BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 1826
          Author:   Chesbro (D), et al.
          Amended:  8/6/14 in Senate
          Vote:     21


           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  5-1, 6/25/14 
          AYES:  Hill, Hancock, Jackson, Leno, Pavley
          NOES:  Gaines
          NO VOTE RECORDED:  Fuller

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  54-22, 5/15/14 - See last page for vote


          SUBJECT  :    Solid waste:  organic waste

           SOURCE  :     Author


           DIGEST  :    This bill requires a business that generates a  
          specified amount of organic waste per week to arrange for  
          recycling services for that organic waste, in a specified  
          manner.

           ANALYSIS  :    

          Existing law, under the California Integrated Waste Management  
          Act of 1989:

          1.Specifies a state policy goal that 75% of solid waste  
            generated be diverted from landfill disposal by 2020.
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          2.Requires each local jurisdiction to divert 50% of solid waste  
            from landfill disposal.

          3.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.

          4.Requires, under the California Global Warming Solutions Act of  
            2006 (commonly referred to as AB 32), 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.

          This bill:

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

             A.   Beginning April 1, 2016, a business that generates eight  
               cubic yards or more of organic waste per week;

             B.   Beginning January 1, 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).

          1.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  
            makes findings as to the purpose of and need for the  
            exemption.


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

          3.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.

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

          5.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  
               that includes collection and recycling of organic waste.

             B.   Recycle its organic waste for recycling 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.

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

          2.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.

          3.On and after January 1, 2016, requires each local jurisdiction  
            to implement an organic waste recycling program that is  

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            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.

          4.Requires the program to:

             A.   Identify barriers to siting new or expanded compostable  
               materials handling operations, as defined, and specify a  
               plan to remedy those barriers that are within the control  
               of the local jurisdiction.

             B.   Provide education, outreach and monitoring for  
               businesses.

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

          1.Specifies that an "organic waste recycling facility" shall  
            include compostable materials handling operations, as defined,  
            and may include other facilities that recycle organic waste.

          2.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.

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

             A.   Lack of sufficient space in multifamily complexes or  
               businesses to provide additional organic material recycling  
               bins.

             B.   The current implementation by a business of actions that  
               result in the recycling of a significant portion of its  
               organic waste.

             C.   The business or group of businesses does not generate at  

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               least one-half of a cubic yard of organic waste per week.

             D.   Limited-term exemptions for extraordinary and unforeseen  
               events.

             E.   The business or group of businesses does not generate at  
               least one cubic yard of organic waste per week, if the  
               local jurisdiction provides CalRecycle with information  
               that explains the need for this higher exemption, as  
               specified, and information on the number of businesses that  
               generate organic waste. Makes this exemption inoperative on  
               or after January 1, 2020, if CalRecycle finds that  
               statewide organics disposal has not reduced 50% of the  
               level of disposal during 2014.

          1.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.

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

          3.Specifies that this bill does not limit the authority of a  
            local jurisdiction to adopt requirements that are more  
            stringent than this bill and clarifies that this 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.

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

          1.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.

          2.Requires CalRecycle to cooperate with local governmental  

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            agencies and the solid waste industry to provide assistance  
            for increasing the feasibility of organic waste recycling and  
            requires CalRecycle to post funding mechanisms available for  
            the development of organic waste infrastructure.

          3.Requires CalRecycle to identify and post on its Internet Web  
            site state financing mechanisms and state funding incentives  
            that are available for in-state development of organic waste  
            infrastructure to help the state achieve its GHG reduction  
            goals and waste reduction goals.

           Background
           
           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.

           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  

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          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 require 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 eight 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 organic  
          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 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.

           Related Legislation
           
          AB 1594 (Williams, 2014) phases out solid waste diversion  
          credit, for green material used as landfill cover.

