BILL ANALYSIS Ó AB 1419 Page 1 Date of Hearing: May 13, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1419 (Eggman) - As Amended May 5, 2015 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill authorizes CalRecyle to revoke the certification of a recycling center found to be abandoned if the center is not open during its posted hours on two consecutive inspections and has not reported any received volumes of California Redemption Value AB 1419 Page 2 (CRV) containers for a period of 30 consecutive days. Additionally, this bill provides an opportunity for a hearing on the revocation to be conducted in the same manner as a hearing for an application that was denied. FISCAL EFFECT: Minor cost savings for CalRecyle (Beverage Container Recycling Fund) resulting from the modification of the existing revocation process. COMMENTS: 1)Purpose. According to the author, the current process to determine a certified recycling center is abandoned is unnecessarily cumbersome and negatively impacts already limited CalRecycle staffing resources. This bill streamlines CalRecyle's authority by creating a rebuttable presumption that a recycling center is abandoned while preserving due process if the owner of a certified recycling center wishes to resume operation. 2)Background. The California Beverage Container Recycling and Litter Reduction Act (Bottle Bill) 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. California's Bottle Bill has achieved an overall recycling rate over 80 percent - higher than any other bottle bill AB 1419 Page 3 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. 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. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081 AB 1419 Page 4