BILL ANALYSIS                                                                                                                                                                                                    



                                                               SB 1778
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2005-2006 Regular Session
                                           
           BILL NO:    SB 1778
           AUTHOR:     Alarcon
           AMENDED:    April 4, 2006
           FISCAL:     Yes               HEARING DATE:     April 24, 2006
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    ALTERNATIVE DAILY LANDFILL COVER

            SUMMARY  :    
           
            Existing law  , under the California Integrated Waste Management  
           Act of 1989:

           1) Provides that the use of solid waste for beneficial reuse  
              in the construction and operation of a solid waste  
              landfill, including the use of alternative daily cover  
              (ADC), reduces or eliminates the amount of solid waste  
              disposed, must constitute diversion through recycling, and  
              cannot be considered disposal for purposes of the Act.

           2) Requires the California Integrated Waste Management Board  
              (CIWMB) to adopt regulations by December 31, 1997,  
              establishing conditions for use of ADC.

            This bill  :

           1) Specifies that ADC composed of woody and green material is  
              not considered diversion and must be included in  
              determining the amount of solid waste that is subject to  
              disposal.

           2) Strikes the deadline for adoption of regulations by the  
              CIWMB and clarifies that the CIWMB must adopt or revise  
              regulations by January 1, 2010, establishing conditions for  
              use of ADC.

           3) Requires the CIWMB to adopt a schedule for excluding woody  
              and green material ADC from being considered as meeting the  
              diversion requirements of the Act.









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           4) Requires the CIWMB to adopt regulations establishing a  
              "market development credit adjustment factor" that enables  
              a jurisdiction to adjust its diversion rate by adding  
              diversion points to its diversion rate for the purchase of  
              compost.  The CIWMB must establish a schedule to credit a  
              jurisdiction with a diversion rate adjustment based on the  
              number of tons of compost used by the jurisdiction in a  
              reporting year, and in developing the schedule must  
              consider whether the compost is locally produced.

           5) Includes related legislative intent.

           6) Makes technical and clarifying amendments.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "ADC means cover  
              material other than earthen material placed on the surface  
              of the active face of a municipal solid waste landfill at  
              the end of each operating day to control vectors, fires,  
              odors, blowing litter, and scavenging.  The [CIWMB] has  
              approved ten material types to be used as ADC.  The use of  
              ADC is not recorded as disposal, instead landfills receive  
              recycling 'credit' for using diverted waste materials as  
              ADC.  Currently the [Act] establishes that ADC use is  
              considered diversion through recycling."

           The author notes that the CIWMB found in 2000 that ADC is  
              "being overused at landfills around the state, representing  
              as much as 23% of the total waste being deposited.  Often  
              the driving force behind overuse of ADC is subsidies or  
              diversion credit for recycling.  Some landfills are trying  
              to attract as much wood waste as possible, labeling it as  
              'ADC,' and putting it into the landfill."

           The author indicates that "SB 1778 directs the [CIWMB] to  
              create a timeline to phase-out a landfill's diversion  
              credit for its [ADC] in order to maximize recycling . . .  
              and creates a diversion credit for the use of compost."

            2) Background on ADC and diversion credits  .  The California  










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              Integrated Waste Management Act of 1989 requires each city  
              or county source reduction and recycling element to include  
              an implementation schedule that shows a city or county must  
              divert 25% of solid waste from landfill disposal or  
              transformation by January 1, 1995, and must divert 50% of  
              solid waste on and after 2000.

           In 1996, the Natural Resources Defense Counsel challenged  
              regulations implementing CIWMB's policy allowing diversion  
              credit for ADC and the Sacramento Superior Court held that  
              the regulations were inconsistent with the Act.  AB 1647  
              (Bustamante) Chapter 978, Statutes of 1996, amended the Act  
              to allow ADC diversion credit, require the CIWMB to adopt  
              regulations establishing conditions for use of ADC, and  
              make related changes.

           ADC materials approved by the CIWMB that can be reported as  
              diversion include ash and cement kiln dust, treated auto  
              shredder waste, construction and demolition waste, compost,  
              green material, contaminated sediment, sludge, and shredded  
              tires.  SB 1778 continues to allow ADC diversion credit if  
              the ADC is not comprised of woody and green material.  This  
              bill also requires the CIWMB to adopt a schedule for  
              excluding woody and greenwaste ADC from being considered as  
              meeting diversion requirements of the Act, creates a  
              diversion credit, and contains related amendments.

