BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 818|
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                                 THIRD READING


          Bill No:  AB 818
          Author:   Blumenfield (D), et al
          Amended:  7/1/11 in Senate
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  6-1, 6/27/11
          AYES:  Simitian, Blakeslee, Hancock, Kehoe, Lowenthal, 
            Pavley
          NOES:  Strickland

           ASSEMBLY FLOOR  :  51-25, 5/19/11 - See last page for vote


           SUBJECT  :    Solid waste: multifamily dwellings:

           SOURCE  :     Author


           DIGEST  :    This bill enacts the Renters' Right to Recycle 
          Act which requires an owner of a multifamily dwelling (MFD) 
          with five or more living units to arrange for recycling 
          services that are appropriate and available for the MFD, as 
          specified.

           ANALYSIS  :    

           Existing Law  :

          1. Local agencies to divert 50 percent of solid waste 
             disposed by their jurisdictions on and after the year 
             2000 through source reduction, recycling, and 
             composting. 
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          2. Local enforcement agencies for solid waste (generally 
             cities or counties) to enforce statewide minimum 
             enforcement standards for solid waste handling and 
             disposal. 

          3. Local agencies to annually submit a report to the 
             Department of Resources Recycling and Recovery 
             (CalRecycle) summarizing progress in reducing and 
             diverting solid waste as part of their diversion 
             mandates. 

          4. Local agencies, on and after September 1, 1994, to adopt 
             ordinances relating to adequate areas for collecting and 
             loading recyclable materials in development projects and 
             prohibits a local agency from issuing a building permit 
             after July 1, 2005, for a building that does not comply 
             with this requirement.

          This bill: 

          1. Requires an owner of a MFD to arrange for recycling 
             services that are appropriate and available for the MFD. 
              For the purposes of the bill an MFD is a residential 
             facility that consists of five or more living units. 

          2. States that an owner of an MFD is not required to 
             arrange for recycling services if: 

             A.    There is inadequate space for recycling 
                containers, as certified by a solid waste 
                enterprise that would otherwise serve the MFD.  
                The certification is to be valid for no more than 
                five years and is to include the following:

                (1) Address of the multifamily dwelling.

                (2)                                                
                       Name, address, telephone number, a d email 
                   address of the multifamily dwelling owner.

                (3)                                                
                       Name, address, telephone number, business 
                   license number, and email address of the solid 

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                   waste enterprise making the required 
                   certification.

                (4)                                                
                       Date of certification.

                (5)                                                
                       Name and title of the person making the 
                   certification.

            B.   The above shall not apply to a multifamily dwelling 
               for which a building permit is required on or after 
               either of the following dates whichever is later:  The 
               effective date of an ordinance required pursuant to 
               subdivision (a) of Section 42911 of the Public 
               Resources Code that was adopted prior to September 1, 
               1994, if the effective date of the ordinance is prior 
               to September 1, 1996.

             C.    The cost of recycling services creates a 
                financial hardship for the MFD owner.  An owner 
                can claim a financial hardship if the recycling 
                services result in a cost increase of 30 percent 
                or more over the cost of providing solid waste 
                service alone.  As part of the claim, the owner 
                must include the contact information of the solid 
                waste enterprise that provided the information on 
                which the claim is made.  The claim is valid for 
                no more than five years.

               This bill does not interfere with or prevent a 
               local jurisdiction from requiring recycling 
               services for multifamily dwellings.

          3. Will not become operative only if AB 341 (Chesbro), 
             2011-12 Session, is not enacted and does not become 
             effective on or before January 1, 2012.

           Comments
           
          According to the author's office, more than 7.1 million 
          Californians live in approximately 2.4 million MFDs.  Most 
          of these residents are renters, but fewer than 40 percent 
          of them have access to recycling services where they live.  

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          While a homeowner can choose to recycle, a renter who wants 
          to recycle is not able to when his/her landlord does not 
          provide the opportunity to do so. 

          In California, about eight percent of the disposed waste 
          stream (3.3 million tons) comes from MFDs.  Additionally, 
          MFDs account for nearly 45 percent of housing units in San 
          Francisco, 34 percent in Los Angeles, and 29 percent in San 
          Diego--significantly higher than the national average of 16 
          percent.  Successful recycling programs in multifamily 
          housing require the education, participation, and 
          commitment of residents, the cooperation of local agencies, 
          and the participation of solid waste haulers.  A 2001 
          report prepared by the Integrated Waste Management Board, 
          "Recycling in Multifamily Dwellings," concludes that much 
          of the cost associated with recycling at MFDs is offset by 
          reduced disposal fees.

           Regulations requiring commercial recycling  .  Under the 
          California Global Warming Solutions Act (GWSA), the 
          California Air Resource Board (ARB) must 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.  According to ARB, the scoping plan "contains the 
          main strategies California will use to reduce greenhouse 
          gases (GHGs) 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.

          CalRecycle began workshops for the mandatory commercial 
          recycling measure rulemaking process in August 2009.  

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          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.

           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 California Integrated 
          Waste Management Board (CIWMB) "to continue in its efforts 
          to provide adequate tools 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, makes 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, continues 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 

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          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 CalRecycle to ensure that 
          75 percent 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 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 
          CalRecycle's development of commercial recycling 
          regulations in accordance with the CGWSA scoping plan.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   

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          Local:  No

           SUPPORT  :   (Verified  6/27/11) (per Senate Environmental 
          Quality Committee analysis) (Unable to verify at the time 
          of writing)

          California State Association of Counties
          City of Oakland
          Ecology Action

           ASSEMBLY FLOOR  : 
          AYES: Allen, Ammiano, Atkins, Beall, Block, Blumenfield, 
            Bonilla, Bradford, Brownley, Buchanan, Butler, Charles 
            Calderon, Campos, Carter, Cedillo, Chesbro, Davis, 
            Dickinson, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Galgiani, Gatto, Gordon, Hall, Hayashi, Roger Hernández, 
            Hill, Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, 
            Mendoza, Mitchell, Monning, Pan, Perea, V. Manuel Pérez, 
            Portantino, Skinner, Solorio, Swanson, Torres, 
            Wieckowski, Williams, Yamada, John A. Pérez
          NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly, 
            Beth Gaines, Garrick, Hagman, Halderman, Harkey, 
            Jeffries, Jones, Knight, Logue, Mansoor, Miller, Morrell, 
            Nestande, Nielsen, Norby, Olsen, Silva, Smyth, Valadao, 
            Wagner
          NO VOTE RECORDED: Alejo, Gorell, Grove, Ma


          DLW:do  7/1/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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