Amended in Assembly April 11, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2576

Introduced by Assembly Member Gray

(Coauthors: Assembly Members Bigelow and Olsen)

(Coauthor: Senator Galgiani)

February 19, 2016

An act to add Section begin delete 39719.5 to the Health and Safety Code, end delete begin insert 40512 to the Public Resources Code, end insert relating to begin delete recycling, and making an appropriation therefor. end delete begin insert recycling. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2576, as amended, 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 begin delete that end delete all begin delete moneys end delete begin insert moneys, except for fines and penalties, end insert collected by the State Air Resources Board begin delete from the auction or sale of specified greenhouse gas allowances end delete begin insert as part of a market-based compliance mechanism to end insert be deposited in the fund and available begin delete for appropriation by the Legislature. end delete begin insert upon appropriation for purposes relating to the reduction of greenhouse gas emissions. end insert

This bill would begin delete appropriate $20,000,000 annually end delete begin insert provide that up to $20,000,000 shall be available, upon appropriation by the Legislature, end insert from the Greenhouse Gas Reduction Fund to the Department of Resources Recycling and Recovery for market development payments to glass container manufacturers in an begin delete unspecified end delete amount begin insert of $50 end insert per ton of state-generated cullet, as defined, utilized for manufacturing in the begin delete state. end delete begin insert state to achieve greenhouse gas emissions reductions not otherwise required by statute or regulation. end insert

Vote: majority. Appropriation:  begin delete yes end delete begin insert no end insert . 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 begin delete 39719.5 end delete begin insert 40512 end insert is added to the begin delete Health and
Safety end delete begin insert Public Resources end insert Code, to read:

begin delete 39719.5. end delete

begin insert 40512. end insert   

begin delete Twenty end delete begin insert Up to twenty end insert million dollars ($20,000,000) begin delete is
hereby appropriated annually end delete begin insert shall be available, upon
appropriation by the Legislature, end insert from the Greenhouse Gas
Reduction Fund, established pursuant to Section 16428.8 of the
Government Code, to the begin delete Department of Resources Recycling and
Recovery end delete begin insert department end insert for market development payments to glass
container manufacturers in an amount up to begin delete __ end delete begin insert fifty end insert dollars begin delete ($__) end delete
begin insert ($50) end insert per ton of state-generated cullet, as defined in Section
begin delete 14509.3 of the Public Resources Code, end delete begin insert 14509.3, end insert utilized for
manufacturing in the begin delete state. end delete begin insert state to achieve greenhouse gas
emissions reductions not otherwise required by statute or
regulation. end insert