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| 1 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 675Introduced by Senator PadillaFebruary 21, 2025 An act to amend Section 14575 of the Public Resources Code, relating to beverage containers. LEGISLATIVE COUNSEL'S DIGESTSB 675, as introduced, Padilla. Beverage containers: processing payments. The California Beverage Container Recycling and Litter Reduction Act requires a beverage manufacturer to pay to the Department of Resources Recycling and Recovery a processing fee for each beverage container, as defined, sold or transferred in this state. The act requires the department to deposit the fee into the California Beverage Container Recycling Fund, a continuously appropriated fund. The act requires the department to pay processing payments to processors and recycling centers from the fund, as specified. The act requires the processing payment to be at least equal to the difference between the scrap value of the beverage containers and the sum of certain actual operational costs for certified recycling centers and a reasonable financial return for recycling centers, as specified. Existing regulations require a reasonable financial return for recycling centers equal to 10% of certain statewide averages. The act requires the processing fee to be 65% of the processing payment, except as specified.This bill would specify, for purposes of calculating the processing payment, that 10% is a reasonable financial return for recycling centers. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. 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 paragraph (2) 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 of 10 percent for recycling centers.(c) The department shall base the processing payment pursuant to this section upon all of the following:(1) Except as provided in paragraph (2), 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.(2) On and after January 1, 2010, the department shall use the most recently published, measured actual costs of recycling for a specific beverage container material type if the department determines the number of beverage containers for that material type that is returned for recycling pursuant to Section 14551, based on the most recently published calendar year number of beverage containers returned for recycling, is less than 5 percent of the total number of beverage containers returned for recycling for all material types. The department shall determine the actual recycling cost to be used for calculating processing payments for those beverage containers in the following manner:(A) The department shall adjust the costs of recycling that material type every second year by the percentage change in the most recently measured cost of recycling HDPE plastic beverage containers, as determined by the department. The department shall use the percentage change in costs of recycling HDPE plastic beverage containers for this purpose, even if HDPE plastic beverage containers are less than 5 percent of the total volume of returned beverage containers.(B) The department shall adjust the recycling costs annually for that material type 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) Except as specified in subdivision (e), the actual processing fee paid by a beverage manufacturer shall equal 65 percent of the processing payment calculated pursuant to subdivision (b).(e) 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) 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.(2) The department shall calculate the recycling rate for purposes of paragraph (1) based on the 12-month period ending on June 30 that directly precedes the date of the January 1 processing fee determination.(f) 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 for any beverage container, based on the applicable preceding 12-month average scrap value or the preceding 3-month average scrap value, whichever is lower. Quarterly adjustments made pursuant to this subdivision shall not cause a change in the annual January 1 processing fee established by this section.(g) (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 that 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. With respect to the payment of processing fees for beverages manufactured outside the state and sold directly to consumers within the state with a direct shipper permit, the beverage manufacturer shall be deemed to be the person or entity named on the direct shipper permit issued pursuant to Section 23661.3 of the Business and Professions Code, and shall be responsible for paying to the department the total processing fee payment for all sales and transfers made directly to consumers in the state. If the department is unable to collect the processing fee from the person or entity named on the certificate of compliance or direct shipper permit, 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 manufacturers 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 manufacturers 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).(h) When assessing processing fees pursuant to subdivision (a), the department shall assess the processing fee on each container sold, as provided in subdivisions (d) and (e), 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.(i) 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.(j) 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 (e).(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.(k) (1) Commencing January 1, 2024, a processing fee equivalent to the processing fee applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504.(2) Commencing January 1, 2024, a processing payment equal to the processing payment applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504.(3) This subdivision shall become inoperative on January 1, 2026. | |
