BILL ANALYSIS Ó
AB 1005
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Date of Hearing: January 11, 2016
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
AB 1005
(Gordon) - As Amended January 4, 2016
SUBJECT: California Beverage Container Recycling and Litter
Reduction Act: market development payments
SUMMARY: Extends the sunset for the Plastic Market Development
Payment (PMDP) program from 2017 to 2022.
EXISTING LAW establishes the California Beverage Container
Recycling and Litter Reduction Act (Bottle Bill), which:
1)Requires beverage containers sold in this state to have a
California redemption value (CRV) of five cents for containers
that hold fewer than 24 ounces and 10 cents for containers
that hold 24 ounces or more and requires a distributor to pay
a redemption payment to the Department of Resources Recycling
and Recovery (CalRecycle). Continuously appropriates these
funds to CalRecycle for the payment of refund values and
processing fees.
2)Requires CalRecycle to:
a) After deducting refund values, administrative fees, and
a reserve for contingencies, appropriate remaining monies
to designated programs, grants, and fee payments.
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b) Award up to $10 million for PMDPs to "certified
entities" (collection and processing operations/recyclers)
and "product manufacturers."
c) Specifies that CalRecycle may set different payment
amounts for certified entities and product manufacturers,
but neither payment shall exceed $150 per ton, according to
the following considerations:
i) The minimum funding level needed to encourage
in-state washing and processing of empty plastic beverage
containers collected for recycling;
ii) The minimum funding level needed to encourage
in-state manufacturing that uses empty plastic beverage
containers collected for recycling; and,
iii) The total amount of funds projected to be available
(currently $10 million annually) for PMDPs and the desire
to maintain the minimum funding level needed throughout
the year.
3)Sunsets the PMDP program on January 1, 2017.
FISCAL EFFECT: This bill would continue the existing allocation
of $10 million annually for PMDP program.
COMMENTS:
1)The Bottle Bill. The Bottle Bill is intended to create a
financial incentive for recycling and to make recycling
convenient for consumers to decrease the beverage container
component of the solid waste stream. The centerpiece of the
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Bottle Bill is the California Redemption Value (CRV).
Consumers pay a deposit, 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.
2)PMDP. The plastic market development program uses surplus
redemption funds to make payments of up to $150 per ton to
California-based processors and manufacturers that recycle and
utilize post-consumer plastic beverage containers. In
2007-09, the total amount of funds authorized was $5 million.
Beginning in 2010, the Legislature increased this payment
authority to $10 million annually. This bill would extend the
sunset on the current $10 million annual allocation from 2017
to 2022.
3)Program effectiveness. The PMDP has benefitted California
plastic recyclers and processors, improved recycling markets
in California, and created jobs for Californians. However,
some suggestions have been made by stakeholders to improve the
program, including addressing contamination in baled plastic
and targeting payments to increase recycling. The author and
committee may wish to work with CalRecycle and stakeholders
should the bill move forward to ensure that the program
operates efficiently and effectively to maximize recycling
opportunities.
REGISTERED SUPPORT / OPPOSITION:
Support
California Nevada Beverage Association
AB 1005
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Californians Against Waste
CarbonLITE
Ecopet Plastics
Global Plastics
RePET Inc.
Talco Plastics Inc.
Verdeco Recycling, Inc.
Opposition
None on file
Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916)
319-2092
AB 1005
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