BILL ANALYSIS Ó
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CONCURRENCE IN SENATE AMENDMENTS
AB
1005 (Gordon and Levine)
As Amended August 15, 2016
2/3 vote
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|ASSEMBLY: |75-1 |(January 25, |SENATE: |39-0 |(August 22, |
| | |2016) | | |2016) |
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Original Committee Reference: NAT. RES.
SUMMARY: Extends the sunset for plastic market development
payments (PMDP) from 2017 to 2018.
The Senate amendments change the sunset date from 2022 to 2018.
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 $0.05 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
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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,
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 Senate Appropriations
Committee, this bill has the following costs:
1)$10 million annual appropriation (Beverage Container Recycling
Fund) to the PMDP.
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2)$173,000 per year (Beverage Container Recycling Fund) to the
Department of Resources Recycling and Recovery (CalRecycle)
for program administration.
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
allocation from 2017 to 2018.
Analysis Prepared by:
Elizabeth MacMillan / NAT. RES. / (916) 319-2092
FN: 0004408
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