CHAPTER 3. Administration [14530 - 14549.9]
( Chapter 3 added by Stats. 1986, Ch. 1290, Sec. 2. )
This division shall be administered by the department. Notwithstanding Section 607, the department may, for organizational purposes, create a new division, bureau, or office to administer this division. If a new division, bureau, or office is created, any reference to “department” or “director” in this division shall be deemed to be a reference to that entity and the officer in charge of that entity.
(Added by Stats. 1986, Ch. 1290, Sec. 2. Effective September 29, 1986.)
There is hereby created within the department a recycling financial analysis and policy development unit, to develop, analyze, consolidate, and evaluate economic and policy proposals to carry out the objectives of this division, including, but not limited to, all of the following:
(a) Evaluate the solvency of the fund on an ongoing basis in order to make recommendations and report to the Legislature.
(b) Identify the fiscal impacts of proposed recycling programs, or changes to existing recycling programs.
(c) Assess the economic impacts of recycling proposals and programs on the state’s citizens and businesses, including the impact of adding new container types into existing law.
(d) Develop recommendations to better integrate the various recycling alternatives available from state government, local government, and private industry with the objective of reducing recycling costs to citizens and businesses and meeting the 80-percent recycling goal established by this division.
(Amended by Stats. 2005, Ch. 22, Sec. 158. Effective January 1, 2006.)
The Division of Recycling shall be administered by an assistant director who is appointed by the Governor. The appointment shall be exempt from civil service.
(Added by Stats. 1992, Ch. 999, Sec. 21. Effective January 1, 1993.)
(a) For purposes of entering into contracts for consulting, promotional, or advisory services necessary to implement this division, the requirements of Sections 11042 and 14615 of the Government Code and Sections 10295 and 10318 of the Public Contract Code do not apply to the activities of the department pursuant to this division, except that any sole source contract awarded by the department shall be reviewed and approved by the Department of General Services.
(b) In addition to any regulations which the department is required by statute to adopt, the department may adopt any other rules and regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code which the department determines may be necessary or useful to carry out this division or any of the department’s duties or responsibilities imposed pursuant to this division.
(c) The department may prepare, publish, and issue printed pamphlets, promotional materials, and bulletins which the director determines to be necessary for the dissemination of information to the public concerning the activities of the department pursuant to this division.
(Amended by Stats. 1993, Ch. 1258, Sec. 2. Effective October 11, 1993.)
Upon the request of the department, the Attorney General shall represent the department and the state in litigation concerning affairs of the department.
(Added by Stats. 1986, Ch. 1290, Sec. 2. Effective September 29, 1986.)
A payment made pursuant to this division, including, but not limited to, a handling fee payment, refund value payment, processing fee payment, or processing payment, may be made electronically.
(Added by Stats. 2018, Ch. 715, Sec. 1. (AB 2493) Effective January 1, 2019.)
(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.
(Amended by Stats. 2006, Ch. 907, Sec. 3. Effective September 30, 2006.)
Notwithstanding Section 14536, if the department determines that it is necessary to adopt or amend regulations to implement Section 14575, the department may adopt or amend those regulations as emergency regulations. The Office of Administrative Law shall consider those regulations to be necessary for the immediate preservation of the public peace, health and safety, and general welfare for purposes of Section 11349.6 of the Government Code. Notwithstanding subdivision (e) of Section 11346.1 of the Government Code, the emergency regulations adopted or amended pursuant to this section shall be repealed 180 days after the effective date of the regulations, unless the department complies with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(Added by Stats. 1995, Ch. 624, Sec. 10. Effective January 1, 1996.)
A traffic officer, as defined in Section 625 of the Vehicle Code, or a peace officer, as specified in Section 830.1 of the Penal Code, may enforce this division as an authorized representative of the department.
(Added by Stats. 2018, Ch. 51, Sec. 33. (SB 854) Effective June 27, 2018.)
(a) In carrying out the division, the department may solicit and use all expertise available in other state agencies and where an existing state agency performs functions of a similar nature to the department’s functions, the department may contract with, or cooperate with, the agency in carrying out this division.
(b) Notwithstanding subdivision (a), the Department of Food and Agriculture may, as requested by the department, collect, compile, and report information regarding the importation of filled or postfilled beverage containers. Border agricultural inspection stations and any other appropriate information gathering focal points may be used and the plant quarantine officers and supervisors of the Department of Food and Agriculture shall collect, compile, and report information requested by the department pursuant to this subdivision. Recovery of costs incurred by the Department of Food and Agriculture shall be accomplished through an interagency agreement with the department.
(Amended by Stats. 1990, Ch. 1148, Sec. 1.)
For purposes of Section 12024.13 of the Business and Professions Code, the department shall notify the Department of Food and Agriculture of any changes to this division, or regulations issued pursuant to this division, that affect refund values, redemption payments, or the responsibilities of a dealer.
(Added by Stats. 2014, Ch. 605, Sec. 2. (AB 2251) Effective January 1, 2015.)
The department shall keep accurate books, records, and accounts of all of its dealings, and these books, records, and accounts are subject to an annual audit by an auditing firm selected by the department. The auditing firm or the department shall also conduct a selective audit of entities making payments to, or receiving payments from, the department to determine whether redemption payments and applicable processing fees are being paid to the department on all beverage containers sold in California, and that refund values and processing payments are being paid out properly by the department.
(Amended by Stats. 2001, Ch. 874, Sec. 2. Effective October 14, 2001.)
The department shall, to the extent feasible, make efforts to streamline and consolidate forms used by wineries who are also distributors to both register as part of the beverage container recycling program and provide required payments under this division.
