BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1045| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1045 Author: Irwin (D), et al. Amended: 8/17/15 in Senate Vote: 21 SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-0, 7/1/15 AYES: Wieckowski, Hill, Jackson, Leno, Pavley NO VOTE RECORDED: Gaines, Bates SENATE APPROPRIATIONS COMMITTEE: 5-1, 8/27/15 AYES: Lara, Beall, Hill, Leyva, Mendoza NOES: Nielsen NO VOTE RECORDED: Bates ASSEMBLY FLOOR: 62-2, 5/28/15 - See last page for vote SUBJECT: Organic waste: composting SOURCE: Author DIGEST: This bill requires 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 Recovery (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. ANALYSIS: Existing law, pursuant to the Integrated Waste Management Act of 1989 (Public Resources Code §40000 et seq.): AB 1045 Page 2 1) Establishes a statewide diversion goal of 75% by 2020. 2) Requires local agencies to divert, through source reduction, recycling, and composting, 50% of solid waste disposed by their jurisdictions. 3) 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. 4) Requires generators of specified amounts of organic waste (i.e., food waste and yard waste) to arrange for recycling services for that material. Existing law requires the ARB, under the California Global Warming Solutions Act of 2006 (commonly referred to as AB 32), to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020, and to adopt GHG emissions reductions measures by regulation. The ARB is authorized to include the use of market-based mechanisms to comply with these regulations. (Health and Safety Code §38500 et seq.). This bill: 1) States legislative findings and declarations regarding the state's recycling and composting policies and the environmental and agricultural benefits of compost development and application. 2) Requires CalEPA, in coordination with CalRecycle, SWRCB, ARB, and the Department of Food and Agriculture (CDFA), to develop and implement policies to aid in diverting organic waste from landfills. 3) Requires CalEPA, in developing these policies to promote a goal of five million metric tons of GHG emissions reductions. AB 1045 Page 3 4) Requires CalEPA to convene an Organic Waste Recycling Group, consisting of various state agencies, to ensure coordination of agency regulations and goals. Background 1) Statewide waste diversion goals. CalRecycle is tasked with diverting at least 75% of solid waste statewide by 2020. Currently, an estimated 35 million tons of waste are disposed of in California's landfills annually, of which 32% is compostable organic materials, 29% is construction and demolition debris, and 17% is paper. In addition, CalRecycle is charged with implementing Strategic Directive 6.1, which calls for reducing organic waste disposal by 50% by 2020. According to CalRecycle, significant gains in organic waste diversion (through recycling technologies or organic waste, including composting and anaerobic digestion) are necessary to meet the 75% goal and to implement Strategic Directive 6.1. 2) Recycling organic waste. For purposes of recycling, "organic waste" is defined as food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and food-soiled paper waste that is mixed in with food waste. Organic material, like food waste and yard waste, represents about one-third of the solid waste sent to landfills even though a large percentage can be recycled or composted. Recycling technologies for organic waste include composting, anaerobic digestion, and other types of processing that generate renewable fuels, energy, soil amendments, and mulch. Anaerobic digestion, which produces biogas that can be processed into biomethane fuel, is particularly suited to handle food waste. Green waste is more efficiently processed through composting. 3) What is compost? According to CalRecycle, compost is the controlled decomposition of organic material such as leaves, twigs, grass clippings and food scraps. A wide range of materials may be composted, but they must consist of principally organic components (i.e. carbon-containing AB 1045 Page 4 remnants or residues of life processes). Compost products may vary since the properties of any given compost depend on the nature of the original feedstock and the conditions under which it was decomposed. However, mature compost is normally dark brown in color and should have an even texture and an earthy aroma. Composting is a means of controlling and accelerating the decomposition process. An overabundance of soil organisms is responsible for transforming the organic matter in compost into carbon dioxide, water, humic substances (components of soil that affect physical and chemical properties and improve soil fertility) and energy in the form of heat. Most composting facilities use a thermophilic process, which breaks down the waste with heat-loving bacteria, and rely on high temperatures to meet pathogen reduction standards. Composting diverts organic materials out of landfills and turns it into a product that is useful for soil restoration. In addition to improving the quality of soil, compost prevents soil erosion, reduces the need for chemical fertilizers, herbicides, and pesticides, and enables better soil water retention. 