BILL NUMBER: SB 1066 CHAPTERED
BILL TEXT
CHAPTER 672
FILED WITH SECRETARY OF STATE OCTOBER 6, 1997
APPROVED BY GOVERNOR OCTOBER 3, 1997
PASSED THE SENATE SEPTEMBER 12, 1997
PASSED THE ASSEMBLY SEPTEMBER 10, 1997
AMENDED IN ASSEMBLY SEPTEMBER 8, 1997
AMENDED IN ASSEMBLY SEPTEMBER 2, 1997
AMENDED IN ASSEMBLY AUGUST 28, 1997
AMENDED IN SENATE MAY 5, 1997
INTRODUCED BY Senator Sher
(Coauthor: Assembly Member Honda)
FEBRUARY 27, 1997
An act to amend Sections 40001, 41821, 41850, 42000, 42005, and
42010 of, to amend and repeal Sections 41785 and 41820 of, to add
Sections 40900.1, 41821.6, 42024, and 42241.5 to, and to repeal
Section 42242 of, the Public Resources Code, relating to solid waste.
LEGISLATIVE COUNSEL'S DIGEST
SB 1066, Sher. Solid waste: market development.
(1) Existing law, the California Integrated Waste Management Act
of 1989, administered by the California Integrated Waste Management
Board, establishes an integrated waste management program. The act
requires each city and each county to develop a source reduction and
recycling element that includes an implementation schedule that shows
how the city or county will divert 25% of all solid waste from
landfill or transformation facilities by January 1, 1995, and 50% by
January 1, 2000, through source reduction, recycling, and composting
activities.
The act authorizes the board to grant a one-year time extension
from those diversion requirements, subject to specified conditions,
including that the board makes a specified finding of adverse market
conditions.
This bill would instead authorize one or more single or multiyear
time extensions from the diversion requirements if the city or county
makes specified demonstrations to the board.
The bill would require the board in making a decision to grant an
alternative source reduction, recycling, and composting requirement
to consider specified circumstances.
(2) Existing law requires the board to develop a comprehensive
market development plan using existing resources, that will stimulate
market demand in the state for postconsumer waste material and
secondary waste material generated in the state, including specified
goals.
This bill would require the plan to also include efforts to
encourage and promote cooperative, regional programs to expand
markets for recycled materials, including activities to address
problems and opportunities that are unique to rural, urban, and
suburban areas of the state.
The bill would require the board to develop a plan, using existing
resources, to provide assistance to local agencies when requested,
in the implementation of cost-effective programs that provide a
quality supply of recycled materials for markets. The bill would
also authorize the board to develop a program to increase the use of
compost products in agricultural applications, as prescribed.
The bill would require the board, the Trade and Commerce Agency,
and the Treasurer to coordinate activities that will leverage
financing for market development projects and encourage joint
activities to strengthen markets for recycled materials.
The bill would require the board to assist market development
efforts by the board, local agencies, and the private sector, to use
existing data resources collected from recycling, composting, and
disposal facilities, or from other sources, and to provide periodic
information on the recovery and availability of recycled materials.
The bill would require the board, not later than September 1,
1998, to submit a report to the Governor and the Legislature that
details specified matters regarding regulations and procedures
concerning recycling by state agencies.
The bill would make related legislative findings and declarations.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 40001 of the Public Resources Code is amended
to read:
40001. (a) The Legislature declares that the responsibility for
solid waste management is a shared responsibility between the state
and local governments. The state shall exercise its legal authority
in a manner that ensures an effective and coordinated approach to the
safe management of all solid waste generated within the state and
shall oversee the design and implementation of local integrated waste
management plans.
(b) The Legislature further declares that it is the policy of the
state to assist local governments in minimizing duplication of
effort, and in minimizing the costs incurred, in implementing this
division through the development of regional cooperative efforts and
other mechanisms which comply with this division.
(c) The Legislature further declares that market development is
the key to successful and cost-effective implementation of the
25-percent and 50-percent diversion requirements required pursuant to
Section 41780, and that the state must take a leadership role,
pursuant to Chapter 1 (commencing with Section 42000) of Part 3, in
encouraging the expansion of markets for recycled products by working
cooperatively with the public, private, and nonprofit sectors.
