The California Beverage Container Recycling and Litter Reduction Act requires a distributor of beverage containers to pay to the Department of Resources Recycling and Recovery a redemption payment for every beverage container sold or offered for sale, as provided. The act requires the department to deposit those amounts into the California Beverage Container Recycling Fund. The act requires the fund to be continuously appropriated to the department for specified purposes, including, among other things, to pay refund values, administrative fees, and processing payments associated with the collection and recycling of empty beverage containers. The act continuously appropriates up to $15,000,000 annually from the fund to the department for quality incentive payments for empty glass beverage containers to an operator of a curbside recycling program or other certified entity, as specified.

This bill would authorize the department to make quality incentive payments from the fund for empty glass beverage containers that are substantially free from contamination and used for the manufacturing of glass products in the state that are not beverage containers, as specified. By authorizing a new use for continuously appropriated funds, the bill would make an appropriation.

The California Beverage Container Recycling and Litter Reduction Act requires a distributor of beverage containers to pay to the Department of Resources Recycling and Recovery a redemption payment for every beverage container sold or offered for sale, as provided. The act requires the department to deposit those amounts into the California Beverage Container Recycling Fund. The act requires the fund to be continuously appropriated to the department for specified purposes, including, among other things, to pay refund values, administrative fees, and processing payments associated with the collection and recycling of empty beverage containers. The act continuously appropriates up to $15,000,000 annually from the fund to the department for quality incentive payments for empty glass beverage containers to an operator of a curbside recycling program or other certified entity, as specified.

This bill would authorize the department to make quality incentive payments from the fund for empty glass beverage containers that are substantially free from contamination and used for the manufacturing of glass products in the state that are not beverage containers, as specified. By authorizing a new use for continuously appropriated funds, the bill would make an appropriation.

The California Beverage Container Recycling and Litter Reduction Act requires a distributor of beverage containers to pay to the department Department of Resources Recycling and Recovery a redemption payment for every beverage container sold or offered for sale, as provided. The act requires the department to deposit those amounts into the California Beverage Container Recycling Fund. The act requires the fund to be continuously appropriated to the department for specified purposes, including, among other things, to pay refund values, administrative fees, and processing payments associated with the collection and recycling of empty beverage containers. The act continuously appropriates up to $15,000,000 annually from the fund to the department for quality incentive payments for empty glass beverage containers to an operator of a curbside recycling program or other certified entity, as specified.

This bill would authorize the department to make quality incentive payments from the fund for empty glass beverage containers that are substantially free from contamination and used by other manufacturers, including, but not limited to, manufacturers of fiberglass insulation in this state that use glass cullet, for the manufacturing of glass products in the state that are not beverage containers, as specified. By authorizing a new use for continuously appropriated funds, the bill would make an appropriation.

The California Beverage Container Recycling and Litter Reduction Act requires a distributor of beverage containers to pay to the department a redemption payment for every beverage container sold or offered for sale, as provided. The act requires the department to deposit those amounts into the California Beverage Container Recycling Fund. The act requires the fund to be continuously appropriated to the department for specified purposes, including, among other things, to pay refund values, administrative fees, and processing payments associated with the collection and recycling of empty beverage containers. The act continuously appropriates up to $15,000,000 annually from the fund to the department for quality incentive payments for empty glass beverage containers to an operator of a curbside recycling program or other certified entity, as specified.

This bill would authorize the department to make quality incentive payments from the fund to other entities, for empty glass beverage containers that are substantially free from contamination and used by other manufacturers, including, but not limited to, manufacturers of fiberglass insulation in this state that use glass cullet, as specified. By authorizing a new use for continuously appropriated funds, the bill would make an appropriation.

The California Beverage Container Recycling and Litter Reduction Act requires a distributor of beverage containers to pay to the department a redemption payment for every beverage container sold or offered for sale, as provided. The act requires the department to deposit those amounts into the California Beverage Container Recycling Fund. The act requires the fund to be continuously appropriated to the department for specified purposes, including, among other things, to pay refund values, administrative fees, and processing payments associated with the collection and recycling of empty beverage containers. The act continuously appropriates up to $15,000,000 annually from the fund to the department for quality incentive payments for empty glass beverage containers to an operator of a curbside recycling program or other certified entity, as specified.

This bill would authorize the department to make quality incentive payments from the fund to other entities, including, but not limited to, manufacturers of fiberglass insulation in this state that use glass cullet, as specified. By authorizing a new use for continuously appropriated funds, the bill would make an appropriation.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2481

Author:(Soria)

As Amended Ver:June 22, 2026

2/3 vote

SUMMARY

Authorizes the Department of Resources Recycling and Recovery (CalRecycle), at the end of the calendar year and following the second biannual disbursement of quality incentive payments (QIPs) from the Beverage Container Recycling Fund (BCRF) for color-sorted glass beverage containers and empty glass beverage containers used for the manufacturing of glass beverage containers in the state, to use any remaining funds to make a QIP disbursement for empty glass beverage containers that are substantially free from contamination and used for the manufacturing of glass products in the state that are not beverage containers.

Senate Amendments

1. Specify that the remaining funds may be used after the second biannual disbursement of QIPs for specified glass beverage containers.
2. Specify that the unused funds may be used for the manufacturing of glass products that are not beverage containers.
3. State that the QIP for non-beverage containers is up to $30 per ton, as specified.
4. Make technical and clarifying changes.

COMMENTS

Bottle Bill. The Bottle Bill was established in 1986 to be a self-funded program that encourages consumers to recycle beverage containers and to prevent littering. The program accomplishes this goal by requiring consumers to pay a deposit for each eligible container purchased. Then the program guarantees consumers repayment of that deposit, the California redemption value (CRV), for each eligible container returned to a certified recycler. Statute includes two main goals for the program: 1) reducing litter; and, 2) achieving a recycling rate of 80% for eligible containers. Containers recycled through the Bottle Bill's certified recycling centers also provides a consistent, clean, uncontaminated stream of recycled materials with minimal processing.

Eligible beverage containers. Only certain containers containing certain beverages are part of the CRV program. Most containers made from glass, plastic, aluminum, and bimetal (consisting of one or more metals) are included. Containers for wine, spirits, milk, fruit juices over 46 ounces, vegetable juice over 16 ounces, and soy drinks have historically been excluded from the program. Container types that are cartons, pouches, and any container that holds 64 ounces or more have also historically been exempted. SB 1013 (Atkins), Chapter 610, Statutes of 2022, amended the program to include wine and distilled spirits, including those contained in boxes, bladders, pouches, or similar containers, beginning January 1, 2024. SB 353 (Dodd), Chapter 868, Statutes of 2023, further expands the program to include large juice containers beginning January 1, 2026.

Funding. Recent legislation, SB 1013 (Atkins), Chapter 610, Statutes of 2022, and SB 353 (Dodd), Chapter 868, Statutes of 2023, increased revenues in the BCRF by adding new container types to the Bottle Bill triggering an increase in unredeemed CRV funds. This increase is likely to be temporary and dissipate as consumers increase redemptions of the newer container types. In order to incentivize recycling increased glass containers from the addition of wine and distilled spirits, SB 1013 authorized up to $15 million annually for quality incentive payments for color-sorted glass beverage containers that are substantially free of contamination and that are used for the manufacturing of glass beverage containers in the state and $60 million annually for glass market development payments until January 1, 2028.

The glass quality incentive payments are under-subscribed. Of the $15 million allocated for glass quality incentive payments, CalRecycle expended just under $8.4 million in 2024 and $5.7 million in 2023. According to the most recent report on the status of the BCRF, which was released last October and covers January through June 2024, the fund is operating at a modest surplus. However, as recycling rates for containers that were recently added, such as wine bottles, rise, the fund status may change. Prior Bottle Bill expansions have tended to result in increased revenues initially, and increased expenditures for CRV deposits further out as recycling rates increase.

The Bottle Bill also establishes glass processing incentive grants for expanding glass cullet processing in the state, as specified; $4 million is available annually for this grant program. Another $4 million is available annually for grants to increase the recycling of empty glass beverage containers from restaurants and on-site retail establishments. An additional $1 million is available annually for grants to fund transportation costs for glass beverage containers.

