Bill Text

Bill Information


Add To My Favorites | print page

AB-3056 Beverage containers: quality incentive payments: refund values: handling fees.(2005-2006)

SHARE THIS: share this bill in Facebook share this bill in Twitter
AB3056:v92#DOCUMENT

Assembly Bill No. 3056
CHAPTER 907

An act to amend Sections 14509.4, 14524, 14536, 14560, 14574, 14575, 14581, and 14585 of, to amend, repeal, and add Section 14549.1 of, to add and repeal Section 14549.2 of, and to add Sections 14549.7 and 14571.5 to, the Public Resources Code, relating to beverage containers, making an appropriation therefor, and declaring an urgency thereof, to take effect immediately.

[ Approved by Governor  September 30, 2006. Filed with Secretary of State  September 30, 2006. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 3056, Committee on Natural Resources. Beverage containers: quality incentive payments: refund values: handling fees.
(1) The California Beverage Container Recycling and Litter Reduction Act requires a distributor of specified beverage containers to pay a redemption payment to the Department of Conservation (department), for each beverage container, as defined, sold or transferred, for deposit in the California Beverage Container Recycling Fund.
The money in the fund is continuously appropriated to the department to pay refund values, administrative fees, and a reserve for contingencies. The department is then authorized to make other specified expenditures from the money remaining in the fund after the money for those purposes has been set aside.
The department is required to pay a processor the refund value for every empty beverage container received by the processor from a recycler and existing law sets the refund value at $0.08 for every 2 beverage containers redeemed or for a single beverage container with a capacity of 24 or more fluid ounces, and $0.04 for a single or unpaired beverage container redeemed in a single transaction.
This bill would authorize the department, after setting aside the money required for those other expenditures, to expend those moneys to pay an increased refund value in an amount greater than the specified refund value, but by no more than $0.01, except as specified, until July 1, 2007, thereby making an appropriation.
(2) The California Beverage Container Recycling and Litter Reduction Act defines “convenience zone,” for purposes of providing recycling centers under the act, as an area within a 1/2 mile radius of a supermarket or, alternatively, in a rural region where the convenience zone is otherwise not being served by a certified recycling center or location, the area within a 3-mile radius of a supermarket.
This bill would revise the definition of convenience zone to instead authorize the department to increase a convenience zone in a rural region to include the area within a 3-mile radius of a supermarket, if the expanded convenience zone would then be served by a single existing certified recycling center or location. The bill would additionally authorize the department to designate a convenience zone in a rural region where there is no supermarket, but there are 2 or more dealers located within a one-mile radius of each other, and that meets other specified criteria.
(3) The act requires a distributor of beverage containers to pay the department the redemption payment for every beverage container sold or transferred to a dealer, less 1% for the distributor’s administrative costs.
This bill would increase to 1.5% the amount that a distributor is authorized to withhold from the redemption payment for administrative costs.
(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 dealer.
This bill would, for the 2007 calendar year, require the department to reduce to zero the processing fee paid for any container type with a recycling rate equal to, or greater than 40%.
(5) Existing law authorizes the department to pay a quality glass incentive payment to either an operator of a curbside recycling program or any other entity certified under the act that color sorts glass beverage containers for recycling. The department is authorized to expend not more than $3,000,000 per calendar year in making these incentive payments.
The bill would instead authorize the department to pay a quality incentive payment for empty glass, plastic, and aluminum beverage containers that meet specified conditions. The bill would authorize the department to expend, after January 1, 2007, up to $15,000,000 annually for making these quality incentive payments, thereby making an appropriation.
(6) Existing law requires the department, subject to the availability of funds, to annually expend $15,000,000, in the form of grants for beverage container litter reduction programs and recycling programs issued to certified community conservation corps meeting specified criteria.
The bill would additionally authorize the department to expend $20,000,000, from January 1, 2007, until January 1, 2008, in the form of competitive grants to a community conservation corps meeting specified qualifications. The bill would require the department to adopt criteria and procedures for the evaluation of those grants.
(7) Existing law authorizes the department to spend up to $10,000,000 annually, until January 1, 2007, to issue grants for recycling market development and expansion-related activities aimed at increasing the recycling of beverage containers.
This bill would increase the amount the department is authorized to expend for those purposes to $20,000,000, and would extend that date to January 1, 2012, thereby making an appropriation. The bill would additionally allow those grants to fund research and development to provide high-quality materials that are substantially free of contamination.
The bill would also authorize the department to pay a market development payment, until January 1, 2012, to a certified entity or product manufacturer for empty plastic beverage containers collected and either recycled or used in manufacturing, in the state. The bill would require the department to determine the amount of the market development payment, which the department would be authorized to set at different levels for a certified entity and a product manufacturer, but the payment would be prohibited from exceeding $150 per ton. The bill would authorize the department to annually expend up to $5,000,000 to make these market development payments for empty plastic beverage containers, until January 1, 2012.
The bill would authorize the department to establish a recycling incentive payment program for recycling centers and dropoff or collection programs that meet specified conditions, including that the number of beverage containers redeemed or collected, as applicable, by the recycling center or dropoff or collection program during a 6-month base period for which payments are authorized to be made, in calendar year 2007, exceeds by more than 6.5%, the number of beverage containers redeemed or collected by that entity during the prior 6-month period, and 5% for calendar years 2008 and 2009. The bill would provide that the amount of the recycling incentive payment is $0.01 for each eligible beverage container and would authorize the department to expend up to $10,000,000 annually for the payment of these recycling incentive payments, until the payment for containers redeemed or collected by December 31, 2009, have been paid, thereby making an appropriation.
The bill would authorize the department to expend up to $5,000,000 on a one-time basis, beginning January 1, 2007, in coordination with the Department of Parks and Recreation for the purposes of installing source separated beverage container recycling receptacles at each of the state parks, starting with those parks that have the highest day use. The bill would also authorize the department to expend up to $5,000,000 from January 1, 2007, to January 1, 2008, to provide grants to local governments or nonprofit agencies to place multifamily housing source separated beverage container recycling receptacles in low-income communities.
(8) Existing law authorizes the department to annually expend $5,000,000 annually to undertake a statewide public education and information campaign aimed at promoting increased recycling of beverage containers.
The bill would additionally authorize the department to expend up to $5,000,000, until January 1, 2008, to undertake a multilingual multimedia statewide public education and information campaign.
(9) Existing law authorizes the department to pay a handling fee of $0.018 per container to supermarket sites, nonprofit convenience zone recyclers, and rural region recyclers to provide an incentive to redeem beverage containers. Existing law authorizes the department to pay a total of $30,000,000 in handling fees from July 1, 2004, to June 30, 2005, and requires the department to expend $26,000,000 per fiscal year thereafter. Existing law requires, as a condition of eligibility for these payments, that the site or recycler redeem not less than 60,000 beverage containers during the calendar month in which the handling fee is paid, requires a beverage container with a capacity of 24 ounces or more to be considered as 2 beverage containers, and prohibits the amount of the total handling fee payment to a site or recycler from exceeding $2,300 per month.
This bill would increase the total amount the department is required to pay for handling fees, for the fiscal year commencing July 1, 2005, up to $31,000,000, for the fiscal year commencing July 1, 2006, up to $33,000,000 and for the fiscal year commencing July 1, 2007, up to $35,000,000. The bill would provide that for each fiscal year commencing July 1, 2008, the department would be authorized to expend the amount necessary to pay the handling fees, thereby making an appropriation.
The bill would, as of July 1, 2008, revise the eligibility conditions for the payment of handling fees to eliminate that 60,000 minimum beverage container redemption requirement, the special consideration for 24 ounce or more containers, and the $2,300 total handling fee payment limit.
The bill would require the department, by January 1, 2008, and every 2 years thereafter, to conduct a survey of certified recycling centers receiving handling fee payments to determine the actual cost for the redemption of beverage containers by those certified recycling centers and, using this information, determine the statewide weighted average cost for empty beverage containers, at recycling centers that receive handling fees. The bill would require the department to pay a handling fee, on and after July 1, 2008, in an amount determined by subtracting the amount of the statewide average per-container cost to redeem beverage containers incurred by a certified recycler that does not receive a handling fee from the statewide average per-container cost incurred by recycling centers that receive handling fees.
(10) Item No. 3480-011-0133 of the Budget Act of 2002 and Item No. 3480-011-0133 of the Budget Act of 2003 transferred specified amounts from the beverage container fund to the General Fund as a loan and required those loans to be repaid by June 30, 2009.
This bill would instead require these loans to be fully repaid on or before June 30, 2013.
(11) This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 14509.4 of the Public Resources Code is amended to read:

