Beverage containers: processing payments.

Senator Padilla's proposal to modify California's beverage container recycling program codifies a 10% financial return rate for recycling centers as part of their processing payments under the state's container deposit system. The measure amends existing law that requires manufacturers to pay processing fees to the Department of Resources Recycling and Recovery for each beverage container sold in California.

The processing payment system compensates recycling centers for the difference between containers' scrap value and operational costs, plus a reasonable financial return. While current regulations set this return at 10%, the bill would elevate this rate from regulation to statute. The payment calculation continues to incorporate actual operational costs for certified recycling centers, including expenses for receiving, handling, storing, and transporting materials.

The broader processing fee framework remains unchanged, with manufacturers paying 65% of the total processing payment, subject to potential reductions based on recycling rates. Centers handling containers with recycling rates of 75% or higher qualify for the lowest processing fees at 10% of the payment, while those with rates below 30% face fees of 65%. The department maintains authority to adjust payments quarterly based on scrap value fluctuations.