BILL ANALYSIS
SB 730
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator S. Joseph Simitian, Chairman
2009-2010 Regular Session
BILL NO: SB 730
AUTHOR: Wiggins
AMENDED: As Introduced
FISCAL: No HEARING DATE: May 4, 2009
URGENCY: No CONSULTANT: Caroll
Mortensen
SUBJECT : SOLID WASTE: GRANT AND LOAN ELIGIBILITY
SUMMARY :
Existing law , under the California Integrated Waste Management
Act, (Act):
1) Requires each city or county source reduction and recycling
element to include an implementation schedule that shows a
city or county must divert 25% of solid waste from landfill
disposal or transformation by January 1, 1995, through
source reduction, recycling, and composting activities, and
must divert 50% of solid waste on and after January 1,
2000.
2) Requires permitting and oversight, in partnership with
local enforcement agencies, solid waste facilities,
including landfills that manage solid waste, and provide
for the safe disposal of the waste that can not be
diverted.
3) Requires an operator of a solid waste facility to pay a
quarterly fee (tipping fee) to the Board of Equalization
(BOE) in an amount established by the Integrated Waste
Management Board (IWMB) sufficient to generate revenues
equivalent to the approved budget for that fiscal year,
including a prudent reserve. The fee cannot exceed $1.40
per ton. Revenue from the fees must be deposited in the
Integrated Waste Management Account.
4) Establishes within the Act and related programs various
non-general fund loan and grant programs including but not
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limited to the following: Recycling Market Development
Revolving Loan Program; Waste Tire Grants and Loans; Used
Oil Recycling Grants; Household Hazardous Waste Grants;
Solid Waste Disposal Cleanup Grants; Farm and Ranch Cleanup
Grants.
5) Establishes, pursuant to the Electronic Waste Recycling
Act, a payment system for collectors and recyclers of
electronic wastes as specified.
This bill prohibits a public entity from receiving from IWMB
any grants, loans, loan guarantees, or any other financial
incentives administered by the IWMB if the public entity
disposes of solid waste in a facility that does not meet
applicable standards or if the waste is disposed of
out-of-state.
COMMENTS :
1) Purpose of Bill . According to the author, this bill seeks
to ensure that solid waste materials are properly disposed
of in-state and that less solid waste material be sent
out-of-state. It is imperative that local jurisdictions
dispose of their solid waste in California landfill
facilities that are properly permitted and managed in order
to ensure the most appropriate and environmentally sound
disposal of waste which does not negatively impact or harm
the public health. Also, the bill seeks to address the
problem of solid waste being exported out-of-state and
resulting loss of revenue. For example, in 2000 nearly
750,000 tons of waste was exported to out-of-state
landfills, resulting in a loss of nearly $1 million in
revenues. Currently, the tipping fee is $1.40 per ton.
2) IWMB Financial Assistance . The IWMB offers extensive
financial assistance resources to local jurisdictions to
help them manage the varied solid waste stream. For
example in 2008, the IWMB awarded more than $41 million in
grants to approximately 600 governmental, educational and
private entities statewide. This included:
Markets related grants -- 170 awards for almost
$18 million.
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Enforcement/Compliance Program grants -- 107
awards for more than $11.7 million.
Entitlement grants to local jurisdictions -- 285
awards for more than $11.4 million.
The IWMB also implements the Electronic Waste Recycling
Act, which includes payments to recyclers and processors of
certain electronic wastes such as televisions and computer
screens. Many local jurisdictions participate in this
program as recyclers. Under this bill, local jurisdictions
that ship waste out-of-state would not eligible for these
types of financial assistance.
3)Out-of-State Waste . In 2007, of the 40 million tons of
solid waste destined for disposal, approximately 500,000
tons was disposed outside of California. Depending on
market demand, weather, and other factors the amount of
solid waste exported for disposal fluctuates between about
400,000 and a million tons per year. The state tipping fee
of $1.40 is not collected on this waste resulting in a
corresponding loss of revenue of between $500,000 and
$1 million annually.
4)Fee Equity . Jurisdictions that ship their waste
out-of-state, and thus do not pay the tipping fee, still
receive benefits from the IWMB through grants and loans as
well as technical assistance all paid through the tipping
fee. This leads to equity issues for those jurisdictions
that do pay the tipping fee.
5)Solid Waste Facility Standards . Waste disposed in
California must be managed in accordance with a suite of
laws and regulations to protect public health and safety and
the environment. This bill calls for the prohibition of
financial assistance to local jurisdictions for waste that
is not handled in accordance with those laws and
regulations. Other states also have similar, albeit
arguably not as stringent, requirements for waste management
and disposal. There are also federal laws and regulations
that establish minimum standards for solid waste disposal.
6)Another Approach . A more direct approach in dealing with
this issue would be to apply the tipping fee to waste being
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disposed out-of-state. This would provide equity without
the potential of denying local jurisdictions access to
valuable solid waste resources.
7)Amendments Needed . Based on the approach in #6 above, the
bill should be amended to apply the tipping fee to waste
being shipped out-of-state.
SOURCE : Senator Wiggins
SUPPORT : None on file
OPPOSITION : Lassen Regional Solid Waste Management
Authority
Regional Council of Rural Counties