14509.4.
 “Convenience zone” means either of the following:
(a) The area within a one-half mile radius of a supermarket.
(b) The area designated by the department pursuant to Section 14571.5.

SEC. 2.

 Section 14524 of the Public Resources Code is amended to read:

14524.
 “Refund value” means the amount established for each type of beverage container pursuant to Section 14560 that is paid by the following:
(a) A certified recycling center to the consumer or dropoff or collection center for each beverage container redeemed by the consumer or dropoff or collection center. With respect to consumers returning containers to recycling centers, the refund value shall not be subject to tax under the Personal Income Tax Law (Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code) or the Bank and Corporation Tax Law (Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code).
(b) A processor to a certified recycling center, dropoff or collection program, curbside program, or nonprofit dropoff program for each beverage container received from the certified recycling center, dropoff or collection program, curbside program, or nonprofit dropoff program.
(c) The department to a processor, for every beverage container received by the processor from a certified recycling center, curbside program, dropoff or collection program, or nonprofit dropoff program.

SEC. 3.

 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 for the purposes of implementing Sections 14538, 14539, 14541, 14549.1, 14549.2, 14549.7, 14550, 14561, 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. 4.

 Section 14549.1 of the Public Resources Code is amended to read:

14549.1.
 In order to improve the quality and marketability of glass containers collected for recycling in the state by curbside recycling programs, the department may, consistent with Section 14581 and subject to the availability of funds, pay a quality glass incentive payment to either an operator of a curbside recycling program registered pursuant to Section 14551.5, or to any other entity certified pursuant to this division, that color sorts glass beverage containers for recycling. The total amount paid by the department pursuant to this section shall not exceed three million dollars ($3,000,000) per calendar year. The department shall make a quality glass incentive payment based on all of the following:
(a) The amount of the quality glass incentive payment shall be up to thirty dollars ($30) per ton, as determined by the department.
(b) The department shall make a quality glass incentive payment only for color-sorted glass beverage containers that are substantially free of contamination.
(c) The department shall make a quality glass incentive payment only for glass beverage containers that are either collected color sorted by curbside recycling programs, or collected commingled by curbside recycling programs and subsequently color sorted by the collector or any other entity certified pursuant to this division.
(d) Only one payment shall be made for each color-sorted glass beverage container collected.
(e) This section shall remain in effect until January 1, 2007, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2007, deletes or extends that date.

SEC. 5.

 Section 14549.1 is added to the Public Resources Code, to read:

14549.1.
 (a) In order to improve the quality and marketability of empty beverage containers collected for recycling in the state by curbside recycling programs or dropoff or collection programs, the department may, consistent with Section 14581 and subject to the availability of funds, pay a quality incentive payment for each material type, as specified in subdivision (c).
(b) The department may make a quality incentive payment pursuant to this section to either an operator of a curbside recycling program registered pursuant to Section 14551.5, or to any other entity certified pursuant to this division.
(c) Subject to subdivision (a), the department shall pay a quality incentive payment for each type of beverage container material in accordance with the following conditions:
(1) For quality incentive payments for empty glass beverage containers, all of the following shall apply:
(A) The department may make a quality incentive payment only for color-sorted glass beverage containers that are substantially free of contamination.
(B) The department may make a quality incentive payment for empty glass beverage containers that are either collected color sorted by curbside recycling programs or dropoff or collection programs, or that are collected mixed color by curbside recycling programs or dropoff or collection programs and are subsequently color sorted by the collector or any other entity certified pursuant to this division.
(C) The amount of the quality incentive payment for empty glass beverage containers shall be up to sixty dollars ($60) per ton, as determined by the department.
(2) For quality incentive payments for empty plastic beverage containers, both of the following shall apply:
(A) The department may make a quality incentive payment only for plastic beverage containers collected by curbside recycling programs or dropoff or collection programs, that are sorted by resin type, consistent with any quality specifications that the department may adopt.
(B) The amount of the quality plastic incentive payment shall be up to one hundred eighty dollars ($180) per ton, as determined by the department.
(3) For quality payments for empty aluminum beverage containers, all of the following shall apply:
(A) The department may make a quality incentive payment only for aluminum beverage containers that are free of any and all metallic and nonmetallic items, other than used aluminum containers.
(B) The department may make a quality incentive payment for empty aluminum beverage containers that are collected commingled by curbside recycling programs or dropoff or collection programs, and subsequently cleaned by the collector or any other entity certified pursuant to this division, of any and all metallic and nonmetallic items, other than used aluminum containers, consistent with any quality specifications that the department may adopt.
(C) The amount of the quality incentive payment for empty aluminum beverage containers shall be up to one hundred twenty-five dollars ($125) per ton, as determined by the department.
(d) An operator of a curbside recycling program or any other certified entity receiving a quality incentive payment shall make available for inspection and review any relevant record that the department determines is necessary to verify the accuracy of data upon which the quality incentive payment is based and the operator’s or certified entity’s compliance with any applicable regulation.
(e) The department may make only one quality incentive payment for each empty beverage container collected pursuant to this section.
(f) This section shall become operative on January 1, 2007.

SEC. 6.

 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 any 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.
(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, 2012, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2012, deletes or extends that date.

SEC. 7.