(Added by Stats. 2022, Ch. 610, Sec. 9. (SB 1013) Effective January 1, 2023.)
The department shall provide on its internet website information that enables consumers to identify the geographic location of all points of redemption for beverage containers, to be updated at least once per year.
(Added by Stats. 2022, Ch. 574, Sec. 19. (AB 211) Effective September 27, 2022.)
(a) (1) The department shall certify an operator of a recycling center pursuant to this section.
(2) The department shall review whether an application for certification or renewal is complete within 30 working days of receipt, including compliance with subdivision (c). If the department deems an application complete, the department shall approve or deny the application no later than 60 calendar days after the date when the application was deemed complete.
(b) The director shall adopt, by regulation, a procedure for the certification of recycling centers, including standards and requirements for certification. These regulations shall require that all information be submitted
to the department under penalty of perjury. A recycling center shall meet all of the standards and requirements contained in the regulations for certification. The regulations shall require, but shall not be limited to requiring, that all of the following conditions be met for certification:
(1) The operator of the recycling center demonstrates, to the satisfaction of the department, that the operator will operate in accordance with this division.
(2) If one or more certified entities have operated at the same location within the past five years, the operations at the location of the recycling center exhibit, to the satisfaction of the department, a pattern of operation in compliance with the requirements of this division and regulations adopted pursuant to this division.
(3) The operator of the recycling center
notifies the department promptly of any material change in the nature of the operator’s operations that conflicts with information submitted in the operator’s application for certification.
(c) (1) An applicant for certification as a recycling center, and a recycling center applying for renewal of a certification, shall complete the precertification training program required by this subdivision and meet all other qualification requirements prescribed by the department, which may include, but are not limited to, requiring the applicant to obtain a passing score on an examination administered by the department.
(2) The department may use staff or industry experts, or may seek expertise available in other state agencies, to provide the training program required by this subdivision, which shall include providing technical assistance to better prepare recycling
centers for successful participation in this division, thereby reducing the potential for errors, fraud, or other activities that compromise the integrity of the implementation of this division.
(d) A certified recycling center shall comply with all of the following requirements for operation:
(1) The operator of the recycling center shall not pay a refund value for, or receive a refund value from any processor for, any food or drink packaging material or any beverage container or other product that does not have a refund value established pursuant to Section 14560.
(2) The operator of a recycling center shall take actions that satisfy the department to prevent the payment of a refund value for any food or drink packaging material or any beverage container or other product that does not have a refund value
established pursuant to Section 14560.
(3) (A) Unless exempted pursuant to subdivision (b) of Section 14572, a certified recycling center shall accept, and pay at least the refund value for, all empty beverage containers, regardless of type.
(B) A bag drop recycling center shall pay the refund value for beverage containers within a reasonable period of time, not to exceed three business days. The refund value may be paid electronically in accordance with Section 14531.
(4) A certified recycling center shall not pay any refund values, processing payments, or administrative fees to a noncertified recycler.
(5) A certified recycling center shall not pay any refund values, processing payments, or administrative fees on empty beverage
containers or other containers that the certified recycling center knew, or should have known, were coming into the state from out of the state, or are otherwise ineligible for redemption.
(6) (A) A certified recycling center shall not claim refund values, processing payments, or administrative fees on empty beverage containers that the certified recycling center knew, or should have known, were received from noncertified recyclers.
(B) A certified recycling center shall not claim refund values, processing payments, or administrative fees on empty beverage containers that the certified recycling center knew, or should have known, come from out of the state, or are otherwise ineligible for redemption.
(7) A certified recycling center shall prepare and maintain the following documents involving empty beverage containers, as specified by the department by regulation:
(A) Shipping reports that are required to be prepared by the recycling center, or that are required to be obtained from other recycling centers.
(B) Consumer transaction receipts.
(C) Consumer transaction logs.
(D) Rejected container receipts on materials subject to this division.
(E) Receipts for transactions with beverage manufacturers on materials subject to this division.
(F) Receipts for transactions with beverage distributors on materials subject to this division.
(G) Documents authorizing the recycling center to cancel empty beverage containers.
(H) Weight tickets.
(8) In addition to the requirements of paragraph (7), a certified recycling center shall cooperate with the department and make available its records of scrap transactions when the review of these records is necessary for an audit or investigation by the department.
(e) The department may recover, in restitution pursuant to paragraph (5) of subdivision (c) of Section 14591.2, payments made from the fund to the certified recycling center pursuant to Section 14573.5 that are based on the documents specified in paragraph (7) of subdivision (d), that are not prepared or maintained in compliance with the department’s regulations, and that do not allow the department to verify claims for program payments.
(f) The department may certify a recycling center that will operate less than 30 hours a week, as specified in paragraph (1) of subdivision (c) of Section 14571.
(Amended by Stats. 2022, Ch. 574, Sec. 20. (AB 211) Effective September 27, 2022.)
(a) (1) The department shall certify processors pursuant to this section.
(2) The department shall review whether an application for certification or renewal is complete within 30 working days of receipt, including compliance with subdivision (c). If the department deems an application complete, the department shall approve or deny the application no later than 60 calendar days after the date when the application was deemed complete.
(b) The director shall adopt, by regulation, requirements and standards for certification. The regulations shall require, but shall not be limited to requiring, that all of
the following conditions be met for certification:
(1) The processor demonstrates to the satisfaction of the department that the processor will operate in accordance with this division.