            3) Guidance for schedule  ?  SB 1778 requires the CIWMB to adopt  
              a schedule for excluding ADC woody and green material from  
              the Act's diversion requirements, but does not set a  
              deadline or provide conditions for a schedule (e.g., longer  
              phase-out for those entities with the highest amount of ADC  
              woody and green materials, phase-out tied to achievable  
              alternative diversion programs).

           SB 411 is similar to SB 1778 (see comment #7 for more  
              information on SB 411).  When the committee heard SB 411  
              (Alarcon) in January, the committee recognized that  
              development of a schedule based on certain conditions  
              should be developed.  Also, since revised regulations must  
              be adopted by January 1, 2010, any changes to the diversion  
              requirements should not commence prior to the regulation  










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              due date.

            4) Setting precedent for diversion credit through  
              double-counting  .  SB 1778 requires the CIWMB to adopt  
              regulations establishing a "market development credit  
              adjustment factor" enabling a jurisdiction to adjust its  
              diversion rate by adding diversion points to its diversion  
              rate for the purchase of compost.

           While this may be an effort to encourage local governments to  
              use compost, it sets a precedent for those who may want  
              credits for using other diverted materials and results in  
              double-counting.  It would be more appropriate to strike  
              the credit procedure and focus on conditions for a schedule  
              (see Comment #3).

            5) Support and opposition concerns  .  Supporters of revising  
              ADC procedures have generally noted that markets for green  
              waste "are being undermined by the use of these materials  
              as landfill cover."  Supporters have indicated that use of  
              greenwaste ADC increased 20% from 2001 to 2003, compost  
              production decreased almost 30% during that period, and  
              continued diversion credit for use of greenwaste as ADC  
              threatens the existence of the state's composting industry.  
               According to Sierra Club California, "The purpose of [SB  
              1778] is to stimulate growth of markets for green material,  
              which can be put to many beneficial uses."

           Opponents of revising the ADC procedures have generally  
              indicated that it is important for composting markets to be  
              developed first to stimulate greenwaste demand.  According  
              to the County Sanitation Districts of Los Angeles County,  
              "ADC programs offer a reliable and cost-effective market  
              for green waste, and have stimulated the development of  
              separate green waste collection programs . . ."  According  
              to other opponents, "Restricting the use of green materials  
              in ADC would force landfills, in many cases, to import  
              virgin soils for daily cover rather than recycling a green  
              material already available through solid waste hauling  
              operations."

            6) Related legislation  .  SB 411 (Alarcon) is similar to SB  










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              1778, except that SB 411 did not allow for a "market  
              development credit adjustment factor."  SB 411 was approved  
              by the Senate Environmental Quality Committee January 9,  
              2006 (5-1), placed on the Senate Appropriations Committee  
              Suspense File January 19, 2006, and returned to the  
              Secretary of the Senate pursuant to Joint Rule 56 January  
              31, 2006.  SB 1345 (Chesbro) revises certain procedures  
              relating to procurement of compost and requires Caltrans to  
              progressively use more compost instead of fertilizer in the  
              state's highway landscape maintenance program.  

            SOURCE  :        Californians Against Waste  

           SUPPORT  :       California Biomass Energy Alliance
                          Californians Against Waste
                          Sierra Club California  

           OPPOSITION :    Allied Waste, Inc.
           California Refuse Removal Council
           California State Association of Counties
           Desert Valley Disposal, Inc.
                          Inland Empire Disposal Association
                          League of California Cities
                          Los Angeles County Waste Management Association
                          Norcal Waste Systems, Inc.
                          Palm Springs Disposal Services
                          Rainbow Disposal Co. Inc.
                          Republic Services, Inc. (and California  
                          divisions     Consolidated Disposal, Richmond  
                          Sanitary and Taormina Industries)
                          Regional Council of Rural Counties
                          Rural Counties Environmental Services Joint  
                          Powers Authority
                          Sanitation Districts of Los Angeles County
                          Solid Waste Association of North America,  
                          California Chapters
                          Solid Waste Association of Orange County
                          Waste Management