California Department of Resources Recycling and Recovery (CalRecycle) 

Beverage Container Recycling

2016 Processing Fees

December 15, 2015
NOTICE
To: All Interested Parties
Subject: 2016 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 2016 processing fees.

Pursuant to PRC Section 14575, the calculation of the 2016 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 2016 calculations.

Scrap values are based on the average scrap values paid to recyclers for the period between October 1, 2014, and September 30, 2015.

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, 2016.

2016 Processing Fees per Container Sold
(effective January 1, 2016)
Material Processing Fee
Glass $0.00232
Plastic: #1 PET Plastic (Polyethylene Terephthalate) $0.00024
Plastic: #2 HDPE Plastic (High Density Polyethylene) $0.00140
Plastic: #3 PVC Plastic (Polyvinyl Chloride) $0.00755
Plastic: #4 LDPE Plastic (Low Density Polyethylene) $0.00924
Plastic: #5 PP Plastic (Polypropylene) $0.05765
Plastic: #6 PS Plastic (Polystyrene) $0.00166
Plastic: #7 Other Plastic $0.07173
Bimetal $0.03027

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.

Scott Smithline
Director

Attachment: Table I
2016 Processing Fees (Glass, Bimetal and Plastic)
Effective January 1, 2016
  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 $99.97 $439.41 $537.52 $845.55 $1,206.25 $1,082.16 $670.31 $734.43 $677.40
Scrap Value per Ton -$1.10 $273.45 $354.51 $0.31 $26.61 $17.78 $107.55 $28.20 $53.37
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 $101.07 $165.96 $183.01 $845.24 $1,179.64 $1,064.38 $562.76 $706.23 $624.03
Processing Payment Per Pound Redeemed
(To be used on DR6)
$0.05054 $0.08298 $0.09151 $0.42262 $0.58982 $0.53219 $0.28138 $0.35312 $0.31202
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 11% 11% 11% 20% 65% 65% 65% 65% 65%
Processing Fee Pursuant to Section 14575(f) $0.00293 $0.00043 $0.00140 $0.00755 $0.00924 $0.05765 $0.00166 $0.07173 $0.03027
Section 14575(j) Processing Fee Reduction $0.00061 $0.00019 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Processing Fee to be Paid by Beverage Manufacturers $0.00232 $0.00024 $0.00140 $0.00755 $0.00924 $0.05765 $0.00166 $0.07173 $0.03027
Last updated: December 15, 2015
Beverage Container Recycling, http://www.calrecycle.ca.gov/BevContainer/
Contacts: http://www.calrecycle.ca.gov/BevContainer/Contacts.htm