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SB-452 The California Beverage Container Recycling and Litter Reduction Act.(2017-2018)

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Date Published: 04/09/2018 09:00 PM
SB452:v98#DOCUMENT

Amended  IN  Assembly  April 09, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 452


Introduced by Senator Glazer
(Coauthors: Assembly Members Baker and Cunningham)

February 15, 2017


An act to amend Section 8558 of the Government Code, relating to emergency services. An act to amend Sections 14536, 14571.6, 14571.8, 14581, and 14585 of, to add Sections 14510.7, 14571.65, and 14573.8 to, and to add and repeal Sections 14549.2, 14572.3, and 14575.2 of, the Public Resources Code, relating to beverage containers, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


SB 452, as amended, Glazer. Emergency services: state of emergency. The California Beverage Container Recycling and Litter Reduction Act.
(1) Existing law, the California Beverage Container Recycling and Litter Reduction Act, requires the Department of Resources Recycling and Recovery to annually designate convenience zones and requires that at least one certified recycling center that meets certain requirements be located within every convenience zone. Existing law authorizes the department to grant a convenience zone an exemption from certain redemption requirements, including certain dealer and recycling center redemption requirements, based on certain factors. Existing law limits the total number of exemptions that may be granted to 35% of the total number of convenience zones identified as having one or more of those factors applicable.
This bill, if there is a certified recycling center located within one mile of an unserved convenience zone, would require the department to grant that convenience zone an exemption from the redemption requirements and would increase the total number of exemptions that may be granted otherwise to 50% of the number identified as eligible. The bill would require the department to evaluate and recommend to the Legislature, on or before January 1, 2021, policies, incentives, and standards for ensuring the establishment and maintenance of a network of cost-effective direct redemption opportunities, as defined by the bill, in every community sufficient to support the recycling of not less than 80% of beverage containers sold in the state.
(2) The act requires dealers within a convenience zone where no recycling location has been established, or within a convenience zone that is unserved for 60 days and not exempt from convenience zone requirements, to submit an affidavit to the department stating that the dealer has met specified standards for redemption, including, among others, that the dealer is redeeming all empty beverage container types at all open cash registers or at one designated location on the dealer’s premises, during all hours that the dealer is open for business. If the dealer does not submit that affidavit, existing law requires the dealer to pay $100 per day to the department, for deposit in the California Beverage Container Recycling Fund, a continuously appropriated fund described in (3), until a recycling location is established or until the dealer meets the standards for redemption specified in the affidavit provision.
This bill would revise these convenience zone redemption duties and apply them only to dealers with gross annual sales of $2,000,000 or more. The bill, until January 1, 2021, would exempt certain dealers from these requirements.
(3) The act establishes the California Beverage Container Recycling Fund and, except for administrative costs, continuously appropriates moneys in the fund to the department for specified purposes, including the amount necessary to pay handling fees to certain types of recyclers to provide an incentive for the redemption of empty beverage containers in convenience zones. The act also continuously appropriates moneys in the fund to the department for expenditure for various purposes relating to beverage container recycling purposes that included, until January 1, 2018, up to $10,000,000 annually for market development payments for empty plastic beverage containers. The act also continuously appropriates from the fund $15,000,000 annually for payments for curbside programs and neighborhood dropoff programs and $10,500,000 annually for payments to cities and counties for beverage container recycling and litter cleanup activities.
This bill would require the department to offer a handling fee payment from the fund to certain certified recyclers within unserved convenience zones. The bill would make an appropriation by changing the terms and conditions under which the department is authorized to make payments from a continuously appropriated fund. The bill, until July 1, 2021, would require the handling fee to be set at the rate in effect on July 1, 2015. The bill would authorize the department, until July 1, 2021, to annually expend money from the fund for specified supplemental handling fee payments to low-volume recycling centers, and would reinstate the authority to appropriate up to $10,000,000 annually for market development payments for empty plastic beverage containers until January 1, 2024. By authorizing the expenditure of a continuously appropriated fund for new purposes, this bill would make an appropriation. The bill would require the department to withhold payments for curbside programs and neighborhood dropoff programs and for beverage container recycling and litter cleanup activities in any city, county, or city and county that has restricted or prohibited the siting of a certified recycling center or a supermarket site, respectively, as provided.
(4) Under the act, the department is required to calculate a processing fee for each beverage container with a specified scrap value, which is required to be paid by beverage manufacturers for each beverage container sold or transferred to a distributor or dealer. The department is required to calculate the processing fee in a specified manner, so that the actual processing fee generally equals 65% of the processing payment that the department is required to pay to processors if the scrap value of the container having a refund value pursuant to the act is less than the cost of recycling. The department is required to determine the statewide weighted average cost to recycle each beverage container type by conducting a survey, as specified. The department is required to establish a processing fee account in the continuously appropriated California Beverage Container Recycling Fund for each material type and to deposit processing fees and other amounts in the applicable account.
This bill would, for purposes of calculating processing payments, require the department, until January 1, 2021, to use the actual cost of recycling that was in effect on December 30, 2015, adjusted as specified. The bill would make an appropriation by changing the terms and conditions under which the department is authorized to make payments from a continuously appropriated fund. The bill would provide that the processing fees established by the department between the effective date of the bill and December 31, 2018, inclusive, shall not be higher than they would be absent these new provisions. The bill would require the department to suspend usage of surveys and calculations of recycling costs until at least January 1, 2020, and would authorize the department to redirect any contract funds for cost surveys and calculations to provide for a specified assessment and to utilize any contract funds available for the development of amendments to be recommended to the Legislature regarding specified provisions of the act.
(5) This bill would declare that it is to take effect immediately as an urgency statute.

