BILL ANALYSIS
AB 479
Page 1
Date of Hearing: April 13, 2009
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Nancy Skinner, Chair
AB 479 (Chesbro) - As Introduced: February 24, 2009
SUBJECT : Solid waste: diversion.
SUMMARY : Increases the solid waste diversion rate for local
jurisdictions to 60% by 2015 and establishes a statewide
diversion goal of 60% by 2015 and 75% by 2020. Implements
recycling requirements for commercial waste generators.
Increases the state's tipping fee on solid waste from $1.40 per
ton to $3.90 per ton and directs the revenue from the increase
back to local jurisdictions.
EXISTING LAW , under the California Integrated Waste Management
Act of 1989:
1) 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.
2) Allows the California Integrated Waste Management Board
(CIWMB) to grant a time extension to the above diversion
requirements for a newly incorporated city.
3) Allowed CIWMB, until January 1, 2006, to establish an
alternative to the 50% diversion requirement under certain
conditions.
4) Allowed CIWMB, until January 1, 2006, to grant time
extensions to the 2000 50% diversion requirement under
certain conditions.
5) Required local agencies to adopt an ordinance relating to
adequate areas for collecting and loading recyclables in
development projects prior to September 1, 1994. If any
local agency had not adopted an ordinance by that date, a
model ordinance prepared by CIWMB took effect.
6) Beginning July 1, 2005, prohibits local agencies from issuing
a building permit for any development project that fails to
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include adequate areas for collecting and loading recyclable
materials.
THIS BILL :
1)Requires local jurisdictions to divert 60% of all solid waste
by January 1, 2015 through source reduction, recycling, and
composting.
2)Requires CIWMB to adopt policies and incentives to ensure that
statewide diversion reaches 60% by January 1, 2015 and 75% by
January 1, 2020.
3)Requires owners or operators of businesses that contract for
solid waste services and generate more than four cubic yards
of solid waste and recyclable materials per week to arrange
for recycling services consistent with local and state
requirements and to the extent that the service is "reasonably
available."
4)On or before January 1, 2011, requires each city, county,
solid waste authority, or joint powers authority located
within a county with a population of 200,000 or more to adopt
a commercial recycling ordinance.
5)Specifies that the ordinance must include:
a) An enforceable requirement that a commercial waste
generator source separate recyclable material from solid
waste and subscribe to a basic level of recycling service,
or subscribe to an alternative type of recycling service,
which may include mixed waste processing.
b) Educational, implementation, and enforcement provisions.
6)Specifies that the bill does not limit the authority of a
local agency to adopt, implement, or enforce a local
commercial recycling ordinance that is more stringent or limit
the authority of a local agency in a county of less than
200,000.
7)Specifies that the bill does not modify or abrogate a
franchise granted by a local agency on or before January 1,
2010; a contract, license, or permit to collect solid waste on
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or before January 1, 2010; or, the right of a business to sell
or donate their recyclable materials.
8)Authorizes a local agency to take into account the adequacy of
areas for collecting and loading recyclable materials, and
prohibits a local agency from determining noncompliance due to
inadequate areas for recycling if the development project was
granted prior to September 1, 1994.
9)Increases the state tipping fee on solid waste from $1.40 per
ton to $3.90 per ton on and after January 1, 2010 and
appropriates the increase as follows:
a) Between January 1, 2010 and January 1, 2015, on a per
capita basis to jurisdictions for the expansion of source
reduction and recycling programs and commercial recycling
programs.
b) After January 1, 2015, on a per capita basis to
jurisdictions that have achieved 60% diversion. For
jurisdictions that have not reached 60%, requires CIWMB to
expend the fee revenues on a per capita basis to establish
local programs to meet this requirement.
10)Makes related technical and clarifying changes.
FISCAL EFFECT : According to State Board of Equalization (BOE),
over the last three years an average of 40 million tons of solid
waste was disposed. Based on this figure, BOE projects that
this bill will increase fee collection by approximately $100
million annually. This bill directs that amount back to local
governments on a per capita basis.
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COMMENTS :
1)Background
California is a national leader in diverting waste from
landfills, currently diverting 54% of all waste. CIWMB has
adopted a "zero waste" goal for California. While a laudable
goal, this is unreachable without significant increases in
diversion efforts, including requirements for commercial
recycling. According to CIWMB, the commercial sector generates
approximately 60% of waste disposed. The AB 32 Scoping Plan
calls for substantial increases in recycling for the commercial
sector and states that "this could be implemented, for example,
through voluntary or mandatory programs, including protocols,
enhanced partnerships with local governments, and provision of
appropriate financial incentives."
Recycling provides significant benefits. Not only does it
conserve natural resources, energy, and water, it also creates
jobs and builds California's economy. According to Californians
Against Waste, the recycling industry accounts for more than
85,000 jobs and generates nearly $4 billion annually in wages
and produces $10 billion worth of goods and services annually.
Moreover, recycling helps reduce greenhouse gas emissions from
landfills and manufacturing. According to the AB 32 Scoping
Plan, adopted by ARB in December 2008 in response to the
California Global Warming Solutions Act, 5.6 million metric tons
carbon dioxide equivalent (MMTCO2E), of the state's total GHG
emissions are from solid waste landfills. If left unaddressed,
that number will reach 7.7 MMTCE by the year 2020. The Scoping
Plan calls for reductions in methane emissions from landfills
through increased diversion/recycling, composting, and
commercial recycling.
