Senate BillNo. 732


Introduced by Senator Pan

February 27, 2015


An act to repeal and add Section 14575.1 of the Public Resources Code, relating to beverage containers.

LEGISLATIVE COUNSEL’S DIGEST

SB 732, as introduced, Pan. Beverage container recycling: processing fees: PET beverage containers.

Existing law, the California Beverage Container Recycling and Litter Reduction Act, requires that every beverage container sold or offered for sale in this state have a minimum refund value. Existing law requires the department to calculate a processing fee and a processing payment for any type of empty beverage container with a refund value less than the cost of recycling in accordance with a specified formula. The department is prohibited from imposing a processing fee on PET beverage containers if a willing purchaser offers to purchase empty PET containers at a voluntary artificial scrap value that is equal to the processing fee, as specified.

This bill would delete the provisions prohibiting the department from imposing a processing fee on PET beverage containers for which there is such a willing purchaser.

Existing law requires the department to reduce the processing fee paid by beverage manufacturers based on the recycling rate of the container, subject to specified requirements and the availability of funds.

This bill would prohibit the department from reducing the processing fee requirements for any beverage manufacturer for any beverage container sold in the state unless the beverage manufacturer demonstrates to the department that the beverage container is manufactured at a facility that meets or exceeds a certain percentage of recycled content, regardless of whether the container is manufactured in the state.

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

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

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SECTION 1.  

Section 14575.1 of the Public Resources Code
2 is repealed.

begin delete
3

14575.1.  

(a) Notwithstanding subdivision (b) of Section 14575,
4if a willing purchaser offers to purchase empty PET containers at
5a voluntary artificial scrap value that is equal to the processing fee
6reduced pursuant to subdivision (f) of Section 14575 when applied
7to all containers sold, no processing fee shall be imposed on PET
8containers pursuant to Section 14575.

9(b) If a willing purchaser offers to pay a voluntary artificial
10scrap value, the department shall, on a monthly basis, determine
11whether the sum of the voluntary artificial scrap value and
12payments made from the PET Processing Fee Account pursuant
13to subdivision (f) of Section 14575, are equal to, or more than, the
14recycling cost for empty PET containers determined pursuant to
15subdivision (d) of Section 14575.

16(c) If the department determines that, for any monthly period,
17the sum of the voluntary artificial scrap value and payments made
18from the PET Processing Fee Account pursuant to subdivision (f)
19of Section 14575, is less than the recycling cost for empty PET
20containers, determined pursuant to Section 14575, the following
21requirements shall apply:

22(1) The department shall immediately provide written
23notification of the deficiency for that monthly period and the
24amount of that deficiency to any willing purchaser.

25(2) A willing purchaser shall correct the deficiency in the next
26monthly period by adjusting the voluntary artificial scrap value
27by an amount sufficient to equal the recycling cost for empty PET
28containers plus the previous monthly period’s deficiency.

29(3) If the deficiency and amount in arrears is not corrected within
3030 days of providing written notice to willing purchasers of empty
31PET containers, the department shall impose a processing fee
32pursuant to Section 14575 which includes any amount necessary,
P3    1including any amount in arrears, to cover the cost of recycling
2empty PET containers.

3(d) If the department determines that, for any monthly period,
4the sum of the voluntary artificial scrap value and payments made
5from the PET Processing Fee Account pursuant to subdivision (f)
6of Section 14575, is greater than the recycling cost for empty PET
7containers, the department shall do both of the following:

8(1) Immediately provide written notification of the deviation
9for that monthly period and the amount of that deviation to any
10willing purchaser.

11(2) Provide a credit equal to the amount of the deviation for any
12future monthly period wherein the voluntary artificial scrap value,
13and payments made from the PET Processing Fee Account, are
14less than the recycling cost of empty PET containers determined
15pursuant to subdivision (d) of Section 14575.

16(e) Nothing in this section is intended to affect any litigation
17that was pending on January 1, 1996, in which the department is
18a party of record.

end delete
19

SEC. 2.  

Section 14575.1 is added to the Public Resources Code,
20to read:

21

14575.1.  

Notwithstanding subdivision (e) of Section 14575,
22the department shall not reduce the processing fee requirements
23for any beverage manufacturer for any beverage container sold in
24this state unless the beverage manufacturer demonstrates to the
25department that the beverage container is manufactured at a facility
26that meets or exceeds the percentage of recycled content specified
27pursuant to Section 14549, regardless of whether the container is
28manufactured in this state.



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