Glass disposal and recycling. CalRecycle's most recent comprehensive waste characterization study was conducted in 2021 and found that glass makes up approximately 2.3% of California's waste stream. According to What's in California's Landfills: Measuring Single-Use Packaging and Plastic Food Service Ware Disposal (2025), approximately 154,000 tons of glass bottles and jars are disposed in California's landfills, making up 0.39% of California's waste stream.

In recent years, California has moved toward funding circular recycling to support the development of a circular economy. For example, SB 1013 limited the glass market development payments to bottle-to-bottle recycling in 2022. This bill would provide funding for "downcycling," or recycling materials into products that won't continue to be recycled in the future. This bill seeks to provide funding for other forms of in-state glass recycling, which could include the manufacture of fiberglass insulation, using the unexpended funds available for glass quality incentive payments.

According to the Author

California has the ambitious goal of achieving an 80% recycling rate for beverage containers sold in the state, and established Quality Incentive Payments (QIP) to help reach this goal. By paying entities that clean and sort recycled glass, the state helps cover the costly processing of recycled glass suitable for manufacturing new products. In 2022, SB 1013 (Atkins) increased the amount allocated for QIP from $10 million to $15 million annually, while at the same time restricting eligibility to only recycled glass used for beverage containers. This change has led to the unintended consequences of lower recycling rates, decreased support to glass processors, and rising costs in producing the fiberglass insulation necessary weatherizing new homes and bringing down heating and air conditioning costs, all while millions of dollars authorized for the QIP go unspent every year.

AB 2481 fixes this problem by authorizing CalRecycle to make QIP payments for glass used for products besides beverage containers, but only using leftover funds after all QIP payments for glass used in beverage containers has been made. This simple, targeted solution maintains priority for the use of recycled glass in glass beverage containers without putting other significant end users of recycled glass in the state at an insurmountable disadvantage. Through this small change, AB 2481 ensures the efficient use of state funds to promote glass recycling and lowers the cost of producing fiberglass insulation for building critically needed new homes and bringing down electric bills in existing houses.

Arguments in Support

According to the North American Insulation Manufacturers Association, "AB 2481 ensures that funding already appropriated for the Quality Incentive Payment program is fully utilized. By allowing payments to support the use of recycled glass beverage containers that are substantially free from contamination and used by other manufacturers, the bill strengthens the economics of glass recycling and helps processors produce high-quality cullet that meets the rigorous cleaning and color-sorting standards required for manufacturing new glass products in California."

Arguments in Opposition

None on file

FISCAL COMMENTS

1. To the extent that QIP funds would have otherwise remained unspent or expended for other purposes absent this bill following the disbursement for glass used in beverage containers, ongoing cost pressure of an unknown amount, likely in the low millions of dollars, for CalRecycle to provide QIPs to manufacturers of glass products in the state that are not beverage containers (BCRF).
2. CalRecycle anticipates minor and absorbable workload costs as a result of this bill (BCRF).

VOTES:

ASM NATURAL RESOURCES: 14-0-0

YES: Bryan, Ellis, Alanis, Connolly, Garcia, Haney, Hoover, Kalra, Macedo, Muratsuchi, Pellerin, Schultz, Hart, Zbur

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Hoover, Aguiar-Curry, Calderon, Caloza, Dixon, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache, Ta, Tangipa

ASSEMBLY FLOOR: 78-0-2

YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

ABS, ABST OR NV: Muratsuchi, Celeste Rodriguez

SENATE FLOOR: 39-0-1

YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

ABS, ABST OR NV: Reyes

UPDATED

VERSION: June 22, 2026

CONSULTANT: Elizabeth MacMillan / NAT. RES. / (916) 319-3092 FN: 0003846

 THIRD READING  

Bill No: AB 2481

Author: Soria (D)

Amended: 6/22/26 in Senate

Vote: 27

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 7/1/26

AYES: Blakespear, Valladares, Allen, Dahle, Gonzalez, Hurtado, Menjivar

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/13/26

AYES: Cervantes, Seyarto, Cabaldon, Dahle, Grayson, Richardson, Wahab

ASSEMBLY FLOOR: 78-0, 5/26/26 - See last page for vote

SUBJECT: Beverage containers: recycling: glass: quality incentive payments

SOURCE: Author

DIGEST: This bill allows Department of Resources Recycling and Recovery (CalRecycle) to use any money left in the quality incentive payments on an annual basis to in-state manufacturers of glass products other than beverage containers.

ANALYSIS:

Existing law:

1. Establishes the Bottle bill administered by the Department of Resources Recycling and Recovery (CalRecycle). The bottle bill requires beverage containers sold in-state to have a California redemption value (CRV) of 5 cents for containers that hold fewer than 24 ounces and 10 cents for containers that hold 24 ounces or more. The Bottle bill further sets a CRV of 25 cents for boxes, bladders, or pouches containing wine, distilled spirits, wine coolers, or distilled spirit coolers. (Public Resources Code (PRC) § 14500 et seq.)
2. Establishes the California Beverage Container Recycling Fund (BCRF) and continuously appropriates moneys in the BCRF to CalRecycle for specified purposes for the Bottle bill, including paying operation costs, paying grants, and paying handling fees. (PRC § 14580)
3. Defines “beverage container” as the individual, separate bottle, can, jar, carton, or other receptacle in which a beverage is sold, and which is constructed of metal, glass, plastic, or any other material, or any combination of these materials, and beginning January 1, 2024, includes wine and distilled spirits beverage containers. (PRC § 14505)
4. Authorizes CalRecycle to make quality incentive payments (QIP) meeting specified criteria, including the department the amount of quality incentive payment for glass empty glass beverage containers should be up to $60.00 per ton, and that the payments shall go to color sorted empty glass beverage containers that are collected by curbside recycling programs or drop off collection programs (PRC 14549.1)
5. Authorizes CalRecycle to allocate up to $60 million annually for glass market development payments through 2028. (PRC 14581(a)(13)(A))
6. Authorizes CalRecycle to allocate up to $20 million annually for glass market development payments in years 2029-2030. (PRC 14581(a)(13)(B))

This bill:

1. Authorizes CalRecycle to expend any QIP funds for glass that are unspent at the end of the calendar year (and following the second biannual disbursement of QIPs) to manufacturers in the state that make products other than beverage containers.
2. Specifies that eligible empty glass beverage containers must be substantially free from contamination.
3. Limits this QIP money going to in-state non-beverage container manufacturers to a maximum of $30/ton (half of what it is for beverage container manufacturers).

Background

Bottle bill Background. The bottle bill was established by the Legislature in 1986, with the twin goals of reducing litter and achieving a recycling rate of 80% for containers in the program. In 2023, the recycling rate for bottles in the program was 70%. This rate of recycling is only slightly higher than it was during the COVID-19 pandemic, where it dipped from higher than 75% in 2016-2019 down to 68% in 2021. In broad strokes, the program operates by adding a small CRV (between 5-25 cents per container) on beverages which consumers pay at check out, and can then be redeemed when the bottles are brought to a collection site or recycling center in the program. The CRV incentivizes consumers and businesses to bring bottles back into the recycling system, reducing the likelihood of bottles ending up as litter or in a landfill.

Money moves in the bottle bill. The CRV is paid up-front by distributors who pay the CRV to CalRecycle for every beverage container sold in the state. Next, retailers pay the CRV to distributors, and consumers pay the CRV to retailers. CRV is paid into the California Beverage Container Recycling Fund (BCRF) and CalRecycle pays out of this Fund for CRV redemption (CRV-out). If beverages are not redeemed, however, that money stays in the BCRF as surplus. This surplus is used to operate the bottle bill program: unredeemed CRV is the primary funding source for the bottle bill, and is used to fund the administration of the program, grants that advance recycling, and various incentive payments that keep the program running. As the recycling rate increases, less funding is available to make all the budgeted payments prescribed in statute, including CRV-out, BCRP administration, local conservation corps grants, and other payments. A structural deficit occurs when program payments exceed program revenue for a given timeline. The structural deficit can exist even if there are still funds left over in the BCRF pot. When recycling rates were at their peak for the bottle bill program, the BCRF was running at a structural deficit. Because the number of beverage containers in the bottle bill in a given year is very large, small changes to the rate of CRV-in vs. CRV-out translate to large changes (and large sums of money) in the BCRF.

