Amended in Assembly May 8, 2013

Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1023

Introduced by Assembly Member Eggman

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(Coauthor: Assembly Member Chesbro)

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February 22, 2013

An act to add Chapter 4.2 (commencing with Section 39724) to Part 2 of Division 26 of the Health and Safety Code, relating to air resources.

LEGISLATIVE COUNSEL’S DIGEST

AB 1023, as amended, Eggman. Air resources: greenhouse gas emissions.

Existing law, the California Global Warming Solutions Act of 2006, requires the State Air Resources Board to adopt a statewide greenhouse gas emissions limit. Existing law requires the California Environmental Protection Agency to identify disadvantaged communities and requires the Department of Finance to develop a specified 3-year investment plan for the expenditure of funds in the Greenhouse Gas Reduction Fund in the State Treasury to achieve reductions of greenhouse gas emissions, including increased in-state waste diversion through waste reduction, diversion, and reuse.

This bill would enact the Greenhouse Gas Reduction begin delete through end delete begin insert Through end insert Recycling, Composting, and Recycled Content Manufacturing Investment Program and would require the Department of Resources Recycling and Recovery to implement the program begin insert , including developing standards and guidelines and implementing the market development program required by the bill, end insert by expending funds appropriated by the Legislature for purposes of the program.

The bill would require the department, in consultation with the board, to annually identify industry sectors that can reduce their greenhouse gas emissions through the increased use of recycled content or by recovering putrescible materials that would have emitted greenhouse gases if disposed. The bill would require the department to develop a market development program that would provide incentives for those eligible industry sectors to make investments for waste reduction, recycling, composting, and recycled manufacturing projects that would reduce greenhouse gas emissions. The bill would require the department to implement the market development program by disbursing funds to private or public entities in the form of incentive payments or grants for capital equipment.

The bill would require the department to give priority, when disbursing funds, to projects benefiting or located in disadvantaged communities, as specified.

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The bill would state the intent of the Legislature regarding the appropriation of funds for purposes of the program.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) Recycling is one of the most cost-effective ways to reduce
greenhouse gases, and often ranks as “cost-negative” in analyses
evaluating cost effectiveness of various greenhouse gas reduction
strategies.

(b) Investing in the burgeoning anaerobic digestion industry
reduces emissions from landfills, creates a low-carbon fuel that
reduces emissions in the transportation sector, and generates
renewable energy.

(c) In addition to reducing landfill emission, the application of
compost saves .42 net tons of CO₂ for each ton composted through
soil carbon storage, and decreases water use, fertilizer use, and
soil erosion, according to data prepared by the State Air Resources
Board.

(d) The State Air Resources Board has identified California’s
energy-intensive glass container manufacturing sector as a leading
generator of greenhouse gas emissions and has included this sector
as a “covered entity” under the “Cap and Trade Program” adopted
pursuant to the market-based compliance mechanism authorized
by Division 25 (commencing with Section 38500) of the Health
and Safety Code.

(e) According to data from the United States Environmental
Protection Agency, for every 1 percent increase in recycled content
in the manufacture of new glass containers, there is an approximate
1 percent decrease in total direct greenhouse gas emissions from
the manufacturer and there is also a comparable upstream benefit
that results from not having to engage in mining or processing
virgin inputs.

(f) According to a recent study from the Tellus Institute, the
collection and processing of recyclables generates nearly four
times as many jobs as compared to disposal, and domestic recycled
content processing and manufacturing of these recycled materials
adds an additional 2.5 to 18 jobs for every 1,000 tons recycled.

SEC. 2.  

Chapter 4.2 (commencing with Section 39724) is added
to Part 2 of Division 26 of the Health and Safety Code, to read:

 

Chapter  4.2. Greenhouse Gas Reduction begin delete through end delete
begin insert Through end insert Recycling, Composting, and Recycled Content
Manufacturing Investment Program

 

39724.  

(a) This chapter shall be known, and may be cited, as
the “Greenhouse Gas Reduction begin delete through end delete begin insert Through end insert Recycling,
Composting, and Recycled Content Manufacturing Investment
Program.”

(b) For purposes of this chapter “department” means the
Department of Resources Recycling and Recovery.

39725.  

(a) The department shall implement this chapter begin insert ,
including developing standards and guidelines and implementing
the market development program required by Section 39726, end insert by
expending funds appropriated by the Legislature for purposes of
this chapter.

(b) The department, in coordination with the state board, as
appropriate, shall establish the Greenhouse Gas Reduction through
Recycling, Composting, and Recycled Content Manufacturing
Investment Program pursuant to this chapter to provide incentives
or grants for waste reduction, recycling, composting, and recycled
content manufacturing projects that reduce greenhouse gas
emissions in this state.

39726.  

(a) The department, in consultation with the state board,
shall annually identify industry sectors that can reduce their
greenhouse gas emissions through the increased use of recycled
content or by recovering putrescible materials that would have
emitted greenhouse gases if disposed.

(b) The eligible industry sectors that the department may identify
pursuant to subdivision (a) may include, but are not limited to, all
of the following:

(1) Composting and anaerobic digestion.

(2) Recycled container glass manufacturing.

(3) Food processing.

(4) Recycled paper and paperboard manufacturing.

(5) Recycled plastic manufacturing.

(c) Upon identifying the eligible industry sectors pursuant to
subdivision (a), the department shall develop a market development
program that would provide incentives for those eligible industry
sectors to make investments for waste reduction, recycling,
composting, and recycled content manufacturing projects that
would reduce greenhouse gas emissions.

(d) The department shall implement the market development
program by disbursing funds to private or public entities in the
form of incentive payments or grants for capital equipment.

(e) The funds disbursed as investments by the department
pursuant to subdivision (d) shall not exceed thirty million dollars
($30,000,000) per year.

(f) The department shall give priority, when disbursing funds
for investments pursuant to this chapter, to projects benefiting or
located within the same disadvantaged communities that are
identified by the California Environmental Protection Agency
pursuant to Section 39711, for purposes of Chapter 4.1
(commencing with Section 39710). The department shall disburse
not less than 25 percent of the funds disbursed pursuant to this
chapter for projects benefiting these communities and not less than
10 percent of the funds disbursed pursuant to this chapter shall be
allocated for projects located within these communities.

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begin insert 39727. end insert   

It is the intent of the Legislature that moneys shall be
appropriated for this chapter only in a manner consistent with the
requirements of this part, including Chapter 4.1 (commencing with
Section 39710), and Article 9.7 (commencing with Section 16428.8)
of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government
Code.

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