TO CALL OUR MEETING TO ORDER.
THIS IS THE SECOND MEETING OF
THE ASSEMBLY BUDGET SUBCOMMITTEE
ON RESOURCES AND TRANSPORTATION.
FOR TWENTY EIGHTEEN AND TODAY I.
WE WILL BEGIN WHAT I. EXPECT MAY
WELL BE A MULTI YEAR
COMPREHENSIVE EXAMINATION OF ALL
OF CALIFORNIA'S RECYCLING
INITIATIVES.
IN ARE OVERSIGHT ROLE IT IS OUR
DUTY TO MAKE SURE THAT ALL OF
OUR PROGRAMS ARE NOT ONLY
FUNCTIONING AS INTENDED. BUT
MAXIMIZING THEIR POTENTIAL
I THINK IT'S SAFE TO SAY THAT
WITH RECYCLING WERE REALLY NOT
THERE ON EITHER OF THOSE
SCHOOLS.
HOWEVER AS POLICY MAKERS AND
ELECTED STEWARDS OF THE STATE WE
ARE ALSO TAXED
WITH INNOVATING AND INSTALLING
NEW APPROACHES TO OUR EVER
EVOLVING CHALLENGES. WHICH IS
WHAT BRINGS US HERE TODAY. IT'S
NO SECRET THAT CALIFORNIA'S
RECYCLING PROGRAMS NEED
REFINEMENT AS I MENTIONED IN
FACT FIXES TO THE BEVERAGE
CONTAINER RECYCLING PROGRAM MOST
COMMONLY REFERRED TO AS THE.
BOTTLE BILL PROGRAM HAVE BEEN
PROPOSED BY THE ADMINISTRATION
AND THE SUBCOMMITTEE IN EACH OF
THE LAST FIVE YEARS SINCE I'VE
BEEN CHAIR. IT'S SAFE TO SAY
THAT ALONG WITH CAP AND TRADE IN
OUR GREENHOUSE GAS REDUCTION
FUND THE BOTTLE BILL HAS BEEN
DISCUSSED MORE THAN ANY OTHER
PROGRAM.
AS PART OF OUR OVERSIGHT
RESPONSIBILITY WE WILL CONTINUE
TO WORK ON FIXES HOWEVER AS
POLICY MAKERS WE HAVE A DUTY TO
TAKE A STEP BACK AND EXAMINE OUR
APPROACH TO RECYCLING. AND TAKE
A FURTHER STEP BACK AND EXAMINE
OUR RESPONSIBILITY AS
MANUFACTURERS AND CONSUMERS.
LET'S SINGLE OUT JUST ONE OF THE
MANY PRODUCTS WE PRODUCE AND
CONSUME.
PLASTICS.
SINCE THE NINETEEN FIFTIES
GLOBAL PLASTIC PRODUCTION HAS
RISEN FROM TWO MILLION TONS A
YEAR TO MORE THAN THREE HUNDRED
MILLION TONS.
IT'S MUCH BETTER. SHOULD APPLAUD
THE LIGHT.
ADAM THIS IS PRODUCED MORE THAN
SIX POINT THREE BILLION TONS OF
PLASTIC WASTE.
OF WHICH NINE PERCENT.
ONLY NINE PERCENT HAS BEEN
RECYCLED TWELVE PERCENT IS
INCINERATED WORLDWIDE AND THE
REMAINING SEVENTY NINE PERCENT.
IS DUMPED INTO LANDFILLS.
OR LITTERED INTO THE
ENVIRONMENT.
THIS IS STAGGERING ESPECIALLY
WHEN YOU CONSIDER THE MILLIONS
OF BLUE BINS THAT LINE THE
STREETS OF OUR NEIGHBORHOODS
EVERYWHERE IN THIS COUNTRY AND
IN MANY PLACES AROUND THE WORLD
ON. TRASH COLLECTING DAYS.
HOW IS IT POSSIBLE THAT THESE
ARE THE STATISTICS?
WHAT ALSO STAGGERING IT IS THAT
THE AMOUNT OF SOLID COULD FILL
AN AREA THE SIZE OF MANHATTAN
TWO HUNDRED AND TWENTY NINE FEET
DEEP?
ACTUALLY TO OUR TWENTY NINE FEET
AND SEVEN INCHES THIS IS
ACCORDING TO PROFESSOR ROLAND
DIRE AT THE INSTITUTE OF ENERGY
EFFICIENCY. AT THE UNIVERSITY OF
SANTA BARBARA.
UNFORTUNATELY A LOT OF THIS
PLASTIC WASTE IS ALSO IN OUR
OCEANS WHICH IS PROBLEMATIC ON
MULTIPLE LEVELS.
FIRST PLASTICS ARE NOT HEALTHY
FOR OCEANS AND SEE LIFE AND IN
TURN NOT HEALTHY FOR US.
WELL SALT WATER AND ULTRAVIOLET
LIGHT BREAKDOWN PLASTICS.
THEY DO NOT DECOMPOSE AS A
RESULT.
THESE PLASTICS WHETHER THEY'RE
CLAMSHELL PACKAGING.
COKE BOTTLE STRAWS
AND THE LIKE THE BREAKDOWN INTO
TINY MICRO PLASTICS IN SOME
CASES LIKE MICROBEADS FOUND IN
FACIAL SCRUBS AND TOOTHPASTE.
WE'LL BE SEEING LESS OF THOSE IN
THE FUTURE OR PLASTIC MICRO
FIBERS FROM SYNTHETIC CLOSE WE
RUN THROUGH OUR WASHING
MACHINES.
THEY PENNED.
DESERT THESE ARE THINGS THAT ARE
DELIBERATE LEE PRODUCED AS
MICHAEL PLASTICS IN A BREAKDOWN
THAT'S THOUGH THE WAY THEY'RE
PRODUCED.
IN ANY CASE.
THESE CELL MICROPROCESSOR THAN
INGESTED BY FASHION AS THE
ECONOMISTS RECENTLY POINTED OUT
AN ARTICLE PUBLISHED JUST LAST
WEEK.
FROM THERE IT SEEMS ONLY A SHORT
JOURNEY TO OUR DINNER PLATES.
WE ALSO DON'T TYPICALLY SEE
PLASTICS THAT ARE IN THE OCEAN
SCIENTISTS ESTIMATE THAT OUR
OCEANS CONTAIN FIFTY ONE
TRILLION MICHAEL PLASTIC
PARTICLES AND THAT BY TWENTY
FIFTY. THERE WILL BE MORE
PLASTIC ARE OCEAN.
FINISH
THINK ABOUT THAT FOR A MOMENT.
FINALLY MOST PEOPLE DO NOT KNOW
THAT CALIFORNIA'S RECYCLING RATE
FOR
ALL BEVERAGE CONTAINERS PLASTIC
GLASS AND ALUMINUM. IS DECLINING
AND WILL CONTINUE TO DO SO AS
MORE RECYCLING CENTERS CLOSE.
THINK ABOUT THAT.
AND I REALLY THINK THIS IS
SOMETHING THAT THE GENERAL
PUBLIC DOESN'T KNOW. AND AS
WORD.
BECOMES AS THIS IT DOES BECOME
MORE GENERALLY KNOWN TO THE
PUBLIC THEY'RE GOING TO BE
SHOCKED THAT WE'RE NOT ACHIEVING
THE GOALS THAT THEY ALL EXPECT
US TO ACHIEVE.
AND COMPOUNDING THE PROBLEM EVEN
ONE BOTTLES ARE RETURNED TO BE
RECYCLED. THEY'RE NOT ALWAYS
BEING RECYCLED AS WE EXPECT
MOST PEOPLE ARE COMPLETELY
UNAWARE THAT MUCH OF WHAT THEY
THROW INTO THEIR BLUE BINS. ENDS
UP IN THE LANDFILL INCLUDING AS
WAS RECENTLY REPORTED TO MY
OFFICE
COMPLETELY CLEAN RECYCLABLE
PLASTIC
SIMPLY BECAUSE THERE'S NO MARKET
FOR THE PRODUCT.
SO CONSUMERS ARE NOT ONLY NOT
GETTING THERE NICKEL OR DIME
BACK BUT MORE TO THE POINT.
THEIR RETURN BOTTLES ARE NOT
ACTUALLY PAYING RECYCLED.
DESPITE THE BEST INTENTIONS OF
CONSUMERS RECYCLERS REGULATORS
AND ADVOCATES AND OTHERS WHO
HAVE INVESTED HEAVILY IN THIS
PROGRAM. IT'S HARD FOR ANYONE
LOOKING TO DO THEIR PART AND
RECYCLE TO NOT LABEL THIS
PROGRAM AS FAILING. IN ITS
PRIMARY FUNCTION AND MISSION.
WE'RE NOT GOING TO SOLVE ALL OF
ARE WASTE MANAGEMENT PROBLEMS
TODAY NOR WILL WE COMPLETELY
CHANGE OUR PRODUCER AND CONSUMER
HABITS HOWEVER. I DO EXPECT THAT
BY TAKING A CLOSER LOOK AT OUR
RECYCLING PROGRAMS WE WILL START
TO RETHINK THE BUILDING BLOCKS
OF THE LARGER SOLUTION.
AND THAT REALLY LOOK AT MORE
COMPREHENSIVE AND MORE EFFECTIVE
WAYS OF ACCOMPLISHING A GOAL
THAT WE ALL SHARE.
I MET A VERY PLEASED TODAY TO
SEE THAT OUR BUDGET CHAIR
FELTING IS PRESENT AND TO HE HAS
BEEN INTENSELY INTERESTED IN
THIS ISSUE.
CHAIR TING DID DO WANT TO ADD
SOME COMMENTS.
JUST VERY BRIEFLY IT SEEMS THAT
DOWN IS JUST ECHO YOUR. YOUR
YOUR COMMENTS MISTER CHAIR THAT.
HOME FOR THE LAST COUPLE YEARS
WE HAVE BEEN DEALING WITH OUR.
GREAT RECYCLING PROGRAMS AND
THAT WERE VERY VERY PROUD OF IT
THINK WE. I'VE EVER PAPER PROUD
OF THE WORK THAT WE'VE DONE IN
THE PROGRESS THAT WE'VE MADE
THAT.
SEEMS TO BE THAT WE STRUGGLED TO
GET IT ABOVE THE EIGHTY PERCENT
THRESHOLD AND IT SEEMS TO COSTS
A. B. FLUCTUATING A LITTLE BIT
ABOUT THE PERCENT OF THE PLOW.
AND I THINK THAT WE NEED TO.
TAKE A STEP BACK IT AND
REITERATE THAT OUR GOAL IS NEVER
ABOUT EIGHTY PERCENT BUT ABOUT
ZERO WASTE. THAT IT'S ABOUT A
HUNDRED PERCENT.
AND IT WE SHOULD BE TALKING
ABOUT NOT HOW DO WE.
AND MAINTAIN THE SOLVENCY OF A
PROGRAM THAT KEEPS AT EIGHTY
PERCENT BUT WHAT KIND OF PROGRAM
DO WE NEED TO HAVE TO GET US TWO
HUNDRED PERCENT SO. THAT WITHOUT
VERY MUCH LOOK FORWARD TO THAT
HEARING IN THANK YOU FOR YOUR
LEADERSHIP ON THIS ISSUE. YOU'RE
WELCOME AND VERY WELL SAID THANK
YOU SOWE WILL BEGIN. TODAY WITH
A A REPORT FROM THE LEGISLATIVE
ANALYST'S OFFICE AND ACTUALLY
AIMS.
HERE TO PELUSO LITTLE BIT OF
BACKGROUND AND OVERVIEW OF THE
BOTTLE PRO.
I THINK YOU MISTER CHAIR GOOD
MORNING MEMBERS EVERYONE
MACHINES WITH LEGISLATIVE
ANALYST'S OFFICE.
DID PREPARE A HANDOUT THAT I
THINK THAT YOU MIGHT ALREADY
HAVE FOR THE THE SERGEANT I WILL
BE ABLE TO GIVE YOU.
.
AND SO THIS IS JUST GOING TO BE
A KIND OF A HIGH LEVEL OVERVIEW
IT'LL MOVE THROUGH FAIRLY
QUICKLY SINCE I KNOW THEIR LOT
OF PANELISTS THAT YOU WANT TO
GET TO BUT PLEAS FEEL FREE TO.
STOP ME ALONG THE WAY. FROM
THINGS UNCLEAR YOU HAVE ANY
QUESTIONS
SO PERSONAL JUST TALK A LITTLE
BIT ABOUT WHAT CONTAINERS ARE
ACTUALLY IN THE PROGRAM AND HOW
WE DETERMINE WHICH CONTAINERS
ARE ELIGIBLE TO BE PART OF THE
BEVERAGE CONTAINER RECYCLING
PROGRAM.
DON'T TALK A LITTLE BIT ABOUT
THE FLOW OF THE CONTAINERS
THROUGH PROGRAM AND THE EXCHANGE
OF THE.
REDEMPTION VALUE ABOUT MONETARY
VALUE THAT'S TIED TO THOSE
CONTAINERS.
THIRD ALSO GOT SO THE OUTCOMES
SPECIFICALLY THE RECYCLING RATES
OVER TIME AND I KNOW YOU TOUCHED
A LITTLE BIT ON THE RECENT
TRENDS THERE. ALREADY AND FORTH
SOME OF THE OTHER PROGRAM
EXPENDITURES THAT THEY SUPPORT
BESIDES JUST THE BASIC CRV
PAYMENTS FOR THE CONTAINERS.
A FIFTH THE STATUS OF THE FIND.
ON THE MAIN FUND FOR THE PROGRAM
AND THEN LASTLY SOME OF THE THE
RECENT RECYCLING CLOSURES.
SO IF YOU LOOK ON THE FIRST
PAGE.
.
THIS FIGURE JUST SHOWS HOW WE
DETERMINE WHICH CONTAINERS ARE
ACTUALLY PART THE PROGRAM.
IN THE SEA HAS TO DO WITH SIZE
OF THE MATERIAL TYPE AND WHAT
THE CONTENT OF THE CONTAINER IS
MADE UP OF. IRELAND AND THERE
ARE SOME EXCEPTIONS AS YOU CAN
SEE THERE.
WELL MOST OF THINGS THE PROGRAM
WATER BOTTLES SODA CAN YOUR
BOTTLES ON THE TYPICAL THINGS
THAT THEY ARE USED TO PAY YOUR
SCARY FOR.
A SOLUTION YOU TURN THE NEXT
PAGE.
AND THAT'S THE FLOW OF THE
CONTAINER PAYMENT SO.
AROUND THE OUTSIDER CODE THE
MAIN OF STAKEHOLDER GROUPS TO
PARTICIPATE IN THE PROGRAM AND
YOU CAN SEE AT EACH STAGE OF THE
CONTAINER CHANGES HANDS.
THEN THERE'S USUALLY SOME KIND
OF OF A PAYMENT THAT CHANGES
THAT WELL AS WELL.
I'M CONSUMERS PAY THEIR DEPOSIT
WHEN THE A AT THE POINT OF
PURCHASE
I MEAN THE WAY THAT. THE PROGRAM
WORKS IS WE INCENTIVIZE THEM TO
BRING ABOUT JUSTIFIED RECYCLER
BY. REFUNDING THAT TO THEM.
WHEN THEY DO THAT.
IF YOU TURN TO THE THIRD PAGE
THEN.
.
YOU CAN SEE THAT OVER TIME THE
PROGRAM HAS BEEN RELATIVELY
SUCCESSFUL AT. A BEVERAGE
CONTAINER RECYCLING ESPECIALLY
FROM THE BEGINNING.
NOTABLY IN THE YEAR TWO
THOUSAND YOU SEE BIG DROP.
BUT THE P. ET THAT WAS WHEN I
WATER BOTTLES BEGAN. OF THEIR
INCLUSION IN SO YOU CAN SEE THE
RATE WAS MUCH LOWER AND THEN
CLIMBS AGAIN OVER TIME.
BUT AS THE CHAIR NOTED IN THE
LAST FEW YEARS.
THERE HAS BEEN A DECLINE IN THE
RECYCLING RATES.
FROM THAT CAN BE A TO REACH
MANY FACTORS BUT I KNOW ONE OF
THE THINGS THAT IT CERTAINLY CAN
BE RELATED TO SOME OF THE RECENT
RECYCLING CENTER CLOSURES. OF
SOFT TOUCH ON THAT HERE IN A
MOMENT.
TURNING TO THE FOURTH PAGE.
THE PROGRAM ALSO STRIDES
SUPPORTS A VARIETY OF OTHER
ACTIVITIES BESIDES JUST THE
EXCHANGE OF CONTAINERS AND
SERIES. AS YOU CAN SEE AND THE
WAY THE THOUGHT IS FUNDED IS
ESSENTIALLY THROUGH A CRV THAT'S
NOT CLAIMS SO RECYCLING RATE IS
ABOUT EIGHTY PERCENT THAT MEANS
YOU'RE ONLY PAYING OUT EIGHTY
PERCENT OF WHAT WAS PAID IN.
THE OTHER TWENTY PERCENT GOES
TOWARDS THESE VARIOUS.
.
OTHER PROGRAMS I WON'T GOING TO
EACH INDIVIDUAL ONE BUT IF YOU
HAVE ANY.
WHAT THE OF THOSE HAPPY TO TOUCH
ON THOSE?
IF YOU GO TO THE NEXT PAGE PAGE
FIVE.
AND THE SALUTE A LITTLE BIT
DIFFERENT MAYBE THAN WHAT YOU'VE
BEEN HEARING IN THE SUB
COMMITTEE OVER THE LAST FEW
YEARS ABOUT THE STATUS. OF THE
PROGRAM FINANCIALLY AND ITS
VARIOUS FUNDS.
WHICH IS THAT THERE'S ACTUALLY
A SURPLUS PROJECTED FOR. TWO
THOUSAND EIGHTEEN NINETEEN.
AND WE'VE BEEN IN YOUR LOT
BECAUSE OF.
TALKING ABOUT DEFICITS
BUT SINCE THE RECYCLING RATE OF
HAS DECLINED OF ONE PERCENT
DECLINE IN THE RATE IS MORE THAN
I'M TEN MILLION DOLLARS THAT'S.
STAYING IN THIS PROGRAM AND SO
BECAUSE IT'S GONE DOWN A LITTLE
BIT.
AMONGST OTHER THINGS WE SEE
THAT THERE'S ACTUALLY.
THIS YEAR.
SO JUST
TO BE CLEAR THERE'S MORE MONEY
IN THE ACCOUNT BECAUSE THERE'S
LESS RECYCLING GOING ON.
THAT IS WHAT THE MAIN
CONTRIBUTING FACTORS.
ONE OF THE.
AND THEN FINALLY IF YOU LOOK AT
THE LAST PAGE.
JUST TOUCHING ON SOME OF THE
RECYCLING CENTER CLOSURES.
SINCE THE PEAK WOULDN'T WE HAD
THE MOST RECYCLING CENTERS IN
CALIFORNIA. A ABOUT SIXTEEN
HUNDRED SENATORS THE SIXTEEN
HUNDRED FEWER CENTERS REGISTER
OF COLOR CYCLE TODAY THAN THERE
WERE AT THAT TIME.
WHICH IS A PRETTY SIGNIFICANT
DECLINE.
VARIOUS REASONS BUT THE MAIN
ONES THAT WE FOUND WHERE THE
REDUCE RECYCLER REVENUES DUE TO
AND THEN THE. REALLY SIGNIFICANT
DECLINES IN SCRAP VALUE THAT WE
SAW IN THE LAST FEW YEARS.
SOME RECYCLERS DID SAY
INCREASED OPERATING COSTS TIED
TO THINGS LIKE THE MINIMUM WAGE
ON SOME INCREASE IN HEALTHCARE
COSTS FOR THEIR EMPLOYEES AND
THAT KIND OF THING.
AND THEN FINALLY THAT SOME OF
THE THE PAYMENT FORMULAS COMING
OUT OF THE PROGRAM WERE ABLE TO
KEEP.
PACE WITH SOME OF THOSE MORE
QUICK MARKET CHANGES.
AND WE ALSO KNOW THAT SMALL
ROLE RECYCLERS WERE PARTICULARLY
AFFECTED LIKELY BECAUSE THEY
HAVE A HIGHER PER CONTAINER COST
PER TRANSPORTATION COSTS
UNUSUALLY LESS ECONOMIES OF
SCALE. ETCETERA.
IN THIS IS PROBLEMATIC FOR
SEVERAL REASONS THAT REDUCES
CONSUMER CONVENIENCE TO GET
THERE ARE.
DEPOSIT BACK.
IT CAN INCREASE RETAILER COST
THE RETAILER HAS A START TAKING
THOSE CONTAINERS BACK OR PAYING
THE. HUNDRED DOLLARS A DAY THE
OF THE PROGRAM THEIR SPECIFIC
PAYING. IF THEY DON'T HAVE A
RECYCLE THEIR NOT TO IN THE
CONTAINERS BACK. AND THEN
FINALLY THAT POTENTIALLY FEWER
RIGID CONTAINERS ARE BEING
RECYCLED.
BECAUSE THE SALAS CONVENIENT
FOR PEOPLE. TO BRING THE
RECYCLING AND SAYS YOU NOTED
THAT THE RATE HAS DROPPED TO.
CLOSE TO EIGHTY FIVE PERCENT
AND NOW WE'RE WE'RE ROUGHLY
AROUND EIGHTY PERCENT.
SO THEN FINALLY JUST TO CONTINUE
THAT. THE STATE HOUSING AT A
COUPLE OF THINGS TO TRY TO
ADDRESS SOME OF THAT.
THE FIRST ONE IS WE DO HAVE A
BILL LAST YEAR THAT.
AUTHORIZED SOME PILOT. PROJECTS
FOR A MOBILE.
RECYCLING CENTERS TO TRY TO
ADDRESS SOME OF THESE AREAS THAT
ARE NOW VERY UNDERSERVED ON
THAT.
I THINK STILL THE INITIAL STAGES
BUT GETTING UNDERWAY AND THEN
SUDDENLY.
CAO RECYCLE DID I IN ACTS
EMERGENCY REGULATIONS TO TRY TO
ADDRESS.
SPECIFICALLY SOME OF THE ROLE
CLOSURES BUT I'M SURE OF THAT
TRACTORS ELABORATE ON THAT MORE
THAN I CAN.
AND WITH THAT I'M HAPPY TO
ANSWER ANY QUESTIONS THAT YOU
HAVE ABOUT THE PROGRAM.
THANK YOU ANY QUESTIONS.
RETAIN.
SO GOING BACK BACK IN MY OPENING
COMMENTS WHAT DO YOU WHAT WOULD
IT TAKE FOR THE PROGRAM TO BE
COMEY ZERO WAYS PROGRAM AT THAT
THAT.
THE PEAK OF EIGHTY FIVE PERCENT
WHAT WHAT WOULD WE NEED TO DO.
BUT. THERE'S SEVERAL DIFFERENT.
.
WAYS THAT YOU CAN TRY TO ADDRESS
THAT.
.
YEAH I THINK IF YOU IT
CALIFORNIA'S PROGRAM HOUSE ONE
OF THE RELATIVELY HIGHER
RECYCLING RATES OF SOME OF THE
BEVERAGE CONTAINER PROGRAMS
THROUGHOUT THE COUNTRY.
BUT CERTAINLY WE'VE SEEN. YOU
KNOW PLACES I HAVE INCREASED
THEIR DEPOSIT A AMOUNT THAT'S
TIED THE CONTAINERS THEY'VE
USUALLY SEEN SOME KIND OF AN
INCREASE IN RECYCLING JUST
BECAUSE OF THE STRONGER
INCENTIVES.
.
THAT'S PROBABLY THE MAIN ONE
THAT COMES TO MIND BUT CERTAINLY
THERE ARE OTHER OPTIONS THAT
WOULD KIND OF AND YOU CLOSER TO
THAT ONE HUNDRED PERCENT.
ALUMINUM AND STATE HAS BEEN AT
A HUNDRED PERCENT OR CLOSE TO IT
BEFORE AND SO I FULLY TIED TO.
BUT THE SCOUT VALUES AND SO
PEOPLE ARE GETTING THE HIGHER
VALUE WHEN THEY BRING IT BACK.
.
BUT. YOUNG JUST INCREASING
CONSUMER RECYCLING WOULD
PROBABLY IT AS WELL AND
INCREASED THE RATE OVERALL.
SO GLASS A HIGHER VOLUME OF
WRIST AND ALUMINUM WHY DO YOU
THINK THAT THEIR. RATES ARE SO
LOW.
FOR THE GLASS RECYCLING.
I THINK IT'S FOR A FEW REASONS
UP FIRST ALL IT'S HEAVIER.
AND SO PEOPLE ARE LESS LIKELY I
THINK TO TO BRING IT INTO THEIR
STORAGE LARGER TO CARRY ITS ONLY
YOU CAN AND THAT. YOU CAN KIND
OF CRUNCH AND THEN I THINK
SECONDLY IN IN. DRUGS OR
SOMETHING WE CAN ALSO PROBABLY.
I'D GET INTO THE NITTY DETAILS
ON THIS LITTLE BIT BETTER BUT IT
IT WE DO HAVE SOME ISSUES WITH
IT BEING BROKE AND IN SOME OF
THE SINGLE.
SINGLE STREAM CURBSIDE AND SO
THAT CAN CAUSE.
THE GLASS NOT EVER MAKE IT
RECYCLING CENTER OR TO HAVE TO
BE DISPOSED OF.
ANY OTHER QUESTIONS.
GREAT THANK YOU FOR THE
PRESENTATION WERE GOING TO TAKE
ROLE NOW AND THEN PROBABLY
RECESSED FOR A COUPLE OF
MINUTES.
OF MISTER SMITH LINE IS NOT ABLE
TO BE HERE THIS MORNING MR
DEROSE IS ON HIS WAY OVER IT'S
PROBABLY. TWO OR THREE MINUTES
AWAY NOW.
WE'LL TAKE. ROLL SLOWLY.
SILICON HELPS THAT OUT.
BLOOM HERE FONG.
GARCIA.
MULLIN.
PATTERSON.
TING.
THE WE HAVE A CORPSMAN THAT WILL
RECESS FOR JUST COMPLIMENTS INTO
MISTER DIRECTS OUR RIGHTS THANK
YOU
ARE A.
RATHER THAN DELAY ANY FURTHER
BECAUSE WE DO HAVE.
.
OTHER ITEMS SO HONORED GENDER
SEVERAL PANELS I SHOULD SAY. OF.
WE'RE WE'RE JUST GONNA PROCEED
WITH A SUSAN COLLINS AND MARK
MURRAY AND THEN WILL WILL
REVERSE ORDER IF THAT'S ALRIGHT.
SO MR MURRAY MS COLLINS
.
MORNING DOCUMENT LEADERS. AND
MEMBERS OF THE COMMITTEE.
CAN YOU HEAR ME TO STEP HE
PULLED OUT A LITTLE CLOSER TO
RIGHT I THINK IT'LL BE A LITTLE
EASIER KISSED THE MARKETS BASED
AND THE OTHER.
.
SO THANK YOU VERY MUCH FOR.
ASKING ME TO COME AND SPEAK
HERE GROUP ABOUT AND
CALIFORNIA'S BEVERAGE CONTAINER
RECYCLING IN LITTER REDUCTION
PROGRAM. AND JUST A FEW WORDS
ABOUT WHAT THE CONTAINER
RECYCLING INSTITUTE IS.
I AM SUSAN COLLINS I AM THE
PRESIDENT OF THE CONTAINER
RECYCLING INSTITUTE. AND WE ARE
A FIVE OH ONE C. THREE THAT DOES
RESEARCH EDUCATION AROUND
PACKAGING RECYCLING. OUR MISSION
IS TO MAKE NORTH AMERICA GLOBAL
MODEL FOR THE COLLECTION AND
QUALITY RECYCLING OF PACKAGING
MATERIALS. AND AS WE DO OUR
RESEARCH AND BOTH IN THE UNITED
STATES AROUND THE WORLD THE
THINGS THAT WE'RE LOOKING FOR A
BEST PRACTICES WERE LOOKING FOR.
HOW DO YOU GET THE HIGHEST
QUALITY RECYCLING THE HIGHEST
QUANTITY OF RECYCLING AT THE
LOWEST COST AND AGAIN JUST FOCUS
ON ON PACKAGING MATERIALS BUT IF
YOU CAN IT IT WAS JUST STRIVE TO
ACHIEVE THOSE THREE THAT SORT OF
RECYCLING NIRVANA HIGH QUALITY
HIGH QUALITY LOW COST?
SO A LITTLE BIT OF AN
INTERNATIONAL PERSPECTIVE HERE
ON BEVERAGE CONTAINER DEPOSIT
LAWS.
.
IT'S INCREDIBLE THE GROWTH THAT
WE'VE SEEN IN THE LAST FEW YEARS
AROUND THE WORLD TO SINCERE TWO
THOUSAND FIVE. THERE'VE BEEN
FIFTEEN NEW DEPOSIT LAS
SERVING MORE THAN A HUNDRED
MILLION PEOPLE AROUND THE WORLD
SO THIS IS A VERY MUCH A GROWING
AND.
TOPIC AND THEY'RE PICKING UP IN
A BIG WAY IN EUROPE AND
AUSTRALIA. AND WE'RE HEARING NOW
THAT THE U. N. IN THE G. SEVEN
ARE ALSO LOOKING AT DEVELOPING
NATIONS. AND THE ISSUE THAT YOU
BROUGHT UP CHAIRMAN BLOOM ABOUT
SAM PLASTIC IN THE OCEAN THE
MARINE DEBRIS ISSUE. IS A HUGE
DRIVER OF THESE CONTAINERS POSIT
LAWS AROUND THE WORLD.
ALSO IN THE UNITED STATES THIS
IS JUST.
NEW LEGISLATION HAS BEEN
INTRODUCED IN TWENTY EIGHTEEN SO
WERE DOING RESEARCH AND
EDUCATION ON. A MORE THAN TWO
DOZEN BILLS IN.
ABOUT A DOZEN STATES
AT THROUGHOUT THE US SO IT'S
IT'S A TOPIC THAT'S RECEIVING A
LOT OF ATTENTION NOT JUST
HEARING CALIFORNIA BUT AROUND
THE U. S..
ALSO ARE CALIFORNIA PROGRAM.
WE'RE GOING TO BE TALKING A LOT
ABOUT PROBLEMS TODAY BUT I DON'T
WANT TO OVERLOOK THE INCREDIBLE
SUCCESS
AND IT IS A PROGRAM THAT STILL
HAS A SEVENTY SEVEN PERCENT
RECYCLING RATE WHICH IS AMAZING
FOR RECYCLING PROGRAMS IN
GENERAL. AND THE BIGGEST PROGRAM
FOR CONTAINER DEPOSITS IS IN
GERMANY CALIFORNIA IS THE SECOND
LARGEST PROGRAM IN THE WORLD.
AM AND DAD THAT WILL HOLD UNLESS
THE U. K. A TOPS AND THE DEPOSIT
LA THEN NOPE THE PUMP IS DOWN TO
NUMBER TWO NUMBER THREE FROM
NUMBER TWO.
THE OTHER THING THAT HAS
RECEIVED A LOT OF CONVERSATION
IN THE LAST FEW YEARS IS THE
DISCUSSION OF STRUCTURAL
DEFICITS.
AND WE SHOULD REALLY A NOT BE
DISCUSSING THAT A LOT TODAY.
AND THE PROGRAM ACHIEVED A
SURPLUS IN THE LAST FISCAL YEAR.
OF FORTY FOUR MILLION IT'S GOING
TO SHOW A LITTLE BIT DIFFERENT
FROM FROM THAT IN.
CAO RECYCLES QUARTERLY REPORT
BUT THERE WAS A THIRTY FOUR
MILLION DOLLAR SURPLUS PLUS
ANOTHER TEN MILLION DOLLARS IN
INTERNAL TRANSFERS SO DOESN'T
SHOW UP IN THE MAIN FUND BUT IT
WAS JUST MOVING MONEY FROM ONE
ACCOUNT TO ANOTHER.
ALTOGETHER BETWEEN THE FUND
BALANCE IN THE MAIN FUND AND THE
FUND BALANCES AND THE OTHER FOR
FUNDS THERE'S MORE THAN THREE
HUNDRED THIRTY MILLION DOLLARS
IN FUND BALANCE.
SO.
THAT'S NOT IT YOU KNOW YOU THAT
YOU'RE NOT A PLACE WHERE YOU
NEED TO WORRY ABOUT IS THERE
ENOUGH MONEY TO DO WHAT YOU
WANNA DO.
THE THING THAT WE SHOULD BE
TALKING ABOUT TODAY IS AN IS
THERE ENOUGH MONEY THAT'S A
DISTRACTION WE SHOULD BE TALKING
ABOUT WHAT WE WANNA DO.
AND HERE'S THE BIG BIG TOPIC
THERE ARE A LOT OF IMPORTANT
ISSUES.
THIS IS THE SINGLE MOST
IMPORTANT ISSUE.
SINCE THE PEAK IN TWENTY
THIRTEEN.
NEARLY ONE THOUSAND REDEMPTION
CENTERS HAVE CLOSED.
