DAVIS SIGNS BOTTLE BILL TO INCREASE THE CRV

Governor Davis signed Assembly Bill 28 into law on Sunday increasing the California Redemption Value to 4¢ (8¢ on larger containers) with an automatic step-up to 5¢ (10¢ for larger containers), if recycling rates fail to reach 75 percent recycling. This is a tremendous victory for California recycling!

Additionally, the measure implements a number of other recycling program reforms aimed at boosting recycling rates including:

· Increases quality glass incentive payments for clean, color sorted glass collected at curbside from $25/ton to $30/ton.
· Allows the Department to calculate a ‘3-7 plastic’ commingled rate.
· Initiates a variety of reforms to the process fee provisions, including: 1) Tiered manufacturer fee structure to encourage support for greater recycling; 2) Authorizes mid-year adjustments of processing payments when scrap values change by 5% or more; 3) Provides a roughly $42 million processing fee ‘rebate’ to beverage
manufacturers to compensate for two year overpayment; 4) Provides a roughly $38 million supplemental processing payment to compensate recyclers for a three year underpayment.
· Increases handling fees from $23,500,000 to $26,500,000.
· Increases litter reduction and recycling program grants from $500,000 to $1.5 million.
· Authorizes $10 million annually, until January 1, 2007, for market development of recycled containers.
· Authorizes up to $10 million to be transferred by the DOC to the Recycling Infrastructure Loan Guarantee Account for new recycling infrastructure.
· Authorizes one year continuation of $300,000 in funding for Keep California Beautiful.
· Authorizes up to $5 million annually for public education.