 Section 14549.7 is added to the Public Resources Code, to read:

14549.7.
 (a) Commencing on January 1, 2007, and consistent with Section 14581, and to the extent that existing funds are available for this purpose, the department shall establish a recycling incentive payment for eligible recycling centers and dropoff or collection programs for empty beverage containers accepted or collected directly from consumers.
(b) To be eligible for recycling incentive payments, a recycling center, or dropoff or collection program shall meet both of the following requirements:
(1) (A) The recycling center or dropoff or collection program is certified, and “open for business,” as specified in Section 14571, during the entire two-year period prior to the six-month period for which payments are made, during the entire six-month period for which payments are made, and at the time the payment is made. A six-month period shall commence either on January 1 or July 1.
(B) Notwithstanding subparagraph (A), a recycling center or dropoff or collection program that was operational prior to July 1, 2005, may receive a recycling incentive payment for eligible beverage containers collected on or after January 1, 2007.
(2) The number of beverage containers accepted or collected directly from consumers for recycling by the recycling center or dropoff or collection program during the six-month period for which payments are made exceeds by 6.5 percent, or more, for calendar year 2007, and by 5 percent, or more, for calendar years 2008 and 2009, the number of beverage containers accepted or collected directly from consumers for recycling by that entity during the same six-month period of the prior year.
(c) (1) Eligible beverage containers are those beverage containers that are accepted or collected directly from consumers for recycling by an eligible recycling center or dropoff or collection program during the six-month period for which payments are made that exceed the number of beverage containers accepted or collected directly from consumers by that entity in the same six-month period of the prior year. Eligible beverage containers determined pursuant to this paragraph shall be the “eligible volume” used to make payments pursuant to paragraph (4) of subdivision (d).
(2) Empty beverage containers purchased or collected by a recycling center or a dropoff or collection program from another certified or registered entity are not eligible for recycling incentive payments.
(d) The department shall make recycling incentive payments for each eligible beverage container accepted or collected directly from consumers by an eligible recycling center and dropoff or collection program and properly reported to the department by a processor, based upon all of the following:
(1) The payment amount shall be calculated based upon the number of eligible beverage containers, as specified in subdivision (c), collected by the eligible recycling centers and dropoff or collection program, as specified in subdivision (b), during the six-month period for which the payments are to be made.
(2) The per-container rate shall be up to one cent ($0.01) for each eligible beverage container, pursuant to subdivision (c).
(3) The amount to be paid to each recycling center and dropoff or collection program shall be based upon the per-container rate, multiplied by each eligible program’s total number of eligible beverage containers calculated pursuant to paragraph (1).
(e) The department shall disburse payments pursuant to this section within 6 months of the end of the six-month period for which the payments are calculated pursuant to paragraph (1) of subdivision (d), subject to the availability of funds.
(f) Only one payment shall be made for each eligible empty beverage container collected by an eligible recycling center or dropoff or collection program.
(g) The operator of an eligible recycling center and dropoff or collection program shall make available for inspection and review any relevant record that the department determines is necessary to verify compliance with this section.
(h) This section shall remain in effect only until January 1, 2010, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2010, deletes or extends that date.

SEC. 8.

 Section 14560 of the Public Resources Code is amended to read:

14560.
 (a) (1) Except as provided in paragraph (3), a beverage distributor shall pay the department, for deposit into the fund, a redemption payment of four cents ($0.04) for a beverage container sold or offered for sale in this state by the distributor.
(2) A beverage container with a capacity of 24 fluid ounces or more shall be considered as two beverage containers for purposes of redemption payments paid pursuant to paragraph (1).
(3) On and after July 1, 2007, the amount of the redemption payment and refund value for a beverage container with a capacity of less than 24 fluid ounces sold or offered for sale in this state by a dealer shall equal five cents ($0.05) and the amount of redemption payment and refund value for a beverage container with a capacity of 24 fluid ounces or more shall be ten cents ($0.10), if the aggregate recycling rate reported pursuant to Section 14551 for all beverage containers subject to this division is less than 75 percent for the 12-month reporting period from January 1, 2006, to December 31, 2006, or for any calendar year thereafter.
(b) Except as provided in subdivision (c), a beverage container sold or offered for sale in this state has a refund value of four cents ($0.04) if the beverage container has a capacity of less than 24 fluid ounces and eight cents ($0.08) if the beverage container has a capacity of 24 fluid ounces or more.
(c) Notwithstanding subdivision (b), the department may, on and after January 1, 2007, but not after July 1, 2007, increase the amount of the refund value specified in subdivision (b), by no more than one cent ($0.01), if the container has a capacity of less than 24 fluid ounces, and by two cents ($0.02) if the container has a capacity of 24 fluid ounces or more, if the department determines, as specified in subdivision (f) of Section 14581, there are sufficient moneys remaining in the fund to make these increased payments.
(d) (1) The department shall periodically review the fund to ensure that there are adequate funds in the fund to pay refund values and other disbursements required by this division.
(2) If the department determines, pursuant to a review made pursuant to paragraph (1), that there may be inadequate funds to pay the refund values and necessary disbursements required by this division, the department shall immediately notify the Legislature of the need for urgent legislative action.
(3) On or before 180 days after the notice is sent pursuant to paragraph (2), the department may reduce or eliminate expenditures, or both, from the fund as necessary, according to the procedure set forth in Section 14581, to ensure that there are adequate funds in the fund to pay the refund values and other disbursements required by this division.
(e) This section does not apply to a refillable beverage container.
(f) The repeal and reenactment of this section by Chapter 815 of the Statutes of 1999 do not affect any obligations or penalties imposed by this section, as it read on January 1, 1999.

