Governor Davis Signs Beverage Container Recycling Legislation

California’s Governor Gray Davis signed Assembly Bill 28 Oct. 13. The bill was authored by Assembly Members Jackson and Pavley and Senators Sher and Burton, which will, among other things increase the refund value on beverage containers to $.04 ($.08 cents for containers 24 ounces and larger). Additionally, the measure implements a number of other recycling program reforms aimed at boosting recycling rates in the state.

Among those changes:

Increases quality glass incentive payments for clean, color sorted glass collected at curbside from $25/ton to $30/ton.

Allows the Department to calculate a ‘3-7 plastic’ commingled rate.

Initiates a variety of reforms to the process fee provisions, including:

A tiered manufacturer fee structure to encourage support for greater recycling;

Authorizes mid-year adjustments of processing payments when scrap values change by 5 percent or more;

Provides a roughly $42 million processing fee ‘rebate’ to beverage manufacturers to compensate for two-year overpayment;

Provides a roughly $38 million supplemental processing payment to recyclers to compensate for a three-year underpayment.

Increases handling fees from $23.5 million to $26.5 million.

Increases litter reduction and recycling program grants from $500,000 to $1.5 million.

Authorizes $10 million annually, until January 1, 2007, for market development of recycled containers.

Authorizes up to $10 million to be transferred by the Department of Conservation to the Recycling Infrastructure Loan Guarantee Account for new recycling infrastructure.

Authorizes a one-year continuation of $300,000 in funding for Keep California Beautiful.

Authorizes up to $5 million annually for public education.

SB 23 previously contained a provision that would have doubled the refund value on beverage containers from $.025 cents per container to $.05 cents ($.10 cents on containers 24 ounces and larger).

This provision was amended out of the bill in the Senate Appropriations Committee in June.

The Assembly Natural Resources Committee Analysis suggested reinstating the language to increase the refund value and did so at their hearing in August.

Also, the bill implements a settlement agreement regarding processing payments resulting from a lawsuit that CAW won against the Department of Conservation.