2)This bill
According to the author, this bill provides a new standard for
recycling and waste reduction in California by moving the state
from the current 50% diversion requirement to 60% by 2015 and
75% by 2020 and establishes "shared responsibility" for reaching
these goals by requiring local governments to achieve 60% with
the remaining responsibility placed on CIWMB to achieve a
statewide rate of 75%.
Additionally, this bill establishes commercial recycling
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requirements, which closes a significant loophole in the state's
diversion efforts.
This bill attempts to provide funding for local governments
reach the 60% goal by increasing the state's tipping fee by
$2.50 and redirecting that money back to locals on a per capita
basis.
3)Arguments in opposition
This bill faces opposition from local governments, who state
that much has changed recently to make increased diversion
infeasible. The most significant of which is the collapse of
the recycled materials markets. The value of these materials,
including plastic, cardboard, and glass, has dropped as much as
80%. As a result, these materials are being stockpiled. Should
the market fail to rebound in the near future, many of these
materials may be landfilled. Opponents also point out that
landfills have experienced a drop in disposal by as much as 20%.
This has resulted in a decrease in disposal fee revenues to
local governments. Increasing the state disposal fee will not
alleviate this problem and will raise disposal costs.
Local governments state that additional tools are needed before
they can comply with an increased diversion rate. These tools
include improved product design and producer responsibility;
meaningful market development for recycled materials; assistance
for siting compost facilities; better organics management; and
efforts to enhance conversion technology.
4)Previous and related legislation
a) SB 25 (Padilla) requires CIWMB to develop a plan and to
adopt policies, programs, and incentives to reach a
statewide diversion rate of 75% by an unspecified date.
This bill is currently in the Senate Environmental Quality
Committee.
b) AB 2866 (Huffman), introduced in 2008, increased the
tipping fee from $1.40 per ton to $2 per ton beginning July
1, 2009 and directs the additional funding to be used for
air emission reduction technologies for solid waste
vehicles; diversion programs for compostable organics,
including energy generation; and, to establish a trust fund
to protect the state from liability associated with closed
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and abandoned solid waste disposal sites. This bill was
held in the Senate Appropriations Committee.
c) AB 2640 (Huffman), introduced in 2008, required CIWMB to
develop a compostable organics management program and a
grant and loan program for organics management projects.
Additionally, this bill established a fee of $1.40 per ton
(the same amount as the state's tipping fee) on organics
used for alternative daily cover (ADC) in the operations of
a solid waste facility. This bill was held on the Senate
Appropriations Suspense File.
d) SB 1020 (Padilla), introduced in 2007, required CIWMB to
develop a plan to achieve a 75% statewide rate of solid
waste diversion from landfills and other disposal
facilities by January 1, 2020. This bill was held in the
Assembly Appropriations Committee.
e) AB 1610 (Nu?ez), introduced in 2007, increased the
maximum solid waste tipping fee from $1.40 to $2 per ton.
This bill was gutted and amended to address oil refineries.
f) AB 712 (De Leon), introduced in 2007, established the
Off-Road Solid Waste and Recycling Vehicle Clean Air
Program and imposed a new tipping fee of $0.50 on each ton
of solid waste disposed in California to fund air quality
compliance for off-road solid waste vehicles and to fund a
grant program for projects that produce renewable energy
from solid waste. This bill was held on the Senate
Appropriations Suspense File.
5)Suggested amendment
Section 6 of the bill (page 8, beginning on line 12) is unclear
as to how the fee is apportioned. The committee may wish to
adopt the following amendment:
48001.5. The fee revenues collected by the State Board
of Equalization pursuant to subdivision (e) of Section
48000 The amount of two dollars and fifty cents ($2.50)
per ton of the fee collected by the board, pursuant to
subdivision (d) of section 48000, shall be available to the
board, upon appropriation by the Legislature, for
expenditure by the board according to the following:
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(a) Between January 1, 2010, and January 1, 2015, the fee
revenue shall be apportioned on a per capita basis to
jurisdictions for the expansion of source reduction,
recycling, and composting programs, including residential
recycling programs and commercial recycling programs, as
well as the development of new and expanded recycling and
composting infrastructure.
(b) On and after January 1, 2015, the fee revenues shall
be apportioned on a per capita basis to jurisdictions that
have achieved the diversion rate specified in paragraph (3)
of subdivision (a) of Section 41780 for use pursuant to
subdivision (a) of this section. For jurisdictions that
have not reach the diversion rate required in paragraph (3)
of subdivision (a) of Section 41780, the board shall expend
the fee revenues to establish local programs to help the
jurisdictions achieve the diversion rate required by
paragraph (3) of subdivision (a) of Section 41780.
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County and Municipal Employees,
AFL-CIO
California Senior Legislature
Californians Against Waste
Opposition
Cal-Tax
California State Association of Counties
County Sanitation Districts of Los Angeles County
League of California Cities
Regional Council of Rural Counties
Solid Waste Association of North America
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092