BILL ANALYSIS Ó AB 818 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator S. Joseph Simitian, Chairman 2011-2012 Regular Session BILL NO: AB 818 AUTHOR: Blumenfield AMENDED: As introduced FISCAL: No HEARING DATE: June 27, 2011 URGENCY: No CONSULTANT: Randy Pestor SUBJECT : RECYCLING AT MULTIFAMILY DWELLINGS SUMMARY : Existing law : 1) Under the California Integrated Waste Management Act of 1989: a) Requires each city or county source reduction and recycling element to include an implementation schedule that shows a city or county must divert 25% of solid waste from landfill disposal or transformation by January 1, 1995, and must divert 50% of solid waste on and after 2000. b) Provides programs for recycling at certain types of facilities (e.g., schoolsites, large venues), and requires model ordinances for certain matters (e.g., adequate areas for collection and loading of recyclable materials in development projects; diversion of construction and demolition materials; solid waste reduction, reuse, and recycling at large venues). 2) Under the California Global Warming Solutions Act of 2006 (CGWSA): a) Requires ARB to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is the equivalent to that level, to be achieved by 2020 (Health and Safety Code §38500 et seq.). ARB must adopt rules and regulations to achieve GHG emission reductions to AB 818 Page 2 achieve the maximum technologically feasible and cost-effective reductions in GHGs, subject to certain requirements (§38562(h)). b) Requires ARB to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in GHG emissions from sources or categories of sources of GHGs by 2020. ARB must evaluate the total potential costs and total potential economic and noneconomic benefits of the plan for reducing GHGs to the state's economy, and public health, using the best economic models, emission estimation techniques, and other scientific methods. The plan must be updated at least once every five years. (§38561). c) Authorizes the ARB to adopt GHG emission limits or emission reduction measures prior to January 1, 2011, imposing those limits or measures prior to January 1, 2012, or providing early reduction credit where appropriate. (§38563). This bill enacts the Renters Right to Recycle Act that: 1) Requires a multifamily dwelling owner, on and after July 1, 2010, to arrange for recycling services that are appropriate and available for the multifamily dwelling, consistent with state or local law or requirements, including a local ordinance or agreement applicable to the collection, handling, or recycling of solid waste. A "multifamily dwelling" is defined as a residential facility consisting of five or more living units. 2) Provides conditions for when a multifamily dwelling owner is not required to comply with the bill's requirements (e.g., inadequate space for recycling containers under certain circumstances, services not available). 3) Specifies that nothing in this bill is intended to interfere with or prevent the authority of a local jurisdiction from requiring recycling services for multifamily dwellings (i.e., bill does not preempt local requirements, including any enforcement provisions). AB 818 Page 3 COMMENTS : 1) Purpose of Bill . According to the author, "More than 7.1 million Californians live in approximately 2.4 million multifamily dwellings. Most of these residents are renters, but fewer than 40% of them have access to recycling services where they live. While homeowners can choose to recycle, renters who want to recycle are not able to if their landlord does not provide access to recycling." The author notes that AB 818 would "require apartment building owners of buildings with 5 or more units to make recycling available to tenants, with specified exemptions . . ." 2) Recycling service challenges at multifamily dwellings . Common issues raised for providing recycling services for multifamily units include space for recycling containers, lack of background materials regarding recycling opportunities for residents, participation by owners and residents, and interest by local agencies and solid waste haulers. In an effort to address potential space constraints, AB 1327 (Farr) Chapter 842, Statutes of 1991, enacted the California Solid Waste Reuse and Recycling Access Act of 1991, requiring local agencies to adopt an ordinance relating to adequate areas for collecting and loading recyclable materials in development projects. If a local agency did not adopt the ordinance by September 1, 1994, a model ordinance adopted by the CIWMB must take effect on that date and be enforced by the local agency. AB 2176 (Montanez) Chapter 879, Statutes of 2004, prohibited a local agency from issuing a building permit for a development project unless the development project provides adequate areas for collecting and loading recyclable materials. 3) Regulations requiring commercial recycling . Under the CGWSA, ARB must prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in GHG emissions from sources or AB 818 Page 4 categories of sources of GHGs by 2020. According to ARB, the scoping plan "contains the main strategies California will use to reduce ÝGHGs] that cause climate change. The scoping plan has a range of GHG reduction actions which include direct regulations, alternative compliance mechanisms, monetary and non-monetary incentives, voluntary actions, market-based mechanisms such as a cap-and-trade system, and Ýa CGWSA] program implementation regulation to fund the program." The scoping plan identifies the solid waste sector as a significant source of GHG emissions, and a scoping plan measure to reduce GHG emissions in this sector includes mandatory commercial recycling. The mandatory commercial recycling measure is expected to achieve a reduction in GHG emissions of 5 million metric tons of carbon dioxide equivalents. The California Department of Resources Recycling and Recovery (DRRR) began workshops for the mandatory commercial recycling measure rulemaking process in August 2009. January 1, 2012, is the planned effective date of the recycling regulation, and July 1, 2012, is the planned effective date for jurisdictions and businesses to implement the commercial recycling programs. Some sources indicate that these dates may be adjusted. 