1. (a) CalRecycle, or a person, as defined in Public Resources Code section 42463(r), that is authorized by CalRecycle, shall annually conduct net cost report surveys of approved collectors, recyclers, and dual entities to determine the average net costs associated with recovering and recycling CEW, and to adjust the Standard Statewide Recovery Payment Rate described in Section 18660.33 and the Standard Statewide Combined Recovery and Recycling Payment Rates described in Section 18660.34.

2. (b) An approved collector, recycler, or dual entity shall provide CalRecycle, or its authorized representative, with responses to written or verbal requests for information and requests for records, as required by 18660.10(c), to substantiate reported costs and revenues associated with collecting, consolidating, transporting, receiving, processing, and recycling CEW.

   1. (1) Any requests pursuant to this Section by CalRecycle, or its authorized representative, shall be presented in writing at the time of any in-person site visit or electronically delivered to the approved collector, recycler, or dual entity's email address on record. This request shall specify where the records can be presented for CalRecycle's or its authorized representative's inspection.
   2. (2) The approved collector, recycler, or dual entity shall provide CalRecycle, or its authorized representative, with responses or records requested pursuant to this Section no later than ten (10) business days following the date of any written request. Failure to provide records or respond to requests for information pursuant to this Section constitutes a prohibited activity pursuant to Section 18660.17.

3. (c) An approved collector, recycler, or dual entity shall provide CalRecycle, or its authorized representative, with accurate and complete information and documentation pertaining to the following allowable revenues and costs:

   1. (1) Revenues in relation to CEW recovery or recycling, other than the payments required pursuant to this Chapter, including but not limited to:

      1. (A) Up-front revenues received, such as from fees charged.
      2. (B) Treatment residual revenues, such as from commodity values.

   2. (2) Costs for approved collectors and dual entities to collect, consolidate, and transport CEW, and for approved recyclers and dual entities to receive, process, and recycle CEW including but not limited to:

      1. (A) Direct labor costs, such as wages.
      2. (B) A pro rata share of overhead costs, including indirect labor costs, administration, facility permitting, accounting, and other activities not directly involved in recovering or recycling CEW.
      3. (C) Property taxes.
      4. (D) Depreciation of applicable assets.
      5. (E) Utilities.
      6. (F) Supplies.
      7. (G) Fuel.
      8. (H) Insurance, such as general liability insurance, property insurance, commercial auto insurance, workers' compensation insurance, business interruption insurance, and commercial umbrella insurance.
      9. (I) Business interest expenses, such as loan interest.
      10. (J) Facilities purchase, mortgage, rent, or lease.
      11. (K) Equipment purchase, rental, or lease.
      12. (L) Equipment and facility maintenance and repair.
      13. (M) Transportation costs such as, trucking, freight, rail, container handling charges, port fees, customs fees, and overseas container shipping.
      14. (N) Handling costs.
      15. (O) Hazardous waste disposal.
      16. (P) Municipal solid waste disposal.
      17. (Q) Recycling costs for low-value material.
      18. (R) Marketing, promotion, and public education.
      19. (S) A reasonable rate of profit or return on investment.
   3. (3) All information submitted pursuant to this Section shall be provided on a pro rata basis only so that this information reflects business revenues and costs that are related to managing CEW.
   4. (4) An approved collector, recycler, or dual entity may voluntarily provide additional information not listed in subsection (c)(2).
4. (d) CalRecycle may revoke approval or deny recycling payments for failure to comply with the requirements of this Section, or for the submission of fraudulent information pursuant to this Section.
5. (e) An approved collector, recycler, or dual entity may submit test results, studies or other information for CalRecycle to consider when the Standard Statewide Recovery Payment Rate or the Standard Statewide Combined Recovery and Recycling Payment Rate is reviewed and, if necessary, adjusted pursuant to Sections 18660.33 and 18660.34 of this Chapter.

Note: Authority cited: Sections 40502, 42475 and 42475.2, Public Resources Code. Reference: Sections 42463, 42464, 42474, 42475(a), 42476, 42477, 42478 and 42479, Public Resources Code.

History

1. New section filed 5-10-2004 as an emergency; operative 5-10-2004 (Register 2004, No. 20). Pursuant to Public Resources Code section 42475.2(b) a Certificate of Compliance must be transmitted to OAL by 5-10-2006 or emergency language will be repealed by operation of law on the following day.

2. Repealer and new section filed 12-13-2004 as an emergency; operative 12-13-2004 (Register 2004, No. 51). Pursuant to Public Resources Code section 42475.2(b), emergency language will be repealed by operation of law on 12-14-2006. A Certificate of Compliance must be transmitted to and approved by OAL prior to that day.

3. Amendment of subsection (g) filed 12-2-2005 as an emergency; operative 12-2-2005 (Register 2005, No. 48). Pursuant to Public Resources Code section 42475.2(b), emergency language will be repealed by operation of law on 12-14-2006. A Certificate of Compliance must be transmitted to and approved by OAL prior to that day.

4. Certificate of Compliance as to 12-13-2004 and 12-2-2005 orders, including further amendment of section, transmitted to OAL 10-13-2006 and filed 11-27-2006 pursuant to Public Resources Code section 42475.2(b) (Register 2006, No. 48).

5. Change without regulatory effect amending subsections (a)-(b), (d), (d)(5) and (f)-(h) filed 10-29-2012 pursuant to section 100, title 1, California Code of Regulations (Register 2012, No. 44).

6. Amendment of subsections (a) and (d) filed 5-9-2018 as an emergency; operative 5-9-2018 (Register 2018, No. 19). Pursuant to Public Resources Code section 42475.2(b), this is a statutory deemed emergency, and the emergency language remains in effect until 5-9-2020 unless a Certificate of Compliance is transmitted to and approved by OAL, or the emergency language is revised by the Board prior to that date, whichever occurs sooner.

7. Certificate of Compliance as to 5-30-2018 order, including amendment of section, transmitted to OAL 8-3-2018 and filed 9-17-2018; operative 10-1-2018 pursuant to Government Code section 11343.4(b)(3) (Register 2018, No. 38).

8. Amendment of subsections (a) and (d), filed 3-24-2020 as an emergency; operative 5-10-2020 (Register 2020, No. 13). Pursuant to Public Resources Code section 42475.2(b), this is a statutory deemed emergency, and the emergency language remains in effect until 5-10-2022 unless a Certificate of Compliance is transmitted to and approved by OAL, or the emergency language is revised by the Board prior to that date, whichever occurs sooner.

9. Certificate of Compliance as to 3-24-2020 order transmitted to OAL 2-22-2022 and filed 4-6-2022 pursuant to Public Resources Code section 42475.2(b) (Register 2022, No. 14).

10. Amendment of subsections (d)(10)-(11) and amendment of Note filed 12-13-2024 as an emergency; operative 1-1-2025 (Register 2024, No. 50). Pursuant to Public Resources Code section 42475.2(b), this is a statutory deemed emergency, and the emergency language remains in effect until 1-1-2027 unless a Certificate of Compliance is transmitted to and approved by OAL, or the emergency language is revised by the Department prior to that date, whichever occurs sooner.

11. Amendment of section heading, section and Note filed 12-11-2025 as a deemed emergency pursuant to Public Resources Code section 42475.2(b); operative 12-11-2025 (Register 2025, No. 50). A Certificate of Compliance must be transmitted to OAL by 12-11-2027 or emergency language will be repealed by operation of law on the following day.