AB 3056 (Chapter 907, Statute of 2006) Frequently Asked Questions

Q. Is the California Refund Value (CRV) on beverage containers going up in 2007?

A. On January 1, 2007, CRV paid to consumers increased to 5¢ for beverage containers under 24 oz. and 10¢ for containers 24 oz. and greater.

Q. How much will I pay in CRV at the supermarket when I purchase CRV beverages?

A. You will pay 5¢ for beverage containers under 24 oz. and 10¢ for containers 24 oz. and greater.

Q. Can you tell me the reason why there is an increase in CRV?

A. As a result of the recent passage of AB 3056, the Department of Conservation is authorized to increase CRV paid to consumers for beverage containers recycled to encourage greater public participation in recycling. A summary of this new law is available on the Department’s website at: http://www.consrv.ca.gov/DOR/crcp/recyclers/uln.htm

Q. Where can I learn more about changes to the State’s Beverage Container Recycling Program?

A. The Department of Conservation makes all of its notices and fact sheets available on the Department’s website at www.conservation.ca.gov. You can also call 1-800-RECYCLE and we will be glad to forward you to the staff person with expertise in the area in question, or email/mail/fax you information.

Q. When will the changes identified in AB 3056 take effect?

A. AB 3056 is an urgency statute, which means provisions of this legislation became effective immediately upon the Governor’s signature, unless otherwise specified. The increase in CRV paid to consumers will be effective January 1, 2007.

Q. Since the CRV rate is going up, are we going to be able to get paid per container instead of by the pound?

A. The consumer has the right to be paid per container when bringing in 50 (fifty) containers or less of each material type (aluminum, plastic, glass, and bimetal) in a single load. Recycling centers, at their discretion, may redeem more than 50 containers per material by count.

Q. How will the new law affect the amount that I receive when I redeem my beverage containers at the recycling center?

A. The Division of Recycling adjusts the refund value per pound for each type of beverage container material each year on January 1. The adjustment on January 1, 2007 reflects the increase in the amount of the CRV from 4¢ to 5¢ for beverage containers under 24 oz. and from 8¢ to 10¢ for beverage containers 24 oz. and greater.

Q. Does AB 3056 make more grant monies available to the general public? If so, how much is available and when will the Department’s next grant solicitation be announced?

A. AB 3056 provides three separate grant funding programs, as follows:

1. Market Development & Expansion Grant Program – Up to $20 million annually until January 1, 2012 for market development and expansion projects;

2. Competitive Grants to Community Conservation Corps – Up to $20 million from July 1, 2007 to June 30, 2008 for community conservation corps designated by a city, county and meeting other specific criteria;

3. Local Government or Non-profit Agencies – Up to $5 million annually in the form of grants to local governments or non-profit agencies for the placement of beverage container receptacles in multifamily housing low income communities.

The Department also administers the Beverage Container Recycling Grants program with up to $1.5 million annually to develop and establish sustainable projects focusing on beverage container recycling.

Grant solicitations for the above grant programs have not yet been developed. For questions regarding the Market Development & Expansion Grant program, please contact the Market Research Branch at 916-323-5878 for more information. For information regarding the other grant programs, please contact the Community Outreach Branch at (916) 322-0613.

For updated information on all recycling grant programs, visit the Division of Recycling Grants web site at www.conservation.ca.gov/DOR/Grants/Index.htm.

Section 2 – Recyclers and Processors

Q. I have heard that quality glass incentive payments (QGIP) are no longer going to be offered by the Department. Is this true?

A. Yes. The QGIP Program expired January 1, 2007. Effective January 1, 2007, Assembly Bill (AB) 3056 authorizes a new Quality Incentive Payment (QIP) Program, which will replace the QGIP Program. Glass, plastic and aluminum beverage containers are eligible to receive quality incentive payments.

Records should be maintained specific to the quality of material sold. Entities currently reporting under the QGIP program should continue to maintain records as outlined in Section VIII of the California Beverage Container Recycling Program Participant Manual for Certified Processors & Certified Recycler Centers. Once regulations are effective, the Department will inform all participants how 2007 QIP reporting shall be completed.

Q. Are there any other incentive payments offered to encourage beverage container recycling?

A. Yes. AB 3056 has authorized the implementation of a Plastic Market Development Payment (MDP) Program. Up to $5 million may be expended annually until January 1, 2012, for plastic beverage containers collected for recycling and subsequently washed and processed into a flake, pellet or other form and used by a product manufacturer to make a new product in the state.

Q. In November 2006, the Department conducted workshops to assist in the development of regulations for the Quality Incentive Payment (QIP) and Plastic Market Development Payment (MDP) Programs. When will the regulations become available to the public?

A. Due to the complexity of these new programs, as well as resource constraints, the implementation of the programs will be delayed until regulations are developed and effective. Regulations will be developed in calendar year 2007. Information on these new programs will be mailed and posted on the website as it is available.

Q. How will the new law change the processing payments?

A. AB 3056 will not change processing payments. The basic calculation of the processing payments will continue as before. The new processing payments became effective January 1, 2007.

Q. Due to the change in CRV effective January 1, 2007, do I have to change my pricing signs?

A. Yes, recyclers and processors are required to change their pricing signs to reflect the new CRV increase.

Q. I am a recycler, how do I report what I collected in 2006 as opposed to what I will collect on and after January 1, 2007?

