BILL ANALYSIS Ó AB 876 Page 1 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 AB 876 Page 2 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. AB 876 Page 3 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 AB 876 Page 4 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 AB 876 Page 5 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