BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1359|
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                                 THIRD READING


          Bill No:  AB 1359
          Author:   Skinner (D)
          Amended:  1/4/12 in Assembly
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE :  6-0, 3/19/12
          AYES:  Simitian, Blakeslee, Hancock, Kehoe, Lowenthal, 
            Pavley
          NO VOTE RECORDED:  Strickland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  75-0, 1/26/12 (Consent) - See last page 
            for vote


           SUBJECT  :    Solid waste:  beverage containers:  fiberglass

           SOURCE  :     Author


           DIGEST  :    This bill makes numerous technical, but, in some 
          cases, substantive, changes to the state's beverage 
          container recycling program. Most significantly, this bill 
          (1) deletes reference to the "redemption rate" and 
          requirements related to its calculation, and (2) authorizes 
          a beverage manufacturer to make one processing fee payment 
          to the Department of Resources Recycling and Recovery 
          (DRRR), instead of periodic payments, if the manufacturer 
          has displayed a pattern of compliance to DRRR's 
          satisfaction and the processor's projected annual fees are 
          less than $15,000. 
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           ANALYSIS  :    Existing law, under the California Beverage 
          Container Recycling and Litter Reduction Act (Act):

          1. Requires 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 (PRC) Section 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.  
             (PRC Section 14575)

          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.  (PRC 
             Sections 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.  (PRC Sections 14523.5 and 14551)

          2. Deletes obsolete conditions for the annual payment of 
             processing fees by beverage manufacturers.  (PRC Section 
             14575)

          3. Makes technical changes to the fiberglass 30% cullet 
             requirement and deletes obsolete provisions.  (PRC 
             Sections 19510-19512)








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          4. Corrects references, deletes obsolete provisions, and 
             makes other conforming changes. 

           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 
          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%.

           Comments  

           Purpose of the bill  .  According to the author, this bill 
          "helps streamline Recycling & Litter Reduction Act.  ÝBy 
          deleting] the provisions in the Act that establish 
          reporting periods and calculations for beverage container 
          redemption rates."

           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.  

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


           ASSEMBLY FLOOR  :  75-0, 1/26/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 







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            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Dickinson, 
            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, 
            Hagman, Hall, Hayashi, Roger Hernández, Hill, Huber, 
            Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, 
            Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, 
            Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, 
            Perea, V. Manuel Pérez, Portantino, Silva, Skinner, 
            Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, 
            Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Davis, Gorell, Halderman, Harkey, Smyth

          DLW:mw  6/25/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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