BILL ANALYSIS                                                                                                                                                                                                    

                                                                     SB 970

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          Date of Hearing:  June 27, 2016


                                 Das Williams, Chair

          970 (Leyva) - As Amended June 20, 2016

          SENATE VOTE:  27-4

          SUBJECT:  Greenhouse Gas Reduction Fund:  grant program:   
          recyclable materials

          SUMMARY:  Requires CalRecycle to consider various factors when  
          awarding grants for organic waste projects funded by the  
          Greenhouse Gas Reduction Fund (GGRF.) 

          EXISTING LAW:   

          1)Pursuant to the Integrated Waste Management Act:

             a)   Establishes a statewide recycling goal of 75% by 2020;  

             b)   Requires local agencies to divert, through source  
               reduction, recycling, and composting, 50% of solid waste  
               disposed by their jurisdictions;  

             c)   Requires commercial waste generators, including  


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               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; and,

             d)   Requires generators of specified amounts of organic  
               waste to arrange for recycling services for that material. 

          2)Requires the Air Resources Board (ARB), pursuant to California  
            Global Warming Solutions Act of  2006 [AB 32 (Nunez), Chapter  
            488, Statutes of 2006], to adopt a statewide greenhouse gas  
            (GHG) emissions limit equivalent to 1990 levels by 2020 and  
            adopt regulations to achieve maximum technologically feasible  
            and cost-effective GHG emission reductions.  AB 32 authorizes  
            ARB to permit the use of market-based compliance mechanisms to  
            comply with GHG reduction regulations, once specified  
            conditions are met.

          3)Establishes the GGRF in the State Treasury, requires all  
            moneys, except for fines and penalties, collected pursuant to  
            a market-based mechanism be deposited in the GGRF and requires  
            the Department of Finance, in consultation with ARB and any  
            other relevant state agency, to develop a three-year  
            investment plan for the moneys deposited in the GGRF.  

          4)Specifies that allocations for a measure or program using GGRF  
            moneys must further the regulatory purposes of AB 32, and  
            requires moneys from the GGRF be used to facilitate the  
            achievement of reductions of GHG emissions in California.  

          5)Requires the Department of Resources Recycling and Recovery  


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            (CalRecycle) to administer a grant program to provide  
            financial assistance to reduce GHG emissions by promoting  
            in-state development and infrastructure to process organics  
            and other recyclable materials into new value-added products  
            using funding from the GGRF.  Specifies that the funding may  
            be used for projects including organics composting, anaerobic  
            digestion, recyclable material manufacturing infrastructure  
            projects, or other related activities that reduce GHG  

          THIS BILL:  

          1)Requires CalRecycle, in awarding a grant for organics  
            composting or anaerobic digestion to reduce GHG emissions  
            using GGRF funding, to consider the following: 

             a)   The amount of GHG emissions reductions that may result  
               from the project; 

             b)   The amount of organic material that may be diverted from  
               landfills as a result of the project; 

             c)   If, and how, the project may benefit disadvantaged  

             d)   If, and how, the project leverages existing waste water  
               treatment infrastructure;  

             e)   If, and how, the project maximizes resource recovery,  
               including the production of clean energy or low-carbon or  
               carbon negative transportation fuels; 


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             f)   If, and how, the project encourages and results in broad  
               regional solutions that maximize environmental and economic  

             g)   Project readiness and permitting that the project may  
               require; and, 

             h)   Air and water quality benefits that the project may  

          2)To the extent funds are available, authorizes CalRecycle to  
            provide larger grant awards for large-scale regional  
            integrated projects that provide cost-effective organic waste  
            diversion and maximize environmental benefits. 

          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, this bill has  
          negligible state costs. 


          1)Meeting the state's recycling 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 greatest single item disposed, making  
            up 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 to implement  
            Strategic Directive 6.1.  Recycling technologies for organic  


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            waste include composting, anaerobic digestion, and other types  
            of processing that generate renewable fuels, energy, soil  
            amendments, and mulch.  California's state agencies play an  
            essential role in meeting the state's waste reduction  

          2)Waste reduction and GHGs.  Recycling provides significant GHG  
            reductions over landfilling.  ARB's First Update to the  
            Climate Change Scoping Plan identifies waste management as a  
            key sector for GHG emissions reductions and states, "Meeting  
            the [state's] 75% recycling goal is the best path forward to  
            maximizing GHG emission reductions from the Waste Management  
            Sector and putting California on the path for even greater GHG  
            emission reductions in the future."  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.  

            Short-lived climate pollutants (SLCPs) are GHGs that remain in  
            the atmosphere for less time than carbon dioxide, but have a  
            much greater climate impact.  SLCPs include black carbon,  
            fluorinated gases, and methane.  While methane does not linger  
            in the atmosphere as long as carbon dioxide, it is over 80  
            times more potent than carbon dioxide over the first 20 years.  
             Methane is responsible for about 20% of current climate  
            change, and methane concentrations continue to increase  

            Fifty percent of landfill gas is methane.  While most modern  
            landfills have systems in place to capture methane,  
            significant amounts continue to escape into the atmosphere.   
            According to ARB, landfills generated 20% of the state's  
            methane emissions in 2013.  In addition to organic waste,  
            source reduction and recycling reduce GHG emissions associated  
            with the production and transportation of products.  


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          3)Author statement: 
               SB 970 would prioritize grant funding for projects that  
               reduce GHG emissions, divert organic material, provide  
               benefits to disadvantaged communities, require minimal  
               siting and permitting, and provide air and water quality  

               This bill would help the state meet multiple environmental  
               goals as organics are diverted from landfills and methane  
               is recovered and repurposed as clean energy and fuels.   
               Most importantly, this bill [would] provide an example of  
               how these prioritized projects can reduce criteria  
               pollutants in disadvantaged communities and improve local  
               health outcomes throughout the state.

          4)Suggested amendment.  This bill includes certain provisions  
            that have the potential to grant funding preference to  
            anaerobic digesters located at waste water treatment  
            facilities.  The committee may wish to amend the bill to  
            ensure that the bill maintains a level playing field for  
            organic materials recycling facilities.  


          California Association of Sanitation Agencies 

          Inland Empire Utilities Agency 

          Sanitation Districts of Los Angeles County


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          California Compost Coalition 

          Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916)