The California Emergency Services Act specifies those events constituting a state or local emergency for purposes of the act and provides for specified activities in preparation for, or response to, those events. Under that act, a state of emergency means a duly proclaimed existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by, among other things, fire, storm, or riot.

This bill would additionally include cyberattacks within those conditions constituting a state of emergency and a local emergency.

Vote: MAJORITY2/3   Appropriation: NOYES   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 14510.7 is added to the Public Resources Code, to read:

14510.7.
 “Direct redemption opportunity” means a recycling opportunity that meets both of the following conditions:
(a) Provides reasonable availability for a consumer to redeem empty beverage containers and directly receive the redemption value for those containers.
(b) Provides sufficient overall redemption opportunities in the state whereby, in conjunction with other collection opportunities, not less than 80 percent of beverage containers sold in the state can be consistently and sustainably recycled.

SEC. 2.

 Section 14536 of the Public Resources Code is amended to read:

14536.
 (a) Except as provided in subdivision (b), the director shall adopt, amend, or repeal all rules and regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(b) (1) The director shall adopt regulations, and may adopt emergency regulations regulations, for the purposes of implementing Sections 14538, 14539, 14541, 14549.1, 14549.2, 14549.7, 14550, 14561, 14571.6, 14571.65, 14574, 14575, 14585, 14588.1, 14588.2, and 14591.
(2) Any emergency regulations, if adopted, shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and for the purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of these regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, including subdivision (e) of Section 11346.1 of the Government Code, any emergency regulations adopted pursuant to this section shall be filed with, but not be repealed by, the Office of Administrative Law and shall remain in effect until revised by the director.

SEC. 3.

 Section 14549.2 is added to the Public Resources Code, to read:

14549.2.
 (a) For purposes of this section, the following definitions shall apply:
(1) “Certified entity” means a recycling center, processor, or dropoff or collection program certified pursuant to this division.
(2) “Product manufacturer” means a person who manufactures a plastic product in this state.
(b) In order to develop California markets for empty plastic beverage containers collected for recycling in the state, the department may, consistent with Section 14581 and subject to the availability of funds, pay a market development payment to a certified entity or product manufacturer for empty plastic beverage containers collected and managed pursuant to this section.
(c) The department shall make a market development payment to a certified entity or product manufacturer in accordance with this section, only if the plastic beverage container is collected and either recycled or used in manufacturing, in the state, as follows:
(1) The department shall make a market development payment to a certified entity for empty plastic beverage containers that are collected for recycling in the state, that are subsequently washed and processed by a certified entity into a flake, pellet, or other form in the state, and made usable for the manufacture of a plastic product by a product manufacturer.
(2) The department shall make a market development payment to a product manufacturer for empty plastic beverage containers that are collected for recycling in the state, that are subsequently washed and processed into a flake, pellet, or other form in the state, and used by that product manufacturer to manufacture a product in this state.
(3) The department shall determine the amount of the market development payment, which may be set at a different level for a certified entity and a product manufacturer, but shall not exceed one hundred fifty dollars ($150) per ton. In setting the amount of the market development payment for both certified entities and product manufacturers, the department shall consider all of the following:
(A) The minimum funding level needed to encourage the in-state washing and processing of empty plastic beverage containers collected for recycling in this state.
(B) The minimum funding level needed to encourage the in-state manufacturing that utilizes empty plastic beverage containers collected for recycling in this state.
(C) The total amount of funds projected to be available for plastic market development payments and the desire to maintain the minimum funding level needed throughout the year.
(4) The department may make a market development payment to both a certified entity and a product manufacturer for the same empty plastic beverage container.
(d) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.

SEC. 4.

