California Assembly Bill AB2718 Introduced / Bill

 BILL NUMBER: AB 2718INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Adams FEBRUARY 19, 2010 An act to amend Sections 14571.2, 14571.8, and 14581 of, and to add Sections 14526.8, 14571.6.5, 14571.6.6, and 14571.6.7 to, the Public Resources Code, relating to recycling, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 2718, as introduced, Adams. Recycling: beverage containers: recycling centers. (1) Existing law, the California Beverage Container Recycling and Litter Reduction Act (act), requires a distributor to pay a redemption payment for every beverage container sold or offered for sale in the state to the Division of Recycling in the Department of Resources Recycling and Recovery. The division is required to deposit those amounts in the California Beverage Container Recycling Fund. Existing law defines "convenience zone" for the purposes of the act and requires that every convenience zone is to be served by at least one certified recycling center, with specified operating hours. Existing law imposes specified requirements upon dealers located in a convenience zone that is not served by a recycling center, including that the dealer redeem beverage containers at the dealer's location when the dealer is open for business. This bill would define the term "unserved convenience zone" and would require the department to provide assistance and incentives to reduce the number of unserved convenience zones to less than 5% of total convenience zones by January 1, 2012. The bill would exempt, until December 31, 2011, a dealer from the requirement to redeem beverage containers. The bill would make a dealer meeting certain requirements eligible for the payment of handling fees, thereby making an appropriation. The bill would permit the division to authorize an operator of a certified recycling center to be open for business less than 30 hours per week, but not less than 20 hours per week, if the recycling center is located in an unserved convenience zone, as defined, that has been unserved for at least 6 continuous months. (2) Under existing law, the money in the fund is continuously appropriated to the division to pay, among other things, handling fees to provide an incentive for the redemption of empty beverage containers in convenience zones. Existing law prohibits the division from making handling fee payments to more than one certified recycling center in a convenience zone. This bill would permit the division to authorize additional certified recycling centers to be eligible for handling fees and to increase the amount of the handling fee, thereby making an appropriation. (3) Existing law, provides that after making payments of refund values and administrative fees, the remaining moneys in the California Beverage Container Recycling Fund are continuously appropriated to the division for expenditure for designated programs, grants, and fee payments. If the division determines there are insufficient funds to make these payments, the department is required to reduce all payments proportionally, after notifying the appropriate policy and fiscal committees of the Legislature. This bill would repeal the requirement that the division reduce the payments in that manner. Since the bill would revise the conditions under which funds are expended from a continuously appropriated fund, the bill would make an appropriation. (4) Existing law authorizes the division to make payments to local agencies for beverage container recycling and litter cleanup activities. This bill would authorize the division to withhold these funds from a local agency if the department determines that the agency has prohibited the siting of a supermarket site, caused a supermarket site to close its business, or adopted a certain land use policy. The bill would also delete obsolete provisions. Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 14526.8 is added to the Public Resources Code, to read: 14526.8. "Unserved convenience zone" means a convenience zone where there is not in operation a certified recycling center or other location that meets the requirements of subdivision (a) of Section 14571, and where the zone is otherwise not exempt pursuant to Section 14571.8. SEC. 2. Section 14571.2 of the Public Resources Code is amended to read: 14571.2.  (a)    The department shall continuously assist dealers and recyclers to establish certified recycling locations within each convenience zone. This assistance includes, but is not limited to, providing information to companies and organizations interested in operating recycling in the convenience zone; providing dealers with names of prospective recyclers for the convenience zone and providing recyclers with the names of dealers in need of a recycler for a convenience zone; providing dealers and recyclers with information on grants, advertising funds, and other resources available; and providing recyclers with advice regarding appearance and image of the recycling center and the efficient handling and transportation of recycled beverage containers.  (b) The department shall provide assistance and incentives to reduce the number of unserved convenience zones to less than 5 percent of the total number of convenience zones by January 1, 2012.   (c) (1) Notwithstanding Section 14571.6, for any convenience zone that was unserved on July 1, 2009, the obligation of dealers in that convenience zone to redeem empty beverage containers in the store shall be suspended until December 31, 2011.   (2) Notwithstanding Section 14585, a dealer that chooses to redeem empty beverage containers inside the store shall be eligible to receive handling fees pursuant to Section 14585 and a processor shall pay refund values, administrative costs, and processing payments to the dealer pursuant to subdivision (a) of Section 14573.5 in the same manner as a recycling center operating in compliance with Section 14571.  SEC. 3. Section 14571.6.5 is added to the Public Resources Code, to read: 14571.6.5. (a) Notwithstanding Section 14571, the department may allow the operator of a certified recycling center to be open for business for less than 30 hours per week, but not less than 20 hours per week, if the certified recycling center is located in a convenience zone that has been unserved for at least six continuous months, and the convenience zone is identified by the department as an unserved convenience zone. (b) A certified recycling center that is authorized by the department pursuant to subdivision (a) shall be eligible to apply for handling fees pursuant to Section 14585, and a processor shall pay refund values, administrative costs, and processing payments to the certified recycling center pursuant to subdivision (a) of Section 14573.5 in the same manner as to a certified recycling center operating in compliance with Section 14571. SEC. 4. Section 14571.6.6 is added to the Public Resources Code, to read: 14571.6.6. Notwithstanding Sections 14571 and 14585, the department may authorize the operator of a certified recycling center to be eligible to apply for the payment of handling fees if the certified recycling center is located in a convenience zone that has been unserved for at least six continuous months, the certified recycling center is not located in a supermarket site, and the convenience zone in which the certified recycling center is located is identified by the department as an unserved convenience zone. SEC. 5. Section 14571.6.7 is added to the Public Resources Code, to read: 14571.6.7. Notwithstanding Section 14585, the department may authorize the operator of a certified recycling center to be eligible to be paid, for a period of 24 months, a handling fee in an amount equivalent to 120 percent of the amount of