BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1045 (Irwin) - Organic waste: composting.
          
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          |Version: August 17, 2015        |Policy Vote: E.Q. 5 - 0         |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 17, 2015   |Consultant: Marie Liu           |
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          This bill meets the criteria for referral to the Suspense File. 


          Bill  
          Summary:  AB 1045 would require the California Environmental  
          Protection Agency (CalEPA) to promote the use of agricultural,  
          forestry, and urban organic waste as a feedstock for compost and  
          to promote the use of that feedstock. This bill would also  
          direct the Department of Resources Recycling and Recover  
          (CalRecycle) to coordinate with the State Air Resources Board  
          (ARB) and the State Water Resources Control Board (SWRCB) to  
          coordinate permitting and regulation of composting facilities.


          Fiscal  
          Impact:  
           Cost pressures up to $130,000 annually from the Integrated  
            Waste Management Fund (special fund) for CalRecycle to promote  
            the creation and use of compost, participate in the working  
            group, and to coordinate with the SWRCB and ARB on permitting.
           Cost pressures up to $175,000 annually (special) for the ARB  
            to participate in the working group and to develop coordinated  
            permitting and regulation of composting facilities.







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           Minor and absorbable costs to CDFA and the SWRCB to coordinate  
            with CalEPA and CalRecycle.


          Background:  The California Integrated Waste Management Act (PRC §40000 et  
          seq.) requires that each local jurisdiction divert at least 50%  
          of solid waste generated from landfill disposal through source  
          reduction, recycling, and composting. It is the state goal to  
          increase the diversion rate to 75% by 2020. The act also  
          requires generators of specified amounts of organic waste to  
          arrange for recycling services for that material.
          The California Global Warming Solutions Act of 2006 (referred to  
          as AB 32, HSC §38500 et seq.) requires the California Air  
          Resources Board (ARB) to determine the 1990 statewide greenhouse  
          gas (GHG) emissions level, to approve a statewide GHG emissions  
          limit equivalent to that level that will be achieved by 2020,  
          and to adopt GHG emissions reductions measures by regulation.


          Existing law also requires the ARB to develop a comprehensive  
          strategy to reduce emissions of short-lived climate pollutants  
          (SLCPs) in the state. SLCPs are defined in HSC §39730 as an  
          agent that has a relatively short lifetime in the atmosphere,  
          from a few days to a few decades, and a warming influence on the  
          climate that is more potent than carbon dioxide. Examples of  
          SLCPs listed on ARB's webpage include black carbon, methane, and  
          fluorinated gases. One of the sources of methane is the  
          decomposition of organic materials in anaerobic conditions, such  
          as landfills. Thus, increased diversions of organic materials  
          from landfills can result reduced methane emissions. 




          Proposed Law:  
            This bill would require CalEPA to coordinate with CalRecycle,  
          the SWRCB, ARB, and CDFA, to develop and implement policies to  
          promote the use of agricultural, forestry, and urban organic  
          waste as a feedstock for compost and the appropriate use of that  
          compost for the purposes of aiding in the diversion of organics  
          from landfills. This policy would be required to have a goal of  
          reducing at least five metric tons of greenhouse gas (GHG)  
          emissions annually through the development and application of  
          compost on working lands.








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          This bill would also require CalEPA to convene the Organic Waste  
          Recycling Group consisting of CalRecycle, SWRCB, ARB, and CDFA  
          for the purpose of coordinating agency regulations and  
          increasing the development and application of compost on working  
          lands.


          This bill directs CalRecycle, in coordinate with the ARB and the  
          SWRCB, to develop a policy that promotes the development of  
          coordinating permitting and regulation of composting facilities  
          while protecting the environment.




          Staff  
          Comments:  CalEPA activities required under this bill are  
          consistent with SB 1826 (Chesbro) Chapter 727, Statutes of 2014  
          which requires generators of specific amounts of organic waste  
          to phase in recycling services. As such, CalEPA anticipates that  
          the costs associated with implementing this bill are minor and  
          absorbable.
          CalRecycle notes that it currently works with both the SWRCB and  
          the ARB on composting policies. However, CalRecycle believes the  
          passage of this bill may result in pressures to increase its  
          efforts. As such, CalRecycle may have cost pressures of up to  
          $130,000 annually for an additional position.


          ARB similarly notes anticipated costs of $175,000 annually for  
          additional workload, particularly in regards to the provision  
          that would require the ARB to coordinate with CalRecycle to  
          develop a policy that promotes the development of coordinated  
          permitting. ARB anticipates that this effort will involve the  
          need for ARB to develop methods to quantify the reduction of  
          methane and criterial pollutant emissions resulting from organic  
          waste recycling and processing strategies. ARB also assumes it  
          would need to work closely with local air districts on  
          permitting issues associated with compost operations. Staff  
          notes that the bill only requires the development of a policy  
          that promotes the development of coordinated permitting, not the  
          development of the combined permit itself. As such, ARB's costs  
          can be viewed as cost pressures.









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