1. (a) The department shall determine handling fee payments for a recycling center meeting the requirements of section 14585 of the Act and section 2516, above, or for a dealer cooperative based on data contained in the Handling Fee Application Form (Form DR-14 (1/00)) by performing the following calculations:

   1. (1) The reported redemption weights shall be converted to number of empty beverage containers using the department's statewide average containers-per-pound rate for each material type, and pursuant to section 14585(e) of the Act.
   2. (2) The total number of empty beverage containers for the calendar month shall be calculated by summing the number of empty aluminum, glass, plastic and bimetal beverage containers.
   3. (3) The department shall determine the number of empty beverage containers eligible for handling fees pursuant to section 14585(a)(2) of the Act.

2. (b) On and after July 1, 2025, the department shall set the beverage container handling fee, annually, at the higher of the following two amounts:

   1. (1) The difference between the statewide weighted average cost of redeeming an empty beverage container for handling fee recipients and for non-handling fee recipients, as determined by the cost surveys conducted pursuant to section 14585(f)(1) of the Act; or
   2. (2) $0.0125 per empty beverage container.

3. (c) The department shall adjust the amount in 2518(b), annually, to reflect changes in California's cost of living as measured by the California Consumer Price Index for All Urban Consumers (California CPI-U) produced by the California Department of Finance or a successor agency using the data as posted on their website for Calendar Year Averages on the third Friday of May of the same calendar year the July 1 new handling fee rate is set.

   1. (1) When the handling fee is set pursuant to section 2518(b)(1), the amount in that paragraph shall be adjusted by the percentage change of the California Index value between the calendar year of the department's most recent cost survey data and the most recently concluded calendar year.
   2. (2) When the handling fee is set pursuant to section 2518(b)(2), the amount in that paragraph shall be adjusted by the California % Change for the most recently concluded calendar year.
4. (d) If the California CPI-U is no longer published by the Department of Finance or a successor agency, the department shall adjust the handling fee, pursuant to subdivision (c), using another population-weighted average of local area CPI-Us, published by the United States Department of Labor's Bureau of Labor Statistics or a successor agency of the United States government.

5. (e) Prior to release of handling fees for each month during which a recycling center or dealer cooperative is eligible, the department may determine that such fees should be withheld for any of the following reasons:

   1. (1) The department has prevailed against the recycling center or dealer cooperative in a civil or administrative action and money is owed to the department as a result of the action.
   2. (2) The department determines, based on information contained in the shipping reports filed pursuant to section 2530, that the recycling center or dealer cooperative has received handling fees for materials which were not redeemed for refund value and such discrepancies between reported redemption weights and shipping weights are more than two and one-half percent.

Note: Authority cited: Sections 14530.5, 14536, 14552, 14578.5 and 14585, Public Resources Code. Reference: Sections 14504, 14513.4, 14526.6, 14578, 14578.5 and 14585, Public Resources Code.

History

1. New section filed 10-19-93; operative 10-19-93 (Register 93, No. 43).

2. Change without regulatory effect amending section and Note filed 7-13-94 pursuant to section 100, title 1, California Code of Regulations (Register 94, No. 28).

3. Change without regulatory effect amending subsections (a)-(a)(3) and (a)(4)(A) and Note filed 12-28-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 52).

4. Amendment of subsections (a), (a)(2) and (a)(4)(A)-(B) and amendment of Note filed 1-21-2000 as an emergency pursuant to Public Resources Code section 14536(a); operative 1-21-2000 (Register 2000, No. 3). This regulatory action is not a statutorily deemed emergency as provided for in Public Resources Code section 14536(b)(2) and a Certificate of Compliance must be transmitted to OAL by 5-22-2000 or emergency language will be repealed by operation of law on the following day.

5. Amendment of subsections (a) and (a)(4)(A)-(B) and amendment of Note refiled 5-16-2000 as an emergency pursuant to Public Resources Code section 14536(a); operative 5-16-2000 (Register 2000, No. 3). A Certificate of Compliance must be transmitted to OAL by 9-13-2000 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 5-16-2000 order transmitted to OAL 8-4-2000 and filed 9-8-2000 (Register 2000, No. 36).

7. Change without regulatory effect amending subsection (a)(2) filed 3-29-2004 pursuant to section 100, title 1, California Code of Regulations (Register 2004, No. 14).

8. Amendment of subsections (a)(1)-(2), repealer and new subsection (a)(4) and repealer of subsections (a)(4)(A)-(B) filed 2-5-2007 as an emergency pursuant to Public Resources Code section 14536(b); operative 2-5-2007 (Register 2007, No. 6). Pursuant to Public Resources Code section 14536(b)(2), the emergency amendments remain in effect until revised by the director of the Department of Conservation.

9. Certificate of Compliance as to 2-5-2007 order transmitted to OAL 11-21-2007 and filed 12-26-2007 (Register 2007, No. 52).

10. Amendment of section and Note filed 4-24-2025; operative 4-24-2025 pursuant to Government Code section 11343.4(b)(3) (Register 2025, No. 17).

11. Repealer of subsection (a)(4), new subsections (b)-(d), subsection relettering and amendment of Note filed 6-5-2025 as an emergency; operative 6-5-2025 (Register 2025, No. 23). Pursuant to Public Resources Code section 14585(h)(2), this action is a deemed emergency and shall remain in effect through 6-30-2027. A Certificate of Compliance must be transmitted to OAL by 6-30-2027 or emergency language will be repealed by operation of law on the following day.