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