QIP and other funding for glass recycling. QIPS are subsidies awarded to certified recycling entities that sort and clean CRV glass beverage containers. Only color-sorted glass beverage containers that are substantially free of contamination and are used for the manufacturing of glass beverage containers in this state are currently eligible for QIP. This incentivizes a closed loop system in California, where glass bottles are collected and converted into new glass bottles all within the state. Currently, eligible processors can receive QIP of up to $60 per ton of clean and color sorted glass, and there is $15 million annually available for eligible QIP.

To date, the glass quality incentive payment program has been underutilized. Of the $15 million available each year, CalRecycle distributed just under $8.4 million in 2024 and $5.7 million in 2023.

The Bottle Bill provides several grant programs to strengthen California’s glass recycling infrastructure in addition to QIP. Up to $4 million annually is available for glass processing incentive grants that support the expansion of in-state glass cullet processing capacity. Another $4 million per year is available for grants that increase the collection and recycling of empty glass beverage containers from restaurants and other on-site retail establishments. An additional $1 million annually supports grants that help offset transportation costs associated with moving glass beverage containers for recycling. CalRecycle is also authorized to expend up to $60 million annually for glass market development payments through January 1, 2028.

Glass recycling is expensive. According CalRecycle’s January-June 2025 Biannual Rates History, recycling rate (based on CRV) for glass was lower than that of aluminum or PET plastic (the most recyclable form of plastic), but slightly better than for HDPE or other plastics. The recycling rate for aluminum was 74%, 78% for PET, and only 62% for glass.

While glass is very recyclable, it is also expensive to recycle due to a number of characteristics of glass in the recycling stream. For instance, glass can be easily broken, especially when it lands in curbside bins, and can be broken up and contaminated with other materials. Glass is also heavy to transport, making its CRV value per pound lower than for aluminum and plastic. According to CalRecycle’s 2025 Recycling Program Rates report as of January 1, 2025, the Refund Value Per Segregated Pound of glass was just a fraction (at $0.102 per pound) of the value for aluminum ($1.65 per pound) or PET ($1.47 per pound). Likewise, the scrap value per ton for aluminum is currently $1,245.48, PET is $211.62, whereas glass is just $3.82 per ton.

Comments

Purpose of Bill. According to the author, “California has the ambitious goal of achieving an 80% recycling rate for beverage containers sold in the state, and established Quality Incentive Payments (QIP) to help reach this goal. By paying entities that clean and sort recycled glass, the state helps cover the costly processing of recycled glass suitable for manufacturing new products. In 2022, SB 1013 (Atkins) increased the amount allocated for QIP from $10 million to $15 million annually, while at the same time restricting eligibility to only recycled glass used for beverage containers. This change has led to the unintended consequences of lower recycling rates, decreased support to glass processors, and rising costs in producing the fiberglass insulation necessary weatherizing new homes and bringing down heating and air conditioning costs, all while millions of dollars authorized for the QIP go unspent every year.

“AB 2481 fixes this problem by authorizing CalRecycle to make QIP payments for glass used for products besides beverage containers, but only using leftover funds after all QIP payments for glass used in beverage containers has been made. This simple, targeted solution maintains priority for the use of recycled glass in glass beverage containers without putting other significant end users of recycled glass in the state at an insurmountable disadvantage. Through this small change, AB 2481 ensures the efficient use of state funds to promote glass recycling and lowers the cost of producing fiberglass insulation for building critically needed new homes and bringing down electric bills in existing houses”

Revisiting QIPs for fiberglass. In SB 1013, the Legislature limited glass QIP only to glass going towards beverage container manufacturing, beginning January 1^st, 2023. This policy incentivizes closed-loop, bottle-to-bottle recycling in the state, and was a departure from previous law where QIP money could go towards processors selling cullet to other entities such as manufacturers of fiberglass.

However, since SB 1013 was implemented, there have been remaining funds in the QIP. In 2023, of the $15 million allocated for QIP, $9,281,706 went unspent. In 2024, $ 6,612,528 was left in the fund. Given that there has, at least in recent years, been unspent QIP funds remaining after cullet going to bottle-to-bottle has been paid and that this bill specifies that QIP money can only go to benefit non-bottle manufacturers if there are funds leftover in the QIP pot, this bill creates an opportunity to support glass processors and down cycling only when closed-loop recycling is not a viable option.

Related/Prior Legislation

AB 899 (Ransom, Chapter 627, Statutes of 2025), raised the cap on glass market development payments from $50 to $150 per ton and authorized CalRecycle to expend up to $20 million annually for the payments through 2030. This bill also expanded the focus of these payments from glass wine bottles to all glass beverage containers and authorized CalRecycle to set different limits.

SB 353 (Dodd), Chapter 868, Statutes of 2023, added large fruit and vegetable juice containers to the Bottle Bill and extended the date by which beverage containers for large fruit and vegetable juice containers are required to comply with statutory postconsumer recycled content requirements until 2026. This bill also established certain extensions on labeling requirements for new containers added to the Bottle Bill. This bill authorized CalRecycle to use either the three month average or 12 month average for scrap material values when adjusting processing payments. Finally, this bill established a per-ton temporary payment to rural recyclers for glass until 2030.

SB 1013 (Atkins, Chapter 610, Statutes of 2022), among other things, added wine and distilled spirits to the Bottle Bill. This bill established various small grant programs to incentivize the recycling of beverage container glass in the state and clarified that glass quality incentive payments may be awarded for glass beverage containers that meet specified criteria. This bill also established a glass market development payment of up to $50 per ton for glass beverage container manufacturers who purchase recycled glass collected within the state for use in the manufacture of new beverage containers and appropriated up to $60 million annually for this program through 2028.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee:

• To the extent that QIP funds would have otherwise remained unspent or expended for other purposes absent this bill following the disbursement for glass used in beverage containers, ongoing cost pressure of an unknown amount, likely in the low millions of dollars, for CalRecycle to provide QIPs to manufacturers of glass products in the state that are not beverage containers (BCRF).
• CalRecycle anticipates minor and absorbable workload costs as a result of this bill (BCRF).

SUPPORT: (Verified 8/14/2026)

Californians Against Waste
Knauf Insulation
North American Insulation Manufacturers Association
Saint-gobain North America
Sibelco Glass Recycling North America

OPPOSITION: (Verified 8/14/2026)

None received

ASSEMBLY FLOOR: 78-0, 5/26/26

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: Muratsuchi, Celeste Rodriguez

Prepared by: Brynn Cook / E.Q. / (916) 651-4108

8/15/26 11:27:08

**** END ****

SENATE COMMITTEE ON

Senator Sabrina Cervantes, Chair

2025 - 2026 Regular Session

AB 2481 (Soria) - Beverage containers: recycling: glass: quality incentive payments

Bill Summary:

This bill would allow the Department of Resources Recycling and Recovery (CalRecycle) to use any money left in the quality incentive payments (QIPs) on an annual basis for the manufacturing of glass products in the state that are not beverage containers.

Fiscal Impact:

• To the extent that QIP funds would have otherwise remained unspent or expended for other purposes absent this bill following the disbursement for glass used in beverage containers, ongoing cost pressure of an unknown amount, likely in the low millions of dollars, for CalRecycle to provide QIPs to manufacturers of glass products in the state that are not beverage containers (BCRF).
• CalRecycle anticipates minor and absorbable workload costs as a result of this bill (BCRF).

Background:

The Beverage Container Recycling Program (BCRP) was established over 30 years ago with the enactment of Chapter 1290, Statutes of 1986 (AB 2020, Margolin). The purpose of the program is to be a self-funded program that encourages consumers to recycle certain beverage containers. The program accomplishes this goal by first requiring consumers to pay a deposit for each eligible container purchased, then guaranteeing consumers repayment of that deposit — the California Redemption Value, or CRV — for each eligible container returned to a certified recycler. Statute includes two main goals for the program: reducing litter and achieving a recycling rate of 80 percent for eligible containers. As of 2023, the recycling rate was 70 percent, down from more than 75 percent in 2016-2019.

