BILL ANALYSIS                                                                                                                                                                                                    



                                                               AB 2718
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    AB 2718
           AUTHOR:     Adams
           AMENDED:    April 14, 2010
           FISCAL:     Yes               HEARING DATE:     June 28, 2010
           URGENCY:    No                CONSULTANT:       Caroll  
           Mortensen
            
           SUBJECT  :    BEVERAGE CONTAINER RECYCLING:
                       CONVENIENCE ZONES

            SUMMARY  :    
           
            Existing law  , under the California Beverage Container  
           Recycling and Litter Reduction Act (Act) (Public Resources  
           Code 14500, et al.):

           1) Establishes refund value and redemption payments for  
              beverage containers. 

           2) Requires a distributor to pay a redemption payment for  
              every beverage container sold or offered for sale in the  
              state to the Department of Resources Recycling and Recovery  
              (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.   
              (14538, 14571).

           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.  
               (14585).









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            This bill  :

           1) Adds a definition of an "unserved convenience zone" to mean  
              a CZ where there is no certified recycling center or other  
              approved location and that is not otherwise exempt from  
              existing requirements. 

           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.  

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, AB 2718  
              addresses a variety of structural issues with the Bottle  
              Bill by adding a definition of "unserved convenience zone";  
              permitting DRRR to develop various exceptions for the  
              operation on convenience zone recyclers to incentivize  
              opening of collection stations in unserved zones; allowing  
              retailers in unserved zones that collect containers to  
              receive handling fees.

            2) Background .  DRRR administers the Beverage Container  
              Recycling Program, commonly referred to as the Bottle Bill  
              program.  The program encourages the voluntary recycling of  
              most beverage containers by guaranteeing a minimum payment  
              (the "California Redemption Value" (CRV)) for each  
              container returned to a certified recycler.  Beverage  
              containers are subject to the CRV based on both the content  
              of the container (the beverage type, such as water or  
              sports drinks) and the container material (such as glass or  
              plastic).

             To encourage convenient recycling, certain recycling  








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             centers-generally those located in supermarket parking lots  
             and known as "convenience zone recyclers"-are paid an  
             additional "handling fee" or subsidy per container recycled.  
              Despite this incentive payment, hundreds of areas  
             throughout the state lack convenience zone recycling  
             centers.  These unserved zones discourage recycling, because  
             people must travel relatively longer distances to redeem  
             their beverage containers.

            SOURCE :        California Grocers Association  

           SUPPORT  :       None on file  

           OPPOSITION  :    None on file