BILL ANALYSIS                                                                                                                                                                                                    



                                                               SB 1016
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2007-2008 Regular Session
                                           
           BILL NO:    SB 1016
           AUTHOR:     Wiggins
           AMENDED:    August 14, 2008
           FISCAL:     Yes               HEARING DATE:     August 20,  
           2008
           URGENCY:    No                CONSULTANT:       Caroll  
           Mortensen
            
           SUBJECT  :    SOLID WASTE:  DIVERSION RATE MEASUREMENT
                       AND REPORTING

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

           1)Requires each city or county source reduction and recycling  
             element to include an implementation schedule that shows a  
             city or county must divert 25% of solid waste from landfill  
             disposal or transformation by January 1, 1995, through  
             source reduction, recycling, and composting activities, and  
             must divert 50% of solid waste on and after January 1, 2000.

           2)Requires each city, county, or regional agency to annually  
             submit a report to the California Integrated Waste  
             Management Board (CIWMB) summarizing its progress in  
             reducing solid waste, and requires the report to contain  
             certain information (e.g., calculations of annual disposal  
             reduction, information on changes in waste generated or  
             disposed, progress in diverting construction and demolition  
             waste material).

           3)Requires CIWMB to determine compliance status for cities and  
             counties by reviewing the report above in comparison to the  
             documents submitted to CIWMB that describe how they are  
             going to achieve and maintain the 50% diversion rate.   
             Jurisdictions are found to be in compliance by meeting or  
             exceeding the 50% diversion rate and implementing the  
             programs described in their plans or by making a good faith  









                                                               SB 1016
                                                                 Page 2

             effort to implement their programs but not achieving the 50%  
             diversion rate.  Jurisdictions who do not meet the above are  
             placed on compliance orders and are subject to fines.

            
           This bill  :  

           1)Requires that on and after January 1, 2009, CIWMB will  
             determine compliance with the diversion goals established by  
             the Act by comparing each jurisdiction's "per capita  
             disposal rate" with the jurisdiction's "50% equivalent" per  
             capita disposal rate on January 1, 2007.  

           2)Specifies that CIWMB consider the per capita disposal rate  
             when determining compliance with the Act, but that the rate  
             is not the only factor in determining compliance.  Also  
             requires CIWMB to evaluate the need for a review of a  
             jurisdiction's program implementation should the rate exceed  
             the 50% equivalent.  

           3)Specifies how CIWMB determines the per capita disposal rate  
             (total annual disposal divided by population).  

           4)Authorizes CIWMB to use an alternative per capita factor for  
             developing the per capita disposal rate if a representative  
             rate cannot be determined using the specified factors.  

           5)Specifies how CIWMB determines the 50% equivalent disposal  
             rate using years 2003-2007 waste generation information.    

           6)Revises the 10% diversion "credit" for transformation to  
             reflect the per capita disposal rate.  

           7)Clarifies and consolidates the information required for the  
             annual report submitted by jurisdictions to CIWMB,  
             including: 

              a)   An update of the jurisdiction's source reduction and  
                recycling element (SRRE) and household hazardous waste  
                element (HHWE) to include any new or expanded programs; 

              b)   An update of the jurisdiction's non-disposal facility  
                element to reflect any new or expanded non-disposal  









                                                               SB 1016
                                                                 Page 3

                facilities; 

              c)   Disposal characterization studies or other studies  
                showing the effectiveness of program implementation; and,  


              d)   Any information describing the jurisdiction's good  
                faith efforts to comply with the requirements of the Act.  
                 

          9)Exempts the annual report from the Uniform Electronic  
             Transactions Act, which will allow CIWMB to require  
             electronic submission of the annual reports.

          10)Requires CIWMB staff to visit each jurisdiction at least  
             annually to monitor the jurisdiction's implementation and  
             maintenance of diversion programs. 

          11)Revises the requirements relating to CIWMB review of each  
             jurisdiction as follows: 

              a)   For jurisdictions meeting the 50% equivalent per  
                capita disposal rate and implementing waste reduction  
                programs, permits CIWMB to complete a review of the  
                jurisdiction not less than every four years, beginning  
                January 1, 2012, rather than every two years, as required  
                by existing law;

              b)   For jurisdictions failing to meet the 50% equivalent  
                per capita disposal rate or failing to make a "good faith  
                effort" to do so, permits CIWMB to complete a review of  
                the jurisdiction not less than every two years, beginning  
                January 1, 2010; and 

              c)   Allows CIWMB to review and adjust the reporting  
                schedule for jurisdictions depending upon performance. 

              d)   Establishes a sunset for this provision on January 1,  
                2018.  

