BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1045


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1045 (Irwin)


          As Amended  September 4, 2015


          Majority vote


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          |ASSEMBLY:  | 62-2 | (May 28,      |SENATE: |28-12 | (September 9,   |
          |           |      |2015)          |        |      |2015)            |
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          |           |      |               |        |      |                 |
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          Original Committee Reference:  NAT. RES.


          SUMMARY:  Requires the California Environmental Protection  
          Agency (CalEPA) to establish policies to encourage recycling of  
          organic waste and coordinate the oversight and regulation of  
          organic waste recycling facilities.


          The Senate amendments: 


          1)Require that CalEPA coordinate with the State Water Resources  
            Control Board (SWRCB), the Air Resources Board (ARB), and the  
            Department of Food and Agriculture (CDFA). 


          2)Create, and subsequently delete, an Organic Waste Recycling  
            Group, comprised of specified members, to implement this bill.  










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          3)Require CalEPA, SWRCB, ARB, and CDFA to: 


             a)   Assess the state's progress toward developing the  
               organic waste processing and recycling infrastructure  
               necessary to meet specified state laws; 


             b)   Meet at least quarterly and consult with interested  
               stakeholders; 


             c)   Hold at least one public workshop annually; 


             d)   Develop recommendations for promoting organic waste  
               processing and recycling infrastructure statewide, which  
               shall be posted on CalEPA's website by January 1, 2017;  
               and,


             e)   Sunset this requirement on January 1, 2021.  


          4)Make related technical and clarifying changes.  


          EXISTING LAW pursuant to the Integrated Waste Management Act of  
          1989:


          1)Requires local agencies to divert, through source reduction,  
            recycling, and composting, 50% of solid waste disposed by  
            their jurisdictions.  
          2)Establishes a statewide diversion goal of 75% by 2020.  


          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  








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            businesses.


          4)Requires generators of specified amounts of organic waste  
            (i.e., food waste and yard waste) to arrange for recycling  
            services for that material. 


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee: 


          1)Cost pressures up to $130,000 annually from the Integrated  
            Waste Management Fund (special fund) for CalRecycle to promote  
            the creation and use of compost, participate in the working  
            group, and to coordinate with the SWRCB and ARB on permitting.


          2)Cost pressures up to $175,000 annually (special) for the ARB  
            to participate in the working group and to develop coordinated  
            permitting and regulation of composting facilities.


          3)Minor and absorbable costs to CDFA and the SWRCB to coordinate  
            with CalEPA and CalRecycle.


          COMMENTS:  According to the author, this bill "establishes a  
          statewide policy to promote the development and deployment of  
          compost? AB 1045 identifies the need for the state to look at  
          compost as a valuable resource, one that helps agriculture and  
          the rural economy, and also reduces GHG emissions and helps our  
          state meet its waste diversion goals."  


          CalRecycle is tasked with diverting at least 75% of solid waste  
          statewide by 2020.  Organic materials make up one-third of the  
          waste stream and food continues to be the highest single item  
          disposed at over 15% of materials landfilled.  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  








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          diversion are necessary to meet the 75% goal and implementing  
          Strategic Directive 6.1.  Recycling technologies for organic  
          waste include composting, anaerobic digestion, and other types  
          of processing that generate renewable fuels, energy, soil  
          amendments, and mulch.  


          Compost and other soil amendments that can be produced from  
          organic materials have been shown to improve soil health by  
          incorporating organic matter, beneficial micro-organisms, and  
          nutrients and reduce the need for chemical pesticides and  
          fertilizers.  These products also conserve water by allowing  
          water to penetrate the soil more quickly and decreasing runoff.


          According to ARB, a total reduction of 80 million metric tons  
          (MMT), or 16% compared to business as usual, is necessary to  
          reduce statewide GHG emissions to 1990 levels by 2020.  ARB  
          intends to achieve approximately 78% of the reductions through  
          direct regulations.  ARB proposes to achieve the balance of  
          reductions necessary to meet the 2020 limit (approximately 18  
          MMT) through its cap-and-trade program.


          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.  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 34 times more efficient at trapping heat than carbon  
          dioxide (CO2).  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 seven 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.
          Three of CalEPA's entities are involved in regulating compost  
          facilities.  ARB and local air districts oversee air emissions.   
          For example, the South Coast Air Quality Management District  
          requires that all new compost facilities located within its  








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          jurisdiction to be fully enclosed and meet specified  
          requirements for emissions for any vented emissions.  SWRCB and  
          regional water quality control boards regulate wastewater  
          discharges and recently adopted general waste discharge  
          requirements for composting operations that include, among other  
          requirements, no storm water runoff from the site.  CalRecycle  
          requires that compost facilities are permitted and regulates  
          general facility operations.  Additionally, CDFA annually  
          inspects compost facilities selling to organic food producers  
          for adherence to National Organic Program regulations and  
          regulates the use of soil amendments.  


          While all of these entities are acting appropriately within  
          their jurisdiction, there is little coordination between them to  
          ensure that the requirements are consistent with the overall  
          waste reduction and GHG emissions reduction goals of the state.   
          This bill would require CalEPA to ensure coordination among the  
          relevant boards and departments.


          Analysis Prepared by:                                             
                          Elizabeth MacMillan / NAT. RES. / (916) 319-2092  
                                                                         
          FN: 0002276