4) Composting in California. According to CalRecycle, there are 181 composting facilities in the state. However, some of these facilities may not be involved in waste diversion (e.g. agricultural residuals, manure, and other material not destined for disposal). CalRecycle estimates that the top 30 compost facilities that take organics out of the waste stream handle approximately 80% of the material. Comments 1) Purpose of Bill. According to the author, "AB 1045 establishes a statewide policy to promote the use of compost by requiring state entities to work together to establish a coordinated effort for the development and deployment of compost in order to achieve multiple state goals." 2) Coordinating efforts. Multiple state agencies are involved with regulating composting. CalRecycle permits compostable AB 1045 Page 5 material handling operations and facilities. The ARB is the state agency charged with monitoring and regulating sources of emissions of GHGs that cause global warming in order to reduce emissions of GHGs. The CDFA annually inspects compost facilities selling to organic food producers for adherence to National Organic Program regulations. The SWRCB and the regional water quality control boards issue individual waste discharge requirements for larger composting facilities. This bill proposes to provide for improved state agency coordination of organic waste recycling efforts and development. Related/Prior Legislation AB 876 (McCarty) requires a county or regional agency to include in its annual report to CalRecycle specified information regarding organic waste recycling. AB 876 has been enrolled. AB 1826 (Chesbro, Chapter 727, Statutes of 2014) phased in requirements for generators of specified amounts of organic waste to arrange recycling services for that material beginning January 1, 2016, through January 1, 2019. AB 341 (Chesbro, Chapter 476, Statutes of 2011) required local businesses and multifamily residential dwellings of five or more units that generate more than four cubic yards of solid waste per week to separate recyclable materials from solid waste and subscribe to a basic level of recycling service that included collection, self-hauling, or other arrangements for the pickup of the recyclable materials or subscribe to a recycling service that may include mixed waste processing that yields diversion results comparable to source separation. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee: 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 the ARB on AB 1045 Page 6 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. Minor and absorbable costs to the CDFA and the SWRCB to coordinate with CalEPA and CalRecycle. SUPPORT: (Verified8/27/15) American Federation of State, County and Municipal Employees, AFL-CIO California Compost Coalition California League of Conservation Voters California Organics Recycling Council Californians Against Waste Carbon Cycle Institute City and County of San Francisco Department of the Environment City of Thousand Oaks Community Alliance with Family Farmers County of Ventura Humboldt Waste Management Authority Planning and Conservation League Republic Services, Inc. Rural County Representatives of California San Francisco Department of the Environment Stop Waste Waste Management West Marin Compost Coalition One individual OPPOSITION: (Verified8/27/15) None received ASSEMBLY FLOOR: 62-2, 5/28/15 AYES: Achadjian, Alejo, Baker, Bonilla, Bonta, Brown, Burke, AB 1045 Page 7 Calderon, Campos, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Roger Hernández, Holden, Irwin, Jones-Sawyer, Lackey, Levine, Linder, Lopez, Low, Maienschein, McCarty, Medina, Mullin, Nazarian, O'Donnell, Olsen, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Weber, Wilk, Williams, Wood, Atkins NOES: Travis Allen, Harper NO VOTE RECORDED: Bigelow, Bloom, Brough, Chang, Dahle, Beth Gaines, Grove, Jones, Kim, Mathis, Mayes, Melendez, Obernolte, Patterson, Wagner, Waldron Prepared by:Joanne Roy / E.Q. / (916) 651-4108 8/31/15 9:06:00 **** END ****