BILL ANALYSIS                                                                                                                                                                                                    �



                                                               AB 1826
                                                                       

                                          .
                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Jerry Hill, Chair
                              2013-2014 Regular Session
                                           
           BILL NO:    AB 1826
           AUTHOR:     Chesbro
           AMENDED:    June 16, 2014
           FISCAL:     Yes               HEARING DATE:     June 25, 2014
           URGENCY:    No                CONSULTANT:    Rebecca Newhouse
            
           SUBJECT  :    SOLID WASTE:  ORGANIC WASTE

            SUMMARY  :    
           
            Existing law  :

           1) Under the California Integrated Waste Management Act of 1989  
              (Public Resources Code �40000 et seq.): 

              a)    Specifies a state policy goal that 75% of solid waste  
                 generated be diverted from landfill disposal by 2020. 

              b)    Requires each local jurisdiction to divert 50% of  
                 solid waste from landfill disposal.

              c)    Requires a commercial waste generator, including  
                 multi-family dwellings, to arrange for recycling services  
                 and requires local governments to implement commercial  
                 solid waste recycling programs designed to divert solid  
                 waste from businesses.

           2) Under the California Global Warming Solutions Act of 2006  
              (commonly referred to as AB 32), requires the Air Resources  
              Board (ARB) to determine the 1990 statewide greenhouse gas  
              (GHG) emissions level and approve a statewide GHG emissions  
              limit that is equivalent to that level, to be achieved by  
              2020, and to adopt GHG emissions reductions measures by  
              regulation.  ARB is authorized to include the use of  
              market-based mechanisms to comply with these regulations.   
              (Health and Safety Code �38500 et seq.).











                                                               AB 1826
                                                                 Page 2


            This bill  :  

           1) Requires businesses that generate organic waste to arrange  
              for recycling services for that material on the following  
              schedule:  

              a)    Beginning January 1, 2016, a business that generates  
                 eight cubic yards or more of organic waste per week;

              b)    Beginning January 2, 2017, a business that generates  
                 four cubic yards or more of organic waste per week; and, 

              c)    On and after January 1, 2019, a business that  
                 generates four cubic yards or more of solid waste per  
                 week, or two cubic yards of solid waste if specified  
                 findings are made by the Department of Resources  
                 Recycling and Recovery (CalRecycle).  

           2) Exempts a business from the above requirements if it is in a  
              rural jurisdiction, as defined, where the county board of  
              supervisors of the county, city or regional agency that  
              contains the rural jurisdiction, adopts a resolution that  
              make findings as to the purpose of and need for the  
              exemption.

           3) Makes the above exemption inoperative on or after January 1,  
              2020, if CalRecycle finds that statewide organics disposal  
              has not reduced 50% from 2014 levels, and that applying the  
              diversion requirements in rural jurisdictions will result in  
              significant additional reductions of disposal or organic  
              waste. 

           4) Defines "business" as a commercial or public entity  
              including, but not limited to, a firm, partnership,  
              proprietorship, joint stock company, corporation, or  
              association that is organized as a non-profit or for-profit  
              entity, or a multifamily dwelling.  

           5) Defines "organic waste" as food waste, green waste,  
              landscape and pruning waste, non-hazardous wood waste, and  
              food-soiled paper mixed with food waste.










                                                               AB 1826
                                                                 Page 3

           6) Defines "organic waste recycling facilities" as composting  
              facilities or as an operation or facility that processes,  
              transfers, or stores compostable material. 
           7) Requires businesses that generate organic waste generators  
              that are subject to the organic recycling requirements in  
              this bill to do one of the following:

              a)    Source separate organic waste from other waste and  
                 subscribe to a basic level of organic recycling service.

              b)    Source separate organic waste from other solid waste  
                 and manage its organic waste on site or self-haul its own  
                 organic waste.

              c)    Subscribe to an organic waste recycling service that  
                 may include mixed waste processing that specifically  
                 recycles organic waste, or make other arrangements  
                 consistent with selling or donating the waste. 

           8) Requires businesses that contract for landscaping or  
              gardening services to require that the organic waste  
              generated be recycled in compliance with the bill.  