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| 3 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 675Introduced by Senator PadillaFebruary 21, 2025 An act to amend Section 14575 of the Public Resources Code, relating to beverage containers. LEGISLATIVE COUNSEL'S DIGESTSB 675, as introduced, Padilla. Beverage containers: processing payments. The California Beverage Container Recycling and Litter Reduction Act requires a beverage manufacturer to pay to the Department of Resources Recycling and Recovery a processing fee for each beverage container, as defined, sold or transferred in this state. The act requires the department to deposit the fee into the California Beverage Container Recycling Fund, a continuously appropriated fund. The act requires the department to pay processing payments to processors and recycling centers from the fund, as specified. The act requires the processing payment to be at least equal to the difference between the scrap value of the beverage containers and the sum of certain actual operational costs for certified recycling centers and a reasonable financial return for recycling centers, as specified. Existing regulations require a reasonable financial return for recycling centers equal to 10% of certain statewide averages. The act requires the processing fee to be 65% of the processing payment, except as specified.This bill would specify, for purposes of calculating the processing payment, that 10% is a reasonable financial return for recycling centers. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
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| 5 | - | Amended IN Senate April 10, 2025 | |
| 6 | 5 | ||
| 7 | - | Amended IN Senate April 10, 2025 | |
| 6 | + | ||
| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Senate Bill | |
| 12 | 12 | ||
| 13 | 13 | No. 675 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Senator PadillaFebruary 21, 2025 | |
| 16 | 16 | ||
| 17 | 17 | Introduced by Senator Padilla | |
| 18 | 18 | February 21, 2025 | |
| 19 | 19 | ||
| 20 | - | An act to amend Section 14575 of | |
| 20 | + | An act to amend Section 14575 of the Public Resources Code, relating to beverage containers. | |
| 21 | 21 | ||
| 22 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 25 | ||
| 26 | - | SB 675, as | |
| 26 | + | SB 675, as introduced, Padilla. Beverage containers: processing payments. | |
| 27 | 27 | ||
| 28 | - | The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.The Jobs and Economic Improvement Through Environmental Leadership Act of 2021 authorizes the Governor, until January 1, 2032, to certify environmental leadership development projects that meet specified requirements for certain streamlining benefits related to CEQA.This bill would provide additional streamlining benefits to environmental leadership development projects certified by the Governor that require discretionary approvals by a lead agency and one or more responsible agencies, including a requirement that responsible agencies shall provide specific and substantive comments or objections for certain documents within 60 days, as provided. The bill would require a lead agency or applicant to, no later than 30 days after the certification of the environmental impact report by the lead agency, file required application forms and materials with the responsible agency. The bill would prohibit the responsible agency from denying an environmental leadership project approved by the lead agency or imposing conditions or mitigation measures that would render the project infeasible unless the responsible agency makes a specified finding. The bill would authorize responsible agencies, if a certain condition is met, to charge a fee to an applicant for the reasonable costs incurred by the responsible agency for processing documents for review or the application of the environmental leadership project. By placing new duties on local agencies related to the streamlining benefits, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.The California Beverage Container Recycling and Litter Reduction Act requires a beverage manufacturer to pay to the Department of Resources Recycling and Recovery a processing fee for each beverage container, as defined, sold or transferred in this state. The act requires the department to deposit the fee into the California Beverage Container Recycling Fund, a continuously appropriated fund. The act requires the department to pay processing payments to processors and recycling centers from the fund, as specified. The act requires the processing payment to be at least equal to the difference between the scrap value of the beverage containers and the sum of certain actual operational costs for certified recycling centers and a reasonable financial return for recycling centers, as specified. Existing regulations require a reasonable financial return for recycling centers equal to 10% of certain statewide averages. The act requires the processing fee to be 65% of the processing payment, except as specified.This bill would specify, for purposes of calculating the processing payment, that 10% is a reasonable financial return for recycling centers. | |
| 29 | - | ||
| 30 | - | The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. | |
| 31 | - | ||
| 32 | - | The Jobs and Economic Improvement Through Environmental Leadership Act of 2021 authorizes the Governor, until January 1, 2032, to certify environmental leadership development projects that meet specified requirements for certain streamlining benefits related to CEQA. | |
| 33 | - | ||
| 34 | - | This bill would provide additional streamlining benefits to environmental leadership development projects certified by the Governor that require discretionary approvals by a lead agency and one or more responsible agencies, including a requirement that responsible agencies shall provide specific and substantive comments or objections for certain documents within 60 days, as provided. The bill would require a lead agency or applicant to, no later than 30 days after the certification of the environmental impact report by the lead agency, file required application forms and materials with the responsible agency. The bill would prohibit the responsible agency from denying an environmental leadership project approved by the lead agency or imposing conditions or mitigation measures that would render the project infeasible unless the responsible agency makes a specified finding. The bill would authorize responsible agencies, if a certain condition is met, to charge a fee to an applicant for the reasonable costs incurred by the responsible agency for processing documents for review or the application of the environmental leadership project. By placing new duties on local agencies related to the streamlining benefits, this bill would impose a state-mandated local program. | |
| 35 | - | ||
| 36 | - | The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. | |
| 37 | - | ||
| 38 | - | This bill would provide that no reimbursement is required by this act for a specified reason. | |