(2) If one or more certified entities have operated at the same location within the past five years, the operations at the location of the processor exhibit, to the satisfaction of the department, a pattern of operation in compliance with the requirements of this division and regulations adopted pursuant to this division.
(3) The processor notifies the department promptly of any material change in the nature of the processor’s operations that conflicts with the information submitted in the operator’s application for
certification.
(c) (1) An applicant for certification as a processor and a processor applying for renewal of a certification shall complete the precertification training program required by this subdivision and meet all other qualification requirements prescribed by the department, which may include, but are not limited to, requiring the applicant to obtain a passing score on an examination administered by the department.
(2) The department may use staff or industry experts, or may seek expertise available in other state agencies, to provide the training program required by this subdivision, which shall include providing technical assistance to better prepare processors for successful participation in this division, thereby reducing the potential for
errors, fraud, or other activities that compromise the integrity of the implementation of this division.
(d) A certified processor shall comply with all of the following requirements for operation:
(1) The processor shall not pay a refund value for, or receive a refund value from the department for, any food or drink packaging material or any beverage container or other product that does not have a refund value established pursuant to Section 14560.
(2) The processor shall take those actions that satisfy the department to prevent the payment of a refund value for any food or drink packaging material or any beverage container or other product that does not have a refund value established pursuant to Section 14560.
(3) Unless exempted pursuant to subdivision (b) of Section 14572, the processor shall accept, and pay at least the refund value for, all empty beverage containers, regardless of type, for which the processor is certified.
(4) A processor shall not pay any refund values, processing payments, or administrative fees to a noncertified recycler. A processor may pay refund values, processing payments, or administrative fees to any entity that is identified by the department on its list of certified recycling centers.
(5) A processor shall not pay any refund values, processing payments, or administrative fees on empty beverage containers or other containers that the processor knew, or should have known, were coming into the
state from out of the state, or are otherwise ineligible for redemption.
(6) A processor shall not claim refund values, processing payments, or administrative fees on empty beverage containers that the processor knew, or should have known, were received from noncertified recyclers or on beverage containers that the processor knew, or should have known, come from out of the state, or are otherwise ineligible for redemption. A processor may claim refund values, processing payments, or administrative fees on any empty beverage container that does not come from out of the state and that is received from any entity that is identified by the department on its list of certified recycling centers.
(7) (A) A processor shall take the actions necessary and approved
by the department to cancel containers to render them unfit for redemption.
(B) A processor may be authorized by the department to satisfy the cancellation requirements of this section by washing a reusable beverage container or transferring a reusable beverage container for subsequent washing to a processor approved by the
department.
(8) A processor shall prepare or maintain the following documents involving empty beverage containers, as specified by the department by regulation:
(A) Shipping reports that are required to be prepared by the processor or that are required to be obtained from recycling centers.
(B) Processor invoice reports.
(C) Cancellation verification documents.
(D) Documents authorizing recycling centers to cancel empty beverage containers.
(E) Processor-to-processor transaction receipts.
(F) Rejected container receipts on materials subject to this division.
(G) Receipts for transactions with beverage manufacturers on materials subject to this division.
(H) Receipts for transactions with distributors on materials subject to this division.
(I) Weight tickets.
(9) In addition to the requirements of paragraph (7), a processor shall cooperate with the department and make available its records of scrap transactions when the review of these records is necessary for an audit or investigation by the department.
(e) The
department may recover, in restitution pursuant to paragraph (5) of subdivision (c) of Section 14591.2, any payments made by the department to the processor pursuant to Section 14573 that are based on the documents specified in paragraph (8) of subdivision (d), that are not prepared or maintained in compliance with the department’s regulations, and that do not allow the department to verify claims for program payments.
(f) The department may certify additional models of processors that are determined necessary to implement subparagraph (B) of paragraph (7) of subdivision (d), who may be subject to requirements and standards that differ from those set forth in this section. The director shall adopt by regulation the requirements and standards for the certification and operation of those processors no later than January 1, 2024. The regulations shall include, at a minimum, the approval requirements, approval processes, standards of operations, and oversight of those models of processors, as appropriate.
(Amended by Stats. 2021, Ch. 502, Sec. 2. (AB 962) Effective January 1, 2022.)
(a) The department shall certify dropoff and collection programs pursuant to this section. The director shall adopt, by regulation, requirements and standards for certification and a dropoff or collection program shall meet all the standards and requirements contained in the regulations for certification. The regulations shall require that all information be submitted to the department under penalty of perjury. The regulations shall require, in addition to any other conditions that may be imposed by the department, that both of the following conditions be met for certification:
(1) The dropoff or collection program demonstrates, to the satisfaction of the department, that the dropoff or collection program will operate in accordance with this division.
(2) The dropoff or collection program notifies the department promptly of any material change in the nature of its operations that conflicts with the information submitted in the application for certification.
(b) A certified dropoff or collection program shall not receive any refund value or processing payment on an empty beverage container that the certified dropoff or collection program knew, or should have known, was received from a noncertified recycler, on any beverage container that the certified dropoff or collection program knew or should have known came from out of this state, or any other beverage container or other product that does not have a refund value established pursuant to Section 14560.
(c) The department may recover, in restitution pursuant to paragraph (5) of subdivision (c) of Section 14591.2, any payment made from the fund to a dropoff or collection program pursuant to Section 14573.5 that is based on a document that is not prepared or maintained in compliance with any applicable recordkeeping requirements required pursuant to this division or the department’s regulations and that does not allow the department to verify the claims for those payments.
(Added by Stats. 2000, Ch. 731, Sec. 5. Effective January 1, 2001.)