SEC. 9.

 Section 14571.5 is added to the Public Resources Code, to read:

14571.5.
 The department may, in a rural region, as identified pursuant to subparagraph (A) of paragraph (2) of subdivision (b) of Section 14571, upon petition by an interested person, do either of the following:
(a) (1) Increase a convenience zone to include the area within a three-mile radius of a supermarket, if the expanded convenience zone would then be served by a single existing certified recycling center or location.
(2) This subdivision applies only to a convenience zone that is otherwise not being served by a certified recycling center or location meeting the requirements of Section 14571 or is exempted by the department pursuant to Section 14571.8.
(b) (1) Designate a convenience zone pursuant to Section 14571.1 in an area where there is no supermarket, but with two or more dealers located within a one-mile radius of each other, and that meets all of the following criteria:
(A) The dealers in that area have combined gross annual sales of two million dollars ($2,000,000) or more, as certified by the petitioner in an affidavit filed with the petition.
(B) The convenience zone encompasses a three-mile radius, with the center of the zone established at the dealer, located closest to the existing recycling center specified in subparagraph (D).
(C) The convenience zone does not overlap any other existing convenience zone.
(D) The convenience zone is served by a single existing certified recycling center.
(2) The department shall identify the dealer locations only for the purpose of providing a reference point in the establishment of the convenience zone pursuant to this subdivision.
(3) If the existing recycling location in a convenience zone designated pursuant to this subdivision ceases operations, the convenience zone shall also cease to exist until a new recycling location is established, and the department is petitioned by an interested person to designate a convenience zone.

SEC. 10.

 Section 14574 of the Public Resources Code is amended to read:

14574.
 (a) (1) A distributor of beverage containers shall pay to the department the redemption payment for every beverage container, other than a refillable beverage container, sold or transferred to a dealer, less 1.5 percent for the distributor’s administrative costs.
(2) The payment made by a distributor shall be made not later than the last day of the third month following the sale. The distributor shall make the payment in the form and manner that the department prescribes.
(b) (1) Notwithstanding subdivision (a), if a distributor 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 distributor may make a single annual payment of redemption payments, if the distributor meets either of the following requirements:
(A) If the redemption payment and refund value is not increased pursuant to paragraph (3) of subdivision (a) of Section 14560, the distributor’s projected redemption payment for a calendar year totals less than fifty thousand dollars ($50,000).
(B) If the redemption payment and refund value is increased pursuant to paragraph (3) of subdivision (a) of Section 14560, the distributor’s projected redemption payment for a calendar year totals less than seventy-five thousand dollars ($75,000).
(2) An annual redemption payment made pursuant to this subdivision is due and payable on or before February 1 for every beverage container sold or transferred by the distributor to a dealer in the previous calendar year.
(3) A distributor shall notify the department of its intent to make an annual redemption payment pursuant to this subdivision on or before January 31 of the calendar year for which the payment will be due.

SEC. 11.