| 28 | + | The California Beverage Container Recycling and Litter Reduction Act requires a beverage manufacturer to pay to the Department of Resources Recycling and Recovery a processing fee for each beverage container, as defined, sold or transferred in this state. The act requires the department to deposit the fee into the California Beverage Container Recycling Fund, a continuously appropriated fund. The act requires the department to pay processing payments to processors and recycling centers from the fund, as specified. The act requires the processing payment to be at least equal to the difference between the scrap value of the beverage containers and the sum of certain actual operational costs for certified recycling centers and a reasonable financial return for recycling centers, as specified. Existing regulations require a reasonable financial return for recycling centers equal to 10% of certain statewide averages. The act requires the processing fee to be 65% of the processing payment, except as specified.This bill would specify, for purposes of calculating the processing payment, that 10% is a reasonable financial return for recycling centers. | |
| 39 | 29 | ||
| 40 | 30 | The California Beverage Container Recycling and Litter Reduction Act requires a beverage manufacturer to pay to the Department of Resources Recycling and Recovery a processing fee for each beverage container, as defined, sold or transferred in this state. The act requires the department to deposit the fee into the California Beverage Container Recycling Fund, a continuously appropriated fund. The act requires the department to pay processing payments to processors and recycling centers from the fund, as specified. The act requires the processing payment to be at least equal to the difference between the scrap value of the beverage containers and the sum of certain actual operational costs for certified recycling centers and a reasonable financial return for recycling centers, as specified. Existing regulations require a reasonable financial return for recycling centers equal to 10% of certain statewide averages. The act requires the processing fee to be 65% of the processing payment, except as specified. | |
| 41 | 31 | ||
| 42 | - | ||
| 43 | - | ||
| 44 | 32 | This bill would specify, for purposes of calculating the processing payment, that 10% is a reasonable financial return for recycling centers. | |
| 45 | - | ||
| 46 | - | ||
| 47 | 33 | ||
| 48 | 34 | ## Digest Key | |
| 49 | 35 | ||
| 50 | 36 | ## Bill Text | |
| 51 | 37 | ||
| 52 | - | The people of the State of California do enact as follows:SECTION 1. Section | |
| 38 | + | The people of the State of California do enact as follows:SECTION 1. 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 paragraph (2) 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 of 10 percent for recycling centers.(c) The department shall base the processing payment pursuant to this section upon all of the following:(1) Except as provided in paragraph (2), 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.(2) On and after January 1, 2010, the department shall use the most recently published, measured actual costs of recycling for a specific beverage container material type if the department determines the number of beverage containers for that material type that is returned for recycling pursuant to Section 14551, based on the most recently published calendar year number of beverage containers returned for recycling, is less than 5 percent of the total number of beverage containers returned for recycling for all material types. The department shall determine the actual recycling cost to be used for calculating processing payments for those beverage containers in the following manner:(A) The department shall adjust the costs of recycling that material type every second year by the percentage change in the most recently measured cost of recycling HDPE plastic beverage containers, as determined by the department. The department shall use the percentage change in costs of recycling HDPE plastic beverage containers for this purpose, even if HDPE plastic beverage containers are less than 5 percent of the total volume of returned beverage containers.(B) The department shall adjust the recycling costs annually for that material type 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) Except as specified in subdivision (e), the actual processing fee paid by a beverage manufacturer shall equal 65 percent of the processing payment calculated pursuant to subdivision (b).(e) 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) 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.(2) The department shall calculate the recycling rate for purposes of paragraph (1) based on the 12-month period ending on June 30 that directly precedes the date of the January 1 processing fee determination.(f) 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 for any beverage container, based on the applicable preceding 12-month average scrap value or the preceding 3-month average scrap value, whichever is lower. Quarterly adjustments made pursuant to this subdivision shall not cause a change in the annual January 1 processing fee established by this section.(g) (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 that 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. With respect to the payment of processing fees for beverages manufactured outside the state and sold directly to consumers within the state with a direct shipper permit, the beverage manufacturer shall be deemed to be the person or entity named on the direct shipper permit issued pursuant to Section 23661.3 of the Business and Professions Code, and shall be responsible for paying to the department the total processing fee payment for all sales and transfers made directly to consumers in the state. If the department is unable to collect the processing fee from the person or entity named on the certificate of compliance or direct shipper permit, 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 manufacturers 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 manufacturers 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).(h) When assessing processing fees pursuant to subdivision (a), the department shall assess the processing fee on each container sold, as provided in subdivisions (d) and (e), 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.(i) 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.(j) 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 (e).(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.(k) (1) Commencing January 1, 2024, a processing fee equivalent to the processing fee applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504.(2) Commencing January 1, 2024, a processing payment equal to the processing payment applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504.(3) This subdivision shall become inoperative on January 1, 2026. | |
