BILL ANALYSIS Ó
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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.
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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;
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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,
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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
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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.
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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.
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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.
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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
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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.
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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
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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;
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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
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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.
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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:
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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
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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
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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
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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
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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
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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
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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
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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