Does EBT Food Stamps Cover CRV? Using Your EBT Card for Drinks in California

Imagine this scenario: a shopper is at the grocery store, their cart filled with items for the week. They have fruits, vegetables, milk, bread, and a few beverages like bottled water and juice for the kids. As a participant in California’s CalFresh program, they rely on their Electronic Benefits Transfer (EBT) card to help pay for these essential groceries. At the checkout, the cashier scans each item. When the drinks are scanned, a separate charge appears on the screen labeled “CRV.” For many, this moment brings a flash of uncertainty. Is this fee covered by food benefits, or is it an extra cost that needs to be paid with cash?

Navigating the rules of public assistance programs can sometimes feel complicated. CalFresh, which is the state’s version of the federal Supplemental Nutrition Assistance Program (SNAP), has specific guidelines about what can and cannot be purchased. Understanding these rules helps families make the most of their monthly food budget. This report will provide a clear and detailed answer to the question of whether CalFresh EBT benefits cover the California Redemption Value (CRV) fee, explaining not just the rule, but the reasons behind it, so shoppers can feel confident at the checkout counter.

The Simple Answer: Yes, CalFresh EBT Covers the CRV Fee

To answer the question directly: yes, in the state of California, you can use your CalFresh EBT food benefits to pay for the California Redemption Value (CRV) fee when you purchase eligible beverages.

This is not a matter of opinion or individual store policy; it is the official rule set by the state agency that manages the CalFresh program. The California Department of Social Services (CDSS) provides a clear answer on its “Frequently Asked Questions” page.

In response to the question, “Can bottle deposits (CRV) be paid with EBT food benefits?” the department states:

“EBT food benefits can cover the entire cost of items such as eligible drinks in returnable bottles, where the price includes a specific bottle deposit. This is true even if the deposit is not included in the shelf price. CRV is payable with EBT food benefits”.

This policy is further confirmed by another state resource, the California EBT Project, which provides guidance to businesses that accept EBT. Its merchant FAQ page reiterates the rule, stating, “In California, EBT food benefits can be used to pay a bottle or can deposit, but only up to the state-approved CRV amount”.

This clear guidance from the state agencies responsible for implementing the program is the most important piece of information for a California resident. While the federal government sets the broad rules for SNAP, and California’s recycling agency (CalRecycle) manages the CRV program, it is the CDSS that interprets how these rules work together within the state. A person looking for this information on a federal website might not find a specific answer for California, and a person looking on the CalRecycle website might not find any information about EBT payments at all. The most direct and reliable answer comes from the state agency that manages CalFresh benefits, providing a definitive “yes” for California shoppers.

What is CalFresh? A Guide to Your EBT Food Benefits

To understand why the CRV fee is covered, it is helpful to first understand the basics of the CalFresh program and what it is designed to do. CalFresh is the name for the federal Supplemental Nutrition Assistance Program (SNAP) in California. Many people may remember this program by its former name, the Food Stamp Program. The primary goal of SNAP and CalFresh is to act as the nation’s most important anti-hunger program by providing low-income individuals and families with the resources to purchase nutritious food.

Participants in the program receive their monthly benefits on an Electronic Benefits Transfer (EBT) card, which is also known as the Golden State Advantage card in California. This card works just like a debit card and can be used to buy eligible food items at most grocery stores, convenience stores, and many farmers markets.

The U.S. Department of Agriculture (USDA) sets the rules for what can and cannot be purchased with these benefits. These rules are consistent across the country. The focus is on providing food for the household to prepare and eat at home. As a general rule, SNAP benefits cannot be used to pay for non-food items or certain types of fees. The table below provides a simple guide to what is typically eligible and ineligible for purchase with CalFresh EBT food benefits.

CalFresh Shopping List: Eligible vs. Ineligible Items
Eligible Items (You CAN Buy)
Fruits and vegetables (fresh, frozen, or canned)
Breads and cereals
Meat, poultry, and fish
Dairy products like milk, yogurt, and cheese
Snack foods and non-alcoholic beverages like soda and juice
Seeds and plants that produce food for the household to eat
Ineligible Items (You CANNOT Buy)
Beer, wine, liquor, and tobacco products
Vitamins, medicines, and supplements (look for a “Supplement Facts” label)
Hot foods or foods prepared to be eaten immediately in the store
Non-food items like pet food, soap, paper products, and household supplies
Fees for services like grocery delivery or for grocery bags

This last point about fees is particularly important. Generally, SNAP benefits are meant for food products, not for extra charges a retailer might add. This is what makes the CRV fee a special case, and to understand it, one must first understand what CRV is.

What is CRV? Understanding California’s Recycling Fee

The California Redemption Value, or CRV, is a fee established by the California Beverage Container Recycling and Litter Reduction Act of 1986. It is a statewide regulatory program managed by the California Department of Resources Recycling and Recovery (CalRecycle). The main purpose of the CRV program is to encourage consumers to recycle beverage containers and to reduce litter across the state. Since its creation, the program has helped Californians recycle billions of bottles and cans.

The system works in a simple cycle. When a person buys an eligible beverage in California, the price includes the CRV fee. This fee is not a sales tax, but a refundable deposit. After consuming the beverage, the person can return the empty container to a certified recycling center to get the CRV amount back in cash. This financial incentive is what motivates recycling.

The CRV fee varies depending on the size and type of the container. The amounts are set by state law and apply to a wide range of beverages.

