BILL ANALYSIS Ó AB 1045 Page 1 Date of Hearing: April 29, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1045 (Irwin) - As Amended April 20, 2015 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|6 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the California Environmental Protection Agency (CalEPA) to establish policies to encourage recycling of organic waste, and to coordinate the oversight and regulation of AB 1045 Page 2 organic waste recycling facilities. Specifically, this bill: 1)Requires CalEPA to coordinate with CalRecycle, to develop and implement policies to divert organic waste from landfills by promoting the use of agricultural, forestry, and urban organic waste as feedstock for compost and by promoting the appropriate use of that compost throughout the state. 2)Requires CalEPA to work with California Department of Food and Agriculture (CDFA) to establish policies to reduce at least five million metric tons of greenhouse gas (GHG) emissions per year through the development and application of compost on working lands, as specified 3) Requires CalEPA to convene CalRecycle, the State Water Resources Control Board (SWRCB), and the Air Resources Board (ARB) to ensure proper coordination of agency regulations and goals. FISCAL EFFECT: 1)Potential increased costs of less than $150,000 for CalRecycle to develop and implement policies to divert organic waste. 2)Absorbable costs for CalEPA to coordinate and implement the requirements of the bill, through its Interagency Workgroup on Composting 3)Absorbable costs for SWRCB, ARB and CDFA. COMMENTS: AB 1045 Page 3 1)Purpose. According to the author, there are multiple agencies involved in the policy making regarding the feedstock, transportation, development, and ultimate usage of compost. This bill establishes a statewide policy to promote the development and deployment of compost to help agriculture and the rural economy, meet the state's diversion goals and reduce greenhouse gas (GHG) emissions. 2)Background. Three entities within CalEPA are involved in regulating compost facilities. ARB and local air districts oversee air emissions, SWRCB and regional water quality control boards regulate wastewater discharges and CalRecycle requires compost facilities to be permitted and regulates general facility operations. According to CalEPA, the Interagency Workgroup on Composting was established to achieve the reduction of at least five million metric tons of GHG emissions per year through the development of compost on working lands. This bill will ensure CalEPA coordinates among its boards and commissions and with CDFA to achieve these goals. 3)Organic Waste and GHG Emissions. 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. AB 1045 Page 4 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 CO2 equivalent are released annually by landfills. That number is expected to increase to 8.5 million tons of CO2 equivalent by 2020. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081