Amended in Assembly August 31, 2016

Amended in Assembly August 19, 2016

Amended in Assembly August 15, 2016

Amended in Senate April 12, 2016

Senate Bill No. 1383

Introduced by Senator Lara

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(Principal coauthor: Assembly Member Williams)

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(Coauthors: Senators Allen, Hancock, and Hill)

(Coauthor: Assembly Member Gonzalez)

February 19, 2016

An act to add Sections begin delete 39730.5 and 39730.6 end delete begin insert 39730.5, 39730.6, 39730.7, and 39730.8 end insert to the Health and Safety Code, and to add Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, relating to methane emissions.

LEGISLATIVE COUNSEL’S DIGEST

SB 1383, as amended, Lara. Short-lived climate pollutants: methane emissions: begin insert dairy and livestock: end insert organic waste: landfills.

(1) The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to begin delete adopt end delete begin insert approve end insert a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020. The state board is also required to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, in the state.

This bill would require the state board, no later than January 1, 2018, to approve and begin implementing that comprehensive strategy to reduce emissions of short-lived climate pollutants to achieve a reduction in methane by 40%, hydrofluorocarbon gases by 40%, and anthropogenic black carbon by 50% below 2013 levels by 2030, as specified. The bill also would establish specified targets for reducing organic waste in landfills.

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This bill would require the state board, in consultation with the Department of Food and Agriculture, to adopt regulations to reduce methane emissions from livestock manure management operations and dairy manure management operations, as specified. The bill would require the state board to take certain actions prior to adopting those regulations. This bill would require the regulations to take effect on or after January 1, 2024, if the state board, in consultation with the department, makes certain determinations.

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This bill would require the state board, the Public Utilities Commission, and the State Energy Resources Conservation and Development Commission to undertake various actions related to reducing short-lived climate pollutants in the state. The bill would require state agencies to consider and, as appropriate, adopt policies and incentives to significantly increase the sustainable production and use of renewable gas.

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(2) The California Integrated Waste Management Act of 1989, which is administered by the Department of Resources Recycling and Recovery, establishes an integrated waste management program that requires each county and city and county to prepare and submit to the department a countywide integrated waste management plan.

The bill would require the department, in consultation with the state board, to adopt regulations that achieve the specified targets for reducing organic waste in landfills. The bill would authorize local jurisdictions to charge and collect fees to recover the local jurisdiction’s costs incurred in complying with the regulations. The bill would require, no later than July 1, 2020, the department, in consultation with the state board, to analyze the progress that the waste sector, state government, and local governments have made in achieving the specified targets for reducing organic waste in landfills. The bill would authorize the department, depending on the outcome of that analysis, to amend the regulations to include incentives or additional requirements, as specified. By adding to the duties of local governments related to organic waste in landfills, this bill would impose a state-mandated local program.

(3) 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.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

(a) The Legislature finds and declares all of the
following:

(1) Short-lived climate pollutants, such as black carbon,
fluorinated gases, and methane, are powerful climate begin delete forces end delete begin insert forcers end insert
that have a dramatic and detrimental effect on air quality, public
health, and climate change.

(2) These pollutants create a warming influence on the climate
that is many times more potent than that of carbon dioxide.

(3)  begin delete These end delete begin insert Short-lived climate pollutants that are end insert toxic air
contaminants also are a significant environmental risk factor for
premature death.

(4) Reducing begin delete these end delete emissions begin insert of these pollutants end insert can have an
immediate beneficial impact on climate change and on public
health.

(5) To the extent possible, efforts to reduce emissions of
short-lived climate pollutants should focus on areas of the state
that are begin delete disproportionally end delete begin insert disproportionately end insert affected by poor air
quality.

(b) It is the intent of the Legislature to support the adoption of
policies that improve organics recycling and innovative,
cost-effective, and environmentally beneficial uses of biomethane
derived from solid waste facilities.

(c) It is intent of the Legislature that the disposal reduction
targets established pursuant to Section 39730.6 of the Health and
Safety Code shall serve as a statewide average target and not as a
minimum requirement for each jurisdiction.

SEC. 2.  

Section 39730.5 is added to the Health and Safety
Code, to read:

39730.5.  

(a) No later than January 1, 2018, the state board
shall approve and begin implementing the comprehensive
short-lived climate pollutant strategy developed pursuant to Section
39730 to achieve a reduction in the statewide emissions of methane
by 40 percent, hydrofluorocarbon gases by 40 percent, and
anthropogenic black carbon by 50 percent below 2013 levels by
2030.

(b) Prior to approving the short-lived climate pollutant strategy
pursuant to subdivision (a), the state board shall do all of the
following:

(1) Coordinate with other state and local agencies and districts
to develop measures identified as part of the strategy.

