BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1383


                                                                    Page  1





          Date of Hearing:  August 30, 2016


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          SB  
          1383 (Lara) - As Amended August 19, 2016


          SENATE VOTE:  21-13


          SUBJECT:  Short-lived climate pollutants:  methane emissions:   
          organic waste:  landfills


          SUMMARY:  Requires the Air Resources Board (ARB) to approve and  
          implement the comprehensive short-lived climate pollutant (SLCP)  
          strategy to achieve, from 2013 levels, a 40% reduction in  
          methane, a 40% reduction in hydrofluorocarbon gases (HFCs), and  
          a 50% reduction in anthropogenic black carbon, by 2030.   
          Establishes specific procedures to regulate landfill and dairy  
          sources of methane, including delaying ARB's authority to  
          require emission reductions from livestock and dairy sources  
          until 2024.


          Specifically, this bill:


          1)Requires ARB to approve and begin implementing the  
            comprehensive strategy to reduce SLCPs in the state to  
            achieve, from 2013 levels, a 40% reduction in methane, a 40%  
            reduction in HFCs, and a 50% reduction in anthropogenic (i.e.,  
            non-forest) black carbon, by 2030. 








                                                                    SB 1383


                                                                    Page  2








          2)Requires ARB, prior to approving the strategy, to do all of  
            the following:



             a)   Coordinate with other state and local governments to  
               develop measures identified in the strategy;



             b)   Hold at least three public hearings in geographically  
               diverse locations in the state;



             c)   Evaluate the best available scientific, technological,  
               and economic information to ensure the strategy is cost  
               effective and technologically feasible; and



             d)   Incorporate and prioritize, as appropriate, measures and  
               actions that provide cobenefits, as specified. 

          3)Requires ARB to publicly notice the strategy and post a copy  
            of the strategy on their Web site at least one month prior to  
            approval. 

          4)States the intent of the Legislature: 


             a)   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; and; 









                                                                    SB 1383


                                                                    Page  3






             b)   That the disposal reduction targets established by the  
               bill serve as a statewide average target and not as a  
               minimum requirement for any jurisdiction. 


          5)States that methane emission reduction goals shall include  
            targets to reduce the landfill disposal of organic waste 50%  
            by 2020 and 75% by 2025 from the 2014 level.   


          6)Requires the California Department of Resources Recycling and  
            Recovery (CalRecycle), in consultation with ARB, to adopt  
            regulations to achieve the organics reduction targets.   
            Specify that the regulations: 


             a)   May require local jurisdictions to impose requirements  
               on generators or other relevant entities within their  
               jurisdiction and impose penalties for noncompliance;


             b)   Include requirements intended to meet the goal that not  
               less than 20% of edible food that is currently disposed is  
               recovered for human consumption by 2025;


             c)   Shall not establish a numeric organic waste disposal  
               limit for individual landfills; 


             d)   Include different levels of requirements for local  
               jurisdictions and phased timelines based upon their  
               progress in meeting the organic waste reduction goals, as  
               specified;  


             e)   May include penalties to be imposed by CalRecycle for  
               noncompliance; and,  








                                                                    SB 1383


                                                                    Page  4







             f)   Take effect on or after January 1, 2022, except the  
               imposition of penalties imposed by CalRecycle shall not  
               take effect until two years after the effective date of the  
               regulations.  


          7)Specifies that a local jurisdiction may charge and collect  
            fees to cover the costs incurred in complying with the  
            regulations. 


          8)Requires CalRecycle, in consultation with ARB, to analyze the  
            progress that the waste sector, state government, and local  
            governments have made in achieving the organic waste reduction  
            goals.  Require the analysis to include: 


             a)   The status of new organics recycling infrastructure  
               development; 


             b)   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; and


             c)   The status of markets for the products generated by  
               organic 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.


          9)Authorizes CalRecycle, if it determines that significant  
            progress has not been made, to include incentives or  








                                                                    SB 1383


                                                                    Page  5





            additional requirements in the regulations.  


          10)Declares that the bill does not limit the authority of a  
            local jurisdiction to adopt, implement, or enforce  
            requirements in addition to the requirements of the bill or  
            the regulations.  