The department may review and verify all applications for certification of recycling centers and processors, and may conduct a comprehensive field investigation of any applicant in any manner which the department deems necessary to promote the purposes of this division. This division does not prohibit the department from certifying the same location or entity as both a processor and a recycling center.
(Added by Stats. 1986, Ch. 1290, Sec. 2. Effective September 29, 1986.)
(a) The department may issue a certificate pursuant to an initial or renewal application for certification as probationary, and the department may issue any other certificate as probationary pursuant to an enforcement action.
(b) A probationary certificate issued pursuant to this section shall be issued for a limited period of not more than two years. Before the end of the probationary period, the department shall issue a nonprobationary certificate, extend the probationary period for not more than one year, or, after notice to the probationary certificate holder, revoke the probationary certificate. Subsequent to the revocation, the former probationary certificate holder may request a hearing, which, notwithstanding, Section 11445.20 of the Government Code, shall be conducted in the same form as a hearing for an applicant whose original application for certification is denied.
(c) If a hearing is requested pursuant to subdivision (b) and the party requesting the hearing fails to appear on the date scheduled, and does not notify the department at least five days prior to the hearing date that the party will not appear, the department may recover from the party all costs and fees incurred by the department, including attorneys’ and experts’ fees, and any other cost associated with preparing for, or conducting, the hearing.
(d) If conditions are imposed on the certificate holder as part of a disciplinary proceeding conducted pursuant to Section 14591.2, the certificate shall be considered probationary. If, at any time, the certificate holder violates any term or condition of the probationary certificate, the certificate may be revoked or suspended, after three days’ notice, without any further hearing by the department.
(Amended by Stats. 2001, Ch. 874, Sec. 5. Effective October 14, 2001.)
Any certification or registration granted by the department is a privilege and not a vested right or interest.
(Added by Stats. 2000, Ch. 731, Sec. 7. Effective January 1, 2001.)
(a) In order to stimulate the increased use of glass cullet in making new glass beverage containers in the state, the department shall create the Recycled Glass Processing Incentive Grant Program. The grant program shall provide grants to applicants who demonstrate the ability to expand glass cullet processing in the state, subject to both of the following:
(1) The applicant commits to using the grant to expand glass cullet processing facilities for increased processing of glass cullet.
(2) The applicant matches the amount of any grant received from the grant program in an amount equal to or greater than the grant amount.
(b) Within 12 months of receiving a grant from the grant program, the entity receiving the grant shall demonstrate to the department the amount of additional tons of glass cullet processed as a result of utilization of the grant funds.
(Added by Stats. 2022, Ch. 610, Sec. 10. (SB 1013) Effective January 1, 2023.)
(a) In order to facilitate increased recycling of empty glass beverage containers in the state, the department shall create the Increased Recycling of Empty Glass Beverage Containers Grant Program. The purpose of the grant program shall be to assist in funding regional pilot programs furnishing bins for collection of empty glass beverage containers from restaurants and on-sale retail licensed establishments licensed pursuant to the Alcoholic Beverage Control Act (Division 9 (commencing with Section 23000) of the Business and Professions Code). Grants provided under this program may be used for any of the following:
(1) Purchase of bins for the collection of empty glass beverage containers at restaurants and other on-sale retail licensed
establishments licensed pursuant to the Alcoholic Beverage Control Act (Division 9 (commencing with Section 23000) of the Business and Professions Code).
(2) Collection and consolidation of contents from the bins.
(3) Transportation of the empty glass beverage containers that are collected to a glass processing facility.
(b) The following entities may be eligible for applying for grants from the grant program created pursuant to subdivision (a):
(1) Local or regional governmental agencies.
(2) Other entities proposing to establish a regional pilot program to provide empty glass beverage container bins, collection of the contents of those bins, and transportation of the empty glass beverage
containers collected to a glass processing facility.
(c) Entities receiving grants from the grant program shall expend an amount equal to or greater than the amount of the grant received to create and operate the pilot program.
(Added by Stats. 2022, Ch. 610, Sec. 11. (SB 1013) Effective January 1, 2023.)
(a) In order to facilitate transportation of empty glass beverage containers from throughout the state to glass processing facilities utilizing rail transportation and facilities, the department shall create the Empty Glass Beverage Transportation Grant Program. Funds provided in grants from this program shall be used to facilitate the use of rail transportation of empty glass beverage containers to glass processing facilities within the state.
(b) Entities applying for grants from the grant program shall demonstrate in their application how rail transportation of empty glass beverage containers collected in the state will be facilitated through the use of the grant funds.
(c) Entities receiving grants from the grant program shall match grant funding received in an amount equal to or greater than the amount of the grant received, which shall also be used to facilitate transportation of empty glass beverage containers by rail within the state.
(Added by Stats. 2022, Ch. 610, Sec. 12. (SB 1013) Effective January 1, 2023.)
(a) (1) Between January 1, 2022, and December 31, 2024, inclusive, the total number of plastic beverage containers filled with a beverage sold by a beverage manufacturer subject to the California Redemption Value, pursuant to Chapter 5 (commencing with Section 14560), for sale in the state shall, on average, contain no less than 15 percent postconsumer recycled plastic per year.
(2) Between January 1, 2025, and December 31, 2029, inclusive, the total number of plastic beverage containers filled with a beverage sold by a beverage manufacturer subject to the California Redemption Value, pursuant to Chapter 5 (commencing with Section 14560), for sale in the state shall, on average, contain no less than 25 percent postconsumer recycled plastic per
year.
