BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 730|
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THIRD READING
Bill No: SB 730
Author: Wiggins (D)
Amended: 5/6/09
Vote: 21
SENATE ENV. QUALITY COMMITTEE : 5-2, 5/4/09
AYES: Simitian, Corbett, Hancock, Lowenthal, Pavley
NOES: Runner, Ashburn
SENATE APPROPRIATIONS COMMITTEE : 8-5, 5/26/09
AYES: Kehoe, Corbett, DeSaulnier, Hancock, Leno, Oropeza,
Wolk, Yee
NOES: Cox, Denham, Runner, Walters, Wyland
SUBJECT : Solid waste: grants and loans: eligibility
SOURCE : Author
DIGEST : This bill extends the tipping fee paid on solid
waste disposal to operators of transfer or processing
stations that transfer solid waste out the state.
ANALYSIS : Under current law, operators of solid waste
facilities are required to pay a "tipping fee" to the state
of $1.40 per ton. Currently, tipping fees generate about
$50 million per year in revenues. These funds are used by
the California Integrated Waste Management Board (CIWMB) to
provide grants and loans to local governments, educational,
and private entities for projects that reduce waste or
clean up waste, as well as to provide technical assistance
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SB 730
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from the California Integrated Waste Management Board to
local governments.
This bill requires the operators of transfer or processing
stations that transfer waste out of the state for disposal
to pay the tipping fee of $1.40 per ton on such waste.
Based on the amount that was transferred out of the state
in recent years, the bill increases revenues into the
Integrated Waste Management Account by about $630,000 per
year, less the cost of collecting the fees.
Background
Out-of-State Waste . In 2007, of the 40 million tons of
solid waste destined for disposal, approximately 500,000
tons were 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 between $500,000 and $1
million annually.
Fee Equity . Jurisdictions that ship their waste
out-of-state, and thus do not pay the tipping fee, still
receive benefits from the CIWMB 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11
2011-12 Fund
Additional tipping ($315) ($630)
($630) Special*
fee revenue
*Integrated Waste Management Account
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OPPOSITION : (Verified 5/28/09)
Lassen Regional Solid Waste Management Authority
Regional Council of Rural Counties
ARGUMENTS IN SUPPORT : According to the author's office,
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.
TSM:cm 5/28/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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