BILL NUMBER: AB 3056 CHAPTERED
BILL TEXT
CHAPTER 907
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2006
APPROVED BY GOVERNOR SEPTEMBER 30, 2006
PASSED THE SENATE AUGUST 31, 2006
PASSED THE ASSEMBLY AUGUST 31, 2006
AMENDED IN SENATE AUGUST 24, 2006
AMENDED IN SENATE AUGUST 14, 2006
AMENDED IN SENATE JUNE 19, 2006
AMENDED IN ASSEMBLY MAY 26, 2006
AMENDED IN ASSEMBLY APRIL 18, 2006
INTRODUCED BY Committee on Natural Resources (Hancock (Chair), La
Malfa (Vice Chair), Keene, Koretz, Saldana, and Wolk)
MARCH 2, 2006
An act to amend Sections 14509.4, 14524, 14536, 14560, 14574,
14575, 14581, and 14585 of, to amend, repeal, and add Section 14549.1
of, to add and repeal Section 14549.2 of, and to add Sections
14549.7 and 14571.5 to, the Public Resources Code, relating to
beverage containers, making an appropriation therefor, and declaring
an urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 3056, Committee on Natural Resources Beverage containers:
quality incentive payments: refund values: handling fees.
(1) The California Beverage Container Recycling and Litter
Reduction Act requires a distributor of specified beverage containers
to pay a redemption payment to the Department of Conservation
(department), for each beverage container, as defined, sold or
transferred, for deposit in the California Beverage Container
Recycling Fund.
The money in the fund is continuously appropriated to the
department to pay refund values, administrative fees, and a reserve
for contingencies. The department is then authorized to make other
specified expenditures from the money remaining in the fund after the
money for those purposes has been set aside.
The department is required to pay a processor the refund value
for every empty beverage container received by the processor from a
recycler and existing law sets the refund value at $0.08 for every 2
beverage containers redeemed or for a single beverage container with
a capacity of 24 or more fluid ounces, and $0.04 for a single or
unpaired beverage container redeemed in a single transaction.
This bill would authorize the department, after setting aside the
money required for those other expenditures, to expend those moneys
to pay an increased refund value in an amount greater than the
specified refund value, but by no more than $0.01, except as
specified, until July 1, 2007, thereby making an appropriation.
(2) The California Beverage Container Recycling and Litter
Reduction Act defines "convenience zone," for purposes of providing
recycling centers under the act, as an area within a 1/2 mile radius
of a supermarket or, alternatively, in a rural region where the
convenience zone is otherwise not being served by a certified
recycling center or location, the area within a 3-mile radius of a
supermarket.
This bill would revise the definition of convenience zone to
instead authorize the department to increase a convenience zone in a
rural region to include the area within a 3-mile radius of a
supermarket, if the expanded convenience zone would then be served by
a single existing certified recycling center or location. The bill
would additionally authorize the department to designate a
convenience zone in a rural region where there is no supermarket, but
there are 2 or more dealers located within a one-mile radius of each
other, and that meets other specified criteria.
(3) The act requires a distributor of beverage containers to pay
the department the redemption payment for every beverage container
sold or transferred to a dealer, less 1% for the distributor's
administrative costs.
This bill would increase to 1.5% the amount that a distributor is
authorized to withhold from the redemption payment for administrative
costs.
(4) Under the act, the department is required to calculate a
processing fee for each beverage container with a specified scrap
value, which is required to be paid by beverage manufacturers for
each beverage container sold or transferred to a dealer.
This bill would, for the 2007 calendar year, require the
department to reduce to zero the processing fee paid for any
container type with a recycling rate equal to, or greater than 40%.
(5) Existing law authorizes the department to pay a quality glass
incentive payment to either an operator of a curbside recycling
program or any other entity certified under the act that color sorts
glass beverage containers for recycling. The department is authorized
to expend not more than $3,000,000 per calendar year in making these
incentive payments.
The bill would instead authorize the department to pay a quality
incentive payment for empty glass, plastic, and aluminum beverage
containers that meet specified conditions. The bill would authorize
the department to expend, after January 1, 2007, up to $15,000,000
annually for making these quality incentive payments, thereby making
an appropriation.
(6) Existing law requires the department, subject to the
availability of funds, to annually expend $15,000,000, in the form of
grants for beverage container litter reduction programs and
recycling programs issued to certified community conservation corps
meeting specified criteria.
The bill would additionally authorize the department to expend
$20,000,000, from January 1, 2007, until January 1, 2008, in the form
of competitive grants to a community conservation corps meeting
specified qualifications. The bill would require the department to
adopt criteria and procedures for the evaluation of those grants.
(7) Existing law authorizes the department to spend up to
$10,000,000 annually, until January 1, 2007, to issue grants for
recycling market development and expansion-related activities aimed
at increasing the recycling of beverage containers.
This bill would increase the amount the department is authorized
to expend for those purposes to $20,000,000, and would extend that
date to January 1, 2012, thereby making an appropriation. The bill
would additionally allow those grants to fund research and
development to provide high-quality materials that are substantially
free of contamination.
The bill would also authorize the department to pay a market
development payment, until January 1, 2012, to a certified entity or
product manufacturer for empty plastic beverage containers collected
and either recycled or used in manufacturing, in the state. The bill
would require the department to determine the amount of the market
development payment, which the department would be authorized to set
at different levels for a certified entity and a product
manufacturer, but the payment would be prohibited from exceeding $150
per ton. The bill would authorize the department to annually expend
up to $5,000,000 to make these market development payments for empty
plastic beverage containers, until January 1, 2012.
The bill would authorize the department to establish a recycling
incentive payment program for recycling centers and dropoff or
collection programs that meet specified conditions, including that
the number of beverage containers redeemed or collected, as
applicable, by the recycling center or dropoff or collection program
during a 6-month base period for which payments are authorized to be
made, in calendar year 2007, exceeds by more than 6.5%, the number of
beverage containers redeemed or collected by that entity during the
prior 6-month period, and 5% for calendar years 2008 and 2009. The
bill would provide that the amount of the recycling incentive payment
is $0.01 for each eligible beverage container and would authorize
the department to expend up to $10,000,000 annually for the payment
of these recycling incentive payments, until the payment for
containers redeemed or collected by December 31, 2009, have been
paid, thereby making an appropriation.
The bill would authorize the department to expend up to $5,000,000
on a one-time basis, beginning January 1, 2007, in coordination with
the Department of Parks and Recreation for the purposes of
installing source separated beverage container recycling receptacles
at each of the state parks, starting with those parks that have the
highest day use. The bill would also authorize the department to
expend up to $5,000,000 from January 1, 2007, to January 1, 2008, to
provide grants to local governments or nonprofit agencies to place
multifamily housing source separated beverage container recycling
receptacles in low-income communities.
(8) Existing law authorizes the department to annually expend
$5,000,000 annually to undertake a statewide public education and
information campaign aimed at promoting increased recycling of
beverage containers.
