BILL ANALYSIS Ó AB 1005 Page 1 Date of Hearing: January 21, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1005 (Gordon) - As Amended January 4, 2016 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 Page 3 Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081