BILL ANALYSIS
SB 390
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Date of Hearing: June 30, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 390 (Kehoe) - As Amended: April 26, 2010
Policy Committee: Natural
ResourcesVote:7-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill extends the sunset date-to January 1, 2021, from
January 1, 2011-for California's Recycling Market Development
Zone (RMDZ) Program. The bill also removes the $5 million cap
on the annual amount to be transferred, upon appropriation, from
Integrated Waste Management Account (IWMA) to the Recycling
Market Development Revolving Subaccount.
FISCAL EFFECT
Cost pressures of an unknown amount during the years 2010-11
through 2021-22 on other programs funded from the IWMA to the
extent the continuation of the RMDZ Program results in those
other programs receiving less IWMA funds than they otherwise
would.
COMMENTS
1)Rationale . According to the author, continuation of the RMDZ
Program will allow further funding of businesses located in
RMDZs that increase diversion of nonhazardous solid waste from
California landfills and that promote market demand for
secondary and postconsumer materials.
2)Background . The RMDZ Program was established by Senate Bill
1322 (Bergeson, Chapter 1096, Statutes of 1989) to encourage
establishment of local and regional private markets for the
increased amount of materials diverted from California's
landfills in keeping with state's waste reduction laws.
Initially, the program was funded by the Integrated Waste
Management Account. The ongoing loan program is funded by
SB 390
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loan repayments.
According to the department, currently there are 33 RMDZs
throughout the state, encompassing 220 cities and 29 counties.
RMDZs are managed at the local level by Zone
Administrators--typically staff from local government waste
management departments. Calrecycle reports that, as of
January 2009, the program had funded 153 loans totaling $100
million, resulted in an estimated additional 4 million tons
per year of material being diverted from California landfills
and the creation of 1,930 jobs. The average loan amount has
been approximately $800,000.
The initial funding for the Program came from the Integrated
Waste Management Account (IWMA). The ongoing loan program is
funded by loan repayments. Current law authorizes, upon
appropriation of the Legislature, up to $5 million to be
transferred from the IWMA to the Recycling Market Development
Revolving Subaccount-the source of the loan program's funding.
This bill would remove the $5 million cap, leaving it to the
Legislature to determine the appropriate amount of funding to
appropriate to the subaccount from the IWMA.
3)Support . This bill is supported by numerous industry
organizations and several local governments, including the
City of Los Angeles, who contend the program provides critical
funding to develop a market for waste products diverted from
California land fills.
4)There is no registered opposition to this bill.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081