 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 paragraphs (2) and (3) 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 for recycling centers.
(c) The department shall base the processing payment pursuant to this section upon all of the following:
(1) The department shall use the average scrap values paid to recyclers between October 1, 2001, and September 30, 2002, for the 2003 calculation and the same 12-month period directly preceding the year in which the processing fee is calculated for any subsequent calculation.
(2) To calculate the 2003 processing payments, the department shall use the recycling costs for certified recycling centers used to calculate the January 1, 2002, processing payments.
(3) 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.
(d) Notwithstanding paragraph (1) of subdivision (b) and subdivision (c), for the purpose of setting the cost for recycling non polyethylene terephthalate (non-PET) plastic containers by certified recycling centers to determine the processing payment for those containers, the department shall use a recycling cost of six hundred forty-two dollars and sixty-nine cents ($642.69) per ton for the January 1, 2002, calculation of the processing payment.
(e) Except as specified in subdivision (f), the actual processing fee paid by a beverage manufacturer shall equal 65 percent of the processing payment calculated pursuant to subdivision (b).
(f) 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) The processing fee in effect on January 1, 2004, shall be equal to the following amounts:
(A) For a container type that was subject to this division on January 1, 1999, 12 percent of the processing payment if the recycling rate of that container type was equal to, or greater than, 60 percent for the 1999 calendar year.
(B) For a container type that was not subject to this division on January 1, 1999, 12 percent of the processing payment, if the recycling rate of that container type was equal to, or greater than, 60 percent for the 2001 calendar year.
(C) For a container type that was not subject to this division on January 1, 1999, 15 percent of the processing payment if the recycling rate for that container type was equal to, or greater than, 45 percent, but less than 60 percent for the 2001 calendar year.
(D) For a container type that was not subject to this division on January 1, 1999, 20 percent of the processing payment if the recycling rate for that container type was equal to, or greater than, 30 percent, but less than 45 percent, for the 2001 calendar year.
(2) 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.
(3) Notwithstanding this section, for calendar year 2007 only, the department shall reduce to zero the processing fee paid for any container type with a recycling rate equal to, or greater than 40 percent.
(4) The department shall calculate the recycling rate for purposes of paragraphs (2) and (3) based on the 12-month period ending on June 30 that directly precedes the date of the January 1 processing fee determination.
(g) 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 notwithstanding any change in the amount of the processing fee established pursuant to this section, for any beverage container, if the department makes the following determinations:
(1) The statewide scrap value paid by processors for the material type for the most recent available 12-month period directly preceding the quarter in which the processing payment is to be adjusted is 5 percent more or 5 percent less than the average scrap value used as the basis for the processing payment currently in effect.
(2) Funds are available in the processing fee account for the material type.
(3) Adjusting the processing payment is necessary to further the objectives of this division.
(h) (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 which 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. If the department is unable to collect the processing fee from the person or entity named on the certificate of compliance, 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 manufacturer’s 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 manufacturer’s 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).
(i) When assessing processing fees pursuant to subdivision (a), the department shall assess the processing fee on each container sold, as provided in subdivisions (e) and (f), 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.
(j) 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.
(k) 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 (f).
(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.

SEC. 12.

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

(a) Subject to the availability of funds, and pursuant to subdivision (c), the department shall expend the moneys set aside in the fund, pursuant to subdivision (c) of Section 14580, for the purposes of this section:

