BILL NUMBER: AB 2576	INTRODUCED
	BILL TEXT


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:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The California Global Warming Solutions Act of 2006 requires
the State Air Resources Board, pursuant to regulation, to reduce
California greenhouse gas (GHG) emissions and to minimize the
"leakage" of GHG emissions from California to areas outside of the
state. Regulations adopted by the board classify glass container
manufacturing as an energy intensive and trade exposed industry with
a high risk of leakage.
   (b) Glass container manufacturers currently use approximately
563,000 tons of recycled glass per year. With increased quality
supply, glass manufacturers have the potential to use 755,000 tons
per year.
   (c) Furnace-ready recycled glass, referred to as "cullet," is
expensive and hard to acquire. Single-stream recycling systems result
in low-quality glass that cannot be used in a furnace. Often, this
glass is disposed of in landfills rather than recycled. Glass market
development payments will improve the market for recycled glass and
increase the availability of furnace-ready cullet in California.
   (d) For every six tons of recycled glass used in the manufacturing
process, there is a one ton reduction in GHG emissions. GHG
emissions reductions could reach 34,000 tons per year.
   (e) Glass container manufacturing fits the categories for funding
identified in the California Global Warming Solutions Act of 2006, SB
535 (Chapter 830 of the Statutes of 2012), and the board's scoping
plan for expenditures.
   (f) Glass container manufacturing plants are located in areas of
the state designated by the California Communities Environmental
Health Screening, also known as CalEnviroScreen, as priority
locations for cap and trade investment.
  SEC. 2.  Section 39719.5 is added to the Health and Safety Code, to
read:
   39719.5.  Twenty million dollars ($20,000,000) is hereby
appropriated annually from the Greenhouse Gas Reduction Fund,
established pursuant to Section 16428.8 of the Government Code, to
the Department of Resources Recycling and Recovery for market
development payments to glass container manufacturers in an amount up
to __ dollars ($__) per ton of state-generated cullet, as defined in
Section 14509.3 of the Public Resources Code, utilized for
manufacturing in the state.