Sen. Appropriations

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SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1045 (Irwin) - Organic waste: composting.
Version: August 17, 2015
Urgency: No
Hearing Date: August 17, 2015
Policy Vote: E.Q. 5 - 0
Mandate: No
Consultant: Marie Liu
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 1045 would require the California Environmental Protection Agency
(CalEPA) to promote the use of agricultural, forestry, and urban organic waste as a
feedstock for compost and to promote the use of that feedstock. This bill would also
direct the Department of Resources Recycling and Recover (CalRecycle) to coordinate
with the State Air Resources Board (ARB) and the State Water Resources Control
Board (SWRCB) to coordinate permitting and regulation of composting facilities.
Fiscal Impact:
 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.
 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.
 Minor and absorbable costs to CDFA and the SWRCB to coordinate with CalEPA
and CalRecycle.
Background: The California Integrated Waste Management Act (PRC §40000 et seq.)
requires that each local jurisdiction divert at least 50% of solid waste generated from
landfill disposal through source reduction, recycling, and composting. It is the state goal
to increase the diversion rate to 75% by 2020. The act also requires generators of
specified amounts of organic waste to arrange for recycling services for that material.
The California Global Warming Solutions Act of 2006 (referred to as AB 32, HSC
§38500 et seq.) requires the California Air Resources Board (ARB) to determine the
1990 statewide greenhouse gas (GHG) emissions level, to approve a statewide GHG
emissions limit equivalent to that level that will be achieved by 2020, and to adopt GHG
emissions reductions measures by regulation.
Existing law also requires the ARB to develop a comprehensive strategy to reduce
emissions of short-lived climate pollutants (SLCPs) in the state. SLCPs are defined in
HSC §39730 as an agent that has a relatively short lifetime in the atmosphere, from a
few days to a few decades, and a warming influence on the climate that is more potent
than carbon dioxide. Examples of SLCPs listed on ARB’s webpage include black
carbon, methane, and fluorinated gases. One of the sources of methane is the
decomposition of organic materials in anaerobic conditions, such as landfills. Thus,
increased diversions of organic materials from landfills can result reduced methane
emissions.
AB 1045 (Irwin)
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Proposed Law: This bill would require CalEPA to coordinate with CalRecycle, the
SWRCB, ARB, and CDFA, to develop and implement policies to promote the use of
agricultural, forestry, and urban organic waste as a feedstock for compost and the
appropriate use of that compost for the purposes of aiding in the diversion of organics
from landfills. This policy would be required to have a goal of reducing at least five
metric tons of greenhouse gas (GHG) emissions annually through the development and
application of compost on working lands.
This bill would also require CalEPA to convene the Organic Waste Recycling Group
consisting of CalRecycle, SWRCB, ARB, and CDFA for the purpose of coordinating
agency regulations and increasing the development and application of compost on
working lands.
This bill directs CalRecycle, in coordinate with the ARB and the SWRCB, to develop a
policy that promotes the development of coordinating permitting and regulation of
composting facilities while protecting the environment.
Staff Comments: CalEPA activities required under this bill are consistent with SB 1826
(Chesbro) Chapter 727, Statutes of 2014 which requires generators of specific amounts
of organic waste to phase in recycling services. As such, CalEPA anticipates that the
costs associated with implementing this bill are minor and absorbable.
CalRecycle notes that it currently works with both the SWRCB and the ARB on
composting policies. However, CalRecycle believes the passage of this bill may result in
pressures to increase its efforts. As such, CalRecycle may have cost pressures of up to
$130,000 annually for an additional position.
ARB similarly notes anticipated costs of $175,000 annually for additional workload,
particularly in regards to the provision that would require the ARB to coordinate with
CalRecycle to develop a policy that promotes the development of coordinated
permitting. ARB anticipates that this effort will involve the need for ARB to develop
methods to quantify the reduction of methane and criterial pollutant emissions resulting
from organic waste recycling and processing strategies. ARB also assumes it would
need to work closely with local air districts on permitting issues associated with compost
operations. Staff notes that the bill only requires the development of a policy that
promotes the development of coordinated permitting, not the development of the
combined permit itself. As such, ARB’s costs can be viewed as cost pressures.
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