Amended in Senate July 15, 2015

Amended in Assembly April 20, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1063

Introduced by Assembly Member Williams

February 26, 2015

An act to begin insert amend Sections 48001 and 48004 of, to amend, repeal, and add Section 48000 of, and to end insert add begin insert and repeal end insert Section 48000.1 begin delete to end delete begin insert of, end insert the Public Resources Code, relating to solid begin delete waste. end delete begin insert waste, and declaring the urgency thereof, to take effect immediately. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1063, as amended, Williams. Solid waste: begin delete disposal facility: fees. end delete begin insert charges. end insert

begin delete

Existing

end delete

begin insert (1) end insert begin insert   end insert begin insert Existing end insert law requires the operator of a disposal facility to pay to the State Board of Equalization a fee based on the amount of all solid waste disposed of at each disposal site. The act requires the Department of Resources Recycling and Recovery to establish the amount of the fee, as specified, and limits the fee to a maximum of $1.40 per ton. begin insert Existing law requires the moneys collected from the fee to be deposited in the Integrated Waste Management Account and to be used by the department, upon appropriation, for specified purposes. end insert

begin insert

This bill would raise the fee imposed on an operator of a disposal facility from a maximum of $1.40 per ton to $5 per ton between January 1, 2017, and January 1, 2022, inclusive, and to $3.50 per ton on and after January 1, 2022. The bill would require a minimum of $1 per ton of the fee collected from each operator between January 1, 2017, and January 1, 2022, and would authorize some or all of the fee collected thereafter, to be allocated to activities that promote recycling and the highest and best use of materials, as specified.

end insert begin insert

The bill additionally would require the department, commencing January 1, 2019, to establish, as provided, and impose a charge on all solid waste generators to be collected by a city, county, or city and county and remitted to the state board, as specified. The bill would require that the moneys collected from each solid waste generator between January 1, 2019, and January 1, 2022, be allocated by the department to activities that promote recycling and the highest and best use of materials, as specified. By adding to the duties of local governments, this bill would impose a state-mandated local program.

end insert begin insert

(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert begin insert

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

end insert begin insert

(3) This bill would declare that it is to take effect immediately as an urgency statute.

end insert begin delete

This bill would require, on or before July 1, 2016, the Department of Resources Recycling and Recovery, to hold a public hearing and workshop to develop a proposal for the Legislature regarding a new solid waste management fee which would provide the department with the revenue necessary to carry out certain actions. The bill would require the department, within 6 months of the public hearing and workshop, to propose a new solid waste management fee to the Legislature.

end delete

Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 48000 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

48000.  

(a) Each operator of a disposal facility shall pay a fee
quarterly to the begin delete State Board of Equalization, end delete begin insert state board, end insert which is
based on the amount, by weight or volumetric equivalent, as
determined by the begin delete Department of Resources Recycling and
Recovery, end delete begin insert department, end insert of all solid waste disposed of at each
disposal site.

(b) (1) The fee for solid waste disposed of shall be one dollar
and thirty-four cents ($1.34) per ton. Commencing with the
1995-96 fiscal year, the amount of the fee shall be established by
the begin delete Department of Resources Recycling and Recovery end delete begin insert department end insert
at an amount that is sufficient to generate revenues equivalent to
the approved budget for that fiscal year, including a prudent
reserve, but shall not exceed one dollar and forty cents ($1.40) per
ton.

(2) On and after July 1, 2012, the amount of the fee established
by the begin delete Department of Resources Recycling and Recovery end delete
begin insert department end insert pursuant to paragraph (1) shall be increased by twelve
cents ($0.12) per ton for each operator of a solid waste landfill
whose owner has notified the department that it elects to participate
in the State Solid Waste Postclosure and Corrective Action Trust
Fund pursuant to Article 2.1 (commencing with Section 48010).

(c) The begin delete Department of Resources Recycling and Recovery end delete
begin insert department end insert shall notify the state board on the first day of the period
in which the rate shall take effect of any rate change adopted
pursuant to paragraphs (1) and (2) of subdivision (b).

(d) The begin delete Department of Resources Recycling and Recovery end delete
begin insert department end insert and the state board shall ensure that all of the fees for
solid waste imposed pursuant to this section that are collected at
a transfer station are paid to the state board in accordance with this
article.

