Dive Brief:
- A state audit of California’s Beverage Container Recycle Program, Cal Recycle, concludes that the program has been losing money.
- The report finds that costs exceeded revenue by more than $100 million in three of the past four years.
- The program was established in 1986 as a way to encourage consumers to recycle beverage containers by offering payment for each bottle returned at a designated redemption center.
Dive Insight:
Elaine Howle, the CA State Auditor, said, “immediate action is needed to ensure the continued viability of the program.” The report suggested the State Legislature change the laws to increase revenue while lowering costs in order to ensure the financial stability of the program. Another step recommended in the audit is reducing fraud and altering the method by which the state collects the revenue.
New daily limits for the program were announced in December 2013 that were intended to reduce fraudulent pay-outs, which are estimated to reach $200 million annually.