Eligible beverage containers. Most containers made from glass, plastic, aluminum, and bimetal are eligible. Cartons, pouches, and containers holding 64 ounces or more are excluded, as are containers for milk, fruit juices over 46 ounces, vegetable juices over 16 ounces, and soy drinks. SB 1013 (Atkins, 2022) added wine and distilled spirits, and SB 353 (Dodd, 2023) added large fruit and vegetable juice containers.

Flow of CRV and program funding. CRV moves between consumers, retailers, distributors, recyclers, and manufacturers, with the California Beverage Container Recycling Fund (BCRF) collecting and distributing payments. Because not every eligible container is redeemed, distributors pay more CRV into the fund than consumers claim, and state law directs much of that unredeemed CRV to specified recycling-related programs, program administration, and incentive payments. That structure means the program's funding shrinks as the recycling rate rises: when recycling rates peaked, the BCRF ran a structural deficit, and because container volumes are so large, small changes in the redemption rate translate into large swings in the fund. CalRecycle reports the BCRF had an ending balance of about $822 million in FY 2024-25 and projects an ending balance of about $718 million at the close of the current fiscal year.

Recent BCRF commitments. The Budget Act of 2026 committed substantial new BCRF resources, including $100 million one-time for the Beverage Container Quality Infrastructure Grant Program to improve processors' sorting capacity and material quality, $90 million over three years for the Plastic Market Development Payment Program along with an increase in the maximum rate from $150 to $250 per ton, $50 million one-time to help up to 40 rural local governments establish CRV redemption locations, and $5 million annually over three years for a plastic reclaimers and manufacturers grant program.

Glass recycling. Glass recycles at a lower rate than aluminum or PET — 62 percent, against 74 percent and 78 percent respectively — and is costlier to handle. It breaks easily in curbside collection and becomes contaminated, and it is heavy relative to its value: the refund value per segregated pound is $0.102, against $1.65 for aluminum and $1.47 for PET, and the scrap value per ton is $3.82, against $1,245.48 for aluminum and $211.62 for PET.

Quality incentive payments. QIPs are subsidies awarded to certified recycling entities that sort and clean CRV glass beverage containers. Eligibility is currently limited to color-sorted containers substantially free of contamination and used to manufacture glass beverage containers in California, which incentivizes a closed-loop system. Processors can receive up to $60 per ton, with $15 million available annually. The program has been underutilized, though utilization is rising: CalRecycle distributed about $5.7 million in 2023, $8.4 million in 2024, and $9.9 million in 2025, leaving roughly $9.3 million, $6.6 million, and $5.1 million unspent in those years respectively.

Proposed Law:

This bill would:

1. Authorize CalRecycle, at the end of the calendar year and following the second biannual disbursement of quality incentive payments (QIP) for color-sorted glass beverage containers and empty glass beverage containers used for manufacturing glass beverage containers in the state, to use any remaining funds from the annual appropriation to make quality incentive payments for empty glass beverage containers used for the manufacturing of glass products in the state that are not beverage containers.
2. Specify that eligible empty glass beverage containers must be substantially free from contamination.
3. Limit the payment to up to $30 per ton, as determined by CalRecycle, and make it available only for material that would otherwise qualify for quality incentive payments for color-sorted glass beverage containers.

Related Legislation:

AB 899 (Ransom, 2025) raised the cap on glass market development payments from $50 to $150 per ton and authorized CalRecycle to expend up to $20 million annually for the payments through 2030. The bill also expanded the focus of these payments from glass wine bottles to all glass beverage containers and authorized CalRecycle to set different limits.

SB 353 (Dodd, 2023) added large fruit and vegetable juice containers to the Bottle Bill and extended the date by which beverage containers for large fruit and vegetable juice containers are required to comply with statutory postconsumer recycled content requirements until 2026. The bill also established certain extensions on labeling requirements for new containers added to the Bottle Bill, authorized CalRecycle to use either the three-month average or 12-month average for scrap material values when adjusting processing payments, and established a per-ton temporary payment to rural recyclers for glass until 2030.

SB 1013 (Atkins, 2022) among other things, added wine and distilled spirits to the Bottle Bill. The bill established various small grant programs to incentivize the recycling of beverage container glass in the state and clarified that glass quality incentive payments may be awarded for glass beverage containers that meet specified criteria. The bill also established a glass market development payment of up to $50 per ton for glass beverage container manufacturers who purchase recycled glass collected within the state for use in the manufacture of new beverage containers and appropriated up to $60 million annually for this program through 2028.

Staff Comments:

Fund condition. CalRecycle reports the BCRF had an ending balance of about $822 million in FY 2024-25 and projects an ending balance of about $718 million at the close of the current fiscal year, though that figure could change based on year-end actuals.

Recent BCRF allocations. The Budget Act of 2026 increased the maximum payment rate per ton from $150 to $250 for the Plastic Market Development Payment Program until July 1, 2029, and appropriated $90 million from the BCRF over three years: $35 million in 2026-27, $30 million in 2027-28, and $25 million in 2028-29. It also included $5 million annually from the BCRF in 2026-27 through 2028-29 for a plastic reclaimers and manufacturers grant program to support investments in recycling infrastructure. The budget included $100 million one-time from the BCRF to support grants for the Beverage Container Quality Infrastructure Grant Program to improve California processors' capacity to sort CRV materials and produce cleaner, higher-quality material streams, and $282,000 and 2.0 positions ongoing and $50 million one-time from the BCRF for allocations to support up to 40 rural local governments over five years to establish CRV redemption locations. The budget further included 7.0 permanent positions and $1.002 million from the BCRF in 2026-27 and ongoing to perform compliance and enforcement tasks associated with the Beverage Container Recycling and Litter Reduction Program new dealer requirements and dealer cooperatives authorized under SB 1013 (Atkins, 2022), along with various reversions from the BCRF for the Beverage Container Loan Program, the Workforce Development Program, the Beverage Container Quality Infrastructure Grant Program, and the Reusable Beverage Containers Infrastructure Grant Program.

Glass. No item in the Budget Act of 2026 addresses glass quality incentive payments, the $15 million annual allocation, or the underutilization this bill would address. The budget's new BCRF allocations run heavily toward plastic — $90 million in market development payments plus $5 million annually in reclaimer grants — while glass, which has the lowest scrap value of the major container materials and recycles at a lower rate than aluminum or PET, receives no new funding.

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Blakespear, Chair

2025 - 2026 Regular

Bill No: AB 2481

SUBJECT: Beverage containers: recycling: glass: quality incentive payments

DIGEST: This bill would allow Department of Resources Recycling and Recovery (CalRecycle) to use any money left in the quality incentive payments on an annual basis to fiberglass insulation manufacturers and other entities located in-state that use glass cullet.

ANALYSIS:

Existing law:

1. Establishes the Bottle bill administered by the Department of Resources Recycling and Recovery (CalRecycle). The bottle bill requires beverage containers sold in-state to have a California redemption value (CRV) of 5 cents for containers that hold fewer than 24 ounces and 10 cents for containers that hold 24 ounces or more. The Bottle bill further sets a CRV of 25 cents for boxes, bladders, or pouches containing wine, distilled spirits, wine coolers, or distilled spirit coolers. (Public Resources Code (PRC) § 14500 et seq.)
2. Establishes the California Beverage Container Recycling Fund (BCRF) and continuously appropriates moneys in the BCRF to CalRecycle for specified purposes for the Bottle bill, including paying operation costs, paying grants, and paying handling fees. (PRC § 14580)
3. Defines “beverage container” as the individual, separate bottle, can, jar, carton, or other receptacle in which a beverage is sold, and which is constructed of metal, glass, plastic, or any other material, or any combination of these materials, and beginning January 1, 2024, includes wine and distilled spirits beverage containers. (PRC § 14505)
4. Authorizes CalRecycle to make quality incentive payments (QIP) meeting specified criteria, including the department the amount of quality incentive payment for glass empty glass beverage containers should be up to $60.00 per ton, and that the payments shall go to color sorted empty glass beverage containers that are collected by curbside recycling programs or drop off collection programs (PRC 14549.1)
5. Authorizes CalRecycle to allocate up to $60 million annually for glass market development payments through 2028. (PRC 14581(a)(13)(A))
6. Authorizes CalRecycle to allocate up to $20 million annually for glass market development payments in years 2029-2030. (PRC 14581(a)(13)(B))
   

This bill:

1. Authorizes CalRecycle to expend any QIP funds for glass that are unspent at the end of the calendar year (and following the second biannual disbursement of QIPs) to manufacturers in the state that make products other than beverage containers (including manufacturers of fiberglass insulation)
2. Specifies that eligible empty glass beverage containers must be substantially free from contamination.
3. Limits this QIP money going to in-state non-beverage container manufacturers to a maximum of $30/ton (half of what it is for beverage container manufacturers).

