BILL ANALYSIS Ó
AB 1005
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Date of Hearing: January 21, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1005 (Gordon) - As Amended January 4, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill extends the sunset date for the Plastic Market
Development Payment Program
(PMDP) at CalRecyle from January 1, 2017 to January 1, 2022.
AB 1005
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FISCAL EFFECT:
Allocates $10 million annually (California Beverage Container
Recycling Fund) for the PMDP program for an additional five
years.
COMMENTS:
Background and Purpose. The California Beverage Container
Recycling and Litter Reduction Act (Bottle Bill) requires
beverage containers sold in this state to have a California
redemption value (CRV) of five cents for containers that hold
less than 24 ounces and ten cents for containers that hold 24
ounces or more. Customers pay the CRV deposit for each beverage
container purchased. When consumers return empty beverage to a
recycler, or donate them to a curbside or other program, the
deposit is refunded.
The PDMP was established to create jobs and improve plastic
recycling markets by providing a subsidy from surplus California
Redemption Value (CRV) funds.
The PDMP provides payments of up to $150 per ton for
California-based processors and manufacturers to recycle and
utilize post-consumer plastic beverage containers. From
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 extends the sunset on the current $10 million annual
allocation from 2017 to 2022.
AB 1005
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Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081