California Legislature—2015–16 Regular Session

Assembly BillNo. 2576


Introduced by Assembly Member Gray

(Coauthors: Assembly Members Bigelow and Olsen)

(Coauthor: Senator Galgiani)

February 19, 2016


An act to add Section 39719.5 to the Health and Safety Code, relating to recycling, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 2576, as introduced, Gray. Recycling: glass container manufacturers: market development payments.

Existing law establishes the Greenhouse Gas Reduction Fund as a special fund in the State Treasury, and requires that all moneys collected by the State Air Resources Board from the auction or sale of specified greenhouse gas allowances be deposited in the fund and available for appropriation by the Legislature.

This bill would appropriate $20,000,000 annually from the Greenhouse Gas Reduction Fund to the Department of Resources Recycling and Recovery for market development payments to glass container manufacturers in an unspecified amount per ton of state-generated cullet, as defined, utilized for manufacturing in the state.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P1    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

P2    1(a) The California Global Warming Solutions Act of 2006
2requires the State Air Resources Board, pursuant to regulation, to
3reduce California greenhouse gas (GHG) emissions and to
4minimize the “leakage” of GHG emissions from California to areas
5outside of the state. Regulations adopted by the board classify
6glass container manufacturing as an energy intensive and trade
7exposed industry with a high risk of leakage.

8(b) Glass container manufacturers currently use approximately
9563,000 tons of recycled glass per year. With increased quality
10supply, glass manufacturers have the potential to use 755,000 tons
11per year.

12(c) Furnace-ready recycled glass, referred to as “cullet,” is
13expensive and hard to acquire. Single-stream recycling systems
14result in low-quality glass that cannot be used in a furnace. Often,
15this glass is disposed of in landfills rather than recycled. Glass
16market development payments will improve the market for recycled
17glass and increase the availability of furnace-ready cullet in
18California.

19(d) For every six tons of recycled glass used in the
20manufacturing process, there is a one ton reduction in GHG
21emissions. GHG emissions reductions could reach 34,000 tons per
22year.

23(e) Glass container manufacturing fits the categories for funding
24identified in the California Global Warming Solutions Act of 2006,
25SB 535 (Chapter 830 of the Statutes of 2012), and the board’s
26scoping plan for expenditures.

27(f) Glass container manufacturing plants are located in areas of
28the state designated by the California Communities Environmental
29Health Screening, also known as CalEnviroScreen, as priority
30locations for cap and trade investment.

31

SEC. 2.  

Section 39719.5 is added to the Health and Safety
32Code
, to read:

33

39719.5.  

Twenty million dollars ($20,000,000) is hereby
34appropriated annually from the Greenhouse Gas Reduction Fund,
35established pursuant to Section 16428.8 of the Government Code,
36to the Department of Resources Recycling and Recovery for market
37development payments to glass container manufacturers in an
38amount up to __ dollars ($__) per ton of state-generated cullet, as
P3    1defined in Section 14509.3 of the Public Resources Code, utilized
2for manufacturing in the state.



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