BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1826
                                                                  Page  1

          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1826 (Chesbro) - As Amended:  April 22, 2014 

          Policy Committee:                              Natural  
          ResourcesVote:5-2

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

           SUMMARY

           This bill requires specified businesses that generate organic  
          waste to arrange for recycling services for the material.  This  
          bill also requires CalRecycle to:

          1)Identify and recommend actions to address state and federal  
            permitting and siting challenges and to encourage the  
            continued viability of the state's organic waste processing  
            and recycling infrastructure.   

           2)Cooperate with local government agencies and the solid waste  
            industry to provide assistance and incentives for increasing  
            the feasibility of organic waste recycling.  
           
          FISCAL EFFECT

           Minor, absorbable costs for CalRecyle to recommend actions and  
          provide assistance.

           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%  








                                                                  AB 1826
                                                                  Page  2

            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.   
           
            Landfill gas is generated by the decomposition of organic  
            materials such as food, paper, wood, and yard waste.  Fifty  
            percent of landfill gas is methane, a GHG that is 21 times  
            more efficient at trapping heat than carbon dioxide.  While  
            most modern landfills have systems in place to capture  
            methane, significant amounts continue to escape into the  
            atmosphere.  According to ARB's GHG inventory, approximately 7  
            million tons of CO2 equivalent are released annually by  
            landfills.  That number is expected to increase to 8.5 million  
            tons of CO2 equivalent by 2020.

            The Governor's 2014-15 Budget proposal for cap-and -trade  
            revenues, the Cap-and-Trade Auction Revenue Expenditure Plan,  
            requests $30 million for each of the next two years for  
            CalRecycle to support projects designed to increase recycling  
            and composting.  The proposal includes $20 million for grants  
            to expand existing or develop new facilities that process  
            organic or recyclable materials. 

           3)Previous Legislation.    Last year, AB 323 would have required  
            CalRecycle to adopt regulations by January 1, 2017 to require  
            a large-quantity commercial organics generator to arrange for  
            separate organics collection and recycling services.  AB 323  
            also contained provisions relating to alternative daily cover  
            in landfills and was held on this committee's suspense file.   
            Unlike AB 323, this bill does not require CalRecycle to adopt  
            regulations.


           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081