14581.
 (1) (A) On and after July 1, 2005, to June 30, 2006, inclusive, up to thirty-one million dollars ($31,000,000) may be expended for that fiscal year for the payment of handling fees pursuant to Section 14585.
(B) On and after July 1, 2006, to June 30, 2007, inclusive, up to thirty-three million dollars ($33,000,000) may be expended for that fiscal year for the payment of handling fees pursuant to Section 14585.
(C) On and after July 1, 2007, to June 30, 2008, inclusive, up to thirty-five million dollars ($35,000,000) may be expended for that fiscal year for the payment of handling fees pursuant to Section 14585.
(D) For each fiscal year commencing July 1, 2008, the department may expend the amount necessary to make the required handling fee payment pursuant to Section 14585.
(2) Fifteen million dollars ($15,000,000) shall be expended annually for payments for curbside programs and neighborhood dropoff programs pursuant to Section 14549.6.
(3) (A) Fifteen million dollars ($15,000,000), plus the proportional share of the cost-of-living adjustment, as provided in subdivision (b), shall be expended annually in the form of grants for beverage container litter reduction programs and recycling programs issued to either of the following:
(i) Certified community conservation corps that were in existence on September 30, 1999, or that are formed subsequent to that date, that are designated by a city or a city and county to perform litter abatement, recycling, and related activities, if the city or the city and county has a population, as determined by the most recent census, of more than 250,000 persons.
(ii) Community conservation corps that are designated by a county to perform litter abatement, recycling, and related activities, and are certified by the California Conservation Corps as having operated for a minimum of two years and as meeting all other criteria of Section 14507.5.
(B) Any grants provided pursuant to this paragraph shall not comprise more than 75 percent of the annual budget of a community conservation corps.
(C) The community conservation corps issued grants pursuant to clause (ii) of subparagraph (A) shall also meet the criteria of Section 14507.6, if Assembly Bill 3038 of the Regular Session of the Legislature is enacted and adds Section 14507.6 to the Public Resources Code.
(4) (A) On or after July 1, 2007, until June 30, 2008, for only that fiscal year, up to twenty million dollars ($20,000,000) may be expended in the form of competitive grants issued to community conservation corps that are designated by a city, or county and that meet all of the following criteria:
(i) Are certified by the California Conservation Corps as having operated for a minimum of two years.
(ii) Meet all other requirements under Section 14507.5.
(B) The department shall prepare and adopt criteria and procedures for evaluating grant applications on a competitive basis. Eligible activities for the use of these funds shall include developing new projects, or enhancing or assisting existing projects, to increase beverage container recycling and increasing the quality of recycled material at the following locations:
(1) Multi-family dwellings.
(2) Schools.
(3) Commercial, state, and local government buildings.
(4) Bars, restaurants, hotels, and lodging establishments, and entertainment venues.
(5) Parks and beaches.
(C) Any grants provided pursuant to this paragraph shall not comprise more than 75 percent of the annual budget of a community conservation corps.
(D) Any grants provided pursuant to this paragraph shall support one-time capital improvement projects and shall not be used to support ongoing staff activities.
(E) Any grant funds appropriated pursuant to this paragraph that have not been awarded to a grantee prior to the end of the 2007–08 fiscal year shall revert to the fund.
(5) Ten million five hundred thousand dollars ($10,500,000) may be expended annually for payments of five thousand dollars ($5,000) to cities and ten thousand dollars ($10,000) for payments to counties for beverage container recycling and litter cleanup activities, or the department may calculate the payments to counties and cities on a per capita basis, and may pay whichever amount is greater, for those activities.
(B) Eligible activities for the use of these funds may include, but are not necessarily limited to, support for new or existing curbside recycling programs, neighborhood dropoff recycling programs, public education-promoting beverage container recycling, litter prevention, and cleanup, cooperative regional efforts among two or more cities or counties, or both, or other beverage container recycling programs.
(C) These funds may not be used for activities unrelated to beverage container recycling or litter reduction.
(D) To receive these funds, a city, county, or city and county shall fill out and return a funding request form to the Department of Conservation. The form shall specify the beverage container recycling or litter reduction activities for which the funds will be used.
(E) The Department of Conservation shall annually prepare and distribute a funding request form to each city, county, or city and county. The form shall specify the amount of beverage container recycling and litter cleanup funds for which the jurisdiction is eligible. The form shall not exceed one double-sided page in length, and may be submitted electronically. If a city, county, or city and county does not return the funding request form within 90 days of receipt of the form from the department, the city, county, or city and county is not eligible to receive the funds for that funding cycle.
(F) For the purposes of this paragraph, per capita population shall be based on the population of the incorporated area of a city or city and county and the unincorporated area of a county. The department may withhold payment to any city, county, or city and county that has prohibited the siting of a supermarket site, caused a supermarket site to close its business, or adopted a land use policy that restricts or prohibits the siting of a supermarket site within its jurisdiction.
(6) One million five hundred thousand dollars ($1,500,000) may be expended annually in the form of grants for beverage container recycling and litter reduction programs.
