California Governor Signs Relief Measure for Beverage Container Recycling Program

California Governor Arnold Schwarzenegger has signed legislation that is hoped will restore the state's Beverage Container Recycling Program and Fund to solvency through this June.

According to the California Grocers Association (CGA), the measure, AB 8x 7, is expected to provide funding for the statewide program. Further, advocates say the bill should lay the groundwork for a long-term solution by temporarily implementing many of the issues grocers seek in a long-term fix.

Specific components of the bill include the following:

• Temporary acceleration of distributor payments into the fund.

• Temporary reductions in non-core expenditures.

• A requirement that program participants be given at least 90-days notice of any future proportionate reductions.

• A prohibition on future borrowing from the Beverage Container Recycling Fund.

• Retroactive restoration of proportionate reductions through June 30, 2010.

In signing the message, Governor Schwarzenegger made clear that he expects further work to be completed this year. "Structural changes to the program are essential before the next fiscal year begins in order to ensure that program participants do not see another loss in funding. I urge the Legislature to work with my Administration expeditiously to enact the long-term solutions I proposed in January."

For recyclers, who have been struggling with the state’s inability to pay the redemption fees, relief is expected to occur within the next several weeks, according to the CGA.

Issues that need to be addressed to ensure long-term viability, according to the CGA, include prioritization of fund expenditures, addressing citing issues that often prevent willing grocers from facilitating recycling operations, and updating the antiquated convenience zone system that hampers competition and convenience.