BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 323
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          Date of Hearing:   May 24, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 323 (Chesbro) - As Introduced:  February 12, 2013

          Policy Committee:                              Natural  
          ResourcesVote:6-3

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill requires CalRecyle to phase-out recycling credit for  
          green waste used in the operation of a landfill.  Specifically,  
          this bill requires CalRecycle to: 

          1)Adopt regulations by January 1, 2020 to specify the use of  
            green material as alternative daily or intermediate cover (ADC  
            or IC) does not constitute diversion.  Authorizes CalRecycle  
            to delay the effective date of the regulations for up to two  
            years as specified.

          2)Analyze the public health and safety effects of the use of  
            residual fines (e.g., the material left over after removing  
            the recyclable materials) from material recovery facilities  
            (MRFs) and materials left over from the composting process  
            (compost overs) for ADC and other forms of beneficial use.  On  
            or before January 1, 2015, adopt regulations for the use of  
            MRF fines as an authorized material for use as ADC and  
            beneficial reuse at solid waste facilities in the state as  
            specified. 

          3)Adopt regulations by January 1, 2017 that would require a  
            large-quantity commercial organics generator to arrange for  
            separate organics collection and recycling services.

           FISCAL EFFECT

           1)One-time cost to CalRecyle of approximately $250,000 from the  
            Integrated Waste Management Fund to adopt regulations to  
            specify that the use of green material as specified is not a  
            waste diversion.








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            By changing alternative daily cover from a beneficial use to  
            disposal, CalRecycle will be able to charge the tipping fee on  
            green waste.  The current tipping fee is set at $1.40 per ton
            Currently, about 1.7 million tons of green waste is used as  
            ADC and 6 thousand tons of green waste is used as AIC. 

          2)One-time cost to CalRecycle of about $250,000 from the  
            Integrated Waste Management Fund to adopt regulations  
            requiring a large-quantity commercial organics generator to  
            arrange for separate collection and recycling services.
             
          3)One-time costs of $100,000 per year for two-years to conduct  
            the analysis to determine if residual fines from material  
            recovery or composting facilities can be used for alternative  
            daily cover.


           COMMENTS  

           1)Purpose.   This bill is intended help achieve the state's air  
            quality, GHG, and waste reduction goals by diverting organic  
            materials from landfills.  According to the author,  Recycling  
            organic waste provides significant GHG reductions over  
            landfilling.  Composting and other organics processing  
            technologies, including anaerobic digestion, reduce GHGs by  
            avoiding the emissions that would be generated by the  
            material's decomposition in a landfill.   

          2)Background.   CalRecycle is tasked with diverting at least 75%  
            of solid waste statewide by 2020.  Currently, organic  
            materials make up one-third of the waste stream and food  
            continues to be the highest single item disposed at over 15%  
            of disposal.   
           
           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081
















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