(2) Provide a forum for public engagement by holding at least
three public hearings in geographically diverse locations throughout
the state.

(3) Evaluate the best-available scientific, technological, and
economic information to ensure that the strategy is cost effective
and technologically feasible.

(4) Incorporate and prioritize, as appropriate, measures and
actions that provide the following cobenefits:

(A) Job growth and local economic benefits in the state.

(B) Public health begin delete benefits for residents, particularly in
disadvantaged communities identified pursuant to Section 39711. end delete

begin insert benefits. end insert

(C) Potential for new innovation in technology, energy, and
resource management practices.

(c) The state board shall publicly notice the strategy described
in subdivision (a) and post a copy of that strategy on the state
board’s Internet Web site at least one month prior to the state board
approving the strategy pursuant to subdivision (a).

SEC. 3.  

Section 39730.6 is added to the Health and Safety
Code, to read:

39730.6.  

begin insert (a) end insert begin insert   end insert Consistent with Section 39730.5, methane
emissions reduction goals shall include the following targets to
reduce the landfill disposal of organics:

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(a)

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begin insert (1) end insert  A 50 percent reduction in the level of the statewide disposal
of organic waste from the 2014 level by 2020.

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(b)

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begin insert (2) end insert  A 75 percent reduction in the level of the statewide disposal
of organic waste from the 2014 level by 2025.

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(b) Except as provided in this section and Section 42652.5 of
the Public Resources Code, the state board shall not adopt, prior
to January 1, 2025, requirements to control methane emissions
associated with the disposal of organic waste in landfills other
than through landfill methane emissions control regulations.

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begin insert SEC. 4. end insert   

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begin insert Section 39730.7 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

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begin insert 39730.7. end insert   

(a) For purposes of this section, the following terms
have the following meanings:

(1) “Department” means the Department of Food and
Agriculture.

(2) “Commission” means the Public Utilities Commission.

(3) “Energy commission” means the State Energy Resources
Conservation and Development Commission.

(4) “Strategy” means the strategy to reduce short-lived climate
pollutants developed pursuant to Section 39730.

(b) (1) The state board, in consultation with the department,
shall adopt regulations to reduce methane emissions from livestock
manure management operations and dairy manure management
operations, consistent with this section and the strategy, by up to
40 percent below the dairy sector’s and livestock sector’s 2013
levels by 2030.

(2) Prior to adopting regulations pursuant to paragraph (1),
the state board shall do all of the following:

(A) Work with stakeholders to identify and address technical,
market, regulatory, and other challenges and barriers to the
development of dairy methane emissions reduction projects. The
group of stakeholders shall include a broad range of stakeholders
involved in the development of dairy methane reduction projects,
including, but not limited to, project developers, dairy and livestock
industry representatives, state and local permitting agencies,
energy agency representatives, compost producers with experience
composting dairy manure, environmental and conservation
stakeholders, public health experts, and others with demonstrated
expertise relevant to the success of dairy methane emissions
reduction efforts.

(B) Provide a forum for public engagement by holding at least
three public meetings in geographically diverse locations
throughout the state where dairy operations and livestock
operations are present.

(C) In consultation with the department, do both of the
following:

(i) Conduct or consider livestock and dairy operation research
on dairy methane emissions reduction projects, including, but not
limited to, scrape manure management systems, solids separation
systems, and enteric fermentation.

(ii) Consider developing and adopting methane emissions
reduction protocols.

(3) The state board shall make available to the public by posting
on its Internet Web site a report on the progress made in
implementing paragraph (2). Pursuant to Section 9795 of the
Government Code, the state board shall notify the Legislature of
the report.

(4) Notwithstanding the Administrative Procedure Act (Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2 of the Government Code), the regulations adopted pursuant
to paragraph (1) shall be implemented on or after January 1, 2024,
if the state board, in consultation with the department, determines
all of the following:

(A) The regulations are technologically feasible.

(B) The regulations are economically feasible considering milk
and live cattle prices and the commitment of state, federal, and
private funding, among other things, and that markets exist for
the products generated by dairy manure management and livestock
manure management methane emissions reduction projects,
including composting, biomethane, and other products. The
analysis shall include consideration of both of the following:

(i) Electrical interconnection of onsite electrical generation
facilities using biomethane.

(ii) Access to common carrier pipelines available for the
injection of digester biomethane.

(C) The regulations are cost effective.

(D) The regulations include provisions to minimize and mitigate
potential leakage to other states or countries, as appropriate.

(E) The regulations include an evaluation of the achievements
made by incentive-based programs.