Background

1. Bottle bill Background. The bottle bill was established by the Legislature in 1986, with the twin goals of reducing litter and achieving a recycling rate of 80% for containers in the program. In 2023, the recycling rate for bottles in the program was 70%. This rate of recycling is only slightly higher than it was during the COVID-19 pandemic, where it dipped from higher than 75% in 2016-2019 down to 68% in 2021. In broad strokes, the program operates by adding a small CRV (between 5-25 cents per container) on beverages which consumers pay at check out, and can then be redeemed when the bottles are brought to a collection site or recycling center in the program. The CRV incentivizes consumers and businesses to bring bottles back into the recycling system, reducing the likelihood of bottles ending up as litter or in a landfill.
2. Money moves in the bottle bill. The CRV is paid up-front by distributors who pay the CRV to CalRecycle for every beverage container sold in the state. Next, retailers pay the CRV to distributors, and consumers pay the CRV to retailers. CRV is paid into the California Beverage Container Recycling Fund (BCRF) and CalRecycle pays out of this Fund for CRV redemption (CRV-out). If beverages are not redeemed, however, that money stays in the BCRF as surplus. This surplus is used to operate the bottle bill program: unredeemed CRV is the primary funding source for the bottle bill, and is used to fund the administration of the program, grants that advance recycling, and various incentive payments that keep the program running. As the recycling rate increases, less funding is available to make all the budgeted payments prescribed in statute, including CRV-out, BCRP administration, local conservation corps grants, and other payments. A structural deficit occurs when program payments exceed program revenue for a given timeline. The structural deficit can exist even if there are still funds left over in the BCRF pot. When recycling rates were at their peak for the bottle bill program, the BCRF was running at a structural deficit. Because the number of beverage containers in the bottle bill in a given year is very large, small changes to the rate of CRV-in vs. CRV-out translate to large changes (and large sums of money) in the BCRF.
   
3. QIP and other funding for glass recycling. QIPS are subsidies awarded to certified recycling entities that sort and clean CRV glass beverage containers. Only color-sorted glass beverage containers that are substantially free of contamination and are used for the manufacturing of glass beverage containers in this state are currently eligible for QIP. This incentivizes a closed loop system in California, where glass bottles are collected and converted into new glass bottles all within the state. Currently, eligible processors can receive QIP of up to $60 per ton of clean and color sorted glass, and there are $15 million annually available for eligible QIP.

To date, the glass quality incentive payment program has been underutilized. Of the $15 million available each year, CalRecycle distributed just under $8.4 million in 2024 and $5.7 million in 2023.

The Bottle Bill provides several grant programs to strengthen California’s glass recycling infrastructure in addition to QIP. Up to $4 million annually is available for glass processing incentive grants that support the expansion of in-state glass cullet processing capacity. Another $4 million per year is available for grants that increase the collection and recycling of empty glass beverage containers from restaurants and other on-site retail establishments. An additional $1 million annually supports grants that help offset transportation costs associated with moving glass beverage containers for recycling. CalRecycle is also authorized to expend up to $60 million annually for glass market development payments through January 1, 2028.

1. Glass recycling is expensive. According CalRecycle’s January-June 2025 Biannual Rates History, recycling rate (based on CRV) for glass was lower than that of aluminum or PET plastic (the most recyclable form of plastic), but slightly better than for HDPE or other plastics. The recycling rate for aluminum was 74%, 78% for PET, and only 62% for glass.

While glass is very recyclable, it is also expensive to recycle due to a number of characteristics of glass in the recycling stream. For instance, glass can be easily broken, especially when it lands in curbside bins, and can be broken up and contaminated with other materials. Glass is also heavy to transport, making its CRV value per pound lower than for aluminum and plastic. According to CalRecycle’s 2025 Recycling Program Rates report as of January 1, 2025, the Refund Value Per Segregated Pound of glass was just a fraction (at $0.102 per pound) of the value for aluminum ($1.65 per pound) or PET ($1.47 per pound). Likewise, the scrap value per ton for aluminum is currently $1,245.48, PET is $211.62, whereas glass is just $3.82 per ton.

Comments

1. Purpose of Bill. According to the author, “California has the ambitious goal of achieving an 80% recycling rate for beverage containers sold in the state, and established Quality Incentive Payments (QIP) to help reach this goal. By paying entities that clean and sort recycled glass, the state helps cover the costly processing of recycled glass suitable for manufacturing new products. In 2022, SB 1013 (Atkins) increased the amount allocated for QIP from $10 million to $15 million annually, while at the same time restricting eligibility to only recycled glass used for beverage containers. This change has led to the unintended consequences of lower recycling rates, decreased support to glass processors, and rising costs in producing the fiberglass insulation necessary weatherizing new homes and bringing down heating and air conditioning costs, all while millions of dollars authorized for the QIP go unspent every year.

“AB 2481 fixes this problem by authorizing CalRecycle to make QIP payments for glass used for products besides beverage containers, but only using leftover funds after all QIP payments for glass used in beverage containers has been made. This simple, targeted solution maintains priority for the use of recycled glass in glass beverage containers without putting other significant end users of recycled glass in the state at an insurmountable disadvantage. Through this small change, AB 2481 ensures the efficient use of state funds to promote glass recycling and lowers the cost of producing fiberglass insulation for building critically needed new homes and bringing down electric bills in existing houses”

1. Revisiting QIPs for fiberglass. In SB 1013, the Legislature limited glass QIP only to glass going towards beverage container manufacturing, beginning January 1^st, 2023. This policy incentivizes closed-loop, bottle-to-bottle recycling in the state, and was a departure from previous law where QIP money could go towards processors selling cullet to other entities such as manufacturers of fiberglass.

However, since SB 1013 was implemented, there have been remaining funds in the QIP. In 2023, of the $15 million allocated for QIP, $9,281,706 went unspent. In 2024, $ 6,612,528 was left in the fund. Given that there has, at least in recent years, been unspent QIP funds remaining after cullet going to bottle-to-bottle has been paid and that AB 2481 specifies that QIP money can only go to benefit non-bottle manufacturers if there are funds leftover in the QIP pot, AB2 418 creates an opportunity to support glass processors and down cycling only when closed-loop recycling is not a viable option.

Related/Prior Legislation

AB 899 (Ransom), Chapter 627, Statutes of 2025, raised the cap on glass market development payments from $50 to $150 per ton and authorized CalRecycle to expend up to $20 million annually for the payments through 2030. This bill also expanded the focus of these payments from glass wine bottles to all glass beverage containers and authorized CalRecycle to set different limits.

SB 353 (Dodd), Chapter 868, Statutes of 2023, added large fruit and vegetable juice containers to the Bottle Bill and extended the date by which beverage containers for large fruit and vegetable juice containers are required to comply with statutory postconsumer recycled content requirements until 2026. This bill also established certain extensions on labeling requirements for new containers added to the Bottle Bill. This bill authorized CalRecycle to use either the three month average or 12 month average for scrap material values when adjusting processing payments. Finally, this bill established a per-ton temporary payment to rural recyclers for glass until 2030.