The bill would additionally authorize the department to expend up
to $5,000,000, until January 1, 2008, to undertake a multilingual
multimedia statewide public education and information campaign.
(9) Existing law authorizes the department to pay a handling fee
of $0.018 per container to supermarket sites, nonprofit convenience
zone recyclers, and rural region recyclers to provide an incentive to
redeem beverage containers. Existing law authorizes the department
to pay a total of $30,000,000 in handling fees from July 1, 2004, to
June 30, 2005, and requires the department to expend $26,000,000 per
fiscal year thereafter. Existing law requires, as a condition of
eligibility for these payments, that the site or recycler redeem not
less than 60,000 beverage containers during the calendar month in
which the handling fee is paid, requires a beverage container with a
capacity of 24 ounces or more to be considered as 2 beverage
containers, and prohibits the amount of the total handling fee
payment to a site or recycler from exceeding $2,300 per month.
This bill would increase the total amount the department is
required to pay for handling fees, for the fiscal year commencing
July 1, 2005, up to $31,000,000, for the fiscal year commencing July
1, 2006, up to $33,000,000 and for the fiscal year commencing July 1,
2007, up to $35,000,000. The bill would provide that for each fiscal
year commencing July 1, 2008, the department would be authorized to
expend the amount necessary to pay the handling fees, thereby making
an appropriation.
The bill would, as of July 1, 2008, revise the eligibility
conditions for the payment of handling fees to eliminate that 60,000
minimum beverage container redemption requirement, the special
consideration for 24 ounce or more containers, and the $2,300 total
handling fee payment limit.
The bill would require the department, by January 1, 2008, and
every 2 years thereafter, to conduct a survey of certified recycling
centers receiving handling fee payments to determine the actual cost
for the redemption of beverage containers by those certified
recycling centers and, using this information, determine the
statewide weighted average cost for empty beverage containers, at
recycling centers that receive handling fees. The bill would require
the department to pay a handling fee, on and after July 1, 2008, in
an amount determined by subtracting the amount of the statewide
average per-container cost to redeem beverage containers incurred by
a certified recycler that does not receive a handling fee from the
statewide average per-container cost incurred by recycling centers
that receive handling fees.
(10) Item No. 3480-011-0133 of the Budget Act of 2002 and Item No.
3480-011-0133 of the Budget Act of 2003 transferred specified
amounts from the beverage container fund to the General Fund as a
loan and required those loans to be repaid by June 30, 2009.
This bill would instead require these loans to be fully repaid on
or before June 30, 2013.
(11) This bill would declare that it is to take effect immediately
as an urgency statute.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 14509.4 of the Public Resources Code is amended
to read:
14509.4. "Convenience zone" means either of the following:
(a) The area within a one-half mile radius of a supermarket.
(b) The area designated by the department pursuant to Section
14571.5.
SEC. 2. Section 14524 of the Public Resources Code is amended to
read:
14524. "Refund value" means the amount established for each type
of beverage container pursuant to Section 14560 that is paid by the
following:
(a) A certified recycling center to the consumer or dropoff or
collection center for each beverage container redeemed by the
consumer or dropoff or collection center. With respect to consumers
returning containers to recycling centers, the refund value shall not
be subject to tax under the Personal Income Tax Law (Part 10
(commencing with Section 17001) of Division 2 of the Revenue and
Taxation Code) or the Bank and Corporation Tax Law (Part 11
(commencing with Section 23001) of Division 2 of the Revenue and
Taxation Code).
(b) A processor to a certified recycling center, dropoff or
collection program, curbside program, or nonprofit dropoff program
for each beverage container received from the certified recycling
center, dropoff or collection program, curbside program, or nonprofit
dropoff program.
(c) The department to a processor, for every beverage container
received by the processor from a certified recycling center, curbside
program, dropoff or collection program, or nonprofit dropoff
program.
SEC. 3. Section 14536 of the Public Resources Code is amended to
read:
14536. (a) Except as provided in subdivision (b), the director
shall adopt, amend, or repeal all rules and regulations in accordance
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code.
(b) (1) The director shall adopt regulations, and may adopt
emergency regulations for the purposes of implementing Sections
14538, 14539, 14541, 14549.1, 14549.2, 14549.7, 14550, 14561, 14574,
14575, 14585, 14588.1, 14588.2, and 14591.
(2) Any emergency regulations, if adopted, shall be adopted in
accordance with Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, and for the
purposes of that chapter, including Section 11349.6 of the Government
Code, the adoption of these regulations is an emergency and shall be
considered by the Office of Administrative Law as necessary for the
immediate preservation of the public peace, health and safety, and
general welfare. Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
including subdivision (e) of Section 11346.1 of the Government Code,
any emergency regulations adopted pursuant to this section shall be
filed with, but not be repealed by, the Office of Administrative Law
and shall remain in effect until revised by the director.
SEC. 4. Section 14549.1 of the Public Resources Code is amended to
read:
14549.1. In order to improve the quality and marketability of
glass containers collected for recycling in the state by curbside
recycling programs, the department may, consistent with Section 14581
and subject to the availability of funds, pay a quality glass
incentive payment to either an operator of a curbside recycling
program registered pursuant to Section 14551.5, or to any other
entity certified pursuant to this division, that color sorts glass
beverage containers for recycling. The total amount paid by the
department pursuant to this section shall not exceed three million
dollars ($3,000,000) per calendar year. The department shall make a
quality glass incentive payment based on all of the following:
(a) The amount of the quality glass incentive payment shall be up
to thirty dollars ($30) per ton, as determined by the department.
(b) The department shall make a quality glass incentive payment
only for color-sorted glass beverage containers that are
substantially free of contamination.
(c) The department shall make a quality glass incentive payment
only for glass beverage containers that are either collected color
sorted by curbside recycling programs, or collected commingled by
curbside recycling programs and subsequently color sorted by the
collector or any other entity certified pursuant to this division.
(d) Only one payment shall be made for each color-sorted glass
beverage container collected.
(e) This section shall remain in effect until January 1, 2007, and
as of that date is repealed, unless a later enacted statute, which
is enacted before January 1, 2007, deletes or extends that date.
SEC. 5. Section 14549.1 is added to the Public Resources Code, to
read:
14549.1. (a) In order to improve the quality and marketability of
empty beverage containers collected for recycling in the state by
curbside recycling programs or dropoff or collection programs, the
department may, consistent with Section 14581 and subject to the
availability of funds, pay a quality incentive payment for each
material type, as specified in subdivision (c).
(b) The department may make a quality incentive payment pursuant
to this section to either an operator of a curbside recycling program
registered pursuant to Section 14551.5, or to any other entity
certified pursuant to this division.
(c) Subject to subdivision (a), the department shall pay a quality
incentive payment for each type of beverage container material in
accordance with the following conditions:
(1) For quality incentive payments for empty glass beverage
containers, all of the following shall apply:
(A) The department may make a quality incentive payment only for
color-sorted glass beverage containers that are substantially free of
contamination.
