BILL ANALYSIS
AB 2718
Page 1
ASSEMBLY THIRD READING
AB 2718 (Adams)
As Amended April 14, 2010
Majority vote
NATURAL RESOURCES 8-0 APPROPRIATIONS 17-0
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|Ayes:|Chesbro, Gilmore, |Ayes:|Fuentes, Conway, Ammiano, |
| |Brownley, | |Bradford, Charles |
| |De Leon, Hill, Huffman, | |Calderon, Coto, Davis, |
| |Logue, Skinner | |Monning, Ruskin, Harkey, |
| | | |Miller, Nielsen, Norby, |
| | | |Skinner, Solorio, |
| | | |Torlakson, Torrico |
| | | | |
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SUMMARY : Establishes a definition of "unserved zone" for
purposes of the California Beverage Container Recycling and
Litter Reduction Act (Bottle Bill) and revises the requirements
for certified recycling centers operating in unserved zones.
Specifically, this bill :
1)Defines "unserved convenience zone" as a convenience zone
where there is not an operating certified recycling center, as
specified.
2)Requires the Department of Resources Recycling and Recovery
(DRRR) to pay handling fees to a dealer that is certified as a
recycling center and is located in an unserved zone for
redeemed beverage containers.
3)Authorizes the DRRR to allow a certified recycling center to
be open for less than 30 hours, but not less than 20 hours,
per week if the center is located in an unserved convenience
zone that has been unserved for at least six continuous
months.
EXISTING LAW , under the Bottle Bill:
1)Establishes refund value and redemption payments for beverage
containers.
2)Requires a distributor to pay a redemption payment for every
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beverage container sold or offered for sale in the state to
the DRRR, which is required to deposit those amounts in the
California Beverage Container Recycling Fund (Fund). The money
in the Fund is continuously appropriated for the payment of
refund values and processing fees.
3)Specifies that every convenience zone must be served by at
least one certified recycling center, with specified operating
hours. If a zone is "unserved" by a certified recycling
center, existing law requires that the dealer (store) redeem
beverage containers from consumers.
4)Authorizes a dealer that redeems beverage containers to become
certified as a recycling center by DRRR and receive related
handling fees to cover related costs. Limits handling fees to
one recycling center per convenience zone.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, costs to DRRR of approximately $300,000 in 2010-11
and approximately $500,000 ongoing (Beverage Container Recycling
Fund). These costs would result from increased convenience zone
exemption reviews and fraud investigations.
COMMENTS : The Bottle Bill is designed to provide consumers with
a financial incentive for recycling and to make recycling
convenient to consumers so that the beverage container component
of the solid waste stream will decrease. The centerpiece of the
Bottle Bill Program is the California Redemption Value (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 the Department. 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.
To provide convenient recycling opportunities to consumers,
certified recycling centers are located on the site of a
supermarket (dealer) and accept beverage containers for
recycling and remit the CRV refund to consumers. There must be
one certified recycling center in each convenience zone, which
is typically a half-mile radius circle around a dealer. In
order to assist these centers cover their operating costs, the
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Bottle Bill allocates handling fees. In spite of this
assistance, there are approximately 585 convenience zones that
have been unserved for at least six months out of 3,765 total
convenience zones. Unserved zones create challenges for
consumers because they may have to travel significantly farther
to redeem their deposit, and for dealers, who are responsible
for taking back containers in the absence of a certified
recycler.
In 2008, the Department estimated a $180 million surplus in the
Fund. In April 2009 the Department indicated in Budget hearings
that the Fund would have an $81 million surplus at the end of
the 2009-10 Fiscal Year. However, less than two months later
the Department notified the Legislature that the Fund was facing
a $160 million shortfall by the end of the 2009-10 fiscal year
and initiated an 85% proportional reduction for all expenditures
except CRV payments to consumers. In October, the Department
increased this reduction to 100%. These deep cuts damaged the
state's recycling infrastructure and directly contributed to the
loss of at least 500 jobs statewide.
In order to temporarily alleviate this funding shortfall, the
Legislature passed AB 8X 7 (Budget Committee) in March, which
provides a one time influx of approximately $100 million dollars
and temporary suspends multiple grant programs to provide
funding through the 2010 calendar year.
AB 2718 is intended to address the challenge of unserved zones
by exempting dealers from take-back requirements for one year,
providing incentives for dealers that redeem beverage
containers, increasing the handling fees awarded to certified
recyclers that begin operating in an unserved zone, and allowing
recyclers that are located off-site to become certified
recyclers.
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092
FN: 0004722