| 53 | 39 | ||
| 54 | 40 | The people of the State of California do enact as follows: | |
| 55 | 41 | ||
| 56 | 42 | ## The people of the State of California do enact as follows: | |
| 57 | 43 | ||
| 58 | - | SECTION 1. Section | |
| 44 | + | SECTION 1. 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 paragraph (2) 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 of 10 percent for recycling centers.(c) The department shall base the processing payment pursuant to this section upon all of the following:(1) Except as provided in paragraph (2), 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.(2) On and after January 1, 2010, the department shall use the most recently published, measured actual costs of recycling for a specific beverage container material type if the department determines the number of beverage containers for that material type that is returned for recycling pursuant to Section 14551, based on the most recently published calendar year number of beverage containers returned for recycling, is less than 5 percent of the total number of beverage containers returned for recycling for all material types. The department shall determine the actual recycling cost to be used for calculating processing payments for those beverage containers in the following manner:(A) The department shall adjust the costs of recycling that material type every second year by the percentage change in the most recently measured cost of recycling HDPE plastic beverage containers, as determined by the department. The department shall use the percentage change in costs of recycling HDPE plastic beverage containers for this purpose, even if HDPE plastic beverage containers are less than 5 percent of the total volume of returned beverage containers.(B) The department shall adjust the recycling costs annually for that material type 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) Except as specified in subdivision (e), the actual processing fee paid by a beverage manufacturer shall equal 65 percent of the processing payment calculated pursuant to subdivision (b).(e) 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) 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.(2) The department shall calculate the recycling rate for purposes of paragraph (1) based on the 12-month period ending on June 30 that directly precedes the date of the January 1 processing fee determination.(f) 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 for any beverage container, based on the applicable preceding 12-month average scrap value or the preceding 3-month average scrap value, whichever is lower. Quarterly adjustments made pursuant to this subdivision shall not cause a change in the annual January 1 processing fee established by this section.(g) (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 that 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. With respect to the payment of processing fees for beverages manufactured outside the state and sold directly to consumers within the state with a direct shipper permit, the beverage manufacturer shall be deemed to be the person or entity named on the direct shipper permit issued pursuant to Section 23661.3 of the Business and Professions Code, and shall be responsible for paying to the department the total processing fee payment for all sales and transfers made directly to consumers in the state. If the department is unable to collect the processing fee from the person or entity named on the certificate of compliance or direct shipper permit, 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 manufacturers 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 manufacturers 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).(h) When assessing processing fees pursuant to subdivision (a), the department shall assess the processing fee on each container sold, as provided in subdivisions (d) and (e), 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.(i) 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.(j) 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 (e).(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.(k) (1) Commencing January 1, 2024, a processing fee equivalent to the processing fee applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504.(2) Commencing January 1, 2024, a processing payment equal to the processing payment applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504.(3) This subdivision shall become inoperative on January 1, 2026. | |
| 59 | 45 | ||
| 60 | - | SECTION 1. Section | |
| 46 | + | SECTION 1. Section 14575 of the Public Resources Code is amended to read: | |
| 61 | 47 | ||
| 62 | 48 | ### SECTION 1. | |
| 63 | 49 | ||
| 64 | - | ||
| 50 | + | 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 paragraph (2) 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 of 10 percent for recycling centers.(c) The department shall base the processing payment pursuant to this section upon all of the following:(1) Except as provided in paragraph (2), 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.(2) On and after January 1, 2010, the department shall use the most recently published, measured actual costs of recycling for a specific beverage container material type if the department determines the number of beverage containers for that material type that is returned for recycling pursuant to Section 14551, based on the most recently published calendar year number of beverage containers returned for recycling, is less than 5 percent of the total number of beverage containers returned for recycling for all material types. The department shall determine the actual recycling cost to be used for calculating processing payments for those beverage containers in the following manner:(A) The department shall adjust the costs of recycling that material type every second year by the percentage change in the most recently measured cost of recycling HDPE plastic beverage containers, as determined by the department. The department shall use the percentage change in costs of recycling HDPE plastic beverage containers for this purpose, even if HDPE plastic beverage containers are less than 5 percent of the total volume of returned beverage containers.