BILL ANALYSIS Ó AB 1594 Page 1 Date of Hearing: May 21, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 1594 (Williams) - As Amended: May 7, 2014 Policy Committee: Natural ResourcesVote:5-3 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill specifies that green material used as alternative daily cover (ADC) at a landfill beginning in 2020 does not constitute diversion and instead is considered disposal. This bill allows CalRecycle to grant two-year extensions to individual cities and counties unable to meet diversion requirements. FISCAL EFFECT 1)Increased annual costs to CalRecyle of approximately $250,000 a year for two years (Integrated Waste Management Fund) to administer extension applications and provide technical assistance. 2)Ongoing compliance costs of approximately $150,000 per year (Integrated Waste Management Fund). By changing alternative daily cover from a beneficial use to disposal, CalRecycle will be able to charge the Integrated Waste Management fee (tipping fee) on green waste. The tipping fee is set at $1.40 per ton and it is estimated that about 1.6 million tons of green waste is currently used as ADC. To the extent landfill operators continue using green waste as ADC and pay the tipping fee as required, some or all of the costs may be offset by increased fee revenue. COMMENTS 1)Purpose. According to the author, eliminating the practice of allowing the use of green material for landfill cover and AB 1594 Page 2 counting this material toward diversion requirements will help California create jobs and meet its environmental goals. 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. 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. Landfill gas is generated by the decomposition of organic materials such as food, paper, wood, and green material. 3)Landfill Cover. Landfill operators are required to cover all solid waste at the end of each day to control odors, vectors, fire, litter and scavenging. Federal regulations require that cover consist of six inches of earthen materials, but also permit operators to use alternative measures, generally referred to as ADC. Specific types of ADC authorized in California include: geosynthetic fabric (tarps); sewage sludge; ash and cement kiln dust; treated auto shredder waste (auto fluff); foam products; contaminated sediment, dredge soils, foundry sands; energy exploration and production waste; compost materials; processed construction and demolition waste; shredded tires; spray-applied cementitious products; and, green materials. Under this bill, green material would be the only landfill cover for which the tipping fee is charged. Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081