           9) Specifies that multifamily dwellings of fewer than five  
              units are exempt from the requirements of this bill, and  
              specifies that food waste generated by multifamily dwellings  
              of five or more units is not subject to the requirements of  
              this bill.  

           10)On and after January 1, 2016, requires each local  
              jurisdiction to implement an organic waste recycling program  
              that is appropriate for the jurisdiction and designed to  
              divert organic waste generated by businesses.  Specifies  
              that local jurisdictions that have an organic waste  
              recycling program in place prior to January 1, 2016, and  
              that meet certain requirements, do not have to implement a  
              new or expanded program.
                
           11)Requires the program to:

              a)    Identify existing solid waste recycling and organic  
                 waste recycling efforts in the jurisdiction, permit and  
                 zoning requirements, incentives and barriers for organic  









                                                               AB 1826
                                                                 Page 4

                 waste recycling development and other specified items.

              b)    Provide education, outreach and monitoring for  
                 businesses.

              c)    Notify the businesses if they are not in compliance  
                 with the organic waste recycling requirements. 

           12)Authorizes organic waste recycling programs to include a  
              mandatory organic waste recycling policy or ordinance,  
              mandatory commercial organic waste recycling through a  
              franchise contract or agreement or requirement for organic  
              waste processing to divert organic materials from disposal.

           13)Authorizes the organic waste recycling program to include  
              enforcement provisions, certification requirements for  
              self-haulers and to exempt businesses from the requirements  
              of the bill on a case-by-case basis for specified reasons.  

           14)Requires local jurisdictions to include specified  
              information relating to the organic waste recycling program  
              in each jurisdiction's annual report to CalRecycle and  
              requires CalRecycle to review a jurisdiction's compliance  
              annually. 

           15)Specifies that if a local jurisdiction adds or expands an  
              organic waste recycling program pursuant to the bill, it is  
              not required to update its source reduction and recycling  
              element or obtain CalRecycle's approval.  

           16)Specifies that the bill does not limit the authority of a  
              local jurisdiction to adopt requirements that are more  
              stringent than the bill and clarifies that the bill does not  
              modify, limit, or abrogate: 

              a)    A solid waste franchise granted by a local government;  

                  
              b)    A contract, license, or permit to collect solid waste  
                 granted by a local government; or,

              c)    The existing right of a business to sell or donate its  
                 recyclable organic waste materials.  









                                                               AB 1826
                                                                 Page 5


           17)Requires CalRecycle to 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.

           18)Requires CalRecycle to cooperate with local government  
              agencies and the solid waste industry to provide assistance  
              and incentives for increasing the feasibility of organic  
              waste recycling and requires CalRecycle to post funding  
              mechanisms available for the development of organic waste  
              infrastructure. 

            
           COMMENTS  :

            1) Purpose of Bill  .  According to the author, "AB 1826 will  
              help California achieve the state's air quality, GHG, and  
              waste reduction goals by diverting organic materials from  
              landfills."

            2) Statewide Waste Diversion Goals  . CalRecycle is tasked with  
              diverting at least 75% of solid waste statewide by 2020.   
              Currently, organic materials, including green waste, make up  
              one-third of the waste stream (approximately 11 million  
              tons) and food waste continues to be the highest single  
              category of disposal at over 15%. Green materials, such as  
              lumber, cardboard, and leaves and grass comprise over 20%. 

              CalRecycle is also charged with implementing its Strategic  
              Directive 6.1, which calls for reducing organic waste  
              disposal by 50% by 2020.  According to CalRecycle,  
              significant gains in organic waste diversion (through  
              recycling technologies for organic waste including  
              composting and anaerobic digestion) are necessary to meet  
              the 75% goal and to implement Strategic Directive 6.1.   
              Anaerobic digestion, which produces biogas that can be  
              processed to biomethane fuel, is particularly suited to  
              handle food waste.  Green waste is more efficiently  
              processed through composting.  Compost, in addition to  
              improving the quality of soil, prevents soil erosion,  
              reduces the need for chemical fertilizers and pesticides,  
              and enables better soil water retention.









