BILL ANALYSIS Ó AB 323 Page 1 Date of Hearing: May 24, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 323 (Chesbro) - As Introduced: February 12, 2013 Policy Committee: Natural ResourcesVote:6-3 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill requires CalRecyle to phase-out recycling credit for green waste used in the operation of a landfill. Specifically, this bill requires CalRecycle to: 1)Adopt regulations by January 1, 2020 to 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 as specified. 2)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. 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 as specified. 3)Adopt regulations by January 1, 2017 that would require a large-quantity commercial organics generator to arrange for separate organics collection and recycling services. FISCAL EFFECT 1)One-time cost to CalRecyle of approximately $250,000 from the Integrated Waste Management Fund to adopt regulations to specify that the use of green material as specified is not a waste diversion. AB 323 Page 2 By changing alternative daily cover from a beneficial use to disposal, CalRecycle will be able to charge the tipping fee on green waste. The current tipping fee is set at $1.40 per ton Currently, about 1.7 million tons of green waste is used as ADC and 6 thousand tons of green waste is used as AIC. 2)One-time cost to CalRecycle of about $250,000 from the Integrated Waste Management Fund to adopt regulations requiring a large-quantity commercial organics generator to arrange for separate collection and recycling services. 3)One-time costs of $100,000 per year for two-years to conduct the analysis to determine if residual fines from material recovery or composting facilities can be used for alternative daily cover. COMMENTS 1)Purpose. This bill is intended help achieve the state's air quality, GHG, and waste reduction goals by diverting organic materials from landfills. According to the author, 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 decomposition in a landfill. 2)Background. CalRecycle is tasked with diverting at least 75% 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% of disposal. Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081 AB 323 Page 3