(B) The department may make a quality incentive payment for empty
glass beverage containers that are either collected color sorted by
curbside recycling programs or dropoff or collection programs, or
that are collected mixed color by curbside recycling programs or
dropoff or collection programs and are subsequently color sorted by
the collector or any other entity certified pursuant to this
division.
(C) The amount of the quality incentive payment for empty glass
beverage containers shall be up to sixty dollars ($60) per ton, as
determined by the department.
(2) For quality incentive payments for empty plastic beverage
containers, both of the following shall apply:
(A) The department may make a quality incentive payment only for
plastic beverage containers collected by curbside recycling programs
or dropoff or collection programs, that are sorted by resin type,
consistent with any quality specifications that the department may
adopt.
(B) The amount of the quality plastic incentive payment shall be
up to one hundred eighty dollars ($180) per ton, as determined by the
department.
(3) For quality payments for empty aluminum beverage containers,
all of the following shall apply:
(A) The department may make a quality incentive payment only for
aluminum beverage containers that are free of any and all metallic
and nonmetallic items, other than used aluminum containers.
(B) The department may make a quality incentive payment for empty
aluminum beverage containers that are collected commingled by
curbside recycling programs or dropoff or collection programs, and
subsequently cleaned by the collector or any other entity certified
pursuant to this division, of any and all metallic and nonmetallic
items, other than used aluminum containers, consistent with any
quality specifications that the department may adopt.
(C) The amount of the quality incentive payment for empty aluminum
beverage containers shall be up to one hundred twenty-five dollars
($125) per ton, as determined by the department.
(d) An operator of a curbside recycling program or any other
certified entity receiving a quality incentive payment shall make
available for inspection and review any relevant record that the
department determines is necessary to verify the accuracy of data
upon which the quality incentive payment is based and the operator's
or certified entity's compliance with any applicable regulation.
(e) The department may make only one quality incentive payment for
each empty beverage container collected pursuant to this section.
(f) This section shall become operative on January 1, 2007.
SEC. 6. Section 14549.2 is added to the Public Resources Code, to
read:
14549.2. (a) For purposes of this section, the following
definitions shall apply:
(1) "Certified entity" means a recycling center, processor, or
dropoff or collection program certified pursuant to this division.
(2) "Product manufacturer" means any person who manufactures a
plastic product in this state.
(b) In order to develop California markets for empty plastic
beverage containers collected for recycling in the state, the
department may, consistent with Section 14581 and subject to the
availability of funds, pay a market development payment to a
certified entity or product manufacturer for empty plastic beverage
containers collected and managed pursuant to this section.
(c) The department shall make a market development payment to a
certified entity or product manufacturer in accordance with this
section, only if the plastic beverage container is collected and
either recycled or used in manufacturing, in the state, as follows:
(1) The department shall make a market development payment to a
certified entity for empty plastic beverage containers that are
collected for recycling in the state, that are subsequently washed
and processed by a certified entity into a flake, pellet, or other
form in the state, and made usable for the manufacture of a plastic
product by a product manufacturer.
(2) The department shall make a market development payment to a
product manufacturer for empty plastic beverage containers that are
collected for recycling in the state, that are subsequently washed
and processed into a flake, pellet or other form in the state, and
used by that product manufacturer to manufacture a product in this
state.
(3) The department shall determine the amount of the market
development payment, which may be set at a different level for a
certified entity and a product manufacturer, but shall not exceed one
hundred fifty dollars ($150) per ton.
(4) The department may make a market development payment to both a
certified entity and a product manufacturer for the same empty
plastic beverage container.
(d) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.
SEC. 7. Section 14549.7 is added to the Public Resources Code, to
read:
14549.7. (a) Commencing on January 1, 2007, and consistent with
Section 14581, and to the extent that existing funds are available
for this purpose, the department shall establish a recycling
incentive payment for eligible recycling centers and dropoff or
collection programs for empty beverage containers accepted or
collected directly from consumers.
(b) To be eligible for recycling incentive payments, a recycling
center, or dropoff or collection program shall meet both of the
following requirements:
(1) (A) The recycling center or dropoff or collection program is
certified, and "open for business," as specified in Section 14571,
during the entire two-year period prior to the six-month period for
which payments are made, during the entire six-month period for which
payments are made, and at the time the payment is made. A six-month
period shall commence either on January 1 or July 1.
(B) Notwithstanding subparagraph (A), a recycling center or
dropoff or collection program that was operational prior to July 1,
2005, may receive a recycling incentive payment for eligible beverage
containers collected on or after January 1, 2007.
(2) The number of beverage containers accepted or collected
directly from consumers for recycling by the recycling center or
dropoff or collection program during the six-month period for which
payments are made exceeds by 6.5 percent, or more, for calendar year
2007, and by 5 percent, or more, for calendar years 2008 and 2009,
the number of beverage containers accepted or collected directly from
consumers for recycling by that entity during the same six-month
period of the prior year.
(c) (1) Eligible beverage containers are those beverage containers
that are accepted or collected directly from consumers for recycling
by an eligible recycling center or dropoff or collection program
during the six-month period for which payments are made that exceed
the number of beverage containers accepted or collected directly from
consumers by that entity in the same six-month period of the prior
year. Eligible beverage containers determined pursuant to this
paragraph shall be the "eligible volume" used to make payments
pursuant to paragraph (4) of subdivision (d).
(2) Empty beverage containers purchased or collected by a
recycling center or a dropoff or collection program from another
certified or registered entity are not eligible for recycling
incentive payments.
(d) The department shall make recycling incentive payments for
each eligible beverage container accepted or collected directly from
consumers by an eligible recycling center and dropoff or collection
program and properly reported to the department by a processor, based
upon all of the following:
(1) The payment amount shall be calculated based upon the number
of eligible beverage containers, as specified in subdivision (c),
collected by the eligible recycling centers and dropoff or collection
program, as specified in subdivision (b), during the six-month
period for which the payments are to be made.
(2) The per-container rate shall be up to one cent ($0.01) for
each eligible beverage container, pursuant to subdivision (c).
(3) The amount to be paid to each recycling center and dropoff or
collection program shall be based upon the per-container rate,
multiplied by each eligible program's total number of eligible
beverage containers calculated pursuant to paragraph (1).
(e) The department shall disburse payments pursuant to this
section within 6 months of the end of the six-month period for which
the payments are calculated pursuant to paragraph (1) of subdivision
(d), subject to the availability of funds.
(f) Only one payment shall be made for each eligible empty
beverage container collected by an eligible recycling center or
dropoff or collection program.
(g) The operator of an eligible recycling center and dropoff or
collection program shall make available for inspection and review any
relevant record that the department determines is necessary to
verify compliance with this section.
(h) This section shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2010, deletes or extends
that date.
