California Department of Resources Recycling and Recovery (CalRecycle) 

Beverage Container Recycling

2014 Processing Fees

December 13, 2013
NOTICE
To: All Interested Parties
Subject: 2014 Processing Fees

Section 14575 of the Public Resources Code (PRC) requires the Department of Resources Recycling and Recovery (CalRecycle) to establish a processing payment and a processing fee for any beverage container type that has a scrap value less than the cost of recycling. CalRecycle makes processing payments to processors. Processors pay recyclers the entire processing payment. Beverage manufacturers pay processing fees to CalRecycle. This notice announces the 2014 processing fees.

Pursuant to PRC Section 14575, the calculation of the 2014 processing payments is based on the difference between the scrap values offered to recyclers and the sum of the actual costs of recycling for certified recycling centers, excluding centers receiving handling fees, plus a reasonable financial return. In addition, a cost of living adjustment will be applied to the 2014 calculations as the measured costs of recycling were completed the previous year.

Scrap values are based on the average scrap values paid to recyclers for the period between October 1, 2012, and September 30, 2013.

Other than as specified in Section 14575(f), Section 14575(e) provides that a processing fee will equal 65 percent of the processing payment. Section 14575(f) provides that a processing fee be equal to a specified percentage of a processing payment based on the recycling rate for the specified material.

Section 14575(j) directs CalRecycle to reduce total processing fees for glass and PET plastic if sufficient surplus funds remain in the respective processing fee accounts and if the recycling rates equaled or exceeded 45 percent in the preceding calendar year. Since there is sufficient fund in the processing fee account, a reduction for glass and PET plastic will be provided.

The processing fees shown below become effective January 1, 2014.

2014 Processing Fees per Container Sold
(effective January 1, 2014)
Material Processing Fee
Glass $0.00182
#1 PET Plastic (Polyethylene Terephthalate) $0.00016
#2 HDPE Plastic (High Density Polyethylene) $0.00215
#3 PVC Plastic (Polyvinyl Chloride) $0.03895
#4 LDPE Plastic (Low Density Polyethylene) $0.01017
#5 PP Plastic (Polypropylene) $0.04505
#6 PS Plastic (Polystyrene) $0.00223
#7 Other Plastic $0.08660
Bimetal $0.03671

Table 1, attached, shows the following detailed information for glass, plastic, and bimetal beverage containers:

  • The cost of recycling
  • The scrap value paid to recyclers
  • The processing payment (if any)
  • The processing fee payable by manufacturers (if any)

Note to beverage manufacturers: Pursuant to PRC Section 14575(g)(1), beverage manufacturers shall pay applicable processing fees for each container sold or transferred to a distributor or dealer within 40 days of the sale.

To review notices of changes impacting participants in the beverage container recycling program, please visit CalRecycle’s Beverage Container Recycling Program website or call the Department of Resources Recycling and Recovery at (916) 323-3836.

For further information on the determination of processing fees, please contact Mr. Hieu Le, Recycling Operations Branch, Division of Recycling, at (916) 323-5778. If you have any questions concerning processing fee reporting requirements, please contact your assigned account representative in the Accounts Management Section at (916) 323-1837.

Caroll Mortensen
Director

Attachment: Table I
2014 Processing Fees (Glass, Bimetal and Plastic)
Effective January 1, 2014
  Glass PET
Plastic
HDPE
Plastic
Vinyl
Plastic
LDPE
Plastic
PP
Plastic
PS
Plastic
Other
Plastic
Bimetal
Cost of Recycling per Ton with Reasonable Financial Return & COLA $97.85 $487.55 $645.26 $1,015.03 $1,448.02 $1,299.06 $804.66 $881.63 $813.17
Scrap Value per Ton $3.13 $370.29 $327.70 ($51.47) $184.06 $79.33 $32.11 $28.99 $11.24
Processing Payments to All Participant Types
  Glass PET
Plastic
HDPE
Plastic
Vinyl
Plastic
LDPE
Plastic
PP
Plastic
PS
Plastic
Other
Plastic
Bimetal
Processing Payment Per Ton Redeemed $94.72 $117.26 $317.56 $1,066.50 $1,263.96 $1,219.73 $772.55 $852.64 $801.93
Processing Payment Per Pound Redeemed
(To be used on DR6)
$0.04736 $0.05863 $0.15878 $0.53325 $0.63198 $0.60987 $0.38628 $0.42632 $0.40097
Processing Fees to be Paid by Beverage Manufacturers
  Glass PET
Plastic
HDPE
Plastic
Vinyl
Plastic
LDPE
Plastic
PP
Plastic
PS
Plastic
Other
Plastic
Bimetal
Manufacturers' Percentage of Processing Payment 10% 11% 10% 65% 65% 65% 65% 65% 65%
Processing Fee Pursuant to Section 14575(f) $0.00248 $0.00038 $0.00215 $0.03895 $0.01017 $0.04505 $0.00223 $0.08660 $0.03671
Section 14575(j) Processing Fee Reduction $0.00066 $0.00022 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Processing Fee to be Paid by Beverage Manufacturers $0.00182 $0.00016 $0.00215 $0.03895 $0.01017 $0.04505 $0.00223 $0.08660 $0.03671
Last updated: December 17, 2013
Beverage Container Recycling, http://www.calrecycle.ca.gov/BevContainer/
Contacts: http://www.calrecycle.ca.gov/BevContainer/Contacts.htm