California Redemption Value

Last updated

Bottle redemption value or deposit label on a soft drink Bottle label.jpg
Bottle redemption value or deposit label on a soft drink

California Redemption Value (CRV), also known as California Refund Value, is a regulatory fee [1] paid on recyclable beverage containers in the U.S. state of California. The fee was established by the California Beverage Container Recycling and Litter Reduction Act of 1986 (AB 2020, Margolin) and further extended to additional beverage types in California State Senate Bill No. 1013, signed into law on September 28, 2022, and taking effect on January 1, 2024; [2] since 2010 the program has been administered by the Cal/EPA California Department of Resources Recycling and Recovery (CalRecycle) (it was previously administered by the California Department of Conservation, Division of Recycling). [3]

Contents

Other states have similar bottle bills/deposit laws, including Connecticut, Hawaii, Iowa, Massachusetts, Maine, Michigan, New York, Oregon, and Vermont. [4]

Regulatory system

The bottler pays CRV for beverages with aluminum, plastic, glass, and bimetal containers and anyone can receive the same amount in exchange for the container by bringing it to a recycling center. The symbol on beverage containers eligible for reimbursement is "CA CRV". Currently, CRV is 5 cents for containers less than 24 US fluid ounces (710 ml) and 10 cents for containers 24 US fluid ounces (710 ml) or larger. [5] The state also allows recyclers to pay by weight, for which the state also sets a separate minimum price per pound (kg). When redeeming in quantities up to 50 containers, the consumer has the right to be paid by count on request. In larger quantities, the recycler has discretion. [6] Recyclers have the right to refuse or offer a reduced price for contaminated materials. It is illegal to bring in out-of-state cans or bottles to California to recoup the CRV and violators can be charged with fraud, a felony. [7]

The charge for California Redemption Value is similar to bottle bill deposits used in other states, but is technically a fee imposed on the distributor of the beverage. The fee tends to be passed along to the retailer and to the consumer via normal market forces. Distributors and retailers usually break out the CRV as a distinct part of the purchase price in advertising and on receipts (for example the charge for a 50-cent bottle of soda may appear on the receipt as "45 cents plus 5 cents CRV").

One way the difference between CRV and a system in which the consumer pays a deposit or tax shows up is that sales tax applies to the CRV amount, if the item is subject to sales tax. [8] If it were not part of the basic price of the product, sales tax would not apply to it. Accordingly, when the State of California raised the CRV from $0.04 on 2 L bottles and $0.02 on cans to $0.08 and $0.04, respectively, then again to $0.10 and $0.05, respectively, it was also raising California's sales tax revenue gained on the imposed fee.

Types of beverages

CRV is paid on the following types of beverages:

CRV is not paid on the following:

Recycling centers

In August 2019, California's largest recycling redemption and processing centers operator, RePlanet, announced closing all 284 of its remaining centers, ceasing operations, terminating 750 employees, and beginning the process of liquidating assets to pay creditors, because of continued reduction in State fees, the depressed pricing of recycled aluminum and PET plastic, minimum wage increases, [11] and the rise in operating costs. [12] In February 2016, RePlanet had closed 191 recycling centers and terminated nearly 300 employees in smaller communities across California, due to the same causes. [13]

Issues with implementation

Fresno State had trash bins along with dedicated beverage containers recycling receptacles. Despite their best effort to secure them against theft including keeping them under lock and key, they were forced to remove the beverage receptacles as for "vagrants would break the locks and steal the contents", according to Fresno State's manager for office of environmental health safety, risk management and sustainability. [14]