SEC. 8. Section 14560 of the Public Resources Code is amended to
read:
14560. (a) (1) Except as provided in paragraph (3), a beverage
distributor shall pay the department, for deposit into the fund, a
redemption payment of four cents ($0.04) for a beverage container
sold or offered for sale in this state by the distributor.
(2) A beverage container with a capacity of 24 fluid ounces or
more shall be considered as two beverage containers for purposes of
redemption payments paid pursuant to paragraph (1).
(3) On and after July 1, 2007, the amount of the redemption
payment and refund value for a beverage container with a capacity of
less than 24 fluid ounces sold or offered for sale in this state by a
dealer shall equal five cents ($0.05) and the amount of redemption
payment and refund value for a beverage container with a capacity of
24 fluid ounces or more shall be ten cents ($0.10), if the aggregate
recycling rate reported pursuant to Section 14551 for all beverage
containers subject to this division is less than 75 percent for the
12-month reporting period from January 1, 2006, to December 31, 2006,
or for any calendar year thereafter.
(b) Except as provided in subdivision (c), a beverage container
sold or offered for sale in this state has a refund value of four
cents ($0.04) if the beverage container has a capacity of less than
24 fluid ounces and eight cents ($0.08) if the beverage container has
a capacity of 24 fluid ounces or more.
(c) Notwithstanding subdivision (b), the department may, on and
after January 1, 2007, but not after July 1, 2007, increase the
amount of the refund value specified in subdivision (b), by no more
than one cent ($0.01), if the container has a capacity of less than
24 fluid ounces, and by two cents ($0.02) if the container has a
capacity of 24 fluid ounces or more, if the department determines, as
specified in subdivision (f) of Section 14581, there are sufficient
moneys remaining in the fund to make these increased payments.
(d) (1) The department shall periodically review the fund to
ensure that there are adequate funds in the fund to pay refund values
and other disbursements required by this division.
(2) If the department determines, pursuant to a review made
pursuant to paragraph (1), that there may be inadequate funds to pay
the refund values and necessary disbursements required by this
division, the department shall immediately notify the Legislature of
the need for urgent legislative action.
(3) On or before 180 days after the notice is sent pursuant to
paragraph (2), the department may reduce or eliminate expenditures,
or both, from the fund as necessary, according to the procedure set
forth in Section 14581, to ensure that there are adequate funds in
the fund to pay the refund values and other disbursements required by
this division.
(e) This section does not apply to a refillable beverage
container.
(f) The repeal and reenactment of this section by Chapter 815 of
the Statutes of 1999 do not affect any obligations or penalties
imposed by this section, as it read on January 1, 1999.
SEC. 9. Section 14571.5 is added to the Public Resources Code, to
read:
14571.5. The department may, in a rural region, as identified
pursuant to subparagraph (A) of paragraph (2) of subdivision (b) of
Section 14571, upon petition by an interested person, do either of
the following:
(a) (1) Increase a convenience zone to include the area within a
three-mile radius of a supermarket, if the expanded convenience zone
would then be served by a single existing certified recycling center
or location.
(2) This subdivision applies only to a convenience zone that is
otherwise not being served by a certified recycling center or
location meeting the requirements of Section 14571 or is exempted by
the department pursuant to Section 14571.8.
(b) (1) Designate a convenience zone pursuant to Section 14571.1
in an area where there is no supermarket, but with two or more
dealers located within a one-mile radius of each other, and that
meets all of the following criteria:
(A) The dealers in that area have combined gross annual sales of
two million dollars ($2,000,000) or more, as certified by the
petitioner in an affidavit filed with the petition.
(B) The convenience zone encompasses a three-mile radius, with the
center of the zone established at the dealer, located closest to the
existing recycling center specified in subparagraph (D).
(C) The convenience zone does not overlap any other existing
convenience zone.
(D) The convenience zone is served by a single existing certified
recycling center.
(2) The department shall identify the dealer locations only for
the purpose of providing a reference point in the establishment of
the convenience zone pursuant to this subdivision.
(3) If the existing recycling location in a convenience zone
designated pursuant to this subdivision ceases operations, the
convenience zone shall also cease to exist until a new recycling
location is established, and the department is petitioned by an
interested person to designate a convenience zone.
SEC. 10. Section 14574 of the Public Resources Code is amended to
read:
14574. (a) (1) A distributor of beverage containers shall pay to
the department the redemption payment for every beverage container,
other than a refillable beverage container, sold or transferred to a
dealer, less 1.5 percent for the distributor's administrative costs.
(2) The payment made by a distributor shall be made not later than
the last day of the third month following the sale. The distributor
shall make the payment in the form and manner that the department
prescribes.
(b) (1) Notwithstanding subdivision (a), if a distributor displays
a pattern of operation in compliance with this division and the
regulations adopted pursuant to this division, to the satisfaction of
the department, the distributor may make a single annual payment of
redemption payments, if the distributor meets either of the following
requirements:
(A) If the redemption payment and refund value is not increased
pursuant to paragraph (3) of subdivision (a) of Section 14560, the
distributor's projected redemption payment for a calendar year totals
less than fifty thousand dollars ($50,000).
(B) If the redemption payment and refund value is increased
pursuant to paragraph (3) of subdivision (a) of Section 14560, the
distributor's projected redemption payment for a calendar year totals
less than seventy-five thousand dollars ($75,000).
(2) An annual redemption payment made pursuant to this subdivision
is due and payable on or before February 1 for every beverage
container sold or transferred by the distributor to a dealer in the
previous calendar year.
(3) A distributor shall notify the department of its intent to
make an annual redemption payment pursuant to this subdivision on or
before January 31 of the calendar year for which the payment will be
due.
SEC. 11. Section 14575 of the Public Resources Code is amended to
read:
14575. (a) If any type of empty beverage container with a refund
value established pursuant to Section 14560 has a scrap value less
than the cost of recycling, the department shall, on January 1, 2000,
and on or before January 1 annually thereafter, establish a
processing fee and a processing payment for the container by the type
of the material of the container.
(b) The processing payment shall be at least equal to the
difference between the scrap value offered to a statistically
significant sample of recyclers by willing purchasers, and except for
the initial calculation made pursuant to subdivision (d), the sum of
both of the following:
(1) The actual cost for certified recycling centers, excluding
centers receiving a handling fee, of receiving, handling, storing,
transporting, and maintaining equipment for each container sold for
recycling or, only if the container is not recyclable, the actual
cost of disposal, calculated pursuant to subdivision (c). The
department shall determine the statewide weighted average cost to
recycle each beverage container type, which shall serve as the actual
recycling costs for purposes of paragraphs (2) and (3) of
subdivision (c), by conducting a survey of the costs of a
statistically significant sample of certified recycling centers,
excluding those recycling centers receiving a handling fee, for
receiving, handling, storing, transporting, and maintaining
equipment.
(2) A reasonable financial return for recycling centers.
