BILL ANALYSIS Ó
SB 970
Page 1
Date of Hearing: August 10, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 970
(Leyva) - As Amended June 29, 2016
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|Policy |Natural Resources |Vote:|8 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires CalRecycle to consider various factors when
awarding grants for organic waste projects funded with AB 32
cap-and-trade revenues (Greenhouse Gas Reduction Fund) and
authorizes CalRecycle to provide larger grant awards for
large-scale regional projects. Specifically, this bill:
1)Requires CalReycle to consider the following factors when
awarding grants for organic composting or anaerobic digestion
projects to reduce greenhouse gas (GHG) emissions using
Greenhouse Gas Reduction Funds (GGRF):
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a) The potential amount of GHG emissions.
b) The potential amount of organic material that may be
diverted from landfills.
c) If, and how, the project may benefit disadvantaged
communities and leverage existing wastewater treatment
infrastructure.
d) If, and how, (for anaerobic digestion projects) the
project maximizes resource recovery, including the
production of clean energy or low-carbon or carbon negative
transportation fuels.
e) Project readiness and potential permitting requirements.
f) Potential air and water quality benefits.
1)Authorizes CalRecyle, to the degree funds are available, to
provide larger grant awards for large-scale regional
integrated projects that provide cost-effective organic waste
diversion and maximize environmental benefits.
FISCAL EFFECT:
No additional state costs. According to CalRecycle, this bill
codifies criteria that are already part of grant award
consideration for anaerobic digestion and composting projects.
Further, CalRecycle contends they have the ability to award
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larger grants for large-scale projects under current law.
COMMENTS:
1)Purpose. According to the author, this bill will help the
state meet multiple environmental goals as organics are
diverted from landfills and methane is recovered and
repurposed as clean energy and fuels.
2)Background. 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
in landfills.
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 waste include composting, anaerobic digestion, and
other types of processing that generate renewable fuels,
energy, soil amendments (organic matter added to soil to
improve composition), and mulch.
Recycling provides significant GHG emissions reductions over
landfilling. Composting and other organics processing
technologies, including anaerobic digestion, reduce GHGs by
avoiding the emissions that would be generated by
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decomposition. Landfill gas is generated by the decomposition
of organic materials such as food, paper, wood, and yard
waste. Fifty percent of landfill gas is methane. While most
landfills have systems to capture methane, significant amounts
continue to escape into the atmosphere. Methane does not
linger in the atmosphere as long as CO2, but is over 80 times
more potent over the first 20 years.
2)GGRF. The California Global Warming Solutions Act of 2006
(AB 32, Chapter 488, Statutes of 2006) required ARB 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. As part of its AB 32 implementation, ARB adopted
a cap-and-trade program for which the proceeds from the
auction or sale of GHG allowances are deposited in the GGRF
and available for appropriation by the Legislature.
To date, cap-and-trade auction revenues have generated over $4
billion. However, the most recent auction, held last month,
generated just over $10 million, much less than expected. The
previous auction (February, 2016) generated over $500 million.
The Governor proposed spending over $3 billion GGRF for a
variety of programs and projects in the transportation,
energy, natural resources, and waste diversion sectors in the
2016-17 budget. This included $100 million for CalRecycle's
California Climate Investments (CCI) program to implement the
goals of AB 32 through the increased in-state diversion of
municipal solid waste through waste reduction, diversion, and
reuse. However, the Legislature did not act upon these items.
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According to the Assembly Budget Committee, due to
lower-than-expected auction revenues, decisions on
cap-and-trade funding were deferred until after June 15, 2016.
Although CalRecycle does not currently have CCI funding
available for grants, previously approved funding for the CCI
loan program is available and CalRecycle is currently
accepting 2015-16 loan applications.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081