 Section 14571.6 of the Public Resources Code is amended to read:

In

14571.6.
 (a) Except as provided in Section 14572.3, in any convenience zone where no recycling location has been established which that satisfies the requirements of Section 14571, and in any convenience zone which that has exceeded the 60-day period for the establishment of a recycling center pursuant to Section 14571.7, all dealers within that zone shall, until a recycling location has been established in that zone, do one of the following:

(a)

(1) Submit to the department an affidavit form provided by the department stating that all of the following standards are being met by the dealer:

(1)

(A) The dealer redeems all empty beverage container types at all open cash registers or a minimum of one designated location on the dealer’s premises, during all hours that the dealer is open for business. The dealer is not required to redeem more than 24 beverage containers of any one type per consumer per day.

(2)

(B) The dealer has posted signs which that meet the size and location requirements specified in subdivision (b) of Section 14570, and which that conform to paragraph (2) of that subdivision.

(3)

(C) The dealer is delivering, or having delivered, all empty beverage containers received from the public to a certified recycling center or processor for recycling.

(b)

(2) Pay to the department for deposit in the fund the sum of one hundred dollars ($100) per day until a recycling location is established or until the standards for redemption specified in subdivision (a) paragraph (1) are met.
(b) This section shall apply only to a dealer with gross annual sales of two million dollars ($2,000,000) or more.

SEC. 5.

 Section 14571.65 is added to the Public Resources Code, to read:

14571.65.
 (a) It is the intent of the Legislature that the requirements and incentive payments of the act do all of the following:
(1) Provide residents of every community with direct redemption opportunities.
(2) Provide sufficient overall redemption opportunities in the state whereby, in conjunction with other collection opportunities, not less than 80 percent of beverage containers sold in the state can be consistently and sustainably recycled.
(3) Provide a marketplace and even playing field whereby the businesses that operate facilities that collect empty beverage containers for recycling are as sustainable and profitable, and the workers as fairly compensated, as the businesses and workers that produce and distribute the beverages for consumption.
(b) On or before January 1, 2021, the department shall evaluate and recommend to the Legislature policies, incentives, and standards for ensuring the establishment and maintenance of a network of cost-effective direct redemption opportunities in every community sufficient to support the recycling of not less than 80 percent of beverage containers sold in the state.
(c) When developing recommendations for direct redemption opportunities, the department shall consider all of the following factors:
(1) Population density.
(2) Distance between population centers and the recycler or other operation that redeems empty beverage containers.
(3) Total population of the community.
(4) Rural and nonrural areas.
(5) Alternative certified redemption opportunities.
(6) Best practices identified in a department-sponsored convenience study.
(7) The role of dealers, including supermarkets, in providing direct redemption opportunities.
(8) Enforcement mechanisms for ensuring direct redemption opportunities.
(9) The role of local governments to support direct redemption opportunities.
(10) The process for providing exemptions to the direct redemption opportunity standards.
(11) The role of the state in supporting direct redemption opportunities and the structure and amount of any payments.
(12) Any other factors that the department deems appropriate.
(d) The department shall conduct at least two stakeholder meetings to determine the factors to be considered when developing recommendations for direct redemption opportunities.

SEC. 6.

 Section 14571.8 of the Public Resources Code is amended to read:

14571.8.
 (a) No A lease entered into by a dealer after January 1, 1987, may shall not contain a leasehold restriction that prohibits or results in the prohibition of the establishment of a recycling location.
(b) The Except as provided in subdivision (h), the director may grant an exemption from the requirements of Section 14571 for an individual convenience zone only after the department solicits public testimony on whether or not to provide an exemption from Section 14571. The solicitation process shall be designed by the department to ensure that operators of recycling centers, dealers, and members of the public in the jurisdiction affected by the proposed exemption are aware of the proposed exemption. After evaluation of the testimony and any field review conducted, the department shall base a decision to exempt a convenience zone pursuant to this subdivision on one, or any combination, of the following factors:
(1) The exemption will not significantly decrease the ability of consumers to conveniently return beverage containers for the refund value to a certified recycling center redeeming all material types.
(2) Except as provided in paragraph (5), the The nearest certified recycling center is within a reasonable distance of the convenience zone being considered from exemption.
(3) The convenience zone is in the area of a curbside recycling program that meets the criteria specified in Section 14509.5.
(4) The requirements of Section 14571 cannot be met in a particular convenience zone due to local zoning or the dealer’s leasehold restrictions for leases in effect on January 1, 1987, and the local zoning or leasehold restrictions are not within the authority of the department and the dealer. However, any lease executed after January 1, 1987, shall meet the requirements specified in subdivision (a).
(5) The convenience zone has redeemed less than 60,000 containers per month for the prior 12 months and, notwithstanding paragraph (2), a certified recycling center is located within one mile of the convenience zone that is the subject of the exemption. months.
(c) The department shall review each convenience zone in which a certified recycling center was not located on January 1, 1996, to determine the eligibility of the convenience zone under the exemption criteria specified in subdivision (b).
(d) The total number of exemptions granted by the director under this section subdivision (b) shall not exceed 35 50 percent of the total number of convenience zones identified as eligible pursuant to this section. subdivision (b).
(e) The department may, on its own motion, or upon petition by any interested person, revoke a convenience zone exemption exemption, including an exemption granted under subdivision (h), if either of the following occurs:
(1) The condition or conditions that caused the convenience zone to be exempt no longer exists, and the department determines that the criteria for an exemption specified in this section are not presently applicable to the convenience zone.
(2) The department determines that the convenience zone exemption was granted due to an administrative error.
(f) If an exemption is revoked and a recycling center is not certified and operational in the convenience zone, the department shall, within 10 days of the date of the decision to revoke, serve all dealers in the convenience zone with the notice specified in subdivision (a) of Section 14571.7.
(g) An exemption shall not be revoked when a recycling center becomes certified and operational within an exempt convenience zone unless either of the events specified in paragraphs (1) and (2) of subdivision (e) occurs.
(h) If there is a certified recycling center located within one mile of an unserved convenience zone, the department shall grant an exemption from the requirements of Section 14571 for that convenience zone.