THIS IS IMPORTANT FOR A WHOLE
BUNCH IT FOR REASONS AND ONE OF
THE THINGS THEY WANT YOU TO
FOCUS ON IN THIS CHART IT'S A
LITTLE HARD TO SEE BUT THE
STEEPEST PART OF THE. DECLINE
OCCURRED BETWEEN MID TWENTY
FIFTEEN AND MID TWENTY SIXTEEN
AND I HAVE SEVERAL MORE CHARTS
THAT ARE GONNA EXPLAIN WHY THIS
HAPPENED WHAT HAPPENED. AND
UNDERSTANDING WHY IT HAPPENED
AND WHAT HAPPENED ARE ABSOLUTELY
INSTRUMENTAL. FOR US TO KNOW
WHAT WE SHOULD DO TO FIX THESE
PROBLEMS.
SO. BRIEFLY READING FROM TOP TO
BOTTOM IN EACH OF THESE COLUMNS
THE COST OF RECYCLING IS THE
COST THAT THE REDEMPTION CENTERS
BEAR THEY HAVE TWO DIFFERENT
SOURCES OF REVENUE.
THE PROCESSING PAYMENT THAT THEY
RECEIVE FROM THE DEPARTMENT.
AND THE SCRAP VALUE THEY RECEIVE
AND THOSE TWO THINGS ARE
SUPPOSED TO MAKE THEM WHOLE. YOU
CAN SEE IN THE MAY TWENTY
SIXTEEN COLUMN THIS IS FOR P. ET
THEY HAD A COST OF ABOUT FOUR
HUNDRED FORTY DOLLARS A TON. AND
THE TO PAYMENTS THAT THEY WERE
GETTING. WASN'T ENOUGH TO MAKE
THEM WHOLE THEY WERE THEY WERE
RECEIVING A SHORT FALL.
FORTY FIVE DOLLARS ON EVERYTIME
OF P. ET THAT THEY HANDLE.
DID THE EXACT NUMBERS ARE AN
IMPORTANT HERE IT'S JUST TO
ILLUSTRATE THIS IS HOW THEY GET
PAID AND THIS IS HOW GET THE.
THEY WERE GETTING PAID AND IT
WASN'T WORKING IT WAS LOSING THE
MONEY AND EVERY TIME THE HANDLE.
ALSO IF YOU LOOK AT THE SCRAP
VALUES TRENDING DOWN SINCE TWO
THOUSAND TWELVE THIS IS A
COMPLETELY EXTERNAL SOURCES IS
SOMETHING THAT NOBODY IN THE
STATE OF CALIFORNIA HAS ANY
CONTROL OVER. BUT IT IS
SOMETHING WHAT WE CAN CONTROL IS
HOW WE REACT TO IT.
SO THE SCRAP VALUES WERE
DECLINING FOR P. ET FOR ALUMINUM
CANS AND FOR GLASS AND HERE'S
THE KEY. IT ALL HAPPENED AT THE
SAME TIME.
IF ONE OF THESE THINGS HAVE
HAPPENED.
THE REDEMPTION CENTERS MIGHT OF
WEATHER DOT PROBLEM.
YOU CAN SEE IN THE DATE THAT THE
REDEMPTION CENTERS CLOSED
IT CORRELATES VERY STRONGLY TO
WHAT HAPPENED BETWEEN TWENTY
FIFTEEN AND TWENTY SIXTEEN LOOK
AT THE CHART ON THE RIGHT
ALUMINUM CANS. YOU CAN SEE
THERE'S ONE PART OF THAT CHART
WHERE THE LINE DECLINES
DRAMATICALLY THEIR STE IT JUST
FALLS OFF OF A CLIFF.
THAT WAS HAPPENING AT THE SAME
TIME THAT THE P. T. PRICES WERE
FALLING OFF A CLIFF.
NOW HERE IN THIS NEXT CHART
THERE'S TWO LINES HERE.
THE ACTUAL SCRAP VALUE IS WHAT
THE REDEMPTION CENTERS WERE
PAYING.
THAT'S THE DOTTED LINE.
THE. BULLS LINE THE FILLED IN
LINE ON THE TOP OF EACH OF THESE
GRAPHS.
IS WHAT CAL RECYCLES FORMULA
THOUGHT THEY WERE GOING TO BE
PAID TO THE GAP IN BETWEEN THOSE
LINES IS WHERE THE REDEMPTION
CENTERS WERE EXPERIENCING A
SHORTFALL. AND AGAIN YOU CAN SEE
THE BIGGEST GAPS
OCCURRING FOR P. ET AND GLASS IN
THE TWENTY FIFTEEN TO TWENTY
SIXTEEN TIME PERIOD AND THAT'S
EXACTLY WHEN THE REDEMPTION
CENTERS.
WERE ALSO RECEIVING LESS MONEY
FROM ALUMINUM BECAUSE THE
ALUMINUM PRICES IT FALLING OFF A
CLIFF.
SO OF THESE THOUSAND CENTERS
THAT HAVE CLOSED OVER THIS FIVE
YEAR PERIOD.
ALMOST HALF OF THEM FOUR HUNDRED
FIFTY SIX OF THEM CLOSED IN A
TWELVE MONTH PERIOD.
AND IT WAS THAT THAT TERRIBLE
PERIOD WHERE ALL THE PRICES
DECLINED.
SO.
WHAT THAT TELLS US IS THAT THIS
PROGRAM DIDN'T HAVE THE TOOLS
THAT IT NEEDED TO ADDRESS THAT
PROBLEM THE PROBLEM OCCURRED
VERY QUICKLY AND THERE WAS NO
WAY TO SOLVE IT? BUT THE PROBLEM
ALSO OCCURRED BEFORE THAT TIME
PERIOD AND AFTER THAT TIME
PERIOD AND WE DON'T HAVE ANY
TOOLS TO ADDRESS THAT EITHER
EXCEPT FOR THE RECENT EMERGENCY
REGULATIONS THAT CAME ABOUT.
CHAIRMAN BLOOM YOU LOOKED LIKE
YOU HAD A QUESTION SHOULD I STOP
HERE.
HER I WAS SET PONDERING WHETHER
TO ASK YOU WHAT THOSE TOOLS ARE
THAT WE NEED. BUT I HAVE A
FEELING YOU'RE GOING TO GET TO
THAT I'M AVERAGE I.
THANK YOU.
IT SO IT DID THIS IS SORT OF A
RESTATEMENT OF THE SAME THING IT
SHOWS HOW MUCH THE REDEMPTION
CENTERS WERE UNDERPAID. EACH
YEAR FOR YOU KNOW THAT FIVE YEAR
PERIOD AND THEN HERE IT IS
CUMULATIVELY.
SO IF A REDEMPTION CENTER WAS
EXISTING AT THE BEGINNING OF ITS
TIME AND THEY WERE ABLE TO STICK
IT OUT THROUGH LOSING A LOT OF
MONEY.
IN TWENTY TWELVE TWENTY
THIRTEEN TWENTY FOURTEEN THAT'S
ONE THING BUT THEN THE
CUMULATIVE LOSSES MOUNTED. AND
OVER THIS PERIOD OF TIME THOSE
REDEMPTION CENTERS WERE
UNDERPAID BY A TOTAL OF SIXTY
TWO MILLION DOLLARS.
SO ALL OF THAT MAKES IT
COMPLETELY OBVIOUS WHY WE LOST A
THOUSAND REDEMPTION CENTERS.
THERE IS SOME ADDITIONAL CLOSING
OF REDEMPTION CENTERS THAT
HAPPENED BECAUSE.
I THEY BASICALLY BEEN EVICTED BY
THEIR LANDLORDS OR THE
SUPERMARKETS THAT ARE HOSTING
THEM.
AND I DON'T KNOW HOW MANY OF
THOSE THOUSAND WERE CLOSED IN
THAT WAY. BUT I KNOW THAT THAT'S
PART OF IT.
AS WELL.
SO AN ENCOUNTER CYCLE.
INCLUDED A STATEMENT IN THEIR
QUARTERLY REPORT THIS LAST TIME
WHERE THEY SAID WE REALLY DON'T
HAVE TOOLS TO ADDRESS THIS
PROBLEM.
AND I THINK WE SHOULD ALL TAKE
THAT VERY SERIOUSLY THAT.
THAT'S SOMETHING WHERE THEY NEED
HELP FROM THE LEGISLATURE AND
THROUGH OUR ENTIRE COMMUNITY OF
STAKEHOLDERS TO ADDRESS THIS
PROBLEM.
SO.
WHEN WHAT THE KEY THING ABOUT
ANY DEPOSIT PROGRAM IS THAT.
THERE EXISTS A SOCIAL CONTRACT.
TWEEN THE STATE AND THE
CONSUMERS.
THE STATE PUTS THE LINE PLACE
THAT SAYS IF YOU RETURN THIS
BEVERAGE CONTAINER WILL MAKE
SURE THAT YOU GET YOUR FIVE
CENTS BACK.
AND.
THE CONSUMERS ARE OWED THAT
OPPORTUNITY TO GET THEIR FIVE
CENTS BACK.
SO WHEN WE DON'T HAVE REDEMPTION
CENTERS IN ENTIRE COUNTIES.
AND INDEED THEIR SEVENTEEN
COUNTIES THAT HAVE EITHER ZERO
OR ONE OR TWO OR THREE
REDEMPTION CENTERS.
.
THAT HAS BROKEN THE SOCIAL
CONTRACT. FOR TELLING THE
CONSUMERS TO DO SOMETHING AND
NOT ALLOWING THEM WHAT THEY NEED
THE ACCESS TO RECYCLING TO DO
IT.
THE OTHER PART OF THE SOCIAL
CONTRACT IS.
AND WE WILL RECYCLE THIS
PRODUCT.
.
THE AT THE EXPECTATION.
IT'S NOT VERY IMPORTANT.
VERY IMPORTANT.
SO RIGHT NOW NOT ONLY HAVE WE
LOST THESE THOUSAND AND
REDEMPTION CENTERS BUT THE
POPULATION IS HIGHER THAN IT WAS
A FEW YEARS AGO PEOPLE ARE
CONSUMING MORE BEVERAGE
CONTAINERS THAN THEY WERE A FEW
YEARS AGO SO THIS MEANS WE ARE
RETURNING MORE CONTAINERS.
PER PERSON AND WE HAVE MORE
PEOPLE RETURNING CONTAINERS THAN
EVER BEFORE.
AND NOW WE HAVE FEWER CENTERS.
SO THIS CHART IS LOOKING AT IT
FROM A DIFFERENT POINT OF VIEW
THIS SAYS WELL HOW MANY PEOPLE
ARE SERVED BY EACH REDEMPTION
CENTER.
AND WE REACHED A POINT WHERE IT
WAS AROUND FIFTEEN THOUSAND
PEOPLE.
SERVED BY EACH REDEMPTION CENTER
NOW IT'S MORE LIKE TWENTY FIVE
THOUSAND PEOPLE SERVED BY EACH
REDEMPTION CENTER.
SO THE REDEMPTION CENTERS.
ARE MORE CROWDED THERE'S MORE
TRAFFIC THAT'S A BIGGER IMPACT
ON THE NEIGHBORHOODS WHERE THEY
ARE.
AND IT MEANS THAT PEOPLE HAVE TO
WAIT IN LINE LONGER. UP WITH THE
INCREASE IN MINIMUM WAGE
INCREASE IN THE COST OF THE
CENTERS AND THE FACT THAT
THEY'RE ALREADY THE CENTERS ARE
ALREADY FINANCIALLY BELEAGUERED.
THEY HAVE CUT THE HOURS THEIR
CENTERS ARE OPEN AGAIN SQUEEZING
MORE AND MORE PEOPLE AND MORE
AND MORE CONTAINERS.
INTO A SPACE THAT WAS NEVER
DESIGNED PHYSICALLY A SPACE THAT
WAS NEVER DESIGNED TO ACCEPT
THAT MANY CONTAINERS.
AND WHAT ARE THEY DESIGNED TO.
TO.
THEY WERE DESIGNED SEVERAL YEARS
AGO TO HANDLE YOU KNOW SIXTEEN
THOUSAND AT PEOPLE PER CENTER
NOT TWENTY FIVE THOUSAND SO EACH
CENTER IS RECEIVING ABOUT FIFTY
PERCENT MORE CONTAINERS THAN
THEY WERE BEFORE.
I AM SO YOU CAN IMAGINE.
THE IMPACT THAT HAS ON THEIR
PHYSICAL FOOTPRINT.
SO AGAIN GOING BACK TO THE ISSUE
OF THIS IS THE BIGGEST ISSUE
THAT NEEDS TO BE FIXED THE
ANALOGY. ANALOGY I WILL MAKE IS
THAT. IF YOUR HOUSE IS ON FIRE
PUT OUT THE FIRE AND THEN TALK
LATER ABOUT REDECORATING.
SO WE SHOULDN'T BE HAVING ANY
CONVERSATIONS TODAY ABOUT
REDECORATING ALL OF OUR
CONVERSATION SHOULD BE FOCUSED
TOWARD THIS MAIN MAIN ISSUE
WHICH IS THAT WE HAVE TO REBUILD
THE INFRASTRUCTURE. AND
CALIFORNIA SO THAT CONSUMERS
HAVE ACCESS TO RETURN THEIR
BEVERAGE CONTAINERS.
SO TO HEAR STICKING A DEEPER
DIVE INTO.
HOW ONE MATERIAL TYPE HAS BEEN
AFFECTED BECAUSE IT'S BEEN
AFFECTED MORE THAN THE OTHER TWO
MAJOR MATERIAL TYPES THIS THIS
DATA IS FOR GLASS?
WHAT WE'RE SEEING?
IS THE WE HAVE THE GENERAL
STATISTIC THAT THE CURRENT
RECYCLING RATE IS SEVENTY SEVEN
PERCENT AND WE KNOW THAT DIETS
FIVE TO SEVEN POINTS LOWER.
THEN IT WAS A FEW YEARS AGO.
HOWEVER.
THAT'S THE OVERALL RECYCLING
RATE IT DOESN'T REFLECT THE
SHIPS.
OF THE MATERIALS FROM. AT THE
REDEMPTION CENTERS TO CURB SIDE
AND FOR GLASS IT'S BEEN
PARTICULARLY PROBLEMATIC
AT THE GREEN BAR THERE SHOWS
THAT AND CLASS IS GONE DOWN BY
MORE THAN TWENTY PERCENT THAT.
FROM FIVE HUNDRED SIXTY THOUSAND
TIMES DOWN TO FOUR HUNDRED
THIRTY ONE THOUSAND TONS GOING
THROUGH THE REDEMPTION CENTERS.
THAT'S THE SUPER CLEAN HIGH
QUALITY GLASS.
INSTEAD A BUNCH OF THAT GLASS
HAS GONE TO THE LANDFILL OF
COURSE.
A AND THAT'S YOU CAN SEE THAT IN
THE BLACK LINE ON THE TOP.
BUT THE BLUE LINE SHOWS THAT A
BUNCH THAT GLASS WAS ALSO
ABSORBED BY.
SINGLE STREET CURBSIDE PROGRAMS
AND THAT IS THE GLASS THAT IS
MORE CONTAMINATED AND IS WORTH
LESS IN DOLLAR VALUES.
SO WHEN YOU SHIFT THE GLASS OUT
OF THE HIGH DOLLAR VALUE
CATEGORY INTO THE LOWER DOLLAR
VALUE CATEGORY. THAT AVERAGE
PRICE FOR GLASS GOES DOWN AND
THE PROCESSING PAYMENT PASSED TO
GO UP TO MAKE UP THAT
DIFFERENCE.
SO HERE ALL OF THE IMPLICATIONS
OF WHAT'S HAPPENED TO GLASS.
THE CONSUMERS ARE GETTING LAST
REFUNDS AN ACROSS THE BOARD FOR
ALL MATERIALS IT'S IT'S
SOMEWHERE IN THE RANGE OF FORTY
TO FIFTY MILLION DOLLARS A YEAR.
THAT CONSUMERS ARE GETTING
THAT'S LESS THAN WHAT THEY USED
TO AT.
AND IT MADE EVEN BE BE A LITTLE
HIGHER THAN THAT OF AYE
RECALCULATE.
THE REDEMPTION CENTERS ARE
GETTING LESS MATERIAL.
THE MERCK'S ARE GETTING MORE
GLASS AND THEY DON'T WANT MORE
GLASS.
THE QUALITY IS LOWER.
SO THE PROCESSORS AND THE
MANUFACTURERS HAVE TO EITHER
HAVE HIGHER COSTS.
OR THEY GET LESS MATERIAL WHICH
THEY WANT TO MAKE RECYCLED
CONTENT PRODUCTS.
ALL THE WHILE THE FUND IS
ACTUALLY PAYING MORE.
TO GET LAST CLASS AND LOWER
COSTS QUALITY GLASS AND THE
MANUFACTURERS ARE PAYING MORE
TO.
SO NO ONE WINS HERE.
NO ONE WENT
SO THOUGH ON GLASS THOSE OF THE
OUTCOMES WHETHER WHAT OF THE
PRIMARY DRIVERS OF THOSE
OUTCOMES
YOU KNOW ACTUALLY MADE A GOOD
POINT WHEN SHE SAID WITH THE
REDEMPTION CENTERS CLOSING IF
PEOPLE ARE GONNA TRAVEL FARTHER
ESPECIALLY FOR PEOPLE WHO DON'T
HAVE.
I IF THERE IF ON A BIKE IF THERE
ON FOOT THEY'RE NOT GOING TO
CARRY THE HAVE YOUR CLASS
THEY'RE GONNA TAKE THE ALUMINUM
IN THE P. ET AND FOR RECYCLING.
SO I'M ALL OF THE RATES ARE DOWN
INCLUDING GLASS BUT I THINK
GLASS SUFFERS A LITTLE BIT MORE
THAN THE OTHER MATERIAL TYPES IN
THAT SCENARIO.
SO AGAIN I THINK TO YOUR
QUESTION THE ANSWER IS MORE
REDEMPTION CENTERS IN MORE
PLACES.
AND I DO HAVE A SLIDE HERE AND
HOW IT'S AFFECTED DIFFERENT
PLACES.
IN ADDITION TO THE RURAL
COUNTIES SUFFERING A LOT AND
LOSING REDEMPTION CENTERS TO THE
POINT WHERE SOME OF THEM HAVE NO
REDEMPTION CENTERS AT ALL.
THE PLACES THAT HAVE HIGH RENT.
HAVE ALSO LOST REDEMPTION
CENTERS YOU CAN IMAGINE OF
COURSE THAT'S BECAUSE THEY HAVE
HIGHER COSTS.
SO I THINK.
EIGHT OUT OF THE TEN HARDEST HIT
COUNTIES THE ONES THAT HAVE MOST
SCARCE REDEMPTION CENTERS ARE IN
THE SAN FRANCISCO BAY AREA.
AND THAT WAS RESULT I DIDN'T
EXPECT TO FIND WHEN WE CRUNCH
THESE NUMBERS.
AND THE PERCENTAGE LOST.
I THINK AM SEVENTEEN OUT OF
FIFTY EIGHT COUNTIES.
HAVE LOST MORE THAN FIFTY
PERCENT OF THE REDEMPTION
CENTERS.
SO. THE LOSSES.
ARE ACROSS
THE ENTIRE STATE.
BUT IN SOME COUNTIES THE
REDEMPTION CENTERS ARE SO SCARCE
AND THAT PEOPLE WOULD HAVE A
REALLY HARD TIME FINDING A
CONVENIENT LOCATION RETURN THERE
THE CONTAINERS.
SO AGAIN I HAVE RELEGATED SOME
OF THESE OTHER ISSUES TO THIS
SLIDE COMING VERY LATE IN MY
PRESENTATION AND IT'S BECAUSE I
WANTED TO MAINTAIN THE FOCUS ON
THE MOST IMPORTANT THING WHICH
IS THE RESTORATION.
I THE REDEMPTION INFRASTRUCTURE
FOR CONSUMER CONVENIENCE
I THINK THAT THAT CAN BE DONE
AND LOOK AT MODERNIZATION
OPPORTUNITIES AT THE SAME TIME.
I THINK IT'S POSSIBLE TO LOOK AT
NEW WAYS OF COLLECTING
CONTAINERS THAT WE'VE SEEN
HAPPEN IN OTHER STATES THEY'RE
FIFTY PROGRAMS.
AROUND THE WORLD THAT DO
BEVERAGE CONTAINER RECYCLING SO
THERE ARE A LOT OF EXAMPLES A
LOT OF DIFFERENT STYLES OF
RETURNING CONTAINERS. THAT WE
CAN LOOK AT AND LEARN FROM THOSE
AND CHOOSE MORE MODERN AND
BETTER APPROACHES THAT WE HAVE
NOW. AS WE ALSO JUST REBUILD THE
INFRASTRUCTURE IN A VERY
CONVENTIONAL WAY.
THERE'S ALSO STILL THIS ISSUE
OF REVENUE COLLECTION WE WROTE A
REPORT ABOUT THIS IN TWENTY
FOURTEEN AND IT'S ON OUR
WEBSITE.
WE BELIEVE THAT MORE AND MORE
THAN TWO HUNDRED MILLION DOLLARS
PER YEAR.
I'M STILL NEEDS TO BE COLLECTED
FROM THE FREE RIDERS IN THE
SYSTEM.
AND ACT CAL RECYCLE HIS HAS DONE
A LOT OF WORK ON THIS OVER THE
LAST FEW YEARS.
THEY ARE AT TAKING ON NEW
MEASURES TO FIND THE
MANUFACTURERS AND AND
DISTRIBUTORS THAT HAVEN'T BEEN
REGISTERED WITH THE SYSTEM.
AND TEN CAN YOU BE A LOT MORE
SPECIFIC ABOUT WHAT THAT TERM
FREE RIDERS MEANS WHOSE INCLUDED
IN THAT GROUP. SURE AND FREE
RIDERS WOULD BE EITHER. THAT
MANUFACTURERS AND DISTRIBUTORS
WHO EITHER UNDER REPORT THEIR
SALES OF BEVERAGES AND IN ORDER
TO NOT PAY AS MUCH MONEY INTO
THE FUND OR. THOSE THAT DON'T
REGISTERED ALL AND DON'T PAY
ANYTHING AT ALL.
AND SOME OF THAT CAN HAPPEN
JUST BECAUSE THEY ARE UNAWARE OF
THE SYSTEM AND THEY DON'T KNOW
THAT THEY'RE SUPPOSED TO BE YOU
KNOW PAYING THEIR NICKELS AND
THE FUNDING BE REGISTERED WITH
CALPERS CYCLES. THAT'S
ESPECIALLY TRUE WITH NEW
BEVERAGE DISTRIBUTORS.
ONE OF THE THINGS THAT CAL
RECYCLE.
AT COMMENTED ON IN ONE OF THEIR
REPORTS IS THAT THEY'VE BEEN
WORKING WITH THE NEW CRAFT
BREWERS IN THE STATE.
SO A LOT OF THE SMALL COMPANIES
WOULDN'T NECESSARILY KNOW THAT
THEY NEED TO PARTICIPATE IN THE
SYSTEM IT TAKES SOME OUTREACH.
DOES THAT INCLUDE.
A WINE BOTTLES.
NO WORK BECAUSE THEY'RE NOT PART
OF THE PROGRAM.
YEAH.
SO. CAL RECYCLE DID TAKE SOME
STEPS OVER THE LAST FEW YEARS TO
HIRE MORE PEOPLE TO AUDIT MORE.
BACK IN TWO THOUSAND TEN CAL
RECYCLE WAS DOING SIXTY AUDITS
PER YEAR THEN IT DROPPED DOWN TO
AROUND THIRTY OR THIRTY FIVE PER
YEAR. OUT WITH THE ADDITION OF
THESE NEW PEOPLE THEY WERE BACK
UP TO SIXTY THIS LAST YEAR. AND
THAT PAID OFF IN SPADES AND
THERE WERE EIGHTEEN MILLION
DOLLARS AND AUDIT FINDINGS.
IT IS THE ARE THE AUDITING
PROGRAM IS ONE THAT PAYS FOR
ITSELF EVERY YEAR.
AT A MINIMUM EVEN THOUGH THE LOW
YEARS CAL RECYCLE GETS THREE
DOLLARS FOR EVERY DOLLAR THEY
SPEND IN AUDITING.
IT WOULD ALSO SERVICE AS MORE
OF A DETERRENT AS IF PENALTIES
WERE ACTUALLY ASSESS
I MEAN THERE IS ONE COMPANY THAT
PAGE FOURTEEN AND A HALF MILLION
DOLLARS. LAST YEAR.
AND AUDIT FINDINGS BUT THEY
WEREN'T ASSESSED ANY PENALTIES.
IN TERMS OF IMPROVING FINANCIAL
REPORTING AND FORECASTING I WILL
SAY THAT IN THE LAST COUPLE OF
YEARS IT HAS GOTTEN MUCH BETTER
AND DIETS.
THE DEPARTMENT OF FINANCE DID.
A GIVE CAL RECYCLE A CLEAN AUDIT
ON THEIR FINANCIAL STATEMENTS
FOR THE YEAR TWENTY FIFTEEN.
THE PREVIOUS
FIVE YEARS AND THEIR AUDITS THEY
DEPARTMENT FINANCE HAD AUDITED%
CAO RECYCLING FOUND THEIR
FINANCIAL STATEMENTS WERE
MATERIALLY MISSTATED.
SO THERE WAS THERE WAS A LOT OF
WORK TO BE DONE THERE BUT THEY
HAVE RECEIVED NOW A CLEAN AUDIT
AND I'M GLAD AND THAT THAT'S
IMPROVING. AND THEN REDUCING
PAYMENTS FOR CONTAMINATION THAT
SEEMS LIKE LOW HANGING FRUIT.
CAL RECYCLE DID AN ASSESSMENT
AND FOUND THAT TIME OF THE
PAYMENTS THAT THEY MAKE TO THE
CURBSIDE PROGRAM BECAUSE OF
CONTAMINATION THERE LITERALLY
PAYING TEN MILLION DOLLARS A
YEAR FOR TRASH.
IN THOSE PAYMENTS BECAUSE THE
BALES ARE DIRTY AND CONTAIN
MATERIALS THAT ARE NOT PEACHY
WHEN THEY'RE SUPPOSED TO BE P.
ET AND HDPE WHEN THEY'RE
SUPPOSED TO BE AGE TO BE. AND IT
SEEMS LIKE THAT'S.
.
ONE OF THE EASIER PLACES WHERE
THEY COULD A STRIVE TO IMPROVE
THE FINANCIAL OUTCOMES THE
PROGRAM.
THIS SLIDE IS JUST AN EXAMPLE
OF WHAT CONTAMINATION LOOKS LIKE
THIS IS.
.
A REAL FACILITY IN CALIFORNIA ON
THE LEFT TO THOSE OR GLASS
DEPOSIT BOTTLES ON THE RIGHT
EVEN THOUGH IT LOOKS LIKE TRASH
IT'S ACTUALLY GLASS FROM
CURBSIDE PROGRAMS.
A LOT OF THE PLASTIC AND PAPER
HAS FLOATED TO THE TOP IN THAT
PHOTOGRAPH.
SO THERE'S A LOT OF CLASS IN
THERE THAT YOU CAN'T REALLY SEE.
BUT IT SORT OF SHOWS YOU THE
CHALLENGES THAT THE PROCESSORS
HAVE TO GO THROUGH IN ORDER TO
CLEAN UP THAT PILE IN AND GET
CLEAN GLASS OUT OF IT.
ANOTHER THING THAT'S VERY
DIFFERENT ABOUT.
THE CAL RECYCLE PROGRAM IS THAT.
THIS IS THE BIGGEST CURBSIDE
RECYCLING FUNDING PROGRAM IN THE
US.
MORE THAN A HUNDRED TWENTY
MILLION DOLLARS A YEAR IS PAID
TO THE CURBSIDE PROGRAMS.
AND ON A REVENUE PER CONTAINER
BASIS.
THE CURBSIDE PROGRAMS ARE
RECEIVING.
AT AS OF THE.
THE DATE OF THESE IT WOULD BE
LOWER NOW BECAUSE THE SCRAP
VALUES A LOWER BUT IT WAS MORE
THAN TEN CENTS PER CONTAINER.
.
THERE'S NO OTHER DEPOSIT PROGRAM
THAT USES ITS RESOURCES THIS
WAY.
NOW LOOKING TO THE FUTURE.
ACTUALLY ALSO MENTIONED WHEN SHE
WAS QUESTIONED ABOUT WHAT WE
COULD DO TO GET CLOSER TO A
HUNDRED PERCENT.
OREGON HAS RECENTLY INCREASED
THEIR DEPOSIT FROM FIVE CENTS TO
TEN CENTS AND NOT HAS LED TO A
WONDERFUL RESULT. THEY USE TO
HAVE A REDEMPTION RATE JUST A
YEAR AGO THAT SIXTY FOUR
PERCENT.
AND WEDNESDAY INCREASE THE
DEPOSIT VALUE TO TEN CENTS.
NOW THEY'VE GONE OVER EIGHTY
PERCENT THEIR EIGHTY TWO PERCENT
SO ASSERTIVE OVERNIGHT THEY
FLIPPED A SWITCH AND THEY WENT
FROM SIXTY FOUR PERCENT TO
EIGHTY TWO PERCENT.
THEY'VE ALSO EXPANDED THEIR
PROGRAM TO INCLUDE MORE
CONTAINER TYPES.
AND OREGON.
ACTUALLY HAS MORE REDEMPTION
LOCATIONS
THAT CALIFORNIA EVEN THOUGH
THERE POPULATION IS ABOUT THE
TENTH OF OURS.
BECAUSE ALL OF THE STORES TAKE
BACK CONTAINERS.
A QUESTION YEAR IN TERMS OF
CONTAINER TYPE YOU MENTIONED
THAT THEY'VE INCREASED THE A
CONTAINER TYPES.
OF.
THAT'S I ASSUME WITHIN ORGAN
THEY SHIFTED THE NUMBER OF
CONTAINER TYPES HOW DOES THAT
COMPARE TO CALIFORNIA'S PROGRAM.
THEY'VE NOW CAUGHT UP WITH
CALIFORNIA.
THEY WERE NOT ARE ALREADY.
WHERE THEY ARE NOW?
IN TERMS A CONTAINER TYPES YES
YES.
THEY THEY DO NOT ACCEPT WINE AND
SPIRITS IN THEIR PROGRAM OR MILK
JUST LIKE CALIFORNIA.
THEY.
THEY ACTUALLY BUT ANOTHER
IMPORTANT LESSON FROM.
OREGON IS THAT THEY WENT
THROUGH THEIR EXPANSION AND
MODERNIZATION PROCESS IN STAGES
SO TRYING TO DO EVERYTHING AT
ONCE MEANS SORT OF TOO MUCH
CHANGE AT ONE TIME.
THEY FIRST EXPANDED TO WATER
BECAUSE THEY WERE ONLY COVERING
CARBONATED BEVERAGES NOW THAT'S
SOMETHING CALIFORNIA DID LIKE
FIFTEEN YEARS AGO SO THEY
EXPANDED TO WATER. THEN THEY
WENT FOR FIVE CENTS TO TEN CENTS
AND THEN EIGHT MONTHS AFTER THAT
THEY WENT TO.
ALL OF THE OTHER NON CARBONATED
BEVERAGES LIKE TEA AND SPORTS
DRINKS AND ENERGY DRINKS THE
ONES THAT WE ALREADY COVER IN
OUR PROGRAM.
SO TERMS A CONTAINER TYPES AND
BEVERAGE TYPES THEY CAUGHT UP
WITH US.
BUT IN TERMS OF THIS STYLE OF
REDEMPTION THEIR MODERNIZATION
IS A GENERATION AHEAD OF US.
THEY'VE GOT BOTTLE DROP RETURN
CENTERS WHICH ARE INCREDIBLY
NICE AND. REDEMPTION CENTERS
WITH THREE DIFFERENT STYLES OF
RETURN YOU CAN BAG UP YOUR
MATERIALS AND THAT IN A BAG WITH
YOUR OWN TWIST TIE WITH YOUR OWN
BAR CODE AND JUST DROP IT
THROUGH THE SLOT. THEY'RE
INTRODUCING THESE BOTTLE DROP
EXPRESSED SITES AT GROCERY
STORES SITTER AGAIN EXPANDING
THE NUMBER OF SITES WHERE PEOPLE
CAN RETURN COULD CONTAINERS AND
THEY'RE DRAMATICALLY EXPANDING
THE EASE WITH WHICH PEOPLE CAN
RETURN CONTAINERS. NO WAITING IN
LINE AT ALL IF YOU HAVE YOUR
MATERIALS BAG WITH YOUR OWN BAR
CODE ON YOUR BACK.
YOU JUST OPEN THOSE SLOT THAT'S
LIKE A MAILBOX AND DROP YOUR
YOUR BAG OF MATERIALS IN AND
SOMEONE WILL COUNT THEM FOR YOU
LATER AND PUT THE MONEY IN YOUR
ACCOUNT ELECTRONICALLY. AND YOU
CAN EVEN DESIGNATE YOUR REFUND
TO GO TO A CHARITY IF YOU WANT
OTHERWISE YOU CAN AND GET YOUR
MONEY OUT LATER AT A KIOSK AT A
GROCERY STORE. AND THE GROCERY
STORES ARE SO ON BOARD WITH THIS
THAT THEY ACTUALLY GIVE A BONUS
OF TEN TO TWENTY PERCENT IF YOU
REDEEM. IF YOU GET YOUR MONEY
BACK WITHIN THAT GROCERY STORE.
WHAT IS IT THAT IS DRIVING THE
GROCERY STORES TO?
?
