Information for...
Beverage Container Recycling
Proportional Reduction in Payments
October 20, 2009
NOTICE
TO: All Recycling Program Participants
SUBJECT: Proportional Reductions in Payments
After careful analysis, the Department of Conservation (Department) has determined that there will be inadequate monies in the Beverage Container Recycling Fund (Fund) to make all of the payments specified in Public Resources Code (PRC) Sections 14575 and 14581. The Department notified the Legislature on May 29, 2009 of the inadequacy of available funds, as required by PRC Section 14581(c). A second letter was sent to the Legislature on October 15, 2009, updating key committees about the Fund Condition and notifying them that further reductions of expenditures from the Fund are necessary.
This letter advises of the specific changes the Department expects to make due to lack of monies in the Fund to make payments specified in PRC Sections 14575 and 14581. The financial obligations specified in these sections are reduced proportionally as required by Section 14581(d). The amount of this reduction will be 100 percent for all transactions that occur on and after November 1, 2009. Note that this reduction does not affect the California Redemption or Refund Value collected or paid, nor does it affect administrative fees retained or paid as defined in the PRC.
The following tables describes the impact of the proportionate reduction on the various payments, fees, and other components of the Recycling Program. Please see the Frequently Asked Questions (FAQ) for more information.
| 2008 Processing Fee Per Container |
Original 2009 Processing Fee Per Container |
Processing Fee Per Container as of July 1, 2009 |
Processing Fee Per Container as of November 1, 2009 |
|
|---|---|---|---|---|
| Glass | $0.00240 | $0.0022 | $0.0148 | $0.01692 |
| PET | $0.00072 | $0.00047 | $0.00389 | $0.00445 |
| HDPE | $0.00216 | $0.00150 | $0.01007 | $0.01158 |
| PVC | $0.02505 | $0.02381 | $0.02381 | $0.02381 |
| LDPE | $0.01691 | $0.01573 | $0.01573 | $0.01573 |
| PP | $0.09013 | $0.08508 | $0.08508 | $0.08508 |
| PS | $0.00507 | $0.00219 | $0.00219 | $0.00219 |
| #7 OTHER | $0.04217 | $0.05270 | $0.05270 | $0.05270 |
| BIMETAL | $0.04825 | $0.06902 | $0.06902 | $0.06902 |
| 2008 Processing Payment Per Container |
Original 2009 Processing Payment Per Container |
Processing Payment
Per Container as of July 1, 2009 |
Processing Payment
Per Container as of November 1, 2009 |
|
|---|---|---|---|---|
| Glass | $0.02461 | $0.02603 | $0.02278 | $0.01991 |
| PET | $0.00696 | $0.00685 | $0.00685 | $0.00593 |
| HDPE | $0.01803 | $0.01781 | $0.01302 | $0.01206 |
| PVC | $0.03855 | $0.03664 | $0.03664 | $0.03664 |
| LDPE | $0.02601 | $0.02420 | $0.02420 | $0.02420 |
| PP | $0.13866 | $0.13089 | $0.13089 | $0.13089 |
| PS | $0.00779 | $0.00337 | $0.00337 | $0.00337 |
| #7 OTHER | $0.06488 | $0.08108 | $0.08108 | $0.08108 |
| BIMETAL | $0.07423 | $0.10618 | $0.10618 | $0.10618 |
| 2008 Per Container |
2009 Per Container |
July 1, 2009 Per Container Payment |
November 1, 2009
Per Container Payment |
|---|---|---|---|
| $0.00980 | $0.00980 | $0.00147 | $0 |
| Gross | FY 08/09 Gross | Funding Available as of July 1, 2009 |
Funding Available as of November 1, 2009 |
|
|---|---|---|---|---|
| Curbside Supplemental Payments | $15,000,000 | $15,000,000 | $2,250,000 | $749,250 |
| Grants: Local Conservation Corps | $18,972,564 | $19,459,686 | $2,918,953 | $972,011 |
| Payments to Cities and Counties | $10,500,000 | $10,500,000 | $1,575,000 | $524,475 |
| Nonprofit Competitive Grants | $1,500,000 | $1,500,000 | $225,000 | $74,925 |
| Quality Incentive Payments | $15,000,000 | $15,000,000 | $2,250,000 | $749,250 |
| Market Development Grants | $20,000,000 | $20,000,000 | $3,000,000 | $999,000 |
| Recycler Incentive Program | $10,000,000 | $5,000,000 | $750,000 | $249,750 |
| Plastic Market Development | $5,000,000 | $5,000,000 | $750,000 | $249,750 |
| Public Education and Information | $5,000,000 | $5,000,000 | $750,000 | $249,750 |
| Community Beverage Container Grants | NA | $8,000,000 | $1,200,000 | $399,600 |
Please see the table below for a further breakdown of the 2009 Processing Payments.
The Fund condition will continue to be reviewed on a quarterly basis and further adjustments may be implemented, contingent upon future Fund balances. As indicated above, payments to processors and recyclers for refund values (CRV) and administrative fees will continue to be made in full and will not be impacted.
Jason Marshall
Acting Assistant Director for Recycling
| 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 | $105.96 | $532.95 | $558.51 | $815.91 | $2,072.88 | $878.90 | $695.14 | $827.69 | $985.68 |
| Scrap Value per Ton | $5.99 | $316.63 | $337.61 | $97.84 | $1.64 | $41.19 | $214.30 | ($47.96) | $8.83 |
| Processing Payments to Recyclers | |||||||||
| Processing Payment Per Ton Redeemed | $99.97 | $216.32 | $220.90 | $718.07 | $2,071.24 | $837.71 | $480.84 | $875.65 | $976.85 |
| Proportionally Reduced Processing Payment Per Ton | $76.44 | $187.48 | $149.57 | $718.07 | $2,071.24 | $837.71 | $480.84 | $875.65 | $976.85 |
| Processing Payment Per Pound Redeemed (To be used on DR6) | $0.03822 | $0.09374 | $0.07478 | $0.35904 | $1.03562 | $0.41886 | $0.24042 | $0.43783 | $0.48843 |
Beverage Container Recycling, http://www.calrecycle.ca.gov/BevContainer/
Contacts: http://www.calrecycle.ca.gov/BevContainer/Contacts.htm