SEC. 7.

 Section 14572.3 is added to the Public Resources Code, to read:

14572.3.
 (a) A dealer described in subdivision (c) and who is located in a convenience zone described in subdivision (b) shall be exempt from the dealer requirements of Section 14571.6.
(b) Subdivision (a) shall apply only to a dealer that is located in a convenience zone that meets one of the following:
(1) The convenience zone was served by, or exempted because of, a recycling center that closed between January 1, 2016, and December 31, 2017, inclusive, at the initiation of the recycler and not at the initiation of the dealer.
(2) The convenience zone was served by, or exempted because of, a recycling center that closed as a result of an action taken by the department or local government on or after January 1, 2018.
(c) Subdivision (a) shall apply only to a dealer that meets one of the following conditions:
(1) The dealer demonstrates to the department that it has acted in full compliance with the requirements of Section 14571.6.
(2) The department approves the dealer for an exemption described in subdivision (a). The department may approve a dealer that was not in compliance with Section 14571.6 for an exemption only if the dealer pays the department any moneys owed by the dealer under Section 14571.6.
(d) The Legislature finds and declares that the purpose of this section is to temporarily suspend the obligations of dealers described in subdivision (c) to comply with the requirements of Section 14571.6 in order to focus attention and resources on the reestablishment of recycling centers in currently unserved convenience zones. Nothing in this section is intended to reduce the obligation of dealers and the department to site and maintain recycling centers.
(e) This section shall remain in effect only until January 1, 2021, and as of that date is repealed.

SEC. 8.

 Section 14573.8 is added to the Public Resources Code, to read:

14573.8.
 (a) It is the intent of the Legislature to maximize the recovery, redemption, and recycling of empty beverage containers generated in this state, including any empty beverage containers that have been deposited by consumers in curbside programs with the expectation that those containers will be recycled and the redemption value and any processing payment allocated to helping to offset the cost of operating those programs.
(b) No provision of this division, and no regulation adopted or enforced by the department to carry out this division, shall prevent the department from encouraging, supporting, or certifying entities established to recover, recycle, and redeem empty beverage containers from the curbside stream, including certifying entities that recover, sort, cancel, and claim the refund value and processing payments on any empty beverage containers recovered from the residual generated by a curbside recycling program or material recovery facility.
(c) No provision of this division, and no regulation adopted or enforced by the department to carry out this division, shall prevent the department from certifying a processor to recover, sort, cancel, and claim the refund value and processing payments on any empty beverage containers recovered from the residual generated by a curbside recycling program or material recovery facility.

SEC. 9.

 Section 14575.2 is added to the Public Resources Code, to read:

14575.2.
 (a) (1) Notwithstanding Section 14575, for purposes of calculating processing payments, the department shall use the actual costs of recycling that were in effect on December 30, 2015.
(2) Consistent with Section 14575, the department shall adjust the recycling costs described in paragraph (1) to reflect changes in the cost of living from December 30, 2015, as measured by the Bureau of Labor Statistics of the United States Department of Labor or a successor agency of the United States government as of the effective date of this section and at least once annually thereafter.
(3) Consistent with Section 2975 of Title 14 of the California Code of Regulations, the department shall adjust the recycling costs described in paragraph (1) to reflect the fixed reasonable financial returns for urban and rural recycling centers designated for the 2018 processing payment.
(b) Notwithstanding subdivisions (d) and (e) of Section 14575, for processing fees established by the department between the effective date of this section and December 31, 2018, the department shall not impose a processing fee on a beverage manufacturer that is higher than the processing fee that would be imposed without this section.
(c) (1) Notwithstanding subdivision (c) of Section 14575, the department shall suspend usage of surveys and calculations of recycling costs until at least January 1, 2020.
(2) The department may redirect any contract funds already approved for cost surveys and calculations as of the effective date of this section into an updated contract to utilize data collected for the 2015 processing payment to provide the department with an assessment of variations in the average cost of recycling based on, at a minimum, each of the following:
(A) Recycling location monthly average volume.
(B) Recycling location geographic area.
(C) Recycling location distance to end-use market.
(3) The department may utilize any contract funds available as of the effective date of this section for the analysis and development of recommendations to the Legislature of amendments to subdivisions (b) and (c) of Section 14575 to satisfy the legislative intent expressed in subdivision (f) of Section 14501 to create and maintain a marketplace where it is profitable to establish sufficient recycling centers and locations to provide consumers with convenient recycling opportunities through the establishment of minimum refund values and processing fees and, through the proper application of these elements, to enhance the profitability of recycling centers, recycling locations, and other beverage container recycling programs.
(d) This section shall remain in effect only until January 1, 2021, and as of that date is repealed.

SEC. 10.

 Section 14581 of the Public Resources Code is amended to read:

14581.
 (a) Subject to the availability of funds and in accordance with subdivision (b), the department shall expend the moneys set aside in the fund, pursuant to subdivision (c) of Section 14580, for the purposes of this section in the following manner:
(1) For each fiscal year, the department may expend the amount necessary to make the required handling fee payment pursuant to Section 14585.
(2) (A) Fifteen million dollars ($15,000,000) shall be expended annually for payments for curbside programs and neighborhood dropoff programs pursuant to Section 14549.6.
(B) The department shall withhold payments to curbside programs and neighborhood dropoff programs in any city, county, or city and county that has prohibited the siting of a certified recycling center, caused a certified recycling center to close its business, or adopted a land use policy that restricts or prohibits the siting of a certified recycling center within its jurisdiction.
(3) (A) Ten million five hundred thousand dollars ($10,500,000) may be expended annually for payments of five thousand dollars ($5,000) to cities and ten thousand dollars ($10,000) for payments to counties for beverage container recycling and litter cleanup activities, or the department may calculate the payments to counties and cities on a per capita basis, and may pay whichever amount is greater, for those activities.
(B) Eligible activities for the use of these funds may include, but are not necessarily limited to, support for new or existing curbside recycling programs, neighborhood dropoff recycling programs, public education promoting beverage container recycling, litter prevention, and cleanup, cooperative regional efforts among two or more cities or counties, or both, or other beverage container recycling programs.
(C) These funds shall not be used for activities unrelated to beverage container recycling or litter reduction.
(D) To receive these funds, a city, county, or city and county shall fill out and return a funding request form to the department. The form shall specify the beverage container recycling or litter reduction activities for which the funds will be used.
(E) The department shall annually prepare and distribute a funding request form to each city, county, or city and county. The form shall specify the amount of beverage container recycling and litter cleanup funds for which the jurisdiction is eligible. The form shall not exceed one double-sided page in length, and may be submitted electronically. If a city, county, or city and county does not return the funding request form within 90 days of receipt of the form from the department, the city, county, or city and county is not eligible to receive the funds for that funding cycle.
(F) For the purposes of this paragraph, per capita population shall be based on the population of the incorporated area of a city or city and county and the unincorporated area of a county. The department may shall withhold payment to any city, county, or city and county that has prohibited the siting of a supermarket site, caused a supermarket site to close its business, or adopted a land use policy that restricts or prohibits the siting of a supermarket site within its jurisdiction.
(4) One million five hundred thousand dollars ($1,500,000) may be expended annually in the form of grants for beverage container recycling and litter reduction programs.
(5) (A) The department shall expend the amount necessary to pay the processing payment established pursuant to Section 14575. The department shall establish separate processing fee accounts in the fund for each beverage container material type for which a processing payment and processing fee are calculated pursuant to Section 14575, or for which a processing payment is calculated pursuant to Section 14575 and a voluntary artificial scrap value is calculated pursuant to Section 14575.1, into which account shall be deposited both of the following:
(i) All amounts paid as processing fees for each beverage container material type pursuant to Section 14575.
(ii) Funds equal to the difference between the amount in clause (i) and the amount of the processing payments established in subdivision (b) of Section 14575, and adjusted pursuant to paragraph (2) of subdivision (c) of, and subdivision (f) of, Section 14575, to reduce the processing fee to the level provided in subdivision (e) of Section 14575, or to reflect the agreement by a willing purchaser to pay a voluntary artificial scrap value pursuant to Section 14575.1.
(B) Notwithstanding Section 13340 of the Government Code, the moneys in each processing fee account are hereby continuously appropriated to the department for expenditure without regard to fiscal years, for purposes of making processing payments pursuant to Section 14575.
(6) Up to five million dollars ($5,000,000) may be annually expended by the department for the purposes of undertaking a statewide public education and information campaign aimed at promoting increased recycling of beverage containers.
(7) Up to ten million dollars ($10,000,000) may be expended annually by the department for quality incentive payments for empty glass beverage containers pursuant to Section 14549.1.
(8) (A)Up to ten million dollars ($10,000,000) ($10,000,000), less any amount appropriated in the annual Budget Act, may be expended annually by the department for market development payments for empty plastic beverage containers pursuant to Section 14549.2, until January 1, 2018. 2024.