LIKE THIS PROGRAM SO MUCH AN
ORGAN.
THEY LOVE THAT THEY'VE GOTTEN
THE LARGE VOLUME RETURNS OUT OF
THE GROCERY STORES AND INTO
THESE BOTTLE DROP REDEMPTION
CENTERS. AND THEY LOVE THAT
THEY'RE GETTING THE FOOT TRAFFIC
AND THE DOLLARS INTO THE STORE
WHEN THEY GET PEOPLE DROPPING
OFF THEIR BAGS IN THE STORE. OR
AT REDEEMING THEIR LITTLE THEIR
TICKET SIR YOU KNOW USING THE
KIOSK TO GET THERE. REDEMPTION
VALUE AND THEN SPENDING THAT IN
THE STORE.
SO IT'S THE IT'S THE FOOT
TRAFFIC.
AND IT'S THE DOLLARS BROUGHT
INTO THE STORES.
THANK YOU YES.
WITH THIS PERHAPS.
WHAT WHAT WOULD IT TAKE TO
MIRROR OREGON'S?
PROCESS PERFORMANCE AND
ORGANIZATION MADE IT SOUNDS TO
ME LIKE OREGON HAS.
BUT A PRETTY GOOD JOB IT IS IT'S
SO DIFFERENT FROM OURS THAT WE
NEED TO RETOOL LARS.
BOTH WITH RESPECT TO POLICY AND.
ALL OF THOSE KINDS OF THINGS.
HOW FAR ARE YOU APART AND CAN WE
GET CLOSER TO WHAT THEY DO SURE
WELL IT CAN BE DONE SO OR IT'S
NOT JUST ORGAN THAT HAS THIS
TYPE OF A DROP SYSTEM? AND THEY
ALSO M. IMPLEMENTED SOME OF
THESE CONCEPTS FIRST IN MAINE
ABOUT FIVE OR SEVEN YEARS AGO
AND THEN THE COMPANY CALLED
CLINK THAT OPERATES THE PROGRAM
IN MAINE ALSO EXPANDED THEIR
OPERATIONS INTO NEW YORK.
AND AND THERE ARE A NUMBER OF
TECHNOLOGY PARTNERS THAT WORK ON
THE PROGRAM IN OREGON.
IN ALL OF THOSE CASES THEY DID
HAVE TO MAKE TWEAKS TO THEIR
LAWS TO ALLOW THESE NEW SYSTEMS
TO OPERATE. TIME BUT IT WASN'T
IN NO INSURMOUNTABLE PROBLEMS TO
GET THROUGH THAT.
AND.
IN ALL OF THOSE CASES THERE'S A
STABLE RELIABLE FUNDING SOURCE
THAT PROVIDES ENOUGH MONEY FOR
THESE PROGRAMS TO OPERATE.
THAT'S A KEY THING THAT WE DON'T
HAVE HERE THOSE COMPANIES THAT
OPERATE THOSE PROGRAMS DON'T
WANT TO OPERATE. IN THE
INCREDIBLY VOLATILE FUNDING AT
CLIMATE THAT WE HAVE HERE. A CAN
YOU IDENTIFY THOSE STREAMS
GENERAL FUND SPECIAL TAX BUT
WHAT'S BUT IT WHAT'S THE
UNIQUENESS OF THE STRAIN THE
UNIQUENESS OF OUR STREAM IS
THAT.
THAT TO PAYMENTS THAT I DESCRIBE
THAT REDEMPTION CENTERS GATT.
ARE BOTH VOLATILE.
IT IN ALL OF THE OTHER PLACES
IT'S A IT'S A DOLLAR AMOUNT PER
CONTAINER SO WHEN YOU WHAT AS I
WOULD IF THEY HAD IS OREGON DO.
THAT THAT IS DIFFERENT WITH
RESPECT TO PAY.
SURE EARLIER WITHOUT REDUCING
THE VOLATILITY IN GETTING THAT
JUST WHAT WHERE DOES IT COME
FROM.
TWO COMPLETELY DIFFERENT THINGS
OUR DESCRIBE OTH NEW YORK AND
OREGON AND I AND I JUST WANNA BE
COMPLETE AND MY ANSWER TO YOU
BECAUSE THEY BOTH WORK BUT THE
REALLY DIFFERENT.
SO IN NEW YORK AND MAINE THE
HANDLING FEE IS A CERTAIN NUMBER
OF CENTS PER CONTAINER. SO THAT
THE PRIVATE COMPANY CAN COME IN
AND THEY KNOW IN ADVANCE I'M
GONNA GET THREE AND A HALF CENTS
PER CONTAINER ON EVERY CONTAINER
I HANDLE. THE FUNDING SOURCE IS
COMING FROM THE BEVERAGE
DISTRIBUTORS DIRECTLY THAT'S
THAT THE NEW YORK AND.
A MAIN PROGRAMS ARE.
INDEPENDENT.
INDIVIDUAL PRODUCER
RESPONSIBILITY PROGRAM SO EVERY
DISTRIBUTOR IN THE STATE IS
RESPONSIBLE FOR PAYING THE
HANDLING FEES TO THE REDEMPTION
CENTERS.
THAT IS DIFFERENT FROM OREGON
WHICH ORGAN MUCH MORE LIKE
CALIFORNIA HAS A CENTRALIZED
FUND.
AND THE CENTRALIZED FUND RUNS
THESE REDEMPTION CENTERS
DIRECTLY IT IS A COOPERATIVE
CALLED THE OREGON BEVERAGE
CONTAINER RECYCLING COOPERATIVE.
AND OB R. C. AND THEY STAFF THE
REDEMPTION CENTERS THEY CITE THE
REDEMPTION CENTERS THEY OWN THEM
THEY.
THEY SEND THE TRUCKS AROUND TO
PICK UP ALL OF THE MATERIAL SO
REALLY DIFFERENT FROM THAT
ASPECT OF IT IS REALLY DIFFERENT
FROM WHAT WE HAVE IN CALIFORNIA.
BUT.
IT IS POSSIBLE TO LAYER
SOMETHING LIKE THAT ON TOP OF
THE CALIFORNIA SYSTEM.
AS LONG AS WE HAVE STABILITY IN
FUNDING AND SUFFICIENT FUNDING
CHURCH TO RUN AN OPERATION LIKE
THAT.
START WRAPPING UP HERE.
MY LAST COUPLE OF SLIDES.
I TOO WANTED TO BRING UP THIS
MARINE DEBRIS ISSUE.
THERE WHO MOST RECENT RESEARCH
IS NOW TELLING US THAT WE HAVE.
EIGHT TIMES
OF PLASTIC AND HEARING THE OCEAN
EVERY SECOND.
AND THIS WHALE WAS CONSTRUCTED
BY AN ARTIST TO ILLUSTRATE THAT
SO IT THAT'S EIGHT TONS OF
PLASTIC THE AMOUNT THAT GOES
INTO THE OCEAN EVERY SECOND.
AND THE OCEANS PROVIDE HALF OF
THE OXYGEN WE BREATHE SO.
THIS REALLY HEAR HIS.
THAT THE HEALTH OF THE OCEANS
REALLY IS A LIFE OR DEATH
SITUATION.
LASTLY AND THIS IS AN ART
PROJECT WE DID LAST
SUMMER ON THE BEACH BECAUSE WE
WANTED TO EMPHASIZE THE ISSUE OF
MARINE DEBRIS AND THE IMPORTANCE
OF THIS PROGRAM.
TO REDUCING LETTER.
IT'S CRITICAL IN REDUCING
LETTER AND IT'S VERY EFFECTIVE
AT REDUCING BEVERAGE CONTAINER
LATER.
THIS.
ART PROJECT IS EIGHT HUNDRED
TWENTY TWO CONTAINERS THAT'S THE
AMOUNT THAT EVERY PERSON IN THE
US CONSUMES EVERY YEAR. AND IT'S
IN JUST THE RIGHT MIX OF ALL THE
DIFFERENT BEVERAGES LIKE SODA
AND WATER AND BEER AND WINE AND
IT'S IN JUST THE RIGHT MIX OF
GLASS BOTTLES VERSUS PLASTIC
PURSES ALUMINUM CANS WE'VE EVEN
GOT SOME POUCHES THEREIN SOME
GABLE TOP CONTAINERS.
I AM BUT IT'S MEANT TO PROVIDE.
.
UP A LITTLE BIT OF CHEER AND
HOPEFULNESS AND IN OTHER WAYS
SORT OF GLOOMY PRESENTATION.
THIS PROGRAM CAN'T BE THAT HARD
TO FIX
THERE ARE FIFTY OTHER EXAMPLES
AROUND THE WORLD OF BEST
PRACTICES THAT WE CAN DRAW UPON
AND I KNOW WE CAN DO THIS.
THANK YOU.
THANK YOU FOR THAT OPTIMISM.
AND.
LET'S MOVE ON TO MR MURRAY'S
PRESENTE.
MORNINGS CHAIR MEMBERS MARK
MURRAY WITH THE ENVIRONMENTAL
GROUP CALIFORNIANS AGAINST
WASTE.
I HAVE OF THIS IS I'VE BEEN
WORKING ON THIS BEVERAGE
CONTAINER RECYCLING PROGRAM
ALMOST FROM THE VERY BEGINNING
THREE DECADES OF.
RECYCLING. AND.
I WANT TO START OFF BY BUT
REALLY THINKING.
.
THE CHAIRMAN THIS COMMITTEE
FATHER CHAIRMAN OF THE BUDGET
COMMITTEE THE STAFF UP FOR THE
INVESTMENT OF TIME AND
THOUGHTFULNESS NOT JUST TODAY
BUT REALLY OVER THE LAST TWENTY
FOUR MONTHS. IN TRYING TO FIX
THE PROBLEMS WITH THE BEVERAGE
CONTAINER RECYCLING PROGRAM. ON
I ACTUALLY I WANNA TALK A LITTLE
BIT ABOUT PUTTING OUT THE FIRE
BUT ALSO ONE TALK A LITTLE BIT
ABOUT THE REDECORATING THAT I
THINK HAS TO.
TAKE PLACE.
BOB I THINK THAT THE PUTTING OUT
THE FIRE SOLUTION THAT THIS
COMMITTEE HAS PUT FORWARD FOR
THE LAST TWO YEARS. REMAINS
EXACTLY THE RIGHT SOLUTION.
THE THE BOTTOM LINE IS THAT.
AS AS TWO HUNDRED DESCRIBED WE
FACED REALLY A PERFECT STORM
SOME OF THAT WAS A RESULT OF.
.
GLOBAL DECLINE IN SCRAP PRICES.
BUT THIS PROGRAM WAS SUPPOSE TO
BE ABLE TO TO RESPOND
DROPS IN SCRAP PRICES BY HAVING.
BEVERAGE MANUFACTURES COVER THAT
NET COST RECYCLING.
ON AND UNFORTUNATELY THE THAT
NINETEEN EIGHTY SIX
BEVERAGE CONTAINER RECYCLING
STATUTORY PROVISIONS.
HAVE NOT BEEN ABLE TO RESPOND AS
QUICKLY AS WE NEED AND SO THE
GAP THAT.
TALKING ABOUT
OF THAT DIFFERENCE BETWEEN.
SCRAP PRICE THAT THE PROGRAM
SOON FOLKS WERE GETTING WAS
DIFFERENT THAN THE SCRAP PRICE
THAT RECYCLING INFRASTRUCTURE
WAS ACTUALLY GETTING.
AND THUS THE INFRASTRUCTURE LOST
YOU KNOW WHAT IS ENDED UP BEING
HUNDREDS OF MILLIONS OF DOLLARS
THAT.
SCRAP INFRASTRUCTURE IN
CALIFORNIA IN TWENTY FOURTEEN AS
RECENTLY AS TWENTY FOURTEEN WAS
WAS REALIZING THREE HUNDRED
MILLION DOLLARS WORTH OF SCRAP
VALUE FOR RECYCLING BEVERAGE
CONTAINERS.
THAT.
THAT INFRASTRUCTURE HAS LOST
ROUGHLY A HUNDRED MILLION
DOLLARS AS OF TWENTY SEVENTEEN
SO HUNDRED MILLION DOLLARS OF
MARKET VALUE HAS BEEN REMOVED
FROM THE SYSTEM.
AND WHILE WE DO HAVE THIS
PROCESSING PAYMENT THIS THIS
PROMISED
TO THE RECYCLING INFRASTRUCTURE
TO COVER THE NET COST RECYCLING
IT IS BEEN SLOW TO COVER THAT
FULL COST OF RECYCLING.
SO.
SLOW TO RESPOND IN IN THE CHANGE
IN SCRAP VALUE.
SECONDLY AGAIN THE NINETEEN
EIGHTY SIX STATUTORY PROVISIONS.
DECIDED THAT TO IN ORDER TO
COVER THE.
AVERAGE COST OF RECYCLING.
THAT
CALLOUSLY BILL WOULD GO OUT AND
SURVEY ON IN THE BIG THEY HAD
GIVE THEMSELVES TWO YEARS
BASICALLY A TWO YEAR TIMEFRAME.
ON
PRIOR TO IMPLEMENTATION TO GO
BACK AND SURVEY COSTS.
BUT THEY'RE NOT REALLY SERVING
COSTS
WITH THEIR SERVING.
EXPENDITURES
AND WHAT HAPPENS WHEN THE
RECYCLING INFRASTRUCTURE IS
RECEIVING LESS MONEY IN THE FORM
OF SCRAP VALUE. THEIR
EXPENDITURES GO DOWN.
AND SO WHAT WE FOUND WITH THE
SCRAP VALUE THAT THE COSTA
RECYCLING SURVEY IS THAT WE'RE
WE'RE KIND OF IN THIS DEATH
SPIRAL BECAUSE.
THE REVENUE WAS GONE DOWN
INFRASTRUCTURE RESPONSE TO THAT
LOST REVENUE BY REDUCING THEIR
EXPENDITURES SO THEN THE NEXT
COST SURVEY.
PEERS
SUGGESTS THAT THE RECYCLING
INFRASTRUCTURE COSTS LESS.
AND SO THE PROBLEM THAT BEGAN IN
TWENTY FOURTEEN AND TWENTY
FIFTEEN HAS GOTTEN WORSE AND
WORSE AND WORSE BECAUSE WE'RE NO
LONGER REIMBURSING RECYCLERS
WITH THE THE COST OF RECYCLING
WERE NOT COVERING THAT COST
RECYCLING. THAT WE WERE BACK IN
TWENTY FOURTEEN FIFTEEN.
THE THIRD COMPLAINT OF THE
PROBLEM BOB.
NOT STATUTORY REGULATORY ARM IN
ANY STATE PROGRAM WHERE WE ASK
THE PRIVATE SECTOR TO UP PROVIDE
A SERVICE TO COVER UP PUBLIC
COST.
WE PROVIDE A REASONABLE
FINANCIAL RETURNS.
AND THE STATUTE WAS SILENT IN
TERMS OF THE MECHANISM FOR DOING
THAT NOW. MANY STATE PROGRAMS
WHETHER IT'S FOR HEALTH CARE.
OR FOR CONSTRUCTION WE PUT OF
FIXED.
REASONABLE FINANCE RETURN
USUALLY IN THE TEN TO FOURTEEN
PERCENT RANGE FOR THE PRIVATE
SECTOR WHEN THEY'RE IMPLEMENTING
THAT.
CALPERS CYCLE IN AGAIN THEIR
NINETEEN EIGHTY SIX WITH THEM
ARM CAME UP WITH THE A
REGULATORY FORMULA THAT SAID
LET'S TAKE A LOOK AT WHAT THE
RECYCLING SECTOR NATIONALLY. IS
REPORTING ON THEIR TAXES.
DETERMINE WHAT THEIR PROFIT WAS
AND WE'RE GONNA CALL THAT THE
REASONABLE FINANCIAL RETURNS.
BOB AND IT ENDS UP THAT LIKE
EVERY OTHER BUSINESS IN THE
ECONOMY THE.
RECYCLING SECTOR TENDS TO
REALLY.
SHOW A LOT OF EXPENSES AND KIND
OF LOW BALL THEIR PROFIT MARGINS
WHEN THEY'RE SUBMITTING THEIR
TAXES AND A RESULT AS A RESULT
THAT REASONABLE FINANCE RETURN
WHEN YOU RELY ON THAT. THAT TAX
DATA SHOWS AN EXTRAORDINARILY
SMALL IN THE IN THE TWO TO
THREE.
PERCENT RANGE AND AS WE SAW AT
THE BEGINNING OF TWENTY
SEVENTEEN. AN ACTUAL NEGATIVE IN
TERMS OF THE RECENT IN IN TERMS
OF THE PROFIT MARGIN FOR THE
RECYCLING SECTOR NOW HAVE
ABSOLUTELY NO DOUBT. THAT.
IN TWENTY SIXTEEN AND TWENTY
SEVENTEEN THE RECYCLING CENTER
STE
SECTOR IN THE UNITED STATES LOST
MONEY. AND THAT WAS THEN.
BY REGULATION THAT HAD TO BE
REFLECTED IN THE REIMBURSEMENT
LEVELS FOR THE COST RECYCLING
SO.
IN A NUTSHELL THREE PROBLEMS TO
STATUTORY AND ONE REGULATORY
THAT WE'VE BEEN TALKING ABOUT
THE STATUTORY PROBLEM FOR TWENTY
FOUR MONTHS NOW. AND AGAIN THIS
COMMITTEE HAS DONE A FABULOUS
JOB OF OFFERING A SOLUTION TO
THAT.
THE REGULATORY PROCESS WE HAVE
INSULTED.
ON THE REGULATORY PROBLEM.
WAS IDENTIFIED BY CAL RECYCLE BY
STAKEHOLDERS TWELVE MONTHS AGO.
AND IN THAT TWELVE MONTHS CAL
RECYCLE HAD THE AUTHORITY AND
THE FLEXIBILITY TO SOLVE THAT
PROBLEM.
SO. IN THE ONE INSTANCE WHEN CAL
RECYCLE HAD THE AUTHORITY TO
ADDRESS THE PROBLEM.
THEY SUCCESSFULLY ADDRESS THE
PROBLEM AND FRANKLY IN THEIR
CREATIVITY TO ADDRESS THE
PROBLEM ON REASONABLE FINANCE
RETURN BY PUTTING A FIXED
NUMBER IN THEIR REPLACING THE
OLD OUTDATED REGULATION. THEY
ALSO TOOK A STEP
IN TERMS OF OUR ADDRESSING
ANOTHER COMPONENT A CRISIS WHICH
WAS THE LOSS OF OF RURAL
RECYCLING INFRASTRUCTURE. BY
RECOGNIZING A HIGHER REASONABLE
FINANCE RETURN.
IN FOR THE UP RULE RECYCLING
CENTERS.
SO YOU KNOW AGAIN WE'VE BEEN
TALKING ABOUT THESE PROBLEMS OF
OF THE LOS OF OF REVENUE TO THE
RECYCLING INFRASTRUCTURE THE
LOSS OF THAT INFRASTRUCTURE IN
TERMS OF REDUCED RECYCLING
CENTERS NOW FOR TWO YEARS. AND I
HAVE TO SAY THAT IN THE ONE
INSTANCE WHERE CAL RECYCLES HAD
THE AUTHORITY TO DO SOMETHING
ABOUT IT.
WE CAME UP WITH A SUCCESSFUL
SOLUTION WHICH IS.
YOU KNOW DOES MOTIVATE ME TO
THINK THAT.
RATHER THAN NECESSARILY TRYING
TO CONSTANTLY BE SCRAMBLING TO
COME UP WITH LEGISLATION.
FIX THE PROBLEM AS THIS
CYCLING. INFRASTRUCTURE IN
CALIFORNIA EVOLVES OVER THE NEXT
THREE DECADES
BUT IT MAY BE TIME TO START
GIVING MORE AUTHORITY AND MORE
DISCRETION TO CAL RECYCLE IN
TERMS OF MOVING FORWARD.
BUT IN TERMS OF YOU KNOW THE
PUTTING OUT THE FIRE WHAT WE
NEED TO DO RIGHT NOW TO PUT OUT
THE FIRE. SOME.
I WOULD REFER TO.
THE ACTION ALERT THAT WE PUT OUT
IN SUPPORT OF THIS COMMITTEE
SOLUTION LAST YEAR AND THE YEAR
BEFORE BECAUSE IT'S THE SAME
SOLUTIONS.
WE NEED TO RETURN RECYCLING
PAYMENTS THE THE THE COST BASIS
FOR THOSE RECYCLING PAYMENTS
TO THE TWENTY FIFTEEN LEVELS
THAT WAS THE LAST TIME WE HAD IT
RIGHT THAT WAS PRIOR TO THE LOSS
OF ALL THESE RECYCLING CENTERS.
NOW THERE NEEDS TO BE A COLA
ADJUSTMENT AND WE NEED TO APPLY
THAT REASONABLE FINANCIAL RETURN
PERCENTAGE TO THAT TWENTY
FIFTEEN COST. BUT BUT THAT'S THE
SOLUTION TO IMPLEMENT THAT COST
BASIS.
A NUMBER TWO WE NEED TO CREATE
SOME FINANCIAL INCENTIVES TO
BRING RECYCLING CENTERS BACK TO
THESE CLOSED UNSERVED A AREAS OF
THE STATE. ON IT'S BEEN POINTED
OUT WE'VE LOST ALMOST A THOUSAND
RECYCLING CENTERS THIRTY EIGHT
PERCENT OF THE INFRASTRUCTURE.
BOB WE DIDN'T LOSE THIRTY EIGHT
PERCENT OF OUR.
RECYCLING VOLUME.
SO I'M NOT ABSOLUTELY CONVINCED
THAT WE NEED TO BRING BACK.
NINE HUNDRED AND FORTY TWO
RECYCLING CENTERS TO THE STATE
OF CALIFORNIA BUT THERE ARE
COMMUNITIES IN THE STATE. THAT
PARTICULARLY RURAL COMMUNITIES
THE STATE THAT.
HAVE NO CONVENIENT RECYCLING
OPPORTUNITY.
THE THE RECYCLING RATES
HAVE GONE DOWN IN THOSE
COMMUNITIES AND AS SUSAN POINTED
OUT THE OTHER COST HAS BEEN.
THAT NOT P. ET NOT ALUMINUM BUT
WITH THE CLOSURE OF THOSE
RECYCLING.
CENTERS GLASS VOLUME HAS SHIFTED
THE CURBSIDE AND HAS BEEN
POINTED OUT.
CURBSIDE IS NOT THE VERY BEST
WAY OF RECYCLING YOUR GLASS
CONTAINERS YOU DON'T GET A
HUNDRED PERCENT RECOVERY OF
THOSE GLASS CONTAINERS.
COST BURDEN FOR THE CURBSIDE
PROGRAM IT'S A LOS RECYCLING FOR
THE STATE OF CALIFORNIA. AND
IT'S A HIGHER COST OF PROCESSING
THAT MATERIAL FOR THE GLASS
MANUFACTURES.
SO BRINGING BACK THAT
INFRASTRUCTURE.
NOT ONLY DOES IT.
FILL THAT PROMISE TO THE
CONSUMER OF OF BRING BACK UP
PROVIDING THEM WITH AN
OPPORTUNITY GET THEIR NICKELS
BACK BUT IT SUSAN POINT OUT IT
REDUCES THE OVERALL COST OF THE
RECYCLING INFRASTRUCTURE. AND IT
MOVES THE MATERIAL TO THE PLACE.
WHERE IT HAD BOMB IT?
CAN HAVE ITS HIGHEST RECYCLING
RATE AT ITS LOWEST COST.
BOB.
ALSO WANNA.
I THINK THAT IT'S IMPORTANT OF
AND MAYBE THIS IS SPEAKING TO US
ASSEMBLY MEMBER TINGS ISSUE IN
TERMS
HOW DO WE GET.
TO ZERO WASTE WHAT WE NEED TO DO
NEXT AND AND MAYBE THIS FITS
INTO THE REDECORATING ASPECT OF
THIS.
BOB BUT I THINK IT'S TIME THAT
WE DID A FABULOUS JOB OF
COLLECTING BEVERAGE CONTAINERS
FOR RECYCLING IN THE STATE.
SEVENTY FIVE PERCENT RECYCLING
IS A GREAT COLLECTION RIGHT.
BUT IF YOU LOOK AT THE AMOUNT OF
PLASTIC IS NOW THE SINGLE
LARGEST CONTAINER IN OUR
BEVERAGE CONTAINER RECYCLING
SYSTEM.
WHEN I FIRST STARTED WORKING IN
THIS PROGRAM PLASTIC CONTAINERS
WERE TWO PERCENT. OF THE MARKET
SHARE NOW THERE IN EXCESS OF
FORTY PERCENT MARKET SHARE THE.
HAVE SURPASSED ALUMINUM CANS.
AND UNLIKE ALUMINUM CANS
PLASTIC CONTAINERS THE SCRAP
VALUE FOR THE PLASTIC CONTAINER
ISN'T SUFFICIENT TO COVER THAT
COST RECYCLING.
SO.
.
WE NEED THAT THE THE MARKET
BASED MECHANISMS IN THIS PROGRAM
TO REQUIRE THE MANUFACTURERS TO
COVER THE FULL COST RECYCLING.
AND RIGHT NOW WE'RE NOT ASKING
THE MANUFACTURES TO PAY ONE
HUNDRED PERCENT OF THAT NET COST
RECYCLING.
WE HAVE SOMEONE REDEEM MONEY
THAT PUMP RIGHT NOW WITH LOW
RECYCLING RATES HE SUFFICIENT TO
COVER THAT NET COST RECYCLING.
IF WE'RE SUCCESSFUL IN GETTING
BACK TO AN EIGHTY EIGHTY FIVE
PERCENT RECYCLING RATE AS WE
MOVE CLOSER TO. A HUNDRED
PERCENT RECYCLING.
THE BEVERAGE MANUFACTURERS ARE
GOING TO HAVE TO PAY A GREATER
SHARE OF THAT KNOCK THAT NET
COST RECYCLING.
AND.
STATUTE LIMITS THE AMOUNT THAT
THE BEVERAGE MANUFACTURERS PAY
ON.
THAT THE LIMITS THAT WERE SET IN
STATUTE A DECADE AGO MADE SENSE
A DECADE AGO WHEN THE RECYCLING
RATE WAS SIXTY FIVE PERCENT. AND
WE HAD UP.
PILE OF UNREDEEMED MONEY BUT WE
KNOW THAT AS THAT RECYCLING RATE
GOES UP THE AMOUNT OF ENERGY
MONEY IS GOING TO COME DOWN. AND
THE BEVERAGE MANUFACTURES GOING
TO HAVE TO PAY A GREATER SHARE
OF THE NET COST RECYCLING. NOW
WE MAY NEVER HAVE TO ASK THEM TO
PAY ONE HUNDRED PERCENT.
OF RECOVERING THEIR CONTAINERS
RETURNING THEIR CONTAINERS TO
THEM.
TO THE GLASS INDUSTRY
TO THE PT INDUSTRY BUT WE MAY
NEED TO ASK THEM TO PAY MORE
THAN THE ELEVEN PERCENT. THAT
THEY'RE PAYING RIGHT NOW.
.
FINALLY IN YOU KNOW KIND OF
ANOTHER PIECE OF THIS IS BOB.
THAT.
IN THE CASE OF.
A GLASS CONTAINER.
A GLASS INDUSTRY IS TAKING BACK
AND CONSUMING FIFTY PERCENT OF
THE GLASS CONTAINERS THAT ARE
SOLD SO THE GLASS CONTAINERS
THEIR MANUFACTURING CALIFORNIA
ARE MADE WITH FIFTY PERCENT
RECYCLED CONTENT.
WHEN THE PLASTIC SIDE THE STORY
IS MUCH DIFFERENT.
WE'VE SEEN SOME FABULOUS PRESS
RELEASES FROM BEVERAGE COMPANIES
TALKING ABOUT THEIR DESIRE TO
INCREASE THEIR USE OF RECYCLED
CONTENT IN CONTAINERS AND I
THINK THAT'S GREAT BUT I DON'T
THINK WE CAN RELY. ON THE
VOLUNTARY EFFORTS OF THE
BEVERAGE INDUSTRY.
I SAW.
OVER THE COURSE OF THE LAST
THREE YEARS
WHEN THE SCRAP PRICE WHEN WHEN
CALIFORNIA OTHER JURISDICTIONS
MOVED AWAY FROM PETROLEUM FOR
TRANSPORTATION FOR ENERGY NEEDS.
THAT REDUCED.
COST
OF PETROLEUM.
TRONG LIAM NATURAL GAS THE WRONG
GREETINGS TO MAKE YOUR PLASTIC
CONTAINERS.
THE PLASTICS INDUSTRY THE BOTTLE
MAKERS THE BEVERAGE INDUSTRY.
REDUCE THEIR COMMITMENT A BUYING
RECYCLED BECAUSE THEY COULDN'T
PASS UP THE EXTRAORDINARY LOW
PRICES FOR THE VIRGIN PLASTIC SO
IN ORDER TO ENSURE. THAT THE
BEVERAGE INDUSTRY IS ALWAYS
BUYING BACK THAT PLASTIC CLOSING
THE LOOP INCORPORATED INTO THEIR
CONTAINERS WE'VE GOTTA HAVE
MINIMUM RECYCLE CONTENT ACROSS
THE BOARD WE HAVE MINIMUM
CONTENT. FOR GLASS CONTAINERS IN
THE INDUSTRY IS EXCEEDED THOSE
NUMBERS WE NEED TO HAVE MINIMUM
RECYCLE CONTENT MANDATES FOR ALL
BEVERAGE CONTAINERS.
UNFORTUNATELY THERE'S PEACE
LEGISLATION THIS YEAR THAT THAT
WOULD DO EXACTLY THAT SO ON
THAT'S GOTTA BE PART OF THE
SOLUTION UNDER OF THAT FITS INTO
THEPUTTING OUT THE FIRE OR IT
FITS INTO THE REDECORATING. BUT
THAT'S GOTTA BE AN ELEMENT OF
THE OF THE SOLUTION.
AGAIN PART OF THE REDECORATING
CERTAINLY MAY INCLUDE THE FACT
THAT.
AGAIN SINCE NINETEEN EIGHTY SIX
WE'VE LOOKED AT THE COST TO
RECYCLING AND WE'VE WE'VE
APPLIED THE SAME STATEWIDE
AVERAGE COST RECYCLING TO EVERY
RECYCLING BUSINESS IN THE STATE
OF CALIFORNIA.
AND WHAT WE'VE RECOGNIZED OVER
THE LAST SEVERAL YEARS IS THAT.
DIFFERENT BUSINESSES DIFFERENT
RECYCLING INFRASTRUCTURE HAVE
DIFFERENT COSTS BASED ON THEIR
VOLUME AND BASED ON THEIR THEIR
DISTANCE FROM MARKETS.
SO WE MADE NEED TO WE HAVE TO
AMEND THE STATUTE TO EITHER. SET
A DIFFERENTIAL A TIERED.
PROCESSING PAYMENT HANDLING FEE
SYSTEM TO SUPPORT THE DIFFERENT
RECYCLING INFRASTRUCTURES BASED
ON THEIR ACTUAL COSTS OR WE NEED
TO PROVIDE THAT DISCRETION TO
CAL RECYCLE TO IMPLEMENT IT
THEMSELVES.
SO. WE DON'T NEED OVER PAY FOR
RECYCLING BUT WE NEED TO MAKE
SURE THAT WE'RE PAYING THE RIGHT
AMOUNT TO COVER THE COST OF
RECYCLING THOSE CONTAINERS.
WE NEED TO MAKE SURE THAT THE
MANUFACTURERS ARE NOT ONLY
RESPONSIBLE FOR COVERING THAT
COST RECYCLING BUT ALSO FOR
USING THE MATERIAL THAT WE
COLLECT FOR RECYCLING IN
CALIFORNIA.
AND FINALLY I THINK AGAIN I
THINK THAT OF.
THE SITUATION IN THE WORLD
RECYCLING IS CONSTANTLY CHANGING
AND IT MAY NO LONGER MAKE SENSE.
DICTATE ALL OF THE PROVISIONS OF
THIS LAW IN STATUTE WE MAY NEED
TO LOOK TO INCREASING THE
AUTHORITY. THE DISCRETION
RESPONSIBILITY FOR CALPERS
CYCLE.
THANK FOR THANK YOU.
AT AS USUAL ON IT DETAIL.
AND I APPRECIATE TO YOUR REPORT.
WHAT DO YOU THINK ABOUT SOME OF
THE INNOVATIVE STRATEGIES THAT
WE HEARD ABOUT HOW THEY'RE
TAKING PLACE IN OREGON OTHER
PLACES?
YOU KNOW SO.
IT IT I THINK THAT IT'S
IMPORTANT RECOGNIZE IT.
ORGAN IS A SMALLER STATE THERE
TWENTY FOUR HUNDRED I THINK WAS
POINT ABOUT SOME TWENTY FOUR
HUNDRED. GROCERY STORES
PROVIDING REDEMPTION.
TECHNICALLY WE HAVE MORE THAN
THAT IN CALIFORNIA WE HAVE
THIRTY FOUR HUNDRED GROCERY
STORES IN THE STATE OF
CALIFORNIA THAT ARE TECHNICALLY
RESPONSIBLE FOR TAKING.
CONTAINERS BACK INSIDE THE
STORE.
