The Department of Resources Recycling and Recovery (CalRecycle) adopted emergency regulations to amend section 2975, Subchapter 12, Chapter 5, Division 2, Title 14, of the California Code of Regulations (CCR) 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 2021, a reasonable financial return of ten percent when calculating processing payments instead of the Dun and Bradstreet index as stated in regulations. This change will help support beverage container recycling in California by establishing a reasonable financial return that provides a balance between the risk associated with operating a beverage container recycling center under current market conditions and a return on investment that retains current operators. The Processing Payment Emergency Regulations were approved by the Office of Administrative Law effective December 14, 2020 expiring on June 15, 2021.
Affected Regulatory Code Sections
California Code of Regulations, Title 14, Division 2, Chapter 5, Subchapter 12, Article 2, Section 2975
Current Status and Documents
The Processing Payment Emergency Regulations were approved by the Office of Administrative Law effective December 14, 2020. It expires on June 15, 2021.
- Office of Administrative Law Notice of Approval of Emergency Rulemaking Action.
- Processing Payment Emergency Rulemaking Action. The notice of proposed adoption, amendment or repeal of regulation, proposed text, Finding of Emergency and Document Relied Upon Attachment.
- 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.
The public comment period began on December 2, 2020 and ended on December 7, 2020.
You may contact Sharon Siozon for additional information.
CalRecycle engaged in emergency rulemaking in 2017 to implement a reasonable financial return for calendar year 2018. As part of that process, CalRecycle held a preliminary public workshop on October 9, 2017 for all interested parties to present the proposed changes in regulations and allow the public to provide input into the development of the proposed rulemaking and to set the reasonable financial return rates for the 2018 processing payment.
On November 16, 2017, OAL approved emergency regulations to set the reasonable financial return rates for the 2018 processing payment. The emergency regulations expired on May 16, 2018.
CalRecycle proposed emergency regulations to carry the reasonable financial return rates used in 2018 into 2019. These emergency regulations were approved by OAL effective December 13, 2018. These emergency regulations expired on June 13, 2019.
CalRecycle proposed emergency regulations to set the reasonable financial return rates at 10 percent for calendar year 2020. These emergency regulations were approved by OAL effective December 12, 2019 and expired on June 10, 2020.