July 20, 2009
Recycling centers may get trashed
State grabs cash and slashes payments to recyclers
APPLE VALLEY • The state has slashed compensation to recycling centers by 85 percent — a move that may force many to go out of business and make it more difficult for consumers to collect deposits on bottles and cans.
“An 85 percent cut means that my handling fee I get from the state fund (Beverage Container Recycling Fund) will go from about $10,000 a month to about $1,500 a month,” said Michael Nehorayan, vice president of Green Apple Recycle Center in Jess Ranch. “It makes it virtually impossible to stay in business.”
Nehorayan has two recycling drop off centers and was hoping to open another.
“I anticipated on hiring three or four more people and opening a third site, but I put that on hold because it is such a risk now and I don’t know what is going to happen,” he said.
The handling fees are the lifeblood of recycling centers, helping to pay their operating costs. The fees come from a portion of the California Redemption Value, or CRV fee on many bottles and cans.