BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1826
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          ASSEMBLY THIRD READING
          AB 1826 (Chesbro)
          As Amended  April 22, 2014
          Majority vote 

           NATURAL RESOURCES          5-2  APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Garcia,          |Ayes:|Gatto, Bocanegra,         |
          |     |Muratsuchi, Stone,        |     |Bradford,                 |
          |     |Williams                  |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Dahle, Patterson          |Nays:|Bigelow, Donnelly, Jones, |
          |     |                          |     |Linder, Wagner            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires generators of specified amounts of organic  
          waste to arrange recycling services for that material.   
          Specifically,  this bill  :  

          1)Requires businesses that generate organic waste to arrange for  
            recycling services for that material on the following  
            schedule:  

             a)   On and after January 1, 2016, a business that generates  
               eight cubic yards or more of organic waste per week; 

             b)   On and after January 1, 2017, a business that generates  
               four cubic yards of organic waste per week; and, 

             c)   On and after January 1, 2019, a business that generates  
               one cubic yard or more of organic waste per week.  

          2)Exempts multifamily dwellings of fewer than five units from  
            the requirements of this bill and specifies that food waste  
            generated by multifamily dwellings of five or more units is  
            not subject to the bill's requirements.  

          3)On and after January 1, 2016, requires each local jurisdiction  
            to implement an organic waste recycling program that is  








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            appropriate for the jurisdiction and designed to divert  
            organic waste generated by businesses.  Specifies that local  
            jurisdictions that have an organic waste recycling program in  
            place prior to January 1, 2016, do not have to implement a new  
            or expanded program.  Authorizes local jurisdictions to exempt  
            businesses from the requirements of the bill on a case-by-case  
            basis for specified reasons.  

          4)Requires local jurisdictions to include specified information  
            relating to the organic waste recycling program in each  
            jurisdiction's annual report to the Department of Resources  
            Recycling and Recovery (CalRecycle).  

          5)Specifies that the bill does not limit the authority of a  
            local jurisdiction to adopt requirements that are more  
            stringent than the bill and clarifies that the bill does not  
            modify, limit, or abrogate solid waste franchises, local solid  
            waste collection contracts, or the existing right of a  
            business to sell or donate its recyclable materials.  

          6)Requires CalRecycle to identify and recommend actions to  
            address state and federal permitting and siting challenges and  
            to encourage the continued viability of the state's organic  
            waste processing and recycling infrastructure.  Requires  
            CalRecycle to cooperate with local government agencies and the  
            solid waste industry to provide assistance and incentives for  
            increasing the feasibility of organic waste recycling.  

           EXISTING LAW  : 

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

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

             b)   Requires each local jurisdiction to divert 50% 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. 








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          2)Establishes the California Global Warming Solutions Act of  
            2006 (AB 32 (Núñez), Chapter 488, Statutes of 2006), 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.
           
          FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, this bill has minor and absorbable costs for  
          CalRecycle to recommend actions and provide assistance.

           COMMENTS  :  

          1)This bill.  According to the author, "AB 1826 will help  
            California achieve the state's air quality, GHG, and waste  
            reduction goals by diverting organic materials from  
            landfills."

          2)Meeting the state's recycling goals.  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.  CalRecycle is also charged  
            with implementing its Strategic Directive 6.1, which calls for  
            reducing organic waste disposal by 50% by 2020.  According to  
            CalRecycle, significant gains in organic waste diversion are  
            necessary to meet the 75% goal and 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.  Other states have taken similar  
            actions, and 23 have banned the disposal of green waste (i.e.,  
            yard trimmings and landscape waste) in landfills.  

            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  








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            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.

          3)Waste reduction and GHGs.  The US National Climate Assessment  
            (Assessment), released May 6th, emphasizes the need for  
            "urgent action" to combat climate change.  According to the  
            Assessment, California can expect increasing drought and  
            hotter temperatures, making it more vulnerable to wildfires  
            and increasing competition for scarce water supplies.  Coastal  
            areas are going to be increasingly vulnerable to higher sea  
            levels and storm surges.  

            ARB had indicated that a total reduction of 80 million metric  
            tons (MMT), or 16% compared to business as usual, is necessary  
            to reduce statewide GHG emissions to 1990 levels by 2020.  ARB  
            intends to achieve approximately 78% of the reductions through  
            direct regulations.  The balance of reductions necessary to  
            meet the 2020 limit (approximately 18 MMT) will be  
            accomplished through the state's cap-and-trade program.

            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 yard waste.  Fifty percent of landfill  
            gas is methane, a GHG that is 21 times more efficient at  
            trapping heat than carbon dioxide (CO2).  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 seven million  
            tons of CO2 equivalent are released annually by landfills.   
            That number is expected to increase to 8.5 million tons of CO2  
            equivalent by 2020.

            The 2012-13 Budget Act authorized the Department of Finance 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.  ARB's  








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            draft three-year investment plan for cap-and-trade revenues  
            includes waste diversion as a funding priority.

            The Governor's 2014-15 Budget proposal for cap-and -trade  
            revenues, the Cap-and-Trade Auction Revenue Expenditure Plan,  
            requests $30 million for each of the next two years for  
            CalRecycle to support projects designed to increase recycling  
            and composting.  The proposal includes $20 million for grants  
            to expand existing or develop new facilities that process  
            organic or recyclable materials.  
           

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


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