NOT SURE WHAT THEY'RE DRINKING
IN OREGON VERSES WHAT THEY'RE
DRINKING CALIFORNIA BUT THE
GROCERY STORES ARE NOT EXCITED
ABOUT THAT RECYCLING
OPPORTUNITY.
AND THEY'RE NOT PROMOTING THAT
RECYCLING OPPORTUNITY.
SO.
THE OREGON LAW HAS ALWAYS BEEN
BASED ON BRINGING CONTAINERS
BACK INSIDE THE STORE. FARM AND
AND IT WOULD BE VERY ALL
CHALLENGES AS A GREAT DEAL OF
RESISTANCE TO THAT. BY THE A
GROCER NEAR IT AND AND SO THERE
YOU HAVE TO DECIDE WHETHER IN
REACH IN REBOOTING THIS PROGRAM.
DO WE WANT TO PUT GREATER
RESPONSIBILITY ON THE GROCERY
STORES IN THE STATE OF
CALIFORNIA THE SOME TWENTY
THOUSAND. ON.
DEALERS THAT DISTRIBUTE BEVERAGE
CONTAINERS THAT SELL TO
CONSUMERS BEVERAGE CONTAINERS
WERE SITE IN THE STATE OF
CALIFORNIA. OR DO WE WANT TO
FOCUS.
OUR RECYCLING DOLLARS ON
CREATING FULL SERVICE RECYCLING
OPPORTUNITIES IN THOSE PLACES
THAT WE NEED IT AGAIN IT'S
TELLING THAT WITH THE CLOSURE OF
RECYCLING CENTERS.
BOB WE DIDN'T LOSE THIRTY EIGHT
PERCENT OF THE RECYCLING VOLUME
OF.
ITS ITS SIGNIFICANCE AND IT'S
MEANINGFUL THAT WE DID LOSE YOU
KNOW FIVE SIX SEVEN EIGHT
PERCENT OF OUR BEVERAGE
CONTAINER RECYCLING AT A TIME
WHEN WE WANT TO INCREASE THAT
RECYCLING RATE. UP TO EIGHTY
FIVE PERCENT NINETY PERCENT
RECYCLING SO WE NEED MORE
RECYCLING INFRASTRUCTURE. MOM
BUT THE CONSUMER HAS IN
CALIFORNIA THE CALIFORNIA
CONSUMER HAS DEMONSTRATED A
WILLINGNESS AND ABILITY TO.
USE A FULL SERVICE RECYCLING
CENTER AS OPPOSED TO
TAKING CONTAINERS BACK INSIDE
THE STORE.
BUT I WONDER IF THAT ISN'T OUT
OF NECESSITY AS OPPOSED TO A
CONVENIENCE AND IF WE WERE TO.
AND MAKE IT MORE CONVENIENT FOR
THE CONSUMER WOULD WE NOT TESSA
AND THIS IS REALLY. I THINK A
QUESTION TO PONDER NOT
NECESSARILY ANSWER TODAY. BUT.
WOULD WE BE ABLE TO GET CLOSER
TO THAT DOT NET ZERO RECYCLING
GO.
I THINK THAT MAKING IT MORE
CONVENIENT BOMB IS ABSOLUTELY.
BUT YOU KNOW PART OF THE
SOLUTION I WOULD LOVE TO HAPPEN
I'LL HAVE AN OPPORTUNITY.
TO ARE TAKE MY BAG OF
RECYCLABLES INSTEAD OF STANDING
IN LINE WHICH I NOW HAVE TO DO
ONCE A MONTH WHEN I TAKE MY
RECYCLING CENTER TO THE ONE
REMAINING. RECYCLING CENTER IN
MY COMMUNITY THAT I'VE GOT TO
STAND IN LINE AND I'M STANDING
IN LINE WITH LOTS OF OTHER
SOCCER MOMS AND DADS AND FOLKS
THAT ARE. EITHER THE REDEEMING
IT FOR CASH OR THE REDEEMING IT
FOR A CHURCH OR A CLUB OR A
SOCCER TEAM.
AND WE'RE ALL STANDING IN LINE
TO GET OUR FIFTEEN TWENTY THIRTY
DOLLARS WORTH OF OF REDEMPTION
VALUE AND. I'M SURE IT'S COST ME
MORE THAN TWENTY THIRTY DOLLARS
TO BE STANDING IN LINE SO MAKING
IT MORE CONVENIENT HAVING A
RECYCLING INFRASTRUCTURE THAT'S
ABLE TO THAT'S THAT'S MORE
CONVENIENT. NOT NECESSARILY
BASED ON ITS PHYSICAL LOCATION
BUT IN TERMS OF THAT OPPORTUNITY
THAT TRANSACTION AT THE
RECYCLING CENTER SO I'M IN AND
OUT. I THINK THAT YOU THAT WOULD
BE THAT THAT ELEMENT OF
CONVENIENCE IS SOMETHING THAT WE
CAN WE SHOULD BE EXPLORING. ON
IT IS CERTAINLY A PROBLEM.
THAT WE HAVE FOCUSED IN THE
STATE OF CALIFORNIA WE FOCUS
THIS THIS BUYBACK RECYCLING
OPPORTUNITY TO SO FEW LOCATIONS
AND IT IS CREATING THE THE THE
HANDFUL OF RECYCLING LOCATIONS
THAT REMAIN. IN GROCERY STORE
PARKING LOTS ARE PUTTING A LOT
OF PRESSURE ON THOSE LOCATIONS
SO. HAVING MORE PHYSICAL
LOCATIONS WILL RELIEVE SOME OF
THE PRESSURE AND SOME OF THE
ANGST IN NEIGHBORHOODS ABOUT
HAVING. LONG LINES OF PEOPLE
LOUD NOISES FROM THAT RECYCLING
INFRASTRUCTURE SO YOU KNOW THERE
ARE.
THERE ARE OTHER IMPACTS BESIDES
EFFICIENCY THAT WE NEED TO BE
EVALUATING.
THANK YOU MISTER PATTERSON.
WITH RESPECT TO A.
CONVENIENCE.
.
ISN'T THE MOST CONVENIENT WAY
THAT PEOPLE ARE.
DEALING WITH THEIR RECYCLABLES
IS TO SEPARATE AT THE CURB AND
SENATE TO THE WAY CENTER.
IT IS THAT I I YOU SUGGESTING
ANYTHING THAT WOULD UPSET ME
JUST TELL YOU WHAT THE DILEMMA
IS HERE.
.
AYE WAS MY FRESNO FOR EIGHT
YEARS WE HAVE A SIGNIFICANTLY
HIGH RECYCLING.
LEVEL BUT. IT TOOK US
A PERIOD OF TIME AND SOME VERY
HARD WORK.
WE DESERVE WE DESIGNED AND
UTILIZED THIS THAT THREE CAN
SEPARATION IT IS.
UNIFORM ONLY USED.
AND I WOULD ARGUE THAT THAT IS
THE MOST. AND THAT GOT US.
ABOVE THE NUMBERS BECAUSE WE
WERE GETTING THREATEN WITH TEN
THOUSAND DOLLAR A DAY FINE.
SO WE DID WE DESIGNED A VERY
CONVENIENT WAY OF DOING IT ARE
YOU SUGGESTING IN ANY WAY ON
DOING THAT CONVENE.
ABSOLUTELY NOT
ADJUSTING THAT WE UNDO.
.
A CURBSIDE RECYCLING
INFRASTRUCTURE IN FACT I WOULD
IN IN RESTATING ONE OF THE THE
POINTS THAT SUSAN MADE OF THE
FACT THAT THIS SYSTEM THIS
CALIFORNIA REDEMPTION SYSTEMS.
EXPANDS IN EXCESS OF A HUNDRED
MILLION DOLLARS IN SUPPORTING
THAT CURBSIDE RECYCLING
INFRASTRUCTURE I THINK THAT'S A
GOOD THING SO I THINK IT'S
IMPORTANT THAT.
THE CALIFORNIA PROGRAM DOESN'T
PLAY FAVORITES IN TERMS OF
RECYCLING INFRASTRUCTURE BUT IN
FACT SUPPORTS THE CURBSIDE
RECYCLING INTEREST.
THAT'S SAID.
WE NOW KNOW THAT THE CURBSIDE
RECYCLING INFRASTRUCTURE.
CRAPPIE SYSTEM FOR RECYCLING
GLASS CONTAINERS.
IT'S EXPENSIVE FOR THE CURBSIDE
PROGRAM.
EXPENSIVE FOR THE THE BEVERAGE
MANUFACTURERS THE GLASS
MANUFACTURES THE DON'T WANT THAT
CLASS THAT'S COMING FROM THE
CURBSIDE PROGRAM.
PICTURE THAT DATA SUSAN SHOWED
OF THE DIVESTITURE I I'VE BEEN
TO ALL THOSE LOCATIONS I
UNDERSTAND THE COMPLEXITIES IN
ALL OF THIS.
BUT.
WHAT SO FINISHED FINISH YOUR
YOUR COMMENT WHAT WHAT SO I
POINT IS THAT WE HAVE THE BEST
OF BOTH WORLDS RIGHT NOW?
HAVE A RECYCLING INCENTIVE THAT
PULLS THE MAJORITY OF CONTAINERS
INTO A A VERY COST EFFECTIVE AND
EFFICIENT BUYBACK RECYCLING
CYST.
FOR THOSE CONSUMERS THAT DON'T
WANT TO AVAIL THEMSELVES OF THAT
SYSTEM THE CONTINUE TO HAVE
CURBSIDE RECYCLING WHICH IS
SUPPORTED BY UNLIKE ANY OTHER
PROGRAM IN THE COUNTRY WHICH IS
SUPPORTED BY THE PROGRAM SO WE
HAVE THE BEST OF BOTH WORLDS. I
DON'T THINK IT'S A CHOICE WE
DON'T HAVE
YOU ASKED THAT THE WONDERFUL
FOLKS IN FRESNO HOW WOULD THEY
WITH. HOW THEY WOULD FEEL IF
THEY DIDN'T HAVE TO INCLUDE
GLASS IN THEIR CURB SIDE
RECYCLING PROGRAM AND I THINK
THE ANSWER'S GONNA BE? YOU KNOW
IF THERE'S SOME OTHER PLACE
COULD GO THAT WOULD BE IDEAL.
YEAH AGAIN I THINK THE THE BIG
THINK BIG PROBABLY WITH THE WITH
THE. ART LARGER BOURBON AREAS OF
LIKE FRESNO IS WE GET WEEK WE
GOT PLANNING ON ONE SIDE WHICH
BASICALLY SAYS WE'RE GONNA FIND
A TEN THOUSAND DOLLARS WE ROLL
UP OUR SLEEVES WE GET THE JOB
DONE. WE GET THE RECYCLING WAY
WAY DOWN.
AND AND AND WE WE WERE OUT FROM
UNDERNEATH THE THREAT OF THE
STATE WHICH WHICH WAS REAL.
AND THEN.
SO I'M HEARING IS YEAH IT'S
CONVENIENT BUT IT'S
WHAT TOO MUCH IN DIRTY.
YOU KNOW I WOULD MAKE SURE THAT
YOU'RE HEARING ME.
POCKET I'M HEARING YOU ON THIS
I LOVE MY CURB SIDE RECYCLING
PROGRAM IT IS A PHENOMENAL
PROGRAM FOR RECYCLING THE BULK
OF THE RECYCLABLES THAT WE
GENERATE OUR HOUSEHOLD WHICH IS
MOSTLY MIXED WASTE PAPER.
A BUNCH A PLASTIC PACKAGING
IT'S.
STEEL CANS TIN CANS ON IT IS A
GREAT SYSTEM THAT IS IT IT'S
EXTRAORDINARILY CONVENIENCE.
IT IS NOT THE MOST COST
EFFECTIVE SYSTEM WHAT IT
BEACHWOOD SYSTEM FOR WHAT I
FOURTH WHAT A FOURTH SEPARATION
WORK.
YOU DON'T I I I THINK THAT SOME
JURISDICTIONS.
ACCORDING SEATTLE HAVE HAD THEY
HAD OF A POINT IN TIME WHERE
THEY HAD LITERALLY A SEPARATE
BIN FOR THE GLASS.
.
SO THERE I THINK THAT THAT YOU
KNOW THAT'S WORTH EXPLORING.
AGAIN I THINK THAT FRESNO HAS
DONE A FABULOUS JOB IN TERMS OF
IMPLEMENTING THEIR CURBSIDE
RECYCLING PROGRAM.
BOB I THINK THAT.
FRESNO IS AS
POINT AT THIS MOMENT IS MAKING A
MISTAKE.
BY CLOSING BUYBACK RECYCLING
CENTERS IN THE CITY OF FRESNO
I'M AWARE I'M AWARE OF THAT AND
I THINK THEY'RE GOING TO BE
INCREASING THEIR COSTS OF
RECYCLING AT THE CURBSIDE
PROGRAM. THEIR RATE PAYERS GOING
TO HAVE TO PAY MORE BECAUSE
THEY'RE TO GET STOCK MIGHT WITH
AYE WORKABLE YES BUT. UNDERSTAND
COMPLEX IS BUT.
THAT THAT THAT THE POLITICAL
REALITY IN FRESNO IS YOU GOT A
LOT OF THESE.
A NUMBER OF THE SITES THAT QUITE
FRANKLY ARE GATHERED THEIR TRASH
RECYCLERS BUT THEY'RE ALSO TRASH
COLLECTORS.
THAT IN THOSE NEIGHBORHOODS
PEOPLE DON'T LIKE IT SO YOU
TALKING ABOUT CONVENIENCE AND
WE'RE TALKING ABOUT DOING IT IN
A WAY. THAT IS COST EFFECTIVE
AND I WHAT I WOULD LIKE TO BE
ABLE TO.
SOLVE THE.
CONVENIENCE ISSUE AND SOLVE THE.
THE GLASS ISSUE WITH WITH BUT
PERHAPS SOME OTHERS OTHER
SUGGESTION BRACKET IN MY OWN
CITY I I I THINK WE CARE WEEK WE
COULD DO SOME GOOD THINGS IF. IN
FACT THE PROCESS IS ABBOTT DON'T
LIKE IT BEVERAGE FOLKS DON'T
LIKE IT. OUT WE HAVE AN INTEREST
IN WE HAVE ONE OF THE MOST.
CITIES ACROSS THE STATE HAVE ONE
OF THE MOST EFFECTIVE.
WAYS OF SEPARATING AND
CONVENIENT TO. IT IF PEOPLE
REALLY WANT TO GO BACK AND GET
THEIR FIVE SENSE THE GOING BACK
AND GET THEIR FIVE CENTS.
THEY ARE SAYING IT IS MUCH MORE
CONVENIENT FOR ME TO PUT IT IN
TO THE BIN. EVERYBODY ON MY
BLOCK AND A WHOLE BUNCH OF FOLKS
IN FRESNO SEE THIS AS CONVENIENT
AND AS RECYCLING IN THE KIND OF
PAT THEMSELVES ON THE BACK FOR.
THAT SEPARATION. I'M I'M WILLING
TO LOOK AT HOW WE WE TWEAK A
SYSTEM
WITHOUT THROWING OUT THE
CONVENIENCE AND AND THE.
DEMONSTRABLY EFFECTIVE UP
REDUCTION AND WHAT WE SEND TO
THE WAIST.
ASSEMBLY.
I THINK.
I.
QUICKLY AGREE RIGHT THE POINT
YOU JUST MAKE IT.
GOOD AND ON THAT NOTE YES ALL
THANK YOU BOTH FOR YOUR
PRESENTATIONS.
AND THE.
I THINK OF THE CONVERSATION
REALLY POINTS OUT JUST HOW
COMPLEX
S. A OF THE SENATE THIS WHOLE
SYSTEM IS AND HOW DIFFICULT IT
IS. TO AT AND IT SHOWS HOW WHY
IT'S BEEN SO DIFFICULT TO A GET
TO A RESOLUTION AND ON THAT NOTE
WE WILL CALL UP OUR PANEL TO.
.
I IT WE HAVE PHOTO WITH A SET
FROM.
THE OF THE.
DEPARTMENT OF RESOURCES
RECYCLING IN RECOVERY.
HOWARD LEVINSON CAN DO RUSSIA
AND ZOE HELLER.
GOOD MORNING MISTER CHAIR
COMMITTEE MORNING.
FIRST OFF.
MY SINCERE APOLOGIES UP FOR FOR
BEING LATE THERE WAS SOME
MISCOMMUNICATION ON THE THE
START TIME. OF FOR THIS MORNING
IN THIRTEEN YEARS I'VE NEVER
BEEN LATE TO A COMMITTEE SO WELL
AS A FIRST TIME FOR EVERYTHING
NO DISRESPECT INTENDED WE FORGED
AHEAD AND.
WERE ANXIOUS TO HEAR YOUR
REPORT NOW VERY GOOD.
WHITNEY'S AND SO WE HELLER WHO
IS THE ASSISTANT DIRECTOR FOR
POLICY.
SO THANK YOU VERY MUCH FOR YOUR
TIME AND WE'RE VERY HAPPY TO BE
HERE REPRESENTING THE SEVEN
HUNDRED FORTY PROFESSIONAL WOMEN
AND MEN OF COLOR RECYCLE.
DIRECTOR SMITH LINE SINCE HIS
REGRETS HE'S A VERY MUCH UNDER
THE WEATHER WAS UNABLE TO BE
HERE TODAY SO.
WITHOUT AYE AS YOU.
CHAIRMAN BLOOM AND AND ASSEMBLY
MEMBER TAKE IT REQUESTED WE'RE
GOING TO DISCUSS THE BEVERAGE
CONTAINER RECYCLING PROGRAM. IN
THE CONTEXT
A BROADER RECYCLING CHALLENGES
AND TRENDS NOT JUST THE CONTEXT
OF THE PROGRAM BUT BUT SOME
OTHER PHENOMENON THAT ARE
HAPPENING IN AND THAT THE
COMMITTEE. SHOULD BE AWARE.
A LOT HAS EVOLVED AND CHANGED
SINCE THE LEGISLATURE DISCUSSED
PROGRAM LAST YEAR AND SOME OF
THE CHALLENGES DISCUSSED FOR THE
PAST SEVERAL YEARS PROCESS. BUT
WILL PROVIDE AN UPDATE ON THE
STATUS
THE PROGRAM AND DISCUSS SOME
POTENTIAL DIRECTIONS
NUTRITIONIST MISS HELLO AS A
CIVIL DISCUSS SOME NEW EMERGING
CHALLENGES. NOT JUST FOR OUR
PROGRAM BUT FOR RECYCLING OTHER
RECYCLABLE MATERIALS AND
COMMODITIES.
AS YOU'VE HEARD THIS MORNING
FROM.
OTHER PRESENTERS.
THERE ARE EMERGING CHALLENGES
REPLYING CALIFORNIA TO TAKE A
STEP BACK AND EVALUATE WHAT
RECYCLING MEANS AND HOW BEST WE
CHIEF RECYCLING. RECYCLING GOALS
WITH POLICIES THAT GO BEYOND.
COLLECTION AND THEN WILL
CONCLUDE BY DISCUSSING HOW THESE
EMERGING CHALLENGES
DEMONSTRATE THE VALUE OF THE
PROGRAM BEVERAGE CONTAINER
RECYCLING PROGRAM BUT
UNDERSCORED THE NEED FOR CHANGE.
FOCUS WITHIN THAT PROGRAM AS
WELL AS OTHER RECYCLING PROGRAM.
SO AS THE COMMITTEE UNDERSTANDS
ALREADY AND YOU'VE HEARD THERE
ARE ECONOMIC REALITIES THAT CAN
INFLUENCE OR OTHERWISE AFFECT
THE PROGRAM THESE FACTORS
INCLUDE BEVERAGE SALES MATERIALS
MARKETS. FOR EXAMPLE TRACKING
THE DROP IN OIL PRICES WHICH
WHICH YOU'VE HEARD.
IN TWENTY SIXTEEN PRICES FOR
VIRGIN PLASTIC FELL DRAMATICALLY
AS A RESULT RECYCLE PLASTIC
SCRAP FROM RECYCLING CENTERS WAS
NOT AS COMPETITIVE ON THE MARKET
THIS CREATED.
BUT SERIOUS FINANCIAL CHALLENGE
FOR RECYCLERS AND OPERATORS
KNOWS NOTED THE PROGRAM SUPPORTS
THESE RECYCLING CENTERS BY
PAYING SUBSIDIES THE GENERALLY
SEEK TO COVER THE DIFFERENCE.
BETWEEN RECYCLING CENTER PROFITS
FROM SALES SCRAP. AND THE COST
OF OPERATIONS HOWEVER THE
PROGRAM STATUTES ARE VERY
PRESCRIPTIVE AND YOU'VE HEARD
THAT SEVERAL TIMES THIS MORNING.
IN HOW AND WHEN CAL RECYCLE CAN
ADJUST PAYMENTS
TO RECYCLERS UNFORTUNATELY IN
TWENTY SIXTEEN THE PAYMENT
FORMULAS AS MR MURRAY ALLUDED TO
PRESCRIBE IN STATUTE REGULATION
RESULTED IN REDUCE SUBSIDIES
COMPARED TO TWENTY FIFTEEN.
JUSTICE RECYCLERS WERE ALSO
RECEIVING LESS FOR RECYCLED
SCRAP PLASTIC ON THE MARKET.
THE STATUTE ALSO REQUIRES THAT A
RECYCLING CENTER BE LOCATED IN
EACH CONVENIENCE ON THIS ZONE AS
AS YOU'VE NO DOUBT HEARD IS
DEFINED AS A ONE HALF MILE FROM
A SUPERMARKET. WERE THREE MILES
WITHIN A PEARL AREAS.
TO MR MURRAY'S OTHER POINT WHILE
HIGHER VOLUME RECYCLING CENTERS
WERE AT A SCALE THAT COULD
WHETHER THE IMPACT OF THE SCRUB
MARKET.
AND THE DROP IN PROGRAM
SUBSIDIES MANY OF THE LOWER
VOLUME SITES INCLUDING MANY WERE
REAL RECYCLING CENTERS COULD NOT
AND IT IS ACCURATE TO SAY THAT
THERE ARE PARTS OF THE STATE.
RURAL AREAS AND MANY OF THEM IN
THE NORTH OF THE STATE THAT ARE
WITHOUT A CONVENE A RECYCLING
CENTER SOME AS MANY AS. TEN
TWENTY MILES AWAY CLEARLY NOT
NOT CONVENIENT AND AND WHAT THE
SPIRIT OF THE NINETEEN EIGHTY
SIX STATUTE HAD INTENDED.
THE STATE EXPERIENCED A NET LOSS
OF THREE HUNDRED FIFTY RECYCLING
CENTERS IN TWENTY SIXTEEN.
AND IN THE EVENT.
OF RECYCLING CENTER CLOSURE AS
THE COMMITTEE. HAS HAD LIKELY
HEARD.
ZONE CAN BECOME UNSERVED
COMPELLING DEALERS WITHIN THAT
ZONE TO EITHER REDEEM THE
BEVERAGE CONTAINERS AND STORE OR
PAY A HUNDRED DOLLAR PER DAY IN
LIEU FEE.
THE CLOSURE OF AT CREATED THREE
HUNDRED AND FORTY FIVE UNSERVED
ZONES YIELDING EIGHT HUNDRED AND
SIXTY FIVE UNSERVED ZONES IN THE
STATE AND LAW STATUTE DEFINES
CONVENIENCE SOUNDS.
AS YOU'VE HEARD THE LAW DOES NOT
ALLOW US TO CONSIDER RESPOND
ALWAYS TO UNFORESEEN
CIRCUMSTANCESOR RECONSIDERATION.
OF BASED ON NEW INFORMATION
TRENDS AND CHANGING HABITS.
WE'VE NOTIFIED.
AND WE NOTIFIED OVER THREE
THOUSAND GROCERS WITH THE NEW
WITHIN THE NEWLY AND SERVES ON
SECOND REQUIREMENT TO BRIGHTEN
STORE TAKE BACK.
FOR PAID THE IN LIEU FEE.
TO DATE
DEPARTMENT TOTAL.
FROM PAYMENTS REGRESSORS IS
ABOUT TWELVE MILLION DOLLARS
ANNUALLY.
AND CURRENTLY HUNDRED NINE
GROCERS ARE OPTING TO PAY THE
FEE WHILE AN ADDITIONAL THIRTY
FOUR HUNDRED.
I WILL PROVIDE IN STORE
CONTAINER TAKE BACK.
TO TOUCH ON THE RECYCLING RATE
FOR JUST A MOMENT ONE OF OUR
CRITICAL METRICS.
OTHER RECYCLING RATE HAS
DECLINED AS YOU'VE HEARD BUT WE
WANNA BE CAREFUL TO EXAMINE THE
MANY FACTORS INFLUENCING THIS
CHANGE. OUR MOST RECENT BI
ANNUAL REPORT SHOWS EIGHTEEN
POINT ONE BILLION CONTAINERS
RETURNED IN FISCAL YEAR TWENTY
SIX SEVENTEEN.
TWENTY TWENTY SIXTEEN SEVENTY.
THIS IS A TWO POINT EIGHT
PERCENT DECREASE FROM THE
PREVIOUS YEAR ONE FACTOR IS THE
CLOSURE OF HUNDREDS OF RECYCLING
CENTERS AND I DON'T INTEND TO
MINIMIZE THE IMPACT OF THAT
WERE.
OF THOSE CLOSURES A WITH THESE
AND SUBSEQUENT COMMENTS HERE
THAT IT HAS IMPACTED CONSUMERS.
BUT THE REDUCTION IN THE NUMBER
OF RETURNS REFLECTS A NUMBER OF
OTHER PROGRAMMATIC CHANGES THAT
WE'VE ADOPTED OVER THE LAST
SEVERAL YEARS THESE INCLUDE
ELIMINATING THE COMMINGLED RATE
AT RECYCLING CENTERS THAT IS.
PAYING ONLY FOR C. R. V.
MATERIAL WHEN CONSUMERS BRING
THAT TO A RECYCLING CENTER.
WE'VE ESTABLISHED RECORDING
REPORTING REQUIREMENTS FOR THOSE
FOR BRINGING EMPTY BEEN BEVERAGE
CONTAINERS INTO CALIFORNIA VIA.
CALIFORNIA APARTMENT FOOD AND
AGRICULTURE'S BORDER STATIONS
THIS IS OFTEN REFERRED TO AS
IMPORTED MATERIALS REPORTING.
AND WE'RE ANALYZING THOSE
REPORTS TO NOTE TRENDS AND AND
TO RESPOND ACCORDINGLY.
WE'VE INCREASED OUR FIELD
OVERSIGHT OF PROCESSING
FACILITIES IN THE STATE.
WE'VE REDUCED DAILY LOAD LIMITS
FOR MATERIALS AND THE NUMBER
POUNDS THAT SOMEONE CAN BRING ON
A DAILY BASIS TO RECYCLING
CENTER.
AND WE PROVIDE A PRE
CERTIFICATION TRAINING AND EXAMS
FOR POTENTIAL OPERATORS TO HELP
THEM UNDERSTAND WHAT IS
NECESSARY AND ORDER TO BE A
SUCCESSFUL RECYCLING CENTER.
ANOTHER CONTRIBUTING FACTOR
TO THE RECYCLING RATE IS
BEVERAGE SALES.
WE'VE SEEN AN INCREASE A
BEVERAGE CONTAINERS SOLD IN THE
STATE WITH TWENTY POINT TWENTY
THREE POINT FOUR BILLION SOLD IN
SIXTEEN SEVENTEEN. THIS IS A TWO
PERCENT INCREASE FROM PREVIOUS
YEARS IN SHORT CALIFORNIANS
CONTINUE TO INCREASE THEIR
CONSUMPTION OF SINGLE USE
BEVERAGE CONTAINERS AND IN THIS
CONTEXT WHAT YOU'VE WE'VE HEARD
AS WELL THIS MORNING IT'S
NOTABLE.
TO TALK ABOUT THE NATIONAL TREND
IS THE INCREASING CONSUMPTION OF
BOTTLED WATER.
BOTTLED WATER SALES HAVE BEEN
STEADILY INCREASING EACH YEAR
AND NATIONAL VOLUME SALES OF
SHOWN EIGHT POINT FIVE PERCENT
INCREASE IN TWENTY SIXTEEN.
BOTTLED WATER IS PET. AND IT'S
TYPICALLY ON THE VAST MAJORITY
OF WHAT WE SEE IN THE STRAIN.
THE RECYCLING RATE. WAS
ESTIMATED AT SEVENTY SEVEN POINT
SIX PERCENT FOR FISCAL YEAR
SEVENTEEN EIGHTEEN COMPARED TO
SEVENTY EIGHT POINT TWO PERCENT
FIRST
FIFTEEN SEVENTEEN TO A SLIGHT
DECLINE. AND WHILE THAT'S BELOW
THE STATUTORY GOAL OF EIGHTY
PERCENT REMAINS HIGHER THAN MANY
OTHER RECYCLING PROGRAMS TODAY.
WHILE RETURNS AND SALES
PRESENTED CHANGES IN CALIFORNIA
MAY SEEM RELATIVELY SMALL THREE
PERCENT ROUGHLY THREE PERCENT
DECLINE IN RETURN A TWO PERCENT.
INCREASE IN REVENUE.
IT'S IMPORTANT BUT THOSE AND
SORT OF IT AMERICANA EXCEPT
APPRECIATED.
MISS COLLINS. REMARKS ABOUT THE
BEVERAGE CONTAINER RECYCLING
FUND IT IS ACCURATE TO SAY THAT
IT IS NO LONGER IN A DEFICIT
IT'S AND I PAY SURPLUS.
TO HELP EXPLAIN IN PART HOW WE
GOT THERE AT THREE PERCENT
DECLINE IN RETURNS. UNDER ONE
POINT THREE BILLION DOLLAR
PROGRAM IS BASICALLY A THREE OUR
THIRTY NINE MILLION DOLLAR
REDUCTION IN EXPENDITURES.
TWO PERCENT INCREASE IN SALES IS
AN ADDITIONAL TWENTY SIX MILLION
IN REVENUE SUCH ABOUT SIXTY FIVE
MILLION DOLLAR SWING. UPWARD
RELATIVE TO THE FUND.
SINCE RELEVANT IN THE CONTEXT OF
THE FUND AND.
THERE ARE MORE FUNDS LEFT AND
REDEEMED BY IN THE CONTAINER
PROGRAM.
WELL WE'RE NEAR THE PRUDENT
RESERVE.
THE STRUGGLE DEFICIT IS GONE AT
THIS POINT. AND THE POINT IS TO
REALLY RECOGNIZE THAT.
THAT THIS IS NOT NECESSARILY A
FINANCIAL ISSUE BUT IT DOES
REFLECT THAT IT THE RECYCLING
REYES ON DEBATE KLEIN AND
CLEARLY THERE'S SOMETHING THAT
NEEDS TO BE DONE. WITH THE
PROGRAM.
.
WANT TO TOUCH ON A COUPLE OF
OTHER ELEMENTS.
BECAUSE IN ADDITION TO RETURNS
AND THE CHANGE THE INCREASE IN
SALES WE NEED TO RECOGNIZE THE
PLASTIC MARKET DEVELOPMENT
PROGRAM.
MOST OF THE PROGRAM COMPONENTS
ARE DISCUSSED ARE FOCUSED ON THE
COLLECTION SORTING HOWEVER WE'VE
ALSO PLAYED AN IMPORTANT ROLE
DEVELOPING IN STATE CAPACITY FOR
REMANUFACTURING. PM DP PLASTIC
MARKET DEVELOPMENT PROGRAM
INEQUALITY INCENTIVE PAYMENT
PROGRAM SUPPORT MORE THAN TWENTY
FIVE PLASTIC MANUFACTURERS. AND
THREE GLASSMAN YOU FRACTURES.
THE NDP HAS PROVIDED UP TO
TWENTY MILLION DOLLARS ANNUALLY
EXCUSE ME TEN MILLION DOLLARS
AND WITH PLASTIC PROCLAIMERS AND
MANUFACTURES FOR PROCESSING. AND
USING RECYCLED PLASTICS.
AND.
THOSE PAYMENTS HAVE EXPIRED AT
THE END OF TWENTY SEVENTEEN SO
THEY'RE NO LONGER SUPPORTING
THIS INFRASTRUCTURE.
WHEN WE KNOW THAT THERE'S POLICY
LEGISLATION ON THAT ON THIS
POINT.
SO AS WE CONSIDER.
ADDRESSING THESE CHANGES AND
CHALLENGES TO THE PROGRAM IT'S
IMPORTANT ELECT POLICIES
AFFECTING RECYCLING MORE BROADLY
AS WE TALK ABOUT MARKETS AS WE
TALK ABOUT INFRASTRUCTURE.
AND SO AND RECOGNIZE YOU KNOW
THE OPPORTUNITIES FOR RESILIENT
SO WITH THAT I'M I'M GOING TO
TURN IT TOO SO WE HELLER WHO'S
GOING TO SPEAK MORE BROADLY
ABOUT RECYCLING AND EXPORTS.
THANK YOU.
ONE MORNING THANK YOU. FOR
TAKING A STEP BACK AND LOOKING
AT RECYCLING MORE BROADLY IN THE
STATE OF CALIFORNIA.
.
WE HAVE A VERY STRONG.
COLLECTING SORT INFRASTRUCTURE
HERE.
WHAT WE'RE LACKING IS?
A STRONG REMANUFACTURING
INFRASTRUCTURE AND STRONG
DIVERSIFIED MARKETS.
