BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 737
          Author:   Chesbro (D), et al
          Amended:  8/17/10 in Senate
          Vote:     21

           
          PRIOR VOTES NOT RELEVANT
           
          SENATE APPROPRIATIONS COMMITTEE  :  7-3, 8/12/10
          AYES:  Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
          NOES:  Ashburn, Emmerson, Wyland
          NO VOTE RECORDED:  Walters


           SUBJECT  :    Solid waste:  diversion

           SOURCE  :     Californians Against Waste


           DIGEST  :    This bill requires the Department of Resources  
          Recycling and Recovery to report to the Legislature on the  
          current diversion rate in the state and potential  
          strategies to increase the diversion rate to 75 percent,  
          and report information on the costs of the strategies  
          identified in the report.  This bill requires certain  
          businesses to arrange for recycling services and requires  
          local governments to implement a commercial recycling  
          program.  This bill also makes a number of technical and  
          procedural changes to the laws governing solid waste  
          facility regulation.  

          NOTE:  This bill contains similar provisions contained in  
          AB 479 (Chesbro), 2009-10 Session, which was held in the  
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          Senate Appropriations Committee.

           ANALYSIS  :    Under current law, local governments are  
          required divert 50 percent of solid waste through source  
          reduction, recycling, and composting.  The Department of  
          Resources Recycling and Recovery (CalRecycle) is required  
          to determine whether local governments are in compliance  
          with this requirement.  Local governments that are not in  
          compliance or are not making a good faith effort to come  
          into compliance are subject to fines.
           
          Current law authorizes the CalRecycle to designate local  
          enforcement agencies to permit solid waste facilities and  
          enforce permit or other requirements.  Current law requires  
          local governments to adopt and submit non-disposal facility  
          elements to CalRecycle.  These non-disposal facility  
          elements must include a description of new facilities and  
          expansions of existing facilities and all solid waste  
          facility expansions that recover for reuse more than five  
          percent of total disposed volume.

          This bill:

          1.Requires local governments to update existing  
            non-disposal facility elements as conditions change and  
            provide that information to the CalRecycle.

          2.Requires CalRecycle, on or before March 1, 2013 to report  
            to the Legislature on the current diversion rate in the  
            state and potential strategies to increase the diversion  
            rate to 75 percent, and report information on the costs  
            of the strategies identified in the report.  

          3.Requires businesses that contract for solid waste  
            disposal and generate more than four cubic yards of solid  
            waste and recyclable materials per week to arrange for  
            recycling services.  Such businesses are required to  
            either separate recyclable materials from solid waste and  
            arrange for their collection or to contract with a  
            recycling service that provides mixed waste processing  
            services. 

          4.Requires local governments to implement a commercial  
            recycling program, unless a jurisdiction already has  

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            established such a program.  Requires CalRecycle to  
            review such local commercial recycling programs.

          5.Provides that a local agency may charge and collect a fee  
            from a commercial waste generator in order to recover the  
            agency's cost incurred in complying with this bill's  
            provisions.

           Prior/Related Legislation
           
          SB 25 (Padilla), 2009-10 Session, increases the required  
          diversion rate to 60 percent by 2015, and also generally  
          requires businesses to contract for recycling services.  SB  
          25 is in the Assembly Natural Resources Committee.

          SB 1020 (Padilla), 2007-08 Session, would have required the  
          Waste Board to develop a plan to achieve a 75 percent  
          diversion rate by 2020.  That bill was held in the Assembly  
          Appropriations Committee.

          AB 479 (Chesbro), 2009-10 Session, is substantially similar  
          to this bill. AB 479 was held in the Senate Appropriations  
          Committee's suspense file.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/17/10)

          Californians Against Waste (source)

           OPPOSITION  :    (Verified  8/18/10)

          California Chamber of Commerce

           ARGUMENTS IN SUPPORT  :    No letter on file.

           ARGUMENTS IN OPPOSITION  :    The Chamber of Commerce  
          contends that the recycling mandate contained in this bill  
          is unnecessary.  The Chamber points out that CalRecycle is  
          already engaged in developing regulations to implement a  
          mandatory commercial recycling program which must be  
          adopted in 2011.  The Chamber contends that this bill  
          imposes its mandate only on the private sector, rather than  

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          ensuring a greater diversion rate through the inclusion of  
          all state and local government facilities - such as  
          schools, hospitals, and more.  In contrast, CalRecycle has  
          committed to including these state and local government  
          facilities in its mandatory commercial recycling program.   
          The Chamber contends that the state's goal of greater  
          statewide waste diversion would be achieved more  
          cost-effectively and with greater environmental gains by  
          following the more inclusive approach envisioned by  
          CalRecycle.  The Chamber is opposed to the fees imposed on  
          businesses by local governments to pay for the commercial  
          recycling program, and this added cost would be on top of  
          what businesses would already be required to pay for  
          recycling services just to be compliant with the new  
          mandate.


          TSM:kc  8/19/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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