BILL ANALYSIS Ó AB 1045 Page 1 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: AB 1045 Page 2 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. AB 1045 Page 3 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. AB 1045 Page 4 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 AB 1045 Page 5