                                                               AB 1826
                                                                 Page 6


            3) Greenhouse Gasses and Organic Waste  .  Landfill gas is  
              generated by the anaerobic decomposition of organic  
              materials such as food, paper, wood, and green material.   
              Fifty percent of landfill gas is methane, a GHG with a much  
              shorter life, but much higher global warming potential than  
              CO2 (methane is approximately 25 times more efficient at  
              trapping heat than carbon dioxide over a 100-year time  
              span).  Depending on the types of solid waste, the chemical  
              makeup of landfill biogas can vary greatly from the biogas  
              produced from dairy farms and municipal solid waste and  
              wastewater treatment facilities.

              Local air districts regulate air emissions from stationary  
              sources and have adopted rules to implement federal and  
              state emission standards for municipal solid waste  
              landfills, primarily targeting reductions in ozone  
              precursors and hazardous air pollutants, but which also  
              provide supplemental methane emission reductions. 

              In 2009, pursuant to authority under AB 32 as a discrete  
              early action measure, landfill methane capture regulations  
              were adopted and requires owners and operators of certain  
              uncontrolled municipal solid waste landfills to install gas  
              collection and control systems for methane emissions, and  
              requires existing and newly installed gas and control  
              systems to operate in an optimal manner.  Often, these  
              emission control systems involve a combustion step as a way  
              to reduce the emissions of methane and other organics. 

              Even with advanced methane landfill control systems,  
              however, significant amounts of methane from landfills  
              continue to escape into the atmosphere.  According to ARB's  
              updated Scoping Plan, approximately 8 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.

              Recycling organic waste provides significant GHG emission  
              reductions over landfilling.  Composting and other organics  
              processing technologies, including anaerobic digestion,  
              reduce GHG emissions by avoiding the emissions that would be  
              generated by the material's decomposition in a landfill. In  









                                                               AB 1826
                                                                 Page 7

              the case of anaerobic digestion, the process produces  
              methane from the organic waste in a controlled environment  
              for use as a renewable fuel, and results in climate benefits  
              by both reducing GHGs from landfills, and displacing fossil  
              fuels. 

            4) AB 341 (Chesbro)  . AB 341 (Chesbro) Chapter 476, Statutes of  
              2011, requires businesses and multifamily residential  
              dwellings of five or more units that generate more than four  
              cubic yards of solid waste per week to separate recyclable  
              materials from solid waste and "subscribe to a basic level  
              of recycling service" that includes collection,  
              self-hauling, or other arrangements for the pickup of the  
              recyclable materials or subscribe to a recycling service  
              that may include mixed waste processing that yields  
              diversion results comparable to source separation.

              AB 1826 creates a similar framework to AB 341 specifically  
              for commercial generators of organic waste and requires  
              businesses and multifamily residential dwelling to either  
              source separate organic waste and subscribe to a "basic  
              level of organic recycling service," source separate and  
              manage on-site or self-haul, or subscribe to an organic  
              waste recycling service that may include mixed waste  
              processing.

              However, AB 1826 is unclear regarding what a "basic level of  
              organic recycling service" includes. 

              An amendment is needed to specify that a basic level of  
              organic recycling service includes collection and recycling  
              of organic waste.  
           
            5) Organic Waste Recycling Facilities  . The bill currently  
              defines organic waste recycling facilities as composting,  
              anaerobic digesting (AD), or chipping facilities. Local  
              jurisdictions, as a part of their organic waste recycling  
              programs, are required to identify various types of these  
              facilities, as a part of their annual reporting to  
              CalRecycle. Although these are important types of organic  
              waste recycling facilities, they do not represent the only  
              types of facilities or ways that local jurisdictions can  
              recycle their organics. For instance, the definition  









                                                               AB 1826
                                                                 Page 8

              excludes small scale composting facilities, and the reuse of  
              organics through agricultural feed. 

              In order to ensure that local governments have ample  
              flexibility when developing their programs, the definition  
              of "organic waste recycling facility" should be removed from  
              the bill.
           
