BILL ANALYSIS Ó
AB 901
Page 1
Date of Hearing: April 13, 2015
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
AB 901
(Gordon) - As Introduced February 26, 2015
SUBJECT: Solid waste: reporting requirements: enforcement
SUMMARY: Updates, revises, and expands the information
recycling and composting operations and facilities are required
to submit to the Department of Resources Recycling and Recovery
(CalRecycle).
EXISTING LAW, pursuant to the California Integrated Waste
Management Act (Act):
1)Establishes a state recycling goal of 75% by 2020 and requires
each local jurisdiction to divert 50% of solid waste from
landfill disposal.
2)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.
3)Requires generators of specified amounts of organic waste
(i.e., food waste and yard waste) to arrange for recycling
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services for that material.
4)Requires cities and counties to report specified information
to CalRecycle using the Disposal Reporting System (DRS), which
tracks the amount and origin of waste disposed in California
and sent from California to out-of-state landfills.
5)DRS information must be submitted by cities and counties at
least quarterly to CalRecycle.
6)Requires disposal facilities to report the origins and
tonnages of all material accepted at the facility to the
county in which it is located.
7)Requires recycling and composting facilities to submit
periodic information to counties on the origin, types, and
quantities of materials that are disposed of, sold to end
users, or that are sold out of state.
8)Requires each county to submit period reports to the relevant
cities, regional agencies, and CalRecycle on the origin and
amounts of waste disposed in the jurisdiction.
9)Grants CalRecycle regulatory authority to adopt practices and
procedures related to waste tracking in the state, as long as
the regulations do not impose an "unreasonable burden" on
waste handling, processing, or disposal operations.
THIS BILL:
1)Clarifies that recycling and composting operations, in
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addition to facilities, are required to submit periodic
information and requires that information be submitted to
CalRecycle, rather than counties. Authorizes CalRecycle to
provide this information to local jurisdictions upon request.
2)Repeals the requirement that counties provide recycling and
composting facility information to CalRecycle.
3)Establishes penalties for any person who refuses or fails to
submit waste tracking information required by law or
regulation of not less than $500 and not more than $5,000 per
violation.
4)Establishes penalties for any person who knowingly or
willfully files a false report, or any person who refuses to
permit CalRecycle to perform an inspection or examination of
records of not less than $500 and not more than $10,000 per
violation.
5)Authorizes cities and counties to be designated by CalRecycle
to enforce these provisions.
6)Requires that all reporting required by the bill or related
regulations be submitted electronically.
7)Authorizes CalRecycle or its designee to conduct audits,
perform site inspections, observe facility operations, and
otherwise investigate the recordkeeping and reporting.
8)Authorizes CalRecycle to issue an administrative complaint to
any person on whom civil liability may be imposed, as
specified, and specifies that existing formal adjudicative
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procedures apply for the imposition of administrative
penalties.
9)Requires that any penalties collected be deposited into the
Integrated Waste Management Account or retained by the city or
county that brought the action.
10)Makes related technical and clarifying changes.
FISCAL EFFECT: Unknown
COMMENTS:
1)This bill. According to the author:
With the passage of AB 341 (Chesbro), [Chapter 476,
Statutes of 2011], the Legislature directed CalRecycle to
achieve a statewide recycling goal of 75% by 2020. Moving
toward the more progressive 75% recycling goal will require
CalRecycle to successfully collect reliable waste flow
data.
The current absence of waste flow data enforcement
authority contributes to a widespread lack of compliance.
According to CalRecycle, 65% of 2013 DRS reports were late,
incomplete, or inaccurate. Inadequate waste flow data
comprises California's ability to make informed decisions
about how and where to allocate resources to achieve the
75% recycling goal.
Additionally, inaccurate reporting can defraud local
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jurisdictions and the state out of millions of dollars in
revenue and hinder the ability of local jurisdictions to
comply with their AB 939 (Act) requirements. Several
recent cases where disposal tonnages were misallocated
resulted in criminal action and involved millions of
dollars in fraud.
2)DRS. Existing law relating to disposal reporting, established
in 1992, is outdated. In 2007, CalRecycle implemented an
electronic DRS (eDRS), which simplified the process for
disposal facility operators, local governments, and
CalRecycle. Under the updated system, disposal facility
operators can update DRS directly on an ongoing basis.
Currently 22 counties report using eDRS, 30 continue to submit
paper reports, and 6 are not subject to reporting
requirements. This bill requires that all reports be
submitted using eDRS.
Existing law as it relates to reporting requirements for
recycling and composting facilities has been in effect since
1992; however, CalRecycle has never implemented the provision
that requires recycling facilities to report on the types and
quantities of materials that they accept. CalRecycle has
indicated that in order to achieve California's 75% recycling
goal and ensure compliance with organic waste recycling
requirements, it intends to begin implementing these
provisions. This bill updates and streamlines the existing
requirements to ease that process.
3)DRS enforcement. While all counties in which solid waste
facilities are located are required to submit DRS reports,
compliance is a significant issue. Currently 65% of DRS
reports received by CalRecycle are not properly filed. Just
under 30% (126 facilities) submitted their annual reports to
counties late in 2013, and 29 facilities never submitted their
2013 annual report and remain out of compliance.
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There have been a number of high profile violations over the
last several years. Earlier this year, four former employees
of the Ox Mountain Landfill in San Mateo County were charged
with grand theft of nearly $1.4 million. The employees
misclassified construction waste as green waste and illegally
collected fees on the material from landfill customers. The
defendants are also accused of misrepresenting the weight of
materials disposed of by certain customers and stealing the
difference between the amount they charged consumers and the
amount paid to the landfill.
In 2014, a jury ordered Recology (a waste management company) to
repay $1.3 million to San Francisco ratepayers for bonuses it
received in 2008 from the city for meeting recycling goals.
The jury found that the bonus was paid based on false
information provided by Recology to the city. This case is
currently pending appeal.
Also in 2014, the Kern County District Attorney filed suit
against Benz Sanitation for illegally disposing of solid waste
on property east of the company's Tehachapi recycling
facility. This case is pending. In 2012, Benz Sanitation was
fined $2.375 million for falsifying records. The company
collected residential and commercial solid waste from Los
Angeles County, created fraudulent documents showing that the
trash was generated in Kern County and disposed of the
material in Tehachapi Landfill in Kern County, thereby
avoiding disposal fees for either county.
In 2008, a number of employees of the Kirby Canyon Landfill in
San Jose were involved in a bribery scheme in which a waste
hauler, Resource Development Services, bribed the workers to
allow his trucks to pay reduced landfill fees. Six employees
were arrested, and five were fired but not charged. An
internal investigation found that Waste Management, the owner
of the landfill, lost more than $13 million in revenue.
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CalRecycle administers similar enforcement provisions in its
tire management program. CalRecycle is tasked with ensuring
the safe management of tires in California, including the
upkeep of a waste tire manifest system. The tire manifest
system has similar enforcement provisions to those in this
bill. CalRecycle is authorized to assess administrative
penalties of up to $10,000 a day for violations of hauling and
manifest requirements. According to CalRecycle, increased
administrative penalty authority has resulted in a consistent
decrease in violations since 2009.
4)Suggested amendment. The bill includes a drafting error that
references the former California Integrated Waste Management
Board, which was eliminated in 2006 and replaced by
CalRecycle. In order to maintain consistency in the bill and
avoid confusion, the committee may wish to amend the bill to
correct this reference.
REGISTERED SUPPORT / OPPOSITION:
Support
Californians Against Waste
Rural County Representatives of California
Opposition
None on file
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Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916)
319-2092