          EXISTING LAW:   


          1)Requires 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 the 1990 level by 2020, and adopt regulations to  
            achieve maximum technologically feasible and cost-effective  
            GHG emission reductions.  



          2)Requires ARB, pursuant to SB 605 (Lara), Chapter 523, Statutes  
            of 2014, to complete, by January 1, 2016, a comprehensive  
            strategy to reduce emissions of SLCPs, defined as an agent  
            that has a relatively short lifetime in the atmosphere and a  
            climate-warming influence that is more potent than carbon  
            dioxide.



          3)Establishes, pursuant to AB 341 (Chesbro), Chapter 476,  
            Statutes of 2011, a statewide waste diversion goal of 75% by  
            2020.  Requires a commercial waste generator, including  
            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.










                                                                    SB 1383


                                                                    Page  6






          4)Requires, pursuant to AB 1826 (Chesbro), Chapter 727, Statutes  
            of 2014, generators of specified amounts of organic waste to  
            arrange for recycling services for that material.  Defines  
            "organic waste" as food waste, green waste, landscape and  
            pruning waste, nonhazardous wood waste, and food-soiled paper  
            that is mixed in with food waste.  
          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, unknown cost pressures, potentially in the tens of  
          millions of dollars or more, to fund programs to implement the  
          strategies (Greenhouse Gas Reduction Fund or other special  
          funds).

          COMMENTS:  

          1)Background.  The 5th assessment report from the  
            Intergovernmental Panel on Climate Change (IPCC) notes that  
            atmospheric concentrations of global warming pollutants have  
            risen to levels unseen in the past 800,000 years.  Carbon  
            dioxide concentrations have increased by 40% since  
            pre-industrial times.  There is broad scientific consensus  
            that these global GHG emission increases are leading to higher  
            air and water temperatures, as well as rising sea levels.  Sea  
            level is expected to rise 17 to 66 inches by 2100, and the  
            frequency of extreme events such as heat waves, wildfires,  
            floods, and droughts is expected to increase.  

            Pursuant to AB 32, ARB approved the first Scoping Plan in  
            2008.  The Scoping Plan outlined a suite of measures aimed at  
            achieving 1990-level emissions, a reduction of 80 million  
            metric tons of CO2 (MMT CO2e).  Average emission data in the  
            Scoping Plan reveal that transportation accounts for almost  
            40% of statewide GHG emissions, and electricity and commercial  
            and residential energy sector account for over 30% of  
            statewide GHG emissions.  The industrial sector, including  
            refineries, oil and gas production, cement plants, and food  
            processors, was shown to contribute 20% of California's total  
            GHG emissions. 









                                                                    SB 1383


                                                                    Page  7





            The 2008 Scoping Plan recommended that reducing GHG emissions  
            from the wide variety of sources that make up the state's  
            emissions profile could best be accomplished through a  
            cap-and-trade program along with a mix of other strategies,  
            including a low carbon fuel standard (LCFS), light-duty  
            vehicle GHG standards, expanding and strengthening existing  
            energy efficiency programs, and building and appliance  
            standards, a 33% Renewable Portfolio Standard (RPS), and  
            regional transportation-related GHG targets.  Pursuant to  
            authority under AB 32, the ARB adopted a Low Carbon Fuel  
            Standard in 2009, and a cap-and-trade program approved on  
            December 13, 2011.


            ARB approved an update to the Scoping Plan in 2014.  The  
            update describes policies, actions, and strategies in the  
            energy, transportation, fuels, agriculture, waste, and natural  
            lands sectors as a means to continue emissions reductions in  
            each of these sectors.  The update also asserts that  
            California is on track to meet the near-term 2020 GHG limit  
            and is well positioned to maintain and continue reductions  
            beyond 2020 as required by AB 32.