(B)In addition to the amount specified in subparagraph (A), the department may expend the amount calculated pursuant to subparagraph (C) for market development payments for empty plastic beverage containers pursuant to Section 14549.2.

(C)The department shall calculate the amount authorized for expenditure pursuant to subparagraph (B) in the following manner:

(i)The department shall annually determine, on or before January 1, whether the amount of funds estimated to be necessary pursuant to clause (ii) of subparagraph (A) of paragraph (5) for deposit to a processing fee account established by the department for plastic beverage containers to make processing payments for plastic beverage containers for the current calendar year is less than the total amount of funds that were estimated to be necessary the previous calendar year pursuant to clause (ii) of subparagraph (A) of paragraph (5) for deposit to that processing fee account.

(ii)If the amount estimated to be necessary for the current calendar year, as specified in clause (i), is less than the amount estimated to be necessary for the previous calendar year, the department shall calculate the amount of that difference.

(iii)The department shall expend an amount that is not greater than 50 percent of the amount calculated pursuant to clause (ii) for purposes of subparagraph (B).

(iv)If the department determines that the amount of funds authorized for expenditure pursuant to this subparagraph is not needed to make plastic market development payments pursuant to subparagraph (B) in the calendar year for which that amount is allocated, the department may expend those funds during the following year.

(v)If the department determines that there are insufficient funds to both make the market development payments pursuant to subparagraph (B) and to deposit the amount required by clause (ii) of subparagraph (A) of paragraph (5), for purposes of making the processing payments and reducing the processing fees pursuant to Section 14575 for plastic beverage containers, the department shall suspend the implementation of this subparagraph and subparagraph (B).

(D)Subparagraphs (B) and (C) shall remain operative only until January 1, 2018.

(b) (1) If the department determines, pursuant to a review made pursuant to Section 14556, that there may be inadequate funds to pay the payments required by this division, the department shall immediately notify the appropriate policy and fiscal committees of the Legislature regarding the inadequacy.
(2) On or before 180 days, but not less than 80 days, after the notice is sent pursuant to paragraph (1), the department may reduce or eliminate expenditures, or both, from the funds as necessary, according to the procedure set forth in subdivision (c).
(c) If the department determines that there are insufficient funds to make the payments specified pursuant to this section and Section 14575, the department shall reduce all payments proportionally.
(d) Before making an expenditure pursuant to paragraph (6) of subdivision (a), the department shall convene an advisory committee consisting of representatives of the beverage industry, beverage container manufacturers, environmental organizations, the recycling industry, nonprofit organizations, and retailers to advise the department on the most cost-effective and efficient method of the expenditure of the funds for that education and information campaign.
(e) Subject to the availability of funds, the department shall retroactively pay in full any payments provided in this section that have been proportionally reduced during the period of January 1, 2010, through June 30, 2010.

SEC. 11.

 Section 14585 of the Public Resources Code is amended to read:

14585.
 (a) The department shall adopt guidelines and methods for paying handling fees to supermarket sites, nonprofit convenience zone recyclers, or rural region recyclers to provide an incentive for the redemption of empty beverage containers in convenience zones. The guidelines shall include, but not be limited to, all of the following:
(1) Handling fees shall be paid on a monthly basis, in the form and manner adopted by the department. The department shall require that claims for the handling fee be filed with the department not later than the first day of the second month following the month for which the handling fee is claimed as a condition of receiving any handling fee.
(2) The department shall determine the number of eligible containers per site for which a handling fee will be paid in the following manner:
(A) Each eligible site’s combined monthly volume of glass and plastic beverage containers shall be divided by the site’s total monthly volume of all empty beverage container types.
(B) If the quotient determined pursuant to subparagraph (A) is equal to, or more than, 10 percent, the total monthly volume of the site shall be the maximum volume which is eligible for a handling fee for that month.
(C) If the quotient determined pursuant to subparagraph (A) is less than 10 percent, the department shall divide the volume of glass and plastic beverage containers by 10 percent. That quotient shall be the maximum volume that is eligible for a handling fee for that month.