4) Related legislation . AB 399 (Montanez) of 2005 and AB 2206 (Montanez) of 2006, amended the California Integrated Waste Management Act of 1989 to address various multifamily recycling matters (e.g., development of a multifamily model ordinance for local agencies; development of model multifamily owner tenant notification documents on how tenants can reduce, reuse, and recycle solid waste materials; multifamily dwelling owner notice to new tenants regarding recycling services). Both bills were vetoed. According to Governor Schwarzenegger in vetoing AB 2206, "While I support efforts to reduce the amount of solid waste going to our landfills, the mandates in this measure are overly prescriptive and create significant state, local and private compliance costs." The Governor encouraged the CIWMB "to continue in its efforts to provide adequate tools AB 818 Page 5 and resources to local jurisdictions in order to make available increased recycling opportunities for multifamily dwelling residents." AB 3056 (Assembly Natural Resources Committee) Chapter 907, Statutes of 2006, made various amendments to the Beverage Container Recycling and Litter Reduction Act, including authorization to fund up to $5 million in grants from January 1, 2007, to January 1, 2008, to local governments or nonprofit agencies to place multifamily housing source separated beverage container recycling receptacles in low-income communities. SB 1021 (Padilla) Chapter 724, Statutes of 2007, continued this program from January 1, 2008, to January 1, 2009, increased the authorized funding for the year to $15 million, and did not limit the program to low-income communities. AB 548 (Levine) of 2007 required an owner or operator of a multifamily dwelling to arrange for recycling services appropriate for the multifamily dwelling, consistent with state or local law or requirements applicable to the collection, handling, or recycling of solid waste. In vetoing AB 548, Governor Schwarzenegger cited increased multifamily dwelling owner costs and local government authority to require recycling at these dwellings, while again encouraging CIWMB efforts, as noted in the AB 2206 veto message. AB 822 (Levine) was amended in 2008 to mirror AB 548 and remained on the Senate Inactive File. AB 473 (Blumenfield) of 2009 mirrored AB 548 and AB 822, except that AB 473 was amended on the Senate Floor after approval by the Senate Environmental Quality Committee June 22, 2009 (5-2), to require the recycling services to be available, while also adding exceptions to the requirement. Governor Schwarzenegger vetoed AB 473, citing concerns similar to those raised in the AB 548 veto message. AB 341 (Chesbro) of 2011 requires DRRR to ensure that 75% of solid waste to be source reduced, recycled, or composted; enacts the Recycling of Commercial Solid Waste Law; and amends other provisions of the California Integrated Waste Management Act. The AB 341 Recycling of Commercial Solid Waste Law requires the owner or operator of a business or a AB 818 Page 6 multifamily residential dwelling of five units or more to arrange for recycling services. Previous bills addressing commercial recycling include SB 25 (Padilla) of 2009-10 that was subsequently amended to address rendering issues and an Assembly Natural Resources Committee hearing was canceled at the author's request; AB 479 of 2009 (Chesbro) (Senate Appropriations Committee August 17, 2009, amendments applied the commercial recycling requirements to multifamily dwellings of 5 units or more) that was held on the Committee's suspense file; and AB 737 (Chesbro) was amended on the Senate Floor September 4, 2009, to include the commercial recycling and other provisions, and was re-referred to the Senate Appropriations Committee, approved by the Committee and the Senate, and vetoed by Governor Schwarzenegger in 2010. In vetoing AB 737, Governor Schwarzenegger indicated that the bill is "unnecessary and duplicative of actions already being undertaken by state agencies" - including DRRR's development of commercial recycling regulations in accordance with the CGWSA scoping plan. 5) Outstanding issues . AB 818 conflicts with: a) proposed mandatory commercial recycling regulations necessary to comply with the CGWSA that are expected to be effective in 2012, and b) the AB 341 (Chesbro) Recycling of Commercial Solid Waste Law which covers multifamily residential dwellings without the exceptions contained in AB 818. If the Committee believes AB 818 is needed when commercial recycling regulations are already expected, and approves AB 341 (Chesbro), then either: a) the provisions of AB 818 must be replaced with the AB 341 commercial recycling provisions (Public Resources Code §§42649.1 and 42649.2); or b) a new section needs to be added to AB 341 (SEC. 11.5) striking a reference to multifamily residential dwellings in §42649.2(a) that would become law only if both bills are signed. SOURCE : Assemblymember Blumenfield SUPPORT : City of Oakland Ecology Action AB 818 Page 7 OPPOSITION : California Association of Realtors