            CO2 remains in the atmosphere for centuries, which makes it  
            the most critical GHG to reduce in order to limit long-term  
            climate change.  However, climate pollutants, including  
            methane, HFCs, and soot (black carbon), are relatively  
            short-lived (anywhere from a few weeks to 15 years), but have  
            much higher global warming potentials than CO2.  New research  
            suggests that aggressively reducing these short-lived climate  
            pollutants in the short-term, compared to only cutting CO2  
            emissions, can do more to slow sea level rise and other  
            climate change impacts in the near-term.  


             a)   Methane (CH4) is the principal component of natural gas  
               and is also produced biologically under anaerobic  
               conditions in ruminants, landfills, and waste handling.   








                                                                    SB 1383


                                                                    Page  8





               Atmospheric methane concentrations have been increasing as  
               a result of human activities related to agriculture, fossil  
               fuel extraction and distribution, and waste generation and  
               processing.  Many emissions sources of methane are  
               unregulated (e.g., methane from dairy production and  
               fugitive methane emissions from landfills and natural gas  
               distribution).  Methane is about 80 times more powerful as  
               a global warming pollutant than CO2 on a 20-year time  
               scale.



             b)   HFCs (also known as F-gases) are synthetic gases used in  
               refrigeration, air conditioning, insulation foams,  
               solvents, aerosol products, and fire protection.  They are  
               primarily produced for use as substitutes for  
               ozone-depleting substances which are being phased out  
               globally.  Currently, HFCs are a small fraction of the  
               total climate forcing gases, but they are the fastest  
               growing source of carbon pollution.  HFCs, on average, have  
               a global warming potential 1600 times that of CO2 on a  
               20-year time scale. 



             c)   Black carbon, a component of soot, also known as PM 2.5,  
               comes from diesel engines and incomplete burning of carbon  
               sources.  Wildfires contribute two-thirds of the total  
               black carbon emissions in the state.  In addition to being  
               a powerful global warming pollutant, black carbon is  
               associated with numerous negative health impacts and is  
               designated a potential human carcinogen.  Black carbon is  
               not listed under AB 32 as a GHG subject to AB 32  
               regulations.  However, due to known health and air quality  
               impacts, ARB has several programs to reduce PM emissions  
               from heavy-duty vehicles. Black carbon has a global warming  
               potential 3200 times that of CO2 on a 20-year time scale. 
            SB 605 requires ARB to complete a comprehensive strategy to  
            reduce emissions of SLCPs by January 1, 2016.  Following the  








                                                                    SB 1383


                                                                    Page  9





            release of a concept paper and a draft strategy, on April 11,  
            2016, ARB published a proposed SLCP Reduction Strategy, which  
            is scheduled for adoption in September.  The ARB Strategy  
            recommends the same 40/40/50 targets for methane, HFCs, and  
            black carbon as established by this bill.  In addition to the  
            targets, the Strategy proposes specific measures, including:


             a)   Removal and replacement of old fireplaces and  
               woodstoves;

             b)   Implementing a sustainable freight strategy;

             c)   Regulations for best management practices for new  
               dairies;



             d)   Financial incentives for manure management and dairy  
               digesters;



             e)   Requiring organics diversion from landfills;



             f)   Regulations to reduce methane emissions from oil and gas  
               production, processing and storage;



             g)   Financial incentives for low-global warming potential  
               (GWP) refrigeration early adoption; and



             h)   Bans on the sale of very-high GWP refrigerants and  
               prohibitions on new equipment using high GWP gases. 








                                                                    SB 1383


                                                                    Page  10






            ARB indicates that each proposed regulation will be subject to  
            its own public process with workshops, opportunities for  
            stakeholder discussion, consideration of environmental  
            justice, and legally required analyses of the economic and  
            environmental impacts.


            CalRecycle has been engaged with ARB in developing ARB's  
            Strategy to reduce methane emissions from landfills.  It is  
            also is tasked with diverting at least 75% of solid waste  
            generated statewide by 2020.  Organic materials make up  
            one-third of the waste stream and food continues to be the  
            greatest single item disposed, comprising 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 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.  AB 1826 requires generators of  
            significant quantities of organic waste to ensure the material  
            is recycled.  





