on the Assembly floor. SOURCE : Assemblymember Skinner SUPPORT : None on file OPPOSITION : None on file