Effective January 1, 2024, CA Wineries and Distilleries Will Have Reporting and Payment Obligations to CalRecycle Under the Bottle Bill
POSTED BY Bahaneh Hobel and Theresa Barton Cray
With the passage of Senate Bill No. 1013, beginning on January 1, 2024, wine and spirits will be included in California’s state container deposit system established by the California Beverage Container Recycling and Litter Reduction Act (known as the “Bottle Bill”). As such, wineries and distilleries will now be required to comply with the Bottle Bill’s CA Redemption Value (CRV) payment and reporting obligations beginning January 1, 2024, and CRV labeling requirements for all wine and spirits sold after July 1, 2025. Beer and certain other non-alcoholic beverages were already previously covered by the Bottle Bill.
Importantly, because all wines and spirits sold in California after July 1, 2025 must be labeled with some type of approved CRV statement, producers should start including this information on their bottles and/or labels as soon as possible for all products to be offered for sale on or after January 1, 2025.
Below we have included a brief summary of the rules applicable to wines and spirits under Bottle Bill, the new registration and payment obligations, and labeling changes required to comply with the new laws.
TYPES OF BEVERAGES:
The Bottle Bill applies to beer, malt beverages, wine, spirits, wine and spirit coolers (regardless of ABV), and certain other non-alcoholic beverages intended for sale in California. Section 14504 and 14560.
CA REDEMPTION VALUES (CRV): Section 14560
For bottles smaller than 750 mL (less than 24 fluid ounces), the CRV is 5 cents/bottle.
For bottles 750 mL or larger (24 fluid ounces or more), the CRV is 10 cents/bottle.
For boxes, bladders, pouches, or similar containers (regardless of size), the CRV is 25 cents/container.
REGISTRATION & PAYMENT OBLIGATIONS BEGINNING JANUARY 1, 2024:
All wineries and distilleries should register with CalRecycle as soon as possible to prepare for payment and reporting requirements beginning 1/1/2024 (information regarding registration can be found here).
All producers and importers of wine and distilled spirits should register as a Beverage Manufacturer. Brand owners that contract with producers for the manufacture of wine or distilled spirits are not considered Beverage Manufacturers.
Any wineries and distilleries that sell wine or spirits in California Direct to Consumer or Direct to a Retailer (for wine) should also register as a Distributor.
2. Report and pay the applicable CRV to CalReycle.
The winery or distillery may pass on this cost to consumers (as the consumers can return the bottles to a recycling center for the redemption). Section 14560
The processing fee is variable depending on container material (size does not matter) and changes each calendar year, but is currently 0.452 cents/glass bottle. The Wine Institute has noted that the hope is for the processing fee to be reduced to zero.
3. Report and pay the applicable Processing Fee.
The processing fee is paid on all containers a winery or distillery sells, whether to wholesalers, retailers, or consumers. Section 14575(g)
The processing fee is variable, but is currently 0.426 cents/glass bottle or for new containers, 0.574 cents/container. The Wine Institute has noted that the hope is for the processing fee to be reduced to zero.
LABELING OBLIGATIONS FOR ALL WINES AND SPIRITS SOLD AFTER JULY 1, 2025:
All wines and distilled spirits containers sold in California after July 1, 2025, except those containers filled and labeled before January 1, 2024, must be labeled with: “CA Redemption Value,” “California Redemption Value,” “CA Cash Refund,” “California Cash Refund,” or “CA CRV”.
The CRV statement must be clearly, prominently, and indelibly marked and can be added on the actual label or by sticker (not on aluminum cans), stamp, embossment, or other similar method. Labeling size and location requirements are set forth below: CCR 2200(b).
For glass and plastic, the CRV statement must be on the container body label or secondary label with:
a text height of 3/16”, or
a minimum text height of 1/8” and in a contrasting color to the background and nearby text.
For aluminum, the CRV statement must be on the top lid:
for tops greater than 2 inches in diameter, the CRV statement must be 3/16” in height; and
for tops 2 inches or less in diameter, the CRV statement must be 1/8” in height.
Requirements for box, bladder, and pouch containers to be determined.
3. Currently, there is no exemption for wines or spirits labeled before July 1, 2025. While the Wine Institute is working on legislation to create an exemption for wines labeled before January 1, 2024, wineries and distilleries should start including the required labeling on all applicable containers as soon as possible.
4. Senate Bill No. 1013 also revised Section 14561(d) of the Bottle Bill to allow for CRV labeling by the inclusion of a scan code or quick response (QR) code on the container. This new language is currently under review by CalRecycle.
EXCEPTION FOR TASTING ROOM SALES:
If any wines or spirits are sold for on-site consumption in a tasting room, then those products are exempt from the Bottle Bill’s requirements. Any products sold for offsite consumption are subject to the requirements of the Bottle Bill. Section 14510.
Post revised October 18, 2023 to reflect labeling exemption established under California Senate Bill 353.
For more information regarding Bottle Bill compliance, please contact Bahaneh Hobel at bhobel@dpf-law.com or Theresa Barton Cray at tcray@dpf-law.com.
