BILL ANALYSIS Ó
AB 1005
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ASSEMBLY THIRD READING
AB
1005 (Gordon and Levine)
As Amended January 4, 2016
2/3 vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Natural |9-0 |Williams, Dahle, | |
|Resources | |Bonta, Cristina | |
| | |Garcia, Hadley, | |
| | |Harper, McCarty, Mark | |
| | |Stone, Wood | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |17-0 |Gomez, Bigelow, | |
| | |Bloom, Bonilla, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, Eggman, | |
| | |Gallagher, Eduardo | |
| | |Garcia, Holden, | |
| | |Jones, Quirk, Wagner, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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AB 1005
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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 $0.10 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.
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,
AB 1005
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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: According to the Assembly Appropriations
Committee, continues the existing allocation of $10 million
annually for the PMDP program for an additional five years.
COMMENTS:
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 Bottle Bill is the 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.
The PMDP 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 until 2017. This
bill would extend the sunset on the current $10 million annual
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allocation from 2017 to 2022.
Analysis Prepared by:
Elizabeth MacMillan / NAT. RES. / (916) 319-2092
FN: 0002586