BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 1149 (Gordon)
          
          Hearing Date: 07/11/2011        Amended: As introduced
          Consultant: Brendan McCarthy    Policy Vote: EQ 5-0
          _________________________________________________________________
          ____
          BILL SUMMARY: AB 1149 extends the sunset of the plastic market 
          development program, within the Bottle Bill program, to 2017.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           
          Administering grants   About $450 per year              Special 
          *

          Grants                 $10,000 per year                 Special 
          *

          * Beverage Container Recycling Fund.
          _________________________________________________________________
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File. 

          Under current law (referred to as the "Bottle Bill") California 
          consumers pay a deposit payment every time they purchase a 
          covered bottle or can. The funds collected are used to provide a 
          California Redemption Value payment when a bottle or can is 
          recycled. Because only about 80 percent of covered bottle and 
          cans are recycled, excess revenues are used to support 
          collection and recycling of bottles and cans through payments to 
          processors and collectors and other programs. One element of the 
          Bottle Bill program is the plastic market development program, 
          under which up to $10 million per year may be provided in market 
          development payments of up to $150 per ton to recyclers and 
          manufacturers that make use of recycled plastic. The Plastic 
          Market Development Program sunsets on January 1, 2012.

          AB 1149 extends the sunset of the Plastic Market Development 
          Program until January 1, 2017. The bill also specifies criteria 








          > (>)
          Page 1


          to be used by the Department of Resources Recycling and Recovery 
          when setting the level of the market development payments.

          By extending the sunset of the program, the bill will increase 
          Bottle Bill program costs by $10 million per year, plus 
          administrative costs of about $450,000 per year which are paid 
          from the Beverage Container Recycling Fund, but are not included 
          in the $10 million provided for market development payments.