Beverage containers: supermarkets: reverse vending machines

A certified reverse vending machine cannot count as serving a supermarket’s unserved redemption area or displace other redemption options and their payments. The law also extends CalRecycle’s handling-fee methodology through June 30, 2032.

What the law does ​

• Keeps an area within one mile of a supermarket classified as unserved even if a certified reverse vending machine operates there.
• Allows dealer cooperatives and mobile redemption units to operate and receive program payments in the same area as a reverse vending machine.
• Preserves handling-fee eligibility for an existing certified recycling center when a reverse vending machine is added to its area.
• Redefines a supermarket as a qualifying full-line self-service store with at least $6 million in annual sales and directs CalRecycle to use the Progressive Grocer Marketing Guidebook updates to identify them.
• Keeps recycling centers that qualified for handling fees before the new supermarket definition eligible afterward.
• Extends through June 30, 2032 CalRecycle’s emergency handling-fee rules and methodology for redemption sites.

Who it affects ​

• Supermarkets, beverage-container recycling centers, reverse vending machine operators, mobile units, and dealer cooperatives.
• Consumers seeking California Redemption Value redemption locations.

Context ​

The urgency law took effect immediately to remove barriers to expanding redemption services where infrastructure is lacking.

Breakdown ​

Reverse Vending Machines and Recycling Zones ​

SB 955 clarifies that a certified reverse vending machine does not count as serving a supermarket’s recycling convenience zone. This allows dealer cooperatives, mobile recycling units, and existing certified recycling centers to continue operating and receiving program payments in the same zone as a reverse vending machine.

Key takeaways

• A certified reverse vending machine does not turn an otherwise unserved convenience zone into a served zone.
• Dealer cooperatives may operate and receive program payments in a convenience zone that also has a reverse vending machine.
• Mobile recycling units may operate and receive program payments in a convenience zone that also has a reverse vending machine.
• An existing certified recycling center remains eligible for handling fees when a reverse vending machine is located in the same convenience zone.

Updated Supermarket Definition ​

This part raises the annual sales threshold for a store to count as a supermarket from $2 million to $6 million. It also updates the required mix of items the store must sell, preserves handling-fee eligibility for recycling centers that qualify as supermarkets, and directs the department to use current Progressive Grocer Marketing Guidebook updates when deciding which dealers are supermarkets.

Key takeaways

• A store must have at least $6 million in annual gross sales, rather than $2 million, to meet the sales portion of the supermarket definition.
• The bill changes the description of the items a store must sell to qualify as a supermarket.
• Recycling centers that are supermarkets remain eligible for handling fees under existing law.
• The department must consult the most recent annual Progressive Grocer Marketing Guidebook update and other relevant updates when determining whether dealers are supermarkets.

Handling Fee Regulations Extended ​

The bill keeps the department’s emergency regulations for calculating beverage-container handling fees in effect for five more years. Instead of expiring on June 30, 2027, the regulations will apply through June 30, 2032.

Key takeaways

• The bill extends the use of the department’s emergency handling-fee calculation regulations through June 30, 2032.
• The regulations would otherwise have remained in effect only through June 30, 2027.
• The bill does not describe a new handling-fee methodology; it extends the period for using the existing emergency regulations.

Program Payments and Handling Fees ​

The bill broadens which entities can qualify for program payments at a given time. It also changes how the department calculates handling fees paid from the continuously appropriated fund. Because these changes can increase or alter payments from that fund, the bill makes an appropriation.

Key takeaways

• More entities may be eligible to receive program payments at any given time.
• The bill changes the formula or method used to calculate handling fees.
• The department pays the handling fees from a continuously appropriated fund.
• Expanding payment eligibility and changing handling-fee calculations makes the bill an appropriation.