SB 1013 (Atkins), Chapter 610, Statutes of 2022, among other things, added wine and distilled spirits to the Bottle Bill. This bill established various small grant programs to incentivize the recycling of beverage container glass in the state and clarified that glass quality incentive payments may be awarded for glass beverage containers that meet specified criteria. This bill also established a glass market development payment of up to $50 per ton for glass beverage container manufacturers who purchase recycled glass collected within the state for use in the manufacture of new beverage containers and appropriated up to $60 million annually for this program through 2028.

SOURCE:

North American Insulation Manufacturers Association (NAIMA)

SUPPORT:

Californians Against Waste
Knauf Insulation
North American Insulation Manufacturers Association
North American Insulation Manufacturers Association (UNREG)
Saint-gobain North America
Sibelco Glass Recycling North America

OPPOSITION:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2481

Author:(Soria)

As Amended Ver:April 16, 2026

2/3 vote

SUMMARY

Authorizes the Department of Resources Recycling and Recovery (CalRecycle), at the end of the calendar year and following the biannual disbursement of quality incentive payments (QIPs) from the Beverage Container Recycling Fund (BCRF) for color-sorted glass beverage containers and empty glass beverage containers used for the manufacturing of glass beverage containers in the state, to use any remaining funds to make a QIP disbursement for empty glass beverage containers that are substantially free from contamination and used by other manufacturers in the state, including manufacturers of fiberglass insulation in the state that use glass cullet.

Major Provisions

COMMENTS

Bottle Bill. The Bottle Bill was established in 1986 to be a self-funded program that encourages consumers to recycle beverage containers and to prevent littering. The program accomplishes this goal by requiring consumers to pay a deposit for each eligible container purchased. Then the program guarantees consumers repayment of that deposit, the CRV, for each eligible container returned to a certified recycler. Statute includes two main goals for the program: 1) reducing litter; and, 2) achieving a recycling rate of 80% for eligible containers. Containers recycled through the Bottle Bill's certified recycling centers also provides a consistent, clean, uncontaminated stream of recycled materials with minimal processing.

Eligible beverage containers. Only certain containers containing certain beverages are part of the CRV program. Most containers made from glass, plastic, aluminum, and bimetal (consisting of one or more metals) are included. Containers for wine, spirits, milk, fruit juices over 46 ounces, vegetable juice over 16 ounces, and soy drinks have historically been excluded from the program. Container types that are cartons, pouches, and any container that holds 64 ounces or more have also historically been exempted. SB 1013 (Atkins), Chapter 610, Statutes of 2022, amended the program to include wine and distilled spirits, including those contained in boxes, bladders, pouches, or similar containers, beginning January 1, 2024. SB 353 (Dodd), Chapter 868, Statutes of 2023, further expands the program to include large juice containers beginning January 1, 2026.

Funding. Recent legislation, SB 1013 (Atkins), Chapter 610, Statutes of 2022, and SB 353 (Dodd), Chapter 868, Statutes of 2023, increased revenues in the BCRF by adding new container types to the Bottle Bill triggering an increase in unredeemed CRV funds. This increase is likely to be temporary and dissipate as consumers increase redemptions of the newer container types. In order to incentivize recycling increased glass containers from the addition of wine and distilled spirits, SB 1013 authorized up to $15 million annually for quality incentive payments for color-sorted glass beverage containers that are substantially free of contamination and that are used for the manufacturing of glass beverage containers in the state and $60 million annually for glass market development payments until January 1, 2028.

The glass quality incentive payments are under-subscribed. Of the $15 million allocated for glass quality incentive payments, CalRecycle expended just under $8.4 million in 2024 and $5.7 million in 2023. According to the most recent report on the status of the BCRF, which was released last October and covers January through June 2024, the fund is operating at a modest surplus. However, as recycling rates for containers that were recently added, such as wine bottles, rise, the fund status may change. Prior Bottle Bill expansions have tended to result in increased revenues initially, and increased expenditures for CRV deposits further out as recycling rates increase.

The Bottle Bill also establishes glass processing incentive grants for expanding glass cullet processing in the state, as specified; $4 million is available annually for this grant program. Another $4 million is available annually for grants to increase the recycling of empty glass beverage containers from restaurants and on-site retail establishments. An additional $1 million is available annually for grants to fund transportation costs for glass beverage containers.

Glass disposal and recycling. CalRecycle's most recent comprehensive waste characterization study was conducted in 2021 and found that glass makes up approximately 2.3% of California's waste stream. According to What's in California's Landfills: Measuring Single-Use Packaging and Plastic Food Service Ware Disposal (2025), approximately 154,000 tons of glass bottles and jars are disposed in California's landfills, making up 0.39% of California's waste stream.

In recent years, California has moved toward funding circular recycling to support the development of a circular economy. For example, SB 1013 limited the glass market development payments to bottle-to-bottle recycling in 2022. This bill would provide funding for "downcycling," or recycling materials into products that won't continue to be recycled in the future. This bill seeks to provide funding for other forms of in-state glass recycling, including the manufacture of fiberglass insulation, using the unexpended funds available for glass quality incentive payments.

According to the Author

California has the ambitious goal of achieving an 80% recycling rate for beverage containers sold in the state, and established Quality Incentive Payments (QIP) to help reach this goal. By paying entities that clean and sort recycled glass, the state helps cover the costly processing of recycled glass suitable for manufacturing new products. In 2022, SB 1013 (Atkins) increased the amount allocated for QIP from $10 million to $15 million annually, while at the same time restricting eligibility to only recycled glass used for beverage containers. This change has led to the unintended consequences of lower recycling rates, decreased support to glass processors, and rising costs in producing the fiberglass insulation necessary weatherizing new homes and bringing down heating and air conditioning costs, all while millions of dollars authorized for the QIP go unspent every year.

AB 2481 fixes this problem by authorizing CalRecycle to make QIP payments for glass used for products besides beverage containers, but only using leftover funds after all QIP payments for glass used in beverage containers has been made. This simple, targeted solution maintains priority for the use of recycled glass in glass beverage containers without putting other significant end users of recycled glass in the state at an insurmountable disadvantage. Through this small change, AB 2481 ensures the efficient use of state funds to promote glass recycling and lowers the cost of producing fiberglass insulation for building critically needed new homes and bringing down electric bills in existing houses.

Arguments in Support

According to the North American Insulation Manufacturers Association, "AB 2481 ensures that funding already appropriated for the Quality Incentive Payment program is fully utilized. By allowing payments to support the use of recycled glass beverage containers that are substantially free from contamination and used by other manufacturers, the bill strengthens the economics of glass recycling and helps processors produce high-quality cullet that meets the rigorous cleaning and color-sorting standards required for manufacturing new glass products in California."

Arguments in Opposition

None on file

FISCAL COMMENTS

1. Ongoing cost pressure of an unknown amount, likely in the low millions of dollars, for CalRecycle to provide QIPs to additional entities, including in-state manufacturers of fiberglass insulation that use glass cullet (BCRF).

Current law authorizes CalRecycle to allocate up to $15 million annually from BCRF for QIPs for color-sorted glass beverage containers that are substantially free of contamination and that are used for the manufacturing of glass beverage containers in the state. Of this $15 million allocated for glass QIPs, the department expended about $9.9 million in 2025, $8.4 million in 2024, and $5.7 million in 2023. This bill does not allocate new or additional funding from BCRF for additional entities; instead, it authorizes CalRecycle, subject to availability of funds in BCRF and after it makes QIPs for glass used in beverage containers, to use any remaining funds to make QIPs for fiberglass insulation manufacturers and other entities.

CalRecycle reports BCRF had an ending balance of about $822 million in fiscal year (FY) 2024-25 and is projected to have an ending balance of about $718 million at the end of this FY – although this figure could change based on actuals provided at the end of the FY.