Declining value of materials from recyclable containers

The falling market value of materials that redeemable containers are made of such as metal, plastic or glass has led to a decrease in the viability of many local recycling centers. CalRecycle, the agency that oversees the CRV program, reported in 2016 that recycling rates had declined below their goal of 80%. [15] It is estimated that around 1.7 million containers were not recycled as a result of the decline over the past five years, ending up in dumps instead. [16] Barriers to the ease of recycling has effectively caused consumers to lose, as the LA Times reported, "at least $308 million in 5-cent deposits on cans and bottles in 2018". [17] The incentive to process the containers has decreased in monetary amount along with inflation further devaluing the incentive. [16] A later bill, The California beverage container recycling law, attempted to solve the initial shortcomings by requiring that when not within half of a mile from a recycling center, that the markets themselves must accept CRV qualified containers or be fined a daily rate. This has not completely solved the issue as many companies choose not to accept recycles but do not pay the fine, similar to the litigation between the state of California and CVS as recent as December 2019. [18]

See also

Related Research Articles

<span class="mw-page-title-main">Alcopop</span> Flavored beverage with relatively low alcohol content

An alcopop is any of certain mixed alcoholic beverages with relatively low alcohol content, including:

  1. Malt beverages to which various fruit juices or other flavorings have been added
  2. Wine coolers: beverages containing wine to which ingredients such as fruit juice or other flavorings have been added
  3. Mixed drinks containing distilled alcohol and sweet liquids such as fruit juices or other flavourings
<i>Soju</i> Distilled alcoholic beverage from Korea

Soju is a clear and colorless distilled alcoholic beverage, traditionally made from rice, but later from other grains and has a flavor similar to vodka. It is usually consumed neat. Its alcohol content varies from about 12.5% to 53% alcohol by volume (ABV), although since 2007 low alcohol soju below 20% has become more popular.

<span class="mw-page-title-main">Wine bottle</span> Bottle used for holding wine

A wine bottle is a bottle, generally a glass bottle, that is used for holding wine. Some wines are fermented in the bottle while others are bottled only after fermentation. Recently the bottle has become a standard unit of volume to describe sales in the wine industry, measuring 750 millilitres. Wine bottles are produced, however, in a variety of volumes and shapes.

<span class="mw-page-title-main">Drink can</span> Container specifically made for liquid such as beverages and usually made of aluminum

A drink can is a metal container designed to hold a fixed portion of liquid such as carbonated soft drinks, alcoholic drinks, fruit juices, teas, herbal teas, energy drinks, etc. Drink cans are made of aluminum or tin-plated steel. Worldwide production for all drink cans is approximately 370 billion cans per year.

<span class="mw-page-title-main">Bottled water</span> Water sold as a bottled product

Bottled water is drinking water packaged in plastic or glass water bottles. Bottled water may be carbonated or not, with packaging sizes ranging from small single serving bottles to large carboys for water coolers. The consumption of bottled water is influenced by factors such as convenience, taste, perceived safety, and concerns over the quality of municipal tap water. Concerns about the environmental impact of bottled water, including the production and disposal of plastic bottles, have led to calls for more sustainable practices in the industry.

<span class="mw-page-title-main">Reuse of bottles</span> Waste management

A reusable bottle is a bottle that can be reused, as in the case as by the original bottler or by end-use consumers. Reusable bottles have grown in popularity by consumers for both environmental and health safety reasons. Reusable bottles are one example of reusable packaging.

<span class="mw-page-title-main">Oregon Bottle Bill</span> Container-deposit legislation in Oregon

The Oregon Bottle Bill is a container-deposit legislation enacted in the U.S. state of Oregon in 1971 that went into effect in October 1972. It was the first such legislation in the United States. It was amended in 2007 and 2011. It requires applicable beverages in applicable sizes in glass, plastic or metal cans or bottles sold in Oregon to be returnable with a minimum refund value. The refund value was initially 5 cents until April 1, 2017, when it increased to 10 cents. The Oregon Legislature has given the Oregon Liquor Control Commission the authority to administer and enforce the Bottle Bill. Oregon Beverage Recycling Cooperative (OBRC), a private cooperative owned by retailers and beverage distributors, administers the collection and transportation of returned containers and keeps all the unclaimed deposits. Materials from returned containers are sold by the OBRC and proceeds are handed out to beverage distributors. In 2022, the bottle bill was expanded to include canned wine, which will become eligible for redemption on July 1, 2025.