            6) Rural County Exemption  .  AB 1826 defines a rural  
              jurisdiction as a jurisdiction located within a rural county  
              (defined as having a population under 100,000) or a regional  
              agency comprised of jurisdictions that are located within  
              one or more rural counties. 

              California has a total of 58 counties, 23 of which would be  
              considered "rural counties" under the bill.  According to  
              CalRecycle, these counties account for approximately 2.2% of  
              the solid waste stream.  AB 1826 allows these jurisdictions,  
              through the adoption of a resolution with findings on the  
              purpose and need for their exemption, to exempt themselves  
              from the provisions of this bill.  AB 1826, however, sunsets  
              this exemption in 2020, if CalRecycle is not meeting a 50%  
              reduction in organic waste diversion from levels in 2014 and  
              determines that inclusion of rural jurisdictions would  
              significantly contribute to meeting this goal. 





            7) Technical amendments  . The following technical and clarifying  
              amendments are needed:

              a)    For clarity and consistency with other provisions of  
                 the bill, the phrase "has not decreased by 50 percent  
                 from" on page 4, line 19, should be changed to "has not  
                 been reduced to 50 percent of." 

              b)    An incorrect section reference on page 5, line 7  
                 should be changed from 42469.84 (which does not exist) to  
                 42649.82.  

              c)    A reference to subparagraph (A) should be included on  









                                                               AB 1826
                                                                 Page 9

                 page 6, line 14. 

            8) Related Legislation  .

              a)    AB 1594 (Williams) of 2014, phases out solid waste  
                 diversion credit for green material used as landfill  
                 cover. AB 1594 will be heard by the Senate Environmental  
                 Quality Committee on June 25th. 

              b)    AB 341 (Chesbro), Chapter 476, Statutes of 2011,  
                 requires businesses and multifamily dwellings that  
                 generate at least four cubic yards of solid waste to  
                 arrange for recycling services on and after January 1,  
                 2012. 

            SOURCE  :        Author  

           SUPPORT  :       American Biogas Council
                          Association of Compost Producers
                          Biodegradable Products Institute
                          Bioenergy Association of California
                          Breathe California
                          California Biomass Energy Alliance
                          California Climate and Agriculture Network
                          California Coastal Protection Network
                          California League of Conservation Voters
                          California Resource Recovery Association
                          Californians Against Waste
                          Castaway Solutions
                          Center for Biological Diversity
                          City of Los Angeles
                          City of San Francisco
                          City of San Jose
                          CleanWorld
                          Clean Power Campaign
                          Coalition for Clean Air
                          Community Alliance with Family Farmers
                          Costa Mesa Sanitary District
                          County of San Francisco
                          CR&R Environmental Services
                          East Bay Municipal Utility District
                          Ecology Center
                          Environment California









                                                               AB 1826
                                                                 Page 10

                          Frank M. Booth Design Build Co.
                          GAIA
                          Global Green USA
                          GrassRoots Recycling Network
                          Greenaction
                          GreenWaste Recovery
                          Harvest Power
                          Inland Empire Disposal Association
                          LAANE
                          Los Angeles County Waste Management Association
                          Marin County Hazardous and Solid Waste  
                          Management 
                                   Joint Powers Authority
                          Napa Recycling & Waste Services
                          Natural Resources Defense Council
                          NatureWorks
                          Northern California Recycling Association
                          Peabody Engineering
                          Planning and Conservation League
                          Recology
                          Rethink Waste/South Bayside Waste Management  
                          Authority
                          Sierra Club, California
                          Solid Waste Association of Orange County
                          Sonoma Compost Co.
                          Synergex International
                          US Composting Council
                          Vasko Electric, Inc.
            
           OPPOSITION  :    California Restaurant Association
                          City of Commerce
                          City of West Hollywood
                          County Sanitation Districts of Los Angeles  
                          County
                          Los Angeles County Solid Waste Management 
                                 Committee/Integrated Waste Management  
                          Task Force
                          San Luis Obispo County, Integrated Waste 
                                  Management Authority
            
            











                                                               AB 1826
                                                                 Page 11