BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1004|
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                                 THIRD READING


          Bill No:  AB 1004
          Author:   Portantino (D)
          Amended:  7/15/10 in Senate
          Vote:     21

           
           SENATE ENV. QUALITY COMMITTEE  :  7-0, 6/28/10
          AYES:  Simitian, Runner, Corbett, Hancock, Lowenthal,  
            Pavley, Strickland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  57-6, 1/19/10 - See last page for vote


           SUBJECT  :    State solid waste:  Postclosure and Corrective  
          Action Trust 
                      Fund

           SOURCE  :     Waste Management Inc.


           DIGEST  :    This bill makes various changes in the law  
          relating to the State Solid Waste Postclosure and  
          Corrective Action Trust.

           ANALYSIS  :    The California Integrated Waste Management Act  
          (Act) of 1989 requires a solid waste disposal fee, on and  
          after January 1, 2012, to be increased by $0.12 per ton for  
          each operator of a solid waste landfill that notifies the  
          Department of Resources Recycling and Recovery (DRRR) that  
          it elects to participate in the State Solid Waste  
          Postclosure and Corrective Action Trust Fund.  However, the  
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          fee will not be operative on or after January 1, 2012,  
          unless the department receives, on or before July 1, 2011,  
          letters of participation in the fund from landfill  
          operators representing at least 50 percent of the total  
          volume of waste disposed of in 2010.  The Act requires the  
          DRRR to notify the State Board of Equalization on or before  
          August 31, 2011, if the increased fee will become  
          operative.

          This bill extends all of those dates by one year, and the  
          fee is operative only if the department determines there is  
          sufficient landfill owner participation to warrant creation  
          of the fund, rather than based on total volume of waste  
          disposed by participating landfill operators six months,  
          except the total volume of waste is still be measured by  
          the 2010 standard, with the exception that letters of  
          participation would be based on submission of those letters  
          by landfill owners rather than landfill operators.  The  
          bill also imposes the participation notification  
          requirements on the owner of a landfill rather than the  
          operator.

          The Act requires an operator of a landfill that meets  
          specified requirements, including electing to participate  
          in the fund, to submit written notice to the department on  
          or before July 1, 2011.  The Act requires an operator that  
          is operating a landfill on July 1, 2011, who and submits  
          that notice after the increased fee goes into effect to pay  
          all trust fund fees applicable from January 1, 2012, and a  
          five percent penalty before being allowed to participate.   
          For a new landfill that receives a solid waste facility  
          permit after July 1, 2011, the act requires the operator's  
          election to participate in the fund to be submitted in  
          writing to the department before the department concurs in  
          the issuance of the permit.  The Act also requires an  
          operator of multiple landfills who is required to maintain  
          evidence of financial ability and whose landfills are  
          operating on July 1, 2011, to include all other landfills  
          in which that operator has in common ownership in the  
          letter of participation.

          This bill extends all of those dates by one year six  
          months, and applies to those requirements to owners rather  
          than operators.  Additionally, a landfill with multiple  

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          owners will be authorized to participate only if all owners  
          of that landfill elect to participate, and participation of  
          a landfill with multiple owners would not obligate a  
          partial owner of that landfill to include any other  
          landfills at which the owner has full or partial ownership.

          The act requires the DRRR after January 1, 2015, to report  
          annually on expenditures from the fund, the status of cost  
          recovery actions, and any recommended statutory changes  
          that are necessary to ensure adequate resources are  
          available to carry out the purposes of the fund.

          This bill requires the DRRR to begin that annual reporting  
          after January 1, 2016, rather than January 1, 2015.

          According to the author's office, this bill is necessary to  
          address the transition of the Integrated Waste Management  
          Board to the DRRR and anticipates the transition of a new  
          Administration.  More time is required.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  8/2/10)

          Waste Management, Inc. (source)


           ASSEMBLY FLOOR : 
          AYES: Adams, Ammiano, Anderson, Beall, Bill Berryhill,  
            Blakeslee, Block, Blumenfield, Bradford, Buchanan,  
            Caballero, Conway, Cook, Coto, De La Torre, De Leon,  
            DeVore, Emmerson, Evans, Feuer, Fletcher, Fong, Fuller,  
            Furutani, Gaines, Galgiani, Garrick, Gilmore, Hagman,  
            Harkey, Hayashi, Hernandez, Hill, Huber, Huffman, Jones,  
            Knight, Logue, Ma, Mendoza, Miller, Niello, Nielsen, John  
            A. Perez, V. Manuel Perez, Portantino, Ruskin, Salas,  
            Saldana, Silva, Smyth, Solorio, Audra Strickland,  
            Torlakson, Torrico, Tran, Villines
          NOES: Chesbro, Lieu, Skinner, Swanson, Torres, Yamada
          NO VOTE RECORDED: Arambula, Tom Berryhill, Brownley,  
            Charles Calderon, Carter, Davis, Eng, Fuentes, Hall,  
            Jeffries, Bonnie Lowenthal, Monning, Nava, Nestande, Bass


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          TSM:do  8/4/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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