(3) On and after January 1, 2030, the total number of plastic beverage containers filled with a beverage sold by a beverage manufacturer subject to the California Redemption Value, pursuant to Chapter 5 (commencing with Section 14560), for sale in the state shall, on average, contain no less than 50 percent postconsumer recycled plastic per year.
(4) A beverage container that is a box, bladder, or pouch, or similar container, that contains wine or distilled spirits, shall have an additional two years to comply with each of the deadlines in paragraphs (1), (2), and (3).
(5) A beverage container that contains 46 ounces or more of 100 percent fruit juice or more than 16 ounces of vegetable juice shall not be considered a beverage container for purposes of this subdivision until January 1, 2026.
(6) (A) Beginning January 1, 2025, the director may, on an annual basis, review and determine to adjust the minimum postconsumer recycled content percentage required pursuant to paragraphs (2) and (3). The director’s review may be initiated by the director or at the petition of the beverage manufacturing industry not more than annually. The department shall adopt regulations to establish the petition process and requirements. The director shall not adjust the minimum postconsumer recycled content requirements above the minimum postconsumer recycled plastic content percentages required pursuant to paragraphs (2) and (3). In making a determination pursuant to this paragraph, the director shall consider, at a minimum, all of the following factors:
(i) Changes in market conditions, including supply and demand for postconsumer recycled plastics, collection rates, and
bale availability both domestically and globally.
(ii) Recycling rates.
(iii) The availability of recycled plastic suitable to meet the minimum recycled content requirements pursuant to paragraphs (2) and (3), including the availability of high-quality recycled plastic, and food-grade recycled plastic from the state’s and other beverage container recycling programs.
(iv) The capacity of recycling or processing infrastructure.
(v) The progress made by beverage manufacturers in achieving the goals of this subdivision.
(B) Notwithstanding subparagraph (A), the director shall not review or adjust a minimum postconsumer recycled content standard while the department is reducing payments
pursuant to subdivision (c) of Section 14581.
(C) The department may enter into a contract for the services required to implement this section and related regulations developed by the department.
(D) For purposes of this paragraph, “beverage manufacturing industry” means an association that represents companies that manufacture beverages.
(b) (1) Beginning January 1, 2023, a beverage manufacturer that does not meet the minimum recycled plastic content requirements pursuant to subdivision (a) shall be subject to an annual administrative penalty pursuant to this subdivision. Beginning March 1, 2024, the administrative penalty shall be collected annually, if a reduction has not been approved pursuant to subdivision (e), and calculated in accordance with subdivision (c).
(2) A beverage manufacturer that is assessed penalties pursuant to this subdivision may pay those penalties to the department in quarterly installments or arrange an alternative payment schedule subject to the approval of the department, not to exceed a 12-month payment plan unless an extension is needed due to unforeseen circumstances, such as a public health emergency, state of emergency, or natural disaster.
(c) Beginning March 1, 2024, and annually thereafter, the department shall invoice any assessed administrative penalties for the previous calendar year based on the postconsumer recycled plastic content requirement of the previous calendar year. The department shall calculate the amount of the penalty based upon the amount in pounds in the aggregate of virgin and postconsumer recycled plastic material used by the beverage manufacturer to produce beverage containers sold or
offered for sale in the state, in accordance with the following:
(1) The annual administrative penalty amount assessed to a beverage manufacturer shall equal the product of both of the following:
(A) The total pounds of plastic used multiplied by the relevant minimum postconsumer recycled plastic percentage, less the pounds of postconsumer recycled plastic used.
(B) Twenty cents ($0.20).
(2) For purposes of paragraph (1), both of the following shall apply:
(A) The total pounds of plastic used shall equal the sum of the amount of virgin plastic and postconsumer recycled plastic used by the beverage manufacturer, as reported pursuant to subdivision (a) of Section 14549.3.
(B) If the product calculated pursuant to paragraph (1) is equal to or less than zero, an administrative penalty shall not be assessed.
(d) (1) The department may conduct audits and investigations and take an enforcement action against a beverage manufacturer for the purpose of ensuring compliance with this section and the information reported pursuant to Section 14549.3. The department may take an enforcement action against a beverage manufacturer that fails to pay or underpays the assessed or audited administrative penalty only after notice and hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.
(2) The department shall keep confidential all business trade secrets and proprietary information about manufacturing processes
and equipment that the department gathers or becomes aware of through the course of conducting audits or investigations pursuant to paragraph (1). Business trade secrets and proprietary information obtained pursuant to this subdivision shall not be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
(3) A beverage manufacturer may obtain a copy of the department’s audit of that beverage manufacturer conducted pursuant to paragraph (1).
(e) (1) The department shall consider granting a reduction of the administrative penalties assessed pursuant to subdivision (b) for the purpose of meeting the minimum recycled content requirements required pursuant to paragraphs (1) to (3), inclusive, of subdivision (a).
(2) In
determining whether to grant the reduction pursuant to paragraph (1), the department shall consider, at a minimum, all of the following factors:
(A) Anomalous market conditions.
(B) Disruption in, or lack of supply of, recycled plastics.
(C) Other factors that have prevented a beverage manufacturer from meeting the requirements.
(3) In order to receive a reduction of the administrative penalty, a beverage manufacturer shall submit to the department a corrective action plan detailing the reasons why the beverage manufacturer will fail to meet or has failed to meet the minimum postconsumer recycled content standard and the steps the beverage manufacturer will take to comply with the minimum postconsumer recycled content standard within the next reporting
year. The department may approve the corrective action plan, and may reduce the administrative penalties once it approves the corrective action plan and the beverage manufacturer implements the plan. Administrative penalties shall accrue from the point of noncompliance with the minimum postconsumer recycled content standard if the department disapproves the corrective action plan or if the beverage manufacturer fails to implement the plan.
