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SB-1302 The California Beverage Container Recycling and Litter Reduction Act: recycling machines: pilot projects.(2023-2024)

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Date Published: 04/29/2024 02:00 PM
SB1302:v98#DOCUMENT

Amended  IN  Senate  April 29, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1302

Introduced by Senator Blakespear

February 15, 2024

An act to add Sections 14514.5, 14520.7, and 14539.3 to, and to repeal Section 14520.6 of, Section 14520.7 to, and to add and repeal Section 14571.85 of, the Public Resources Code, relating to beverage container recycling, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 1302, as amended, Blakespear. The California Beverage Container Recycling and Litter Reduction Act: recycling machines. machines: pilot projects.
The California Beverage Container Recycling and Litter Reduction Act, administered by the Department of Resources Recycling and Recovery, is established to promote beverage container recycling. The act requires every Act requires a beverage distributor to pay to the Department of Resources Recycling and Recovery a redemption payment to the Department of Resources Recycling and Recovery for every beverage container for each beverage container, as defined, sold or offered for sale in the state. The act requires the department is required to deposit those amounts in the redemption payment into the California Beverage Container Recycling Fund. The moneys Moneys in the fund are continuously appropriated to the department for specified purposes, including paying to pay refund values, processing payments, administrative fees, and handling fees to certain types of recyclers to provide an incentive incentives for the redemption of empty beverage containers in the state. A violation of the act is a crime.

The act requires the department to certify recycling centers and processors and makes them eligible for payments and fees from the fund under certain conditions. The act requires certified recycling centers and processors to comply with specified statutory requirements and implementing regulations, including the requirement that recycling centers accept empty beverage containers from all consumers. Existing law also requires that processors accept empty beverage containers from all recycling centers, and that they visually inspect containers. The act requires the department to conduct investigations and unannounced inspections of certified recycling centers and processors to determine that the act’s requirements are satisfied. A violation of the act is a crime.

This bill would require the department to certify an operator of a recycling machine, as defined, as a processor and as a recycling center, subject to specified conditions, and would make the operator eligible for refund values, processing payments, and other program payments, thereby making an appropriation. The bill would impose a state-mandated local program by expanding the scope of a crime under the act.

This bill would, until January 1, 2034, authorize up to 3 recycling machine pilot projects, as specified. The bill would define “recycling machine” as a mechanical device that accepts empty machine acceptable beverage containers for redemption, as provided. The bill would authorize the department to select a jurisdiction for a pilot project based on certain criteria, and would specify the requirements for the operation of a pilot project. The bill would authorize the department to issue probationary certificates of operation to operators of recycling machine pilot projects, as specified. The bill would make an operator of a recycling machine pilot project operator eligible for processing payments and handling fees. By authorizing these additional expenditures from a continuously appropriated fund, the bill would make an appropriation. By creating new requirements under the act, a violation of which would be a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.Section 14514.5 is added to the Public Resources Code, to read:
14514.5.

“Noncertified recycler” means a person, entity, or operation which is not certified by the department and which purchases empty beverage containers from consumers, or from dropoff or collection programs.

SEC. 2.Section 14520.6 of the Public Resources Code is repealed.

SEC. 3.SECTION 1.

 Section 14520.7 is added to the Public Resources Code, to read:

14520.7.
 “Recycling machine” means a mechanical device that accepts empty beverage containers for redemption and does all of the following:
(a) Recognizes, sorts, cleans, cancels, and processes empty beverage containers for subsequent manufacturing.
(b) Renders each type of processed empty beverage container in a form for which there is a demonstrated recycling end user.
(c) Provides accurate documentation, acceptable by the department, for each container type, of the amount of empty beverage containers received and the amount of any postfilled containers received.
(d) Aggregates and pays the refund value payments if more than one beverage container is redeemed in a single transaction.

SEC. 4.Section 14539.3 is added to the Public Resources Code, to read:
14539.3.

(a)Notwithstanding any other law or regulation, including Sections 14538, 14539, 14540, 14571.9, and 14572, the department shall certify an operator of a recycling machine as a dual certified entity pursuant to this section and as the department deems necessary in furtherance of the goals and purposes of this division. For purposes of this section, “dual certified” means certified as a processor and recycling center.

(b)All of the following apply to an operator of a recycling machine as a condition of dual certification and as a requirement for operation and program payment eligibility:

(1)(A)The operator shall make available for inspection and review its computer and software systems and any relevant record of the operator that the department determines is necessary for the purpose described in Section 14571.3.

(B)For the purposes described in Section 14571.3, the department may inspect any recycling machine that accepts empty beverage containers upon at least 24 hours’ notice before the inspection.

