BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1419


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          Date of Hearing:   April 27, 2015


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          AB 1419  
          (Eggman) - As Introduced February 27, 2015


          SUBJECT:  Recycling centers


          SUMMARY:  Authorizes the Department of Resources Recycling and  
          Recovery (CalRecycle) to revoke certification of a certified  
          recycling center if it determines that the recycling center is  
          not open during its posted hours on two consecutive inspections,  
          and the recycling center has no reportable volumes for a period  
          of 30 consecutive days.  Authorizes the holder of a certificate  
          that is revoked to request a hearing to be conducted in the same  
          manner as a hearing for an application that was denied.  


          EXISTING LAW, pursuant to the California Beverage Container  
          Recycling and Litter Reduction Act (Bottle Bill):


          1)Requires beverage containers sold in this state to have a  
            California refund value (CRV) of 5 cents for containers that  
            hold fewer than 24 ounces and 10 cents for containers that  
            hold 24 ounces or more and requires a distributor to pay a  
            redemption payment to CalRecycle.  Continuously appropriates  
            these funds to CalRecycle for the payment of refund values and  
            processing fees.  

          2)Defines a number of terms, including: 








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             a)   "Beverage" to include, among other things, soda, beer  
               and other malt beverages, wine and distilled spirit  
               coolers, carbonated mineral and soda waters, noncarbonated  
               fruit drinks, and vegetable juices in liquid form that are  
               intended for human consumption.  Excludes from the  
               definition of 'beverage,' among other things, vegetable  
               drinks in beverage containers of more than 16 ounces, milk,  
               medical food, and any product sold in a container that is  
               not an aluminum beverage container, a glass container, a  
               plastic beverage container, or a bimetal container. 

             b)   "Convenience zone" to mean either an area within a  
               one-half mile radius of a supermarket, or an area  
               designated by CalRecycle at a location where there is no  
               supermarket but there are two or more dealers located  
               within a one-mile radius of each other, and meet certain  
               specified criteria.  

             c)   "Certified recycling center" to mean an operation that  
               is certified by CalRecycle and that accepts from consumers,  
               and pays or provides the CRV for, empty beverage containers  
               for recycling.  

          3)Requires CalRecycle to: 

             a)   Establish reporting periods of six months each for  
               redemption rates and recycling rates for beverage  
               containers and requires them to determine and report the  
               redemption rates and recycling rates for those beverage  
               containers for each reporting period. 

             b)   Certify recycling centers and promulgate regulations  
               establishing a procedure for certification of recycling  
               centers.  Specifies that these regulations shall include,  
               as a condition for certification, that if one or more  
               certified entities have operated at the same location  
               within the past five years, the recycling center must  
               demonstrate to CalRecycle that its operations exhibit a  








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               pattern of compliance with the Bottle Bill and its related  
               regulations. 

             c)   Pay handling fees to supermarket sites, nonprofit  
               convenience zone recyclers, or rural region recyclers to  
               provide an incentive for the redemption of empty beverage  
               containers in convenience zones, and adopt guidelines and  
               methods specifying a procedure for the payment of these  
               fees. 

             d)   After deducting refund values, administrative fees, and  
               a reserve for contingencies, appropriate remaining Fund  
               monies to designated programs, grants, and fee payments  
               (PRC Section 14581).


          4)Requires certified recycling centers to comply with the  
            requirements of the Act and: 
             a)   Operate during specified business hours; 
             b)   Post signage that is at least two feet by two feet,  
               which includes the types of containers that can be redeemed  
               and the price paid by weight or per container; 


             c)   Notify CalRecycle of any material change in the nature  
               of the operation; 


             d)   Complete a precertification training program; 


             e)   Accept and pay CRV for all Bottle Bill containers, and  
               not pay CRV for any container that is not included in the  
               Bottle Bill or any container that the center knows, or  
               should have known, is from out of state; 


             f)   Prepare and maintain specified documentation; and,









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             g)   Comply with all regulations adopted by CalRecycle. 


          FISCAL EFFECT:  Unknown 


          COMMENTS:   


          1)Background on the Bottle Bill.  California's Bottle Bill has  
            achieved an overall recycling rate over 80 percent - higher  
            than any other bottle bill program in North America.   
            According to Californians Against Waste, since its inception  
            25 years ago, the program has resulted in the recycling of  
            over 11.9 million tons of glass; 3 million tons of aluminum;  
            and, more than 2 million tons of plastic.  In addition to the  
            diversion from landfill disposal, this recycling has avoided  
            an estimated 2 million metric tons of CO2 equivalent  
            greenhouse gas emissions over the last four years.  

          The Bottle Bill is designed to provide consumers with a  
            financial incentive for recycling and to make recycling  
            convenient to consumers.  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.  

          Consumers that wish to redeem the CRV can turn their containers  
            in to a recycling center, which is certified by CalRecycle to  
            accept beverage containers and pay the CRV to consumers to  
            serve a convenience zone.  CalRecycle pays 'handling fees'  
            based on the number of containers accepted to certified  








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            recycling centers.  CalRecycle maintains a list of certified  
            recycling centers to assist the public in locating convenient  
            recycling opportunities.  

          2)This bill.  According to the author:  

               Currently, a certified operator of a recycling center is  
               required to notify CalRecycle 10 days prior to the  
               discontinuance of an operation.  However, there is no  
               penalty associated with failing to adhere to this  
               requirement.  As a result, many operators abandon recycling  
               businesses without informing CalRecycle, which is  
               problematic for various reasons.  First, this results in  
               incorrect information being provided to the public that a  
               recycling center is operational when it may not be open for  
               business.  Second, with the perceived existence of more  
               than one recycling center operating in a convenience zone,  
               an operational recycling center is unable to receive [the]  
               handling fee revenue that the site would otherwise be  
               eligible for as the sole recycler in the convenience zone.   
               Finally, the current process to declare that a  
               non-probationary, certified recycling center is abandoned  
               is unnecessarily cumbersome and negatively impacts already  
               limited CalRecycle staffing resources.  

          3 Revoking certification.  The process for revoking the  
            certification of an abandoned recycling center takes a minimum  
            of 60 days, following an inspection process that takes six to  
            eight weeks.  While certified recycling centers are required  
            to notify CalRecycle if they close or change ownership,  
            revoking the certification of a closed recycling center only  
            occurs if CalRecycle receives a complaint that the center is  
            not operating or if a center is closed when CalRecycle  
            conducts an inspection, which generally happens once each  
            year.   This bill would streamline this process by creating a  
            rebuttable presumption that a recycling center is abandoned,  
            under specified conditions, while preserving due process if  
            the owner of a certified recycling center wishes to continue  
            operation.  








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          3 Suggested amendment.  This bill streamlines CalRecycle's  
            authority to revoke the certification of an abandoned  
            recycling center, which is an enforcement action.  The  
            committee may wish to amend the bill to move the bill's  
            provisions from the chapter relating to administration  
            (Chapter 3, commencing with section 14530) to the chapter  
            relating to enforcement (Chapter 8, commencing with section  
            14590). 

          REGISTERED SUPPORT / OPPOSITION:




          Support


          Californians Against Waste


          West Coast Chapter of the Institute of Scrap Recycling  
          Industries, Inc.




          




          Opposition


          None on file











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          Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092