            Recycling organic waste provides significant GHG reductions  
            over landfilling.  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, as well as by  
            displacing fossil fuels.  While most modern landfills have  
            systems in place to capture methane, significant amounts  
            continue to escape into the atmosphere.  According to ARB's  
            GHG inventory, nearly 8.28 million metric tons of CO2  








                                                                    SB 1383


                                                                    Page  11





            equivalent are released annually by landfills in California. 


            According to the author, California has been a proud and bold  
            leader in pursuing environmental policies to reduce climate  
            change and address the sources that cause it.  Those policies  
            have mostly focused on reducing emissions of CO2, the most  
            significant long-term driver of climate change.  This bill  
            represents the next step in those efforts, to establish a goal  
            to reduce SLCPs that are among the most harmful emissions to  
            both human health and global climate change.  There is an  
            urgent need to develop a strategy to address and reduce these  
            deadly pollutants.  Extensive research links particulate  
            pollution and increased ozone levels to severe and chronic  
            health conditions such as cancer, heart disease, and asthma.   
            Reducing super pollutants in California will have an immediate  
            beneficial effect - dramatically reducing the serious impacts  
            these pollutants have on our air quality and the health of our  
            children.


            


          1)Proposed amendments.  The author proposes amendments for  
            adoption by the committee relating to emission reductions from  
            the dairy sector and development and use of renewable gas, as  
            follows:



               a)     Require ARB to adopt regulations to reduce methane  
                 emissions from dairy and livestock manure management  
                 operations, subject to the following limitations:



                     i.          Reductions are limited to 40% below 2013  
                      levels by 2030;








                                                                    SB 1383


                                                                    Page  12








                     ii.         Reduction regulations may not be  
                      implemented before 2024;



                     iii.        ARB must first complete specified steps,  
                      including stakeholder consultation, public meetings,  
                      and research;



                     iv.         ARB must determine the regulations are  
                      technologically feasible, economically feasible,  
                      cost-effective, and minimize and mitigate potential  
                      leakage;



                     v.          Requires ARB to analyze progress toward  
                      the targets and authorizes ARB to reduce the 40% by  
                      2030 goal if the analysis determines that progress  
                      has not been made due to insufficient funding,  
                      technical or market barriers;



                     vi.         Requires ARB and PUC to establish energy  
                      infrastructure development and procurement policies  
                      for dairy biomethane projects, including directing  
                      gas utilities to implement at least five dairy  
                      biomethane pilot projects; and



                     vii.        Enteric emission reductions shall be  
                      achieved only through incentive-based mechanisms  








                                                                    SB 1383


                                                                    Page  13





                      until ARB determines that a cost-effective,  
                      considering the impact on animal productivity,  
                      scientifically proven means 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.



               b)     Require the Energy Commission, ARB and Public  
                 Utilities Commission to develop recommendations for  
                 development and use of renewable gas, then consider and  
                 adopt policies and incentives to increase production and  
                 use of renewable gas, including biomethane and biogas,  
                 that reduces SLCPs in the state.



          2)Dairy amendments delay and otherwise limit ARB's existing  
            authority to require emission reductions from dairy and  
            livestock operations.  The proposed amendments prevent  
            implementation of emission reduction regulations before 2024.   
            What appears to be a delay of up to seven years is mitigated  
            by the fact that the bill does not limit ARB's authority to  
            adopt and implement other regulations prior to 2024, such as  
            requiring reporting and monitoring of emissions, and even to  
            develop and adopt emission reduction regulations prior to  
            2024, as long as reduction obligations don't begin before  
            2024.  



            The proposed amendments limit the dairy sector's reduction  
            obligation to 40% below 2013 levels, even if additional  
            reductions are feasible and cost-effective relative to other  
            sectors.  The proposed amendments also authorize ARB to reduce  
            the goal for the dairy and livestock sector if specified  
            findings are made.








                                                                    SB 1383


                                                                    Page  14










            The proposed amendments prohibit ARB from regulating emissions  
            from enteric fermentation until ARB, in consultation with the  
            Department of Food and Agriculture, determines that a  
            cost-effective, considering the impact on animal productivity,  
            scientifically proven means 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.  





