Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    ESG

    Foreign equity is moving into North America’s e-scrap origination

    From claims to custody: PCR procurement grows up

    Certification Scorecard — Week of August 17, 2026

    Sorted: Country roads, take my recycling

    State program revamp proposal advances in Oregon

    Oregon EPR ruling looms: what legal experts think

    Triple-digit revenue gains propel ABTC’s expansion

    LFP batteries gain acceptance. Can they be recycled?

    May pricing bullish for most bales

    August pricing bearish for plastic bales

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    ESG

    Foreign equity is moving into North America’s e-scrap origination

    From claims to custody: PCR procurement grows up

    Certification Scorecard — Week of August 17, 2026

    Sorted: Country roads, take my recycling

    State program revamp proposal advances in Oregon

    Oregon EPR ruling looms: what legal experts think

    Triple-digit revenue gains propel ABTC’s expansion

    LFP batteries gain acceptance. Can they be recycled?

    May pricing bullish for most bales

    August pricing bearish for plastic bales

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
No Result
View All Result
Home Recycling

Analysis says California’s atypical regulations hurt bottle redemption centers

Colin StaubbyColin Staub
May 9, 2017
in Recycling

The Golden State’s container redemption program differs from bottle bills in other states, and according to a new study, that might be bringing it down.

More than 300 collection centers, which accept drink containers covered by the California Redemption Value (CRV) program, have closed their doors in the past 16 months, according to the state Legislative Analyst’s Office (LAO).

In light of that trend, the nonpartisan agency released an analysis last month looking at the unintended consequences of the way the state program is set up. The review pointed to a few aspects peculiar to California’s program and contrasted them with programs in nine other deposit states.

The CRV program adds a 5- or 10-cent surcharge on drink containers, with the amount depending on their size. The charge is refunded when the container is returned for recycling. Most returns are done through collection centers, also known as redemption or recycling centers.

The CRV program collects an immense number of containers. From July 2015 through June 2016 – the most recent 12-month period for which figures are available – the state redeemed 8.6 billion PET containers, 7.5 billion aluminum cans and 2.4 billion glass bottles, out of more than 18.7 billion beverage containers altogether.

Collection center closures

As of early April there were 1,692 collection centers operating, down from 1,832 one year earlier. The CRV program establishes “convenience zones” that cover a half-mile around supermarkets with annual sales of more than $2 million. If there is no collection center in these areas, the supermarket is responsible for redeeming covered containers or paying a daily fee to opt out.

The percentage of convenience zones unserved by a collection center statewide jumped from 14 percent to 25 percent from March 2016 to March 2017. That impacts businesses, which become legally obligated to redeem or pay the fee, and consumers, who have fewer options for redemption.

Lagging handling fees

California collection centers are responsible for selling containers to processors, as opposed to other states in which beverage distributors fund that process. That means collection centers have to absorb the cost when scrap values fall. The LAO noted that often hits collection centers harder than it does distributors, which tend to be larger companies.

That’s why collection centers located within convenience zones receive payments from the California Department of Resources Recycling and Recovery (CalRecycle) to offset the difference between scrap values and collection costs. This is similar to the handler fee paid to redemption centers in many other states, except for how the fee is set. Rather than an amount set by lawmakers, California’s payments are based on the average cost to collection centers.

But the LAO pointed out the handler fee amount is only updated quarterly, which often fails to keep up with quickly fluctuating commodity prices. Other unexpected economic changes can take even longer to factor into the handler fee. For instance, the report cited a recent raise in the minimum wage and explained that “these increases will not fully be reflected in the handling fee amount for several years until data can be collected and incorporated in the next cost survey completed following those increases – likely in 2020.”

Lacking flexibility

Finally, the LAO report took note of the operational flexibility redemption outlets enjoy in other states, compared with the relative rigidity of California’s redemption center requirements. Along with simple requirements such as mandated hours of operation, California prohibits certain departures from standard bottle collection systems that have been implemented in other states. As examples, mobile collection programs, such as those in Hawaii and New York, are not allowed. Bulk collection, in which customers can drop off bags full of containers for redemption, is also limited.