(7) (A) The department shall expend the amount necessary to pay the processing payment and supplemental processing payment established pursuant to Sections 14575 and 14575.5 and pay processing fee rebates pursuant to Section 14575.2. 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 all 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 paragraphs (2) and (3) of subdivision (c) of, and subdivision (f) of, Section 14575, to reduce the processing fee to the level provided in subdivision (f) of Section 14575, or to reflect the agreement by a willing purchaser to pay a voluntary artificial scrap value pursuant to Section 14575.1.
(iii) Funds equal to an amount sufficient to pay the total amount of the supplemental processing payments established pursuant to Section 14575.5.
(B) Notwithstanding Section 13340 of the Government Code, the money in each processing fee account is hereby continuously appropriated to the department for expenditure without regard to fiscal years, for purposes of making processing payments and supplemental processing payments, and reducing processing fees, pursuant to Sections 14575 and 14575.5 and paying processing fee rebates pursuant to Section 14575.2.
(8) Up to five million dollars ($5,000,000) may be annually expended by the department for the purposes of undertaking a statewide public education and information campaign aimed at promoting increased recycling of beverage containers.
(9) Until January 1, 2008, the department may expend up to five million dollars ($5,000,000) for the purposes of undertaking a statewide public education and information campaign aimed at promoting increased recycling of beverage containers that meets both of the following requirements:
(A) The public education and information campaign is multimedia and includes print, radio, and television.
(B) The public education and information campaign is multilingual.
(10) (A) Until January 1, 2007, up to three million dollars ($3,000,000) shall be expended annually for the payment of quality glass incentive payments pursuant to Section 14549.1.
(B) On and after January 1, 2007, up to fifteen million dollars ($15,000,000) may be expended annually by the department for quality incentive payments for empty beverage containers pursuant to Section 14549.1.
(11) Up to twenty million dollars ($20,000,000) may be expended annually by the department, until January 1, 2012, to issue grants for recycling market development and expansion-related activities aimed at increasing the recycling of beverage containers, including, but not limited to, the following:
(A) Research and development of collecting, sorting, processing, cleaning, or otherwise upgrading the market value of recycled beverage containers.
(B) Identification, development, and expansion of markets for recycled beverage containers.
(C) Research and development for products manufactured using recycled beverage containers.
(D) Research and development to provide high-quality materials that are substantially free of contamination.
(E) Payments to California manufacturers who recycle beverage containers that are marked by resin type identification code “3,” “4,” “5,” “6,” or “7,” pursuant to Section 18015.
(12) Up to ten million dollars ($10,000,000) may be transferred on a one-time basis by the department to the Recycling Infrastructure Loan Guarantee Account, for expenditure pursuant to Section 14582.
(13) Up to ten million dollars ($10,000,000) may be expended annually by the department for the payment of recycling incentive payments pursuant to Section 14549.7 until payments for eligible beverage containers redeemed or collected for recycling on or before December 31, 2009, have been paid.
(14) Up to five million dollars ($5,000,000) may be expended annually by the department for market development payments for empty plastic beverage containers pursuant to Section 14549.2, until January 1, 2012.
(15) Up to five million dollars ($5,000,000) may be expended, by the department, on a one-time basis beginning on January 1, 2007, in coordination with the Department of Parks and Recreation for the purposes of installing source separated beverage container recycling receptacles at each of the state parks, starting with those parks that have the highest day use.
(16) Up to five million dollars ($5,000,000) may be expended, from January 1, 2007, to January 1, 2008, to provide grants to local governments or nonprofit agencies to place multifamily housing source separated beverage container recycling receptacles in low-income communities.
(b) The fifteen million dollars ($15,000,000) that is set aside pursuant to paragraph (3) of subdivision (a) is a base amount that the department shall adjust annually to reflect any increases or decreases in the cost of living, as measured by the Department of Labor, or a successor agency, of the federal government.
(c) (1) The department shall review all funds on a quarterly basis to ensure that there are adequate funds to make the payments specified in this section and the processing fee reductions required pursuant to Section 14575.
(2) If the department determines, pursuant to a review made pursuant to paragraph (1), that there may be inadequate funds to pay the payments required by this section and the processing fee reductions required pursuant to Section 14575, the department shall immediately notify the appropriate policy and fiscal committees of the Legislature regarding the inadequacy.
(3) On or before 180 days after the notice is sent pursuant to paragraph (2), the department may reduce or eliminate expenditures, or both, from the funds as necessary, according to the procedure set forth in subdivision (d).
(d) If the department determines that there are insufficient funds to make the payments specified pursuant to this section and Section 14575, the department shall reduce all payments proportionally.
(e) Prior to making an expenditure pursuant to paragraph (7) of subdivision (a), the department shall convene an advisory committee consisting of representatives of the beverage industry, beverage container manufacturers, environmental organizations, the recycling industry, nonprofit organizations, and retailers, to advise the department on the most cost-effective and efficient method of the expenditure of the funds for that education and information campaign.
(f) After setting aside money for the expenditures required pursuant to subdivisions (a) and (b) and Section 14580, the department may, on and after January 1, 2007, but not after July 1, 2007, expend remaining moneys in the fund to pay a refund value in an amount greater than the refund value established pursuant to subdivision (b) of Section 14560.

