BILL ANALYSIS                                                                                                                                                                                                    

                                                                     SB 970

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          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,     |                    |


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          |                |     |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  

             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, 


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             f)   Air and water quality benefits that the project may  

          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  


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          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.  


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          Analysis Prepared by:                                             
                          Elizabeth MacMillan / NAT. RES. / (916) 319-2092  
          FN: 0004108