(3) (A) On and after the effective date of the act amending this section during the 2011–12 Regular Session, and until March 1, 2013, the department shall pay a handling fee per eligible container in the amount determined pursuant to subdivisions (f) and (g).

(B)On and after July 1, 2014, the department

(3) The department shall pay a handling fee per eligible container in the amount determined pursuant to subdivision (f).
(4) If the eligible volume in any given month would result in handling fee payments that exceed the allocation of funds for that month, as provided in subdivision (b), sites with higher eligible monthly volumes shall receive handling fees for their entire eligible monthly volume before sites with lower eligible monthly volumes receive any handling fees.
(5) (A) If a dealer where a supermarket site, nonprofit convenience zone recycler, or rural region recycler is located ceases operation for remodeling or for a change of ownership, the operator of that supermarket site site, nonprofit convenience zone recycler, or rural region recycler shall be eligible to apply for handling fees for that site for a period of three months following the date of the closure of the dealer.
(B) Every supermarket site operator, nonprofit convenience zone recycler, or rural region recycler shall promptly notify the department of the closure of the dealer where the supermarket site, nonprofit convenience zone recycler, or rural region recycler is located.
(C) Notwithstanding subparagraph (A), any operator who fails to provide notification to the department pursuant to subparagraph (B) shall not be eligible to apply for handling fees.
(b) The department may allocate the amount authorized for expenditure for the payment of handling fees pursuant to paragraph (1) of subdivision (a) of Section 14581 on a monthly basis and may carry over any unexpended monthly allocation to a subsequent month or months. However, unexpended monthly allocations shall not be carried over to a subsequent fiscal year for the purpose of paying handling fees but may be carried over for any other purpose pursuant to Section 14581.
(c) (1) The department shall not make handling fee payments to more than one certified recycling center in a convenience zone. If a dealer is located in more than one convenience zone, the department shall offer a single handling fee payment to a supermarket site located at that dealer. This handling fee payment shall not be split between the affected zones. The department shall stop making handling fee payments if another recycling center certifies to operate within the convenience zone without receiving payments pursuant to this section, if the department monitors the performance of the other recycling center for 60 days and determines that the recycling center is in compliance with this division. Any recycling center that locates in a convenience zone, thereby causing a preexisting recycling center to become ineligible to receive handling fee payments, is ineligible to receive any handling fee payments in that convenience zone.
(2) The department shall offer a single handling fee payment to a rural region recycler located anywhere inside a convenience zone, if that convenience zone is not served by another certified recycling center and the rural region recycler does either of the following:
(A) Operates a minimum of 30 hours per week in one convenience zone.
(B) Serves two or more convenience zones, and meets all of the following criteria:
(i) Is the only certified recycler within each convenience zone.
(ii) Is open and operating at least eight hours per week in each convenience zone and is certified at each location.
(iii) Operates at least 30 hours per week in total for all convenience zones served.
(3) In a convenience zone that, as of the effective date of the measure that added this paragraph, has been continuously unserved by a certified recycling location for at least six months, the department shall offer a handling fee payment to a recycler located within the convenience zone that operates a minimum of 30 hours per week regardless of physical location within that convenience zone and that is certified on or after the effective date of that bill.
(d) The department may require the operator of a supermarket site site, or the operator of a rural region recycler recycler, receiving handling fees to maintain records for each location where beverage containers are redeemed, and may require the supermarket site or rural region recycler to take any other action necessary for the department to determine that the supermarket site or rural region recycler does not receive an excessive handling fee.
(e) The department may determine and utilize a standard container per pound rate, for each material type, for the purpose of calculating volumes and making handling fee payments.
(f) (1) On or before January 1, 2008, and every two years thereafter, the department shall conduct a survey pursuant to this subdivision of a statistically significant sample of certified recycling centers that receive handling fee payments to determine the actual cost incurred for the redemption of empty beverage containers by those certified recycling centers. The department shall conduct these cost surveys in conjunction with the cost surveys performed by the department pursuant to subdivision (b) of Section 14575 to determine processing payments and processing fees. The department shall include, in determining the actual costs, only those allowable costs contained in the regulations adopted pursuant to this division that are used by the department to conduct cost surveys pursuant to subdivision (b) of Section 14575.
(2) Using the information obtained pursuant to paragraph (1), the department shall then determine the statewide weighted average cost incurred for the redemption of empty beverage containers, per empty beverage container, at recycling centers that receive handling fees.
(3) Except as provided in subdivision (g), the The department shall determine the amount of the handling fee to be paid for each empty beverage container by subtracting the amount of the statewide weighted average cost per container to redeem empty beverage containers by recycling centers that do not receive handling fees from the amount of the statewide weighted average cost per container determined pursuant to paragraph (2).
(4) The department shall adjust the statewide average cost determined pursuant to paragraph (2) for each beverage container 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.
(5) The cost information collected pursuant to this section at recycling centers that receive handling fees shall not be used in the calculation of the processing payments determined pursuant to Section 14575.

