BILL ANALYSIS Ó AB 1826 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1826 (Chesbro) As Amended August 6, 2014 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |54-22|(May 15, 2014) |SENATE: |23-12|(August 11, | | | | | | |2014) | ----------------------------------------------------------------- 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. AB 1826 Page 2 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 AB 1826 Page 3 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 AB 1826 Page 4 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 FN: 0004485 AB 1826 Page 5