BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
25 (Padilla)
Hearing Date: 05/28/2009 Amended: 05/06/2009
Amendments Pending
Consultant: Brendan McCarthy Policy Vote: EQ 5-2
SB 25 (Padilla)
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BILL SUMMARY: SB 25 increases the tipping fee paid on solid
waste disposal from $1.40 per ton to $2.13 per ton. The bill
requires local governments to increase diversion rates from
landfills to 60 percent by 2015 and sets a statewide goal of 75
percent diversion by 2020. The bill requires businesses that
generate more than a certain amount of solid waste to arrange
for recycling services and requires local governments to develop
a commercial recycling ordinance to enforce this requirement.
The bill authorizes the Waste Board to develop a new program to
provide grants and loans to local governments to address illegal
dumping. The bill requires the Waste Board to develop a model
ordinance that addresses requirements for residential refuse
services.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Increased tipping fee revenue
($25,000) Special *
New grant and loan program
UnknownSpecial *
Developing model ordinance
$150Special *
* Integrated Waste Management Account
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STAFF COMMENTS: Suspense file. As proposed to be amended.
Under current law, local governments are required to divert 50
percent of solid waste from landfills. The California Integrated
Waste Management Board (Waste Board) is responsible for
monitoring compliance with this requirement. Current law
requires operators of solid waste facilities to pay the state at
"tipping fee" of $1.40 per ton. Revenues from this fee are
deposited in the Integrated Waste Management Account. The Waste
Board is authorized to implement several grant and loan programs
to encourage recycling and reduce waste and the impacts on waste
SB 25 (Padilla)
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on health and the environment, which are funded from the
Account.
The bill increases the existing tipping fee from $1.40 per ton
to $2.13 per ton after January 2012. Based on current levels of
disposal, this should generate about $25 million per year in
additional revenue. The tipping fee would be adjusted for
inflation every two years thereafter.
SB 25 requires cities and counties to increase diversion of
solid waste to 60 percent by 2015. The bill also sets a
statewide goal of 75 percent waste diversion by 2020.
The bill requires businesses that generate more than four cubic
yards of waste and recyclable materials to arrange for recycling
services to the extent those services are available. The bill
requires local governments in counties with a population over
200,000 to develop a commercial recycling ordinance, which would
require specified businesses to meet recycling requirements.
The bill authorizes the Waste Board to establish an Illegal
Dumping Prevention Program to provide grants and loans to local
governments to assist in the prevention of illegal dumping. The
bill does not specify the scope of the new program, so it is
impossible to predict the costs to administer the program or the
amount of grants and loans that may be provided. All funds would
be available only upon appropriation by the Legislature.
The bill requires the Waste Board to develop a model ordinance
for use by local governments by January 2011. The model
ordinance would establish criteria and requirements for
residential refuse service providers. The cost to develop such a
model ordinance would likely be about $300,000 over two fiscal
years.
The bill also makes several procedural and technical changes to
existing code sections relating to solid waste.
As proposed to be amended by author, implementation of the new
grant and loan program as well as the development of a model
ordinance will be delayed until the increase in the tipping fee
occurs.