(B) The department shall adjust the recycling costs annually for that material type 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) Except as specified in subdivision (e), the actual processing fee paid by a beverage manufacturer shall equal 65 percent of the processing payment calculated pursuant to subdivision (b).(e) 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) 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.(2) The department shall calculate the recycling rate for purposes of paragraph (1) based on the 12-month period ending on June 30 that directly precedes the date of the January 1 processing fee determination.(f) 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 for any beverage container, based on the applicable preceding 12-month average scrap value or the preceding 3-month average scrap value, whichever is lower. Quarterly adjustments made pursuant to this subdivision shall not cause a change in the annual January 1 processing fee established by this section.(g) (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 that 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. With respect to the payment of processing fees for beverages manufactured outside the state and sold directly to consumers within the state with a direct shipper permit, the beverage manufacturer shall be deemed to be the person or entity named on the direct shipper permit issued pursuant to Section 23661.3 of the Business and Professions Code, and shall be responsible for paying to the department the total processing fee payment for all sales and transfers made directly to consumers in the state. If the department is unable to collect the processing fee from the person or entity named on the certificate of compliance or direct shipper permit, 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 manufacturers 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 manufacturers 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).(h) When assessing processing fees pursuant to subdivision (a), the department shall assess the processing fee on each container sold, as provided in subdivisions (d) and (e), 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.(i) 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.(j) 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 (e).(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.(k) (1) Commencing January 1, 2024, a processing fee equivalent to the processing fee applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504.(2) Commencing January 1, 2024, a processing payment equal to the processing payment applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504.(3) This subdivision shall become inoperative on January 1, 2026. | |
| 65 | 51 | ||
| 66 | - | ||
| 52 | + | 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 paragraph (2) 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 of 10 percent for recycling centers.(c) The department shall base the processing payment pursuant to this section upon all of the following:(1) Except as provided in paragraph (2), 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.(2) On and after January 1, 2010, the department shall use the most recently published, measured actual costs of recycling for a specific beverage container material type if the department determines the number of beverage containers for that material type that is returned for recycling pursuant to Section 14551, based on the most recently published calendar year number of beverage containers returned for recycling, is less than 5 percent of the total number of beverage containers returned for recycling for all material types. The department shall determine the actual recycling cost to be used for calculating processing payments for those beverage containers in the following manner:(A) The department shall adjust the costs of recycling that material type every second year by the percentage change in the most recently measured cost of recycling HDPE plastic beverage containers, as determined by the department. The department shall use the percentage change in costs of recycling HDPE plastic beverage containers for this purpose, even if HDPE plastic beverage containers are less than 5 percent of the total volume of returned beverage containers.(B) The department shall adjust the recycling costs annually for that material type 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) Except as specified in subdivision (e), the actual processing fee paid by a beverage manufacturer shall equal 65 percent of the processing payment calculated pursuant to subdivision (b).(e) 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) 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.(2) The department shall calculate the recycling rate for purposes of paragraph (1) based on the 12-month period ending on June 30 that directly precedes the date of the January 1 processing fee determination.(f) 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 for any beverage container, based on the applicable preceding 12-month average scrap value or the preceding 3-month average scrap value, whichever is lower. Quarterly adjustments made pursuant to this subdivision shall not cause a change in the annual January 1 processing fee established by this section.(g) (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 that 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. With respect to the payment of processing fees for beverages manufactured outside the state and sold directly to consumers within the state with a direct shipper permit, the beverage manufacturer shall be deemed to be the person or entity named on the direct shipper permit issued pursuant to Section 23661.3 of the Business and Professions Code, and shall be responsible for paying to the department the total processing fee payment for all sales and transfers made directly to consumers in the state. If the department is unable to collect the processing fee from the person or entity named on the certificate of compliance or direct shipper permit, 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 manufacturers 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 manufacturers 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).(h) When assessing processing fees pursuant to subdivision (a), the department shall assess the processing fee on each container sold, as provided in subdivisions (d) and (e), 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.(i) 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.(j) 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 (e).(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.(k) (1) Commencing January 1, 2024, a processing fee equivalent to the processing fee applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504.(2) Commencing January 1, 2024, a processing payment equal to the processing payment applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504.(3) This subdivision shall become inoperative on January 1, 2026. | |