the handling fee paid on January 1, 2011, if the certified recycling center is located in a convenience zone that has been unserved for at least six continuous months, and the convenience zone is identified by the department as an unserved convenience zone. SEC. 6. Section 14571.8 of the Public Resources Code is amended to read: 14571.8. (a)  No   A  lease entered into by a dealer after January 1, 1987,  may   shall not  contain a leasehold restriction that prohibits or results in the prohibition of the establishment of a recycling location. (b) The director may grant an exemption from the requirements of Section 14571 for an individual convenience zone only after the department solicits public testimony on whether or not to provide an exemption from Section 14571. The solicitation process shall be designed by the department to ensure that operators of recycling centers, dealers, and members of the public in the jurisdiction affected by the proposed exemption are aware of the proposed exemption. After evaluation of the testimony and any field review conducted, the department shall base a decision to exempt a convenience zone on one, or any combination, of the following factors: (1) The exemption will not significantly decrease the ability of consumers to conveniently return beverage containers for the refund value to a certified recycling center redeeming all material types. (2) Except as provided in paragraph (5), the nearest certified recycling center is within a reasonable distance of the convenience zone being considered  from   for  exemption. (3) The convenience zone is in the area of a curbside recycling program that meets the criteria specified in Section 14509.5. (4) The requirements of Section 14571 cannot be met in a particular convenience zone due to local zoning or the dealer's leasehold restrictions for leases in effect on January 1, 1987, and the local zoning or leasehold restrictions are not within the authority of the department and the dealer. However, any lease executed after January 1, 1987, shall meet the requirements specified in subdivision (a). (5) The convenience zone has redeemed less than 60,000 containers per month for the prior 12 months and, notwithstanding paragraph (2), a certified recycling center is located within one mile of the convenience zone that is the subject of the exemption. (c) The department shall review each convenience zone in which a certified recycling center was not located on January 1, 1996, to determine the eligibility of the convenience zone under the exemption criteria specified in subdivision (b). (d) The total number of exemptions granted by the director under this section shall not exceed  35   45  percent of the total number of convenience zones identified pursuant to this section. (e) The department may, on its own motion, or upon petition by any interested person, revoke a convenience zone exemption if either of the following occurs: (1) The condition or conditions that caused the convenience zone to be exempt no longer exists, and the department determines that the criteria for an exemption specified in this section are not presently applicable to the convenience zone. (2) The department determines that the convenience zone exemption was granted due to an administrative error. (f) If an exemption is revoked and a recycling center is not certified and operational in the convenience zone, the department shall, within 10 days of the date of the decision to revoke, serve all dealers in the convenience zone with the notice specified in subdivision (a) of Section 14571.7. (g) An exemption shall not be revoked when a recycling center becomes certified and operational within an exempt convenience zone unless either of the events specified in paragraphs (1) and (2) of subdivision (e) occurs. SEC. 7. 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)   (1)  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   Sections 14571.2, 14571.6.5, 14571.6.6, 14571.6.7, and  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.  (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 both 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:   (i) Multifamily dwellings.   (ii) Schools.   (iii) Commercial, state, and local government buildings.   (iv) Bars, restaurants, hotels, and lodging establishments, and entertainment venues.   (v) 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)   (4)  (A) 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)  (i)    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.  (ii) The department shall withhold all or a portion of the payment to a city, county, or city and county for which the department determines that the city, county, or city and county 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 and that this action resulted in an unserved convenience zone.   (6)   (5)  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)   (6)  (A) The department shall expend the amount necessary to pay the processing payment established pursuant to Section 14575. 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 both 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 paragraph (2) 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. (B) Notwithstanding Section 13340 of the Government Code, the moneys in each processing fee account are hereby continuously appropriated to the department for expenditure without regard to fiscal years, for purposes of making processing payments pursuant to Section 14575.  (8)   (7)  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)   (8)  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)   (9)  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)   (10)  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)   (11)  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)   (12)  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.   (17) (A) Up to fifteen million dollars ($15,000,000) may be expended from January 1, 2008, to January 1, 2009, to provide grants to place source separated beverage container recycling receptacles in multifamily housing.   (B) Notwithstanding subdivision (b) of Section 14580, the amount of one hundred ninety-eight thousand dollars ($198,000) may be expended by the department from the fund, on a one-time basis, for the administrative costs of implementing the grant program established by subparagraph (A).   (18) (A) Up to twenty million dollars ($20,000,000) may be expended from July 1, 2009, to January 1, 2012, inclusive, for either of the following:   (i) Grants for beverage container recycling and litter reduction programs that emphasize the greatest and most effective collection of beverage containers per dollar spent to ensure the program's performance and accountability.   (ii) Focused, regional community beverage container recycling and litter reduction programs that enable the department to more effectively organize the amount and type of resources needed for regional and statewide efforts to increase recycling.   (B) The department shall require, as a condition of receiving grant funds pursuant to subparagraph (A), each grant recipient to submit a final report including, but not limited to, the grant recipient's reported volumes of beverage containers recycled, where applicable.   (C) On or before July 1, 2014, the department shall publish an evaluation of all grants made pursuant to subparagraph (A). At a minimum, the evaluation shall summarize each final report submitted by each grantee pursuant to subparagraph (B) and assess whether the grantee adequately met the scope and objectives outlined in the grant agreement.  (b) The  fifteen million dollars ($15,000,000)   amount  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)   (d)  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.