<span class="mw-page-title-main">Container-deposit legislation</span> Return of beverage containers for refund

Container-deposit legislation is any law that requires the collection of a monetary deposit on beverage containers at the point of sale and/or the payment of refund value to the consumers. When the container is returned to an authorized redemption center, or retailer in some jurisdictions, the deposit is partly or fully refunded to the redeemer. It is a deposit-refund system.

<span class="mw-page-title-main">Reverse vending machine</span> Machine for recycling bottles and cans

A reverse vending machine (RVM) is a machine that allows a person to insert a used or empty glass bottle, plastic bottle, or aluminum can in exchange for a reward. After inserting the recyclable item, it is then compacted, sorted, and analyzed according to the number of ounces, materials, and brand using the universal product code on the bottle or can. Once the item has been scanned and approved, it is then crushed and sorted into the proper storage space for the classified material. Upon processing the item, the machine rewards people with incentives, such as cash or coupons.

<span class="mw-page-title-main">Oregon Liquor and Cannabis Commission</span>

The Oregon Liquor and Cannabis Commission (OLCC), formerly known as the Oregon Liquor Control Commission, is a government agency of the U.S. state of Oregon. The OLCC was created by an act of the Oregon Legislative Assembly in 1933, days after the repeal of prohibition, as a means of providing control over the distribution, sales and consumption of alcoholic beverages. To this end, the agency was given the authority to regulate and license those who manufacture, sell or serve alcohol.

An open-container law is a law which regulates or prohibits drinking alcohol in public by limiting the existence of open alcoholic beverage containers in certain areas, as well as the active consumption of alcohol in those areas. "Public places" in this context refers to openly public places such as sidewalks, parks and vehicles. It does not include nominally private spaces which are open to the public, such as bars, restaurants and stadiums.

<span class="mw-page-title-main">Bartending terminology</span> Terms used in drinking culture and bartending

Various unique terminology is used in bartending.

<span class="mw-page-title-main">Sugary drink tax</span> Tax or surcharge on soft drinks with high sugar content

A sugary drink tax, soda tax, or sweetened beverage tax (SBT) is a tax or surcharge designed to reduce consumption of sweetened beverages by making them more expensive to purchase. Drinks covered under a soda tax often include carbonated soft drinks, sports drinks and energy drinks. Fruit juices without added sugar are usually excluded, despite similar sugar content, though there is some debate on including them.

<span class="mw-page-title-main">Tennessee Bottle Bill</span>

The Tennessee Bottle Bill is citizen-supported container-deposit recycling legislation, which if enacted will place a 5-cent deposit on beverage containers sold in Tennessee. The bill applies to containers made of aluminum/bimetal, glass or any plastic, containing soft drinks, beer/malt beverages, carbonated or non-carbonated waters, plain or flavored waters, energy drinks, juices, iced teas or iced coffees. Milk/dairy, nutritional drinks and wine and spirits are not included in the program.

<span class="mw-page-title-main">Container deposit legislation in the United States</span> Overview of the container deposit legislation in United States of America

There are ten states in the United States of America with container deposit legislation, popularly called "bottle bills" after the Oregon Bottle Bill, the first such legislation that was passed.

<span class="mw-page-title-main">Container deposit legislation in Australia</span>

Container deposit legislation (CDL), also known as a container deposit scheme (CDS), is a scheme that was first implemented in South Australia in 1977 and over the decades has spread to the Northern Territory in 2012, New South Wales in 2017, the Australian Capital Territory in June 2018, Queensland in November 2018, Western Australia in October 2020 and Victoria in November 2023. The scheme is due to commence in the last remaining state of Tasmania in early 2024.

There are few restrictions on the sale and consumption of alcohol in Nevada except for age.