            The proposed amendments impose additional procedural and  
            analytical requirements on ARB, including considering milk  
            prices and the commitment of public funds, which are  
            inconsistent with AB 32 and the recently passed requirements  
            of AB 197 (E. Garcia), which provides direction to ARB  
            regarding its actions to achieve GHG reductions beyond the  
            2020 statewide limit, including introducing the consideration  
            of "social costs."





            The author and the committee may wish to clarify that all of  
            these limitations apply only to the 2020 and 2030 targets.


          REGISTERED SUPPORT / OPPOSITION:











                                                                    SB 1383


                                                                    Page  15
                                            





          Support


          Alliance of Nurses for Healthy Environment


          All Power Labs


          American Academy of Pediatrics - California


          American Cancer Society Cancer Action Network, California


          American Heart Association, California


          American Lung Association in California


          Anaergia


          Asian Pacific Environmental Network


          Asthma Coalition of Los Angeles County


          Atlas ReFuel


          Audubon California


          Bay Area Regional Health Inequities Initiative









                                                                    SB 1383


                                                                    Page  16






          Baz Allergy, Asthma and Sinus Center, Central Valley and Bay  
          Area


          Bioenergy Association of California


          Bonnie J. Addario Lung Cancer Foundation


          Breathe California


          California Association of Environmental Health Officers


          California Association of Sanitation Agencies


          California Bicycle Coalition


          California Black Health Network, Inc.


          California Conference of Directors of Environmental Health


          California Hydrogen Business Council


          California League of Conservation Voters


          California Medical Association


          California Natural Gas Vehicle Coalition








                                                                    SB 1383


                                                                    Page  17







          Californians Against Waste


          California Nurses Association


          California Pan-Ethnic Health Network


          California Public Health Association - North


          California Refuse Recycling Council


          California Thoracic Society


          California Walks


          CalPIRG


          Center for Climate Change and Health, Public Health Institute


          Central California Asthma Collaborative


          Clean Energy Renewables


          Climate Resolve


          Climate 911








                                                                    SB 1383


                                                                    Page  18







          Coalition for Clean Air


          Coastal Environmental Rights Foundation


          CR & R


          Dignity Health


          Environmental Defense Fund


          Environment California


          Harvest Power, Inc.


          Health Care Without Harm


          Health African American Families II


          Health Officers Association of California


          Inland Empire Disposal Association


          Long Beach Alliance for Children with Asthma


          Los Angeles County Department of Public Works








                                                                    SB 1383


                                                                    Page  19







          Los Angeles County Waste Management


          Lutheran Office of Public Policy - California


          Maternal and Child Health Access (Los Angeles)


          Natural Resources Defense Council


          Network of Ethnic Physician Organizations


          Next Gen Climate 


          Phoenix Energy


          Physicians for Social Responsibility, Los Angeles


          Physicians, Scientists and Engineers Healthy Energy


          Physicians for Social Responsibility/Sacramento


          Prevention Institute


          RAMP and Community Action to Fight Asthma


          Recology








                                                                    SB 1383


                                                                    Page  20







          Republic Services, Inc.


          San Francisco Bay Area Chapter, Physicians for Social  
          Responsibility


          San Joaquin County Asthma and COPD Coalition


          Sierra Club California


          Sierra Energy


          Santa Clara County Public Health Department


          Solid Waste Association of Orange County


          St. John's Well Child and Family Centers (Los Angeles)


          The Trust for Public Land


          TSS Consultants


          Union of Concerned Scientists


          Voices for Progress










                                                                    SB 1383


                                                                    Page  21





          West Biofuels


          29 Individuals




          Opposition


          Association of Home Appliance Manufacturers


          California Business Properties Association


          California Chamber of Commerce


          California Fresh Fruit Association


          California Grain & Feed Association


          California Independent Petroleum Association


          California Manufacturers & Technology Association


          California Retailers Association


          Los Angeles County, Solid Waste Management Committee/Integrated  
          Waste Management Task 










                                                                    SB 1383


                                                                    Page  22





            Force


          Milk Producers Council


          National Federation of Independent Business


          Nisei Farmers League


          Western Agricultural Processors Association


          Western Growers Association


          Western Plant Health Association


          Western States Petroleum Association




          Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092