(c) The department shall base the processing payment pursuant to
this section upon all of the following:
(1) The department shall use the average scrap values paid to
recyclers between October 1, 2001, and September 30, 2002, for the
2003 calculation and the same 12-month period directly preceding the
year in which the processing fee is calculated for any subsequent
calculation.
(2) To calculate the 2003 processing payments, the department
shall use the recycling costs for certified recycling centers used to
calculate the January 1, 2002, processing payments.
(3) For calculating processing payments that will be in effect on
and after January 1, 2004, the department shall determine the actual
costs for certified recycling centers, every second year, pursuant to
paragraph (1) of subdivision (b). The department shall adjust the
recycling costs annually to reflect changes in the cost of living, as
measured by the Bureau of Labor Statistics of the United States
Department of Labor or a successor agency of the United States
government.
(d) Notwithstanding paragraph (1) of subdivision (b) and
subdivision (c), for the purpose of setting the cost for recycling
non polyethylene terephthalate (non-PET) plastic containers by
certified recycling centers to determine the processing payment for
those containers, the department shall use a recycling cost of six
hundred forty-two dollars and sixty-nine cents ($642.69) per ton for
the January 1, 2002, calculation of the processing payment.
(e) Except as specified in subdivision (f), the actual processing
fee paid by a beverage manufacturer shall equal 65 percent of the
processing payment calculated pursuant to subdivision (b).
(f) The department, consistent with Section 14581 and subject to
the availability of funds, shall reduce the processing fee paid by
beverage manufacturers by expending funds in each material processing
fee account, in the following manner:
(1) The processing fee in effect on January 1, 2004, shall be
equal to the following amounts:
(A) For a container type that was subject to this division on
January 1, 1999, 12 percent of the processing payment if the
recycling rate of that container type was equal to, or greater than,
60 percent for the 1999 calendar year.
(B) For a container type that was not subject to this division on
January 1, 1999, 12 percent of the processing payment, if the
recycling rate of that container type was equal to, or greater than,
60 percent for the 2001 calendar year.
(C) For a container type that was not subject to this division on
January 1, 1999, 15 percent of the processing payment if the
recycling rate for that container type was equal to, or greater than,
45 percent, but less than 60 percent for the 2001 calendar year.
(D) For a container type that was not subject to this division on
January 1, 1999, 20 percent of the processing payment if the
recycling rate for that container type was equal to, or greater than,
30 percent, but less than
45 percent, for the 2001 calendar year.
(2) On January 1, 2005, and annually thereafter, the processing
fee shall equal the following amounts:
(A) Ten percent of the processing payment for a container type
with a recycling rate equal to or greater than 75 percent.
(B) Eleven percent of the processing payment for a container type
with a recycling rate equal to or greater than 65 percent, but less
than 75 percent.
(C) Twelve percent of the processing payment for a container type
with a recycling rate equal to or greater than 60 percent, but less
than 65 percent.
(D) Thirteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 55 percent, but
less than 60 percent.
(E) Fourteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 50 percent, but
less than 55 percent.
(F) Fifteen percent of the processing payment for a container type
with a recycling rate equal to or greater than 45 percent, but less
than 50 percent.
(G) Eighteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 40 percent, but
less than 45 percent.
(H) Twenty percent of the processing payment for a container type
with a recycling rate equal to or greater than 30 percent, but less
than 40 percent.
(I) Sixty-five percent of the processing payment for a container
type with a recycling rate less than 30 percent.
(3) Notwithstanding this section, for calendar year 2007 only, the
department shall reduce to zero the processing fee paid for any
container type with a recycling rate equal to, or greater than 40
percent.
(4) The department shall calculate the recycling rate for purposes
of paragraphs (2) and (3) based on the 12-month period ending on
June 30 that directly precedes the date of the January 1 processing
fee determination.
(g) Not more than once every three months, the department may make
an adjustment in the amount of the processing payment established
pursuant to this section notwithstanding any change in the amount of
the processing fee established pursuant to this section, for any
beverage container, if the department makes the following
determinations:
(1) The statewide scrap value paid by processors for the material
type for the most recent available 12-month period directly preceding
the quarter in which the processing payment is to be adjusted is 5
percent more or 5 percent less than the average scrap value used as
the basis for the processing payment currently in effect.
(2) Funds are available in the processing fee account for the
material type.
(3) Adjusting the processing payment is necessary to further the
objectives of this division.
(h) (1) Except as provided in paragraphs (2) and (3), every
beverage manufacturer shall pay to the department the applicable
processing fee for each container sold or transferred to a
distributor or dealer within 40 days of the sale in the form and in
the manner which the department may prescribe.
(2) (A) Notwithstanding Section 14506, with respect to the payment
of processing fees for beer and other malt beverages manufactured
outside the state, the beverage manufacturer shall be deemed to be
the person or entity named on the certificate of compliance issued
pursuant to Section 23671 of the Business and Professions Code. If
the department is unable to collect the processing fee from the
person or entity named on the certificate of compliance, the
department shall give written notice by certified mail, return
receipt requested, to that person or entity. The notice shall state
that the processing fee shall be remitted in full within 30 days of
issuance of the notice or the person or entity shall not be permitted
to offer that beverage brand for sale within the state. If the
person or entity fails to remit the processing fee within 30 days of
issuance of the notice, the department shall notify the Department of
Alcoholic Beverage Control that the certificate holder has failed to
comply, and the Department of Alcoholic Beverage Control shall
prohibit the offering for sale of that beverage brand within the
state.
(B) The department shall enter into a contract with the Department
of Alcoholic Beverage Control, pursuant to Section 14536.5,
concerning the implementation of this paragraph, which shall include
a provision reimbursing the Department of Alcoholic Beverage Control
for its costs incurred in implementing this paragraph.
(3) (A) Notwithstanding paragraph (1), if a beverage manufacturer
displays a pattern of operation in compliance with this division and
the regulations adopted pursuant to this division, to the
satisfaction of the department, the beverage manufacturer may make a
single annual payment of processing fees, if the beverage
manufacturer meets either of the following conditions:
(i) If the redemption payment and refund value is not increased
pursuant to paragraph (3) of subdivision (a) of Section 14560, the
beverage manufacturer's projected processing fees for a calendar year
total less than ten thousand dollars ($10,000).
(ii) If the redemption payment and refund value is increased
pursuant to paragraph (3) of subdivision (a) of Section 14560, the
beverage manufacturer's projected processing fees for a calendar year
total less than fifteen thousand dollars ($15,000).
(B) An annual processing fee payment made pursuant to this
paragraph is due and payable on or before February 1 for every
beverage container sold or transferred by the beverage manufacturer
to a distributor or dealer in the previous calendar year.
(C) A beverage manufacturer shall notify the department of its
intent to make an annual processing fee payment pursuant to this
paragraph on or before January 31 of the calendar year for which the
payment will be due.
