California recycling program is on the rocks

Posted at 09:26 PM on Wednesday, Dec. 02, 2009

For years California has courted a reputation as an eco-friendly, green-minded leader, but the state now finds its most basic program of recycling beverage bottles and cans mired in debt and litigation.

Dozens of supermarket recycling sites have shut down recently as Gov. Arnold Schwarzenegger and state legislators spar over how to close a massive gap in the program's budget.

California's 23-year-old recycling program, managed by the Department of Conservation through fees charged to beverage buyers, has been hurt this year by recession, rising redemption rates and raids of its coffers to help ease the state's budget woes.

Schwarzenegger and the Democratic-controlled Legislature concede that the program, which collected more than 16 billion beverage containers last year, is in fiscal distress – but each has rejected the other's solution.

"This is an important program for California and we are currently looking at ways to improve funding in this down economy," said Schwarzenegger spokeswoman Rachel Arrezola.

Mark Murray of Californians Against Waste, a nonprofit advocacy group, said consumers are going to find it increasingly difficult to recycle their beverage containers.

"The net result is likely to be a drop in the recycling rate," he said.

Shoppers remain entitled to their nickel or dime deposits for returning glass, plastic or aluminum beverage containers, but many consumers could be forced to drive farther, wait longer or comply with shorter center operating hours.

The number of supermarket parking-lot recyclers has grown gradually in recent years to about 2,100. But two of the largest operators, Tomra Pacific and NexCycle, announced the shutdown of about 90 centers recently, laying off more than 100 workers.

Tomra, which projects losses of $9 million this year, has joined with two other firms to sue the state, seeking to "stop the dismantling" of the program. Exacerbating problems, the scrap value of aluminum cans has plummeted in the past year, and the market for other containers has struggled.

"If consumers can no longer find convenient outlets for recycling used bottles and cans, they are more likely to go back to their old ways of discarding them in landfills – or worse, on streets, beaches and other property," the lawsuit said.

"This will essentially end the Recycling Program as we have known it," the suit said.

By law, supermarkets not served by parking-lot recyclers are supposed to either pay the state $100 a day – only one store is doing so – or redeem the containers themselves, but many do not.

In a telephone check of 15 such supermarkets Friday, only six accept empty cans and bottles.

Many supermarkets are not prepared to pick up the slack from closures of parking-lot recyclers because of the time it would take to count bags of containers and the health and safety implications of doing so where food is sold, said Dave Heylen of the California Grocers Association.

"It's something that would be quite a hardship," he said.

Department of Conservation officials declined to discuss Tomra's lawsuit or allegations of harm. But state officials clearly are not trying to kill the program because both Schwarzenegger and the Democratic-controlled Legislature have tried to intervene, thus far unsuccessfully.

In May, state finance officials projected a $162 million deficit for the program by July 2010, which sparked across-the-board cuts that affected subsidies paid to collection centers but not to consumers who redeem beverages.