SEC. 2. Section 40900.1 is added to the Public Resources Code, to
read:
40900.1. The Legislature hereby further finds and declares all of
the following:
(a) It is important to encourage state agencies to plan and
implement programs that will reduce the amount of solid waste going
to disposal facilities through source reduction, recycling, and
composting.
(b) Local agencies, other than a host jurisdiction, and federal
agencies should be encouraged to plan and implement programs that
will reduce the amount of solid waste going to disposal facilities
through source reduction, recycling, and composting.
(c) Each state agency shall, to the extent feasible and within
existing budgetary constraints, develop and implement source
reduction, recycling, and composting programs that will reduce the
amount of solid waste going to disposal facilities. Those programs
shall be consistent with Executive Order W-7-91, which ordered state
agencies to establish recycling programs, reduce paper waste,
purchase recycled products, and implement measures that minimize the
generation of waste.
(d) Local, state, and federal agencies generating solid waste that
is sent to a host jurisdiction for disposal should be encouraged to
provide the host jurisdiction with information on the amount of solid
waste and regarding any solid waste source reduction, recycling, or
composting programs that have been implemented by the agency, to
assist the host jurisdiction in developing and implementing the
planning requirements of this division.
SEC. 3. Section 41785 of the Public Resources Code is amended to
read:
41785. (a) On and after January 1, 1995, and upon the request of
a city or county, the board may establish an alternative source
reduction, recycling, and composting requirement to the 50-percent
requirement established under Section 41780, not to exceed three
years unless another alternative requirement is granted by the board,
if the board holds a public hearing and makes both of the following
findings based upon substantial evidence on the record:
(1) The city or county and has made a good faith effort to
effectively implement the source reduction, recycling, and composting
measures described in its board approved source reduction and
recycling element and has demonstrated progress toward meeting the
alternative requirement as described in its annual reports to the
board and the city or county has been unable to meet the 50-percent
diversion requirement despite implementing those measures.
(2) The alternative source reduction, recycling, and composting
requirement represents the greatest diversion amount that the city or
county, may reasonably and feasibly achieve.
(b) In making the decision whether to grant an alternative
requirement pursuant to subdivision (a) and in determining the amount
of the alternative requirement, the board shall consider
circumstances in the city or county that support the request for an
alternative requirement, such as waste disposal patterns within the
city or county and the types of residential and nonresidential waste
disposed by the city or county. The city or county may provide the
board with any additional information that the city or county
determines to be necessary to demonstrate to the board the need for
the alternative requirement.
(c) If a city or county that requests an alternative source
reduction and recycling requirement to the 50-percent requirement has
not previously requested an extension pursuant to Section 41820, the
city or county shall provide information to the board that explains
why it has not requested an extension.
(d) A city or county that has previously been granted an
alternative source reduction, recycling, and composting requirement
may request another alternative source reduction, recycling, and
composting requirement. A city or county that requests such another
alternative requirement shall provide information to the board that
demonstrates that the circumstances that supported the previous
alternative source reduction, recycling, and composting requirement
continue to exist or shall provide information to the board that
describes changes in those previous circumstances that support
another alternative source reduction, recycling, and composting
requirement. The board shall review the original circumstances that
supported the city or county's request, as well as any new
information provided by the city or county that describes the current
circumstances, to determine whether to grant another alternative
requirement. The board may approve another alternative requirement
if the board holds a public hearing and makes both of the following
findings based upon substantial evidence in the record:
(1) The city or county has made a good faith effort to effectively
implement the source reduction, recycling, and composting measures
described in its board approved source reduction and recycling
element and has demonstrated progress toward meeting the alternative
requirement as described in its annual reports to the board.
(2) The alternative source reduction, recycling, and composting
requirement represents the greatest diversion amount the city or
county may reasonably and feasibly achieve.
(e) If the board establishes a new alternative requirement or
rescinds the existing alternative requirement, the board shall do so
at a public hearing. If the board establishes an alternative
requirement, it shall make both of the following findings based upon
substantial evidence in the record:
(1) The city or county has made a good faith effort to effectively
implement the source reduction, recycling, and composting measures
described in its board approved source reduction and recycling
element and has demonstrated progress toward meeting the alternative
requirement as described in its annual reports to the board and that
the alternative diversion requirement is no longer appropriate.
