BILL ANALYSIS Ó AB 1045 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1045 (Irwin) As Amended September 4, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | 62-2 | (May 28, |SENATE: |28-12 | (September 9, | | | |2015) | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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. AB 1045 Page 2 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 AB 1045 Page 3 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 AB 1045 Page 4 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 AB 1045 Page 5 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