California takes action against CVS for failing to redeem CRV beverage containers

The California Department of Resources Recycling and Recovery (CalRecycle) has announced a $3.6 million enforcement action against CVS Health Corp. for failing to meet its obligation to redeem Californians’ deposits on recycled bottles and cans at stores throughout the state.

CalRecycle says the action is part of the state’s broader effort to support recycling and ensure consumers have access to convenient recycling options. State subsidies to recyclers have increased each of the last four years to cover the declining prices for recyclables, resulting in $176 million in payments to recyclers in 2018.

Under California’s beverage container recycling law, retailers in “convenience zones” that are not served by a recycling center must redeem California Redemption Value (CRV) beverage containers in-store or pay a $100-per-day fee.

In an investigation, CalRecycle says it found that 81 of CVS’ 848 retail stores in California refused to redeem CRV beverage containers and failed to pay the required $100 per day fee or failed to submit an affidavit to CalRecycle stating how the stores would comply with in-store redemption standards.

Jared Blumenfeld, California secretary for environmental protection, says the enforcement action “sends a message that we will hold retailers accountable for refunding consumers their nickel and dime recycling deposits.” He adds, “Everyone must do their part as we work to protect our environment and ensure that all Californians have convenient access to recycling.”

Through the enforcement action, CalRecycle seeks to recover $1.8 million in $100-per-day fees that the 81 stores have failed to pay as of Oct. 31 and an additional $1.8 million in $100-per-day civil penalties. The action also seeks to recover CalRecycle’s administrative costs of investigating and pursuing the action.

CalRecycle says it filed the enforcement action against the retail chain Dec. 5. As part of the administrative law process, CVS is entitled to an evidentiary hearing presided over by a hearing officer or administrative law judge.

“California has one of the highest recycling rates in the nation because of our shared commitment to the environment,” says CalRecycle Director Scott Smithline. “Retailers face financial consequences if they do not fulfill their legal takeback requirements. This $3.6 million action is part of our ongoing enforcement of the bottles and cans program that includes intensified inspection efforts and ongoing recycling fraud crackdowns.”

CalRecycle says it has increased enforcement against retailers that are obligated to redeem the CRV for beverage containers in-store, resulting in an additional 2,180 inspections and prioritized enforcement on retailers with the largest number of violations and penalties owed.

Through the budget and legislative processes, the state also has allocated an additional $15 million in the past six months to support recycling centers and redemption projects, such as mobile redemption in areas with high rents and community resistance to recycling centers.

Since the state’s Bottle Bill was enacted in 1986, Californians have recycled nearly 400 billion beverage containers, CalRecycle says. Last year Californians recycled 18 billion beverage containers, the second highest ever, accounting for 76 percent of the 24 billion CRV beverages sold in California. The state is on track to recycle 18 billion bottles and cans in 2019, the agency adds.