California Redemption Value (CRV) by Container
Container Type & Size
Most cans & bottles (less than 24 ounces)
Most cans & bottles (24 ounces or larger)
Wine or spirits in a box, bladder, or pouch (effective 2024)

The CRV program covers most ready-to-drink beverages, including sodas, carbonated and non-carbonated water, fruit drinks, sports drinks, and coffee and tea beverages. As of January 1, 2024, the program expanded to include wine and distilled spirits in bottles, cans, boxes, and pouches, as well as larger containers of fruit and vegetable juice. However, some items are not part of the CRV program, such as milk, infant formula, and medical foods. Only containers for beverages that are part of the program are eligible for a CRV refund.

The “Why”: Connecting Federal Rules to California’s Law

The reason CalFresh EBT can be used for CRV lies in the specific interaction between federal SNAP rules and California state law. Understanding this connection explains why CRV is treated differently from other fees.

The process begins with the default federal rule for the SNAP program. The USDA, which oversees SNAP nationally, states that benefits generally cannot be used to pay for miscellaneous fees. This includes bottle deposits that are voluntarily added by a product’s manufacturer or a retailer. If a company decided on its own to add a 10-cent deposit to its bottles to encourage returns, SNAP benefits could not be used to pay that charge.

However, there is a critical exception to this rule. This exception was formalized in the federal Agricultural Act of 2014, also known as the Farm Bill. This federal law specifies that SNAP benefits can be used to pay for bottle and can deposits if that deposit is required by state law. The regulations clarify that SNAP benefits can pay for a deposit fee only when “the fee reimbursement [is] established under State law”. This distinction is crucial: a deposit created by a private company is an ineligible fee, but a deposit mandated by a state government is an allowable expense.

This is where California’s CRV program fits in. The CRV is not a voluntary fee created by beverage companies; it is a regulatory fee mandated by the state government through the California Beverage Container Recycling and Litter Reduction Act. Because the CRV is a state-required fee, it falls squarely under the exception provided by federal law. This is the legal foundation that allows the California Department of Social Services to permit the use of CalFresh benefits for paying the CRV.

California is not alone in this. It is one of ten states in the U.S. with a “bottle bill,” or a state-level container deposit law. Other states with similar laws include Oregon, Michigan, and New York. The federal exception was created specifically to accommodate these state-level environmental programs, ensuring that SNAP recipients in these states are not unfairly prevented from buying eligible beverages due to a cash-only requirement for the state-mandated deposit.

This interaction between federal and state programs creates a unique situation. A core principle of the SNAP program is that benefits are intended for food and cannot be exchanged for cash. In fact, it is illegal for a retailer to give a customer cash back from an EBT transaction. However, the CRV process establishes a fully legal pathway for food benefits to be converted into cash. A CalFresh participant uses their EBT card to pay for a bottle of juice and the associated 5-cent CRV fee. Later, they can take that empty bottle to a recycling center and receive a 5-cent refund in cash. This outcome arises from the need to harmonize two different government programs with separate goals: the SNAP program’s goal of providing food assistance and the CRV program’s goal of promoting recycling.

Navigating the Rules: Common Questions and Scenarios

Knowing the rule is the first step. The next is knowing how to handle common situations that may arise at the store.

What if a store asks me to pay cash for the CRV?

Even though the rules are clear, a shopper may occasionally encounter a store where the cashier asks for a separate cash payment for the CRV fee. This can happen for a few reasons, such as a cashier who is new or not fully trained on the rules, or a point-of-sale (POS) system that is not programmed correctly.

If this happens, a shopper has a few options. The first step is to politely inform the cashier that in California, CRV is covered by CalFresh EBT benefits. If the cashier is unsure, one can ask to speak with a manager, who may be more familiar with the store’s EBT policies. In most cases, this resolves the issue. If the store still insists on a cash payment, the shopper can choose to shop elsewhere at a store that processes the transaction correctly. While frustrating, it is important to remember that according to state and federal policy, the store is in error, not the customer.

Is the CRV fee taxable?

This is another common point of confusion. According to California law, the CRV fee itself is considered part of the total sale price and is subject to sales tax if the beverage being purchased is taxable.

However, there is another rule that takes precedence here. Federal SNAP regulations prohibit states and retailers from charging sales tax on any items purchased with SNAP EBT benefits. This means that when a shopper pays for a CRV-eligible beverage and the associated CRV fee entirely with their CalFresh EBT card, no sales tax should be charged on either the drink or the CRV. The entire transaction is tax-exempt. If a purchase is split between EBT and cash, sales tax can only be charged on the portion paid for with cash.

When I recycle, do I get the refund in cash or back on my EBT card?

When you return your empty CRV containers to a certified recycling center, the refund you receive is paid in cash. Recycling centers are separate businesses that are not connected to the EBT system. They are part of the state’s recycling infrastructure, not the food benefits network. Therefore, they cannot credit refunds back to an EBT card. The refund for the deposit that was originally paid for with EBT benefits is returned to the consumer as cash, which can then be used without restriction.

Conclusion: Shop with Confidence

Understanding the specific rules of programs like CalFresh and CRV empowers individuals and families to manage their budgets effectively and access the benefits to which they are entitled. The relationship between CalFresh EBT and the CRV fee is a prime example of how federal and state policies intersect to create specific rules for California residents.

To summarize the key points of this report:

  • Yes, you can use your CalFresh EBT card to pay for the California Redemption Value (CRV) fee on eligible beverages. This is confirmed by the California Department of Social Services, the agency that runs the CalFresh program.
  • This is allowed because CRV is a state-mandated recycling fee, which qualifies for a special exception under federal SNAP rules that were designed to accommodate state bottle bills.
  • When paying for a CRV item entirely with your CalFresh EBT card, you should not be charged sales tax on the beverage or the CRV fee.
  • When you return your empty containers to a recycling center, your CRV refund will be given to you in cash, not credited back to your EBT card.

Armed with this knowledge, CalFresh participants can navigate the checkout line with confidence, knowing exactly how their benefits apply to the purchase of beverages in California.