BILL ANALYSIS Ó SB 970 Page 1 SENATE THIRD READING SB 970 (Leyva) As Amended June 29, 2016 Majority vote SENATE VOTE: 27-4 ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Natural |8-0 |Williams, Cristina | | |Resources | |Garcia, Gomez, | | | | |Hadley, Harper, | | | | |McCarty, Mark Stone, | | | | |Wood | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |19-0 |Gonzalez, Bigelow, | | | | |Bloom, Bonilla, | | | | |Bonta, Calderon, | | | | |Daly, Eggman, | | | | |Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Holden, Jones, | | | | |Obernolte, Quirk, | | SB 970 Page 2 | | |Santiago, Wagner, | | | | |Weber, Wood, Chu | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Requires the Department of Resources Recycling and Recovery (CalRecycle) to consider specified factors when awarding grants for organic waste projects funded by the Greenhouse Gas Reduction Fund (GGRF.) Specifically, this bill: 1)Requires CalRecycle, in awarding a grant for organics composting or anaerobic digestion to reduce greenhouse gas (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 communities; d) For anaerobic digestion projects, if, and how, the project maximizes resource recovery, including the production of clean energy or low-carbon or carbon negative transportation fuels; e) Project readiness and permitting that the project may require; and, SB 970 Page 3 f) Air and water quality benefits that the project may provide. 1)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 Assembly Appropriations Committee, this bill has no additional state costs. 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 larger grants for large-scale projects under current law. COMMENTS: 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 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 requirements. Recycling provides significant GHG reductions over landfilling. The Air Resources Board's (ARB's) First Update to the Climate Change Scoping Plan identifies waste management as a key sector SB 970 Page 4 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 globally. 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. This bill is intended to 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 benefits. SB 970 Page 5 Analysis Prepared by: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0004108