1. CalRecycle anticipates minor and absorbable workload costs as a result of this bill (BCRF).

VOTES

ASM NATURAL RESOURCES: 14-0-0

YES: Bryan, Ellis, Alanis, Connolly, Garcia, Haney, Hoover, Kalra, Macedo, Muratsuchi, Pellerin, Schultz, Hart, Zbur

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Hoover, Aguiar-Curry, Calderon, Caloza, Dixon, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache, Ta, Tangipa

UPDATED

VERSION: April 16, 2026

CONSULTANT: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0002667

Date of Hearing: April 29, 2026

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 2481

Author:(Soria) – As Amended Ver:April 16, 2026

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill authorizes the Department of Resources Recycling and Recovery (CalRecycle), at the end of the calendar year and following the biannual disbursement of quality incentive payments (QIPs) from the Beverage Container Recycling Fund (BCRF) for color-sorted glass beverage containers and empty glass beverage containers used for the manufacturing of glass beverage containers in the state, to use any remaining funds to make a QIP disbursement for empty glass beverage containers that are substantially free from contamination and used by other manufacturers in the state, including manufacturers of fiberglass insulation in the state that use glass cullet.

FISCAL EFFECT:

1) Ongoing cost pressure of an unknown amount, likely in the low millions of dollars, for CalRecycle to provide QIPs to additional entities, including in-state manufacturers of fiberglass insulation that use glass cullet (BCRF).

Current law authorizes CalRecycle to allocate up to $15 million annually from BCRF for QIPs for color-sorted glass beverage containers that are substantially free of contamination and that are used for the manufacturing of glass beverage containers in the state. Of this $15 million allocated for glass QIPs, the department expended about $9.9 million in 2025, $8.4 million in 2024, and $5.7 million in 2023. This bill does not allocate new or additional funding from BCRF for additional entities; instead, it authorizes CalRecycle, subject to availability of funds in BCRF and after it makes QIPs for glass used in beverage containers, to use any remaining funds to make QIPs for fiberglass insulation manufacturers and other entities.

CalRecycle reports BCRF had an ending balance of about $822 million in fiscal year (FY) 2024-25 and is projected to have an ending balance of about $718 million at the end of this FY – although this figure could change based on actuals provided at the end of the FY.

2) CalRecycle anticipates minor and absorbable workload costs as a result of this bill (BCRF).

COMMENTS:

1) Purpose. According to the author:

By paying entities that clean and sort recycled glass, the state helps cover the costly processing of recycled glass suitable for manufacturing new products. In 2022, SB 1013 (Atkins) increased the amount allocated for QIP from $10 million to $15 million annually, while at the same time restricting eligibility to only recycled glass used for beverage containers. This change has led to the unintended consequences of lower recycling rates, decreased support to glass processors, and rising costs in producing the fiberglass insulation necessary weatherizing new homes and bringing down heating and air conditioning costs, all while millions of dollars authorized for the QIP go unspent every year.

AB 2481 fixes this problem by authorizing CalRecycle to make QIP payments for glass used for products besides beverage containers, but only using leftover funds after all QIP payments for glass used in beverage containers has been made.

2) Background. The Bottle Bill was established in 1986 to be a self-funded program to prevent littering and achieve an 80% recycling rate for eligible containers. The program requires consumers to pay a deposit for each eligible container purchased. The program then guarantees consumers repayment of that deposit, known as the California Redemption Value (CRV), for each eligible container returned to a certified recycler. CalRecycle administers the program and handles all program payments, including CRV, through the BCRF. Despite paying the CRV deposit, not all consumers recycle their CRV-eligible containers. The BCRF retains unredeemed deposits, and state law requires that much of the unredeemed CRV be spent on specified recycling related programs. Only certain containers containing certain beverages are part of the CRV program.

SB 1013 (Atkins), Chapter 610, Statutes of 2022, and SB 353 (Dodd), Chapter 868, Statutes of 2023, increased revenues in the BCRF by adding new container types to the Bottle Bill, triggering an increase in unredeemed CRV funds. This increase is likely to be temporary and dissipate as consumers increase redemptions of the newer container types.

In order to incentivize recycling more glass containers from the addition of wine and distilled spirits to the Bottle Bill program, SB 1013 authorized up to $15 million annually for QIPs for color-sorted glass beverage containers that are substantially free of contamination and that are used for the manufacturing of glass beverage containers in the state and $60 million annually for glass market development payments (MDPs) until January 1, 2028. AB 899 (Ransom), Chapter 627, Statutes of 2025, among other things, raised the cap on glass MDPs from $50 to $150 per ton and authorized CalRecycle to expend up to $20 million annually for the payments from 2028 to 2030.

The Bottle Bill also establishes glass processing incentive grants for expanding glass cullet processing in the state, as specified; $4 million is available annually for this grant program. Another $4 million is available annually for grants to increase the recycling of empty glass beverage containers from restaurants and on-site retail establishments. An additional $1 million is available annually for grants to fund transportation costs for glass beverage containers.

According to the North American Insulation Manufacturers Association (NAIMA), the sponsor of this bill, the fiberglass insulation industry is the second largest end user of recycled glass in California. Higher levels of recycled glass content reduce manufacturing costs, lower the embodied carbon of insulation, and reduce energy consumption for the life of the building. NAIMA argues that allowing payments to support recycled glass used in additional end markets strengthens the economics of glass recycling and helps processors produce high-quality cullet that meets the rigorous cleaning and color-sorting standards required for manufacturing new products in California.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: April 13, 2026

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Isaac G. Bryan, Chair

ABPCA Bill Id:AB 2481 (

Author:Soria) – As Introduced Ver:February 20, 2026

SUBJECT: Beverage containers: recycling: glass: quality incentive payments

SUMMARY: Authorizes the Department of Resources Recycling and Recovery (CalRecycle) to use any remaining funds left for glass quality incentive payments at the end of the calendar year and following the biannual disbursement of quality incentive payments for glass beverage containers for additional entities, including, but not limited to, fiberglass insulation manufacturers located in-state that use glass cullet.

EXISTING LAW establishes the Beverage Container Recycling and Litter Reduction Act (Bottle Bill), which:

1. Requires beverage containers, as defined, sold in-state to have a California redemption value (CRV) of 5 cents for containers that hold fewer than 24 ounces and 10 cents for containers that hold 24 ounces or more. Requires beverage distributors to pay a redemption payment to CalRecycle for every beverage container sold in the state. Provides that these funds are continuously appropriated to CalRecycle for, among other things, the payment of refund values and processing payments. (Public Resources Code (PRC) 14500 et seq.)
2. Defines “beverage” as:
   
   1. Beer and other malt beverages;
   2. Wine and distilled spirit coolers;
   3. Carbonated water;
   4. Noncarbonated water;
   5. Carbonated soft drinks;
   6. Noncarbonated soft drinks and sports drinks;
   7. Noncarbonated fruit juice drinks that contain any percentage of fruit juice;
   8. Coffee and tea drinks;
   9. Carbonated fruit drinks;
   10. Vegetable juice;
   11. Wine and sparkling wine; and,
   12. Distilled spirits. (PRC 14505)
       
3. Defines “beverage container” as the individual, separate bottle, can, jar, carton, or other receptacle in which a beverage is sold, and which is constructed of metal, glass, plastic, or any other material, or any combination of these materials. Specifies that “beverage container” does not include cups or other similar open or loosely sealed receptacles. (PRC 14505)
4. Authorizes CalRecycle to pay a quality incentive payment to improve the quality and marketability of empty beverage containers collected for recycling in the state, including a quality incentive payment of up to $60 per ton for glass beverage containers that are:
   1. Color-sorted and substantially free from contamination and used for the manufacturing of glass beverage containers in the state; or
   2. Empty glass beverage containers that are either collected color sorted by curbside recycling programs or dropoff collection programs, or that are collected mixed color by curbside recycling programs or dropoff or collection programs and are subsequently color sorted by the collector or any other entity, as specified. (PRC 14549.1)
5. Authorizes CalRecycle to pay a market development payment to glass beverage container manufacturers who purchases recycled glass collected within the state for use in manufacturing new beverage containers in the state to develop markets for glass beverage containers. Specifies that the recycled glass must be collected, washed, processed, and used for manufacturing in the state. (PRC 14549.7)
6. Limits the glass market development payments to not more than $150 per ton, and requires CalRecycle to consider the following when establishing the payments:
   1. The minimum funding level needed to encourage in-state washing and processing of empty glass beverage containers collected for recycling in the state;
   2. The minimum funding level needed to encourage in-state manufacturing that utilizes empty glass beverage containers collected for recycling in the state; and,
   3. The total amount of funds projected to be available for glass market development payments, and the desire to maintain the minimum funding level throughout the year. (PRC 14549.7)
7. Authorizes CalRecycle to allocate up to $60 million annually for glass market development payments through 2028. (PRC 14581(a)(13)(A))
8. Authorizes CalRecycle to allocate up to $20 million annually for glass market development payments in years 2029-2030. (PRC 14581(a)(13)(B))

FISCAL EFFECT: Unknown

COMMENTS:

1. Bottle Bill. The Bottle Bill was established in 1986 to be a self-funded program that encourages consumers to recycle beverage containers and to prevent littering. The program accomplishes this goal by requiring consumers to pay a deposit for each eligible container purchased. Then the program guarantees consumers repayment of that deposit, the CRV, for each eligible container returned to a certified recycler. Statute includes two main goals for the program: (1) reducing litter; and, (2) achieving a recycling rate of 80% for eligible containers. Containers recycled through the Bottle Bill’s certified recycling centers also provides a consistent, clean, uncontaminated stream of recycled materials with minimal processing.
   
