BILL ANALYSIS Ó
AB 1001
Page 1
ASSEMBLY THIRD READING
AB 1001 (Gordon)
As Amended May 28, 2013
Majority vote
NATURAL RESOURCES 6-3 APPROPRIATIONS 12-0
-----------------------------------------------------------------
|Ayes:|Chesbro, Garcia, |Ayes:|Gatto, Bocanegra, |
| |Muratsuchi, Skinner, | |Bradford, |
| |Stone, Williams | |Ian Calderon, Campos, |
| | | |Eggman, Gomez, Hall, |
| | | |Ammiano, Pan, Quirk, |
| | | |Weber |
-----------------------------------------------------------------
--------------------------------
|Nays:|Grove, Bigelow, Patterson |
| | |
--------------------------------
SUMMARY : Requires the Department of Resources Recycling and
Recovery (CalRecycle) to waive the requirement that if one or
more certified entities have operated at the same location
within the past five years, the recycling center must
demonstrate to CalRecycle that its operations exhibit a pattern
of compliance with the Bottle Bill and its related regulations
if the new operator has no relationship or affiliation with an
entity that previously operated at the location.
EXISTING LAW : Requires CalRecycle to certify recycling centers
and promulgate regulations establishing a procedure for
certification of recycling centers. Specifies that these
regulations shall include, as a condition for certification,
that if one or more certified entities have operated at the same
location within the past five years, the recycling center must
demonstrate to CalRecycle that its operations exhibit a pattern
of compliance with the Bottle Bill and its related regulations.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill has minor and absorbable costs.
COMMENTS : The Bottle Bill is designed to provide consumers with
a financial incentive for recycling and to make recycling
convenient to consumers. The centerpiece of the Bottle Bill is
the California Redemption Value (CRV). Consumers pay a deposit,
AB 1001
Page 2
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.
California's Bottle Bill has achieved an overall recycling rate
over 80% - higher than any other bottle bill program North
America. According to Californians Against Waste, since its
inception 25 years ago, the program has resulted in the
recycling over more than 11.9 million tons of glass; 3 million
tons of aluminum; and, more than 2 million tons of plastic. In
addition to the diversion from landfill disposal, this recycling
has avoided an estimated 2 million metric tons of carbon dioxide
equivalent greenhouse gas emissions over the last four years.
Recycling in California also results in economic benefits to the
state. The Bottle Bill program has resulted in more than 10,000
jobs and over $100 million in reduced landfill disposal fees.
In some ways, the Bottle Bill program is a victim of its own
success. According to CalRecycle, the Bottle Bill is currently
operating under an approximately $100 million annual structural
deficit, mainly caused by historically high recycling rates,
along with mandated program payments and outstanding General
Fund loans. The structural deficit means that program
expenditures exceed program revenues under the current mandated
expenditure and revenue structure. Potential program reforms
will be required to address the structural deficit of the
Recycling Fund and ensure the integrity and long-term viability
of the program. When the Bottle Bill does not have adequate
funding, CalRecycle is required to "proportionally reduce" many
of the expenditures across the board evenly. These reductions
cause significant hardships for participants in the program.
Fraud also contributes to the structural deficit. In the summer
of 2011, CalRecycle, in coordination with the California
Department of Food and Agriculture (CDFA), initiated a "no-cost"
pilot program to survey and document vehicles importing
out-of-state beverage container material into California through
all 16 CDFA Border Protection Stations. During the first 60
AB 1001
Page 3
calendar days of the pilot program, the information gathered
indicated that over 2,500 vehicles (including 378 rental trucks
filled to capacity) imported out-of-state beverage container
material through these stations. Based on the survey data
referenced above, CalRecycle states that a conservative estimate
of fraud exposure to the Bottle Bill Fund is $7 million
annually.
Historically, the state has had a large number of "unserved
zones," areas of the state in which there is no certified
recycling center making it difficult, and sometimes impossible,
for Californians to redeem the CRV on beverage containers. This
bill will make it easier for existing recycling centers to
operate by waiving the requirement that new operators must
demonstrate that the center has complied with all laws and
regulations over the previous five years when the operator has
no affiliation with the previous operator.
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092
FN: 0000922