California Code of Regulations
Title 14 - Natural Resources
Division 2 - Department of Conservation
Chapter 5 - Division of Recycling
Subchapter 11.5 - Quality Incentive Payments
Article 1 - General Requirements
Section 2850 - Quality Incentive Payments

Universal Citation: 14 CA Code of Regs 2850

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) The Division may pay a quality incentive payment to any registered curbside program or entity certified pursuant to the Act and subject to the availability of funds, for empty glass, plastic and aluminum beverage containers collected by either a registered curbside program or a dropoff or collection program, consistent with the quality specifications adopted by the Division below.

(1) A Quality Incentive Payment shall be made for empty glass beverage containers, that meet the requirements in Section 14549.1(c)(1)(A) and (B) of the Act.

(2) A quality incentive payment shall be made for empty plastic beverage containers sorted by resin type (PETE #1, HDPE #2, V #3, LDPE #4, PP #5, PS #6, and OTHER #7) that meet the requirements of Section 14549.1(c)(2)(A) of the Act. The resin sorted and cleaned empty plastic beverage containers must meet the "Commercial Guideline Baled Recycled Plastic Standard," as specified in the most current "Scrap Specifications Circular" published by the Institute of Scrap Recycling Industries (ISRI).

(3) A quality incentive payment shall be made for empty aluminum beverage containers that meet the requirements of Section 14549.1(c)(3)(A) and (B) of the Act. The sorted and cleaned empty aluminum beverage containers must follow the guidelines for post-consumer aluminum can scrap as specified in the most current "Scrap Specifications Circular" published by the Institute of Scrap Recycling Industries (ISRI).

(b) For empty beverage containers that meet the quality specifications, pursuant to subsection 2850(a) (1), (2), and (3), prior to completion of the Shipping Report (DR-6 (06/07)), the registered curbside program or certified entity shall be identified on the Shipping Report (DR-6 (06/07)), as specified in Sections 2425(e) or 2530(f), and the Shipping Report (DR-6 (06/07) shall constitute the claim for the quality incentive payment.

(c) For empty beverage containers that meet the quality specifications, pursuant to subsection 2850 (a) (1), (2), and (3), subsequent to the completion of the Shipping Report (DR-6 (06/07)), the processor that claims a quality incentive payment for empty beverage containers shall submit a Quality Incentive Payment Claim Form (DOR 56 (06/07)) to the Division for each calendar month in which the quality incentive payment is being claimed. To be eligible to submit a Quality Incentive Payment Claim Form (DOR 56 (06/07)), the processor that sorts and/or cleans the empty beverage container material shall submit a request and receive approval from the Division for authorization to submit claims.

(1) The request for authorization must include the methodology developed by the processor to attribute the empty beverage containers to the types of programs from which they were received to ensure that empty beverage containers collected by sources other than curbside programs, or dropoff or collection programs are excluded from the amount claimed for quality incentive payments.

(2) The Division shall notify the applicant in writing within fifteen (15) working days of receipt of the application, or receipt of additional information if the application was initially incomplete, that it is either:
(A) Complete and accepted for further review; or

(B) Incomplete and the reasons for the deficiency.

(3) The Division shall review and consider each request for authorization to submit claims for quality incentive payments for post shipping report empty beverage containers and issue a written approval or denial. Upon determining that an application is complete, the Division shall notify the applicant in writing within forty-five (45) calendar days that such application is either:
(A) Approved; or

(B) Denied and the reasons for denial.

Upon approval, the authorization to submit claims for quality incentive payments for post shipping report empty beverage containers shall be valid for a period of three (3) years from the date of approval, or until such time as the authorization is surrendered by the processor, or suspended or revoked by the Division.

(4) Reasons for denying a request for authorization, or for suspending or revoking an approved authorization may include, but shall not be limited to any of the following:
(A) The processor does not ensure that empty beverage containers received from entities other than curbside programs or dropoff or collection programs are excluded from the claim;

(B) The processor does not account for each incoming load of empty beverage containers;

(C) The claim for quality incentive payment is not based on the sorted and/or cleaned weight for the material type; and

(D) The processor fails to maintain inventory records that show sorted, shipped and received materials; and,

(E) The processor has been found to be in violation of any provision of the Act, or any regulations adopted pursuant to the Act.