(e) (1) The fee imposed by paragraph (2) of subdivision (b)
shall not be operative on or after July 1, 2012, unless the
begin delete Department of Resources Recycling and Recovery end delete begin insert department end insert
receives, on or before January 1, 2012, letters of participation in
the State Solid Waste Postclosure and Corrective Action Trust
Fund from landfill owners representing at least 50 percent of the
total volume of waste disposed of in 2010.

(2) The begin delete Department of Resources Recycling and Recovery end delete
begin insert department end insert shall notify the state board, on or before February 29,
2012, if the fee imposed by paragraph (2) of subdivision (b) shall
become operative pursuant to paragraph (1).

begin insert

(f) This section shall remain in effect only until January 1, 2017,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2017, deletes or extends that date.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 48000 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 48000. end insert   

(a) (1) Each operator of a disposal facility shall
quarterly pay a fee that is based on the amount, by weight or
volumetric equivalent as determined by the department, of all solid
waste disposed at each disposal site. The fee shall be five dollars
($5.00) per ton.

(2) The fee imposed by this subdivision shall be remitted to the
state board.

(b) (1) Notwithstanding Section 48004, no less than one dollar
($1.00) per ton collected pursuant to subdivision (a) shall be
allocated by the department, upon appropriation by the Legislature,
to fund activities that promote recycling and the highest and best
use of materials through any of the following:

(A) Market incentive payments for recycling infrastructure and
activities.

(B) Grants to local governments to implement programs that
increase recycling and reduce disposal.

(C) Grants and loans to develop recycling infrastructure.

(2) When implementing paragraph (1), if the department
determines there are sufficient moneys collected pursuant to this
section, it shall prioritize the funding of market incentive payments.

(c) This section shall become operative on January 1, 2017.

(d) This section shall remain in effect only until January 1, 2022,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2022, deletes or extends that date.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 48000 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 48000. end insert   

(a) (1) Each operator of a disposal facility shall
quarterly pay a fee that is based on the amount, by weight or
volumetric equivalent as determined by the department, of all solid
waste disposed at each disposal site. The fee shall be three dollars
and fifty cents ($3.50) per ton.

(2) The fee imposed by this subdivision shall be remitted to the
state board.

(b) Notwithstanding Section 48004, moneys collected pursuant
to subdivision (a) may be allocated by the department, upon
appropriation by the Legislature, to fund activities that promote
recycling and the highest and best use of materials through any
of the following:

(1) Market incentive payments for recycling infrastructure and
activities.

(2) Grants to local governments to implement programs that
increase recycling and reduce disposal.

(3) Grants and loans to develop recycling infrastructure.

(c) This section shall become operative on January 1, 2022.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 48000.1 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 48000.1. end insert   

(a) (1) The department shall establish and impose
a quarterly charge on solid waste generators in an amount
sufficient to ensure fifteen million dollars ($15,000,000) per
calendar year is available to be used pursuant to subdivision (c).

(2) To the extent possible, the charge shall apply to all solid
waste generators, including residential entities, commercial
entities, public entities, and self-haulers.

(b) (1) The charge shall be collected by a city, county, or a city
and county or up to two designees per city or county or city and
county.

(2) The charge imposed by this section shall be remitted to the
state board.

(c) (1) Notwithstanding Section 48004, the moneys collected
pursuant to this section shall be allocated by the department, upon
appropriation by the Legislature, to fund activities that promote
recycling and the highest and best use of materials through any
of the following:

(A) Market incentive payments for recycling infrastructure and
activities.

(B) Grants to local governments to implement programs that
increase recycling and reduce disposal.

(C) Grants and loans to develop recycling infrastructure.

(2) When implementing paragraph (1), if the department
determines there are sufficient moneys collected pursuant to this
section, it shall prioritize the funding of market incentive payments.

(d) This section shall become operative on January 1, 2019.

(e) This section shall remain in effect only until January 1, 2022,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2022, deletes or extends that date.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 48000.1 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 48000.1. end insert   

(a) (1) The department shall establish and impose
a quarterly charge on solid waste generators as follows:

(A) Commencing January 1, 2022, and every three years
thereafter, the charge on solid waste generators shall be calculated
to collect moneys sufficient to recover the department’s costs to
implement this division that are not covered by the moneys annually
collected pursuant to Section 48000 during the prior three fiscal
years.

