CALIFORNIANS AGAINST WASTE v. Department of Conservation

In 1986, the Legislature adopted the California Beverage Container Recycling and Litter Reduction Act (Pub. Resources Code, § 14500 et seq.) (the Act) to encourage large-scale recycling of used beverage containers through a program of financial incentives. (§ 14501.) Monies collected by the Department of Conservation (Department) are deposited in the California Beverage Container Recycling Fund (the Fund). (§§ 14512.7, 14580, subd. (a).) The Department pays processors, drop-off or collection programs, curbside programs, and recycling centers a “processing payment” when the scrap value of the particular type of beverage container is insufficient to cover the cost of recycling. (§§ 14518.5, 14575, subds. (a) & (b).) Processing payments are funded in part by “processing fees” paid to the Department by beverage manufacturers. (§§ 14518.4, 14575, subds. (b), (e), (f) & (h), 14581, subd. (a)(6)(A).) “This fee is designed to make the beverage container industry responsible for internalizing the cost of recycling the containers they manufacture.” (Cal. Dept, of Conservation, The Annual Processing Fee Rep. (1991) p. 2.)

Following 1999 amendments to section 14575 (Stats. 1999, ch.…