(g) (1) On and after the effective date of the act amending this section during the 2011–12 Regular Session, and until March 1, 2013, the per-container handling fee shall not be less than the amount of the per-container handling fee that was in effect on July 1, 2011.

(6) Notwithstanding paragraphs (2) and (3), for the period from the effective date of the measure that added this paragraph to July 1, 2021, inclusive, the handling fee shall be set at the rate in effect on July 1, 2015.

(2)

(g) The department may update the methodology and scrap values used for calculating the handling fee from the most recent cost survey if it finds that the handling fee resulting from the most recent cost survey does not accurately represent the actual cost incurred for the redemption of empty beverage containers by those certified recycling centers.
(h) (1) The department may expend up to three million dollars ($3,000,000) annually from the fund for supplemental handling fee payments to low-volume recycling centers and recyclers willing to open a recycling center in a convenience zone that has recently become unserved. The department shall allocate the amount authorized for these supplemental handling fee payments into 12 equal monthly allotments.
(2) Supplemental handling fee payments shall be distributed once per month in equal amounts to recycling centers that are eligible for handling fees pursuant to subdivision (a), subject to all of the following requirements:
(A) A recycling center receiving a handling fee pursuant to this subdivision shall have no more than 600,000 beverage containers eligible for handling fees per month.
(B) Priority shall be given to recycling centers with the lowest volumes of beverage containers that are located in rural regions.
(C) (i) Payments shall be distributed first to no more than 100 recycling centers with the lowest volumes of beverage containers that are located in rural regions, in order of lowest volume.
(ii) After payments are distributed pursuant to clause (i), payments shall be distributed to other recycling centers with the lowest volumes of beverage containers, in order of lowest volume.
(3) No more than 400 recycling centers shall receive supplemental handling fee payments pursuant to this subdivision.
(4) The department may make the supplemental handling fee payments authorized pursuant to this subdivision by augmenting handling fee payments received by recyclers pursuant to subdivision (f).
(5) This subdivision shall become inoperative on July 1, 2021.

SEC. 12.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
Because of the unprecedented closures of recycling centers statewide, reduced access to redemptions for consumers, declining recycling rates, and higher costs associated for grocers and retailers, it is necessary for this act to take effect immediately.
SECTION 1.Section 8558 of the Government Code is amended to read:
8558.

Three conditions or degrees of emergency are established by this chapter:

(a)“State of war emergency” means the condition that exists immediately, with or without a proclamation thereof by the Governor, whenever this state or nation is attacked by an enemy of the United States, or upon receipt by the state of a warning from the federal government indicating that such an enemy attack is probable or imminent.

(b)“State of emergency” means the duly proclaimed existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions such as air pollution, fire, flood, storm, epidemic, riot, drought, cyberattack, sudden and severe energy shortage, plant or animal infestation or disease, the Governor’s warning of an earthquake or volcanic prediction, or an earthquake, or other conditions, other than conditions resulting from a labor controversy or conditions causing a “state of war emergency,” which, by reason of their magnitude, are or are likely to be beyond the control of the services, personnel, equipment, and facilities of any single county, city and county, or city and require the combined forces of a mutual aid region or regions to combat, or with respect to regulated energy utilities, a sudden and severe energy shortage requires extraordinary measures beyond the authority vested in the California Public Utilities Commission.

(c)“Local emergency” means the duly proclaimed existence of conditions of disaster or of extreme peril to the safety of persons and property within the territorial limits of a county, city and county, or city, caused by conditions such as air pollution, fire, flood, storm, epidemic, riot, drought, cyberattack sudden and severe energy shortage, plant or animal infestation or disease, the Governor’s warning of an earthquake or volcanic prediction, or an earthquake, or other conditions, other than conditions resulting from a labor controversy, which are or are likely to be beyond the control of the services, personnel, equipment, and facilities of that political subdivision and require the combined forces of other political subdivisions to combat, or with respect to regulated energy utilities, a sudden and severe energy shortage requires extraordinary measures beyond the authority vested in the California Public Utilities Commission.