The Massachusetts Bottle Bill is a container-deposit legislation dealing with recycling in the United States that originally passed in the U.S. state of Massachusetts in 1982 as the Beverage Container Recovery Law. Implemented in 1983, the law requires containers of carbonated beverages to be returnable with a minimum return value of $0.05. The bottle bill does not cover containers of non-carbonated beverages like water, tea, or sports drinks. The law also establishes the handling fee paid by distributors to redemption centers, $0.0325 per unit as of July 5, 2013, and to retailers $0.0225 per unit. As the number of non-deposit beverage containers has increased to represent over one-third of beverage containers sold, the Bottle Bill has no influence on these non-deposit containers, with the result that these containers are three times more likely to be found as litter in Massachusetts communities. Additional studies indicate that beverage containers covered by the state's container deposit system are redeemed at approximately 70% and another 9% are recycled via curbside programs. Conversely, containers that are not covered, such as bottled water, juices, and sports drinks, are recycled at approximately 25%.

<span class="mw-page-title-main">History of bottle recycling in the United States</span>

The history of bottle recycling in the United States has been characterized by four distinct stages. In the first stage, during the late 18th century and early 19th century, most bottles were reused or returned. When bottles were mass-produced, people started throwing them out, which led to the introduction of bottle deposits. However, during the second stage, after World War II, consumption patterns changed and nonreturnable containers became popular, which littered the environment. Some states implemented "bottle bills" that instituted deposits. The beverage-container industry first implemented private recycling programs and then pushed for municipal curbside recycling as an alternative to "bottle bills". More recently, PET bottles have largely replaced other materials. The United States used to be the front-runner when it came to recycling PET, but European countries have since outpaced the US.

<span class="mw-page-title-main">Canner (occupation)</span>

A canner participates in canning, the collection and redemption of deposit-marked beverage containers for recycling. Canning is an activity undertaken by individuals or small teams, typically to earn an income. Canning is only possible in nations, states, or municipalities which have enacted container-deposit legislation.

References

  1. "Beverage Container Recycling". California Department of Resources Recycling and Recovery. Retrieved May 8, 2015.
  2. 1 2 3 4 5 "California bottle bill adds wine and spirits, plus last-minute funding for glass markets and recycling". Waste Dive. Retrieved October 6, 2022.
  3. "Beverage Container Recycling". California Department of Resources Recycling and Recovery. Retrieved September 8, 2014.
  4. "Bottle Bill Resource Guide". Container Recycling Institute. Retrieved September 8, 2014.
  5. "CRV Rates/Cash Register Receipts".
  6. "Frequently Asked Questions (FAQ)".
  7. "California laws on recycling bottles from Nevada". SFGate.com. Retrieved June 30, 2018.
  8. "Consumer Sales and Use Tax Questions, Publication 53A" (PDF). Archived from the original (PDF) on December 8, 2017. Retrieved July 20, 2008.
  9. "Calrecycle faq" . Retrieved August 10, 2019.
  10. 1 2 3 "Archived copy" (PDF). Archived from the original (PDF) on October 10, 2009. Retrieved August 24, 2009.{{cite web}}: CS1 maint: archived copy as title (link)
  11. Farren, Julie. "rePlanet Recycling closes". Banning Record Gazette. Retrieved January 8, 2020.
  12. "California's largest recycling center closes, shuttering 300 redemption sites". East Bay Times. August 5, 2019. Retrieved September 27, 2019.
  13. "California's rePlanet closes 191 recycling centers, terminates 300 jobs". Waste Dive. Retrieved September 27, 2019.
  14. Karby, Marcus (September 2, 2016). "The mystery behind the lack of recycling bins". The Collegian. Retrieved May 26, 2019.
  15. Sciacca, Annie; Spacek, Rachel (July 4, 2017). "Californians are recycling bottles less and less. Here's what's going on". Los Angeles Times. Archived from the original on July 4, 2017. Retrieved August 25, 2020.
  16. 1 2 Abbott, Jenna (August 24, 2018). "Urgent need to fix California's 'bottle bill'". Capitol Weekly. Archived from the original on August 25, 2018.
  17. "Californians are losing hundreds of millions of dollars in recycling deposits". Los Angeles Times. Associated Press. February 28, 2019. Archived from the original on March 1, 2019.
  18. Gonzalez, Vicki (December 9, 2019). "California fines CVS millions for failing to redeem recycling". KCRA. Archived from the original on December 10, 2019.