(5) A processor may request reconsideration of a denial, suspension, or revocation of an authorization by submitting a written request for reconsideration to the Division within thirty (30) calendar days of being notified of a denial, revocation, or suspension of an authorization to submit claims for quality incentive payments. All written requests shall include:
(A) A copy of the notice denying the authorization to submit claims for quality incentive payments;

(B) A detailed explanation of the grounds for reconsideration; and

(C) Any other documentation that supports the request.

(6) A written decision on the request for reconsideration shall be sent to the processor within twenty (20) calendar days of the receipt of the request.

(d) To be eligible for payment, the Quality Incentive Payment Claim Form (DOR 56 (06/07)) must meet the following requirements:

(1) Postmarked no later than the first day of the second month following the reporting month. Claims postmarked after this date or incomplete claims may be denied payment. A separate claim shall be completed by each processor; and

(2) Each Quality Incentive Payment Claim Form (DOR 56 (06/07)), must include all of the following information:
(A) The month for which the claim is submitted;

(B) The material type;

(C) The facility name, mailing address, and certification number of the processor submitting a claim for quality incentive payments.

(D) The name and phone number of a contact person;

(E) The redemption weight to tenths of tons of empty beverage container materials claimed;

(F) The signature and title of an authorized representative; and

(G) The date the report was signed by the authorized representative under penalty of perjury.

(e) The quality incentive payment may be denied or reduced if the Division has prevailed against the registered curbside program or certified entity in a civil or administrative action and money is owed to the Division as a result of the action.

(f) For the purpose of Section 14549.1 of the Act and these regulations, the following definitions apply:

(1) "Color sorted glass" means glass that has been sorted into flint, amber, and green fractions, and would be acceptable to a beneficiating processor.

(2) "Substantially free of contamination" means glass that has been substantially cleaned of non-glass contaminants.

1. Renumbering and amendment of former subchapter 8, article 3 (section 2690) to subchapter 11.5, article 1 (section 2850) filed 3-25-2002 as an emergency; operative 3-25-2002 (Register 2002, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-23-2002 or emergency language will be repealed by operation of law on the following day. For prior history of sections 2830-2865, see Register 91, No. 46.
2. Renumbering and amendment of former subchapter 8, article 3 (section 2690) to subchapter 11.5, article 1 (section 2850) refiled 7-17-2002 as an emergency, including amendment of subsection (b); operative 7-23-2002 (Register 2002, No. 29). A Certificate of Compliance must be transmitted to OAL by 11-20-2002 or emergency language will be repealed by operation of law on the following day. For prior history of sections 2830-2865, see Register 91, No. 46.
3. Editorial correction implementing subsection (b) amendments contained in 7-17-2002 order and correcting HISTORY 2 (Register 2002, No. 47).
4. Renumbering and amendment of former subchapter 8, article 3 (section 2690) to subchapter 11.5, article 1 (section 2850) refiled 11-18-2002 as an emergency; operative 11-20-2002 (Register 2002, No. 47). A Certificate of Compliance must be transmitted to OAL by 3-20-2003 or emergency language will be repealed by operation of law on the following day. For prior history of sections 2830-2865, see Register 91, No. 46.
5. Certificate of Compliance as to 11-18-2002 order transmitted to OAL 2-20-2003 and filed 4-1-2003 (Register 2003, No. 14).
6. Amendment of subsection (b) filed 2-23-2006; operative 3-25-2006 (Register 2006, No. 8).
7. Amendment of subchapter heading and repealer and new section, including new shipping report and quality incentive payment claim forms, filed 6-21-2007 as an emergency; operative 6-21-2007. This regulatory action meets the emergency standard and is mandated to remain in effect until revised by the Director of the Department of Conservation pursuant to Public Resources Code section 14536(b)(2) (Register 2007, No. 25).

Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14549.1 and 14552, Public Resources Code.

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