Susan Collins, executive director of the Container Recycling Institute, explained that the recycling rate, at 85 percent, is the highest it's ever been. As more consumers redeem their bottles, cans, and other recyclables, the state is paying out money it can no longer afford to part with.
"When the recycling rate's higher, there's a smaller pool of unredeemed deposits to run the system," Collins said. "It would have been fine, though, if we had all of the money that had been borrowed before."
On November 1st, the state ceased paying subsidies to more than 2000 recycling centers. Because many of the centers operate very close to the margin, between 100 and 200 have already closed down. This has cost hundreds of "green jobs," including 500 from the youth-oriented California Conservation Corps.
"If the faucet isn't turned back on, the logical conclusion would be that they would shut down," Collins said.
Collins said her concern is that grocery stores, which are legally required to accept recyclable containers under the state's Bottle Bill, will suddenly be inundated with materials that they are not equipped to handle.
Under the bill, grocery stores must either host a recycling convenience center on its premises or accept them in the store. Many flaunt the law and do not accept the containers. Supermarket convenience centers presently account for 34 percent of the six billion containers recycled in California each year.
One of the state's largest recycling center operators, Tomra Pacific Inc., is now suing the state in an effort to compel the Legislature to pay back the borrowed funds. A hearing is expected next month, Collins said.
The depleted recycling fund does not just affect private enterprises like those that Tomra operates. Jorge Santiesteban, a division manager at the Los Angeles Bureau of Sanitation, explained that the city draws funds from the deposit program as well in the form of grants and subsidies.
"Generally those funds were used for recycling programs, promotional recycling programs, educational recycling programs, educate the public," Santiesteban said. "They have been reduced statewide to most cities and municipalities by 95 percent."
The impact for Angelenos will include a less robust consumer education program in L.A., as well as a weaker presence for the recycling program. Santiesteban said that he foresees that the city will need to cut back on its recycling efforts at concerts, marathons, and parades, among other large public events.
This is a severe restriction on a city that has pledged to create "zero waste" by the year 2025, he said.
"If the money had been left alone, the program itself was pretty healthy," Santiesteban said.
Chas Little, a Hollywood resident, said he strongly supports the Bottle Bill program.
"To take it away, you're going to take away a lot of income from people that are on the street or homeless and also, it's green, so to recycle is to save earth," Little said. "And that's what we want to do."
Next month, Governor Arnold Schwarzenegger is expected to deliver a proposal for fixing the container program to the State Assembly. In October, Schwarzenegger vetoed a piece of legislation, SB 402, that would have expanded the recycling program to include more types of containers.
That would have boosted the program's surplus again, Collins said, because consumers lag in redeeming the new types until they become educated about the changes. She expressed frustration about the state government's wounding of the container recycling program.
"It should be every bit as easy to get your deposit back as it was to pay your deposit," Collins said.
