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CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

94

Introduced by Senator Cabaldon

February 20, 2026

An act to add and repeal Section 14575.2 of the Public Resources Code, relating to beverage containers, and making an appropriation therefor.

Vote: 2/3   Appropriation: yes   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

The California Beverage Container Recycling and Litter Reduction Act requires a beverage manufacturer to pay to the Department of Resources Recycling and Recovery a processing fee for each beverage container, as defined, sold or transferred in this state. The act requires the department to deposit the fee into the California Beverage Container Recycling Fund, a continuously appropriated fund. The act requires the department to pay processing payments to processors and recycling centers from the fund, as specified. The act requires the processing payment to be at least equal to the difference between the scrap value of the beverage containers and the sum of certain actual operational costs for certified recycling centers and a reasonable financial return for recycling centers, as specified. The act requires the processing fee to be 65% of the processing payment, except as specified.

This bill would limit the processing fee for bag in box beverage containers to not more than $0.12 per container sold or offered for sale. The bill would define “bag in box” for purposes of the bill to mean a container for certain alcoholic beverages that has an interior flexible bag with a valve to dispense a beverage and a rigid cardboard or corrugated paper box designed to contain the bag, as provided. The bill would authorize the department to provide a credit toward the 2027 processing fees to beverage producers who paid the 2026 processing fee, as provided. If the amount needed to make processing payments to recyclers for bag in box beverage containers exceeds the amount of processing fee revenue available, the bill would authorize the department to transfer any necessary amount of redemption payments collected from beverage distributors on bag in box beverage containers since 2024 that were in excess of the amount of funds needed to cover redemption claims for those bag in box containers in order to make the processing payments. expend funds to pay the processing payments in full, as specified. The bill would repeal these provisions on January 1, 2031. By expanding the purposes for which a continuously appropriated fund may be expended, the bill would make an appropriation.

The people of the State of California do enact as follows:

SECTION 1.

Section 14575.2 is added to the Public Resources Code, to read:

14575.2.

(a) Notwithstanding Section 14575, the processing fee for bag in box beverage containers shall be not more than 12 cents ($0.12) per container sold or offered for sale.

(b) The department may provide a credit on 2027 processing fees to beverage producers who paid the 2026 processing fee equal to the difference between the initial 2026 processing fee established on bag in box beverage containers and the processing fee established pursuant to subdivision (c).

(c) If the amount of funds needed to make processing payments to recyclers for bag in box beverage containers pursuant to this section and Section 14575, exceeds the amount of processing fee revenue available, the department is authorized to transfer any necessary amount of redemption payments collected from beverage distributors on bag in box beverage containers since 2024 that were in excess of the amount of funds needed to cover redemption claims for those bag in box containers. funds available in the bag in box processing fee account, the department, consistent with Section 14581, and subject to the availability of funds, shall expend funds to pay the processing payment in full.

(d) This section does not change the responsibility of the department to survey and calculate the cost of recycling and processing payments on bag in box beverage containers pursuant to Section 14575.

(e) For purposes of this section, “bag in box” means a container for wine, distilled spirits, or wine and distilled spirit cooler that has both of the following:

(1) An interior flexible bag with a valve to dispense a beverage.

(2) A rigid box composed primarily of cardboard or corrugated paper that is designed to contain the bag described in paragraph (1) and to allow the bag’s valve to extend through the box to dispense the beverage. The box may, but need not, be rectangular in shape.

(f) This section shall remain in effect only until January 1, 2031, and as of that date is repealed.