THIS LEAVES US VULNERABLE TO
UNPREDICTABLE INTERNATIONAL
MARKETS FOR RECYCLABLE
COMMODITIES.
MAY GIVE YOU A FEW STATS OF WHAT
RECYCLING LOOKS LIKE HERE IN
CALIFORNIA.
SO IN TWENTY SIXTEEN FORTY FOUR
PERCENT OF ALL MATERIALS
GENERATED.
RECYCLED IN CALIFORNIA.
THROWING THEIR BLUE BEEN.
ABOUT TWO THIRDS TO THREE
QUARTERS ARE EXPORTED TO FOREIGN
MARKETS.
OF THOSE RECYCLABLES EXPORTED
WHICH ARE ABOUT FIFTEEN MILLION
TONS IN TWENTY SIXTEEN.
IT'S TO TWO PERCENT OF THOSE
WENT TO CHINA.
WE'VE BEEN FORTUNATE THAT CHINA
HAS HISTORICALLY. ON BEEN THE
BUYER OF MANY OF OUR RECYCLABLE
COMMODITIES.
HOWEVER CHINA'S POLICIES FOR
RESTRICTING IMPORTS IN RECENT
YEARS HAVE LED TO DECLINES IN
EXPORTS FROM THE UNITED STATES.
INDIA'S EXPORTS HAVE BEEN
DECLINING SINCE TWENTY ELEVEN.
FROM TWENTY FIFTEEN TO TWENTY
SIXTEEN EXPORTS DECREASED BY
NINE PERCENT
OR TWO MILLION TONS.
SO CENTER PRESENTATIONS YOU LAST
YEAR CHINA IMPOSED MORE
RESTRICTIVE IMPORT POLICIES
STRAINING OUR EXISTING RECYCLING
SYSTEMS IMMERSING THEM PACKS OF
THAT NOW.
CHINA ANNOUNCED NATIONAL SOARED
POLICY IN JULY OF JUST LAST
YEAR.
AND WHAT THAT POLICY IN TO DO
WAS TO REDUCE IMPORTS OF FOREIGN
WASTES
THEY'RE LOOKING TOUGH. CLEAN UP
THEIR ENVIRONMENT AND NO LONGER
BE THE RECIPIENT OF THE WORLD'S
GARBAGE ESSENTIALLY.
SO NATIONAL SOARED THIS POLICY
THAT WAS JUST INTRODUCED IS
BUILDING ON A PREVIOUS POLICY
THAT WAS CALLED GREEN FENCE.
BECAME BORED IN TWENTY THIRTEEN.
THAT POLICY SIMILARLY WAS
ATTEMPTING TO REDUCE THE IMPORT
OF CONTAMINATED MATERIALS TO
CHINA.
AND WITHOUT THE IMPACTS IN
CALIFORNIA BACK IN TWENTY
THIRTEEN.
WHAT THAT LOOKED LIKE WAS BACK
UPS THE PORTS AND THAT'S REALLY
WHEN WE STARTED SEEING A MAJOR
DECLINE IN NAM? OUR EXPORTS TO
CHINA.
GREEN FENCE WAS ULTIMATELY
UNSUCCESSFUL IN MEETING CHINA'S
GOAL OF. CLEANING UP THE
REFINEMENT ENVIRONMENT REDUCING
THE IMPORTS OF FOREIGN WASTE.
SO AS A RESULT IN PART OF
NATIONAL SOARED IN TWENTY
SEVENTEEN NON IN JULY CHINA
NOTIFIED THE WORLD TRADE
ORGANIZATION OF TWENTY FOUR
WASTE THAT THEY WERE BANNED FROM
IMPORT.
AND THOSE THAT ARE RELEVANT TO
OUR DISCUSSION TODAY. ARE MIXED
PAPERS AND MIXED PLASTICS
BOTH OF WHICH WOULD EXPORT QUITE
A BIT TO TO CHINA OVER THE
YEARS.
IN ADDITION TO THE BAND.
A POINT FIVE PERCENT
CONTAMINATION RATE WAS
IMPLEMENTED FOR ALL OTHER
ALLOWABLE RECYCLABLE IMPORTS.
THIS STANDARD IS EXTREMELY HARD
TO ME. ON BUYER FACILITIES HERE
IN CALIFORNIA AND THROUGHOUT THE
UNITED STATES.
SO WHAT IS POINT FIVE
CONTAMINATION RATE LOOK LIKE IN
SOMETHING LIKE A BALLOT
CARDBOARD WHAT CAN BE. A LOT OF
THINGS FROM LABELS
TAPE TO BELL WIRE TO SOME OF THE
MATERIALS THAT ARE HARD TO SORT
OUT OF MATERIAL RECOVERY
FACILITIES. LIKE FILM PLASTIC
AND OTHER THINGS.
IN ADDITION TO THE POINT FIVE
PERCENT CONTAMINATION RATE.
CHINA ALSO LIMITED IMPORT
LICENSES INCREASED INSPECTIONS
AT THE PORT.
MAKING IT EVEN MORE CHALLENGING
FOR US TO BE ABLE TO EXPORT OUR
MATERIALS THERE.
SO THESE POLICIES WERE
INTRODUCED ON TO CLEAN UP AND
PRESERVE CHINA'S ENVIRONMENT AS
I'VE MENTIONED.
IN OCTOBER IT CHINA'S NINETEENTH
ANNUAL CONGRESS PRESIDENT SHE'S
IN PAIN MENTION THE ENVIRONMENT
EIGHTY NINE TIMES WHILE ONLY
MENTIONING THE ECONOMY SEVENTY
TIMES IN HIS SPEECH.
SO WE'RE STARTING TO SEE THEM
PACKS OF NATIONAL SORT HERE IN
CALIFORNIA.
MARY MATERIALS I NO LONGER HAVE
MARKETS ARE STOCKPILING AT OUR
SOLID WASTE FACILITIES.
IN SOME CASES MATERIALS THAT
WERE PREVIOUSLY EXPORTED ARE NOW
BEING SENT TO LANDFILL.
JURISDICTIONS HOLLERS AND SOLID
WASTE FACILITIES ARE DOING WHAT
THEY CAN'T RESPOND TO THE
CHALLENGES ASSOCIATED WITH
NATIONAL SORT.
STRATEGIES LIKE WASTE
PREVENTION.
UPDATING EDUCATIONAL MATERIALS
TO BE CLEAR ABOUT WHAT CAN BE
PLACED IN THE BROUGH BEN.
INCREASING PROCESSING MATERIALS
THAT MATERIAL RECOVERY
FACILITIES TOURS REDUCE
CONTAMINATION CAN ALL RESULT IN
CLEANER MATERIAL.
BUT THE STRATEGIES COSTS A LOT
OF MONEY INTO NOT FULLY
ADDRESSED THE PROBLEM WITH OUR
RELIANCE ON EXPORTS MARKET.
GONNA TURN IT BACK OVER DID CAN
WHO WILL NOW ADDRESS THE
IMPORTANCE OF BUILDING
RESILIENCE RECYCLING PROGRAMS
HERE IN CALIFORNIA WEEK BEFORE.
THAT WE SHIFT OVER.
DO YOU HAVE ANY STATISTICSOR
PROJECTIONS ON WHAT THE
REDUCTION.
AND RECYCLING FOR VARIOUS
MATERIALS WILL BE AS A RESULT OF
THESE CHANGES. MAY BE YOU KNOW
BETWEEN TWENTY ELEVEN AND.
WHEREVER AND WE END UP AT THE
END OF TWENTY EIGHTEEN OR TWENTY
NINE SOMETHING.
THAT'S A GOOD QUESTION AND IT'S
HARD TO SAY AT THIS POINT WE
STARTED RECEIVING SOME JUST.
PRELIMINARY DATA ON WHITE ON OUR
EXPORTS ARE PROJECTED TO BE OUT
TO THE.
TO THE NEXT YEAR AND IT'S NOT
LOOKING VERY GOOD FOR MATERIALS
LIKE.
CARDBOARD IN MIXED PAPER
PARTICULARLY ON SO WE ANTICIPATE
THAT.
OUR OVERALL RECYCLING WILL
CONTINUE TO DECLINE ON.
OVER THE NEXT
SEVERAL YEARS UNTIL WE HAVE SOME
MORE.
STABILIZATION IN THE MARKETS
OVERALL.
ON.
WITH THAT SAID WE ARE LOOKING
THROUGH SB THIRTEEN EIGHTY THREE
AND OTHER MEASURES TO INCREASE
ORGANICS RECYCLING. ARM SO IF
WE'RE SUCCESSFUL IN THAT WE
MIGHT SEE.
SWING EN AN UPSWING IN OUR
RECYCLING RATE. ON ALSO IF WERE
ABLE TO FIND SOME SUSTAINABLE
STRATEGIES WITH IN CALIFORNIA.
WE CAN SEE WE CAN UP TO SEE THAT
AS WELL FOR SOME THESE OTHER
MATERIALS THAT WE'VE.
TRADITIONALLY RELIED ON THE
EXPERTS MARKET.
THANK YOU.
SO.
WITH MORE MATERIAL STAYING
CALIFORNIA MAJOR FLUCTUATIONS IN
PRICE AND THAT SORT OF LACK OF A
DOMESTIC INFRASTRUCTURE MARKETS
WE NEED TO HAVE CLEARLY MORE
RESILIENT. RECYCLING PROGRAMS
CLEAN MATERIAL.
IN STATE PROCESSING IN
REMANUFACTURING UNSTRUNG
DIVERSIFIED MARKETS ARE ARE
THOSE CRITICAL COMPONENTS SO IF
WE CONSIDERED THAT THE BEVERAGE
CONTAINER RECYCLING PROGRAM.
THROUGH THE LENS OF THESE
IMPORTANT CONCEPTS A I THINK IT
IS SOME OF THESE IDEAS.
COME CLEAR FIRST.
THE DEPOSIT SYSTEM THAT PROVIDES
THAT FINANCIAL INCENTIVE FOR
CONSUMERS AS WE'VE TALKED ABOUT
TO BRING BACK THAT BEVERAGE
CONTAINER TO RECYCLING SAN BRING
THAT MATERIAL.
THIS ENSURES A CLEANER
COLLECTION AND AS A RESULT OF
HIGHER SCRAP VALUE THAN WHAT'S
COLLECTED AT CURBSIDE AND WE'VE
HEARD A GOOD DEAL ABOUT THE
THE QUALITY OF THAT THAT
MATERIAL IN THE CONCERNS THERE
BOTH.
TERMS OF THE SUSTAINABILITY OF
THE PROGRAM BUT ALSO THE
MATERIAL COMING.
THE MATERIAL PAPER ONE COLLECTED
A CURB SIDES EASILY CONTAMINATED
AS YOU'VE HEARD THROUGH SINGLE
STRING COLLECTION PROGRAMS.
SECOND.
THE PBP PROGRAM SUPPORTS THAT IN
STATE REMANUFACTURING CREEK BY
PROVIDING THOSE SUBSIDIES TO
RECLAIM RISEN MANUFACTURES USE
RECYCLED PLASTIC OVER VIRGIN
MATERIAL. AND TO HELP COMPETE
WITH THOSE OVERSEAS MARKETS PART
OF PROGRAM STARTING IN FACT WE
WERE EXPORTING ABOUT NINETY
EIGHT PERCENT OF OF P. ET NOW
IT'S ONLY FIFTY PERCENT.
LASTLY AND AS YOU'LL RECALL FROM
HIS HOWLERS COMMENTS TWO THIRDS
MATERIAL GOING INTO THE BLUE
BIN.
IS EXPORTED THAT'S ARTHUR
CONCEPT IS CREATING MARKET
DEMAND TO POLICIES LIKE PMT P.
AND MINIMUM RECYCLE CONTENT THEY
CAN HELP BUILD RESILIENT
RECYCLING PROGRAMS FOR THOSE
MISTER MATERIALS. THAT WE'VE
HISTORICALLY EXPORTED ELSEWHERE.
SO IF WE HAD SIMILAR PROGRAMS TO
ADDRESS SOME OF THE OTHER
MATERIALS THAT HAVE TALKED ABOUT
WE COULD REDUCE OUR EXPORTS AND
BUILD UP OUR DOMESTIC
REMANUFACTURING INFRASTRUCTURE
AND DIVERSIFIED MARKETS.
FOR EXAMPLE JUST LAST YEAR WE
EXPORTED FOUR MILLION TONS OF
CARDBOARD.
THE CHINA.
WITHOUT ROBUST DOMESTIC
REMANUFACTURING OF MARKETS
CARDBOARD WOULD WILL LIKELY BE
DESTINED FOR DISPOSAL.
THE SAME GOES FOR OTHER MATERIAL
TYPES.
WE HAVE NO REASON TO BELIEVE THE
NATIONAL SORT IS GOING AWAY
ANYTIME SOON.
COLLECT SORT AN EXPORT IS NO
LONGER A VIABLE MATERIALS
MANAGEMENT STRATEGY HERE IN
CALIFORNIA.
THAT SAID WE HAVE AN
OPPORTUNITY.
AND A CHALLENGE TO REDEFINE
RECYCLING.
HERE IN CALIFORNIA AND WHAT THAT
WOULD LOOK LIKE FOR SUCCESSFUL
PROGRAMS FOR ALL MATERIALS.
SO IN IN CLOSING I THINK YOU'VE
HEARD SOME OF THE CRITICAL AND
KEY ELEMENTS HERE THIS IS A
THIRTY YEAR OLD PROGRAM IT HAS
STATUTES THAT ARE THAT ARE
RATHER RIGID AND ANDWE HAVE
LIMITED FLEXIBILITY TO TO
ADDRESS THIS.
TOOK TO ACCOMMODATE AT.
WE DID AS MR MURRAY RIGHTLY
POINTS OUT EXERCISING REGULATORY
FLEXIBILITY.
IN TERMS OF THE REASONABLE
FINANCIAL RETURNS.
BUT WE DON'T HAVE THOSE OPTIONS
ELSEWHERE.
MANY OF THE REQUIREMENTS IN
TERMS OF HOW WE ESTABLISH
PAYMENTS REQUIRE A LOOK BACK
THAT IT THAT IS NOT CONTEMPORARY
WITH WHAT'S EXACTLY HAPPENING
WITH THE MARKET.
.
THERE'S A NEED TO LOOK AT
CONVENIENCE BASED ON THE UNIQUE
REGIONS.
WITHIN CALIFORNIAN THAT COULD
ALLOW FOR APPROACHES THAT A MORE
SUSTAINABLE ONE HIGHLIGHT THAT
TO ASK BEFORE FIFTY EIGHT WHICH
WE'RE IMPLEMENTING NOW WILL
ALLOW US TO EXPLORE SOME PILOT
PROGRAMS.
ON CONVENIENCE IN COLLECTION
MODELS.
WERE CONDUCTING WORKSHOPS RIGHT
NOW ON THAT TO TO GARNER SOME
INTERESTING IDEAS AND AND WILL
BEGIN MOVING THAT FORWARD OVER
THE COURSE OF THE NEXT COUPLE
YEARS WHERE WE CAN LEARN FROM
THAT.
MOST IMPORTANTLY I THINK YOU TO
SUSTAIN MARKETS HAVE TO BE
DEVELOPED.
MINIMUM RECYCLE CONTENT IS ONE
WAY GETTING US THERE RISK
REQUIRING CONTAINERS TO INCLUDE
A CERTAIN PERCENTAGE OF RECYCLED
MATERIAL PROVIDES A CONSISTENT
MARKET DEMAND IS MORE INSULATED
FROM INTERNAL MARKET
FLUCTUATIONS.
MORE BROADLY IN ORDER TO CREATE
THAT CIRCULAR ECONOMY THAT
CLOSED LOOP RECYCLING.
WE HAVE A COUPLE OF OPTIONS OUR
PURSES TO DEVELOP DOWNSTREAM
MANAGEMENT SYSTEMS LIKE THE
BEVERAGE CONTAINERS. PROGRAM TO
COLLECT SORT OF CREATE MORE
DIVERSIFIED MARKETS
ADDITIONALLY WE CAN LOOK
UPSTREAM TEA IS LESS MATERIALS
MAKE SMARTER CHOICES ON THE
MATERIALS THAT WE DO USE.
I'M A CALIFORNIA DOES NOT HAVE
POLICIES IN WHICH MATERIAL.
IS ACCEPTABLE OR WHO IS
RESPONSIBLE FOR MANAGING THAT.
STATE AND LOCAL GOVERNMENTS ARE
LEFT WITH THE HARD DECISIONS TO
MANAGE THESE MATERIALS THAT CAN
BE DIFFICULT TO COLLECT AND
REGRETTABLY WILL END UP IN THE
LANDFILL. I'M EITHER HERE OR IN
OTHER COUNTRIES ON.
SOME THANK YOU VERY MUCH FOR
YOUR TIME AND WILL RESPOND ANY
QUESTIONS THAT YOU MAY HAVE
THANK YOU WELL I HAVE LOTS OF
QUESTIONS JUMP BUTTON TO ACT I
THINK.
INDIFFERENCE TO THE OUR.
I'M GONNA. RESTRAIN MYSELF
LISTED ON AND.
OBVIOUSLY.
A WE NEED A LOT OF WORK ON THIS
PROGRAM AND I LOOK FORWARD TO
HAVING CONTINUING. DISCUSSIONS
WITH YOU ABOUT THAT.
WE WILL TAKE PUBLIC COMMENT NOW
ON. ON THIS ISSUE. OF
UNDERSTANDING THAT. WE HAVE
ANOTHER PANEL ON MATTRESS
RECYCLING SO PLEASE KEEP YOUR
COMMENTS AS CONCISE AS POSSIBLE.
THANK YOU.
IT WAS VERY CLEVER THE MEMBERS.
TONY GONZALEZ REPRESENTING
TOLERATE NORTH AMERICA.
.
THANK YOU MISTER CHAIRMAN AND
MEMBERS AYE TONY GONZALEZ
REPRESENTING. THOMAN EARTH
AMERICA WE'VE TALKED A GREAT
DEAL BUT CONVENIENCE AND
MODERNIZING THE PROGRAM. ONE OF
THE TOOLS IN OUR TOOL BOX IS
WHAT IS COMMONLY DONE IN AND
THROW MOST OF NORTH AMERICA AND
IN EUROPE WHERE.
WE HAVE VERY ADVANCED DEPOSITS
SYSTEMS WHICH IS GREATER USE OF
TECHNOLOGY SPECIFICALLY REVERSE
VENDING MACHINES.
WE SAW SOME PHOTOGRAPHS OF WHAT
IS BEING DONE IN OREGON.
HIGHLY SUCCESSFUL THIS IS NOT A
NEW CONCEPT AT ALL VERY COMMONLY
USED THROUGHOUT.
MOVES TO DEPOSIT SYSTEMS UNITED
STATES
MY ONLY COMMENT HERE IS THAT
THERE ARE THINGS THAT WE CAN DO
IN OUR STATUTE TO. GREATER
INCENTIVIZE THE USE OF OUR OF
YAMS.
CLEARING AWAY SOME OF THE RULES
AND REGULATIONS THE STATUTE THAT
REALLY PRECLUDE THEIR USE IN
CALIFORNIA ALTHOUGH WE DO HAVE
ABOUT TWO HUNDRED.
IN THE STATE THAT.
WE COULD USE A LOT MORE THAT
WOULD ADDRESS MANY THE ISSUES IN
THE. RURAL AREAS IN URBAN AREAS
SUCH AS FRESNO WHERE WE CAN
PROVIDE CONVENIENT DROP US
SYSTEMS THAT DO PROVIDE. NOT
ONLY A.
MECHANISM FOR DEBATE.
FOR REDEMPTION BUT ACTUALLY A
TRUE PAYMENT TO THE INDIVIDUAL
YOU'RE PAID BY COUNT.
PER BOTTLE AS OPPOSED TO THE
WEIGHT IN WHICH THAT NORMALLY
THE CONSUMER WILL GET SHORT
CHANGED SOME DEGREE. BY BRINGING
THE MATERIAL BY WEIGHT AND WITH
THOSE COMMENTS WE LOOK FOR
WORKING WITH STAFF AND
STAKEHOLDERS TO SORT THIS OUT
THIS YEAR.
MISTER CHAIRMAN AS THE COMMITTEE
UPPALA TREAT ON BEHALF OF CPR
SEE IF THE PLASTIC RECYCLERS
COALITION. SO.
ON YOUR LIST WE WERE LISTED AS
PROCESSORS WERE ALSO CALLED
PROCLAIMERS AND RECYCLERS SO
WERE THE ONES THAT TAKE THAT
FINAL OF BENEFIT OF A OF A
PLASTIC BOTTLES AND.
WE TAKE THOSE WE STERILIZE AND
TURN THEM INTO A PRODUCT BE MADE
AGAINST WITH THE END OF THE
LINE.
BEFORE IT BECOMES SOMETHING NEW
AGAIN SO THERE'S A COUPLE OF
THINGS THAT WE HAVE TO HAVE BEEN
LITERALLY WE'VE ALREADY LOST ONE
THERE'S ONLY FIVE OTHERS BIG
ONES IN THE STATE. AROUND THAT
DEAL WITH THESE PRODUCTS WE NEED
TO HAVE MINIMUM CONTENT NOT
SOMETHING THAT YOU HAVE
CONSIDERING IN YOUR COMMITTEE
RIGHT NOW BUT WE NEED SUPPORTED.
AND TO THAT PM DE PAYMENTS BACK.
THOSE WERE STARTED YEARS AGO
ALSO BE SENDING YOU MORE
INFORMATION ON THOSE BUT THERE
THE GAP THAT WE NEED BEFORE OUR
GUYS LITERALLY GO UNDER IF WE
CAN'T GET MINIMUM CONTENT. SO
WILL BE SENDING YOU MORE
NFORMATION ON THAT BUT THESE
ARE IN STATE GREEN JOBS.
AND THE LAST CYCLE FOR A
CLOSELY.
MISTER CHAIRMAN AND MEMBERS I'M
KELLY ASKED HER WITH THE
CALIFORNIA REFUSE RECYCLING
COUNCIL THE SERGEANT IS
DISTRIBUTING AB.
VERY BRIEF WHITE PAPER THAT WE
HAPPEN TO PREPARE ON THIS TOPIC
OF NATIONAL SOARED.
I I WANT TO SAY THAT I'M
DELIGHTED WITH OF MS.
HELL IS PRESENTATION AND VERY
PLEASED TO SEE THAT.
WE ARE DISCUSSING THE VAT
ALONGSIDE THE MATTRESS IN THE
BOTTLE BILL PROGRAM ISSUE.
I DON'T HAVE EXACT NUMBERS IN
MIND BUT I'M GUESSING OF THE
THIRTY SWEET.
DISPOSE OF SOME THIRTY SEVEN
MILLION TONS OF MATERIAL EVERY
YEAR.
WHILE THE BOTTLE BILL FIXES ARE
NECESSARY.
AND WE CAN PERHAPS AGREE ON SOME
WHAT THOSE OUGHT TO BE A MUCH
LARGER PROBLEM IS LOOMING AND
THAT'S THE PROBLEM OF NATIONAL
SOARED.
THE MEMBERS OF C. R. SEE ARE THE
MURPH OPERATORS OF FOLKS WHO
BUILT FINANCE CONSTRUCTED THESE
OF FACILITIES AND FEED THEM
THROUGH THE COLLECTION SYSTEM
THAT YOU'RE ALL FAMILIAR WITH.
THEY LITERALLY ARE FINDING NO
HOME.
FOR A GREAT DEAL OF MATERIAL
THAT FORMALLY HAD A HOME. IN THE
CITY THE LAW IS NOT CURRENTLY.
DESTRUCTIVE IN THE WAY TO
ADDRESS THAT THE ASSUMPTION THAT
WAS MADE WITH NINE THIRTY NINE
WAS IT MARKETS WOULD ALWAYS BE
THERE THE SUDDEN. AND PROFOUND
CRASH IN THOSE MARKETS MEANS
THAT EVEN. THERE'S A CLASS OF
MATERIAL WE CAN'T EVEN PAY TO
GET RID OF.
I'M NOT SURE WHAT THE SOLUTION
IS BUT IT'S A VERY SHORT TERM
IMMEDIATE PROBLEM I'D LOVE ONE
DAY FOR THERE TO BE A RESILIENT.
RECYCLING SYSTEM LIKE IS
DESCRIBED.
BUT IN THE ABSENCE OF DOMESTIC
MARKETS WERE COMPLETELY AT THE
MERCY. OF A AT EAST ASIAN
MARKETS AND THOUGH THEY'RE
SHOWING SOME.
UNWILLINGNESS SUDDENLY TO
ACCEPT MATERIAL FROM US AND
THERE'S NO OPTION BUT TO DISPOSE
OF WHAT I CALL THE EXCESS
MATERIAL. THAT AMOUNT OF
MATERIAL THAT EXCEEDS OUR
ABILITY TO STORE ON SITE AT A
RECYCLING FACILITY.
WHERE IS HARMED OR MORE SO THAN
ANYBODY BY THAT FACT IT'S AN
UGLY FACT WE HAVE TO ADDRESS?
WE'LL TO BECOMING FOUR DO YOU IN
THE NEAR FUTURE WAS PROPOSED
SOLUTIONS ON THAT THANK YOU VERY
MUCH FOR YOUR TIME.
CHAIR.
.
MISTER PATTERSON.
MARKET PRAYER I'M HERE ON
BEHALF OF REPUBLIC SERVICES AND
IN CONVERSATIONS WITH.
YOUR STAFF WE UNDERSTAND THAT
THIS HEARING IS THE BEGINNING OF
A CONVERSATION NOT A BROADER
CONVERSATION NOT JUST ABOUT THE
BOTTLE BILL AND. MATTRESS
RECYCLING BUT HOW DO WE DO A
BETTER JOB. OF A RECYCLING
ACROSS THE BOARD AND SO I WANNA.
ADDRESS BOTH A BOTTLE BILL BUT
ALSO.
SOME OF BROADER ISSUES.
SO AGAIN JUST TO REITERATE THE
THE.
CURRENT BEVERAGE CONTAINER
RECYCLING SYSTEM IS CERTAINLY
NOT PERFECT BUT IT.
IT CERTAINLY HAS ACCOMPLISHED
MUCH GOOD.
IN TERMS OF IT'S RECYCLING RATE
IN THE AMOUNT OF BOTTLE.
BEVERAGE CONTAINERS RECYCLE.
THIS PROGRAM IS ALSO PROVIDED A
VALUABLE REVENUE STREAM THAT HAS
HELPED FINANCE MUCH OF OUR
CURRENT RECYCLING
INFRASTRUCTURE.
AND FROM OUR PERSPECTIVE THE
PROGRAM NEEDS TO BE REVISED AND
UPDATED BUT CERTAINLY NOT.
NOT ABANDONED.
I IN RESPONSE TO A BE NINE
THIRTY NINE IN RESPONSE TO THE
BEVERAGE CONTAINING CONTAINER
RECYCLING ACT. LOCAL GOVERNMENT
ANDTHE PRIVATE SECTOR HAVE
INVESTED HUNDREDS OF MILLIONS OF
DOLLARS.
IN PROGRAMS AND INFRASTRUCTURE
TO ACHIEVE THE RECYCLING RATES
THAT WE CURRENTLY ENJOY.
BUT I ALSO WANT TO POINT OUT
SOME THE OTHER PUBLIC POLICIES
THAT.
THE LEGISLATURE HAS ENACTED IN
TWO THOUSAND ELEVEN FOR
INSTANCE.
THE LEGISLATURE ENACTED AB THREE
THREE FORTY ONE BY MISTER
CHESBRO WHICH ESTABLISHED A
STATE OF POLICY GOAL THAT
SEVENTY FIVE PERCENT OF SOLID
WASTE GENERATED BE DIVERTED BY.
FROM LANDFILL DISPOSAL BY TWENTY
TWENTY.
IN TWO THOUSAND AND FOURTEEN THE
LEGISLATURE ENACTED AB EIGHTEEN
TWENTY SIX THAT PHASES IN
REQUIREMENTS FOR GENERATORS OF
ORGANIC WASTE.
TO ARRANGE RECYCLING SERVICES
FOR THAT MAKE MATERIAL OF
BEGINNING IN JANUARY OF TWO
THOUSAND SIXTEEN THROUGH JANUARY
OF TWO THOUSAND. NINE NINETEEN
WERE CURRENTLY IN THE MIDST OF
IMPLEMENTING.
THAT THE PROVISIONS OF THAT
BILL AND THEN IN TWO THOUSAND
SIXTEEN THE LEGISLATURE ENACTED
SP THIRTEEN EIGHTY THREE.
I'M PROUD TO SAY THAT REPUBLIC
SERVICES WAS AN EARLY SUPPORTER
OF THAT MEASURE.
AMONG OTHER THINGS SB THIRTEEN
EIGHTY THREE STATES THAT
METHANE.
EMISSION REDUCTION GOALS SHALL
INCLUDE TARGETS TO REDUCE THE
LANDFILL DISPOSAL OF ORGANIC
WASTE FIFTY PERCENT BY TWENTY
TWENTY. AND SEVENTY FIVE PERCENT
BY TWENTY TWENTY FIVE FROM TWO
THOUSAND FOURTEEN LEVELS.
ALL OF THESE PROGRAMS HAVE BEEN
IMPOSED HAVE IMPOSED A. A TOUGH
BURDEN ON LOCAL GOVERNMENT
RECYCLERS WASTE HAULERS IN OUR
RATE PAYERS.
WE ARE CONFRONTING THE DEMAND
TO BUILD MORE INFRASTRUCTURE IN
THE FACE OF TOUGHER REGULATORY
REQUIREMENTS DIMINISH MARKETS.
AND A LACK OF LONG TERM STATE
FUNDING SUPPORT.
ACCORDING TO RICH CAL RECYCLED
THE PRIVATE SOLID WASTE
INDUSTRY.
LOCAL GOVERNMENT HAVE BUILT
ROUGHLY A HUNDRED AND EIGHTY
ACTIVE ANAEROBIC DIGESTION
COMPOST FACILITIES IN THE PAST
TWENTY FIVE YEARS.
IN ORDER TO MEET THE SEVENTY
FIVE PERCENT.
ORGANICS REDUCTION GOALS
ASSEMBLY IT S. B. THIRTEEN
EIGHTY THREE WE WILL NEED TO
SITE FINANCE.
PERMIT AND BUILD AT LEAST DOUBLE
THAT NUMBER OF FACILITIES IN THE
NEXT FIVE TO SEVEN YEARS. AT A
COST OF AROUND THREE BILLION
DOLLARS.
THUS FAR NO ONE HAS PROPOSED A
PERMITTING PROCESS.
NOR OFFER THE NEED CAPITAL
INVESTMENT TO ACHIEVE ORGANIC
REDUCTION GOALS LAID OUT IN S.
B. THIRTEEN EIGHTY THREE.
SO AS WE LOOK FOR A LOOK TO A
DEPRESSED ADDRESSED RECYCLING IN
A BROAD SENSE.
.
FOR.
NOT ONLY BEVERAGE CONTAINERS
MATTRESSES.
OTHER CONTAINERS BUT THAT
ACROSS THE BOARD WE SHOULD
CELEBRATE THE SUCCESSES THAT
WE'VE HAD.
BE MINDFUL THAT THERE IS STILL
MUCH TO BE DONE WITH THE PUBLIC
POLICY THAT'S ALREADY BEEN
ADOPTED.
AND.
ENSURE THAT NEW POLICIES DO NOT
LEAVE SOLID WASTE INVESTMENTS IN
ASSETS STRANDED. I WE WE COMMIT
TO YOU AND TO THE OTHER
COMMITTEE MEMBERS.
I THAT WILL BE YOUR PARTNER IN
DEVISING ANY FUTURE POLICIES AND
FIGURING OUT A WAY THAT WE CAN
DO A BETTER JOB AT RECYCLING.
THANK YOU MISTER CHAIR.
CHAIRMAN BLOOM PATTERSON ON
MICROBES HERE ON BEHALF THE
GLASS PACKAGING INSTITUTE ON
REPRESENT THE. GLASS BOTTLE
MANUFACTURES IN CALIFORNIA AND
ACROSS THE NATION. AND THERE IS
A SURPRISING AMOUNT OF
DISCUSSION IN CLASS TODAY AND I
AND AND I THINK I'M A LOT OF THE
PREVIOUS ON.
TESTIMONY HIT ON A LOT OF
THINGS THAT I THINK WERE WERE
ALL FAIRLY ACCURATE AND COUPLE
THINGS I JUST WANT TO POINT OUT
THAT I DON'T THINK WE'RE REALLY
RAISED.
AND.
DISCUSSION IN THE BACKGROUND
PAPER AND FROM THE LA OWN IN
EVEN A LITTLE BIT FOR MR MURRAY
ABOUT.
MANUFACTURES PAIN HUNDRED
PERCENT OF THE COST OF RECYCLING
OR YOU KNOW
CLOSE TO A HUNDRED PERCENT THE
COST RECYCLING JUST FOR ITS A
PERTAINS THE GLASS CONTAINER
INDUSTRY ONE IT AND. KNOW THAT
WE BELIEVE WE DO THAT ALREADY I
MEAN THERE IS A PROCESSING FEE
OFFSET. AND SHOULD WIN WIN THE
RECYCLING RATE GOES DOWN OUR
PROCESSING FEE OFFSET IS REDUCED
MEANING OUR PROCESSING FEE IS
MORE. THAT'S WE PAY ON THE FRONT
END AND TO SUPPORT. THE
RECYCLING INFRASTRUCTURE BUT WE
ALSO PAY ON THE BACK END SO WE
IT WE ARE WE ARE THE AND MORE
WE ARE THE PRIMARY AND MARKET
AND MR MURRAY MADE THE POINT
THAT YOU KNOW FIFTY.
