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1. June 19, 2014 State of CaliforniaCalRecycleBeverage Container Recycling Program Statutory Authority The California Beverage Container Recycling and Litter Reduction Act (AB2020/Margolin, Chapter 1290, Statutes of 1986) established the Program. The Program became operational in October, 1987. There were three broad goals established by the Act: Establishes an 80 percent beverage container recycling rate; Requires that the Program “make redemption and recycling convenient to consumers” by establishing and maintaining “a marketplace where it is profitable to establish sufficient recycling centers…to provide consumers with convenient recycling opportunities”; Finally, litter reduction is an important goal that is the desired result of the current program. In addition, CalRecycle must achieve the goals of AB 939 by diverting additional materials from landfills. Page 1 Page 2

2. Significance of the California Model • Most bottle deposit programs nationally require in-store redemption and are privatized with limited governmental involvement. • In those models the containers are returned to the store and whether the material is recycled or taken to a landfill is a function of a variety of site dependent considerations. • In California, it is not enough to have a high collection rate. California also assesses beverage manufacturers a processing fee in order to cover the cost of recycling the empty containers. • The Act has thus created an industry in California that includes more than the employment opportunities within recycling centers. • Clean and sorted used aluminum, glass and plastic containers have a higher scrap value than material that is collected through curbside operations. In addition to providing consumer convenience and an avenue for consumers to redeem their containers, recycling centers premised on convenience zones are also the foundation of the beverage container recycling infrastructure in California. • In 2012, Recycling centers and handling fee sites collected 89.3 percent of the beverage containers in California (curbside programs collected 8.4 percent with 2.2 percent attributable to special programs). California’s recycling rate is currently 85 percent. Page 2

3. San Francisco has been an important and vital partner in producing the results to date. Direct Payments to the City of San Francisco or Businesses in San Francisco California Refund Payments: Scrap Value Payments: Admin Fee Payments: Processing Payments: Handling Fee Payments: City/County Payments: Curbside Supplemental: Quality Incentive Payments: Plastic Market Development Payments: Beverage Container Grant Payments: Page 3

4. June 19, 2014 California Beverage Container Recycling and Litter Reduction Act The Intent PRC Section 14500 (e) The Legislature has declared that “Cities and counties, when exercising their zoning authority, to act favorably on the siting of multi-material recycling centers, reverse vending machines, mobile recycling units, or other types of recycling opportunities, as necessary for consumer convenience, and the overall success of litter abatement and beverage container recycling in the state.” Page 4

5. June 19, 2014 California Beverage Container Recycling and Litter Reduction Act Responsible Parties (g) The responsibility to provide convenient, efficient, and economical redemption opportunities rests jointly with manufacturers, distributors, dealers, recyclers, processors, and the rovide convenient, efficient, and economical redemption opportunities rests jointly with manufacturers, distributors, dealers, recyclers, processors, and the Department. PRC 14500 (g) The responsibility to provide convenient, efficient, and economical redemption opportunities rests jointly on manufacturers, distributors, dealers, recyclers, processors, and the Department. Page 5

6. June 19, 2014 Using five year increments from 1990 to present, the number of convenience zones in San Francisco steadily increase, while the number of recycling centers steadily decrease. Please note that some of these zones were exempt during the focal year, or are currently exempt. Page 6

7. June 19, 2014 How convenience zone statistics compare with statewide convenience zone statistics – based on data from June 16, 2014 Page 7

8. June 19, 2014 How convenience zone statistics compare with other large California cities, and statewide statistics – based on data from June 16, 2014 Page 8

9. June 19, 2014 Map date – June 16, 2014 The large cluster of unserved zones (blue), result from the closures of: HANC, NexCycle at the Fulton Lucky Store, NexCycle at Marina Safeway, rePLANET at the Webster Street Safeway. Recently, the NexCycle at La Playa closed, so that Safeway is a hold zone and eventually expected to become unserved. Page 9

10. June 19, 2014 If SF Community Recycling Closes, the nine brown-highlighted zones that stretch from the Castro to SOMA and Potrero Districts will become unserved Page 10

11. June 19, 2014 Page 11

12. June 19, 2014 History of recent RC closures in San Francisco leading to status changes for impacted convenience zones Page 12

13. June 19, 2014 Page 13

14. Continuing Partnership Opportunities CalRecycle has reviewed the Request for Qualifications that the City of San Francisco Department of the Environment has assembled. CalRecycle is interested in continuing the partnership to attain the goals outlined in the document. Page 14