(2) The new requirement represents the greatest amount of
diversion that the city or county may reasonably and feasibly
achieve.
(f) (1) No single alternative requirement may be granted for a
period that exceeds three years and, if after the granting of the
original alternative requirement, another alternative requirement is
granted, the combined period that the original and the new
alternative requirement is in force and effect shall not exceed a
total of five years.
(2) Any alternative requirement that is granted prior to January
1, 2000, shall become effective on January 1, 2000. The board shall
require any city or county granted an alternative requirement prior
to January 1, 2000, to comply with this section after the date that
the alternative requirement is granted.
(3) No alternative requirement shall be granted for any period
after January 1, 2006, and no alternative requirement shall be
effective after January 1, 2006.
(4) No city or county shall be granted an alternative requirement
if the city or county has failed to meet, on or before July 1, 1998,
the applicable requirements of Chapter 2 (commencing with Section
41000), Chapter 3 (commencing with Section 41300), Chapter 3.5
(commencing with Section 41500), and Chapter 4.5 (commencing with
Section 41730).
(g) (1) When considering a request for an alternative source
reduction, recycling, and composting requirement, the board may make
specific recommendations for the implementation of alternative
programs.
(2) Nothing in this section precludes the board from disapproving
any request for an alternative requirement.
(3) If the board disapproves a request for an alternative
requirement, the board shall specify its reasons for disapproval.
(h) If the board grants an alternative source reduction,
recycling, and composting requirement, the city or county may request
technical assistance from the board to assist it in meeting the
alternative source reduction, recycling, and composting requirement.
If requested by the city or county, the board shall assist with
identifying model policies and programs implemented by other
jurisdictions of similar size, geography, and demographic mix.
(i) A city or county that is granted an alternative requirement
pursuant to this section shall continue to implement source
reduction, recycling, and composting programs, and shall report the
status of those programs in the report required pursuant to Section
41821.
(j) This section shall remain in effect until January 1, 2006, and
as of that date is repealed.
SEC. 4. Section 41820 of the Public Resources Code is amended to
read:
41820. (a) The board may grant one or more, single, or multiyear
time extension from the requirements of paragraph (2) of subdivision
(a) of Section 41780 to any city, county, or regional agency if the
following conditions are met:
(1) Any multiyear extension that is granted does not exceed three
years and a city, county, or regional agency is not granted
extensions that exceed a total of five years.
(2) Any extension granted prior to January 1, 2000, commences on
January 1, 2000. The board shall require that any city, county, or
regional agency granted an extension prior to January 1, 2000,
complies with this section after the date that the extension is
granted.
(3) No extension is granted for any period after January 1, 2006,
and no extension is effective after January 1, 2006.
(4) The board considers the extent to which a city, county, or
regional agency complied with its plan of correction before
considering another extension.
(5) No city, county, or regional agency is granted an extension if
that city, county, or regional agency failed to meet the applicable
requirements of Chapter 2 (commencing with Section 41000), Chapter 3
(commencing with Section 41300), Chapter 3.5 (commencing with
Section 41500), and Chapter 4.5 (commencing with Section 41730).
(6) The board adopts written findings, based upon substantial
evidence in the record as follows:
(A) The city, county, or regional agency is making a good faith
effort to implement the source reduction, recycling, and composting
programs identified in its source reduction and recycling element.
(B) The city, county, or regional agency submits a plan of
correction that demonstrates that the city, county, or regional
agency will meet the requirements of paragraph (2) of subdivision (a)
of Section 41780 before the time extension expires, includes the
source reduction, recycling, or composting steps the city, county, or
regional agency will implement, a date prior to the expiration of
the time extension when the requirements of paragraph (2) of
subdivision (a) of Section 41780 will be met, existing programs it
will modify, any new programs that will be implemented to meet those
requirements, and the means by which these programs will be funded.
(b) (1) When considering a request for an extension, the board may
make specific recommendations for the implementation of alternative
programs.