(c) No later than July 1, 2020, the state board, in consultation
with the department, shall analyze the progress the dairy and
livestock sector has made in achieving the goals identified in the
strategy and specified in paragraph (1) of subdivision (b). The
analysis shall determine if sufficient progress has been made to
overcome technical and market barriers, as identified in the
strategy. If the analysis determines that progress has not been
made in meeting the targets due to insufficient funding or technical
or market barriers, the state board, in consultation with the
department and upon consultation with stakeholders, may reduce
the goal in the strategy for the dairy and livestock sectors, as
identified pursuant to paragraph (1).

(d) (1) (A) No later than January 1, 2018, the state board, in
consultation with the commission and the energy commission, shall
establish energy infrastructure development and procurement
policies needed to encourage dairy biomethane projects to meet
the goal identified pursuant to paragraph (1) of subdivision (b).

(B) The state board shall develop a pilot financial mechanism
to reduce the economic uncertainty associated with the value of
environmental credits, including credits pursuant to the
Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing
with Section 95480) of Title 17 of the California Code of
Regulations) from dairy-related projects producing low-carbon
transportation fuels. The state board shall make recommendations
to the Legislature for expanding this mechanism to other sources
of biogas.

(2) No later than January 1, 2018, the commission, in
consultation with the state board and the department, shall direct
gas corporations to implement not less than five dairy biomethane
pilot projects to demonstrate interconnection to the common carrier
pipeline system. For the purposes of these pilot projects, gas
corporations may recover in rates the reasonable cost of pipeline
infrastructure developed pursuant to the pilot projects.

(e) No later than January 1, 2018, the state board shall provide
guidance on credits generated pursuant to the Low-Carbon Fuel
Standard regulations (Subarticle 7 (commencing with Section
95480) of Title 17 of the California Code of Regulations) and the
market-based compliance mechanism developed pursuant to Part
5 (commencing with Section 38570) of Division 25.5 from the
methane reduction protocols described in the strategy and shall
ensure that projects developed before the implementation of
regulations adopted pursuant to subdivision (b) receive credit for
at least 10 years. Projects shall be eligible for an extension of
credits after the first 10 years to the extent allowed by regulations
adopted pursuant to the California Global Warming Solutions Act
of 2006 (Division 25.5 (commencing with Section 38500)).

(f) Enteric emissions reductions shall be achieved only through
incentive-based mechanisms until the state board, in consultation
with the department, determines that a cost-effective, considering
the impact on animal productivity, and scientifically proven method
of reducing enteric emissions is available and that adoption of the
enteric emissions reduction method would not damage animal
health, public health, or consumer acceptance. Voluntary enteric
emissions reductions may be used toward satisfying the goals of
this chapter.

(g) Except as provided in this section, the state board shall not
adopt methane emissions reduction regulations controlling the
emissions of methane from dairy operations or livestock operations
to achieve the 2020 and 2030 greenhouse gas emissions reduction
goals established pursuant to the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section
38500)).

(h) Nothing in this section shall limit the authority of the state
board to acquire planning and baseline information, including
requiring the monitoring and reporting of emissions.

(i) This section does not in any way affect the state board’s or
districts’ authority to regulate emissions of criteria pollutants,
toxic air contaminants, or other pollutants pursuant to other
provisions of this division.

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begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 39730.8 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 39730.8. end insert   

(a) For purposes of this section, the following terms
have the following meanings:

(1) “Commission” means the Public Utilities Commission.

(2) “Energy commission” means the State Energy Resources
Conservation and Development Commission.

(3) “Strategy” means the strategy to reduce short-lived climate
pollutants developed pursuant to Section 39730.

(b) The energy commission, in consultation with the state board
and the commission, shall develop recommendations for the
development and use of renewable gas, including biomethane and
biogas, as a part of its 2017 Integrated Energy Policy Report
prepared pursuant to Section 25302 of the Public Resources Code.
In developing the recommendations, the energy commission shall
identify cost-effective strategies that are consistent with existing
state policies and climate change goals by considering priority
end uses of renewable gas, including biomethane and biogas, and
their interactions with state policies, including biomethane and
all of the following:

(1) The Renewables Portfolio Standard program (Article 16
(commencing with Section 399.11) of Chapter 2.3 of Part 1 of
Division 1 of the Public Utilities Code).

(2) The Low-Carbon Fuel Standard regulations (Subarticle 7
(commencing with Section 95480) of Title 17 of the California
Code of Regulations).

(3) Waste diversion goals established pursuant to Division 30
(commencing with Section 40000) of the Public Resources Code.

(4) The market-based compliance mechanism developed
pursuant to Part 5 (commencing with Section 38570) of Division
25.5.

(5) The strategy.

