California Department of Resources Recycling and Recovery (CalRecycle) 

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.

Processing Fees (per container)
  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
Processing Payments (per container)
  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
Handling Fees (per container)
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
Other 14581 Programs
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

2009 Processing Payments Effective November 1, 2009: Glass, Bimetal, and Plastic
  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
Last updated: January 1, 2010
Beverage Container Recycling, http://www.calrecycle.ca.gov/BevContainer/
Contacts: http://www.calrecycle.ca.gov/BevContainer/Contacts.htm