(2) Nothing in this section shall preclude the board from
disapproving any request for an extension.
(3) If the board disapproves a request for an extension, the board
shall specify its reasons for the disapproval.
(c) (1) In determining whether to grant the request by a city,
county, or regional agency for the time extension authorized by
subdivision (a), the board shall consider information provided by the
city, county, or regional agency that describes relevant
circumstances in the city, county, or regional agency that
contributed to the request for extension, such as lack of markets for
recycled materials, local efforts to implement source reduction,
recycling, and composting programs, facilities built or planned,
waste disposal patterns within the jurisdiction, and the type of
residential and nonresidential waste disposed by the city, county, or
regional agency.
(2) The city, county, or regional agency may provide the board
with any additional information that the jurisdiction determines to
be necessary to demonstrate to the board the need for the extension.
(d) If the board grants a time extension pursuant to subdivision
(a), the city, county, or regional agency may request technical
assistance from the board to assist it in meeting the diversion
requirements of paragraph (2) of subdivision (a) of Section 41780
during the extension period. If requested by the city, county, or
regional agency, the board shall assist the city, county, or regional
agency with identifying model policies and programs implemented by
other jurisdictions of similar size, geography, and demographic mix.
(e) This section shall remain in effect only until January 1,
2006, and as of that date is repealed.
SEC. 5. Section 41821 of the Public Resources Code is amended to
read:
41821. (a) Each year following the board's approval of a city,
county, or regional agency's source reduction and recycling element,
household hazardous waste element, and nondisposal facility element,
the city, county, or regional agency shall submit a report to the
board summarizing its progress in reducing solid waste as required by
Section 41780. The annual report shall be due on or before August 1
of the year following board approval of the source reduction and
recycling element, the household hazardous waste element, and the
nondisposal facility element, and on or before August 1 in each
subsequent year. The information in this report shall encompass the
previous calendar year, January 1 to December 31, inclusive.
(b) Each jurisdiction's annual report to the board shall, at a
minimum, include the following:
(1) Calculations of annual disposal reduction.
(2) Information on the changes in waste generated or disposed of
due to increases or decreases in population, economics, or other
factors complying with subdivision (c) of Section 41780.1.
(3) A summary of progress made in implementing the source
reduction and recycling element and the household hazardous waste
element.
(4) If the jurisdiction has been granted a time extension by the
board pursuant to Section 41820, the jurisdiction shall include a
summary of progress made in meeting the source reduction and
recycling element implementation schedule pursuant to paragraph (2)
of subdivision (a) of Section 41780 and complying with the
jurisdiction's plan of correction, prior to the expiration of the
time extension.
(5) If the jurisdiction has been granted an alternative source
reduction recycling, and composting requirement pursuant to Section
41785, the jurisdiction shall include a summary of progress made
towards meeting the alternative requirement as well as an explanation
of current circumstances that support the continuation of the
alternative requirement.
(6) Other information relevant to compliance with Section 41780.
(c) The board shall use, but is not limited to the use of, the
annual report in the determination of whether the jurisdiction's
source reduction and recycling element needs to be revised.
SEC. 6. Section 41821.6 is added to the Public Resources Code, to
read:
41821.6. To assist market development efforts by the board, local
agencies, and the private sector, the board shall use existing data
resources collected from recycling, composting, and disposal
facilities, or from other sources, to provide periodic information on
the recovery and availability of recycled materials.
SEC. 7. Section 41850 of the Public Resources Code is amended to
read:
41850. (a) Except as specifically provided in Section 41813, if,
after holding the public hearing and issuing an order of compliance
pursuant to Section 41825, the board finds that the city, county, or
regional agency has failed to implement its source reduction and
recycling element or its household hazardous waste element, the board
may impose administrative civil penalties upon the city or county
or, pursuant to Section 40974, upon the city or county as a member of
a regional agency, of up to ten thousand dollars ($10,000) per day
until the city, county, or regional agency implements the element.