(c) Based on the recommendations developed pursuant to
subdivision (b), and to meet the state’s climate change, renewable
energy, low-carbon fuel, and short-lived climate pollutants goals,
including black carbon, landfill diversion, and dairy methane
targets identified in the strategy, state agencies shall consider and,
as appropriate, adopt policies and incentives to significantly
increase the sustainable production and use of renewable gas,
including biomethane and biogas.

(d) Based on the recommendations developed pursuant to
subdivision (b), the commission, in consultation with the energy
commission and the state board, shall consider additional policies
to support the development and use in the state of renewable gas,
including biomethane and biogas, that reduce short-lived climate
pollutants in the state.

(e) In implementing this section, priority shall be given to fuels
with the greatest greenhouse gas emissions benefits, including the
consideration of carbon intensity and reduction in short-lived
climate pollutants, as appropriate.

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begin delete SEC. 4. end delete

begin insert SEC. 6. end insert   

Chapter 13.1 (commencing with Section 42652) is
added to Part 3 of Division 30 of the Public Resources Code, to
read:

 

Chapter  13.1. Short-Lived Climate Pollutants

 

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begin insert 42652. end insert   

The Legislature finds and declares all of the following:

(a) The organic disposal reduction targets are essential to
achieving the statewide recycling goal identified in Section
41780.01.

(b) Achieving organic waste disposal reduction targets requires
significant investment to develop organics recycling capacity.

(c) More robust state and local funding mechanisms are needed
to support the expansion of organics recycling capacity.

end insert

begin delete 42652. end delete

begin insert 42652.5. end insert   

(a) The department, in consultation with the State
Air Resources Board, shall adopt regulations to achieve the organic
waste reduction goals for 2020 and 2025 established in Section
39730.6 of the Health and Safety Code. The regulations shall
comply with all of the following:

(1) May require local jurisdictions to impose requirements on
generators or other relevant entities within their jurisdiction and
may authorize local jurisdictions to impose penalties begin insert on generators end insert
for noncompliance.

(2) Shall include requirements intended to meet the goal that
not less than 20 percent of edible food that is currently disposed
of is recovered for human consumption by 2025.

(3) Shall not establish a numeric organic waste disposal limit
for individual landfills.

(4) May include different levels of requirements for local
jurisdictions and phased timelines based upon their progress in
meeting the organic waste reduction goals for 2020 and 2025
established in Section 39730.6 of the Health and Safety Code. The
department shall base its determination of progress on relevant
factors, including, but not limited to, reviews conducted pursuant
to Section 41825, the amount of organic waste disposed compared
to the 2014 level, per capita disposal rates, the review required by
Section 42653, and other relevant information provided by a
jurisdiction.

(5) May include penalties to be imposed by the department for
noncompliance. If penalties are included, they shall begin delete be imposed
using the processes authorized by Sections 41825 and end delete begin insert not exceed
the amount authorized pursuant to Section end insert 41850.

(6) Shall take effect on or after January 1, 2022, except the
imposition of penalties pursuant to paragraph begin delete (5) end delete begin insert (1) end insert shall not take
effect until two years after the effective date of the regulations.

(b) A local jurisdiction may charge and collect fees to recover
the local jurisdiction’s costs incurred in complying with the
regulations adopted pursuant to this section.

42653.  

(a) No later than July 1, 2020, the department, in
consultation with the State Air Resources Board, shall analyze the
progress that the waste sector, state government, and local
governments have made in achieving the organic waste reduction
goals for 2020 and 2025 established in Section 39730.6 of the
Health and Safety Code. The analysis shall include all of the
following:

(1) The status of new organics recycling infrastructure
development, including the commitment of state funding and
appropriate rate increases for solid waste and recycling services
to support infrastructure expansion.

(2) The progress in reducing regulatory barriers to the siting of
organics recycling facilities and the timing and effectiveness of
policies that will facilitate the permitting of organics recycling
infrastructure.

(3) The status of markets for the products generated by organics
recycling facilities, including cost-effective electrical
interconnection and common carrier pipeline injection of digester
biomethane and the status of markets for compost, biomethane,
and other products from the recycling of organic waste.

(b) If the department determines that significant progress has
not been made on the items analyzed pursuant to subdivision (a),
the department may include incentives or additional requirements
in the regulations described in Section 42652 to facilitate progress
towards achieving the organic waste reduction goals for 2020 and
2025 established in Section 39730.6 of the Health and Safety Code.
The department may, upon consultation with stakeholders,
recommend to the Legislature revisions to those organic waste
reduction goals.

42654.  

This chapter shall not limit the authority of a local
jurisdiction to adopt, implement, or enforce requirements in
addition to those set forth in the regulations adopted pursuant to
this chapter.

begin delete SEC. 5. end delete

begin insert SEC. 7. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
a local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.