(4) The department shall pay the processing payments on redeemed
containers to processors, in the same manner as it pays refund values
pursuant to Sections 14573 and 14573.5. The processor shall pay the
recycling center the entire processing payment representing the
actual costs and financial return incurred by the recycling center,
as specified in subdivision (b).
(i) When assessing processing fees pursuant to subdivision (a),
the department shall assess the processing fee on each container
sold, as provided in subdivisions (e) and (f), by the type of
material of the container, assuming that every container sold will be
redeemed for recycling, whether or not the container is actually
recycled.
(j) The container manufacturer, or a designated agent, shall pay
to, or credit, the account of the beverage manufacturer in an amount
equal to the processing fee.
(k) If, at the end of any calendar year for which glass recycling
rates equal or exceed 45 percent and sufficient surplus funds remain
in the glass processing fee account to make the reduction pursuant to
this subdivision or if, at the end of any calendar year for which
PET recycling rates equal or exceed 45 percent and sufficient surplus
funds remain in the PET processing fee account to make the reduction
pursuant to this subdivision, the department shall use these surplus
funds in the respective processing fee accounts in the following
calendar year to reduce the amount of the processing fee that would
otherwise be due from glass or PET beverage manufacturers pursuant to
this subdivision.
(1) The department shall reduce the glass or PET processing fee
amount pursuant to this subdivision in addition to any reduction for
which the glass or PET beverage container qualifies under subdivision
(f).
(2) The department shall determine the processing fee reduction by
dividing two million dollars ($2,000,000) from each processing fee
account by an estimate of the number of containers sold or
transferred to a distributor during the previous calendar year, based
upon the latest available data.
SEC. 12. Section 14581 of the Public Resources Code is amended to
read:
14581. (a) Subject to the availability of funds, and pursuant to
subdivision (c), the department shall expend the moneys set aside in
the fund, pursuant to subdivision (c) of Section 14580, for the
purposes of this section:
(1) (A) On and after July 1, 2005, to June 30, 2006, inclusive, up
to thirty-one million dollars ($31,000,000) may be expended for that
fiscal year for the payment of handling fees pursuant to Section
14585.
(B) On and after July 1, 2006, to June 30, 2007, inclusive, up to
thirty-three million dollars ($33,000,000) may be expended for that
fiscal year for the payment of handling fees pursuant to Section
14585.
(C) On and after July 1, 2007, to June 30, 2008, inclusive, up to
thirty-five million dollars ($35,000,000) may be expended for that
fiscal year for the payment of handling fees pursuant to Section
14585.
(D) For each fiscal year commencing July 1, 2008, the department
may expend the amount necessary to make the required handling fee
payment pursuant to Section 14585.
(2) Fifteen million dollars ($15,000,000) shall be expended
annually for payments for curbside programs and neighborhood dropoff
programs pursuant to Section 14549.6.
(3) (A) Fifteen million dollars ($15,000,000), plus the
proportional share of the cost-of-living adjustment, as provided in
subdivision (b), shall be expended annually in the form of grants for
beverage container litter reduction programs and recycling programs
issued to either of the following:
(i) Certified community conservation corps that were in existence
on September 30, 1999, or that are formed subsequent to that date,
that are designated by a city or a city and county to perform litter
abatement, recycling, and related activities, if the city or the city
and county has a population, as determined by the most recent
census, of more than 250,000 persons.
(ii) Community conservation corps that are designated by a county
to perform litter abatement, recycling, and related activities, and
are certified by the California Conservation Corps as having operated
for a minimum of two years and as meeting all other criteria of
Section 14507.5.
(B) Any grants provided pursuant to this paragraph shall not
comprise more than 75 percent of the annual budget of a community
conservation corps.
(C) The community conservation corps issued grants pursuant to
clause (ii) of subparagraph (A) shall also meet the criteria of
Section 14507.6, if Assembly Bill 3038 of the Regular Session of the
Legislature is enacted and adds Section 14507.6 to the Public
Resources Code.
(4) (A) On or after July 1, 2007, until June 30, 2008, for only
that fiscal year, up to twenty million dollars ($20,000,000) may be
expended in the form of competitive grants issued to community
conservation corps that are designated by a city, or county and that
meet all of the following criteria:
(i) Are certified by the California Conservation Corps as having
operated for a minimum of two years.
(ii) Meet all other requirements under Section 14507.5.
(B) The department shall prepare and adopt criteria and procedures
for evaluating grant applications on a competitive basis. Eligible
activities for the use of these funds shall include developing new
projects, or enhancing or assisting existing projects, to increase
beverage container recycling and increasing the quality of recycled
material at the following locations:
(1) Multi-family dwellings.
(2) Schools.
(3) Commercial, state, and local government buildings.
(4) Bars, restaurants, hotels, and lodging establishments, and
entertainment venues.
(5) Parks and beaches.
(C) Any grants provided pursuant to this paragraph shall not
comprise more than 75 percent of the annual budget of a community
conservation corps.
(D) Any grants provided pursuant to this paragraph shall support
one-time capital improvement projects and shall not be used to
support ongoing staff activities.
(E) Any grant funds appropriated pursuant to this paragraph that
have not been awarded to a grantee prior to the end of the 2007-08
fiscal year shall revert to the fund.
(5) Ten million five hundred thousand dollars ($10,500,000) may be
expended annually for payments of five thousand dollars ($5,000) to
cities and ten thousand dollars ($10,000) for payments to counties
for beverage container recycling and litter cleanup activities, or
the department may calculate the payments to counties and cities on a
per capita basis, and may pay whichever amount is greater, for those
activities.
(B) Eligible activities for the use of these funds may include,
but are not necessarily limited to, support for new or existing
curbside recycling programs, neighborhood dropoff recycling programs,
public education-promoting beverage container recycling, litter
prevention, and cleanup, cooperative regional efforts among two or
more cities or counties, or both, or other beverage container
recycling programs.
(C) These funds may not be used for activities unrelated to
beverage container recycling or litter reduction.
(D) To receive these funds, a city, county, or city and county
shall fill out and return a funding request form to the Department of
Conservation. The form shall specify the beverage container
recycling or litter reduction activities for which the funds will be
used.
(E) The Department of Conservation shall annually prepare and
distribute a funding request form to each city, county, or city and
county. The form shall specify the amount of beverage container
recycling and litter cleanup funds for which the jurisdiction is
eligible. The form shall not exceed one double-sided page in length,
and may be submitted electronically. If a city, county, or city and
county does not return the funding request form within 90 days of
receipt of the form from the department, the city, county, or city
and county is not eligible to receive the funds for that funding
cycle.
(F) For the purposes of this paragraph, per capita population
shall be based on the population of the incorporated area of a city
or city and county and the unincorporated area of a county. The
department may withhold payment to any city, county, or city and
county that has prohibited the siting of a supermarket site, caused a
supermarket site to close its business, or adopted a land use policy
that restricts or prohibits the siting of a supermarket site within
its jurisdiction.
