BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1045


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          ASSEMBLY THIRD READING


          AB  
          1045 (Irwin)


          As Amended  April 20, 2015


          Majority vote


           --------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                  |Noes                  |
          |----------------+------+----------------------+----------------------|
          |Natural         |6-0   |Williams, Cristina    |                      |
          |Resources       |      |Garcia, McCarty,      |                      |
          |                |      |Rendon, Mark Stone,   |                      |
          |                |      |Wood                  |                      |
          |                |      |                      |                      |
          |----------------+------+----------------------+----------------------|
          |Appropriations  |12-0  |Gomez, Bloom, Bonta,  |                      |
          |                |      |Calderon, Daly,       |                      |
          |                |      |Eggman, Eduardo       |                      |
          |                |      |Garcia, Holden,       |                      |
          |                |      |Quirk, Rendon, Weber, |                      |
          |                |      |Wood                  |                      |
          |                |      |                      |                      |
          |                |      |                      |                      |
           --------------------------------------------------------------------- 


          SUMMARY:  Requires the California Environmental Protection Agency  
          (CalEPA) to establish policies to encourage recycling of organic  
          waste and coordinate the oversight and regulation of organic waste  
          recycling facilities.  Specifically, this bill: 










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          1)Requires CalEPA, in coordination with the Department of  
            Resources Recycling and Recovery (CalRecycle), to develop and  
            implement policies to aid in diverting 50% of organic waste from  
            landfills by 2020 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)Establishes, and requires CalEPA to establish policies that  
            promote, a goal of reducing 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.   
            Authorizes CalEPA to work with the California Department of Food  
            and Agriculture (CDFA) to achieve this goal.  


          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 to implement this section.  


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee: 


          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.










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          COMMENTS:  According to the author, this bill "establishes a  
          statewide policy to promote the development and deployment of  
          compost? AB 1045 identifies the need for the state to look at  
          compost as a valuable resource, one that helps agriculture and the  
          rural economy, and also reduces GHG emissions and helps our state  
          meet its waste diversion goals."  


          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 highest single item  
          disposed at 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 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 and 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 GHG emissions to 1990 levels by 2020.  ARB  
          intends to achieve approximately 78% of the reductions through  
          direct regulations.  ARB proposes to achieve the balance of  
          reductions necessary to meet the 2020 limit (approximately 18 MMT)  
          through its cap-and-trade program.










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          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 34 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 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.
          Three of CalEPA's entities are involved in regulating compost  
          facilities.  ARB and local air districts oversee air emissions.   
          For example, the South Coast Air Quality Management District  
          requires that all new compost facilities located within its  
          jurisdiction to be fully enclosed and meet specified requirements  
          for emissions for any vented emissions.  SWRCB and regional water  
          quality control boards regulate wastewater discharges and recently  
          adopted general waste discharge requirements for composting  
          operations that include, among other requirements, no storm water  
          runoff from the site.  CalRecycle requires that compost facilities  
          are permitted and regulates general facility operations.  


          While all of these entities are acting appropriately within their  
          jurisdiction, there is little coordination between them to ensure  
          that the requirements are consistent with the overall waste  
          reduction and GHG emissions reduction goals of the state.  This  
          bill would require CalEPA to ensure coordination among its boards  
          and departments.  


          Analysis Prepared by:                             Elizabeth  
          MacMillan / NAT. RES. / (916) 319-2092                 FN: 0000247










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