BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 341
                                                                  Page 1

          AB 341 (Chesbro)
          As Amended  September 2, 2011
          Majority vote
          |ASSEMBLY:  |48-28|(May 31, 2011)  |SENATE: |22-13|(September 8,  |
          |           |     |                |        |     |2011)          |
           Original Committee Reference:   NAT. RES.  

           SUMMARY  :  Establishes a state policy goal that 75% of solid 
          waste generated be diverted from landfill disposal by 2020; 
          requires a commercial waste generator to arrange for recycling 
          services; and, requires local governments to implement 
          commercial solid waste recycling programs designed to divert 
          solid waste from businesses.  

           The Senate amendments  : 

          1)Change the 75% diversion requirement to a 75% "goal" and 
            require the Department of Resources Recycling and Recovery 
            (DRRR) to report to the Legislature on strategies to achieve 
            the goal.  

          2)Clarify that DRRR cannot impose a diversion requirement above 
            the existing 50% requirement on a local jurisdiction.  

          3)Move the effective date of the commercial recycling program 
            back six months to July 1, 2012.

          4)Clarify that owners of multifamily dwellings may require 
            tenants to separate recyclables.

          5)Require that local jurisdictions report on their commercial 
            recycling program as part of the existing annual report 

          6)Clarify what constitutes a 'good faith effort' for purposes of 
            implementing its commercial recycling program.

          7)Make other related, technical and clarifying changes at the 
            request of CalRecycle. 


                                                                  AB 341
                                                                  Page 2

           EXISTING LAW  :

          1)Requires local governments to divert 50% of solid waste 
            disposed by their jurisdictions through source reduction, 
            recycling, and composting.

          2)Requires a local government to have a source reduction and 
            recycling plan that places primary emphasis on implementation 
            of all feasible source reduction, recycling, and composting 
            programs while identifying the amount of landfill and 
            transformation capacity that will be needed for solid waste 
            that cannot be reduced at the source, recycled, or composted.

          3)Requires a local government to have a nondisposal facility 
            plan that includes all solid waste facilities and solid waste 
            facility expansions that will help the local government reach 
            its waste diversion mandate.  

          4)Requires, as of 1994, a local government to have ordinances 
            relating to adequate areas for collection and loading of 
            recyclable materials at commercial, industrial, and 
            multifamily development projects.  Prohibits, as of 2005, a 
            local government from issuing a building permit to a 
            development project unless the development project provides 
            adequate space for collecting and loading recyclable 

           AS PASSED BY THE ASSEMBLY  , this bill:

          1)Required, on or before January 1, 2020, and annually 
            thereafter, DRRR to ensure that 75% of solid waste generated 
            is source reduced, recycled, or composted.  

          2)Required a commercial waste generator to arrange for recycling 
            services to the extent that the services are offered and 
            reasonably available from a local service provider.  Defines 
            "commercial waste recycler" as the owner or operator of a 
            business that contracts for solid waste services and generates 
            more than four cubic yards of solid waste per week or is a 
            multifamily residential dwelling of five units or more.

          3)Required a local government to implement a commercial solid 
            waste recycling program designed to divert solid waste from 


                                                                  AB 341
                                                                  Page 3

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, increasing the diversion rate to 75% will reduce 
          tipping fee revenues by about $20 million per year by 2020.  
          Appropriations notes that the Integrated Waste Management 
          Account has a structural deficit of about $8 million in the 
          budget year and a projected year end fund balance of only $6.2 
          million. The committee cites unknown costs to achieve the 75% 
          diversion rate; however, Senate Appropriations amended the bill 
          to change the requirement to a goal.  

           COMMENTS  :  California is a national leader in diverting waste 
          from landfills by currently diverting 58% of all waste, which is 
          well above the state's 50% mandate.  The state has achieved this 
          goal in part by increasing recycling opportunities through the 
          Integrated Waste Management Act.  Despite the state's high 
          diversion rate, Californians still dispose more waste than the 
          national average. There are measures that can be taken, such as 
          mandatory commercial and multifamily residential recycling, that 
          will decrease the state's solid waste disposal and increase its 
          diversion rate.  Additionally, a new waste diversion goal of 75% 
          will help facilitate more source reduction, recycling, and 
          composting in the state.

          According to DRRR, the commercial sector generates over 60% of 
          waste disposed.  As for multifamily dwellings, they generate 
          more than 8% of the disposed waste stream in California.  
          According to the sponsor, there are approximately 7.1 million 
          Californians living in approximately 2.4 million multifamily 
          dwellings.  Most of these residents are renters, but fewer than 
          40% of them have access to recycling services where they live.  
          While a homeowner can choose to recycle at home, a renter who 
          wants to recycle at his/her residence is not able to when the 
          landlord does not provide the opportunity to do so.  
          Additionally, a 2001 report prepared by the California 
          Integrated Waste Management Board, "Recycling in Multifamily 
          Dwellings," concluded that much of the cost associated with 
          providing recycling services at multifamily dwellings is offset 
          by reduced disposal fees.  

          Overall, recycling provides tremendous benefits to the state.  
          Not only does it conserve natural resources, energy, and water, 
          it also creates jobs and builds California's economy and reduces 
          greenhouse gas emissions.  According to Californians Against 
          Waste, the recycling industry accounts for more than 85,000 jobs 
          and generates nearly $4 billion annually in wages and produces 


                                                                  AB 341
                                                                  Page 4

          $10 billion worth of goods and services annually.  A June 2010 
          cost study on commercial recycling published by DRRR concluded 
          that a mandatory commercial recycling program in the state could 
          generate between 938 and 1,396 new full-time equivalent jobs in 
          recycling collection, support, supervisory, and management.

          According to DRRR, additional recovery of recyclable materials 
          will directly reduce greenhouse gas emissions.  Recycled 
          materials can reduce the greenhouse gas emissions from multiple 
          phases of product production including extraction of raw 
          materials, preprocessing, and manufacturing.  Increased 
          recycling also reduces methane emissions at landfills resulting 
          from the decomposition of organic materials.

          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)