2. Eligible beverage containers. Only certain containers containing certain beverages are part of the CRV program. Most containers made from glass, plastic, aluminum, and bimetal (consisting of one or more metals) are included. Containers for wine, spirits, milk, fruit juices over 46 ounces, vegetable juice over 16 ounces, and soy drinks have historically been excluded from the program. Container types that are cartons, pouches, and any container that holds 64 ounces or more have also historically been exempted. SB 1013 (Atkins), Chapter 610, Statutes of 2022, amended the program to include wine and distilled spirits, including those contained in boxes, bladders, pouches, or similar containers, beginning January 1, 2024. SB 353 (Dodd), Chapter 868, Statutes of 2023, further expands the program to include large juice containers beginning January 1, 2026.
3. Ways to redeem containers. Consumers have four potential options to redeem their empty beverage containers:

• Return the container to a “convenience zone” recycling center located within ½-mile radius of a supermarket. These are generally small centers that only accept beverage containers and receive handling fees from the Beverage Container Recycling Fund (BCRF). During fiscal year (FY) 2019-20, convenience zone recyclers redeemed about 30% of beverage containers.
  
• Return to a dealer that accepts them. In convenience zones without a convenience zone recycler, beverage dealers, primarily supermarkets, are required to either accept containers for redemption or pay CalRecycle an “in lieu” fee of $100 per day. Few stores accept beverage containers for redemption.
• Return the container to an “old line” recycling center, which refers to a recycler that does not receive handling fees and usually accepts large quantities of materials, frequently by truckload from municipal or commercial waste collection services. Traditional recyclers collect a little more than half of all CRV containers (58%).
  
• Consumers can also forfeit their CRV and “donate” their containers to residential curbside recycling collection. In the 2019-20 FY, curbside programs collected about 12% of CRV containers. Curbside programs keep the CRV on these containers.
  

1. Funding. Recent legislation, SB 1013 (Atkins), Chapter 610, Statutes of 2022, and SB 353 (Dodd), Chapter 868, Statutes of 2023, increased revenues in the BCRF by adding new container types to the Bottle Bill triggering an increase in unredeemed CRV funds. This increase is likely to be temporary and dissipate as consumers increase redemptions of the newer container types. In order to incentivize recycling increased glass containers from the addition of wine and distilled spirits, SB 1013 authorized up to $15 million annually for quality incentive payments for color-sorted glass beverage containers that are substantially free of contamination and that are used for the manufacturing of glass beverage containers in the state and $60 million annually for glass market development payments until January 1, 2028.

The glass quality incentive payments are under-subscribed. Of the $15 million allocated for glass quality incentive payments, CalRecycle expended just under $8.4 million in 2024 and $5.7 million in 2023. According to the most recent report on the status of the BCRF, which was released last October and covers January through June 2024, the fund is operating at a modest surplus. However, as recycling rates for containers that were recently added, such as wine bottles, rise, the fund status may change. Prior Bottle Bill expansions have tended to result in increased revenues initially, and increased expenditures for CRV deposits further out as recycling rates increase.

The Bottle Bill also establishes glass processing incentive grants for expanding glass cullet processing in the state, as specified; $4 million is available annually for this grant program. Another $4 million is available annually for grants to increase the recycling of empty glass beverage containers from restaurants and on-site retail establishments. An additional $1 million is available annually for grants to fund transportation costs for glass beverage containers.

1. Glass disposal and recycling. CalRecycle’s most recent comprehensive waste characterization study was conducted in 2021 and found that glass makes up approximately 2.3% of California’s waste stream. According to What’s in California’s Landfills: Measuring Single-Use Packaging and Plastic Food Service Ware Disposal (2025), approximately 154,000 tons of glass bottles and jars are disposed in California’s landfills, making up 0.39% of California’s waste stream.

In recent years, California has moved toward funding circular recycling to support the development of a circular economy. For example, SB 1013 limited the glass market development payments to bottle-to-bottle recycling in 2022. This bill would provide funding for “downcycling,” or recycling materials into products that won’t continue to be recycled in the future. This bill seeks to provide funding for other forms of in-state glass recycling, including the manufacture of fiberglass insulation, using the unexpended funds available for glass quality incentive payments.

1. Author’s statement:

California has the ambitious goal of achieving an 80% recycling rate for beverage containers sold in the state, and established Quality Incentive Payments (QIP) to help reach this goal. By paying entities that clean and sort recycled glass, the state helps cover the costly processing of recycled glass suitable for manufacturing new products. In 2022, SB 1013 (Atkins) increased the amount allocated for QIP from $10 million to $15 million annually, while at the same time restricting eligibility to only recycled glass used for beverage containers. This change has led to the unintended consequences of lower recycling rates, decreased support to glass processors, and rising costs in producing the fiberglass insulation necessary weatherizing new homes and bringing down heating and air conditioning costs, all while millions of dollars authorized for the QIP go unspent every year.

AB 2481 fixes this problem by authorizing CalRecycle to make QIP payments for glass used for products besides beverage containers, but only using leftover funds after all QIP payments for glass used in beverage containers has been made. This simple, targeted solution maintains priority for the use of recycled glass in glass beverage containers without putting other significant end users of recycled glass in the state at an insurmountable disadvantage. Through this small change, AB 2481 ensures the efficient use of state funds to promote glass recycling and lowers the cost of producing fiberglass insulation for building critically needed new homes and bringing down electric bills in existing houses.

1. Prior legislation:

AB 899 (Ransom), Chapter 627, Statutes of 2025, raised the cap on glass market development payments from $50 to $150 per ton and authorized CalRecycle to expend up to $20 million annually for the payments through 2030. This bill also expanded the focus of these payments from glass wine bottles to all glass beverage containers and authorized CalRecycle to set different limits.

SB 353 (Dodd), Chapter 868, Statutes of 2023, added large fruit and vegetable juice containers to the Bottle Bill and extended the date by which beverage containers for large fruit and vegetable juice containers are required to comply with statutory postconsumer recycled content requirements until 2026. This bill also established certain extensions on labeling requirements for new containers added to the Bottle Bill. This bill authorized CalRecycle to use either the three month average or 12 month average for scrap material values when adjusting processing payments. Finally, this bill established a per-ton temporary payment to rural recyclers for glass until 2030.

SB 1013 (Atkins), Chapter 610, Statutes of 2022, among other things, added wine and distilled spirits to the Bottle Bill. This bill established various small grant programs to incentivize the recycling of beverage container glass in the state and clarified that glass quality incentive payments may be awarded for glass beverage containers that meet specified criteria. This bill also established a glass market development payment of up to $50 per ton for glass beverage container manufacturers who purchase recycled glass collected within the state for use in the manufacture of new beverage containers and appropriated up to $60 million annually for this program through 2028.

1. Suggested amendment. The committee may wish to amend the bill to make technical and clarifying changes to conform to the structure of the code section being amended.

REGISTERED SUPPORT / OPPOSITION:

Support

Californians Against Waste

Knauf Insulation

North American Insulation Manufacturers Association

Saint-Gobain North America

Opposition

None on file

Analysis Prepared by: Elizabeth MacMillan / NAT. RES. /