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        March 23, 2019
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 California, 
        USAModel Beverage Container
 Recycling System
 By 
        Rick BestSacramento, CA
 Phone: 916-319-2367
 
 Updated September 11, 2001
 TITLEBeverage Container Recycling and Litter Reduction Act - AB 2020 (Margolin, 
        1986)
 OVERVIEWThe California Bottle Bill program represents a significant departure 
        from traditional deposit programs. Containers are redeemed at recycling 
        centers rather than retail stores and deposits are handled through a state-managed 
        fund rather than by bottlers. The program removes bottlers from the responsibility 
        of managing the system and significantly reduces the overall costs of 
        the program by eliminating the need for retailers to sort containers by 
        brand and by allowing materials to be compacted and handled with other 
        recyclable materials. The program has garnered the support of environmentalists, 
        private recyclers, local governments, and retailers and minimized opposition 
        from the beverage industry, the traditional opponent of deposit programs.
 IMPORTANT LINKSCalifornia 
        Department of Conservation, Division of Recycling, administers the
 California Beverage Container Recycling and Litter Reduction Act. 
        [off-site]
 
 
        GOALSThe program does not have any specified goals; however, the original law 
        did contain a provision for increasing the deposit amount from 2.5 cents 
        to 5 cents for any material (aluminum, glass, plastic or bimetal) which 
        failed to reach a 65% recycling rate by June 30, 1992.
 The program has achieved 
        the following recycling rates since its inception:  
       
         
          |  | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 |   
          | Aluminum | 61 | 64 | 76 | 85 | 85 | 84 | 82 | 80 | 80 | 80 | 80 | 80 | 76 |   
          | Glass | 35 | 40 | 57 | 71 | 72 | 75 | 73 | 74 | 69 | 67 | 63 | 60 | 54 |   
          | PET Plastic | 4 | 7 | 31 | 56 | 68 | 70 | 71 | 64 | 59 | 58 | 57 | 65 | 34 |   
          | Bimetal | 0.2 | 2 | 3 | 14 | 12 | 19 | 17 | 21 | 17 | 19 | 13 | 11 | 1 |   
          | TOTAL | 52 | 56 | 70 | 80 | 82 | 81 | 79 | 81 | 76 | 76 | 74 | 74 | 61 |  RESPONSIBILITIES
 
 
         
          | Stakeholder | Responsibilities |   
          | Beverage Industry
 | Manufacturers | Manufacturers 
            have no responsibility for managing the program. They are only required 
            to pay a processing fee for container types with a net cost for recycling 
            (glass and plastic). |   
          | Distributors | Distributors 
            have no responsibility for managing the program. They are only required 
            to handle deposits (CRV) paid by the public through retailers to the 
            state. |   
          | State 
            Government | The 
            California Department of Conservation administers the overall program, 
            including handling CRV through distributors and processors, handling 
            processing fees/payments through distributors and processors, overseeing 
            compliance by recycling programs and addressing fraud, issuing grants 
            to local governments and non-profits, and conducting public education 
            and outreach. |   
          | Recycling Industry
 | Distributors | Distributors 
            handle deposits, processing fees and other funds paid by the state 
            to recyclers. |   
          | Oldline Recyclers
 | Oldline 
            recyclers are the primary handlers of deposit materials. They represent 
            the traditional scrap recycling industries. |   
          |  | Convenience Zone Recyclers
 | Convenience 
            zone recyclers are located in supermarket parking lots to provide 
            a convenient opportunity to recycle when oldline recyclers do not 
            exist. |   
          | Curbside Recyclers
 | Local 
            agencies (or their haulers) which administer curbside recycling programs 
            are eligible for funding through this program. |   
          | Retailers | Retailers 
            have no responsibility for managing the program, unless there is no 
            recycling center located within the convenience zone of their store. 
            Retailers collect CRV from consumers which is paid to distributors. |  BEVERAGE CONTAINERS TARGETED
 As originally drafted under AB 2020 (Margolin, 1986) the program included 
      most carbonate beverages, including soft drinks, beer and wine coolers. 
      The program was expanded by which added wine coolers. The program was expanded 
      by SB 486 (Sher, 1999) expanded the program to include virtually all non-carbonated 
      beverages, including juices, waters, and noncarbonated soft drinks. Essentially 
      the program now includes all carbonated and noncarbonated beverages except 
      milk, wine and liquor. The program includes all material types except aseptic 
      juice containers.
 FLOW OF FUNDSThe Department of Conservation has produced an excellent 
        graphic [pdf][off-site] 
        showing the flow of funds in the program.
 The follow is a summary 
        of the key fund components: 
         
          | Types 
            of Funds | Method 
            of handling in program |   
          | Deposits 
            - California Redemption Value (CRV) | CRV 
            is paid to the state through retailers. CRV is paid out to the public 
            through recyclers. |   
          | Processing 
            fees/payments | Processing 
            fees are paid by manufacturers to the state. Processing payments are 
            paid by the state to recyclers. Processing payments are based upon 
            the net cost of recycling for each material type. (Net cost) = (average 
            gross cost) - (average scrap value) is calculated by the state on 
            an annual basis. |   
          | Unredeemed 
            deposits | Administration | Administration 
            of the program by the DOC is limited to $20 million annually? |   
          | Handling 
            fees | Handling 
            fees payments to convenience zone recyclers are established at $18.5 
            million annually. |   
          | Supplemental 
            curbside payments | Supplemental 
            payments to curbside programs are established at $10 million annually. |   
          | Grants 
            to local conservation corps | Grants 
            to the nine local conservation corps (LCC) are established at $ million 
            annually. |   
          | Grants 
            to local governments and non-profits | Grants 
            to local governments and non-profits are established at $ million 
            annually. |   
          | Subsidies 
            to manufacturer processing fees | Offsets 
            to reduce the processing fees paid by manufactureres are established 
            at . |  
 
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