BILL ANALYSIS Ó AB 1826 Page 1 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 AB 1826 Page 2 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. AB 1826 Page 3 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 AB 1826 Page 4 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 AB 1826 Page 5 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 FN: 0003348