| 67 | 53 | ||
| 68 | - | ||
| 54 | + | 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 paragraph (2) 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 of 10 percent for recycling centers.(c) The department shall base the processing payment pursuant to this section upon all of the following:(1) Except as provided in paragraph (2), 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.(2) On and after January 1, 2010, the department shall use the most recently published, measured actual costs of recycling for a specific beverage container material type if the department determines the number of beverage containers for that material type that is returned for recycling pursuant to Section 14551, based on the most recently published calendar year number of beverage containers returned for recycling, is less than 5 percent of the total number of beverage containers returned for recycling for all material types. The department shall determine the actual recycling cost to be used for calculating processing payments for those beverage containers in the following manner:(A) The department shall adjust the costs of recycling that material type every second year by the percentage change in the most recently measured cost of recycling HDPE plastic beverage containers, as determined by the department. The department shall use the percentage change in costs of recycling HDPE plastic beverage containers for this purpose, even if HDPE plastic beverage containers are less than 5 percent of the total volume of returned beverage containers.(B) The department shall adjust the recycling costs annually for that material type 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) Except as specified in subdivision (e), the actual processing fee paid by a beverage manufacturer shall equal 65 percent of the processing payment calculated pursuant to subdivision (b).(e) 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) 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.(2) The department shall calculate the recycling rate for purposes of paragraph (1) based on the 12-month period ending on June 30 that directly precedes the date of the January 1 processing fee determination.(f) 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 for any beverage container, based on the applicable preceding 12-month average scrap value or the preceding 3-month average scrap value, whichever is lower. Quarterly adjustments made pursuant to this subdivision shall not cause a change in the annual January 1 processing fee established by this section.(g) (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 that 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. With respect to the payment of processing fees for beverages manufactured outside the state and sold directly to consumers within the state with a direct shipper permit, the beverage manufacturer shall be deemed to be the person or entity named on the direct shipper permit issued pursuant to Section 23661.3 of the Business and Professions Code, and shall be responsible for paying to the department the total processing fee payment for all sales and transfers made directly to consumers in the state. If the department is unable to collect the processing fee from the person or entity named on the certificate of compliance or direct shipper permit, 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 manufacturers 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 manufacturers 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).(h) When assessing processing fees pursuant to subdivision (a), the department shall assess the processing fee on each container sold, as provided in subdivisions (d) and (e), 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.(i) 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.(j) 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 (e).(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.(k) (1) Commencing January 1, 2024, a processing fee equivalent to the processing fee applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504.(2) Commencing January 1, 2024, a processing payment equal to the processing payment applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504.(3) This subdivision shall become inoperative on January 1, 2026. | |
| 69 | 55 | ||
| 70 | 56 | ||
| 71 | 57 | ||
| 72 | - | 21185.5. An environmental leadership development project certified by the Governor pursuant to this chapter that requires discretionary approvals by a lead agency and one or more responsible agencies shall be eligible for streamlining as follows: | |
| 73 | - | ||
| 74 | - | (a) As provided in Section 21185. | |
| 75 | - | ||
| 76 | - | (b) Responsible agencies shall review and process relevant technical reports, memoranda, plans, and submittals by a lead agency or applicant for an environmental leadership project following certification by the Governor and before an application is submitted to the responsible agency, and provide specific and substantive comments or objections, if any, within 60 days of receiving those documents. Any responsible agency comments or objections not provided within 60 days of receiving those documents shall be deemed waived. | |
| 77 | - | ||
| 78 | - | (c) No later than 30 days after the certification of the environmental impact report by the lead agency, the lead agency or applicant shall file required application forms and materials with the responsible agency. | |
| 79 | - | ||
| 80 | - | (d) Notwithstanding any other law, the responsible agency shall make a final determination on any project-related approval, including any administrative appeals, within 180 days of the date the lead agency or applicant filed the application, or, if the responsible agency has only appellate authority over a project-related approval, from the date the appeal was filed. | |
