BILL ANALYSIS Ó AB 341 Page 1 Date of Hearing: April 25, 2011 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Wesley Chesbro, Chair AB 341 (Chesbro) - As Amended: April 6, 2011 SUBJECT : Solid waste: diversion SUMMARY : Requires the state to divert 75% of its solid waste annually on or by 2020; requires a commercial waste generator to arrange for recycling services; and requires a local government to implement a commercial solid waste recycling program designed to divert solid waste from businesses. EXISTING LAW : 1)Requires local governments to divert 50 percent of solid waste disposed by their jurisdictions through source reduction, recycling, and composting. 2)Requires a local government to have a source reduction and recycling plan that places primary emphasis on implementation of all feasible source reduction, recycling, and composting programs while identifying the amount of landfill and transformation capacity that will be needed for solid waste that cannot be reduced at the source, recycled, or composted. 3)Requires a local government to have a nondisposal facility plan that includes all solid waste facilities and solid waste facility expansions that will help the local government reach its waste diversion mandate. Nondisposal facilities are primarily materials recovery facilities (i.e., facilities where recyclables are separated from waste or other recyclables), compost facilities, and transfer stations, but may also include recycling centers, drop-off centers, and household hazardous waste facilities. 4)Requires, as of 1994, a local government to have ordinances relating to adequate areas for collection and loading of recyclable materials at commercial, industrial, and multifamily development projects. Prohibits, as of 2005, a local government from issuing a building permit to a development project unless the development project provides adequate space for collecting and loading recyclable materials. AB 341 Page 2 THE BILL : 1)Requires, on or before January 1, 2020, and annually thereafter, the Department of Resources Recycling and Recovery (Department) to ensure that 75% of solid waste generated is source reduced, recycled, or composted. 2)Requires a commercial waste generator to arrange for recycling services to the extent that the services are offered and reasonably available from a local service provider. Defines "commercial waste recycler" as the owner or operator of a business that contracts for solid waste services and generates more than four cubic yards of solid waste per week or is a multifamily residential dwelling of five units or more. 3)Requires a local government to implement a commercial solid waste recycling program designed to divert solid waste from businesses. FISCAL EFFECT : Unknown COMMENTS : 1)Background. California is a national leader in diverting waste from landfills by currently diverting 58% of all waste, which is well above the state's 50% mandate. The state has achieved this goal in part by increasing recycling opportunities through the Integrated Waste Management Act (Division 30 (commencing with Section 40000) of the Public Resources Code). Despite the state's high diversion rate, Californians still dispose more waste than the national average. There are measures that can be taken, such as mandatory commercial and multifamily residential recycling, that will decrease the state's solid waste disposal and increase its diversion rate. Additionally, a new waste diversion goal of 75% will help facilitate more source reduction, recycling, and composting in the state. 2)Commercial Recycling. According to the Department, the commercial sector generates over 60% of waste disposed. The AB 32 Scoping Plan, adopted by the California Air Resources Board 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 AB 341 Page 3 could be implemented, for example, through voluntary or mandatory programs, including protocols, enhanced partnerships with local governments, and provision of appropriate financial incentives." 3)Multifamily Dwelling Recycling. As for multifamily dwellings, they generate more than 8% of the disposed waste stream in California. According to the sponsor, there are approximately 7.1 million Californians living in approximately 2.4 million multifamily dwellings. Most of these residents are renters, but fewer that 40 percent of them have access to recycling services where they live. While a homeowner can choose to recycle at home, a renter who wants to recycle at his/her residence is not able to when the landlord does not provide the opportunity to do so. Additionally, a 2001 report prepared by the California Integrated Waste Management Board, "Recycling in Multifamily Dwellings," concluded that much of the cost associated with providing recycling services at multifamily dwellings is offset by reduced disposal fees. 4)Economy and Climate Change. Overall, recycling provides tremendous benefits to the state. Not only does it conserve natural resources, energy, and water, it also creates jobs and builds California's economy and reduces greenhouse gas emissions. 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. A June 2010 cost study on commercial recycling published by the Department concluded that a mandatory commercial recycling program in the state could generate between 938 and 1,396 new full-time equivalent jobs in recycling collection, support, supervisory, and management. According to the Department, additional recovery of recyclable materials will directly reduce greenhouse gas emissions. Recycled materials can reduce the greenhouse gas emissions from multiple phases of product production including extraction of raw materials, preprocessing, and manufacturing. Increased recycling also reduces methane emissions at landfills resulting from the decomposition of organic materials. AB 341 Page 4 REGISTERED SUPPORT / OPPOSITION : Support Californians Against Waste Opposition California Refuse Recycling Council Blue Line Transfer, Inc. Burrtec Waste Industries, Inc. CR&R Incorporated Orange County Board of Supervisors Rainbow Disposal Co., Inc. Solid Waste Association of North America South San Francisco Scavenger Company Varner Bros., Inc. Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916) 319-2092