(2)The operator shall inspect and verify the loads of a recycling machine to determine the amount of empty beverage containers and eligibility for refund value before it pays any refund value. The department may require the operator to use machine vision approved by the department for that inspection, but a visual inspection shall not be required.

(3)The operator shall demonstrate to the department that there is willing end user for recycling empty beverage containers processed by the recycling machine.

(4)The operator shall not accept empty beverage containers from another recycling center as a processing center.

(5)The operator shall notify the department promptly of any material change in its operations that conflicts with the information submitted in its application for dual certification.

(c)Notwithstanding any other law, if a recycling machine is deployed in a private location, the operator of that recycling machine shall not be required to accept empty beverage containers from any other consumers.

(d)A dual certified recycling machine operator shall be eligible to make a claim for and receive refund values and program payments in the same form and manner as a processor pursuant to Section 14573, except the dual-certified recycling machine operator shall not pay refund values, quality incentive payments, processing payments, or any other value as a processor to another recycler or recycling center and shall not receive refund values, quality incentive payments, processing payments, or any other value as a recycler from another processor.

(e)A dual certified recycling machine operator may pay the applicable refund value in the same form and manner as a bag drop recycling center pursuant to Section 14538.

(f)A dual certified recycling machine operator shall not receive any refund value, quality incentive payment, or processing payment on an empty beverage container that the operator knew, or should have known, came from outside the state, or on any other beverage container or other product that is ineligible for redemption.

(g)The department may adopt, by regulation, other requirements and standards of eligibility for certification, operation, or payments authorized under this division relating to a recycling machine operator.

SEC. 2.

 Section 14571.85 is added to the Public Resources Code, immediately following Section 14571.8, to read:

14571.85.
 (a) (1) Until January 1, 2034, the department may approve up to three recycling machine pilot projects that meet the requirements of this section.
(2) If a recycling machine pilot project ends before January 1, 2032, the department may consider additional recycling machine pilot project proposals, but not more than three pilot projects may operate at the same time.
(b) A proposal for a recycling machine pilot project, which shall be submitted by an applicant jurisdiction, shall be designed to improve redemption opportunities in unserved convenience zones. It is the intent of the Legislature to create new, convenient recycling opportunities to improve consumer redemption of eligible beverage containers and to increase recycling rates in jurisdictions served by pilot projects and to provide recycling opportunities to improve consumer redemption of eligible containers in recycling machine pilot project areas, including in rural areas.
(c) A jurisdiction that opts to be served by a recycling machine pilot project shall submit its pilot project proposal to the department for approval. A proposal shall include all of the following elements:
(1) A map of the recycling machine pilot project area, including proposed locations for an operator of a recycling machine.
(2) A list of proposed operators of pilot project recycling machines.
(3) Contact information for the jurisdiction and the proposed operator of a pilot project recycling machine.
(4) Planned dates of operation.
(5) A description of how the pilot project will meet the requirements of this section.
(6) Additional elements as determined by the department.
(d) The department may issue a probationary certificate of operation to an operator of a recycling machine pilot project participating in an approved pilot project. A certificate issued under this section shall be valid, and shall specify that the certificate is valid, for a period of not more than five years or until the end of the recycling machine pilot project, whichever comes first. Notwithstanding certification requirements imposed by this division or implementing regulations, both of the following application review timelines shall apply to a pilot project:
(1) The department shall notify each applicant and the appropriate contact for a proposed operator of a recycling machine pilot project within 30 calendar days of receipt of the proposal, or receipt of additional information if the proposal was initially deemed incomplete, that the proposal for certification is either complete and accepted for further review or incomplete and the reasons for incompleteness.
(2) Upon determining that a proposal is complete, the department shall notify the applicant and appropriate contact for a proposed operator of a recycling machine pilot project in writing within 30 calendar days that the application is either approved with probationary status or denied and the reasons for denial.
(e) In approving a recycling machine pilot project, the department shall consider all of the following factors:
(1) The number of unserved convenience zones that will be served by the recycling machine pilot project.
(2) The total number of hours per week the operator of a recycling machine pilot project will operate.
(3) The total number of locations that will be served under the recycling machine pilot project.
(4) Whether the jurisdiction has actively prevented the siting or operation of a certified recycling center at a supermarket site.
(5) The geographic distribution of jurisdictions proposing a recycling machine pilot project.
(6) Potential impacts to existing certified recycling centers.
(7) Additional factors deemed relevant by the department.
(f) A location for a recycling machine pilot project shall comply with both of the following:
(1) It shall serve at least one of the following:
(A) At least three unserved convenience zones.
(B) One or more convenience zones impacting a total of at least 30 dealers in unserved convenience zones.
(C) A rural region.
(2) It shall be in a jurisdiction that, as of the effective date of the application for the pilot project, meets at least one of the following conditions:
(A) Has at least six unserved convenience zones.
(B) Has 75 percent of the convenience zones in the jurisdiction unserved.
(C) Is located in a rural region.
(g) An operator of a recycling machine pilot project shall do all of the following:
(1) Comply with all requirements imposed on certified recycling centers that consists of unmanned automated equipment in accordance with subdivision (f) of Section 14571.
(2) Comply with all requirements imposed on certified processing facilities pursuant to Section 14539.
(3) Notify the department promptly of any material change in its operations that conflicts with the information submitted in its application for the certifications described in paragraphs (1) and (2).
(4) Demonstrate to the department that there is a willing end user for recycling empty beverage containers processed by the recycling machine.
(5) Accept and pay the refund value for all eligible beverage container types.
(6) Comply with all of the following requirements regarding business hours:
(A) Be open a minimum of one weekday per week for at least eight hours.
(B) Be open at least eight hours per week during the weekend.
(C) In addition to the requirement in subparagraph (B), be open at least five hours per week during periods other than from Monday through Friday from 9 a.m. to 5 p.m.
(7) Notify the department in writing 10 calendar days before any change of the location where redeemed empty beverage containers are stored.
(8) Only redeem eligible empty beverage container material purchased from consumers for recycling, and not accept material from any other certified or noncertified person or entity, including, but not limited to, recycling centers, dropoff or collection programs, curbside programs, or processors.
(9) Keep separate transaction records for each location with the recycling machine pilot project.
(10) Be located within the recycling machine pilot project area.
(11) Provide the department with the name, address, email address, and telephone number of a contact person for purposes of this section.
(12) Comply with additional requirements as deemed necessary by the department.
(h) An operator of a recycling machine pilot project shall not do either of the following:
(1) Establish a location for redeeming a beverage container for its refund value that is outside of the recycling machine pilot project area.
(2) Accept empty beverage containers from another recycling center as a processing center.
(i) A dealer within the jurisdiction of a recycling machine pilot project shall do both of the following:
(1) Post a clear and conspicuous sign of at least 10 inches by 15 inches at each public entrance to the dealer’s place of business that specifies the name of the recycling machine pilot project location nearest to the dealer, as provided by the department, the days and hours of operation of the recycling machine pilot project location, and the toll-free telephone number established by the department pursuant to this section. This information shall be kept accurate and up to date.
(2) Comply with comply with Sections 14570, 14571, and 14578, if a recycling machine pilot project ceases operation or the recycling machine pilot project’s certification has been revoked by the department.
(j) The department shall do both of the following:
(1) Inform all dealers within a convenience zone of any change in status of a recycling machine pilot project serving that convenience zone within 10 calendar days.
(2) Establish a toll-free telephone number and an internet website to disseminate information regarding beverage container recycling opportunities.
(k) (1) The department may revoke the approval of a recycling machine pilot project or the associated probationary certification of an operator of a recycling machine pilot project participating in the recycling machine pilot project, or both, at any time if the jurisdiction or the operator of a recycling machine pilot project fails to meet the conditions outlined in the department’s approval of the application or violates this division or a regulation adopted under this division, except as to violations of the division or regulations that are inconsistent with the operation of an approved recycling machine pilot project. If the department revokes a probationary certification of an operator of a recycling machine pilot project, the department may require the jurisdiction or the operator of a recycling machine pilot project to take the steps necessary to ensure that the recycling machine pilot project achieves its goals consistent with the approved recycling machine pilot project application.
(2) If the approval of a recycling machine pilot project is revoked, the review process described in Section 14571.7 shall apply to each convenience zone that was a part of the recycling machine pilot project.
(l) (1) Notwithstanding paragraph (1) of subdivision (c) of Section 14585, an operator of a recycling machine pilot project that has been certified by the department on a probationary basis under an approved recycling machine pilot project shall be eligible to apply for handling fees under Section 14585 and to receive from certified processors the amounts specified in subdivision (a) of Section 14573.5 for refund values, administrative costs, and processing payments.
(2) An operator of a recycling machine pilot project shall be eligible to make a claim for and receive refund values and program payments in the same form and manner as a processor pursuant to Section 14573, except the operator shall not pay refund values, quality incentive payments, processing payments, or any other value as a processor to another recycler or recycling center and shall not receive refund values, quality incentive payments, processing payments, or any other value as a recycler from another processor.
(3) Notwithstanding paragraph (1) of subdivision (c) of Section 14585, the existence of an operator of a recycling machine pilot project shall not affect the handling fee eligibility of a recycling center.
(4) For purposes of handling fee eligibility, an operator of a recycling machine pilot project may be located anywhere within a recycling machine pilot project area.
(m) This section shall remain in effect only until January 1, 2034, and as of that date is repealed.

SEC. 5.SEC. 3.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.