| 81 | - | ||
| 82 | - | (e) Notwithstanding any other law, the responsible agency shall not deny an environmental leadership project approved by the lead agency or impose conditions or mitigation measures that would render the project infeasible unless it makes at least one of the following findings: | |
| 83 | - | ||
| 84 | - | (1) Significant environmental impacts not considered by the lead agency cannot be mitigated to a less than significant level and the responsible agency determines that findings pursuant to subdivision (b) of Section 21081 for those impacts not considered by the lead agency are not supported by substantial evidence in the record. | |
| 85 | - | ||
| 86 | - | (2) The environmental leadership project is inconsistent with the objective standards applicable to the responsible agency decision. For purposes of this paragraph, objective means with reference to verifiable external standards knowable by the public that do not require subjective judgment. Those objective standards shall be codified or subject to written policies as they existed on the date the application or appeal was filed with the responsible agency. | |
| 87 | - | ||
| 88 | - | (3) The environmental leadership project would have a specific, adverse impact on public health or safety unless the project is disapproved, or approved upon the condition or with mitigation that renders the project infeasible. The responsible agency shall further find that there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact other than the disapproval of the project. As used in this paragraph, specific, adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application or appeal was submitted to the responsible agency. | |
| 89 | - | ||
| 90 | - | SEC. 2. Section 21185.6 is added to the Public Resources Code, to read:21185.6. A responsible agency may charge a fee to an applicant pursuant to this chapter for the reasonable costs incurred by the responsible agency for processing documents for review or the application of the environmental leadership project pursuant to Section 21185.5. Before charging the fee, the fee or rate shall be set forth in a written agreement with the applicant. | |
| 91 | - | ||
| 92 | - | SEC. 2. Section 21185.6 is added to the Public Resources Code, to read: | |
| 93 | - | ||
| 94 | - | ### SEC. 2. | |
| 95 | - | ||
| 96 | - | 21185.6. A responsible agency may charge a fee to an applicant pursuant to this chapter for the reasonable costs incurred by the responsible agency for processing documents for review or the application of the environmental leadership project pursuant to Section 21185.5. Before charging the fee, the fee or rate shall be set forth in a written agreement with the applicant. | |
| 97 | - | ||
| 98 | - | 21185.6. A responsible agency may charge a fee to an applicant pursuant to this chapter for the reasonable costs incurred by the responsible agency for processing documents for review or the application of the environmental leadership project pursuant to Section 21185.5. Before charging the fee, the fee or rate shall be set forth in a written agreement with the applicant. | |
| 99 | - | ||
| 100 | - | 21185.6. A responsible agency may charge a fee to an applicant pursuant to this chapter for the reasonable costs incurred by the responsible agency for processing documents for review or the application of the environmental leadership project pursuant to Section 21185.5. Before charging the fee, the fee or rate shall be set forth in a written agreement with the applicant. | |
| 101 | - | ||
| 102 | - | ||
| 103 | - | ||
| 104 | - | 21185.6. A responsible agency may charge a fee to an applicant pursuant to this chapter for the reasonable costs incurred by the responsible agency for processing documents for review or the application of the environmental leadership project pursuant to Section 21185.5. Before charging the fee, the fee or rate shall be set forth in a written agreement with the applicant. | |
| 105 | - | ||
| 106 | - | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code. | |
| 107 | - | ||
| 108 | - | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code. | |
| 109 | - | ||
| 110 | - | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code. | |
| 111 | - | ||
| 112 | - | ### SEC. 3. | |
| 113 | - | ||
| 114 | - | ||
| 115 | - | ||
| 116 | - | ||
| 117 | - | ||
| 118 | - | (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. | |
| 119 | - | ||
| 120 | - | ||
| 58 | + | 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. | |
| 121 | 59 | ||
| 122 | 60 | (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: | |
| 123 | 61 | ||
| 124 | - | ||
| 125 | - | ||
| 126 | 62 | (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 paragraph (2) 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. | |
| 127 | - | ||
| 128 | - | ||
| 129 | 63 | ||
| 130 | 64 | (2) A reasonable financial return of 10 percent for recycling centers. | |
| 131 | 65 | ||
| 132 | - | ||
| 133 | - | ||
| 134 | 66 | (c) The department shall base the processing payment pursuant to this section upon all of the following: | |
| 135 | - | ||
| 136 | - | ||
| 137 | 67 | ||
| 138 | 68 | (1) Except as provided in paragraph (2), 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. | |
| 139 | 69 | ||
| 140 | - | ||
| 141 | - | ||
| 142 | 70 | (2) On and after January 1, 2010, the department shall use the most recently published, measured actual costs of recycling for a specific beverage container material type if the department determines the number of beverage containers for that material type that is returned for recycling pursuant to Section 14551, based on the most recently published calendar year number of beverage containers returned for recycling, is less than 5 percent of the total number of beverage containers returned for recycling for all material types. The department shall determine the actual recycling cost to be used for calculating processing payments for those beverage containers in the following manner: | |
| 143 | - | ||
| 144 | - | ||
| 145 | 71 | ||