(f) The Recycling Enhancement Penalty Account is hereby created in the State Treasury. Notwithstanding subdivision (d) of Section 14580 and paragraph (3) of subdivision (a) of Section 14591.1, administrative penalties collected pursuant to this section shall be deposited into the Recycling Enhancement Penalty Account. Moneys in the Recycling Enhancement Penalty Account shall be expended upon appropriation by the Legislature in the annual Budget Act for the sole purpose of supporting the recycling,
infrastructure, collection, and processing of plastic beverage containers in the state.
(g) (1) If the Legislature makes an appropriation in the annual Budget Act before June 15, 2027, for this purpose, the department may contract with a research university to study the polyethylene terephthalate and high-density polyethylene markets for all of the following:
(A) Analyzing market conditions and opportunities in the state’s recycling industry for meeting the minimum recycled plastic content requirements for plastic beverage containers required pursuant to subdivision (a).
(B) Determining the data needs and tracking opportunities to increase the transparency and support of a more effective, fact-based public understanding of the recycling industry.
(C) Recommending further policy modifications and measures to achieve the state’s recycling targets with the least cost and optimal efficiency.
(2) If the Legislature makes the appropriation specified in paragraph (1) and the department undertakes the study, the study shall be completed no later than May 1, 2028.
(3) The department may allocate moneys from the fund, upon appropriation by the Legislature as specified in paragraph (1), for the study by June 30, 2027, if all of the following apply:
(A) The department finds that there are sufficient moneys in the fund.
(B) The fund is not operating at a deficit.
(C) The director is not
exercising authority to implement proportional reductions subject to the requirements of subdivision (c) of Section 14581.
(h) A city, county, or other local government jurisdiction shall not adopt an ordinance regulating the minimum recycled plastic content requirements for plastic beverage containers.
(i) This section does not apply to either of the following:
(1) A refillable plastic beverage container.
(2) A beverage manufacturer that sells or transfers 16,000,000 or fewer plastic beverage containers to a distributor, dealer, or consumer located in the State of California during the calendar year for which the beverage manufacturer is reporting pursuant to Section 14549.3.
(j) The
Legislature encourages beverage manufacturers to use plastic beverage containers that contain 100 percent recycled plastic content.
(Amended by Stats. 2023, Ch. 868, Sec. 4. (SB 353) Effective October 13, 2023.)
(a) For purposes of this section, “thermoform plastic container” means a plastic container, such as a clamshell, cup, drinking cup, pod, tub, lid, box, tray, egg carton, or similar rigid, nonbottle packaging, formed from sheets of extruded resin and used to package items such as fresh produce, baked goods, nuts, deli items, and nonbottle beverages. The term does not include any of the following:
(1) A lid or seal of a different material type from plastic.
(2) Thermoform plastic containers that are medical devices, medical products that are required to be sterile, prescription medicine, and packaging used for those products.
(3) A refillable thermoform plastic container that ordinarily would be returned to the manufacturer to be refilled and resold.
(4) A plastic beverage container subject to the California Beverage Container Recycling and Litter Reduction Act (Division 12.1 (commencing with Section 14500)).
(5) A thermoform plastic container of a resin type for which the total amount of the resin type sold in California annually is either of the following:
(A) Less than 1,000,000 pounds for a resin type other than expanded polystyrene.
(B) Less than 40,000 pounds of expanded polystyrene.
(6) A thermoform plastic container that is designed to be composted and is eligible to be labeled
“compostable” pursuant to Section 42357.
(b) In order to improve the quality and marketability of empty beverage containers collected for recycling in the state by curbside recycling programs, the department may, subject to the availability of funds, pay a quality incentive payment for thermoform plastic containers diverted from curbside recycling programs.
(c) The department may make a quality incentive payment pursuant to this section to any recycling center certified pursuant to this division.
(d) The department may make a quality incentive payment only for materials that are substantially free of contamination, recycled, and not disposed of after collection.
(e) The amount of the quality plastic incentive payment shall be up to one hundred eighty
dollars ($180) per ton, as determined by the department.
(f) An operator of a certified recycling center 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 center’s compliance with any applicable regulation.
(g) The department may make only one quality incentive payment for each thermoform plastic container collected pursuant to this section.
(h) This section shall become operative on January 1, 2023.
(Added by Stats. 2022, Ch. 574, Sec. 21. (AB 211) Effective September 27, 2022. Operative January 1, 2023, by its own provisions.)
(a) Every glass container manufacturer shall report to the department each month, by a method as determined by the department, the amount of total tons of new glass food, drink, and beverage containers made in California by that glass container manufacturer and the tons of California postfilled glass used in the manufacturing of those new containers.
(b) Each glass container manufacturer in the state shall use a minimum percentage of 35 percent of postfilled glass in the manufacturing of their glass food, drink, or beverage containers measured in the aggregate, on an annual basis, except that if a glass container manufacturer demonstrates to the satisfaction of the department that its use of postfilled glass during the annual period is made up of at least 50 percent mixed-color cullet, then that manufacturer shall use a minimum percentage of 25 percent postfilled glass in the manufacturing of its glass food, drink, or beverage containers, measured in the aggregate, on an annual basis.
(c) A glass container manufacturer may seek a reduction or waiver of the minimum postfilled glass percentage required to be used in the manufacture of glass food, drink, or beverage containers pursuant to subdivision (b). The department may grant a reduction or waiver of the percentage requirement if it finds and determines that it is technologically infeasible for the glass container manufacturer to achieve the percentage requirement or if the department determines that a glass container manufacturer cannot achieve the minimum percentage because of a lack of available glass cullet.
