BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1826
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1826 (Chesbro)
          As Amended  August 6, 2014
          Majority vote 
           
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          |ASSEMBLY:  |54-22|(May 15, 2014)  |SENATE: |23-12|(August 11,    |
          |           |     |                |        |     |2014)          |
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           Original Committee Reference:    NAT. RES.  
           
          SUMMARY  :  Phases in requirements for generators of specified  
          amounts of organic waste to arrange recycling services for that  
          material beginning January 1, 2016, through January 1, 2019. 

           The Senate amendments  : 

          1)Include "food soiled paper waste" that is mixed in with food  
            waste in the definition of "organic waste."  

          2)Define "rural jurisdiction" as a jurisdiction located within a  
            rural county, and define "rural county" as a county with a  
            total population below 70,000.  

          3)Change the implementation date for generators from January 1,  
            2016, to April 1, 2016.  

          4)Revise the threshold for the 2019 requirement from one cubic  
            yard of organic waste to four cubic yards of solid waste.   
            Authorizes CalRecycle to reduce the threshold to two cubic  
            yards of solid waste on or after January 1, 2020, if it  
            determines that statewide disposal of organic waste has not  
            been reduced by 50%.  

          5)Authorize rural counties opt out of this bill's requirements,  
            as specified.  

          6)Clarify the compliance mechanisms available to commercial  
            generators of organic waste.  

          7)Specify that a business may contract for organic waste  
            recycling services that are not offered through a local  
            franchise agreement for solid waste.  









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          8)Make clarifying changes to the local plan requirements.  

          9)For purposes of the local plan requirements only, define  
            "organic waste recycling facility" as compost facilities and  
            other facilities that recycle organic waste.  

          10)Authorize local jurisdictions to exempt businesses (or groups  
            of businesses) that generate less than one-half of a cubic  
            yard of organic waste per week.  

          11)Authorize local jurisdictions to exempt businesses (or groups  
            of businesses) that generate less than one cubic yard of  
            organic waste per week, if the local jurisdiction provides  
            specified information to CalRecycle.  Specifies that  
            exemptions issues under this provision will become inoperative  
            if CalRecycle determines on or after January 1, 2020, that  
            statewide disposal of organic waste has not been reduced by  
            50%.  

          12)Specify that nothing in this bill modifies, limits, or  
            abrogates the authority of a local jurisdiction with respect  
            to land use, zoning, or facility siting decisions.  

          13)Require CalRecycle to post state financing mechanisms and  
            incentives that are available for the in-state development of  
            organic waste infrastructure. 

          14)Remove the requirement for CalRecycle to provide "incentives"  
            for organic waste recycling.  

          15)Make related technical and clarifying changes.  

           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  








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               and requires local governments to implement commercial  
               solid waste recycling programs designed to divert solid  
               waste from businesses. 

          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 Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.  
           

           COMMENTS  :  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."

          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 runoff.

          Recycling organic materials also creates local jobs.  According  








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          to CalRecycle, composting creates an average of four jobs for  
          every 1,000 tons of material, approximately four times more than  
          landfilling.

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

          The 2014-15 Budget allocates $20 million from cap-and-trade  
          revenue for CalRecycle to support projects designed to increase  
          organic waste recycling.  CalRecycle is currently reviewing  
          grant applications for this funding.  
           

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


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