          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  

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          and after January 1, 2012. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/5/14)

          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
          Cities of Los Angeles, San Francisco, and 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
          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

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          Natural Resources Defense Council
          NatureWorks
          Northern California Recycling Association
          Novamont
          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.
          StopWaste
          Synergex International
          U.S. Composting Council
          Vasko Electric, Inc.
          Waste Management

           OPPOSITION  :    (Verified  8/5/14)

          Cities of Commerce, and West Hollywood
          Los Angeles County Solid Waste Management Committee/Integrated  
          Waste                                                   
          Management Task Force
          San Luis Obispo County, Integrated Waste Management Authority

           ARGUMENTS IN SUPPORT :    StopWaste writes, "Despite California's  
          robust recycling infrastructure for traditional recyclables, the  
          state continues to landfill organic materials, such as plant  
          debris and food scraps, at an alarming rate.  In fact, food is  
          the most prevalent item in our waste stream and a third of the  
          material going to landfills is readily compostable.  In the  
          context of achieving a 75% recycling rate and strict greenhouse  
          gas limits, it would not be responsible to landfill this  
          material.  Our county has addressed this issue by banning plant  
          debris in the landfill and by adopting a commercial mandatory  
          recycling ordinance which requires businesses to recycle  
          traditional recyclables and organics, by specified dates.  We  
          strongly suggest that the bill use the "volume of solid waste"  
          as threshold for identifying affected businesses, instead of the  
          "volume of organics," to make the law more easily implementable  
          by businesses.

          "Tackling organics is a critical part of achieving the goals in  
          AB 341 and AB 32.  According to CalRecycle "the75% goal cannot  

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          be reached unless a significant amount of organics now being  
          landfilled is instead used in new composting/AD facilities," and  
          the ARB has repeatedly identified the importance of composting  
          and anaerobic digestion to reduce greenhouse gases.   
          Nonetheless, the building of organics processing infrastructure  
          has been hindered by a complex regulatory structure and state  
          policies that have supported low-cost disposal alternatives.  AB  
          1826 will work to address this regulatory complexity with a goal  
          of augmenting compost processing capacity in the state."

           ARGUMENTS IN OPPOSITION  :    The City of Commerce writes to  
          address the following concerns:

          [?]
           
          Lack of Infrastructure to Process Organic Waste  .  While we  
          appreciate the benefits of composting, our region's urban nature  
          prevents the siting of commercial-scale compost facilities  
          capable of processing the region's organic waste.  The region  
          simply needs other options to process organic waste, otherwise  
          the waste would need to be transported outside the region, which  
          is costly, economically and environmentally.  We believe robust  
          state-administered grant and loan programs are critical to  
          helping the organic waste processing industry in our region get  
          off the ground.

           Undefined Key Terms  .  The lack of definitions for "organic waste  
          recycling" and "organic waste recycling facility" leaves  
          uncertainty for jurisdictions.  Moreover, the term "reasonable  
          vicinity" is highly subjective, which necessitates a definition  
          as well.

           Excessive Requirements on Jurisdictions  .  In addition to the  
          difficult tasks of developing an organic waste recycling program  
          as well as identifying, notifying, and monitoring affected  
          businesses, local programs would be required to identify vacant  
          parcels, existing vacant or expandable facilities, zoning and  
          permitting requirements, and steps towards removal of barriers  
          and siting and/or expanding "organic waste recycling  
          facilities."  These requirements are excessive and seem to  
          infringe upon local land use decision making authority.

           ASSEMBLY FLOOR  :  54-22, 5/15/14
          AYES:  Alejo, Ammiano, Bloom, Bocanegra, Bonilla, Bonta,  

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            Bradford, Buchanan, Ian Calderon, Campos, Chau, Chesbro,  
            Cooley, Dababneh, Daly, Dickinson, Eggman, Fong, Frazier,  
            Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Hall, Roger  
            Hern�ndez, Holden, Jones-Sawyer, Levine, Lowenthal, Mullin,  
            Muratsuchi, Nazarian, Nestande, Pan, Perea, John A. P�rez, V.  
            Manuel P�rez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,  
            Rodriguez, Salas, Skinner, Stone, Ting, Waldron, Weber,  
            Wieckowski, Williams, Yamada, Atkins
          NOES:  Achadjian, Allen, Bigelow, Ch�vez, Conway, Dahle,  
            Donnelly, Fox, Beth Gaines, Gorell, Grove, Hagman, Harkey,  
            Jones, Linder, Logue, Maienschein, Melendez, Olsen, Patterson,  
            Wagner, Wilk
          NO VOTE RECORDED:  Brown, Mansoor, Medina, Vacancy


          RM:e  8/6/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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