BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 876


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          ASSEMBLY THIRD READING


          AB  
          876 (McCarty)


          As Amended  June 1, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                  |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Natural         |7-2   |Williams, Cristina  |Dahle, Hadley         |
          |Resources       |      |Garcia, Harper,     |                      |
          |                |      |McCarty, Rendon,    |                      |
          |                |      |Mark Stone, Wood    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Appropriations  |12-5  |Gomez, Bonta,       |Bigelow, Chang,       |
          |                |      |Calderon, Daly,     |Gallagher, Jones,     |
          |                |      |Eggman,             |Wagner                |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |                |      |Eduardo Garcia,     |                      |
          |                |      |Gordon, Holden,     |                      |
          |                |      |Quirk, Rendon,      |                      |
          |                |      |Weber, Wood         |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
           ------------------------------------------------------------------- 


          SUMMARY:  This bill would require local governments to include  








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          organic waste recycling facilities in the existing planning  
          requirements for countywide solid waste management.  Specifically,  
          this bill:  


          1)Commencing August 1, 2017, requires a county or regional agency  
            to include in its annual report to the Department of Resources  
            Recycling and Recovery (CalRecycle) the following information: 


             a)   An estimate of the amount of organic waste that will be  
               generated by the county over a 15-year period; 


             b)   An estimate of the additional organic waste recycling  
               facility capacity that will be needed to process the organic  
               waste generated; and,


             c)   Areas identified by the county or regional agency as  
               location for new or expanded organic waste recycling  
               facilities capable of safely handling the material. 


          2)States that if the Commission on State Mandates determines that  
            this bill contains costs mandated by the state, reimbursement to  
            local agencies shall be made by the state.  


          EXISTING LAW, pursuant to the Integrated Waste Management Act of  
          1989:


          1)Requires local agencies to divert, through source reduction,  
            recycling, and composting, 50% of solid waste disposed by their  
            jurisdictions.  
          2)Establishes a statewide diversion goal of 75% by 2020.  










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          3)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.


          4)Requires generators of specified amounts of organic waste (i.e.,  
            food waste and yard waste) to arrange for recycling services for  
            that material. 


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill has the following costs: 


          1)Increased initial implementation costs of approximately $380,000  
            annually for two years for CalRecyle to advise counties, verify  
            and approve siting elements, and enforce the new requirements.


          2)Ongoing costs to CalRecyle of approximately $200,000 annually.


          3)Potential state costs for local reimbursement in the hundreds of  
            thousands of dollars range if this bill is determined to be a  
            reimbursable state-mandate.


          COMMENTS:  CalRecycle is tasked with diverting at least 75% of  
          solid waste statewide by 2020.  Organic materials make up  
          one-third of the waste stream and food continues to be the  
          greatest single item disposed, making up over 15% of materials  
          landfilled.  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  








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          fuels, energy, soil amendments, and mulch.  


          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 decreasing runoff.


          According to ARB, a total reduction of 80 million metric tons  
          (MMT), or 16% compared to business as usual, is necessary to  
          reduce statewide greenhouse gas (GHG) emissions to 1990 levels by  
          2020.  ARB intends to achieve approximately 78% of the reductions  
          through direct regulations.  The Air Resources Board (ARB)  
          proposes to achieve the balance of reductions necessary to meet  
          the 2020 limit (approximately 18 MMT) through its 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.   
          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 7  
          million tons of carbon dioxide (CO2) equivalent are released  
          annually by landfills.  That number is expected to increase to 8.5  
          million tons of CO2 equivalent by 2020.


          While the Legislature has taken significant steps to ensure that  
          organic waste is recycled, local efforts are essential to  








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          implement the state requirements.  This bill facilitates local  
          planning by requiring counties and regional agencies to plan for  
          15-years of organic waste recycling capacity.  




          Analysis Prepared by:                                               
                          Elizabeth MacMillan / NAT. RES. / (916) 319-2092    
                                                                      FN:  
          0000728