(b) In determining whether or not to impose any penalties, or in
determining the amount of any penalties imposed under this section,
including any penalties imposed due to the exclusion of solid waste
pursuant to Section 41781.2 which results in a reduction in the
quantity of solid waste diverted by a city, county, or regional
agency, the board shall consider only those relevant circumstances
which have prevented a city, county, or regional agency from meeting
the requirements of this division, including the diversion
requirements of paragraphs (1) and (2) of subdivision (a) of Section
41780, including, but not limited to, all of the following:
(1) Natural disasters.
(2) Budgetary conditions within a city, county, or regional agency
which could not be remedied by the imposition or adjustment of solid
waste fees.
(3) Work stoppages which directly prevent a city, county, or
regional agency from implementing its source reduction and recycling
element or household hazardous waste element.
(4) The impact of the failure of federal, state, and other local
agencies located within the jurisdiction to implement source
reduction and recycling programs in the jurisdiction on the host
jurisdiction's ability to meet the requirements of paragraph (2) of
subdivision (a) of Section 41780.
(c) In addition to the factors specified in subdivision (b), the
board shall consider all of the following:
(1) (A) The extent to which a city, county, or regional agency has
made good faith efforts to implement its source reduction and
recycling element or household hazardous waste element.
(B) (i) For the purposes of this paragraph, "good faith efforts"
means all reasonable and feasible efforts by a city, county, or
regional agency to implement those programs or activities identified
in its source reduction and recycling element or household hazardous
waste element, or alternative programs or activities that achieve the
same or similar results.
(ii) For purposes of this paragraph, "good faith efforts" may also
include the evaluation by a city, county, or regional agency of
improved technology for the handling and management of solid waste
that would reduce costs, improve efficiency in the collection,
processing, or marketing of recyclable materials or yard waste, and
enhance the ability of the city, county, or regional agency to meet
the diversion requirements of paragraphs (1) and (2) of subdivision
(a) of Section 41780, provided that the city, county, or regional
agency has submitted a compliance schedule pursuant to Section 41825,
and has made all other reasonable and feasible efforts to implement
the programs identified in its source reduction and recycling element
or household hazardous waste element.
(iii) In determining whether a jurisdiction has made a good faith
effort, the board shall consider the enforcement criteria included in
its enforcement policy, as adopted on April 25, 1995, or as
subsequently amended.
(2) The extent to which a city, county, or regional agency has
implemented additional source reduction, recycling, and composting
activities to comply with the diversion requirements of paragraphs
(1) and (2) of subdivision (a) of Section 41780.
(3) The extent to which a city, county, or regional agency is
meeting the diversion requirements of paragraphs (1) and (2) of
subdivision (a) of Section 41780.
(4) Whether the jurisdiction has requested and been granted an
extension to the requirements of Section 41780, pursuant to Section
41820, or an alternative requirement to Section 41780, pursuant to
Section 41785.
SEC. 8. Section 42000 of the Public Resources Code is amended to
read:
42000. The Legislature hereby finds and declares all of the
following:
(a) This division requires cities and counties to divert 25
percent of all solid waste from landfills and transformation
facilities by 1995 and 50 percent by 2000. As of 1990, the overall
diversion rate in the state was 12 percent.
(b) California's source reduction, recycling, and composting
efforts need to increase greatly if local jurisdictions are to meet
the 25-percent and the 50-percent diversion requirements.
(c) Market development is the key to increased, cost-effective
recycling. Market development includes activities that strengthen
demand by manufacturers and end-use consumers for recyclable
materials collected by municipalities, nonprofit organizations, and
private entities.
(d) Developing markets for recyclable materials creates
opportunities that will reindustrialize California. The board
estimates that the development of markets for recyclable materials
may create over 20,000 jobs in California's manufacturing sector, an
additional 25,000 jobs in the sorting and processing fields, and an
unestimated number of jobs in other fields that may develop through
full implementation of this division.
(e) The board is authorized to conduct individual market
development activities, but is not presently required to implement a
comprehensive plan that addresses the full range of market
development needs.
SEC. 9. Section 42005 of the Public Resources Code is amended to
read:
42005. (a) The board shall develop a comprehensive market
development plan using existing resources, that will stimulate market
demand in the state for postconsumer waste material and secondary
waste material generated in the state.
(b) The board's market development plan shall include, but shall
not be limited to, achieving all of the following goals:
(1) Increasing market demand for postconsumer waste materials and
secondary waste materials available due to California's source
reduction and recycling programs.