| 146 | 72 | (A) The department shall adjust the costs of recycling that material type every second year by the percentage change in the most recently measured cost of recycling HDPE plastic beverage containers, as determined by the department. The department shall use the percentage change in costs of recycling HDPE plastic beverage containers for this purpose, even if HDPE plastic beverage containers are less than 5 percent of the total volume of returned beverage containers. | |
| 147 | 73 | ||
| 148 | - | ||
| 149 | - | ||
| 150 | 74 | (B) The department shall adjust the recycling costs annually for that material type 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. | |
| 151 | - | ||
| 152 | - | ||
| 153 | 75 | ||
| 154 | 76 | (d) Except as specified in subdivision (e), the actual processing fee paid by a beverage manufacturer shall equal 65 percent of the processing payment calculated pursuant to subdivision (b). | |
| 155 | 77 | ||
| 156 | - | ||
| 157 | - | ||
| 158 | 78 | (e) 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: | |
| 159 | - | ||
| 160 | - | ||
| 161 | 79 | ||
| 162 | 80 | (1) On January 1, 2005, and annually thereafter, the processing fee shall equal the following amounts: | |
| 163 | 81 | ||
| 164 | - | ||
| 165 | - | ||
| 166 | 82 | (A) Ten percent of the processing payment for a container type with a recycling rate equal to or greater than 75 percent. | |
| 167 | - | ||
| 168 | - | ||
| 169 | 83 | ||
| 170 | 84 | (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. | |
| 171 | 85 | ||
| 172 | - | ||
| 173 | - | ||
| 174 | 86 | (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. | |
| 175 | - | ||
| 176 | - | ||
| 177 | 87 | ||
| 178 | 88 | (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. | |
| 179 | 89 | ||
| 180 | - | ||
| 181 | - | ||
| 182 | 90 | (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. | |
| 183 | - | ||
| 184 | - | ||
| 185 | 91 | ||
| 186 | 92 | (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. | |
| 187 | 93 | ||
| 188 | - | ||
| 189 | - | ||
| 190 | 94 | (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. | |
| 191 | - | ||
| 192 | - | ||
| 193 | 95 | ||
| 194 | 96 | (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. | |
| 195 | 97 | ||
| 196 | - | ||
| 197 | - | ||
| 198 | 98 | (I) Sixty-five percent of the processing payment for a container type with a recycling rate less than 30 percent. | |
| 199 | - | ||
| 200 | - | ||
| 201 | 99 | ||
| 202 | 100 | (2) The department shall calculate the recycling rate for purposes of paragraph (1) based on the 12-month period ending on June 30 that directly precedes the date of the January 1 processing fee determination. | |
| 203 | 101 | ||
| 204 | - | ||
| 205 | - | ||
| 206 | 102 | (f) 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 for any beverage container, based on the applicable preceding 12-month average scrap value or the preceding 3-month average scrap value, whichever is lower. Quarterly adjustments made pursuant to this subdivision shall not cause a change in the annual January 1 processing fee established by this section. | |
| 207 | - | ||
| 208 | - | ||
| 209 | 103 | ||
| 210 | 104 | (g) (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 that the department may prescribe. | |
| 211 | 105 | ||
| 212 | - | ||
| 213 | - | ||
| 214 | 106 | (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. With respect to the payment of processing fees for beverages manufactured outside the state and sold directly to consumers within the state with a direct shipper permit, the beverage manufacturer shall be deemed to be the person or entity named on the direct shipper permit issued pursuant to Section 23661.3 of the Business and Professions Code, and shall be responsible for paying to the department the total processing fee payment for all sales and transfers made directly to consumers in the state. If the department is unable to collect the processing fee from the person or entity named on the certificate of compliance or direct shipper permit, 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. | |
| 215 | - | ||
| 216 | - | ||
| 217 | 107 | ||
| 218 | 108 | (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. | |
| 219 | 109 | ||
| 220 | - | ||
| 221 | - | ||
| 222 | 110 | (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: | |
| 223 | - | ||
| 224 | - | ||
| 225 | 111 | ||
| 226 | 112 | (i) If the redemption payment and refund value is not increased pursuant to paragraph (3) of subdivision (a) of Section 14560, the beverage manufacturers projected processing fees for a calendar year total less than ten thousand dollars ($10,000). | |
| 227 | 113 | ||
| 228 | - | ||
| 229 | - | ||
| 230 | 114 | (ii) If the redemption payment and refund value is increased pursuant to paragraph (3) of subdivision (a) of Section 14560, the beverage manufacturers projected processing fees for a calendar year total less than fifteen thousand dollars ($15,000). | |
| 231 | - | ||
| 232 | - | ||
| 233 | 115 | ||
| 234 | 116 | (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. | |
| 235 | 117 | ||
| 236 | - | ||
| 237 | - | ||
| 238 | 118 | (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. | |
| 239 | - | ||
| 240 | - | ||
| 241 | 119 | ||
| 242 | 120 | (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). | |
| 243 | 121 | ||
| 244 | - | ||
| 245 | - | ||
| 246 | 122 | (h) When assessing processing fees pursuant to subdivision (a), the department shall assess the processing fee on each container sold, as provided in subdivisions (d) and (e), 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. | |
| 247 | - | ||
| 248 | - | ||
| 249 | 123 | ||
| 250 | 124 | (i) 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. | |
| 251 | 125 | ||
| 252 | - | ||
| 253 | - | ||
| 254 | 126 | (j) 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. | |
| 255 | - | ||
| 256 | - | ||
| 257 | 127 | ||
| 258 | 128 | (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 (e). | |
| 259 | 129 | ||
| 260 | - | ||
| 261 | - | ||
| 262 | 130 | (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. | |
| 263 | - | ||
| 264 | - | ||
| 265 | 131 | ||
| 266 | 132 | (k) (1) Commencing January 1, 2024, a processing fee equivalent to the processing fee applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504. | |
| 267 | 133 | ||
| 268 | - | ||
| 269 | - | ||
| 270 | 134 | (2) Commencing January 1, 2024, a processing payment equal to the processing payment applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504. | |
| 271 | - | ||
| 272 | - | ||
| 273 | 135 | ||
| 274 | 136 | (3) This subdivision shall become inoperative on January 1, 2026. |