BILL ANALYSIS �
AB 1149
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator S. Joseph Simitian, Chairman
2011-2012 Regular Session
BILL NO: AB 1149
AUTHOR: Gordon
AMENDED: As Introduced
FISCAL: Yes HEARING DATE: June 20, 2011
URGENCY: No CONSULTANT: Caroll
Mortensen
SUBJECT : RECYCLED PLASTIC MARKET DEVELOPMENT
SUMMARY :
Existing law :
1) Requires a distributor to pay a redemption payment for
every beverage container sold or offered for sale in the
state to 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. (Public
Resources Code �14500 et seq.).
2) Requires DRRR to review the status of the Fund every three
months to ensure that funds are adequate to make
expenditures according the Bottle Bill and make specified
determinations (�14556).
3) Authorizes funding for specified purposes to increase
beverage container recycling, including up to $10 million
annually for market development payments for empty plastic
beverage containers until January 1, 2012 (�14581).
This bill :
1) Extends for five years the plastic market development
program, which provides Bottle Bill funds to support
recyclers and manufacturers using empty plastic beverage
containers from January 1, 2012, to January 1, 2017.
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2) Requires DRRR to consider, in setting the amount of the
market development payment for both certified entities and
product manufacturers, all of the following:
a) The minimum funding level needed to encourage the
in-state washing and processing of empty plastic
beverage containers collected for recycling in this
state.
b) The minimum funding level needed to encourage the
in-state manufacturing that utilizes empty plastic
beverage containers collected for recycling in this
state.
c) The total amount of funds projected to be available
for plastic market development payments and the desire
to maintain the minimum funding level needed throughout
the year.
COMMENTS :
1) Purpose of Bill . According to the author, while
California's plastic market development program has
succeeded in increasing California processing and use of
recycled plastic in-state, California continues to export
in excess of 90% of plastic collected for recycling. In
2010, Californians collected more than 250,000 tons of PET
and HDPE plastic beverage containers for recycling, with
all but 25,000 tons exported overseas (primarily to China)
for processing and manufacturing.
Existing California-based manufacturers of products and
packaging could be utilizing this material, reducing
pollution and waste, and increase jobs and economic
opportunity in California. The program is needed to
continue building California's recycling infrastructure.
Currently, there are six California companies doing plastic
processing, and about a dozen California manufacturers that
can use recycled plastic. Together, these companies are
employing about 750 people, whose jobs are supported by the
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current program. Should the program sunset, a portion of
these jobs could be at risk.
2) Background . AB 1149 would continue annual payments of $10
million for plastic market development. The plastic market
development program uses surplus redemption funds from the
Fund to make payments of up to $150 per ton to
California-based processors and manufacturers that recycle
and utilize post-consumer plastic beverage containers. In
2007-09, the total amount of funds authorized was $5
million. For 2010 and 2011, the Legislature increased this
payment authority to $10 million annually. This bill would
continue the $10 million annual allocation until 2017.
SOURCE : Californians Against Waste
SUPPORT : California Nevada Soft Drink Association
California Resource Recovery Association
California State Association of Counties
CarbonLITE Industries
Central Contra Costa Solid Waste Authority
City/County of San Francisco
Earthbound Farm Organic
Peninsula Packaging Company
Pinnacle Plastic Containers/Leading Industry
Inc.
Republic Services, Inc.
Regional Council of Rural Counties
OPPOSITION : None on file