BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 479
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          AB 479 (Chesbro)
          As Amended  April 22, 2009
          Majority vote 

           NATURAL RESOURCES   6-3         APPROPRIATIONS      11-5        
          |Ayes:|Skinner, Brownley,        |Ayes:|De Leon, Ammiano, Charles  |
          |     |Chesbro,                  |     |Calderon, Davis, Fuentes,  |
          |     |De Leon, Hill, Huffman    |     |Hall, John A. Perez,       |
          |     |                          |     |Price, Skinner, Torlakson, |
          |     |                          |     |Krekorian                  |
          |     |                          |     |                           |
          |Nays:|Gilmore, Knight, Logue    |Nays:|Nielsen, Duvall, Harkey,   |
          |     |                          |     |Miller,                    |
          |     |                          |     |Audra Strickland           |
          |     |                          |     |                           |
           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.  Specifically,  
           this bill  :

          1)Requires local jurisdictions to divert 60% of all solid waste  
            by January 1, 2015, through source reduction, recycling, and  

          2)Requires the California Integrated Waste Management Board  
            (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  

          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  


                                                                  AB 479
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            a commercial recycling ordinance.  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.   

          5)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  
            or before January 1, 2010; or, the right of a business to sell  
            or donate their recyclable materials.  

          6)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; and,

             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.   

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, this bill would generate revenues of approximately  
          $100 million annually (allocated to local government) resulting  
          from the fee increase.  This bill has minor costs, likely less  
          than $150,000, to the Board of Equalization (BOE) to adjust its  
          imposition and collection of the fee in fiscal year (FY)  
          2009-2010 and ongoing costs to BOE to administer allocation of  
          the additional revenue.  BOE's costs are covered by the revenue  
          collected.  This bill has moderate one-time special fund costs,  
          in the range of $400,000, to CIWMB to develop an increased  
          diversion plan; moderate ongoing special fund costs, around  
          $500,000 annually, to CIWMB to adopt policies, programs, and  
          incentives to achieve the increased statewide diversion rates;  
          and, substantial cost pressures, in the millions of dollars  
          annually, to CIWMB and to local governments to implement the  
          policies, programs, and incentives needed to achieve increased  
          diversion rates.  (Integrated Waste Management Account) 


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           COMMENTS :  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,  
          adopted by ARB in December 2008 in response to the California  
          Global Warming Solutions Act, 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 Scoping Plan, 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.

          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 requirements, which closes a significant  
          loophole in the state's diversion efforts.   

          This bill provides funding to assist local governments with  
          achieving the 60% goal by increasing the state's tipping fee by  
          $2.50 and redirecting that money back to locals on a per capita  


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           Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  

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