BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 323
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          Date of Hearing:  April 29, 2013

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                 AB 323 (Chesbro) - As Introduced:  February 12, 2013
           
          SUBJECT  :  Solid waste:  recycling: diversion:  green materials

           SUMMARY  :  Requires the Department of Resources Recycling and  
          Recovery (CalRecycle) to phase out recycling credit for green  
          waste (e.g., yard waste) used in the operation of a landfill.   
          Requires large generators of organic waste, as determined by  
          CalRecycle, to subscribe to recycling services for this  
          material.

           EXISTING LAW:  

          1)Establishes the California Integrated Waste Management Act of  
            1989, which: 

             a)   Specifies a state policy goal that 75 percent of solid  
               waste generated be diverted from landfill disposal by 2020.  


             b)   Requires each local jurisdiction to divert 50 percent of  
               solid waste from landfill disposal.

             c)   Requires a commercial waste generator (including  
               multi-family dwellings) to arrange for recycling services  
               and requires local governments to implement commercial  
               solid waste recycling programs designed to divert solid  
               waste from businesses. 

          2)Establishes the California Global Warming Solutions Act of  
            2006 (AB 32), which requires the California Air Resources  
            Board (ARB) to: 

             a)   Adopt regulations requiring the reporting and  
               verification of statewide greenhouse gas (GHG) emissions.

             b)   Adopt a statewide GHG emissions limit equivalent to 1990  
               emissions levels by 2020.

           THIS BILL  : 









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          1)Establishes legislative findings and declarations regarding  
            California's progress in waste reduction and recycling and the  
            benefits of diverting compostable organics from solid waste  
            landfills, including GHG emissions reductions, water quality  
            improvements, and agricultural applications.

          2)Requires CalRecycle to: 

             a)   Adopt regulations by January 1, 2020 that specify the  
               use of green material as alternative daily or intermediate  
               cover (ADC or IC) does not constitute diversion.   
               Authorizes CalRecycle to delay the effective date of the  
               regulations for up to two years if it determines that  
               sufficient regional green material processing  
               infrastructure will not exist to handle this material.

             b)   Analyze the public health and safety effects of the use  
               of residual fines (e.g., the material left over after  
               removing the recyclable materials) from material recovery  
               facilities (MRFs) and materials left over from the  
               composting process (compost overs) for ADC and other forms  
               of beneficial use in the design and operation of a solid  
               waste landfill.

             c)   On or before January 1, 2015, adopt regulations for the  
               use of  MRF fines as an authorized material for use as ADC  
               and beneficial reuse at solid waste facilities in the state  
               if, based on the analysis conducted, CalRecycle determines  
               that MRF fines or compost overs would serve as adequate  
               cover.  The regulations shall: 

               i)     Contain performance standards, and may also include  
                 standards for screening, processing, and testing material  
                 recover facility fines;

               ii)     Ensure that the material does not contain hazardous  
                 materials above approved thresholds; and, 

               iii)   Require that any compost overs used as ADC or for  
                 beneficial reuse in the design and operation of a solid  
                 waste landfill shall not exceed five percent of the  
                 incoming material at the source compost facility, by  
                 weight.

             d)   The regulations adopted by CalRecycle relating to the  








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               use of MRF fines and compost overs as ADC shall not include  
               the use of residual fines from mixed waste processing  
               facilities.

             e)   Adopt regulations by January 1, 2017 that would require  
               a large-quantity commercial organics generator to arrange  
               for separate organics collection and recycling services,  
               which may include but are not limited to self-hauling.   
               Authorizes CalRecycle to establish different timelines for  
               different types of organic materials, different types of  
               large-quantity commercial organics generators, and  
               different regions of the state, provided that these  
               requirements come into effect by January 1, 2017.

          3)Defines the following terms: 

             a)   "Commercial solid waste" to include all types of solid  
               waste generated by a store, office, or other commercial or  
               public entity source, including a business or multifamily  
               dwelling of five or more units.

             b)   "Large-quantity commercial organics generator" (organics  
               generator) to mean a business that generates significant  
               amounts of organic waste, including but not limited to,  
               food waste and green materials, that is traditionally  
               disposed of in a solid waste landfill, as determined by  
               CalRecycle.

          4)Makes technical and conforming changes to the law.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  According to the author, "AB 323 will help California  
          achieve the state's air quality, GHG, and waste reduction goals  
          by diverting organic materials from landfills."

           Meeting the state's recycling goals  .  CalRecycle is tasked with  
          diverting at least 75 percent of solid waste statewide by 2020.   
          Currently, organic materials make up one-third of the waste  
          stream and food continues to be the highest single item disposed  
          at over 15 percent of disposal.  CalRecycle is also charged with  
          implementing its Strategic Directive 6.1, which calls for  
          reducing organic waste disposal by 50 percent by 2020.   
          According to CalRecycle, significant gains in organic waste  
          diversion are necessary to meet the 75 percent goal and  








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          implementing Strategic Directive 6.1.  Recycling technologies  
          for organic waste include composting, anaerobic digestion, and  
          other types of processing that generate renewable fuels, energy,  
          soil amendments, and mulch.

