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) Page 2 of 2 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. -- END --