(6) One million five hundred thousand dollars ($1,500,000) may be
expended annually in the form of grants for beverage container
recycling and litter reduction programs.
(7) (A) The department shall expend the amount necessary to pay
the processing payment and supplemental processing payment
established pursuant to Sections 14575 and 14575.5 and pay processing
fee rebates pursuant to Section 14575.2. The department shall
establish separate processing fee accounts in the fund for each
beverage container material type for which a processing payment and
processing fee are calculated pursuant to Section 14575, or for which
a processing payment is calculated pursuant to Section 14575 and a
voluntary artificial scrap value is calculated pursuant to Section
14575.1, into which account shall be deposited all of the following:
(i) All amounts paid as processing fees for each beverage
container material type pursuant to Section 14575.
(ii) Funds equal to the difference between the amount in clause
(i) and the amount of the processing payments established in
subdivision (b) of Section 14575, and adjusted pursuant to paragraphs
(2) and (3) of subdivision (c) of, and subdivision (f) of, Section
14575, to reduce the processing fee to the level provided in
subdivision (f) of Section 14575, or to reflect the agreement by a
willing purchaser to pay a voluntary artificial scrap value pursuant
to Section 14575.1.
(iii) Funds equal to an amount sufficient to pay the total amount
of the supplemental processing payments established pursuant to
Section 14575.5.
(B) Notwithstanding Section 13340 of the Government Code, the
money in each processing fee account is hereby continuously
appropriated to the department for expenditure without regard to
fiscal years, for purposes of making processing payments and
supplemental processing payments, and reducing processing fees,
pursuant to Sections 14575 and 14575.5 and paying processing fee
rebates pursuant to Section 14575.2.
(8) Up to five million dollars ($5,000,000) may be annually
expended by the department for the purposes of undertaking a
statewide public education and information campaign aimed at
promoting increased recycling of beverage containers.
(9) Until January 1, 2008, the department may expend up to five
million dollars ($5,000,000) for the purposes of undertaking a
statewide public education and information campaign aimed at
promoting increased recycling of beverage containers that meets both
of the following requirements:
(A) The public education and information campaign is multimedia
and includes print, radio, and television.
(B) The public education and information campaign is multilingual.
(10) (A) Until January 1, 2007, up to three million dollars
($3,000,000) shall be expended annually for the payment of quality
glass incentive payments pursuant to Section 14549.1.
(B) On and after January 1, 2007, up to fifteen million dollars
($15,000,000) may be expended annually by the department for quality
incentive payments for empty beverage containers pursuant to Section
14549.1.
(11) Up to twenty million dollars ($20,000,000) may be expended
annually by the department, until January 1, 2012, to issue grants
for recycling market development and expansion-related activities
aimed at increasing the recycling of beverage containers, including,
but not limited to, the following:
(A) Research and development of collecting, sorting, processing,
cleaning, or otherwise upgrading the market value of recycled
beverage containers.
(B) Identification, development, and expansion of markets for
recycled beverage containers.
(C) Research and development for products manufactured using
recycled beverage containers.
(D) Research and development to provide high-quality materials
that are substantially free of contamination.
(E) Payments to California manufacturers who recycle beverage
containers that are marked by resin type identification code "3," "4,"
"5," "6," or "7," pursuant to Section 18015.
(12) Up to ten million dollars ($10,000,000) may be transferred on
a one-time basis by the department to the Recycling Infrastructure
Loan Guarantee Account, for expenditure pursuant to Section 14582.
(13) Up to ten million dollars ($10,000,000) may be expended
annually by the department for the payment of recycling incentive
payments pursuant to Section 14549.7 until payments for eligible
beverage containers redeemed or collected for recycling on or before
December 31, 2009, have been paid.
(14) Up to five million dollars ($5,000,000) may be expended
annually by the department for market development payments for empty
plastic beverage containers pursuant to Section 14549.2, until
January 1, 2012.
(15) Up to five million dollars ($5,000,000) may be expended, by
the department, on a one-time basis beginning on January 1, 2007, in
coordination with the Department of Parks and Recreation for the
purposes of installing source separated beverage container recycling
receptacles at each of the state parks, starting with those parks
that have the highest day use.
(16) Up to five million dollars ($5,000,000) may be expended, from
January 1, 2007, to January 1, 2008, to provide grants to local
governments or nonprofit agencies to place multifamily housing source
separated beverage container recycling receptacles in low-income
communities.
(b) The fifteen million dollars ($15,000,000) that is set aside
pursuant to paragraph (3) of subdivision (a) is a base amount that
the department shall adjust annually to reflect any increases or
decreases in the cost of living, as measured by the Department of
Labor, or a successor agency, of the federal government.
(c) (1) The department shall review all funds on a quarterly basis
to ensure that there are adequate funds to make the payments
specified in this section and the processing fee reductions required
pursuant to Section 14575.
(2) If the department determines, pursuant to a review made
pursuant to paragraph (1), that there may be inadequate funds to pay
the payments required by this section and the processing fee
reductions required pursuant to Section 14575, the department shall
immediately notify the appropriate policy and fiscal committees of
the Legislature regarding the inadequacy.
(3) On or before 180 days after the notice is sent pursuant to
paragraph (2), the department may reduce or eliminate expenditures,
or both, from the funds as necessary, according to the procedure set
forth in subdivision (d).
(d) If the department determines that there are insufficient funds
to make the payments specified pursuant to this section and Section
14575, the department shall reduce all payments proportionally.
(e) Prior to making an expenditure pursuant to paragraph (7) of
subdivision (a), the department shall convene an advisory committee
consisting of representatives of the beverage industry, beverage
container manufacturers, environmental organizations, the recycling
industry, nonprofit organizations, and retailers, to advise the
department on the most cost-effective and efficient method of the
expenditure of the funds for that education and information campaign.
(f) After setting aside money for the expenditures required
pursuant to subdivisions (a) and (b) and Section 14580, the
department may, on and after January 1, 2007, but not after July 1,
2007, expend remaining moneys in the fund to pay a refund value in an
amount greater than the refund value established pursuant to
subdivision (b) of Section 14560.
SEC. 13. Section 14585 of the Public Resources Code is amended to
read:
14585. (a) The department shall adopt guidelines and methods for
paying handling fees to supermarket sites, nonprofit convenience zone
recyclers, or rural region recyclers to provide an incentive for the
redemption of empty beverage containers in convenience zones. The
guidelines shall include, but not be limited to, all of the
following:
(1) Handling fees shall be paid on a monthly basis, in the form
and manner adopted by the department. The department shall require
that claims for the handling fee be filed with the department not
later than the first day of the second month following the month for
which the handling fee is claimed as a condition of receiving any
handling fee.
(2) (A) To be eligible for any handling fee, a supermarket site
recycling center, nonprofit convenience zone recycler, or rural
region recycler shall redeem not less than 60,000 beverage
containers, during the calendar month in which the handling fee is
claimed or have redeemed not less than an average of 60,000 beverage
containers per month during the previous 12 months.