(B) In determining the amount of moneys required to implement
this division, the department shall set the charge based on the
moneys deposited in the account for the 2018-19 fiscal year less
the amount set to fund activities pursuant to subdivision (b) of
Section 48000 plus any additional or reduced collected moneys
necessary to implement any additional or reduced allocations and
transfers approved by the Legislature.

(2) To the extent possible, the charge shall apply to all solid
waste generators, including residential entities, commercial
entities, public entities, and self-haulers.

(b) (1) The charge shall be collected by a city, county, or a city
and county or up to two designees per city or county or city and
county.

(2) The charge imposed by this section shall be remitted to the
state board.

(c) This section shall become operative on January 1, 2022.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 48001 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

48001.  

begin insert (a) end insert begin insert   end insert The revenue from the fees paid pursuant to
begin delete paragraph (1) of subdivision (b) of Section 48000 shall, after
payment of refunds and administrative costs of collection, be
deposited end delete begin insert this chapter shall be deposited, after payment of refunds
and administrative costs of collection, end insert in the Integrated Waste
Management Account, which is hereby created in the fund.

begin insert

(b) The department and the state board shall ensure all of the
fees for solid waste imposed pursuant to this chapter, including,
but not limited to, fees on solid waste that is exported for disposal,
are remitted to the state board in accordance with this article.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 48004 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

48004.  

(a) The money in the account shall be used by the
begin delete Department of Resources Recycling and Recovery end delete begin insert department end insert ,
upon appropriation by the Legislature, for the following purposes:

(1) The administration and implementation of this division by
the begin delete Department of Resources Recycling and Recovery. end delete begin insert department,
including a prudent reserve. end insert

(2) The state water board’s and regional water boards’
administration and implementation of Division 7 (commencing
with Section 13000) of the Water Code at solid waste disposal
sites.

(b) It is the intent of the Legislature that an amount that is
sufficient to fund state water board and regional water board
regulatory activities for solid waste landfills be appropriated from
the account by the Legislature in the annual Budget Act. Those
persons who are required to pay the fee imposed pursuant to
Section 48000 shall not be required to pay the annual fee imposed
pursuant to subdivision (d) of Section 13260 of the Water Code
with regard to the same discharge if the requirements for the waiver
of that fee set forth in paragraph (3) of subdivision (d) of Section
13260 of the Water Code are met.

(c) Notwithstanding subdivisions (a) and (b), if the fee
established pursuant to Section 48000 does not generate revenues
sufficient to fund the programs specified in this begin delete section, end delete begin insert section end insert
or if the amount appropriated by the Legislature for these purposes
is reduced, those reductions shall be equally and proportionally
distributed between funding for the solid waste programs of the
state water board and the regional water boards and the begin delete Department
of Resources Recycling and Recovery. end delete begin insert department. end insert

begin insert

begin insert SEC. 8. end insert   

end insert begin insert

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert begin insert

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

end insert begin insert

To ensure the Department of Resources Recycling and Recovery
has sufficient resources to efficiently and effectively regulate the
generation and disposal of solid waste for the protection of public
health and safety, it is necessary for this measure to take effect
immediately.

end insert

begin delete

SECTION 1.  

Section 48000.1 is added to the Public Resources
Code, to read:

48000.1.  

(a) On or before July 1, 2016, the department shall
hold a public hearing and workshop to develop a proposal for the
Legislature regarding a new solid waste management fee which
would provide the department with the revenue necessary to carry
out all of the following:

(1) Develop financial incentives to promote the recycling of
organic material through activities, including, but not limited to,
composting and anaerobic digestion.

(2) Provide resources to develop infrastructure and incentives
necessary to achieve the statewide policy goal pursuant to Section
41780.01.

(3) Provide a sustainable funding structure that ensures the
department’s ability to carry out its responsibilities under this
division.

(b) For the public hearing and workshop, the department shall
seek public input from interested groups, including, but not limited
to, representatives of the solid waste industry, local government,
disadvantaged communities, and environmental groups.

(c) Within six months of the public hearing and workshop held
pursuant to subdivision (a), the department shall propose a new
solid waste management fee to the Legislature pursuant to Section
9795 of the Government Code.

end delete