Dealer Cooperatives Program
The dealer cooperatives program allows dealers in unserved convenience zones to join a nonprofit stewardship organization to provide redemption in that zone based on a CalRecycle-approved dealer cooperative stewardship plan.
Not sure what to do?
The following questions can help dealers determine whether they are required to register their retail locations with CalRecycle, redeem empty beverage containers on their premises, or join a dealer cooperative.
1. Are you a beverage dealer located in a convenience zone?
No
You do not need to register and are not subject to redemption requirements.
Yes
Register with CalRecycle.
2. Is there a certified recycling center in your convenience zone? Email Czexemptions@calrecycle.ca.gov for information about the status of a convenience zone.
No
Go to question #3.
Yes
Confirm your registration with CalRecycle annually and notify CalRecycle of any changes.
3. Were the annual sales at your store $1.5 million or more (excluding fuel)?
No
Confirm your registration with CalRecycle annually and notify CalRecycle of changes.
Yes
Go to question #4.
4. Is your store larger than 5,000 sq. ft.?
No
Confirm your registration with CalRecycle annually and notify CalRecycle of any changes.
Yes
Option 1: Pay consumers the refund value for all empty CRV beverage containers they bring to your store for recycling.
Option 2: Join a dealer cooperative with a CalRecycle-approved, fully operational stewardship plan. See below for more information.
Program News
- On March 13, 2025, CalRecycle submitted the SB 1013 Dealer Registration and Dealer Cooperative rulemaking package to the Office of Administrative Law. The Office of Administrative Law has until April 25, 2025, to complete its review.
- On November 13, 2024, CalRecycle hosted a public workshop on the Draft Model Dealer Cooperative Stewardship Plan.
- Grant Funding: Beverage Container Redemption Innovation Grant (RIG) Program – Dealers and dealer cooperatives may be eligible for RIG funding for infrastructure such as redemption technology.
Read about the Dealer Cooperatives law and regulations
For more information, contact dealercoops@calrecycle.ca.gov.
Summary of dealer cooperative requirements:
Electronically submit a stewardship plan that meets the requirements of the statute and regulations.
Collect fees from dealer members to cover the costs of implementing the approved plan.
Redeem all CRV container types.
Offer one or more redemption locations within the areas covered by the approved plan.
Fully implement the approved plan.
Maintain records.
Provide quarterly reports to CalRecycle with data and information to demonstrate program performance.
See PRC section 14510.2 for the definition of a “dealer cooperative,” PRC sections 14578-14578.5 for the statutory requirements applicable to dealer cooperatives, and proposed 14 CCR sections 2370-2386 for regulatory requirements pertaining to dealer cooperatives.
Questions and Answers about Dealer Cooperatives
Do I have to join a dealer cooperative?
There are two options for dealers who are not exempt by the law:
- Pay consumers the refund value for all empty CRV beverage containers they bring to your store for recycling.
- Join a dealer cooperative with a CalRecycle-approved, fully operational stewardship plan.
How can I join a dealer cooperative?
Dealers interested in complying with their redemption obligations by joining a dealer cooperative can either join an existing cooperative or form their own.
CalRecycle has not yet received any dealer cooperative stewardship plans for review and cannot refer dealers to an existing dealer cooperative.
To be notified in the future of any approved dealer cooperative stewardship plans, subscribe to CalRecycle’s Beverage Container Recycling Program Email Listserv.
Do I need to take back customers’ empty beverage containers after I join a dealer cooperative?
You must pay consumers the refund value for all empty CRV beverage containers they bring to your store for recycling until the dealer cooperative notifies CalRecycle that the stewardship plan is fully operational.
Dealers who are members of a dealer cooperative with a fully operational stewardship plan approved by CalRecycle are not required to redeem beverage containers on the dealer’s premises.
See proposed 14 CCR section 2373(b) and (c) for more information.
How do I submit a dealer cooperative stewardship plan?
Ensure the dealer cooperative stewardship plan meets all applicable requirements.
CalRecycle prepared a Model Dealer Cooperative Stewardship Plan that includes statutory and regulatory requirements that dealer cooperative stewardship plans must address.
Dealer cooperatives must submit stewardship plans to CalRecycle electronically and may send them to dealercoops@calrecycle.ca.gov.
How do I form a dealer cooperative?
Below are a few initial steps you can take to form a dealer cooperative:
- Ensure your organization meets the “dealer cooperative” definition (PRC section 14510.2).
- For example, a dealer cooperative must be a Section 501(c)(3) non-profit organization that consists of dealers. If you do not meet this definition, you would need to recruit dealer members and form, organize, and operate an organization exclusively for exempt purposes.
- Prepare to apply for tax-exempt status with the Internal Revenue Service.
- Apply for recognition as a tax-exempt organization under Section 501(c)(3)
- Review the Model Dealer Cooperative Stewardship Plan to assist with preparing and submitting a stewardship plan to CalRecycle.
The Governor’s Office of Business and Economic Development offers assistance with setting up your business in California.
I joined a dealer cooperative, now what do I do?
Dealer members must do all of the following:
- Continue to pay consumers the refund value for all empty CRV beverage containers they bring to your store for recycling until the dealer cooperative’s CalRecycle-approved stewardship plan is fully operational. For more information, see PRC section 14578(a)(2)(A).
- Pay dealer cooperative stewardship fees to the dealer cooperative.
- Display signage at the front of your store that includes information for the nearest redemption site or the dealer cooperative’s website.
- Confirm your dealer registration information with CalRecycle annually and notify CalRecycle of changes. For more information, see proposed 14 CCR section 2372.
Does my store have to redeem beverage containers if a dealer cooperative is operating in the unserved convenience zone where my store is located?
Dealers are not automatically members of dealer cooperatives.
A dealer located in an unserved convenience zone where a fully operational dealer cooperative is operating must comply with the law (PRC section 14578(a)) and redeem empty beverage containers on the dealer’s premises unless they are a member of the dealer cooperative.
Resources
- “Dealer Cooperative” Definition (PRC section 14510.2)
- Dealer Cooperative Statutory Requirements (PRC sections 14578-14578.5)
- Model Dealer Cooperative Stewardship Plan
- Dealer Registration and Management System (DReaMS) | contact dealerservices@calrecycle.ca.gov for assistance
- Beverage Container Redemption Innovation Grant Program | contact beveragecontainergrants@calrecycle.ca.gov for assistance
- Dealers can check their convenience zone status | contact CZexemptions@calrecycle.ca.gov for assistance
Related Links
- Dealer Cooperative Stewardship Plans
- Beverage Container Recycling Home Page
- Beverage Container Recycling Program Updates
- Retailers/Dealers
- Convenience Zones
- California’s Beverage Container Recycling Law
- Find Your Nearest Recycling Center
- California Redemption Value (CRV) Computations
- SB-1013 Beverage container recycling bill text
- Dealer Registration and Dealer Cooperatives Rulemaking
For more information, visit Beverage Container Recycling Home