Processing Payment Emergency Regulations

Overview

The Department of Resources Recycling and Recovery (CalRecycle) is proposing emergency regulations to amend Title 14, California Code of Regulations, Division 2, Chapter 5, Subchapter 12, Section 2975 that lays out the reasonable financial return calculation for processing payments. This change will help support beverage container recycling in California by establishing, for calendar year 2025, a reasonable financial return of ten percent when calculating processing payments instead of the Dun and Bradstreet index as stated in current regulations, as the index has been discontinued. This change will provide a balance between the risk associated with operating a beverage container recycling center under current market conditions and a return on investment for operators.

Affected Regulatory Code Sections

CalRecycle is proposing emergency regulations to amend Title 14, California Code of Regulations (CCR), Division 2, Chapter 5, Subchapter 12, Section 2975.

Current Status

The Processing Payment Emergency regulations are scheduled to be submitted to the Office of Administrative Law (OAL) on November 27, 2024, beginning the 10-calendar day emergency rulemaking process. The 5-calendar day public comment period will begin on November 27, 2024, and end on December 2, 2024.

Details of how to submit comments during the comment period are included below.

Current Documents

Processing Payment Emergency Rulemaking Action. The notice of proposed adoption, amendment or repeal of regulation, and Finding of Emergency.
Documents Relied Upon Attachment:
- California Integrated Waste Management Board (CIWMB): Meeting Agenda Notes; May 20, 2008, agenda item 9, attachment 3, retrieved from: CIWMB Meeting Notes
- Investopedia “What is the Average Annual Return for the S&P 500?” retrieved from: Investopedia Average Annual Return
- 2019 Federal Acquisition Regulation Section 15.404-4 Contract by Negotiation: Profit; retrieved from: Federal Acquisition Regulation
Emergency Proposed Regulatory Text. The proposed amendment to the regulations.
Economic and Fiscal Impact Statement STD 399 (signed) and Economic and Fiscal Impact Statement Narrative. Copy of the Economic and Fiscal Impact Statement form and supporting documentation.

These documents are available for public inspection during normal business hours at CalRecycle, 1001 “I” Street, 24th Floor, Sacramento, CA 95814. To schedule a time to inspect these documents, please contact Shannon Lee at regulations@calrecycle.ca.gov.

Input from Interested Parties

The public comment period will commence on November 27, 2024, when the emergency regulations are posted on OAL’s website. The public comment period will close on December 2, 2024. Written comments should be sent to OAL and CalRecycle and received before the close of the public comment period, no later than December 2, 2024. Additionally, CalRecycle requests that written comments reference a subsection or section of the proposed emergency action. Written comments received by CalRecycle after the close of the public comment period will not be responded to in the rulemaking file.

Comments on the proposed emergency regulations must be submitted to OAL via email to staff@oal.ca.gov, by fax to (916) 323-6826, or by mail to:

OAL Reference Attorney
300 Capitol Mall, Suite 1250
Sacramento, California 95814

When submitting a comment to OAL, a copy of the comment must also be submitted to CalRecycle in one of the following ways:

CalRecycle’s public comment portal, which can be accessed here: Processing Payment Emergency Regulations
or by mail to:

Shannon Lee
Processing Payment Emergency Regulations
Department of Resources Recycling and Recovery, Regulations Unit
1001 “I” Street, MS-24B
Sacramento, CA 95814

OAL will confirm that CalRecycle has received the comment before considering it. The comment must state that it is about the emergency regulation currently under OAL review and include the topic of the emergency.

Please note that under the California Public Records Act (Government Code section 7920.000 et seq.), your written and oral comments, attachments, and associated contact information (e.g., your address, phone number, email address, etc.) become part of the public record and can be released to the public upon request.

History

CalRecycle proposed emergency regulations to set the reasonable financial return rates at 10 percent for calendar year 2024. These emergency regulations were approved by OAL effective November 20, 2023, and expired on May 21, 2024.

Contact

For more information on the Processing Payment Emergency Regulations, please contact Shannon Lee at regulations@calrecycle.ca.gov.

Subscribe to the Proposed Regulations Listserv to receive emails regarding rulemaking developments.

For more information regarding the Beverage Container Recycling Program, please visit Beverage Container Recycling Webpage.

Subscribe to the Beverage Container Recycling Program General Information Listserv and the Beverage Container Recycling Notices: Certified Recyclers/Processors listserv on this webpage to receive emails regarding this program.