          12)Moves the requirements relating to "good faith effort" from  
             the penalties provision of the Act (Section 41850) to the  
             review requirements of the Act (Section 41825) to allow  









                                                               SB 1016
                                                                 Page 4

             CIWMB to consider good faith efforts prior to issuing  
             compliance order.

          13)Deletes obsolete provisions related to time extension for  
             meeting the 50% diversion requirement and alternative  
             diversion rates.

          14)Makes conforming changes to the provisions requiring state  
             agencies and large state facilities to divert 50% of all  
             solid waste. 

          15)Makes an unrelated amendment to the use of revenues  
             collected by community college districts from the sale of  
             recyclable materials.  Specifically, this provision requires  
             community college districts to offset costs of recycling  
             programs.

            COMMENTS  :

            1) Purpose of Bill  .  The Act was established by AB 939 (Sher),  
              Chapter 1095, Statutes of 1989, which created the current  
              measurement system, which "counts" the amount of waste  
              diverted from landfill disposal to determine compliance  
              with the Act.  This calculation requires complex and time-  
              consuming calculations (an estimate of total waste  
              generation minus the amount of waste disposed) and  
              adjustment factors, as there is no mechanism to measure  
              diversion.  This process also left significant questions  
              relating to the accuracy of the diversion number.

           According to the author's office, this bill is intended to  
              "focus on disposal reduction and enhanced program  
              implementation efforts."  According to CIWMB, the benefits  
              of moving to a disposal-based system include:  increases  
              timeliness and accuracy; streamlines review by allowing  
              jurisdictions that are in compliance to be reviewed every  
              four years instead of every two; and, maintains allowances  
              for rural jurisdictions.  

           This bill includes an unrelated provision relating to  
              community college recycling revenues.  According to CIWMB,  
              this change is needed to address a claim by community  
              colleges to the Commission on State Mandates for  









                                                               SB 1016
                                                                 Page 5

              reimbursement for complying with the state's diversion  
              mandate.

            2) Sunset Provision:  Reporting Requirements  .  This bill  
              provides for a reporting system that allows CIWMB to defer  
              the more in-depth program review of jurisdictions that are  
              in compliance with the Act and are exceeding the current  
              diversion mandate of 50% from every two years to four.  It  
              also provides for mechanisms to adjust the program reviews  
              for those jurisdictions that may come into compliance with  
              the diversion mandate as well as those that may fall below  
              the requirements.  However, these changes in reporting  
              combined with the new method of calculation demand review  
              and oversight by the Legislature.  It is imperative to  
              determine if these changes further the goals of the Act,  
              thus a sunset provision is included on the reporting  
              requirements to allow the Legislature to revisit these  
              issues in the future.

            3) Referral to the Committee pursuant to Senate Rule 29.10  .   
              SB 1016 was heard by this committee on April 17, 2007 as a  
              measure extending the requirement of submittal of the  
              annual report requirement for jurisdictions in compliance  
              with the Act to every two years.  It passed on a 6-0 vote  
              and passed out of the Senate on June 7, 2007 on a vote of  
              37-0.

           It was significantly amended in the Assembly to reflect a  
              change in the counting system and passed the Assembly on  
              August 18, 2008 by a vote of 62-0.
            
           Consistent with Senate Rule 29.10, the Senate Rules Committee  
              has referred the amended bill to the Senate Environmental  
              Quality Committee for a hearing owing to the Assembly  
              amendments.

            SOURCE  :        California Integrated Waste Management Board  

           SUPPORT  :  Allied Waste Services
                          Californians Against Waste
                          California State Association of Counties 
                          City of Azusa
                          League of California Cities









                                                               SB 1016
                                                                 Page 6

                          Regional Council of Rural Counties
                          Sanitation Districts of Los Angeles County
                          Sierra Club California
                          Solid Waste Association of North America
            
           OPPOSITION  :    None on file