APPROXIMATELY FIFTY PERCENT OF
GLASS BOTTLES
AND.
AND. APPROXIMATELY.
FIFTY PERCENT OF A GLASS BOTTLES
MADE UP OF RECYCLED MATERIAL.
AND THEM AND AND THAT'S THE END
USER WE ARE PAYING FOR THAT CALL
IT WE ARE PAYING FOR THAT
RECYCLED GLASS.
AND SO WHATEVER IT COSTS FOR THE
FOR THE HOLLER THE RECYCLER AND
THE PROCESSOR TO GET US THAT
PRODUCT WE'RE PAYING FOR IT
WEEKS WE PAY A PREMIUM FOR QUITE
FURNACE READY QUALITY COLOR SO
SO I JUST WANTED KNOW THAT THAN
THE MARKET.
FLEX.
THAT COSTS WE ARE PAYING FOR IT
INTO WE PAID IN THE FRONT AND WE
PAY THEM THE BACK.
AND MISTER KING ASSEMBLYMAN TING
ASKED
I'M ABOUT THE. RATE OF RECYCLING
FOR GLASSON AND UNFORTUNATELY HE
LAUGHED I'M I THINK ALL THE
ANSWERS THAT WERE GIVEN TO ON
THAT THE OTHER MATERIAL TYPES
ARE ARE WIDER EASIER TO MOVE ALL
THOSE ARE ALL. ACCURATE ACCURATE
A.
RESPONSES IT'S BUT IT'S ON.
YOU KNOW IT'S IT'S SOMETHING TO
BE SAID THAT AT ONE POINT AND IT
WAS IT WAS MENTIONED BY SOMEBODY
THAT. YOU KNOW THE THE ROOM THE
RECYCLING RATE FOR ALUMINUM WAS
ACTUALLY ABOUT A HUNDRED PERCENT
AT ONE POINT SO SO YOU KNOW IF
YOU GET TO TAKE SOME THIS
RECYCLING RATE STAFF IN. PUT IT
INTO IN A BIGGER CONTEXT
ANYTHING MISTER DRAWS A HIT ON
IT IS THAT.
DEPARTMENT HAS DONE A PRETTY
GOOD JOB IN LAST YEAR'S OF
RATCHETING DOWN ON FRAUD IN SO
THAT YOU KNOW IT'S OBVIOUSLY
IT'S IMPOSSIBLE FOR THE
RECYCLING RATE FOR WOMEN TO HAVE
EVER BEEN A FIVE HUNDRED PERCENT
BUT IT WAS.
AND SO THEY THEY'VE DONE A GOOD
JOB OF TAKING A MATERIAL LIKE
PLASTIC AND ALUMINUM WHICH ARE
VERY LIGHT EASY TO MOVE ACROSS
STATE LINES AND BRING IN THE
CALIFORNIAN RECYCLE IT.
IF YOU'RE IN ARIZONA OR WHATNOT.
YOU KNOWN SURPRISINGLY NOW
OREGON HAS A TEN CENT DEPOSIT.
SO. YOU KNOW WHO KNOWS MAYBE
SOME OF THAT SOME OF OUR ALL
THIS MATERIAL COULD BE MOVING
ORGAN FOR ALL WE KNOW IT AGAIN
THE TIME INSTEAD OF A NICKEL.
SO IT'S JUST SOMETHING TO KEEP
IN MIND AND.
AND AND UNDERSTAND THAT YOU
KNOW RECYCLING RATES.
YOU KNOW REFLECT LIKE MR GROWTH
OF SAID A LOT OF DIFFERENT OTHER
THEM ITEMS TOOK THANK YOU.
MISTER CHAIRMAN A SIMILAR
PATTERSON JUST WANTED TO THANK
YOU FOR HAVING THIS HEARING
TODAY I THOUGHT SET A VERY GOOD
START ANYMORE REPRESENTING REPLY
THAT. THE LARGEST CAN BE IT'S AN
RECYCLING THE STATE.
I THINK THE HEARING SET A
WONDERFUL BASS LINE IN TERMS OF
OUR HAVING KNOWLEDGE ABOUT THE
PROGRAM AND WHERE WE'RE STARTING
OFF AT THIS POINT IN TIME. OUT
AND THEN JUST TWO QUICK POINTS
ONE ON THE RECYCLING
INFRASTRUCTURE OF THE STATE.
AND THEN THE OTHER GENERALLY.
WITH REGARD TO THE PRICE OF
COMMODITIES IN THE STATE. ON THE
FIRST POINT.
AS YOU'VE HEARD AGAIN AND AGAIN
ARE RECYCLERS WERE NOT.
BUT PROPERLY COMPENSATED FOR
THE TREMENDOUS DEBT BEEN
COMMODITIES PRICES. AND ONE OF
THE REASONS FOR THAT IS IN OUR
STATES PROGRAM WE PROBABLY DON'T
ADEQUATELY TIE THE PRICE OF
COMMODITIES TO HOW RECYCLERS ARE
COMPENSATED.
YOU HEARD WHAT MR MURRAY SAY
EARLIER THAT.
RECYCLERS ARE ARE OFTEN REALLY
PRIMARILY COMPENSATED.
BASED ON THEIR OWN COSTS WHICH
DOESN'T MAKE A LOT OF SENSE THIS
MODERNIZE PROGRAM WE WANT TO
THANK THE DEPARTMENT.
FOR RECOGNIZING THAT.
THIS FALL AND ACTING VERY
QUICKLY TO REMEDY THAT SITUATION
AND HELP MAINTAIN OUR EXISTING
INFRASTRUCTURE.
THE SECOND POINT IS ON THAT THAT
INFRASTRUCTURE.
AND AND THAT IS.
WE IN THE STATE.
I HAVE LOST A TON OF THAT THAT
INFRASTRUCTURE WE NEED TO
REINVEST IN THAT.
WE ARE VERY SUPPORTIVE OF
COURSE OF OUR CURB SIDE PROGRAMS
AND THAT IS A VERY CONVENIENT
OPTION. ON FOR MANY CONSUMERS
BUT FOR THOSE CONSUMERS WHO HAVE
PAID A NICKEL OR A DIME.
FOR A CONTAINER AND THEY WANT TO
GET THAT MONEY BACK.
IF THEY DON'T HAVE A CONVENIENT
PLACE TO COMPETE IN PLACE TO GO
TO GET THAT MONEY BACK IT
CONSTITUTES A TAX FOR THOSE
CONSUMERS. AND THAT'S WHY WE
HAVE TO SUPPORT THAT
INFRASTRUCTURE THAT'S WHY WE
HAVE TO ENCOURAGE OR EVEN
INCENTIVIZE.
OUR LOCAL GOVERNMENTS NOT TO
CLOSE THAT INFRASTRUCTURE AND
ONE LAST QUICK POINT IF I MIGHT
WITH REGARD TO THE PRICE OF
COMMODITIES AS WE'VE HEARD TODAY
THE PROGRAM IS NOW PRIMARILY
PLASTIC.
AND IN ORDER TO INCENTIVIZE A
HIGH COMMODITIES PRICES SO THE
PROGRAM PAYS ALL OF US A LOT
LAST FOR THE COST OF RECYCLING
AND SO CONSUMERS ULTIMATELY PAY
LESS FOR THAT COST OF RECYCLING.
WE HAVE TO SUPPORT OUR PLASTIC
INDUSTRY AND ONE OF THE WAYS WE
CAN DO THAT WAS WITH PLASTIC
MARKET DEVELOPMENT PROGRAMS
THANK YOU.
GOOD MORNING MELISSA AND MO WITH
CHAU YOUR ANTI HERE ON BEHALF OF
THE SOLID WASTE ASSOCIATION OF
NORTH AMERICA. I JUST WANNA OUT
OUR VOICE TO THE CHORUS AND TO
SAY THAT AS WE EVALUATE THE
STATE'S
AND FUTURE OF RECYCLING
INFRASTRUCTURE AND SYSTEMS AND
WE WOULD EMPHASIZE THE NEED FOR
STATE A SENSE ASSISTANCE WITH
DEVELOPING IN STATE MARKETS. AND
INFRASTRUCTURE ON PARTICULARLY
IN LIGHT OF FOURTH CAME FORTH
COMING STATE REQUIREMENTS SUCH
AS THOSE ESTABLISHED BY SB
THIRTEEN EIGHTY THREE. I'M AND
ALSO THE HEIGHT RESTRICTIONS ON
SOME OF OUR LARGEST EXPORT
MARKETS AND WE'D LIKE TO SEE
THAT STAY ASSISTANCE INCLUDE
FUNDING FOR CAPITAL INVESTMENTS
IN INFRASTRUCTURE. ASSISTANCE
WITH PERMITTING PROCESS HE'S
AMEND POLICY IS THE HOPE OF
SOURCE REDUCTION AND GETTING AT
THE ISSUE OF PRODUCER
RESPONSIBILITY SO WE LOOK FOR TO
ENGAGING AS WE MOVE FORWARD
THINK YOU.
MISTER CHAIRMAN BUYERS I'M AARON
EVANS WITH THE LEAGUE OF
CALIFORNIA CITIES. AS YOU'VE
HEARD BOTH THE STATE AND LOCAL
GOVERNMENTS HAVE INVESTED MULTI
MULTIPLE MILLIONS OF DOLLARS.
IN MANY DIFFERENT AND NUMEROUS
TYPES OF RECYCLING PROGRAMS.
I CURBSIDE RECYCLING REMAINS
CRITICALLY IMPORTANT TO OUR
COMMUNITIES.
AS TO THE THE BOTTLE BILL
PROGRAM AND OTHER RECYCLING
PROGRAMS AS WELL AND WE LOOK
FORWARD TO CONTINUING THE
CONVERSATION ON SOLUTIONS. TO
THE DECLINING RECYCLING RATES
I'M INCLUDING UP POTENTIALLY
INCREASING THE CONTAINER TYPES
THAT ARE INCLUDED IN THE BOTTOM
OF THE PROGRAM. THANK YOU VERY
MUCH LOOK FORWARD TO CONTINUING
THE CONVERSATION.
MISTER CHAIRMAN MEMBERS RALPH
SIMONI REPRESENTING THE AMERICAN
BEVERAGE ASSOCIATION AND THE
PLASTIC RECYCLING CORPORATION OF
CALIFORNIA. BUT PLEASE ALLOW ME
TO COMMEND YOU FOR HOLDING THIS
HEARING. OF HOPEFULLY MANY OF
THE STAKEHOLDERS WILL THAT
YOU'VE SPARKED THE DISCUSSION
HER DIALOGUE AMONGST US
HOPEFULLY WE CAN COME TOGETHER
TO UP MAKE SOME OF THE TWEAKS
AND SOME OF THE IMPROVEMENTS.
ABOUT WITH REGARDS TO SOME OF
THE METRICS YOU'VE HEARD A LOT
OF TESTIMONY TODAY A LOT OF
NUMBERS I THINK IT'S FAIR TO
SAY.
THAT OUR RECYCLING RATE IS
HOVERING IN THE EIGHTY PERCENT
LEVEL. WHEN I LOOKED AT THE
DEPARTMENT'S QUARTERLY REPORT
THAT CAME OUT YESTERDAY THEY HAD
AND EIGHTY POINT SEVEN PERCENT.
AND THE LOOK IN AND THE LA OWE A
REPORT THAT WAS GIVEN OUT THIS
MORNING. IT WAS I THINK THE
QUOTE WAS ABOUT EIGHTY PERCENT
CHAU YES WE ARE BELOW THE ALL
TIME HISTORIC HIGHS.
SOME OF THAT MAY BE ATTRIBUTED
TO A CONTRACTION OF RECYCLING
CENTERS SOME OF IT MAY BE
ATTRIBUTED TO. OF IT MORE GLOBAL
A ELEMENTS LIKE PEOPLE BEING
MORE FLUENT DURING THIS CURRENT
TIME SO. WE NEED TO EVALUATE
THAT.
VERY CRITICALLY
UP IF I MIGHT I'D ALSO LIKE TO
DISCUSS THE OF THE RECYCLING
CENTERS
BECAUSE I THINK THAT'S.
IN IMPORTANT POINT AND I DON'T
WANNA.
SHE JUST THAT THERE ARE TOO FEW
OR TOO MANY BUT IT'S VERY
COMPLICATED AND IT'S A BALANCE
IT'S A BALANCE BETWEEN. WHAT THE
PUBLIC WANTS AND DEMANDS AND
BETWEEN WHAT THE PROGRAM CAN'T
AFFORD? A HUB COUPLE OF YEARS
AGO THE CALIFORNIA NEVADA
BEVERAGE ASSOCIATION
COMMISSIONED A STATEWIDE POLL.
ACTUAL INTERVIEWS A PRIOR TO
GOING OUT IN THE FIELD WE HAD
ASSEMBLYMAN THEN ASSEMBLYMAN
RICH GORDON VET THE QUESTIONS TO
ENSURE THAT THEY WERE FAIR AND
NOT SKEWED.
OF ONE OF THE PRIME COMPONENTS
OF THAT PUBLIC OPINION SURVEY
WAS.
WHAT DOES THAT GENERAL PUBLIC
WANT AND WHAT WE FOUND WAS THERE
WERE TWENTY TWO PERCENT OF THE
PEOPLE?
WHO FREQUENTLY USED RECYCLING
CENTERS AND ABOUT ELEVEN
PERCENT?
THAT OCCASIONALLY.
WE THEN ASKED THE QUESTION A
BALLOT CURBSIDE AND AS I
RECOLLECT THE NUMBERS WHICH HAVE
BEEN SHARED WITH CAL RECYCLE THE
GOVERNOR'S OFFICE POLICY
CONSULTANT.
THE CURBSIDE.
ROUGH FRENCH WAS SOMEWHERE IN
THE THIRTY SEVEN TO THIRTY EIGHT
PERCENT FREQUENT. AND AN
ADDITIONAL TWENTY TWO PERCENT.
OCCASIONALLY SO IT IT IT IS A
MATTER OF CONSUMER CHOICE QUITE
FREQUENTLY WHETHER THEY WANT TO
DONATE OR WHETHER THEY WANT TO
RETRIEVE THEIR NICKEL AND AGAIN
I'M NOT ARGUING FOR ONE OR THE
OTHER. BUT CLEARLY THEY HAVE TO
BE A TAKEN INTO ACCOUNT. A ALSO
CAL RECYCLE IS DOING ITS.
BUT YOU HAVE THE UC STUDY THAT
CAN THAT WAS SUPPOSED TO BE DUE
IN AUGUST.
WE'RE STILL AWAITING THAT THAT
ALSO INCLUDES SOME SURVEY DATA
HOPEFULLY IT WILL VALIDATE. WHAT
WE HAVE A GENERATED UGH JUST TOP
LINE A COUPLE OF OTHER THINGS?
MARK MURRAY HAS AND OTHERS HAD
MENTIONED THE PLASTIC MARKET
DEVELOPMENT ACCOUNT. OF MY
CLIENTS TOTALLY ENDORSE THAT.
HOWEVER WE WOULD LIKE TO EVEN
CHANGE THAT RATHER THAN A
STATIC.
PM DE.
HOW BOUT A DYNAMIC PMD
SO WHEN THE COST OF VIRGIN AND
OR PET?
ARE CLOSE TOGETHER.
THE RECLAIMER SHE WOULD RECEIVE
ADDITIONAL PSALMS BEYOND THAT
TEN MILLION MAYBE HAVE IT
ELASTIC WORK COULD BE UP TO
TWENTY TO TWENTY FIVE MILLION.
TO ADJUST FOR THAT GAP.
CONVERSELY WHEN THE PRICE OF
VIRGIN AND OUR PET ARE.
QUITE DIFFERENT MAYBE AS THEY
ARE TODAY.
YOU GO DOWN TO A MUCH LESSER
AMOUNTS OF THEIR WAYS TO HELP.
OF RECYCLING CENTERS ARE.
JUST A COUPLE OF COMMENTS ABOUT
THAT.
ABOUT ONE TO DEPARTMENT ADOPTED
EMERGENCY REGULATIONS IN
DECEMBER COUNT AS I RECOLLECT.
THAT.
CHANGERS THE REASONABLE
FINANCIAL RETURNS.
AND.
PLUGS INTO A NUMBER OF ELEVEN
POINT FIVE PERCENT.
FOR URBAN AND SIXTEEN POINT
EIGHT OR SOMETHING PERCENT
REASONABLE FINANCIAL RETURN FOR
RURAL LOCATIONS.
OF.
MY CLIENTS SUPPOSED THAT NOT
BECAUSE OF THE NUMBER WHICH
ARGUABLY WAS SOMEWHAT ARBITRARY
AND NOT TIED TO ANYTHING
SPECIFIC BUT BECAUSE IT DIDN'T
ADDITIONALLY PROVIDE A
COMPONENT.
TO EXPAND THE REDEMPTION
OPPORTUNITIES THAT WAS A FOCUS
OF THIS.
HEARING EARLIER SHOW I THINK WE
MISSED AN OPPORTUNITY THERE BUT.
YOU KNOW IF WE NEED A MORE
ROBUST CENTER TO RECALIBRATE AND
REBALANCE THE DESIRE TO GO
CURBSIDE VERSUS REDEMPTION
CENTER A CLEARLY THAT'S
SOMETHING TO LOOK AT I JUST
CLOSE WITH A POINT OF OPTIMISM.
.
SHOES AND HAD MENTIONED IT.
MY CLIENTS HAVE SUPPORTED WHAT
MARK MARIE HAD PROPOSED.
EARLIER IN TERMS OF THE TO
FIXTURES THAT THAT CHAIR IN THIS
COMMITTEE IS FAMILIAR WITH AND
ALSO. WE'VE SUPPORTED.
STABILIZING THE PLASTIC MARKET
DEVELOPMENT ACCOUNT AND MAKE IT
MORE ROBUST SO HOPEFULLY THERE'S
A HEARING WILL SPARK THOSE
CONVERSATIONS
THANK YOU.
CHAIRMAN PARAFFIN A JURY WHO
LEAVE ON BEHALF OF OWENS
ILLINOIS THE LARGEST GLASS
CONTAINER RECYCLING COMPANY IN
THE WORLD.
LIKE MR MURRAY EXACTLY DONE THE
THINGS. THE BEGINNING OF THE
PROGRAM AND I HAVE TO. PICK UP
ON A QUICK COMMENT MISTER PATTON
THAT YOU MADE WHEN YOU THAT WHAT
ABOUT A FOURTH CONTAINER.
I'M OLD ENOUGH TO REMEMBER WHAT
WE DID SEPARATE
PAPER LAUGH ENHANCED.
AND THE REAL CONTAMINATION WITH
LAP THAT THE CURRENT HE IS WHEN
IT PICKED UP A CURB TIED.
THE BROKEN GLASS AND BAD IN THE
PAPER.
AND THAT DIDN'T MAKE THAT
IMPOSSIBLE FOR MY CLIENT TO
RECEIVE QUALITY COLOR WHICH BY
THE WAY WE DEPEND ON.
TO LOWER OUR CARBON DIOXIDE
EMISSION COME COMMITTEE BEEN
VERY FOCUSED APPROPRIATELY ON
CLIMATE CHANGE
WE ARE.
DEPENDENT ON HIGH QUALITY COLOR
IT IN ORDER TO REDUCE OUR CARBON
FOOTPRINT.
THE WE WANT THAT CLEAN COAL IT
STREAM BUT FIND IT VERY
DIFFICULT TO GET BY THE WAY A
QUICK COMPARISON WITH OREGON.
NO THE ROOF MENTION THAT WE PAID
THE BACK END
WE'RE PAYING THIRTY PERCENT
HIGHER.
QUEEN CULLITON CALIFORNIA THEN
THEY'RE PAYING THE MIGHT COMPANY
OF PAYING IN OREGON.
I DON'T KNOW WHY AREAS BUT WE
NEED TO FIND OUT WHAT IS BECAUSE
WE'RE PAYING TOO MUCH FOR HIGH
QUALITY COLOR. THE YET TO THAT
POINT AGAIN WE NEED TO EXPLORE
EITHER REMOVING GO LAUGH OR
REMOVING PAPER FROM THAT CURB
TRIED BEEN SO THAT YOU GET A
HIGH QUALITY CALLED THAT WE NEED
IF YOU COMBINE THAT WITH. OTHER
MATERIAL TYPE OF NOT A PROBLEM
WOULD YOU CAN BUY WITH THE PAPER
YOU GET THE CONTAMINATION THAT
BECOMES A REAL CHALLENGE.
THE CHAIRMAN THANK YOU THANK THE
COMMITTEE FOR GROUP WORK.
THANK YOU ALL FOR YOUR COMMENTS
AND TO THANK YOU FOR YOUR
PRESENTATIONS YOU'RE GOING TO BE
COMING BACK IN A FEW MINUTES.
BUT WE WILL NOW SHIFT OVER TO
OUR.
INFORMATIONAL ISSUE TO THE
OVERSIGHT OF THE MATTRESS
RECYCLING PROGRAM BEGINNING WITH
A BRIEF PRESENTATION BY ASHLEY
AIMS AT THE LA AUTO.
APOLOGIZE FOR HAVING TO SAY
BRIEF BUT.
WE'RE GONNA RUN OUT OF TIME
PRETTY SOON SO WE HAVE TO MOVE
IT ALONG.
PLEASE.
I THINK YOU VERY MUCH MISTER
CHAIRMAN MISTER HAUSMAN GOOD
MORNING ACTUALLY AIMS WITH THE.
ALEJO.
SO SO MUCH BEFORE THERE'S A
BAND OUT ON THE ROAD KIND OF
JUST BE A HIGH LEVEL OVERVIEW
FOR YOU BUT PLEASE. FEEL FREE TO
STOP AND ASK QUESTIONS AS WE GO
ALONG.
PERSONAL JUST TALK A LITTLE BIT
ABOUT THE ESTABLISHMENT OF THE
PROGRAM AND AND WHAT THE
STRUCTURE LOOKS LIKE.
THEN SECONDLY I'LL TALK A
LITTLE BIT ABOUT WHAT THE BASIS
OF THE PROGRAM WAS WHICH IS THE
IDEA BEHIND IT EXTENDED PRODUCER
RESPONSIBILITY.
THIRD WE HAVE SOME INFORMATION
ON THE DIFFERENT METHODS OF
MATCHES COLLECTION UNDER THE
PROGRAM.
FOURTH US OF THE MATERIALS THAT
HAVE BEEN COLLECTED THROUGH THE
PROGRAM AND BEEN ABLE TO BE
REUSED. AND THEN FINALLY LOOKING
OUT OF THE BUDGET FOR TWO
THOUSAND EACH.
SO YOU LOOK AT THE FIRST PITCH
A.
PROGRAM WAS ENACTED IN TWO
THOUSAND AND THIRTEEN STATUTE.
.
AND IT'S ENGINE THE TO INCREASE
THE NUMBER OF MATTRESSES.
AND SO WHAT I'M SAYING
MATTRESSES I'M GONNA BE USING
THAT ONE WHERE BUT ALSO DEFERRED
A BOX.
BOX SPRINGS FOUNDATIONS LIKE
NOTHING TO.
THE RECYCLED US LIKELY TO
DEVELOP AN EFFECTIVE NETWORK.
OF COLLECTION CENTERS AND
RECYCLING FACILITIES FOR
MATTRESSES AND THEN THIRD TO TRY
TO REDUCE THE IMPACT ON
COMMUNITIES OF MATCHES THAT ARE
DUMPED ILLEGALLY. AND THOSE
ASSOCIATED CLEAN UP COSTS.
SO.
PERCENT THE LEGISLATION THE
MATTRESS PRODUCERS THROUGH THEIR
INDUSTRY TRADE ASSOCIATION DEAD
FORM THE MATTRESS RECYCLING
COUNCIL OR A MERCY. ON IN THERE
THE ONE THAT RUNS THE ONLY
CURRENTLY THE ONLY A PROGRAM ON
THE HOUSE BEEN CERTIFIED BY CAL
RECYCLE AYE WITHIN THE STATE
RIGHT NOW.
OTHER PROGRAMS FUNDED BY A FEE
THAT CONSUMERS PAY IT WHEN THEY
PURCHASE A NEW MATTRESS. ARE
CURRENTLY THE FEE IS TEN DOLLARS
AND FIFTY CENTS THAT IS
HISTORICALLY BEEN ELEVEN DOLLARS
AND WAS RECENTLY WERE.
REVISED DOWN ON JANUARY FIRST
TWO THOUSAND AND EIGHTEEN AND
THAT WAS BECAUSE EMARCY WAS
PROJECTING A SIGNIFICANT SURPLUS
FOR THE TWO THOUSAND EIGHTEEN.
YEAR.
I'M FINALLY THEM MAIN ROLE OF
THE STATE THAN IN THIS INDUSTRY
RUN SYSTEM IS MOSTLY A OVERSIGHT
ENFORCEMENT AND INCOME RECYCLE
TAKES CARE OF THAT.
SO THEN ON THE SECOND PAGE.
YOU KNOW THAT BASIS FOR THE
PROGRAM IS EXTENT USERS
POSSIBILITY OR.
SOMETIMES YOU'LL SEE A PRODUCT
STEWARDSHIP AND SO JUST THE IDEA
THAT THE PRODUCERS AND CONSUMERS
OF THESE PRODUCTS ARE OUT OF
SHOULD.
THE RESPONSIBLE FOR THE THE COST
OF THEIR I END OF LIFE EITHER
DISPOSAL OR RECYCLING.
AND.
CONCEPTUALLY THAT'S BECAUSE IF
YOU REQUIRE THEM TO PAY FOR THE
TOTAL LIFETIME COSTS THAT WOULD
INCORPORATE WITHIN THE PRICE
THAT'S PAID BY THE CONSUMER AT
THE TIME OF PURCHASE.
TO COVER ALL THE COSTS MOVES A
LITTLE BIT DIFFERENT THAN SOME
OTHER WASTE MANAGEMENT THAT
PROGRAMS WHERE A LOCAL
GOVERNMENTS AND TAXPAYERS WOULD
TYPICALLY. A COVER THOSE COSTS
THROUGH A WASTE MANAGEMENT
PROGRAM.
LOOK AT THE THIRD PAGE.
THERE'S SOME DIFFERENT.
COLLECTION METHODS THAT ARE
UNDER THIS PROGRAM.
THERE OPERATED A NETWORK OF NO
COST DROP OFF SITES WHERE YOU
CAN GO A DROP OFF YOUR MATCHES
FOR FREE AND AS YOU CAN SEE
THAT'S THE. WAY THE MOST THE
MATTRESSES ON THE STATE ARE
COLLECTED.
SECONDLY RETAILERS CAN OURS
NEED TO OFFER TO TAKE ALL
MATTRESSES BACK FREE OF CHARGE
WITH A DELIVER A NEW MATTRESS.
OF AND SO THAT'S THE SECOND MOST
COMMON.
AND THEN THIRDLY THEY DO OFFER
FINANCIAL INCENTIVE UP FOR
CONSUMERS TO TAKE THE MATTRESS I
DIRECTLY TO RECYCLING CENTERS
THEMSELVES ABOUT THREE DOLLARS.
AND THERE'S ALSO AGREEMENTS WITH
ENTITIES THAT HAVE A LOT OF
MATTRESSES. LIKE HOTELS FOR
EXAMPLE ON IN THE VALLEY
THERE'S.
COLLECTION OF AND THROUGHOUT THE
STATE ITEM THAT ARE HOSTED BY
MRC.
SO LOOKING AT THE FOURTH PITCH.
TO SEE A SENSE OF SOME OF THE
MATERIALS THAT WE'VE COLLECTED
THROUGH THIS PROGRAM FOR RE USE
OF THEM.
FEEL THE DIFFERENT COMPONENTS OF
MATTRESSES THE LARGEST ONE IS
OBVIOUSLY US STEEL WHICH MAKES A
LOT MORE THAN HALF OF THE TOTAL
AMOUNT BY. WEIGHT.
.
IN TOTAL OF FOR TWO THOUSAND
SIXTEEN FORTY SIX MILLION HOW
THE MATERIAL WAS COLLECTED ABOUT
ABOUT TWO THIRDS OF THE THE
RECYCLED OR.
USES WASTE ENERGY AND ABOUT ONE
QUARTER I WAS NUYS BLONDE ENOUGH
GOING TO LANDFILLS.
SHE'LL GET THE FIFTH PAGE.
AYE MITCHELL BEFORE THAT
THERE'S THE FEE THE FUNDS THE
PROGRAMS IS HOW THOSE FUNDS ARE.
A. PLAN TO BE SPENT IN TWO
THOUSAND AND EIGHTEEN ACCORDING
TO IMMERSE HIS BUDGET.
CLEARLY THE LARGEST COST THERE
IS THE OUT TRANSPORTATION IN THE
PROCESSING OF THE MATTRESSES
THEMSELVES. AND BUT THEY ALSO.
BRING PLUCK XIN COMMUNICATION
PUBLIC EDUCATION CAMPAIGNS.
AND IN THEIR OWN ADMINISTRATION
AND THEN THEY ALSO REIMBURSED
CAO RECYCLE FOR THAT THE COST OF
THE OVERSIGHT.
I'M.
SO WITH THAT IF THERE'S ANY
QUESTIONS HUNDRED ANSWER THOSE
NOW.
THANK YOU FOR THE PRESENTATION
IF THERE'S NO QUESTIONS WILL
MOVE ON TO.
OUR REPRESENTATION FROM CAO
RECYCLING EXTEND MISTER LEVINSON
IS HERE.
GIVE US THE REPORT.
THANK YOU MISTER CHAIR.
I AM HOWARD LEVINSON DEPUTY
DIRECTOR CAL RECYCLE AND WITH ME
IS CYNTHIA DONE. WHO SUPERVISES
OUR CARPET PAINT MATTRESS NAM
PROGRAMS?
I'VE BEEN ASKED TO GIVE YOU A
BRIEF OVERVIEW.
DESCRIBE OUR OVERSIGHT ROLE IN
SOME OF THE KEY ISSUES RICK.
.
INCLUDING RECOVERY RATE AND THE
CONTRACTING ISSUES THAT ARE
MENTIONED STAFF'S ANALYSIS
I TRY NOT TO DUPLICATE.
A WITNESS AND SAID TO THE EXTENT
THAT I KANSEN NOW TIMES.
OF THE ESSENCE HERE BUT I WANT
TO START BY INDICATING THIS ACT.
DOES FOLLOW A PRODUCER
RESPONSIBILITY APPROACH WHICH IS
A DIFFERENT MODEL THAN FOR
EXAMPLE THE BOTTLE BILL THAT
WE'VE BEEN DISCUSSING.
THIS DOES PLACE RESPONSIBILITY
FOR IMPLEMENTATION ON IN THIS
CASE THE MATTRESS RECYCLING
ORGANIZATION.
SPECIFICALLY THE MATCHES
RECYCLING COUNCIL OR MRC. AND
THEN.
THE STATE.
HAS OVERSIGHT ROLE IN THIS CASE.
VESTED BY THE LEGISLATURE CAL
RECYCLE.
SO ONE CENTRAL PREMISE OF A
PRODUCER RESPONSIBILITY APPROACH
IS THAT.
STATE ARM THE GOVERNMENT'S DOES
SET THE GOALS AND OTHER PROGRAM
PARAMETERS AND PROVIDE THAT
PROGRAM ENFORCEMENT AND
OVERSIGHT.
SO CAL RECYCLE IS TASKED WITH
DOING A NUMBER OF THINGS
INCLUDING.
APPOINTING MEMBERS OF THE
ADVISORY COMMITTEE POSTING LISTA
COMPLIANT MANUFACTURERS.
AND RENOVATORS AYE WE REVIEW
AND APPROVE THE COUNCIL'S PLAN
AND IT'S BUDGETS AND AND THE
REPORTS.
WE ARE SUPPOSED TO ESTABLISH
STATE RECYCLING.
STATE RECYCLING AND ENSURE THAT
THE COUNCIL
MAKES A GOOD FAITH EFFORT TO
COMPLY WITH THOSE GOALS AND
FINALLY CONDUCT VARIOUS ON
INSPECTION AND ENFORCEMENT
ACTIVITIES.
I THINK THE SECOND PREMISE OF A
PRODUCE RESPONSIBILITY
APPROACHES THAT THE. I IN THIS
CASE THE MRC BUT THEN THE
RECYCLING ORGANIZATION SET UP BY
THE MANUFACTURERS.
HAS CONSIDERABLE FLEXIBILITY TO
DESIGN AND IMPLEMENT A PROGRAM
TO MEET THE STATUTORY DIRECTION.
SO IN THIS CASE.
IS MS AIM SAID MRC IS REQUIRED
TO DEVELOP FINANCE AND
IMPLEMENT.
A CONVENIENT AND COST EFFECTIVE
COLLECTION TO RECOVER. AND
RECYCLE I USE MATTRESSES THAT
ARE GENERATED IN THE STATE.
SO WE DID RECEIVE OF M. R. C.'S.
PLAN FOR THIS PROGRAM IN
JANUARY OF TWENTY SIXTEEN WE
REALLY PROVED IT. IN JANUARY
TWENTY SIXTEEN IN THE BASICS OF
THE PLAN INCLUDE USING FUNDS
FROM THE MATCHES RECYCLING
CHARGE TO PROVIDE EDUCATION OUT
REACHED PARTICIPANTS.
