1. CONSIDERATION OF THE RIGID PLASTIC PACKAGING CONTAINER (RPPC) ALL- CONTAINER AND POLYETHYLENE TEREPHTHALATE (PET) RECYCLING RATES, TO BE USED FOR COMPLIANCE YEAR 2004

2. RPPC’S RECYCLED DOC’s current data indicate PET beverage container returns increased in 2003 compared to 2002. However, it was outpaced by increasing in sales. Therefore RR declined. 100 X  RR NAPCOR cited continuing poor econ. conditions in the recycling of PET containers. 1999 CA Pop/1999 U.S. Pop 2003 CA Pop/2003 U.S. Pop () 2003 Nat’l Sales 1999 Nat’l Sales () Staff expects the 2003 WC Study results of RPPCs disposed to be higher than those in the 1999 study Remained flat or went slightly down in 2003 compared to 2002. However, the 2003 sales of PP & PVC, show a continuous increase compared to 2002 sales. 2003 (35/289) 2002 (34/283) Recycled + Disposed ( ) 03

4. Source: Plastics Recycling Update

5. ESTIMATED PET RECYCLING: RATES 2002 & 2003 CRV 200320022001 RPPCCRVRPPCCRVRPPC 0.360.320.36 32% (estimated) 0.35 31.0%* (estimated) *Resulted from the following proportion: 0.36/0.32 = 0.35/X, where “X”*(100) is the estimated RR.

7. CONCLUSIONS A QUALITATIVE ANALYSIS (BASED ON BEST AVAILABLE INFORMATION) OF EACH OF THE FACTORS INFLUENCING RPPCs RECYCLING RATE, STRONGLY SUGGESTS AN ALL-CONTAINER RECYCLING RATE BELOW 25 PERCENT FOR 2003. THE INTERIM APPROACH FOR ESTIMATING RPPC RECYCLING RATES SUPPORTS THE RESULTS OF THE QUALITATIVE ANALYSIS

8. STAFF RECOMMENDATION OPTION 1: ADOPT AN ALL-CONTAINER RATE OF 23.9 PERCENT, AND A PET RECYCLING RATE OF 31.0 PERCENT TO BE USED FOR THE 2004 COMPLIANCE YEAR AND DIRECT STAFF TO CONDUCT A CERTIFICATION OF 75 PRODUCT MANUFACTURERS ADOPT RESOLUTION NUMBER 2004-185