(2) Increasing demand for recycled content products, especially
high quality, value-added products.
(3) Promoting efficient local waste diversion systems which yield
high quality, industrially usable feedstocks.
(4) Promoting the competitive collection and use of secondary
waste materials.
(c) The board's development plan shall also include efforts to
encourage and promote cooperative, regional programs to expand
markets for recycled material. These programs shall include
activities to address problems and opportunities that are unique to
rural, urban, and suburban areas of the state.
(d) The board shall develop a plan, using existing resources, to
provide assistance to local agencies when requested by a city,
county, or regional agency, in the implementation of cost-effective
programs that provide a quality supply of recycled materials for
markets.
(e) The board shall, no later than September 1, 1998, submit a
report to the Governor and the Legislature which details the
following:
(1) Regulations and procedures of state agencies regarding
purchasing materials, supplies, equipment and other items made from
recycled materials.
(2) Regulations and procedures of state agencies regarding
specification development and the inclusion of recycled materials in
those specifications.
(3) Any steps state agencies, both collectively and individually,
could take to increase their use of recycled materials or purchase
products made from recycled materials, and potential effects on the
recycled materials markets.
SEC. 10. Section 42010 of the Public Resources Code is amended to
read:
42010. (a) The local governing body may, either by ordinance or
resolution, upon the recommendation of the appropriate land use
planning agency, propose eligible parcels of property within its
jurisdiction as a recycling market development zone.
(b) The proposal of a recycling market development zone shall be
based upon the following findings by the local governing body:
(1) The current waste management practices and conditions are
favorable to the development of postconsumer waste material markets.
(2) The designation as a recycling market development zone is
necessary to assist in attracting private sector recycling
investments to the area.
(c) (1) The Recycling Market Development Revolving Loan Subaccount
is hereby created in the account for the purpose of providing loans
for purposes of the Recycling Market Development Revolving Loan
Program established pursuant to this article.
(2) Notwithstanding Section 13340 of the Government Code, the
funds deposited in the subaccount are hereby continuously
appropriated to the board without regard to fiscal year for making
loans pursuant to this article.
(3) The board may, upon appropriation by the Legislature in the
annual Budget Act, expend interest earnings on funds in the
subaccount for administrative expenses incurred in carrying out the
Recycling Market Development Revolving Loan Program.
(4) The money from any loan repayments and fees, including, but
not limited to, principal and interest repayments, fees and points,
recovery of collection costs, income earned on any asset recovered
pursuant to a loan default, and funds collected through foreclosure
actions, shall be deposited in the subaccount.
(5) All interest accruing on interest payments from loan
applicants shall be deposited in the subaccount.
(6) The board may make low-interest loans to local governing
bodies and private business entities within a recycling market
development zone from money in the subaccount for the purpose of
assisting the board and
local agencies in complying with Section 40051 and to assist counties
and cities in complying with Section 41780.
(7) The board shall establish and collect fees for applications
for loans authorized by this section. The application fee shall be
set at a level that is sufficient to fund the board's cost of
processing applications for loans. In addition, the board shall
establish a schedule of fees, or points, for loans which are entered
into by the board, to fund the board's administration of the
revolving loan program.
(8) The board may, upon appropriation by the Legislature in the
annual Budget Act, expend money in the subaccount for the
administration of the Recycling Market Development Revolving Loan
Program. In addition, the board may fund administration of the
revolving loan program from the account upon appropriation by the
Legislature in the annual Budget Act. However, funding for the
administration of the revolving loan program from the account shall
be provided only if there are not sufficient funds in the subaccount
to fully fund administration of the program.
(9) The board, pursuant to subdivision (a) of Section 47901, may
set aside funds for the purposes of paying costs necessary to protect
the state's position as a lender-creditor. These costs shall be
broadly construed to include, but not be limited to, foreclosure
expenses, auction fees, title searches, appraisals, real estate
brokerage fees, attorney fees, mortgage payments, insurance payments,
utility costs, repair costs, removal and storage costs for
repossessed equipment and inventory, and additional expenditures to
purchase a senior lien in foreclosure or bankruptcy proceedings.