(B) Subparagraph (A) shall not apply on and after July 1, 2008.
(3) (A) A beverage container with a capacity of 24 fluid ounces or
more shall be considered as two beverage containers for purposes of
determining the eligibility percentage, any handling fee
calculations, and payments.
(B) Subparagraph (A) shall not apply on and after July 1, 2008.
(4) The department shall determine the number of eligible
containers per site for which a handling fee will be paid in the
following manner:
(A) Each eligible site's combined monthly volume of glass and
plastic beverage containers shall be divided by the site's total
monthly volume of all empty beverage container types.
(B) If the quotient determined pursuant to subparagraph (A) is
equal to, or more than, 10 percent, the total monthly volume of the
site shall be the maximum volume which is eligible for a handling fee
for that month.
(C) If the quotient determined pursuant to subparagraph (A) is
less than 10 percent, the department shall divide the volume of glass
and plastic beverage containers by 10 percent. That quotient shall
be the maximum volume that is eligible for a handling fee for that
month.
(5) (A) From the effective date of the statute enacted by Assembly
Bill 3056 of the 2005-06 Regular Session to June 30, 2008,
inclusive, the department shall pay a handling fee of 1.8 cents
($0.018) per eligible beverage container, as determined pursuant to
paragraph (4).
(B) On and after July 1, 2008, the department shall pay a handling
fee per eligible container in the amount determined pursuant to
subdivision (f).
(6) (A) Notwithstanding paragraph (5), the total handling fee
payment to a supermarket site, nonprofit convenience zone recycler,
or rural region recycler shall not exceed two thousand three hundred
dollars ($2,300) per month.
(B) Subparagraph (A) shall not apply on and after July 1, 2008.
(7) If the eligible volume in any given month would result in
handling fee payments that exceed the allocation of funds for that
month, as provided in subdivision (b), sites with higher eligible
monthly volumes shall receive handling fees for their entire eligible
monthly volume before sites with lower eligible monthly volumes
receive any handling fees.
(8) (A) If a dealer where a supermarket site, nonprofit
convenience zone recycler, or rural region recycler is located ceases
operation for remodeling or for a change of ownership, the operator
of that supermarket site nonprofit convenience zone recycler, or
rural region recycler shall be eligible to apply for handling fees
for that site for a period of three months following the date of the
closure of the dealer.
(B) Every supermarket site operator, nonprofit convenience zone
recycler, or rural region recycler shall promptly notify the
department of the closure of the dealer where the supermarket site,
nonprofit convenience zone recycler, or rural region recycler is
located.
(C) Notwithstanding subparagraph (A), any operator who fails to
provide notification to the department pursuant to subparagraph (B)
shall not be eligible to apply for handling fees.
(b) The department may allocate the amount authorized for
expenditure for the payment of handling fees pursuant to paragraph
(1) of subdivision (a) of Section 14581 on a monthly basis and may
carry over any unexpended monthly allocation to a subsequent month or
months. However, unexpended monthly allocations shall not be carried
over to a subsequent fiscal year for
the purpose of paying handling fees but may be
carried over for any other purpose pursuant to Section 14581.
(c) (1) The department shall not make handling fee payments to
more than one certified recycling center in a convenience zone. If a
dealer is located in more than one convenience zone, the department
shall offer a single handling fee payment to a supermarket site
located at that dealer. This handling fee payment shall not be split
between the affected zones. The department shall stop making handling
fee payments if another recycling center certifies to operate within
the convenience zone without receiving payments pursuant to this
section, if the department monitors the performance of the other
recycling center for 60 days and determines that the recycling center
is in compliance with this division. Any recycling center that
locates in a convenience zone, thereby causing a preexisting
recycling center to become ineligible to receive handling fee
payments, is ineligible to receive any handling fee payments in that
convenience zone.
(2) The department shall offer a single handling fee payment to a
rural region recycler located anywhere inside a convenience zone, if
that convenience zone is not served by another certified recycling
center and the rural region recycler does either of the following:
(A) Operates a minimum of 30 hours per week in one convenience
zone.
(B) Serves two or more convenience zones, and meets all of the
following criteria:
(i) Is the only certified recycler within each convenience zone.
(ii) Is open and operating at least eight hours per week in each
convenience zone and is certified at each location.
(iii) Operates at least 30 hours per week in total for all
convenience zones served.
(d) The department may require the operator of a supermarket site
or rural region recycler receiving handling fees to maintain records
for each location where beverage containers are redeemed, and may
require the supermarket site or rural region recycler to take any
other action necessary for the department to determine that the
supermarket site or rural region recycler does not receive an
excessive handling fee.
(e) The department may determine and utilize a standard container
per pound rate, for each material type, for the purpose of
calculating volumes and making handling fee payments.
(f) (1) On or before January 1, 2008, and every two years
thereafter, the department shall conduct a survey pursuant to this
subdivision of a statistically significant sample of certified
recycling centers that receive handling fee payments to determine the
actual cost incurred for the redemption of empty beverage containers
by those certified recycling centers. The department shall conduct
these cost surveys in conjunction with the cost surveys performed by
the department pursuant to subdivision (b) of Section 14575 to
determine processing payments and processing fees. The department
shall include, in determining the actual costs, only those allowable
costs contained in the regulations adopted pursuant to this division
that are used by the department to conduct cost surveys pursuant to
subdivision (b) of Section 14575.
(2) Using the information obtained pursuant to paragraph (1), the
department shall then determine the statewide weighted average cost
incurred for the redemption of empty beverage containers, per empty
beverage container, at recycling centers that receive handling fees.
(3) On and after July 1, 2008, the department shall determine the
amount of the handling fee to be paid for each empty beverage
container by subtracting the amount of the statewide weighted average
cost per container to redeem empty beverage containers by recycling
centers that do not receive handling fees from the amount of the
statewide weighted average cost per container determined pursuant to
paragraph (2).
(4) The department shall adjust the statewide average cost
determined pursuant to paragraph (2) for each beverage container
annually to reflect changes in the cost of living, as measured by the
Bureau of Labor Statistics of the United States Department of Labor
or a successor agency of the United States government.
(5) The cost information collected pursuant to this section at
recycling centers that receive handling fees shall not be used in the
calculation of the processing payments determined pursuant to
Section 14575.
SEC. 14. Notwithstanding Item No. 3480-011-0133 of the Budget Act
of 2002 (Chapter 379 of the Statutes of 2002) and Item No.
3480-011-0133 of the Budget Act of 2003 (Chapter 157 of the Statutes
of 2003), or Section 14580 of the Public Resources Code, any transfer
made from the Beverage Container Recycling Fund to the General Fund
pursuant to those items that is required to be fully repaid by June
30, 2009, shall instead be fully repaid on or before June 30, 2013.
SEC. 15. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to encourage the recycling of beverage containers,
thereby protecting public health and safety, and the environment, it
is necessary that this act take effect immediately.