(d) For the purposes of this section, “mixed-color cullet” means cullet that does not meet the American Society for Testing and Materials (ASTM) standard specifications for color mix of color sorted postfilled glass as raw material for the manufacture of glass containers.
(Amended by Stats. 2003, Ch. 753, Sec. 3. Effective January 1, 2004.)
(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 and are used for the manufacturing of glass beverage containers in this state.
(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.
(Amended by Stats. 2022, Ch. 610, Sec. 14. (SB 1013) Effective January 1, 2023.)
(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) “Plastic product” means a finished plastic product that requires no further thermoforming, shaping, or processing before being sold for its specified use. “Plastic product” does not include plastic flake, pellet, sheet, or any other form that is an output from a reclaimer’s processing of empty plastic beverage containers.
(3) “Product manufacturer” means a person who manufactures a plastic product in this state.
(4) “Reclaimer” means a certified entity that purchases empty plastic beverage containers that have been collected for recycling in the state, and that washes and processes, in the state, those empty plastic beverage containers into flake, pellet, sheet, or any other form that is then usable as input for the manufacture of new plastic products by product manufacturers in the 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 reclaimer for empty plastic beverage containers collected and managed pursuant to this section and to a product manufacturer for plastic flake, pellet, sheet, or any other form of plastic purchased from a reclaimer pursuant to this section.
(c) The department shall make a market development payment to a reclaimer or product manufacturer in accordance with this section only if the plastic beverage container is collected, washed, and processed into flake, pellet, sheet, or any other form, and is used in manufacturing, in the state, as follows:
(1) The department shall make a market development payment to a reclaimer for empty plastic beverage containers that are collected, washed, and processed as specified in paragraph (4) of subdivision (a), including to a reclaimer that uses the services of a third party to process the empty plastic beverage containers into a form usable for the manufacture of new plastic products.
(2) The department shall make a market development payment to a product manufacturer for plastic flake, pellet, sheet, or any other form of
plastic purchased from a reclaimer and used by that product manufacturer to manufacture a plastic product in the state, including to a product manufacturer that uses the services of a third party to process the plastic purchased from a reclaimer in manufacturing the plastic product.
(3) The department shall determine the amount of the market development payment, which may be set at a different level for a reclaimer 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 reclaimers and product manufacturers, the department shall consider all of the following:
(A) The minimum funding level needed to encourage in-state washing and processing of empty plastic beverage containers collected for recycling in this state.
(B) The minimum funding level needed to encourage in-state manufacturing that utilizes flake, pellet, sheet, or any other form processed from 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 reclaimer and a product manufacturer for both the empty plastic beverage container and for the flake, pellet, sheet, or any other form processed by the reclaimer from that same empty plastic beverage container.
(d) This section shall become inoperative on July 1,
2025, and, as of January 1, 2026, is repealed.
(Amended by Stats. 2022, Ch. 610, Sec. 15. (SB 1013) Effective January 1, 2023. Inoperative July 1, 2025. Repealed as of January 1, 2026, by its own provisions.)
(a) On or before March 1 of each year, a manufacturer of a beverage sold in a plastic beverage container subject to the California Redemption Value, pursuant to Chapter 5 (commencing with Section 14560), shall report to the department the amount in pounds and by resin type of virgin plastic and postconsumer recycled plastic used by the manufacturer for plastic beverage containers subject to the California Redemption Value for sale in the state in the previous calendar year. The manufacturer shall submit this information to the department under penalty of perjury pursuant to standardized forms in the form and manner prescribed by the department.
(b) On or before March 1,
2024, and annually thereafter, a plastic material reclaimer shall report to the department the
amount in pounds and by resin type
of empty plastic beverage containers subject to the California Redemption Value, pursuant to Chapter 5 (commencing with Section 14560), that the plastic material reclaimer has collected and sold in the previous calendar year. The report shall specify the amount in pounds and by resin type of empty plastic containers sold in the state for beverage processing. The plastic material reclaimer shall submit this information to the department under penalty of perjury pursuant to standardized forms in the form and manner prescribed by the department.
(c) On or before March 1, 2024, and annually thereafter, a manufacturer of postconsumer recycled plastic shall report to the department the amount in pounds of food-grade flake, pellet,
sheet, fines, or other forms that were sold in the previous calendar year and their capacity to produce food-grade material. The report shall specify the amount in pounds of material that meets beverage manufacturer specifications for bottle-grade material. The report shall include the amount in pounds of food-grade material sold in the state for beverage processing. The manufacturer shall submit this information to the department under penalty of perjury pursuant to standardized forms in the form and manner prescribed by the department.
(d) The department shall post the information reported pursuant to subdivision (a) within 45 days on the department’s internet website.
(e) This section does not apply to a refillable plastic beverage container.
(Amended by Stats. 2020, Ch. 115, Sec. 3. (AB 793) Effective January 1, 2021.)
The department shall study and develop a system or process to address the issue of glass contamination to improve the quality of glass material collected.
(Added by Stats. 2022, Ch. 977, Sec. 1. (SB 38) Effective January 1, 2023.)
On or before April 1, 2004, and annually thereafter, or more frequently as determined to be necessary by the department, the department shall review and, if necessary in order to ensure payment of the most accurate commingled rate feasible, recalculate commingled rates paid for beverage containers and postfilled containers paid to curbside recycling programs and collection programs. Prior to recalculating a commingled rate pursuant to this section, the department shall do all of the following:
(a) Consult with private and public operators of curbside recycling programs and collection programs concerning the size of the statewide sample, appropriate sampling methodologies, and alternatives to exclusive
reliance on a statewide commingled rate.
