How to Open a California Recycling Center
California recycling centers, also known as redemption centers or buyback centers, are facilities that accept empty beverage containers and pay a CRV, or California refund value, for them, explains CalRecycle, the state entity that oversees recycling centers. In turn, the recycling center sells the empty containers to a processor. The processor reimburses the recycling center operator for the CRV and also pays a fair-market scrap price for the recycled materials. Certified centers can also qualify for compensation from the state. However, California law now requires that almost everything be recycled, even cell phones, so opportunities abound in specialized sectors of the market, too.
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Instructions
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Understand the market. There are several different categories of recycling programs that present potential business opportunities, notes CalRecycle. In addition to official recycling centers, the state also certifies operators of drop-off or collection programs, community service programs, and processing facilities. Certification only regulates how you buy and sell CRV-labeled beverage containers purchased in California. The state does not regulate other types of recyclable materials such as paper, cardboard, tires, autos and scrap metal. However, many of those materials could be part of a successful recycling operation. For complete information on state guidelines, consult "Starting a Recycling Business" from CalRecycle.
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Locate processors. To make money as a recycling center, you will sell materials to a certified processor that pays not only the CRV, but also a scrap value for large batches of recycled materials. A consistent, stable market for what you're recycling and selling will be a key factor in your success of failure.
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Collect handling fees from the state. Recycling centers located at supermarket sites, rural recycling facilities, and some nonprofit organizations are eligible to receive a monthly handling fee. Handling fees are incentives to encourage convenient redemption of empty beverage containers and to reward operational efficiency for recycling centers. The handling fees encourage increased redemption by paying a set amount for each eligible beverage container redeemed by the recycling center from consumers, up to a maximum of $2,300 per month, provided the recycling center achieves a minimum volume of 60,000 beverage containers. To be eligible, a center must be a supermarket site, a nonprofit "convenience zone" recycling center, or a rural region recycling center. To qualify as a rural region facility, the center must be located in a rural region as defined by the Farmer's Home Administration.
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Fulfill all state and local requirements. Get a business license. In addition, investigate whether your county or city requires a conditional use permit. Make sure you meet all local land-use requirements, local construction ordinances and zoning regulations. File a fictitious business name statement or articles of incorporation. Get a federal employer tax identification number.
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Get certified. As a certified recycling center, you'll be eligible to pay CRV for all redeemed beverage containers. The CRV creates an incentive for consumers and others to return their beverage containers to your facility. However, bear in mind that the CRV does not contribute to your profit. For information on recycling materials other than CRV-labeled beverage containers, contact CalRecycle at 916-341-6000.
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Certify your scales, too. The state requires annual certifications and fees. Your county department of weights and measures monitors the scales that are used to weigh the recyclable materials, explains CalRecycle. It certifies that your scale meets its requirements by periodically inspecting them.
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Follow inspection guidelines for the materials you accept for recycling. Those guidelines include provisions such as requirements that the beverage container is made of glass, plastic or bimetal and that all contaminating items, such as sand, rocks or cigarettes, have been removed. The CRV label or message must be on the container.
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Meet signage requirements. State law requires four kinds of signage. One demonstrates your certification by CalRecycle. Another sign shows you are currently open for business. A third shows your hours of operation. The fourth tells customers the prices your center pays for each type of material, such as glass or aluminum. The price sign must be at least two feet by two feet and be located where weighing occurs.
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