A. If a receipt and log period overlaps the January 1, 2007 effective date of the new refund value, the Division of Recycling (Division) recommends that one DR6 be filled out for the period of the old rate and another DR6 be filled out for the period of the new rate. Failure to separate the weights may delay your payment and the Division will only reimburse payment at the lower rate for the entire reporting period.

Q. I heard that there is a new payment program for recycling centers or dropoff or collection programs. What is it and how does one apply for this new payment program?

A. What you may be referring to is the annual $10 million recycling incentive payment program effective January 1, 2007 through January 1, 2010. The criteria specified in statute include, but are not limited to, the following:

1. The recycling center or dropoff or collection program is certified and open for business during the entire two-year period prior to the six-month period for which payments are made, and at the time the payment is made. A six-month period shall begin either January 1 or July 1.

2. A recycling center or dropoff or collection program that was in operation prior to July 1, 2005 may receive a recycler incentive payment for beverage containers collected on or after January 1, 2007, if all the other program criteria are met.

3. Only one payment is made for each eligible beverage container collected directly from consumers by a recycling center or a dropoff or collection program.

4. Up to one cent ($0.01) per container may be paid on the increase in volume collected if the volume increase criteria are met by the recycling center seeking the incentive payment.

As soon as the Division of Recycling has determined the claim process, a separate notice will be mailed and posted on the Department’s website as well.

Q. I have heard that quality glass incentive payments are no longer going to be offered by the Department. Is this true?

A. Yes. The Quality Glass Incentive Payment (QGIP) Program will expire January 1, 2007. However, effective January 1, 2007, AB 3056 authorizes the development of a new Quality Incentive Payment (QIP) Program which will replace the QGIP Program. Glass, Plastic and Aluminum containers will be eligible to receive quality incentive payments under the new QIP. Information on this new program will be mailed and posted on the website as it is developed.

Q. Are there any other incentive payments offered to encourage beverage container recycling?

A. Yes. AB 3056 has authorized the implementation of a Plastic Market Development Payment Program. Up to $5 million may be expended annually until January 1, 2012 for plastic beverage containers that are collected for recycling and subsequently washed and processed into a flake, pellet or other form and used by a product manufacturer to make a new product in the state. Workshops for this new program will be conducted mid-November 2006. Watch for a separate notice that will be mailed soon indicating the date, location, and time of the workshops.

Q. How will AB 3056 impact annual handling fee payments?

A. AB 3056 provides for a gradual increase in the handling fee appropriation, to avoid future shortfalls in handling fee payments. It authorizes the Department to expend up to $31 million from 7/1/05 to 6/30/06, $33 million from 7/1/06 to 6/30/07, and $35 million from 7/1/07 to 6/30/08. The increase from $26.5 million to $31 million from 7/1/05 to 6/30/06 allows the department to pay for eligible claims submitted that were originally denied due to a lack of funds. These claims are being processed and the Department expects that payments will be mailed to recyclers before the end of October.

AB 3056 also requires the Department to conduct a cost survey during 2007, and every two years thereafter, to determine future handling fee payments beginning with the payments for the 2008/2009 fiscal year. Effective 7/1/08 the Department will determine the amount of the handling fee to be paid for each beverage container by subtracting the cost per container to redeem empty containers by recycling centers that do not receive handling fees from the costs per container of those that do receive handling fees. There will be no monthly or annual cap on payments.

Section 3 – Beverage Manufacturers & Distributors

Q. Will the CRV amounts the beverage distributor pays to the Department change as a result of AB 3056?

A. No. The current redemption payment amounts made by distributors will remain at 5¢ for beverage containers under 24 oz. and 10¢ for containers 24 oz. and greater.

Q. Does the new law change the administrative fee for distributors?

A. Effective October 1, 2006 (October 2006 reporting period), the administrative fee (admin fee) has increased from 1% to 1.5%. All distributors should now subtract and retain 1.5% of the California Redemption Value (CRV) reported on the Distributor Report (DR-3) beginning with sales in October 2006. Annual reporters for 2006 should submit at least two (2) DR-3 forms. The first form should report sales from January through September 2006 subtracting a 1% admin fee and the second form should report sales from October through December 2006 subtracting a 1.5% admin fee. Please continue to use the forms you currently have (cross out the 1% and write in 1.5%) until your supply is depleted. You may order additional DR-3 forms from IKON Office Solutions by phone at (916) 852-1010 or by fax at (916) 638-0909.

Q. Will the CRV labeling requirements change for beverage manufacturers as a result of AB 3056?

A. No – the change in the CRV does not affect the CRV labeling requirement. The following are the CRV message labeling options, and only one should be used:

Q. How will the new law change processing fees?

A. AB 3056 reduces to zero the processing fee for a beverage container material type that has a recycling rate of 40 percent or greater for a 12-month period (January 1 – December 31, 2007). For a beverage container material type that does not have a 40 percent or greater recycling rate, the Division will calculate the processing fee for 2007. A separate processing fee notice is posted on the Department’s website at: http://www.conservation.ca.gov/DOR/Notices/Index.htm.

Section 4 – Grocery Stores and other Beverage Dealers

Q. Do you have any information that I can give or show to customers who are confused about or unhappy with the changes to the Beverage Container Recycling Program?

A. Yes, a notice on AB 3056’s impacts is available at this website by clicking on this link: http://www.conservation.ca.gov/DOR/Notices/Index.htm. If customers prefer to speak with a Division representative, they can call 1-800-RECYCLE and be directed to the appropriate staff.