Dive Brief:
- The California Legislature has approved a bill (AB 199) that would provide a sales-and-use tax exemption on recycling and composting equipment, and on equipment that uses recycled content in the manufacturing of new products. The bill, authored by Assembly Member Susan Eggman, now goes to Gov. Jerry Brown.
- The Californians Against Waste Foundation, which sponsored the bill, said it would generate investments in jobs. Nick Lapis, the group's legislative coordinator, said most of what's sent to landfills can be recycled or composted. "By collecting, processing and manufacturing these materials into new products in the state we can support a sustainable and prosperous California economy," he said.
- California has set a 75% recycling goal by 2020. The California Department of Resources Recycling and Recovery (CalRecycle) estimates that meeting the goal would generate 110,000 jobs, on top of the 125,000 that already work in the recycling industry.
Dive Insight:
California continues to lead the U.S. in its dedication to recycling. If signed by the governor, AB 199 would slash millions in sales tax for recycling companies and reclaimers.
CalRecycle notes that the state exports 20 million tons of recyclables annually, worth nearly $8 billion, and Californians Against Waste maintains that keeping more of that in state "would allow Californians to share in both the environmental and economic benefits of their recycling efforts." Eggman's bill, which failed in another form previously, seems likely to help with that.
States and municipalities often give incentives to encourage businesses and job growth. For example, the Montgomery, NY Industrial Development Agency this summer agreed to a plan to generate up to $270 million in bonds for a planned local biomass plant.