(b) At least 60 days prior to the effective date of any new commingled rate, hold a public hearing, after giving notice, to make available to the public and affected parties the department’s review and any proposed recalculations of the commingled rate.
(c) At least 60 days prior to the effective date of any new commingled rate, and upon the request of any party, make available documentation or studies which were prepared as part of the department’s review of a commingled rate.
(d) (1) Notwithstanding this division, the department may calculate a curbside recycling program commingled rate pursuant to this subdivision for bimetal containers and a combined commingled rate for all plastic beverage containers displaying the resin identification code “3,” “4,”
“5,” “6,” or “7” pursuant to Section 18015.
(2) The department may enter into a contract for the services required to implement the amendments to this section made by Chapter 753 of the Statutes of 2003. The department may not expend more than two hundred fifty thousand dollars ($250,000) for each year of the contract. The contract shall be paid only from revenues derived from redemption payments and processing fees paid on plastic beverage containers displaying the resin identification code “3,” “4,” “5,” “6,” or “7” pursuant to Section 18015. If the department determines that insufficient funds will be available from these revenues, after refund values are paid to processors and the reduction is made in the processing fee pursuant to subdivision (e) of Section 14575 for these containers, the department may determine not to calculate a commingled rate pursuant to this subdivision.
(Amended by Stats. 2013, Ch. 356, Sec. 18. (SB 96) Effective September 26, 2013.)
(a) The department, consistent with Section 14581 and subject to the availability of funds, shall annually pay a total of fifteen million dollars ($15,000,000) per fiscal year to operators of curbside programs and neighborhood dropoff programs that accept all types of empty beverage containers for recycling. The payments shall be for each container collected by the curbside or neighborhood dropoff programs and properly reported to the department by processors, based upon all of the following:
(1) The payment amount shall be calculated based upon the volume of beverage containers collected by curbside and neighborhood dropoff programs during the 12-month calendar year ending on December 31 of the fiscal year for which payments are to be made.
(2) The per-container rate shall be calculated by dividing the total volume of beverage containers collected, as determined pursuant to paragraph (1), into the sum of fifteen million dollars ($15,000,000).
(3) The amount to be paid to each operator of a curbside program or neighborhood dropoff program shall be based upon the per-container rate, calculated pursuant to paragraph (2), multiplied by the program’s total reported beverage container volume calculated pursuant to paragraph (1).
(b) The amounts paid pursuant to this section shall be expended by operators of curbside and neighborhood dropoff programs only for activities related to beverage container recycling.
(c) The department shall disburse payments pursuant to this section not later than the end of the fiscal year following the calendar year for which the payments are calculated pursuant to paragraph (1) of subdivision (a), subject to the availability of funds.
(d) The operator of a curbside program or neighborhood dropoff program shall make available for inspection and review any relevant record that the department determines is necessary to verify compliance with this section.
(Amended by Stats. 2008, Ch. 696, Sec. 7. Effective September 30, 2008.)
(a) In order to develop California markets for glass beverage containers collected for recycling in the state, the department may, subject to the availability of funds, pay a market development payment pursuant to this section to a glass beverage container manufacturer who purchases recycled glass collected within this state for use in manufacturing new beverage containers in this state.
(b) The department shall make a market development payment to a glass beverage container manufacturer in accordance with this section only if the empty glass beverage containers are collected, washed, and processed and are used in manufacturing new glass beverage containers in the state.
(c) The department shall determine the amount of the market development payment, but the payment shall not exceed fifty dollars ($50) per ton. In setting the amount of the market development payment, the department shall consider all of the following:
(1) The minimum funding level needed to encourage in-state washing and processing of empty glass beverage containers collected for recycling in this state.
(2) The minimum funding level needed to encourage in-state manufacturing that utilizes empty glass beverage containers collected for recycling in this state.
(3) The total amount of funds projected to be available for glass market development payments, and the desire to maintain the minimum funding level needed throughout the year.
(d) This
section shall remain in effect only until January 1, 2028, and as of that date is repealed.
(Added by Stats. 2022, Ch. 610, Sec. 16. (SB 1013) Effective January 1, 2023. Repealed as of January 1, 2028, by its own provisions.)
(a) A beverage manufacturer may agree with one or more beverage manufacturers to submit a consolidated report, in lieu of individual reports, with aggregated information required by Section 14547 and subdivision (a) of Section 14549.3 that covers one or more beverage manufacturers if those beverage manufacturers share rights to the same brands or the products of which are distributed, marketed, or manufactured by a single reporting beverage manufacturer.
A consolidated report shall be submitted to the department under penalty of perjury pursuant to standardized forms in the form and manner prescribed by the department. Beverage manufacturers included in the consolidated report shall be jointly and severally responsible for compliance with Section 14547 and subdivision (a) of Section 14549.3 and for penalties imposed in connection with the report, including, but not limited to, the annual administrative penalty specified in subdivision (b) of Section 14547.
(b) The department may adopt regulations as necessary to implement subdivision (a). Until January 1, 2025, the adoption and readoption of
regulations to implement subdivision (a) shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the department is hereby exempted from the requirement that it describe facts showing the need for immediate action and from review of the emergency regulations by the Office of Administrative Law.
(Added by Stats. 2024, Ch. 983, Sec. 1. (SB 551) Effective September 29, 2024.)