BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1001
                                                                  Page  1

          Date of Hearing:   May 24, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 1001 (Gordon) - As Amended:  May 8, 2013 

          Policy Committee:                              Natural  
          ResourcesVote:6-3

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill makes specified changes to the administration of the  
          California Beverage Container Recycling and Litter Reduction Act  
          (bottle bill).  This bill also expands beverage container  
          recycling by requiring distributors of specified beverage  
          containers currently not included in the bottle bill program to  
          either establish a product stewardship program or participate in  
          the bottle bill program.  

           FISCAL EFFECT  

          1)Increased revenues to the BCRF (Beverage Container Recycling  
            Fund) of approximately $92 due to the expansion.

          2)Costs in the range of $40 to $60 million to CalRecycle to  
            administer and enforce the expanded bottle bill and  
            stewardship programs.  

          3)Unknown potential cost savings for program efficiencies.

           COMMENTS  

           1)Purpose and Background.    According to the author, this bill  
            attempts to modernize California's successful 25-year-old  
            bottle bill and bring program income and expenditures into  
            balance.  This bill adds container types currently exempt from  
            the program, such as paperboard, aseptic containers, and large  
            juice containers.   This bill proposes revisions designed to  
            reduce program inefficiencies and administrative costs.  

           2)CalRecycle Efforts.   This bill makes significant changes to  








                                                                  AB 1001
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            the way that handling fees are determined.  CalRecycle and  
            other stakeholders indicate that the current mechanism for  
            determining handling fees results in inequitable payments,  
            especially for the smallest recycling centers.  CalRecycle is  
            in the process of proposing an alternative system for handling  
            fees and has proposed budget trailer bill language to address  
            the issues.

           3)Duplicative Programs.   As currently drafted, the bill  
            establishes duplicative implementation and enforcement  
            requirements resulting in additional costs to CalRecycle.  The  
            author proposes clarifying amendments to reduce the  
            administrative burden and resulting costs.  
             

           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081