“Removing requirements that are costly or not effective could make additional closures less likely,” the report concluded. “If there is concern that eliminating some requirements might reduce consumer convenience, the Legislature could consider using pilot projects to collect data and monitor the effects of the change before implementing them statewide.”

 

NovoTec 

Tags: CaliforniaCollectionContainer DepositsLegislation & Enforcement
TweetShare
Colin Staub

Colin Staub

Colin Staub was a reporter and associate editor at Resource Recycling until August 2025.

Related Posts

Lawsuits hover days after SB 54 approval

NAW-backed coalition seeks SB 54 injunction

byStefanie Valentic
August 21, 2026

NAW says SB 54's 2032 recyclability mandate leans on the same standard a federal judge already froze in the SB...

The Maine state capitol building.

No bidders respond to Maine’s EPR RFP

byStefanie Valentic
August 20, 2026

Following CAA's announcement that it would not submit a bid for Maine's EPR program, the state's DEP announced that no...

The Maine state capitol in Augusta.

Circular Action Alliance won’t bid on Maine’s PRO contract

byStefanie Valentic
August 19, 2026

Circular Action Alliance announced it will not submit an RFP to implement Maine's EPR packaging program.

Landfill seen from above with equipment moving materials.

PFAS, EPR reshape waste and recycling policy

byStefanie Valentic
August 19, 2026

David Biderman, industry veteran and consultant, provided a regulatory update to attendees at WR Expo.

Sorted: Country roads, take my recycling

byStefanie Valentic
August 18, 2026

From a rural dirt road to Miami-Dade's landfill crisis, one thing is consistent: waste is a resource before it's ever...

State program revamp proposal advances in Oregon

Oregon EPR ruling looms: what legal experts think

byStefanie Valentic
August 17, 2026

A ruling in NAW v. Feldon is expected by the end of August. Here's what legal experts think will happen.

Load More
Next Post

Keys to rolling out an effective mandatory recycling ordinance

2026 Buyers’ Guide

Equipment, services and technology suppliers serving the recycling industry.

Browse the Guide

More Posts

The Maine state capitol in Augusta.

Circular Action Alliance won’t bid on Maine’s PRO contract

August 19, 2026
The Maine state capitol building.

No bidders respond to Maine’s EPR RFP

August 20, 2026
Company debuts battery-containing device shredder

New battery shredding system debuts stateside

August 20, 2026
State program revamp proposal advances in Oregon

Oregon EPR ruling looms: what legal experts think

August 17, 2026
ESG

Foreign equity is moving into North America’s e-scrap origination

August 19, 2026
Google explores how to capture 4.5 billion tons of plastic

Bale pricing diverges for August

August 18, 2026
PureCycle sees easing headwinds to R-PP adoption

PureCycle says H2 outlook already playing out 

August 13, 2026

Sorted: Country roads, take my recycling

August 18, 2026
Triple-digit revenue gains propel ABTC’s expansion

LFP batteries gain acceptance. Can they be recycled?

August 17, 2026
End markets, policy key to RPET viability

PET in focus: Is help on the way?

August 17, 2026
Load More

About & Publications

About Us

Staff

Archive

Magazine

Work With Us

Advertise
Jobs
Contact
Terms and Privacy

Newsletter

Get the latest recycling news and analysis delivered to your inbox every week. Stay ahead on industry trends, policy updates, and insights from programs, processors, and innovators.

Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • The Latest
  • Analysis
  • Recycling
  • E-Scrap
  • Plastics
  • Policy Now
  • Conferences
    • E-Scrap Conference
    • Plastics Recycling Conference
    • Resource Recycling Conference
    • Textiles Recovery Summit
  • Magazine
  • About Us
  • Advertise
  • Archive
  • Jobs
  • Staff
Subscribe
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.