          Compost and other soil amendments that can be produced from  
          organic materials have been shown to improve soil health by  
          incorporating organic matter, beneficial micro-organisms, and  
          nutrients and reduce the need for chemical pesticides and  
          fertilizers.  These products also conserve water by allowing  
          water to penetrate the soil more quickly and decreasing runoff.

          Recycling organic materials also creates local jobs.  According  
          to CalRecycle, composting creates an average of four jobs for  
          every 1,000 tons of material, approximately four times more than  
          landfilling.

           Waste reduction and GHGs  .  According to ARB, a total reduction  
          of 80 million metric tons (MMT), or 16 percent compared to  
          business as usual, is necessary to reduce statewide GHG  
          emissions to 1990 levels by 2020.  ARB intends to achieve  
          approximately 78 percent of the reductions through direct  
          regulations.  ARB proposes to achieve the balance of reductions  
          necessary to meet the 2020 limit (approximately 18 MMT) through  
          a cap-and-trade program.

          The 2012-13 Budget Act authorized DOF to allocate at least $500  
          million from cap-and-trade revenue, and make commensurate  
          reductions to General Fund expenditure authority, to support the  
          regulatory purposes of AB 32.  The Governor's proposed 2013-14  
          Budget includes a brief discussion of Administration priorities  
          for investment, emphasizing investments in the transportation  
          and energy sectors from which large reductions in GHG emissions  
          are possible.  In addition, areas to be examined during the  
          planning process include sustainable agriculture practices  
          (including the development of bioenergy), forest management and  
          urban forestry, and the diversion of organic waste to bioenergy  
          and composting.  ARB's draft three-year investment plan for  
          cap-and-trade revenues includes waste diversion as a funding  
          priority.

          Recycling organic waste provides significant GHG reductions over  
          landfilling.  Composting and other organics processing  
          technologies, including anaerobic digestion, reduce GHGs by  
          avoiding the emissions that would be generated by the material's  








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          decomposition in a landfill.  Landfill gas is generated by the  
          decomposition of organic materials such as food, paper, wood,  
          and yard waste.  Fifty percent of landfill gas is methane, a GHG  
          that is 21 times more efficient at trapping heat than carbon  
          dioxide.  While most modern landfills have systems in place to  
          capture methane, significant amounts continue to escape into the  
          atmosphere.  According to ARB's GHG inventory, approximately 7  
          million tons of CO2 equivalent are released annually.  That  
          number is expected to increase to 8.5 million tons of CO2  
          equivalent by 2020.

           Landfill gas to energy and organics  .  Under legislation enacted  
          last year [AB 1900 (Gatto) and AB 2196 (Chesbro)], California  
          electricity generation from landfill biomethane is eligible for  
          renewable energy credit, which may increase the demand for  
          landfill biomethane.  While these bills may help the state  
          achieve its renewable energy goals, it is important to ensure  
          that they do not inadvertently impact the state's recycling  
          goals, as landfill gas is generated by the decomposition of  
          organic materials. 

           Related legislation  .  Two bills that will also be heard in the  
          Natural Resources Committee on April 29th provide additional  
          funding and incentives for organic waste processing.

          1)AB 1021 (Eggman) would make projects that use "recycled  
            feedstock" eligible for sales and use tax exclusions  
            authorized by the California Alternative Energy and Advanced  
            Transportation Financing Authority.

          2)AB 1023 (Eggman) would establish the Greenhouse Gas Reduction  
            through Recycling, Composting, and Recycled Content  
            Manufacturing Program, which would require CalRecycle to  
            develop incentives for waste reduction, recycling, composting,  
            and recycled content manufacturing projects that reduce GHG  
            emissions.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Biodegradable Products Institute
          Breathe California
          California Biomass Energy Alliance
          California Climate and Agriculture Network








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          California Coastal Protection Network
          California Compost Coalition
          California League of Conservation Voters
          California Resource Recovery Association
          Californians Against Waste
          Center for Biological Diversity
          City and County of San Francisco
          CleanWorld
          Coalition for Clean Air
          Environment California
          FEED Resource Recovery
          F.M. Booth Mechanical
          GAIA
          Green Sangha
          Greenaction for Health and Environmental Justice
          Harvest Power Inc.
          Humboldt Waste Management Authority
          Los Angeles Alliance for a New Economy
          Lyles Construction Group
          Marin County Hazardous and Solid Waste Management Joint Powers  
          Authority
          Napa Recycling and Waste Services
          Natural Resources Defense Council
          Northern California Recycling Association
          Otto Construction
          Peabody Engineering
          Peninsula Sanitary Service, Inc.
          Planning and Conservation League
          Recology, Inc.
          Regatta Solutions, Inc.
          Rethink Waste
          Sierra Club California
          Stanford Recycling Center Peninsula Sanitary Service, Inc.
          StopWaste.Org
          US Composting Council
          Vasko Electric
          Zanker

           Opposition 
           
          County Sanitation Districts of Los Angeles County
          Los Angeles County Solid Waste Management Committee/Integrated  
          Waste Management Task Force
           









                                                                 AB 323
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          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092