BILL ANALYSIS AB 479 Page 1 ASSEMBLY THIRD READING 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 composting. 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 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 AB 479 Page 2 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) AB 479 Page 3 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 basis. AB 479 Page 4 Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0001100