BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 1045|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  AB 1045
          Author:   Irwin (D), et al.
          Amended:  9/4/15 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.
          
          Senate Floor Amendments of 9/4/15 address potential Bagley-Keene  
          meeting issues by deleting the formal establishment of the  
          Organic Waste Recycling Group, and add a sunset date of January  








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          1, 2021.

          ANALYSIS:   Existing law, pursuant to the Integrated Waste  
          Management Act of 1989 (Public Resources Code §40000 et seq.):

          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  







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            goal of five million metric tons of GHG emissions reductions.

          4)Requires CalEPA and various state agencies to coordinate  
            efforts, regulations, and goals related to organic waste  
            processing and recycling.

          5)Sunsets the provisions of this bill on January 1, 2021.

          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  







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            materials may be composted, but they must consist of  
            principally organic components (i.e. carbon-containing  
            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  







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            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, 2015) 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  
            permitting.








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           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:   (Verified9/4/15)


          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:   (Verified9/4/15)


          None received

          ASSEMBLY FLOOR:  62-2, 5/28/15
          AYES:  Achadjian, Alejo, Baker, Bonilla, Bonta, Brown, Burke,  
            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,  







                                                                    AB 1045  
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            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
          9/8/15 14:55:32


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