(d) Loans made pursuant to subdivision (c) shall be subject to all
of the following requirements:
(1) The terms of any approved loan shall be specified in a loan
agreement between the borrower and the board. The loan agreement
shall include a requirement that the failure to comply with the
agreement shall result in any remaining unpaid amount of the loan,
with accrued interest, being immediately due and payable.
Notwithstanding any term of the agreement, any recipient of a loan
that the board approves shall repay the principal amount, plus
interest on the basis of the rate of return for money in the Surplus
Money Investment Fund at the time of the loan commitment. Except as
provided in subdivision (g), all money received as repayment and
interest on loans made pursuant to this section shall be deposited in
the subaccount.
(2) The term of any loan made pursuant to this section shall be
not more than 10 years.
(3) The board shall approve only those loan applications which
demonstrate the applicant's ability to repay the loan. The highest
priority for funding shall be given to projects which demonstrate
that the project will increase market demand for recycling the
project's type of postconsumer waste material.
(4) The board shall finance not more than one-half of the cost of
the project, or not more than one million dollars ($1,000,000) for
loans to the project, whichever is less.
(5) (A) The board shall encourage applicants to seek participation
from private financial institutions or other public agencies. For
purposes of enabling the board and local agencies to comply with
Sections 40051 and 41780, the board may, on a pilot basis,
participate, in an amount not to exceed five hundred thousand dollars
($500,000), in the Capital Access Loan Program as provided in
Article 8 (commencing with Section 44559) of Chapter 1 of Division 27
of the Health and Safety Code.
(B) The board may participate in other state and federal lending
programs that leverage funds based upon the ongoing success of the
pilot program described in subparagraph (A).
(6) The Department of Finance may audit the expenditure of the
proceeds of any loan made pursuant to this section.
(e) Upon authorization by the Legislature in the annual Budget
Act, the Controller shall transfer the sum of five million dollars
($5,000,000) from the account to the subaccount for the purpose of
making loans pursuant to this section. Commencing July 1, 2000, upon
authorization by the Legislature in the annual Budget Act, the
amount of the funds transferred pursuant to this section shall be a
sum not to exceed five million dollars ($5,000,000) as necessary to
meet anticipated loan demand. Those amounts shall be a loan to the
subaccount, repayable with interest to the account at the rate of
return for money in the Surplus Money Investment Fund.
(f) The board shall, as part of the annual report to the
Legislature, pursuant to Section 40507, include a report on the
performance of the Recycling Market Development Revolving Loan
Program, including the number and size of loans made, characteristics
of loan recipients, projected loan demand, and the cost of
administering the program.
(g) All money remaining in the subaccount on July 1, 2006, and all
money received as repayment and interest on loans shall, as of July
1, 2006, be transferred to the account and any money due and
outstanding on loans as of July 1, 2006, shall be repaid to the board
and deposited by the board in the account until paid in full, except
that, upon authorization by the Legislature in the annual Budget
Act, interest earnings may be expended for administrative costs
associated with the collection of outstanding loan accounts.
(h) (1) Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2006, and as of January 1, 2007, is
repealed, unless a later enacted statute, which becomes effective on
or before January 1, 1998, deletes or extends the dates on which it
becomes inoperative and is repealed.
(2) The repeal of this section pursuant to paragraph (1) shall not
extinguish any loan obligation or the authority of the state to
pursue appropriate actions for the collection of a loan.
SEC. 11. Section 42024 is added to the Public Resources Code, to
read:
42024. The board, the Trade and Commerce Agency, the Treasurer,
and other appropriate state agencies shall, to the extent feasible
and as appropriate, coordinate activities that will leverage
financing for market development projects and encourage joint
activities to strengthen markets for recycled materials.
SEC. 12. Section 42241.5 is added to the Public Resources Code, to
read:
42241.5. The board may develop a program to increase the use of
compost products in agricultural applications. The program may
include, but shall not be limited to, the following:
(a) Identification of federal, state, and local financial
assistance.
(b) Cooperative efforts with appropriate federal and state
agencies.
SEC. 13. Section 42242 of the Public Resources Code is repealed.