ESTABLISHED NO COST COLLECTION
SITES PROCESS COLLECTED UNITS
THROUGH CONTRACTS WITH
RECYCLERS.
AND ESTABLISH FINANCIAL
INCENTIVES FOR REDUCING HIGH
ILLEGAL DUMPING.
EVERY JULY THE.
MATTRESS YOU PSYCH COUNCIL HAS
TO SUBMIT A BUDGET.
FOR THE NEXT YEAR CALENDAR YEAR
AND ITS ANNUAL REPORT FOR THE
PREVIOUS CALENDAR YEAR.
SO HAS MENTIONED.
THE MRC DID SUBMIT A BUDGET
THAT INCLUDED REDUCING THE
MATTRESS CHARGE ARE THE YOU TO
CHARGE PER UNIT.
FROM ELEVEN DOLLARS DOWN TO TEN
DOLLARS AND FIFTY CENTS.
I THIS SOME OF THE STAKEHOLDERS
INCLUDING THE ADVISORY COUNCIL
HAD CONCERNS ABOUT THIS
REDUCTION.
BECAUSE UP EVEN AFTER ONLY A
YEAR AND A HALF OF
IMPLEMENTATION BECAUSE OF SOME
OF THE GAPS IN. OUR COLLECTION
COVERAGE AND PROGRAM
PARTICIPATION.
CALVET SAKAL DID GO AHEAD AND
APPROVE THAT.
BUDGET REQUEST FROM THE MRC FOR
A COUPLE OF REASONS WHY ONE IS
THAT THE REQUEST MET ALL THE
VARIOUS REQUIREMENTS A STATUTE
BUT. MORE IMPORTANTLY THAT THE
DIFFERENCE IN REVENUES BETWEEN
THAT.
LEVIN DOLLARS IN THE TEN
DOLLARS AND FIFTY CENTS IS ABOUT
ONLY TWO MILLION DOLLARS.
PROJECTED FOR TWENTY EIGHTEEN
IN THE MRC HAS A RESERVE OF
ROUGHLY THIRTY MILLION DOLLARS
SO IT HAS A SUBSTANTIAL. OF FUN
THAT IT CAN DRAWN TO IT.
USE FOR ADDITIONAL ACTIVITIES
AT THIS POINT.
I HAD THE MATCH THAT COUNSEL
THEN SUBMITTED ITS.
TWENTY SIXTEEN AND REPORT.
IN MID YEAR MID TWENTY
SEVENTEEN THIS WAS THE PROGRAM'S
FIRST REPORT.
IT'S IMPORTANT OUT THAT THIS IS
THE FIRST YEAROF IMPLEMENTATION
FOR THE PROGRAM.
THE TWENTY SIXTEEN CALENDAR
YEAR AND ALSO THAT WE HAD NOT
YET ESTABLISHED.
THE RECYCLING BASELINE AND.
GOALS THAT ARE EFFECTIVE
JANUARY ONE OF TWENTY EIGHTEEN.
WE DID REVIEW THAT PLAN AND
LAST SEPTEMBER FOUND THAT THE
PROGRAM IS PERFORMING ACCORDING
TO THE REQUIREMENTS OF STATUTE
REGULATIONS.
AND IS ACHIEVING MOST THE GOALS
IN ITS PLAN.
EVEN SO WHAT ARE WE DID IDENTIFY
A NUMBER OF KEY ISSUES THAT WE
BELIEVE THE PROGRAM STILL NEEDS
TO ADDRESS.
AS IT
CONTINUES TO EVOLVE AND
MATURE.
IN THE NEXT COUPLE OF YEARS A
OF JUST MENTION THREE IN
PARTICULAR. ADEPTLY MORE
COLLECTION SITES ARE NEEDED
STATEWIDE PARTICULARLY AND RURAL
AND LOW INCOME COMMUNITIES.
ONE OF THE PROBLEMS WITH THIS.
SITUATION IS THAT NOT ALL SOLID
WASTE FACILITIES TRANSFER
STATIONS IT'S A TOUGH ONE TO
ASSESS.
THE ACTUAL IMPACT RIGHT NOW ON
RENOVATORS PARTLY BECAUSE THE
RENOVATORS THEMSELVES ARE NOT
FULLY REPORTING TO US IN OUR OWN
DATABASE.
WE'RE WORKING ON THAT.
AND THIRDLY THE.
PROGRAM STILL NEEDS TO FURTHER
ADDRESS ILL ILLEGAL DUMPING THIS
IS
STILL CONTINUES TO BE A
SIGNIFICANT CONCERN. AYE THERE
HASN'T BEEN A LOT OF
PARTICIPATION FROM LOCAL
GOVERNMENT IN SOME OF THE
PROGRAMS AT THE EMBASSIES PUT
FORTH BUT WE HOPE TO SEE THAT.
BY INCREASING THE FUTURE.
AT LAST NOVEMBER WE DID
ESTABLISH THE STATE RECYCLING
BASELINE AND GOALS ARE PURSUANT
TO STATUTE. THOSE BECOME A
FACTOR BECAME EFFECTIVE IN
JANUARY. OF THIS YEAR.
THOSE GOALS FOCUS ON INCREASING
THE NUMBER OF UNITS THAT ARE
COLLECTED FOR RECYCLING
MAINTAINING THE NUMBER OF UNITS
RENOVATED. AND INCREASING THE
PERCENTAGE MATERIALS RECOVERED
FROM RECYCLED MATTRESSES.
I ONE THING TO NOTICE THAT WE
DID NOT ESTABLISH STATEWIDE I'M
RECYCLING PERCENTAGE RATE LIKE
TRYING TO SHOOT FOR SEVENTY FIVE
PERCENT RECYCLING RATE OR
SOMETHING LIKE THAT. REASON FOR
THAT IS THAT THAT KIND OF RATE
REQUIRES TWO PIECES OF
INFORMATION.
HOW MANY MATTRESSES ARE
COLLECTED FOR RECYCLING DIVIDED
BY HOW MANY MATTRESSES ARE
ACTUALLY AVAILABLE FOR RECYCLING
WE GOT A LOT OF GOOD INFORMATION
ON THE FIRST PROPONENT PART OF
THAT? BUT WE DON'T HAVE
INFORMATION ON WHAT'S REALLY
AVAILABLE HOW OFTEN PEOPLE BRING
MATTRESSES OUT SO WE CAN'T
REALLY CALCULATOR RECYCLING RATE
AT THIS POINT.
TRYING TO GET MORE INFORMATION
ON THAT AND WE CAN. REVISIT
THESE GOALS.
IN TWENTY TWENTY AGAIN PURSUANT
TO STATUTE.
JUST A COUPLE MORE POINTS.
TO MAKE.
ONE IS THAT WE HAVE CONDUCTED
ALMOST THREE HUNDRED FIFTY
INSPECTIONS OF. RETAILERS AND
RENOVATORS AND OTHER ENTITIES
UNDER THE REGULATED UNDER LAW.
SOME OF THE STILL HAVE SOME
ONGOING INVESTIGATIONS BUT ABOUT
OVER THREE HUNDRED HAVE BEEN
COMPLETED. OF THOSE ABOUT A
QUARTER WERE FULLY COMPLIANT
HIGH IN THE INSPECTION THREE
FORCE HAD SOME KIND OF VIOLATION
IN THE FIGHT RANGE OF VIOLATIONS
IS PRETTY WIDE AND. I GIVE YOU
MORE INFORMATION ON THAT IF YOU
NEED. A ANY OF THOSE BUSINESSES
THAT HAVE.
RECEIVED A VIOLATION OUR
INSPECTORS CONTINUE TO WORK WITH
THEM TO TRY AND BRING THEM INTO
COMPLIANCE THERE'S A AND
EXPECTED DATE. FOR CORRECTIVE
ACTION THAT IS NOT PROVIDED TO
THE BUSINESS AND IN MOST CASES
THEY DO COME INTO COMPLIANCE IF
THEY DON'T WE WILL.
IMPOSE OR TAKE ADDITIONAL
ENFORCEMENT STEPS UP TO AND
INCLUDING THE IMPOSITION OF
PENALTIES BUT OUR GOAL IS. TO
AVOID THAT BRING FOLKS INTO
COMPLIANCE.
LASTLY I JUST WANTED TO SAY ONE
THING ABOUT THE BLUE MARBLE
MATERIAL SITUATION. WE'RE
CERTAINLY AWARE OF. THE CONCERNS
THAT ABUSE BEEN EXPRESSED BY
VARIOUS FOLKS ABOUT THAT
CONTRACT A HOWEVER TO PRODUCE
RESPONSIBILITY APPROACH CAL
RECYCLED DOES NOT. INTERVENE IN
CONTRACTING ISSUES IT'S REALLY A
MATTER THAT'S BETWEEN.
THE STEWARDSHIP THE MAN THE
RECYCLING ORGANIZATION THIS CASE
MRC AND ITS CONTRACTORS WE
INSTEAD LOOK AT THE OVERALL
PERFORMANCE OF THE RECYCLING
ORGANIZATION OR IN THIS CASE THE
MRC. AND MEETING THE VARIOUS
GOALS UP PUT FORTH IN STATUTE
AND INSPIRE.
THAT'S ALL I HAVE HALF RIGHT
NOW BE HAPPY TO ANSWER ANY
QUESTIONS.
THANK YOU.
WE HAVE NO QUESTIONS AT THIS
TIME AND IT.
SO THANK YOU FOR THE
PRESENTATION AND WE'LL MOVE ON
NOW TO.
HERE FROM MIKE MCDONALD.
OF THE MATTRESS RECYCLING
COUNCIL.
WELCOME.
IF YOU MISTER CHAIR MEMBERS CITY
JOINING ME THIS MORNING THOSE.
TIME SEE WITHOUT GREENBERG
TARIK.
WE SHAPE THE OPPORTUNITY. UP MY
NAME IS MICHAEL DOT ON THE
MANAGING DIRECTOR OF THE
MATTRESS RECYCLING COUNCIL
OTHERWISE KNOWN AS M. ARE SEE.
I'M PLEASED TO BE HERE TODAY TO
PROVIDE THE LEGISLATURE WITH AN
UPDATE ON OUR PROGRAM.
WELL WE ARE START UP SO TO SPEAK
WE'VE RD MADE TREMENDOUS
ACHIEVEMENTS NOT SUPPORTING THE
ENVIRONMENT BY RECYCLING
MATERIALS. THAT ARE OTHERWISE
LANDFILL IN CALIFORNIA.
AND MERCY IS COMMITTED TO THE
GOALS ESTABLISHED BY CAL
RECYCLING WILL CONTINUE TO
EXPAND THE PROGRAM.
TO MAKE IT EVEN BETTER THAN IT
IS TODAY.
S. B. TWO FIFTY FOR THE
CALIFORNIA USED MATTRESS
RECOVERY AND RECYCLING ACTIVE
TWENTY THIRTEEN. AS A GREAT
EXAMPLE OF THIS LEGISLATURE'S.
LEADERSHIP AND THE POWER OF
COLLABORATION BETWEEN GOVERNMENT
AND INDUSTRY.
AS YOU KNOW THE NONPROFIT
MATTRESS RECYCLING COUNCIL WAS
CREATED TO ADMINISTER THE
PROGRAM IT IS ACCOUNTABLE TO CAL
RECYCLE.
LAST DECEMBER NEVER SEE RELEASED
ITS FIRST ANNUAL REPORT. IN
REVEALED THAT PROGRAM RECYCLERS
COLLECTED NEARLY ONE MILLION
MATTRESSES IN TWENTY SIXTEEN.
DIVERTING APPROXIMATELY TWENTY
NINE MILLION POUNDS OF STEEL.
FOAM FIBER AND WOOD FROM
DISPOSAL IN CALIFORNIA
LANDFILLS.
IN JUST TWO YEARS OF OPERATION
WE HAVE NOW COLLECTED OVER TWO
MILLION MATTRESSES ACROSS THE
STATE.
ADDITIONALLY THE PROGRAM IS
BEGINNING TO IDENTIFY AREAS WERE
ILLEGAL MATTRESS DUMPING IS
PREVALENCE WE CAN PROACTIVELY
ADDRESS THE PROBLEM.
THE FIRST YEAR THE PROGRAM WE
IDENTIFIED MORE THAN TWENTY
THREE THOUSAND ILLEGALLY DUMPED
MATTRESSES THAT WERE REMOVED WE
CALIFORNIA'S ALLEYS SIDEWALKS
AND OTHER PUBLIC SPACES.
IN TWENTY SEVENTEEN WE INCREASE
THIS FIGURE BY OVER EIGHTY
PERCENT.
MRC IS ALSO A CONTRIBUTOR TO
CALIFORNIA'S GREEN JOBS ECONOMY.
TWENTY SIXTEEN THE PROGRAM
CONTRACTED WITH SIX RECYCLERS
OPERATING ACROSS CALIFORNIA
INCLUDING LOCAL NONPROFITS SMALL
AND MINORITY OWNED BUSINESSES
THAT PROVIDE LIFE SKILLS AND
TRAINING PROGRAMS FOR THE
DIVERSE WORK FORCES.
GROUPS LIKE THE INSTITUTES OF
SCRAP RECYCLING INDUSTRIES
ENVIRONMENTAL PROTECTION AGENCY
NATURAL RESOURCES DEFENSE
COUNCIL AND THE NATIONAL
INSTITUTES OF HEALTH. ESTIMATE
THAT FOREVER FOR EVERY TEN
THOUSAND POUNDS OF MATERIAL
RECYCLED. DOZENS OF JOBS ARE
CREATED.
AS THE PROGRAM CONTINUES TO GROW
WERE EXPANDING RECYCLING
CAPACITY IN INCREASING
EFFICIENCY SO THAT MORE
MATTRESSES AND MORE BOXSPRING TO
BE RECYCLED.
RECOVERED AND RECYCLED AT A
LOWER PER UNIT COST.
WE ARE COMMITTED TO THE
PROGRAM'S SUCCESS AND
TRANSPARENCY WITH OUR PUBLIC AND
PRIVATE SECTOR PARTNERS.
INTO THAT AND IT IS CRITICAL
THAT WE PRO ACTIVELY ADDRESS THE
CONCERNS OUTLINED IN STAFF
COMMENTS SECTION OF THE AGENDA.
AND OTHER QUESTIONS WE HAVE
RECEIVED DURING OUTREACH TO
LEGISLATURE'S AND STAFF.
FIRST AS HOWARD MENTIONED IT HAS
BEEN SUGGESTED THAT WE'VE ONLY
CHEAP TO TWENTY FIVE PERCENT
COLLECTION RATE.
THAT RATE IS DERIVED BY SIMPLY
DIVIDE IN THE NUMBER OF
MATTRESSES COLLECTED IN THE
PROGRAM IN TWENTY SIXTEEN. BY
THE NUMBER OF MATTRESSES SOLD IN
THE STATE THAT SAME YEAR. BY
CALCULATION IS NOT ACCURATE.
A MATTRESS IS NOT BOTTOM
DISPOSED OF IN THE SAME CALENDAR
YEAR.
INTERNATIONAL SLEEP PRODUCTS
ASSOCIATIONS CONSUMER RESEARCH
DEMONSTRATES THAT ONLY FIFTY
PERCENT OF MATTRESS PURCHASES
GENERATES A MATTRESS DISCARD.
ALL MATTRESSES ARE NOT ALWAYS
HEADED LANDFILLS SUMMER GIVEN TO
FRIENDS OR FAMILY. MATTRESS
REBUILD ITS PURCHASE SOME
DIRECTLY FROM RETAILERS AND
THERE APPEARS TO BE A STRONG
EXPORT MARKETS MEXICO.
I ACCURATE COLLECTION RATE IS
CALCULATED BY DIVIDING THE
NUMBER OF UNITS COLLECTED BY THE
NUMBER OF UNITS DISCARDED AND
STATE. NEITHER MRC OR CAL
RECYCLE HAVE AN ACCURATE
ASSESSMENT OF A REAL COLLECTION
RATE UNTIL WE'VE HAD ENOUGH
TIME.
TO COLLECT DISCARD DATA FROM
SOLID WASTE FACILITIES IN
CALIFORNIA.
SECOND IT'S BEEN SUGGESTED WE
ARE NOT INVESTING ENOUGH IN
PUBLIC EDUCATION AND OUTREACH
THAT IS FALSE. MERCY IS A STRONG
PUBLIC RELATIONS CAMPAIGN THAT
IS CONSISTENT WITH OUR GROWTH AS
A NEW ORGANIZATION.
CONSUMERS KNOW WHERE EDUCATION
PROGRAM IS BY BY MATTRESS.
OUR ROBUST PUBLIC EDUCATION
PROGRAM CONSISTS OF POINT OF
SALE MATERIALS.
PAID TV ADVERTISING.
RADIO PRINT MEDIA INTERNET AND
BILLBOARDS AND DIGITAL
MARKETING.
BYE BYE MATTRESSES ALSO RECEIVE
MILLIONS OF DOLLARS IN FREE
ADVERTISING.
AND PUBLICITY VALUE FROM MEDIA
COVERAGE PSAS AND GROUP GOOGLE
AD GRANT.
PRELIMINARY RESULTS FROM BYE BYE
MATCHES HIS FIRST EVER CONSUMER
AWARENESS STUDY INDICATES FIFTY
PERCENT OF CALIFORNIA RESIDENTS
KNOW THEIR MATTRESS CAN BE
RECYCLED. THIS INCREDIBLE
STATISTIC GIVEN OUR SHORT.
I'M TIME FRAME IS AN
ORGANIZATION.
AND FINALLY WE BANKS MARKED OUR
STRATEGY OUTREACH AGAINST OTHER
SIMILAR RECYCLING PROGRAMS IN
CALIFORNIA. AND WE'RE INVESTING
THE SAME PERCENTAGE OF OUR
BUDGET HAS THERE'S.
THIS DOESN'T MEAN WE CAN'T WANT
TO MORE IN THE FUTURE BUT WE ARE
CAREFUL TO MANAGE OUR RESOURCES.
APPROPRIATELY.
THIRD IT IT'S BEEN SUGGESTED
THAT EVER SEE IS NOT DOING
ENOUGH TO COMBAT ILLEGAL DUMPING
IS REQUIRED BY S. B. TO FIFTY
FOUR BUT SUCH A CONCLUSION IS
PREMATURE PASSED.
CALIFORNIA'S NEVER COLLECTED
RELIABLE DATA ON MATTRESS
DUMPING SWIMMERS HE WORKED WITH
THE CALIFORNIA. I'M SORRY CAO
RECYCLE ILLEGAL DUMPING TASK
FORCE AND THE MATTRESS ADVISORY
TO DEVELOP. AN ILLEGALLY DUMPED
MATTRESS COLLECTION INITIATIVE.
THE CONCEPT AND PAYMENT
STRUCTURE MRC PROPOSED WAS
CLEARLY DESCRIBED IN OUR TWENTY
FIFTEEN PROGRAM PLAN.
THIS IS A PUBLIC DOCUMENT WAS
SUPPORTED BY OUR STAKEHOLDERS
AND APPROVED BY CAL RECYCLE.
THE PRIMARY GOAL AT THIS EARLY
POINT THE PROGRAM IS TO COLLECT
ACCURATE DATA SO WE CAN
UNDERSTAND WHERE DUMPING IS A
PROBLEM.
COLLECTING THIS DATA IS A MAJOR
UNDERTAKING THAT REQUIRES THE
COOPERATION OF MINUTES A PALETTE
IS ACROSS THE STATE.
MRC HAS BUDGETED THREE QUARTERS
OF A MILLION DOLLARS PER YEAR TO
RESEARCH THE PROBLEM IS PAYING
COMMUNITIES FOR THE DATA THEY
PROVIDE.
AND OUR FIRST YEAR FORTY
ENTITIES PARTICIPATED THIS
INITIATIVE MORE THAN TWENTY
THREE THOUSAND ACTRESSES WERE
COUNTED REMOVED FUNK THESE
COMMUNITIES WITH MRC SUPPORT AND
FUNDING.
PARTICIPATION GREW IN TWENTY
SEVENTEEN INCREASING THE NUMBER
OF UNITS BY OVER EIGHTY PERCENT.
THIS DATA WILL BE CRITICAL GOING
FORWARD AS WE IDENTIFY WHERE
DUMPING IS A PROBLEM.
BASED ON THIS DATA WE CAN FOCUS
OUR RESOURCES ON UPSTREAM
SOLUTIONS THAT PREVENT ILLEGAL
DUMPING BEFORE IT OCCURS.
ANOTHER EXAMPLE OF A WORKING
ILLEGAL DUMPING IS A PARTNERSHIP
WITH FRESNO COUNTY IN A LOCAL
SLEEP RETAILER TO PRODUCE A
RADIO PSA TO DISCOURAGE ILLEGAL
DUMPING.
WE'RE ALSO WORKING WITH ALAMEDA
COUNTY IN A SIMILAR PROJECT IN
OF A PENDING CONTRACT WITH
ALAMEDA BEAUTIFICATION COUNSEL
TO COLLECT AND DOCUMENT.
ILLEGALLY DUMPED UNITS IN THAT
COMMUNITY.
TURNING TO TWENTY EIGHTEEN
AMMERSEE WILL RELEASE ITS OWN
PSA IN ENGLISH AND SPANISH WILL
MAKE AVAILABLE TO CITIES AND
COUNTIES. TO CO BRAND OR
CUSTOMIZE.
WE CONTINUE TO PUBLICIZE THE
INITIATIVE TO INCREASE
PARTICIPATION GATHER DATA AND
PRO ACTIVELY ADDRESS THE ISSUE.
FOURTH IS BEEN SUGGESTED THAT
SOLID WASTE FACILITIES ARE NOT
PARTICIPATING BECAUSE MRC IS NOT
PAYING ENOUGH THIS IS FALSE.
BEFORE WE LAUNCH THE PROGRAM MRC
IDENTIFIED TWO HUNDRED TWENTY
FACILITIES CURRENTLY ACCEPTING
MATTRESSES IN CALIFORNIA.
UNDER S. B. TWO FIFTY FOUR MRC
PAYS THESE FACILITIES TO COLLECT
MATTRESSES ON OUR BEHALF.
TO INCENTIVIZE FACILITY
PARTICIPATION AMMERSEE DEVELOPED
A REASONABLE COMPENSATION MODEL
IN TWENTY FIFTEEN.
BY WORKING WITH THE CAO RECYCLE
MATTRESS ADVISORY COMMITTEE AND
THE CALIFORNIA REFUSE RECYCLING
COUNCIL.
ARE APPROACH TO COMPENSATION
VERY SPOT VARIES.
AND THE AMOUNT PAID IS BASED ON
THE FACILITIES REAL COSTS.
TODAY WE'VE ESTABLISHED
REASONABLE COMPENSATION
ARRANGEMENTS WITH ONE HUNDRED
SIXTY OF THESE FACILITIES AND
ARE WORKING TO ADD THE REMAINING
SITES TO THE COLLECTION NETWORK.
THOSE WHO COMPLAIN THAT ARE
COMPENSATION METHOD IS NOT
ENOUGH FOR ASKING FOR MORE THAN
WHAT THE VAST MAJORITY OF OTHER
FACILITIES. HAVE FOUND
REASONABLE.
TO DATE ONLY FIFTEEN LOCATIONS
IN CALIFORNIA HAS STATED THAT
THEY'RE NOT INTEREST IN THE
PROGRAM. MRCS ACT BEEN IN ACTIVE
DISCUSSIONS WITH THESE ENTITIES.
MEANWHILE WE ARE CONCURRENTLY
WORKING WITH ALTERNATIVE
COLLECTORS IN THESE COMMUNITIES.
FIFTH WE HAVE BEEN QUESTIONED
REGARDING THE CONTRACT STATUS OF
ONE OF OUR RECYCLING
CONTRACTORS.
AS THE MANAGING DIRECTOR OF MRC
IS MY RESPONSIBILITY TO HOLD ALL
OF OUR CONTRACTORS TO HIGH
STANDARDS OF PERFORMANCE TO MEET
THE OBJECTIVES OF SP TWO FIFTY
FOUR. WHILE RUNNING A
FINANCIALLY RESPONSIBLE PROGRAM.
OUR AGREEMENTS WITH RECYCLING
PARTNERS ARE CLEARING WE EXPECT
THEM TO BE HONORED.
WHERE THERE ARE DEFICIENCIES WE
WORK CONSTRUCTIVELY TO TAKE
CORRECTIVE ACTION TO ADDRESS
PERFORMANCE ISSUES? WERE HOPEFUL
THAT THEY CAN BE ADDRESSED.
FINALLY WE'VE BEEN ACCUSED
PREMATURELY LOWERING THE
PROGRAMS RECYCLING FEE THAT IS
NOT THE CASE.
S. B. TWO FIFTY FOUR REQUIRES
MRC TO ESTABLISH A FUNDING LEVEL
SUFFICIENT TO COVER THE PLANS
BUDGET COSTS.
AND OPERATE THE MATTRESS
RECYCLING PROGRAM OVER A MULTI
YEAR PERIOD ANY PRUDENT AND RIP
UP FINANCIALLY RESPONSIBLE
MANNER.
I'M ARE SEIZED. MANAGES ITS
BUDGET IN A WAY THAT RESPECTS
THE LEGISLATIVE INTENT OF SP TWO
FIFTY FOUR. AND THE TAXPAYERS
WHO PAY THE POINT OF SALE FEE.
OUR OPERATING BUDGET IS APPROVED
BY CAL RECYCLING AN ANNUAL
BASIS.
AND OUR ANNUAL FINANCIAL
STATEMENTS ARE EXTERNALLY
AUDITED.
THE PROGRAM HAS SUFFICIENT
REVENUE TO MEET OUR OBJECTIVES
AND GOALS OF RAMALLAH YEAR
PERIOD WHILE ALSO MAINTAINING
OUR SUFFICIENT RESERVES.
WE MET OUR TWELVE MONTH TARGET
MORE QUICKLY THAN EXPECTED AND
SUBSEQUENTLY LOWERED ITS BE BY
FIVE PERCENT TO RIGHT SIZE THE
PROGRAM.
OTHER CALIFORNIA PRODUCT
STEWARDSHIP PROGRAMS HAVE
ENCOUNTERED SUBSTANTIAL
CRITICISM FROM THE ENVIRONMENTAL
COMMUNITY FOR RUNNING.
SUBSTANTIAL AND EXCESSIVE
RESERVES MRC PROACTIVELY COUNTER
THESE CRITICISMS BY PROVIDING A
MODEST FEE REDUCTION AND CAL
RECYCLE APPROVED THIS ACTION.
AS A START UP ENTERPRISE.
ACCOMPLISHED NEARLY ALL OF OUR
STATED OBJECTIVES IN THE TWENTY
FIFTEEN PROGRAM PLAN.
WE MATTER TWENTY SEVENTEEN
COLLECTION GOAL AND WE'RE ON
PACE TO ACHIEVE OUR TWENTY
EIGHTEEN TARGET.
OUR SUCCESS TO DATE IS NOT A
CEILING. BUT A FLOOR UPON WHICH
WE INCREASE OUR SERVICE LEVEL.
PUBLIC OUTREACH EFFORTS AND LONG
TERM PLANS TO MEET AND EXCEED
THE RECYCLING OBJECTIVES
ESTABLISHED IN TWO FIFTY FOUR.
ANY SUGGESTION THAT AMOROUS
YEARS REDUCING OUR SERVICE LEVEL
COMMUNICATIONS EFFORT FOR LONG
TERMS OBJECTIVES AS WITHOUT
BASIS.
MY COMPLETED CONCLUDING POINT IS
THAT WE HAVE IMPLEMENTED A
PROGRAM THAT GOVERNOR BROWN AND
EVERY MEMBER OF THE STATE
LEGISLATURE. CAN POINT TWO IS A
GREAT EXAMPLE OF GOVERNMENT AND
BUSINESS COLLABORATION.
AND MERCY AND IT'S BY BY
MATTRESS PROGRAM SUPPORTS GREEN
JOBS CLEANS UP COMMUNITIES AND
SUPPORTS THE ENVIRONMENT AND IS
A PUBLIC PRIVATE PARTNERSHIP
THAT WE CAN ALL BE PROUD OF.
LIKE TO THANK YOU FOR THE
OPPORTUNITY TO SPEAK TODAY. TAKE
ANY QUESTIONS THAT YOU MAY HAVE.
MISTER PATTERSON.
THANK YOU.
WELL YOU CITED FRESNO.
FOUND.
FIRST OF ALL A UP.
I VOTED FOR THIS AB
A BIT RELUCTANTLY.
.
OUT WENT THROUGH IT.
.
A SERIES OF THE TALK SHOWS IN
FRESNO THAT.
SAID IT'S A MATTRESS TAX.
IF I RECALL THAT THE.
.
INITIAL HEARINGS AND ALL.
A.
THESE MATTRESSES IN OUR.
IT ALL OVER THE PLACE.
I'M I'M I'M WILLING TO.
SUPPORT AND GIVE THIS OPERATION
A REAL A REAL CHANCE TO SUCCEED.
NUMBER HAVING SAID THAT I HAVE A
DOG IN TWO.
A LOT OF THE REPORTING ALL OF
THIS I HAVE TALKED TO OUR FOLKS
BACK HOME.
NOT NUMBER ONE.
THIS IS REALLY WORKING.
AND IT'S REALLY WORKING.
WE ARE SEEING A REDUCTION AND
THE. MATTRESSES THROWN AROUND.
BACKYARDS I WE ARE SEEING.
.
SUBSTANTIAL COMMUNICATION ABOUT
THE USE OF IT.
AND SO WHAT I.
TO ME.
THESE EVIDENCES ARE WHAT THIS.
PROGRAM INITIALLY WANTED TO TRY
TO ACHIEVE WHICH WAS A. THUG
GOOD RECYCLING A GOOD REDUCTION.
FAIRLY FAIRLY PRICED.
COMMUNICATED WELL.
OUR EXPERIENCE HAS BEEN YOU'VE
DONE YOUR JOB AND.
AYE BUT FIRST I WANT TO SAY
THANK YOU.
.
OBVIOUSLY THERE AREAS TO IMPROVE
YOUR NEW OBVIOUSLY THERE AT AT
YOU KNOW THIRTY.
MILLION DOLLAR RESERVE PER
SURPLUS THOSE KINDS OF THINGS.
YOU HAVE FOR A START UP ISSUES
AND MANAGEMENT DUH.
BUT CHALLENGES LIKE IT LIKE
EVERYBODY BUT I REALLY THINK IF
YOU LOOK STEP BACK AND LOOK WHAT
YOU SEE AS A.
OKAY A OUT OF A REALLY GOOD
START AND A WILLINGNESS TO
RECOGNIZE THAT FEES DON'T ALWAYS
HAVE TO GO UP.
AND MATT AS A FIRST TIME I'VE
EVER SAT ON THIS COMMITTEE OR
ANY OTHER BUDGET COMMITTEE IN
WHICH WE'VE ACTUALLY SEEN A FEE.
THE CLIENT SLIGHTLY I THINK THIS
IS EVIDENCE OF GOOD MANAGEMENT.
AND I THINK A LOT OF THE
CRITICISMS ARE.
I JUST THINK UNNECESSARY AND AND
REALLY DON'T GET TO THE TARGET
FROM FROM OUR STANDPOINT AND.
THE FRESNO REGION.
WE APPRECIATE IT AND.
I'M GLAD I VOTED FOR QUITE
FRANKLY.
I HAVE DONE AGAIN AND TAKE TAKE
A LOOK AT.
SOME OF THESE.
RECYCLING RATES.
AND.
ON THE SOME OF THE MATERIAL THAT
WAS PASSED OUT HERE.
IT LOOKS TO ME LIKE I.
YOU GOT SIX.
YOU GOT SIX RECYCLERS.
IN TOTAL THAT RIGHT SIX ACROSS
THE STATE.
MOST OF THEM.
ARE PRODUCING.
CLOSE TO THAT THE SEVENTY FIVE
PERCENT GOAL OF GETTING CLOSE TO
MY RIGHT THAT'S CORRECT.
I NOTICE ONE.
OF THE SIX.
I LOOKS TO BE DRAGGING DOWN THE
REST WITH A WHAT I HAVE TO
SUGGEST AS AN ABYSMAL
PERFORMANCE.
PART OF THE MANAGEMENT
PART OF THE RESPONSIBILITY.
IS TO.
ENGAGE RECYCLERS.
HOLD THEM ACCOUNTABLE TO A
PERFORMANCE STANDARDS.
ARE AND IF NECESSARY CHANGE THEM
OUT FOR THE GOOD OF THE ENTIRE
PROGRAM.
WHAT ARE YOU DOING AT AT TO?
?
FIX WHAT AMOUNTS TO.
ONE OF THE SIX DRAWING EVERYBODY
ELSE DOWN I THINK THAT'S A
SIGNIFICANT READ FLANK HERE THAT
I'D LIKE TO ASK HOW YOU THINK
YOU'RE GONNA GO ABOUT.
OF FIXING THAT PROBLEM.
WE BELIEVE THESE ARE FIXABLE
PROBLEMS WE ARE WORKING WITH
THAT PARTICULAR RECYCLING TO
INCREASE THEIR RECYCLING.