SEC. 13.

 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) (A) To be eligible for any handling fee, a supermarket site recycling center, nonprofit convenience zone recycler, or rural region recycler shall redeem not less than 60,000 beverage containers, during the calendar month in which the handling fee is claimed or have redeemed not less than an average of 60,000 beverage containers per month during the previous 12 months.
(B) Subparagraph (A) shall not apply on and after July 1, 2008.
(3) (A) A beverage container with a capacity of 24 fluid ounces or more shall be considered as two beverage containers for purposes of determining the eligibility percentage, any handling fee calculations, and payments.
(B) Subparagraph (A) shall not apply on and after July 1, 2008.
(4) 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.
(5) (A) From the effective date of the statute enacted by Assembly Bill 3056 of the 2005–06 Regular Session to June 30, 2008, inclusive, the department shall pay a handling fee of 1.8 cents ($0.018) per eligible beverage container, as determined pursuant to paragraph (4).
(B) On and after July 1, 2008, the department shall pay a handling fee per eligible container in the amount determined pursuant to subdivision (f).
(6) (A) Notwithstanding paragraph (5), the total handling fee payment to a supermarket site, nonprofit convenience zone recycler, or rural region recycler shall not exceed two thousand three hundred dollars ($2,300) per month.
(B) Subparagraph (A) shall not apply on and after July 1, 2008.
(7) 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.
(8) (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 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.
(d) The department may require the operator of a supermarket site or rural region 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) On and after July 1, 2008, 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.

SEC. 14.

 Notwithstanding Item No. 3480-011-0133 of the Budget Act of 2002 (Chapter 379 of the Statutes of 2002) and Item No. 3480-011-0133 of the Budget Act of 2003 (Chapter 157 of the Statutes of 2003), or Section 14580 of the Public Resources Code, any transfer made from the Beverage Container Recycling Fund to the General Fund pursuant to those items that is required to be fully repaid by June 30, 2009, shall instead be fully repaid on or before June 30, 2013.

SEC. 15.

 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 Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to encourage the recycling of beverage containers, thereby protecting public health and safety, and the environment, it is necessary that this act take effect immediately.