SB 38 (Wieckowski)

OVERVIEW

This bill would exempt beverage manufacturers that sell fewer than 2 million beverage containers in a calendar year from the Bottle Bill recycled content requirements minimum. The bill also requires CalRecycle to take specified actions to reduce contamination in recycled glass and prohibits cash payments from processors to certified recycling centers, curbside programs, and drop-off or collection programs.

THE ISSUE

Maximizing the use of recycled content in beverage containers supports recycling markets within the state, helping to reduce California’s reliance on exporting recyclable material. Minimum content standards, can reduce energy consumption and air pollution, including a reduction in GHG emissions. When the state adopted minimum content requirements, there was a de minimis provision included in the law that allowed beverage manufacturers to be exempt from it if they pay $15,000 or less in processing fees annually. With high scrap prices in 2022 there will likely be a zeroing out of processing payments as of January 1, 2023. At that point, most beverage manufacturers using plastic containers would have their total processing fees reduced to below $15,000 per year - exempting them from all of the requirements of our minimum content standard statute. If the de minimus provision is not corrected, demand for minimum content will likely fall as well as per ton scrap value. The PET processing payments would eventually revert to higher values and cost the fund tens of millions of dollars per year. Unlike other programs, the California Bottle Bill programs deals with issues of fraud not seen anywhere else, specifically with the use of cash payments between processors and recyclers. Which is unheard of in other programs. The law currently does not mention the way payments should be made. Modernizing the program provides CalRecycle better oversight and enforcement capabilities.

Contamination of materials is an ongoing issue in California’s program, particularly for glass containers. When handled through curbside programs they break into small pieces as part of the process of collection, compaction and sorting. And current statute has no provisions to require recovery facilities to produce glass that is free of contaminants, and CalRecycle has little authority to implement or develop processes to reduce, or better yet, eliminate contamination.

Position: Supported by Californians Against Waste
Contact: Clara Vazeix

BILL SUMMARY

SB 38 would exempt beverage manufacturers that that sell fewer than 2 million beverage containers in a calendar year from the minimum content standards. This does not expand or exclude manufacturers but ensure that large manufacturers are not exempted from the law due to an issue with how the language in code is drafted. Additionally, the bill requires processors to make payments by check or electronic fund transfer, not by cash payment and directs CalRecycle to study and develop a system to address contamination to improve the quality of glass material collected.

Status: Signed by the Governor
Current language, analysis, and votes: SB 38