OBVIOUSLY EVERYTHING THAT THAT
AMMERSEE PUT TOGETHER WE
DESIGNED THE ENTIRE PROGRAM
AROUND TWO FIFTY FOUR THE
OBJECTIVES.
AND.
AND WE'VE BEEN WORKING
COOPERATIVELY WE FELT WITH THE
ADVISORY COMMITTEE IN WITH CAL
RECYCLE TO GET THIS PROGRAM OFF
TO A FASTSTART. AGAIN OF FIVE
DELINQUENT PERFORMERS THE
PROGRAM.
OUR OUR FIRST.
GOAL IS TO GET MAKE THEM AND GET
THEM TO BE COMPLIANT.
TOP BUT WANT ONE FINAL.
.
IT IT.
IT SEEMS LIKE THAT DE THIS ONE
OUT OF SIX.
ISN'T JUST MISSING THE MARK
SLIGHTLY.
IT LOOKS LIKE THEY'RE DRAGGING
THE REST OF THE WHOLE OPERATION.
DOWN BUT.
DO YOU HAVE ADEQUATE.
I GUESS STATUTORY OR REGULATORY
OR. MANAGEMENT RESPONSIBILITY.
TO GET THEM INTO A MUCH BETTER
PERFORMANCE OR FIND SOMEBODY
ELSE DO THE JOB.
WE DO WE DO THANKS.
YOU KNOW THE.
THE SECONDARY MARKETS FOR
MATTRESS COMMODITIES
FORTUNATE DON'T HAVE THE SAME
CHALLENGES
THE BOTTLE BILL BECAUSE RIGHT
NOW.
MY HIGHEST PERFORMING RECYCLERS
EXCEEDED NINETY PERCENT RECOVERY
RATE BY VOLUME OF THE MATERIALS
THAT THEY HAVE.
SUMMIT THESE HAD SPECIALLY
MARKETS FOR CERTAIN COMMODITIES
WEBER IT MAY BE.
BUT AGAIN OUR TARGET FOR OLIVER
RECYCLERS HAS TO HIT THAT
SEVENTY FIVE PERCENT MARK
OKAY APPRECIATE THAT A LOT OF
THE TIME MISTER CHAIRMAN.
THAT THAT CONCLUDES MY
QUESTIONS BY THINK OFF TO GOOD
START AND CENTRAL CALIFORNIA. I
THINK WE'RE APPRECIATING IT MORE
AND MORE.
THAT MISTER THANK YOUR FINAL
PRESENTATION WILL BE.
HEIDI AND BORN THE EXECUTIVE
DIRECTOR OF THE CALIFORNIA
PRODUCT STEWARDSHIP COUNCIL.
WAS GOING TO SAY GOOD MORNING
BUT HE EARNED GOOD AFTERNOON IF.
WE ARE.
SO THANK YOU MISTER CHAIRMAN
COMMITTEE MEMBER.
.
MY DECEMBER AND EXECUTIVE
DIRECTOR OF THE CALIFORNIA
PRODUCT STEWARDSHIP COUNCIL A
PUBLIC BENEFIT NONPROFITS THAT
EDUCATES AND ADVOCATES. FOR
PRODUCERS TO BE THE PRIMARY
RESPONSIBLE PARTY TO FUND DESIGN
AND RECYCLE THEIR PRODUCT WASTE.
I ALSO HAPPEN TO BE A MEMBER OF
THE MATTRESS ADVISORY COMMITTEE.
CPSC HAS A FOURTEEN MEMBER BOARD
OF PUBLIC AND PRIVATE SECTOR
MEMBERS AND WE JUST CELEBRATED
OUR TENTH ANNIVERSARY WE FORMED
IN TWO THOUSAND AND SEVEN TO
PROMOTE. POLICIES THAT MOVE AWAY
FROM GOVERNMENT FUNDED AND
OPERATED PROGRAMS WHICH WERE NOT
SUSTAINABLY FUNDED OR MEETING
THE SOURCE REDUCTION GOALS OF AB
NINE THIRTY NINE.
FOR PRODUCER RESPONSIBILITY
POLICIES ARE WHITE USED WIDELY
AROUND THE WORLD FOR A VARIETY
OF PRODUCTS INCLUDING PACKAGING.
WE HAVE FOCUSED ON TOXIC AND
PROBLEMATIC PRODUCTS THAT THAT
THAT DID NOT HAVE A MARKET
VALUE.
TO REDUCE WASTE WHICH IS THE
LEAST EXPENSIVE OPTION. WE NEED
TO PROVIDE FINANCIAL INCENTIVES
FOR PRODUCERS TO DESIGN PRODUCTS
WITH RECYCLING IN MIND AND
PROVIDE FINANCIAL DISINCENTIVES.
THROUGH POLLUTER PAYS MODELS
SUCH AS EXTENDED PRODUCER
RESPONSIBILITY OR EPR.
IS A BETTER WAY TO ACHIEVE THE
GOALS OF GREEN DESIGN AND
ACHIEVE THE HIGHEST LEVELS OF
REDUCE AND RECYCLING.
WE'VE BEEN THE STRONGEST
EDUCATORS AND ADVOCATES FOR WELL
THOUGHT OUT POLICIES TO MANAGE
WASTE TO GET AWAY FROM PUBLICLY
FINANCED THE MANAGE SYSTEMS.
GROW GOVERNMENT AND CAN LACK
RESPONSIVENESS TO CHANGING
MARKETS AND TECHNOLOGICAL
INNOVATIONS.
THIS IS WHY. WE WERE CONCERNED
WHEN THE MATTRESS LEGISLATION
CONTINUE TO MOVE AND BE PASSED
WITHOUT INCLUDING SOME OF OUR
KEY RECOMMENDATIONS.
AND FACT CBC WITH SACRAMENTO
COUNTY AND THE CITY OF CHULA
VISTA WITH THE LAST OPPONENTS OF
AB TWO FIVE SP TWO FIVE FOUR.
AND SENT A LETTER IN AUGUST THE
TWENTY THIRTEEN A COPY OF WHICH
I PROVIDED.
HIGHLIGHTING SPECIFIC CONCERNS
AND PROPOSED AMENDMENTS TO FIX
THE BILL.
THE FUNDAMENTAL PROBLEM IS THAT
THE FEE MONEY WAS HANDED OVER
TWIN INDUSTRY GROUP WE BELIEVE
WITHOUT ENOUGH TRANSPARENCY OR
RESTRICTIONS ON HOW THEY COULD
USE THE MONEY.
OUR LETTER LISTED FIVE KEY
CONCERNS
FIRST THAT LOCAL GOVERNMENTS AND
THE SOLID WASTE INDUSTRY HAVE NO
REPRESENTATION ON THE BOARD OF
THE STEWARDSHIP PROGRAM.
TO THE NEED TO PROVIDE ADEQUATE
REIMBURSEMENTS TO LOCAL
GOVERNMENTS AND SOLID WASTE
FACILITIES FOR COSTS ASSOCIATED
WITH THE PROGRAM.
THREE THE NEED FOR CLEARLY
ARTICULATED RECYCLING GOALS TO
BE SET BY CAO RECYCLE RETURN
FORCIBLE AND NOT VAGUE.
FOR TO SHORTEN A DEADLINES TO
HOLD MRC ACCOUNTABLE FOR
PERFORMANCE AND FIVE TO CLOSE A
LOOPHOLE IN THE DEFINITION OF
MATTRESSES MATTRESS RETAILERS TO
ENSURE THE FULL FUNDING OF THE
PROGRAM.
AT THE BOTTOM OF THE OF THE
LETTER WE STATED WE WANT TO
SUPPORT SB TWO FIVE FOUR AND
HOPETHAT YOU WILL CONSIDER
THESE AMENDMENTS IN THE SPIRIT
WITH WHICH THEY ARE GIVEN. TO
SIMPLY ENSURE THAT THE PROGRAM
WILL WORK WELL.
AND THAT IS ALL WE WANT ARE
PROGRAMS THAT ARE SUSTAINABLY
FUNDED. OPERATED AND BY THE
APPROPRIATE PARTIES AND THAT
WORK AND I'M DELIGHTED TO HEAR
HOW WELL IT'S WORKING AND FRESNO
I CAN TELL YOU THAT IS NOT THE
CASE FOR EVERY COUNTY. IN
CALIFORNIA BUT I'M REALLY GLAD
AND IT IS WORKING AND SOME
COMPANIES.
WHY MERCY HAS HAD THE SMOOTHEST
ROLL OUT OF ANY OF THE PROGRAMS?
THE CURRENT PROGRAM IS NOT WHERE
IT SHOULD BE FOR A BILL THAT WAS
PASSED IN TWENTY THIRTEEN.
SOME OF THE REASONS OUTLINED IN
THE LETTER OF THE BECAUSE OF
THESE CURRENT PROBLEMS SUCH AS
NOT HAVING. LOCAL GOVERNMENTS
ARE SOLID WASTE INDUSTRY ON THE
BOARD OF THE STEWARDSHIP PROGRAM
SO THEY WOULD UNDERSTAND
EXISTING INFRASTRUCTURE BE ABLE
TO WORK WITH A BETTER.
HOWEVER THE BEST WAY WOULD HAVE
BEEN FOR US TO HAVE NEVER GIVEN
PUBLIC FEE MONEY TO A BOARD THAT
IS ESSENTIALLY.
THE SAME BOARD AS IT IS BY THE
INTERNATIONAL SLEEP PRODUCTS
ASSOCIATION. WHO QUOTE FROM
THEIR WEBSITE WORKS HARD EVERY
DAY ON BEHALF OF US BUT MEMBERS
TO CREATE A STRONGER MATTRESS
INDUSTRY?
AND THIS IS THE SAME POTENTIAL
CONFLICT OF INTEREST WE HAVE IN
THE CORPORATE PROGRAM WHERE THE
CARPET AND RUG INSTITUTE MEMBERS
ARE BASICALLY THE SAME BOARD ON
THE CARE BOARD.
THE LEGISLATION PASSED IN TWENTY
TEN AND TWENTY THIRTEEN ON P.
CARPET AND MATTRESSES.
A HYBRID POLICY APPROACH IS WHAT
IT IS MEANING THAT THE TO REDUCE
PRODUCER OPPOSITION TO THE
BILL'S. ALL OF THEM ELIMINATED
THE PRODUCER PAY PORTION.
INSTEAD TOOK CONSUMER FEES.
AND GAVE IT TO A PRIVATE SECTOR
ENTITY.
WITHOUT ENOUGH TRANSPARENCY OR
OVERSIGHT OUR OPINION.
FOLLOW THE MONEY IS ONE OF MY
FAVORITE SAYINGS BECAUSE IT
EXPLAINS A LOT.
IN THIS CASE HANDING PUBLIC FEE
MONEY TO OTHER STATE INDUSTRY
GROUPS WITHOUT ENOUGH CONTROLS
RISKY.
WE FOUND THAT OUT THE HARD WAY
WHEN PINK HERE USE THE FEE MONEY
TO SUE CAO RECYCLE BECAUSE THEY
DIDN'T LIKE THE REGULATIONS FOR
OVERSIGHT. AND NOT ONLY PAID FOR
THE LAWSUIT BUT PAID FOR THE
APPEAL AND PAID FOR BOTH SIDES
INCLUDING COVER CYCLES PORTION.
WE BELIEVE THAT STEWARDSHIP
ORGANIZATIONS THAT ARE BASED OUT
OF STATE AND USE CALIFORNIA
MONEY. WHICH IS NOT THEIRS HAVE
THE PRIMARY GOAL TO KEEP THE FEE
LOW ON THEIR PRODUCTS.
NOT NECESSARILY MAXIMIZING
SOURCE REDUCTION AND RECYCLING
OR THE SUCCESS OF THE PROGRAM.
AS EVIDENCE OF THIS MRC REDUCED
THE FEE AS THEY EXPLAINED LAST
YEAR FIFTY CENTS FROM ELEVEN
DOLLARS TO ATTEND FIFTY A UNIT.
WITH UNANIMOUS OPPOSITION FROM
THE ADVISORY COMMITTEE AND THE
CREW I ADVISORY COMMITTEE
RESPECT BY CAO RECYCLES DIRECTOR
AND REPRESENTS ALL THE
STAKEHOLDERS OF THE STATE NOT
ONE OF US SUGGESTED THAT THIS
SHOULD HAPPEN.
SO HOW DID IT HAPPEN.
BECAUSE THE BILL WAS WRITTEN SO
THE BUDGET COULD BE APPROVED
SEPARATELY FROM THE STEWARDSHIP
PLAN. AND THE ADVISORY COMMITTEE
MEMBERS HAVE NO POWER.
IF THE MONEY WAS BEING SPENT TO
ENSURE THE PROGRAM WAS WORKING
WELL FOR CALIFORNIANS.
THE RESERVE WOULDN'T BE THIRTY
MILLION DOLLARS TWO YEARS INTO
THE PROGRAM THERE IS A LOT TO DO
AND WE COULD HAVE SPENT THAT
MONEY ON MAKING SURE ALL THE
COUNTIES ARE GETTING THE SAME
SERVICE AT PRESENT WAS GETTING.
I POSE A QUESTION TO OUR
SUPPORTERS. ASKING FOR STORIES
OF WHAT WAS OR WASN'T WORKING
WITH THE PROGRAM.
ONE RESPONSES FROM ALAMEDA
COUNTY A COUNTY SUPERVISOR WHO
WAS SO UPSET AT STILL SILLY SEEN
MATTRESSES ON THE STREETS HE
WANTS TO FIX THE LEGISLATION.
AND OTHER RESPONSES FROM THE
CITY OF DAVIS AND WE SHARED WITH
YOU THE PICTURES.
OF SO YOU HAVE THAT HANDOUT.
OF THE MATTRESSES THE PILOT
EVERY AUGUST WHICH IS NORMAL FOR
MOST UNIVERSITY TOWNS.
IT MRC SUSPENDED THEIR LARGE
VOLUME PROGRAM AN EARLY TWENTY
SEVENTEEN WHICH SERVICE THE
UNIVERSITIES THE RETAILERS AND
THE HOTELS.
SO I MERCY STILL HAS NO PROGRAM
TO DEAL WITH UC DAVIS ANY
COLLEGE IN THE STATE OF
CALIFORNIA AND SO THAT PROGRAMS
REINSTATED.
SO ALL THE MATTRESSES IN THOSE
PICTURES THAT GO TO LANDFILL.
THEIR MANY MORE STORIES AND SOME
WILL TESTIFY TODAY SUCH AS DOWN
OR COUNTY.
BUT IN SHORT THE PROGRAM IS
DEFINITELY NOT PROVIDING EACH
FEE PAYER.
WHICH IS REQUIRED BY LAW.
ACCESS TO RECYCLING NOR
PROVIDING LOCAL GOVERNMENTS WITH
RELIEF FROM THE COSTS IN THE
BLADE FROM ILLEGAL DUMPING THAT
THEY WERE PROMISED.
WHAT WE SUPPORTED PAINT BECAUSE
THAT INDUSTRY AND WORK FOR TEN
YEARS WITH MULTIPLE STATE AND
LOCAL GOVERNMENTS TO DESIGN A
MODEL BILL?
IT WAS A REALLY GOOD START AND
IT STILL WORKS WE THINK THE BEST
OF ALL THE PROGRAMS TO DATE.
THE CARPET A MATTRESS BILLS WERE
MOVING FURTHER AWAY FROM THE
POLICY MODEL WE KNEW WOULD WORK.
THEY'RE STILL AND WE ARE STILL
UNCLEAR IN FACT HOW CALIFORNIA
WOULD GET OUR FEE MONEY BACK
FROM ANY STEWARDSHIP
ORGANIZATION OF CAO RECYCLE
DISAPPROVED THE PLAN. AND AND
THERE WAS CHANGE OF AN
ORGANIZATION RUNNING THE
PROGRAMS.
THAT'S ANOTHER PROBLEM FOR
ANOTHER DAY BUT THAT WOULD KEEP
ME UP AT NIGHT WORRYING IF WE'RE
GONNA GET OUR MILLIONS OF
DOLLARS BAC IF WE NEEDED TO
CHANGE OWNERSHIP OF THAT
PROGRAM.
WHY WE APPRECIATE WHATEVER SCENE
HAS DONE AND WE DEFINITELY DO
AND WE WORK CLOSELY WITH THEM IN
FACT EVERY TIME I GO TO COMPLAIN
OR SOMETHING I SHARE IT WITH
THEM SO THEY GIVE THE
OPPORTUNITY TO FIX IT?
WE HAVE A LONG WAY TO GO.
FOR US AND PRODUCING THE FEE
AGAINST THE RECOMMENDATION OF
THE ENTIRE ADVISORY COMMITTEE
WHEN THE PROGRAM IS NOT FULLY
ROLLED OUT. NOR WORKING WELL IN
SOME CASES TO US WAS JUST
UNACCEPTABLE.
HERE'S MS KEY SUGGESTIONS FOR
MRC TO IMPLEMENT IMMEDIATELY TO
IMPROVE THE PROGRAM PERFORMANCE.
ONE HIRE MORE STAFF AND GET
EVERY COUNTY THE SERVICE THEY
PAY FOR WE STILL HAVE A COUNTIES
WITHOUT SERVICE.
TO REINSTATE THE LARGE VOLUME
PROGRAM AND FUND SERIOUS
ADDITIONAL EFFORTS ON MARKET
DEVELOPMENT WE CAN'T PULL THINGS
OUT OF THE WAY STREAM IF WE HAVE
NO MARKET FOR THEM.
THREE ENCOURAGE RECYCLERS TO
FORWARD REBUILDABLE MATTRESSES.
TO ONE OF THE MANY MATCHES
RENOVATORS IN THE STATE FOR
HIGHEST AND BEST USE THAT WAS A
PROMISE OF THE BILL THAT WE
WOULD NOT HURT THE RENOVATORS
AND I'M HEARING FROM THE
RENOVATORS. THEY ARE BEING HURT
BY THIS PROGRAM AND MATCHES IS
THE COULD OF BEEN RENOVATED ARE
BEING RECYCLED INSTEAD.
FOR PROMOTE MUCH MORE HEAVILY
THE RETAIL TAKE BACK PROGRAM
BECAUSE WE THINK THAT'S THE MOST
CONVENIENT IF MORE PEOPLE KNEW
ABOUT IT THEY WOULD ASK FOR IF
THE RETAILER AND PROVIDED.
FIVE IMMEDIATELY REMOVE THE CAP
OF ONLY ALLOWING FIVE MATTRESSES
BE COLLECTED AND BROUGHT TO
RECYCLERS PER DAY WHICH IS
FORCING COLLECTORS LITERALLY TO
DRIVE ACROSS TOWN BECAUSE IT CAN
ONLY DROPPED FIVE YEAR AND THEY
HAVE TO DROP FIVE YEAR AND THEN
FIGHT HERE.
AND SIX IS TO INCREASE THE
REIMBURSEMENT FROM THREE DOLLARS
PER MATTRESS RECYCLE TO A HIGHER
NUMBER.
THREE DOLLARS REALLY IS ENOUGH
FOR MOST PEOPLE TO COLLECT AND
RECYCLE MATTRESSES.
WE ARE REASONABLE BUT WE HAVE
HIGH EXPECTATIONS FOR GOOD
REASON.
WE JUST WANT POLICIES AND
PROGRAMS THAT WORK FOR
EVERYBODY.
WE STUDY AND UNDERSTAND THE
DETAILS OF HIS POLICIES IN THEIR
IMPLEMENTATION AND ARE ARE
AVAILABLE TO SHARE THESE
INSIGHTS.
WE WILL CONTINUE TO FIX EXIST
EXISTING PROGRAMS. AS OUR
AFFILIATED ORGANIZATION THE
NATIONAL STORAGE OF ACTION
COUNCIL DID LAST YEAR WITH
CARPET AND AB ELEVEN FIFTY EIGHT
AND PARTNERSHIP WITH THIS
LEGISLATURE.
WE HOPE WITH YOUR HELP TO PASS
NEW LAWS.
WITH HIGHER STANDARDS TO ENSURE
FOR ALL CALIFORNIANS OF THESE
PROGRAMS WILL WORK.
SO THANK YOU VERY MUCH FOR YOUR
TIME.
THANK YOU ARE A MYTH AND WARNED
THAT A STAFF COMMENTS THAT REFER
TO THE JOINT LEGISLATIVE AUDIT
THAT IS UNDER WAY AND. I'M KIND
OF RECOMMENDATION.
IS TO ALLOW THAT OUGHT TO
PROCEED AND THEN.
SEE WHAT THE RECOMMENDATIONS
ARE AND THAT.
PRESUMABLY ACTED. ODD YOU HAVE
SOME COMMENTS ON THAT.
YES I THINK IT'S A GREAT THING
TO MAKE SURE WE'VE GOT GOOD
OVERSIGHT OF THESE PROGRAMS.
OUR CONCERN IS THAT YOU KNOW
OUR PUBLIC MONEY IS IS BEING
GIVEN TO GROUPS THAT.
RIGHT NOW IN THIS LAW THEY
COULD PHARMACY SIX AND MOVE IT
FROM C. THREE WHICH IS A PUBLIC
BENEFIT CORPORATION TO A C. SIX
WHICH IS A MEMBERSHIP BENEFIT
ONLY ORGANIZATION. VERY
DIFFERENT UNDER IRS RULE MEANING
THEY COULD SEE THAT THE BENEFITS
OF THEIR MEMBERS IS REALLY NOT
TO HAVE THE PROGRAM WORK THEY
DON'T LIKE IT. AND THEY COULD
SABOTAGE IT LEGALLY BE ABLE TO
DO THAT THESE ARE LITTLE FIXES
THAT WE'VE LEARNED.
THAT WE HAVE DONE A WHOLE WHITE
PAPER AND HAD AN EXPERT ATTORNEY
DO A WHITE PAPER ON THAT VERY
THING.
BECAUSE WE'VE SEEN THAT IN THE
LOCAL ORDINANCES AS WELL WHERE
THE PHARMACEUTICAL INDUSTRY HAD
FORMED A SISSY SIX AND THEY'RE
DELAYING WE THINK IT'S BECAUSE
THEY DON'T HAVE TO ACT FOR THE
PUBLIC BENEFIT.
.
SO THERE'S LOTS OF LITTLE
NUANCES THAT NEED TO PROBABLY BE
TWEAKED WE LEARNED THIS OVER
TIME I MEAN THIS IS AND AS YOU
SAID IT'S A GREAT START.
BUT WE'VE GOT IMPROVEMENTS TO
MAKE AND WE DO HAVE
JURISDICTIONS THAT ARE GETTING
THE SERVICE THEY'RE PAYING FOR
WE JUST WANTED TO WORK FOR
EVERYBODY.
HE SAID THERE ARE EIGHT TO.
ONE MOMENT MISTER PATTERSON NOW
THERE'S A COUNTIES THAT
CURRENTLY HAVE. A NO PROGRAM AT
ALL ACCORDING TO MRC.
LAST PRESENTATION WE HAVE THE
POWER POINT YES.
ARE ARE THOSE SAID A RURAL
COUNTIES TO OUR RURAL IS OUR
UNDERSTANDING AS TO SIX ARE NOT.
RIGHT.
TO.
.
I DON'T OF THE LIST OKAY YEAH
WELL MAYBE AN ARTICLE.
SURE THAT.
I KNOW DEL NORTE COUNTY IS ONE
COUNTY THAT'S REALLY ON HOW YOU
GET THERE YEAH THE UP.
PATTERSON YEAH THANK YOU MISTER
OF.
I WAS A BIT OF A.
SOMEWHAT STARTLING CHARGE.
THAT THEY WILL DO SOMETHING LIKE
YOU HAVE OUTLINED COULD I HAVE
THE MRC PEOPLE UP PLEASE.
WITH RESPECT TO CHANGING THEIR
ORGANIZATION.
.
IT IT.
YEAH I'M NOT I'M NOT ACCUSING
THEM OF NO I I'M JUST SAYING
IT'S A PUT IT. THE WAY THE LAW
WAS I UNDERSTAND I'M TRYING TO
FIND OUT.
ARE YOU INTERESTED OR DO YOU
INTEND TO TAKE THE ACTION THAT
YOU JUST MENTIONED.
CHANGE THE THE IRS STATE THE
IRIS.
.
FROM THAT SEAT THREE TO A SEAT
SIX YEAH.
NOW WITH THE FULL SUPPORT OF
INDUSTRY FOR THE PROGRAMS THAT
WERE IMPLEMENTED CALIFORNIA'S
NOT THE ONLY STATE. WITH A
MATTRESS RECYCLING PROGRAM WE
ALSO THAT'S UP THAT'S OFF THE
TABLE.
ABSOLUTELY OKAY.
APPRECIATE IT THANK YOU OF
MISTER MEMBER.
SURE OF THANK YOU ADJUST TO
THINGS REAL QUICK.
.
MISS SANBORN REFERENCED SP TWO
FIFTY FOUR NUMBER OF TIMES.
I'D LIKE TO ROAM ALL REMIND
EVERYBODY HERE IN THE AUDIENCE
WHO ALL THERE'S THIS AND
RESPONSE YES PATTERSON'S
QUESTION.
OR YOU MAKING A SEPARATE POINT I
WAS MAKING A SEPARATE POINT.
THE ARE JUST NOT AN OPPORTUNITY
FOR THAT YOU CAN RESPOND TO
QUESTIONS.
FORGET AND IF YOU ARE I DON'T
KNOW IF YOU'RE PLANNING ON
GETTING UP AND SPEAKING IN
PUBLIC COMMENT.
BUT I'M NOT GO LET YOU DO BOTH
SIT AT THE TABLE AND MAY I MAKE
MY DO NOT MATCH OF THE LATTER.
YEAH MECHANISM PRECLUDE YOU FROM
PUBLIC I'M AND THIS CHAIR NOT I
DON'T WANT TO.
UNNECESSARILY LIKE THAT ALL OF
THIS WE WERE TO. JUST
AS FAR AS I'M CONCERNED AN
EXPLANATION OF THAT BILL.
IN A LANGUAGE THAT YOU WOULD PUT
IT IN WRITING AND GET IT TO THE
MEMBERS.
I WILL LOOK AT IT FOR SURE.
THANK YOU.
THANK YOU WOULD IT WILL PROCEED
TO PUBLIC COMMENT NOW AND TO.
BUT THERE ARE INDIVIDUALS THAT
LIKE TO SPEAK.
PLEASE STEP FORWARD.
HELLO MY US MO EXCITER ENTRY ON
BEHALF OF DEL MAR COUNTY.
ASTHMA MENTIONED.
WHERE RURAL COUNTY WITH ONE OF
THE HIGHEST TIPPING FEES IN THE
STATE AM AND ILLEGAL DUMPING IS
STILL A SIGNIFICANT PROBLEM IN
OUR COUNTY? WE WOULD LIKE TO SEE
THE MRC BE REQUIRED TO PROVIDE
AT LEAST ONE FREE DAILY DROP OFF
LOCATION AND EVERY COUNTY. AND
IF NOT WOULD LIKE THE REVENUE
COLLECTED FROM DELMARK COUNTIES
RESIDENTS TO BE REMITTED TO THE
COUNTY AND FOR THE ONES
PROVIDING THAT DAILY JOB AT THAT
DALY COLLECTION AND DROP OFFERED
OPPORTUNITY. AND WE DO
ACKNOWLEDGE AND THANK THEM
MARCY'S EFFORTS PROVIDE
COLLECTION EVENTS IN OUR COUNTY
AND.
BUT WE WOULD REITERATE THAT THE
SPORADIC EVENTS ARE INSUFFICIENT
AND THE SYSTEMIC PROBLEM REMAINS
SO WE LOOK FOR TO ENGAGING IN
CONVERSATIONS ABOUT IMPROVING
THE STATE'S RECYCLING PROGRAM
AND. AND LET OF THE FORTHCOMING
AUDIT AND OTHER EFFORTS THINK
IT.
THANK YOU MISTER CHAIRMAN AND
MISTER PATTERSON ESPECIALLY
THANK YOU FOR LETTING THE
HEARING GO YOU'VE BEEN VERY
GENEROUS ALLOWING EVERYBODY TO
GET THE VIEWS EXPRESSED WE
PERCEIVE THAT. I JUST WANTED TO
REMIND FOLKS OVER HERE IN THE
AUDIENCE OVER HERE FIVE YEARS
AGO WHEN S. B. TWO FIFTY FOUR
PASS. I KNOW BOTH OF YOU
ASSEMBLY MEMBERS WERE HERE AND
ACTUALLY VOTED FOR THE BILL.
THAT WAS A TWO THIRDS VOTE BILL.
WE HAD EVERY SINGLE MEMBER OF
THE ASSEMBLY DEMOCRAT CAUCUS AND
THE SENATE DEMOCRATIC CAUCUS
WELL FOR THE BILL.
AND IN THE ASSEMBLY.
WE HAD OVER HALF OF THE
REPUBLICANS VOTE FOR.
AND THAT DESPITE THE FACT THE
LEGISLATIVE COUNSEL ATTACKED IT
AS A QUOTE TAX INCREASE IN THOSE
RECYCLING FEE.
THE REASON WHY MENTIONING THAT
IS BECAUSE THERE WAS VERY BROAD
SUPPORT FOR THE GOVERNMENT
STRUCTURE PUT IN PLACE.
AND THIS PROGRAM IS ONLY TWO
YEARS OLD AND THEY'VE ALREADY
DIVERTED TO MILLION MATTRESSES
FROM LANDFILLS SO IT REALLY IS
WORKING TO MISTER PATTERSON'S
POINT.
SO I UNDERSTAND THAT THERE ARE
OTHERS THAT ARE CONCERNED AND
THIS PROGRAM IS NOT PERFECT.
AND THE.
BYE BYE MATCHES PROGRAM WILL
ONLY GET BETTER BUT IT'S CLEARLY
MET THE OBJECTIVES THAT WERE
SPOKEN ABOUT FIVE YEARS ON YOUR
FLOOR WHEN YOU VOTED FOR IT SIR.
AND WHEN TWO THIRDS PLUS OF YOUR
COLLEAGUES DEAD. AND UP WORK YOU
KNOW I KNOW THAT THIS PROGRAM IS
ONLY GOING TO GET BETTER WE
APPRECIATE YOUR SUPPORT. AND WE
APPRECIATE THIS OPPORTUNITY TO
TALK FINALLY I JUST WANT TO
MENTION ONE THING I'M ADVISED
THAT THERE WAS NO UNANIMOUS VOTE
BY THE MATTRESS ADVISORY
COMMITTEE SAYING. DON'T LOWER
THE FEE.
THEY WERE DARNED IF THEY DO AND
DARNED IF THEY DIDN'T THEY
DIDN'T LOWER BY FIFTY CENTS.
AND YOU HAVE A HIGH RESERVE
BECAUSE IT'S A NEW PROGRAM THAT
STILL ROLLING OUT THAN THEY
WOULD BEEN CRITICIZED FOR THE
HIGH RESERVE LIKE OTHER PROGRAMS
OUT. SO IT'S A BALANCING ACT
THAT YOUR CONSTITUENTS TAX MONEY
THEY'RE DOING THE BEST JOB THEY
CAN'T MANAGE EFFICIENTLY AND WE
APPRECIATE YOUR CONTINUING
SUPPORT.
GOOD AFTERNOON MY NAME IS
THERESA BURGER BACHELOR.
SORRY.
I AM FROM EAGLE CONSOLES ON
BEHALF OF STOP WASTE OR THE
ALAMEDA.
TWENTY WASTE MANAGEMENT
AUTHORITY I JUST WANNA QUICKLY
SAY THAT WE ARE IN SUPPORT OF
THE AUDIT THAT WAS PUT FORTH BY
ASSEMBLY MEMBER GARCIA.
THANK YOU.
WAS BEEN THE LIMON DATING
DISCUSSION THERE AND IT IS A NEW
PROGRAM THERE.
.
I THINK IT'S BEEN ACKNOWLEDGED
BY EVERYONE.
A SOME ROOM FOR IMPROVEMENT
THE PURPOSE OF THE SUBCOMMITTEE
IS TO PROVIDE OVERSIGHT.
AND THERE WILL CONTINUE TO DO
THAT BUT I THINK.
A WE WILL ALSO OF FOLLOW THE.
.
BUT WHAT WILL BUT LOOK FORWARD
TO SEEING THE HAVE
RECOMMENDATIONS OF THE AUDIT.
WELL CONSIDERING THE OTHER
SUGGESTIONS THAT HAVE BEEN MADE
OF MR PATERSON QUICKLY WON THE
AYE AYE SPORT THE AUDITOR'S WELL
A HAVING A.
HUGE TRUST IN OUR WATER
INDEPENDENT.
I WOULD ALSO JUST SUGGEST.
TOO BYE BYE MATTRESS THAT
PERHAPS THE SIX.
COUNTIES THAT ARE RECEIVING NO.
HELP I'M BUT HOPE THAT THAT
WOULD SHOW UP IN.
THE BUSINESS PLAN COMING UP VERY
SOON AND AND CLOSE THAT GAP IF
YOU WOULD THAT WOULD I THINK
THAT WOULD BE A GOOD MOVE. AND
I'D LIKE TO ENCOURAGE THAT
ITEMS.
THANK YOU HAVE THAT BRINGS OUR
HEARING TO A CONCLUSION THANK
YOU ALL FOR YOUR PATIENCE AND
FOR. THOSE OF YOU STEP THROUGH
THE WHOLE LA HEARING
CONGRATULATIONS TO YOU.
AND WILL STAND ADJOURNED