ORGANICS LEGISLATIVE AND REGULATORY UPDATE

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1 ORGANICS LEGISLATIVE AND REGULATORY UPDATE Howard Levenson CalRecycle August 21,

2 State Carbon Policy Drivers Governor Brown s 5 Pillars AB 32 and SB 32 (2016) Healthy Soils Ini@a@ve CalRecycle direct policy drivers Short- Lived Climate Pollutants / SB

3 Governor Brown s 5 Pillars

4 Healthy Soils IniMaMve Ø Increase carbon in California s agricultural soils Ø Incen@vize using beneficial products from expanded organics infrastructure to build organic maqer in agricultural soils Compost NRCS COMET Planner conserva@on prac@ce Ø CDFA lead, CalRecycle and ARB support 4

5 CalRecycle Direct Policy Drivers AB % diversion requirement on AB % statewide by 2020; mandatory commercial recycling AB Mandatory commercial organics recycling AB ADC recycling acer 1/1/20 AB year planning horizon for organics capacity SB Short- lived climate pollutants 2

6 AB 341, AB 1826, AB 876 ImplementaMon AB 341 & AB 1826 Statute allows review of performance based only on these programs and at LeQer from Director Smithline to all January 2017 Requirements focus on outreach, monitoring AB review 36 with gaps; 26 addressed sufficiently 10 referred to CalRecycle enforcement unit for compliance orders AB 1826 Requirements started in January 2016, first Annual Reports due August 1 Based on Annual Reports, staff visits, etc., could bring formal review item any@me AB year planning horizon for organics capacity First Annual Reports with this informa@on due August 1 Addi@onal programma@c, planning, repor@ng, and enforcement requirements being considered as part of SB 1383 rulemaking 2

7 SB 1383 (Enacted 2016) SLCPs: methane, carbon black, fluorinated gases Organics disposal goals: Reduce methane emissions 40% by % in disposal by 2020 (from 2014 levels) 75% in disposal of organics by % in disposal of edible food waste by January 2022 Workshops 2017 Drac regulatory language beginning October 2017 Rulemaking

8 TradiMonal Organics Green materials Wood waste Food materials Manure 8

9 40% Compostable/Digestable > 10 million tons/year suitable for compost, mulch AD or biomass power being disposed Food waste biggest category ~6 million tons/year Aerated Pile Anaerobic 9

10 Dra^ DefiniMon Organic Waste For purposes of SB 1383, talking about biogenic organic waste that is methane producing "Organic Waste" means solid wastes containing material originated from living organisms and their metabolic waste products, including but not limited to food, green waste, landscape and pruning waste, wood, lumber, fiber, applicable and carpets, manure, biosolids, digestate, and sludges 10

11 Disposal Stream 2014 Organic Waste ~ 20 Million tons ~ 2/3 of 2014 disposal Special Waste, 5.0% Mixed Residue, 3.0% HHW, 0.4% Inerts and Other, 8.0% Paper, 17.4% Glass, 2.5% Lumber, 11.9% Metal, 3.1% Plas@c, 10.4% [CATEGORY NAME] Electronics, 0.9% Food, 18.1% 11

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13 SB 1383 High- Level Concepts Organic Waste Programs Organic Waste Processing Efficiency Market Development Edible Food Recovery Enforcement 13

14 Dra^ JurisdicMon Concepts By January 1, 2022, should provide mandatory organics recycling services to all generators of organic waste. Source- Separated Recycling Program Source- separated recycling for organic waste Non- organics (i.e., paper, cardboard, cartons) in curbside services/blue bins Source- separated organics bins collected weekly, other bins (refuse, curbside) may be collected every other week Mixed- Waste Recycling Program Mixed waste would have to recover specified % of organic waste from mixed waste stream Alterna@vely, mixed waste facili@es would have to phase out acceptance of green/food 14

15 Dra^ Generator Concepts Generators & commercial) would have to manage organics by doing one of following: Source reduce/prevent organic waste (recover edible food) Recycle organics onsite Comply with s mandatory organics recycling services, and/or Backhaul/self- haul organics to organics recycling facility Generators would have to place materials in proper bins Schools and state agencies not subject to s program would have to do one or more of above 15

16 Solid Waste Facility Concepts Measure recovery of organic materials Report on Transfer/processing send organics to facility that recycles organics New consult with disadvantaged New/expanded landfills should include organics pre- processing 16

17 Edible Food Recovery Concepts Baseline issue food recovery programs with food recovery Edible food pick- up services for generators Local public and outreach efforts Compliance monitoring Include edible food recovery services as part of event permits (e.g., for farmers markets, Food plans for all public Food plans for edible food generators 17

18 ReporMng Concepts Monitor program Track organic waste / methane reduc@on Exis@ng Repor@ng Systems and Databases Electronic Annual Report (EAR) Solid Waste Informa@on System Biomass Conversion Facility Repor@ng DRS and new DDRS Waste Tire Hauler manifest system 18

19 Enforcement Concepts CalRecycle enforcement over: similar to current system Other subject to haulers, generators enforcement over: Haulers? Generators? LEA enforcement over: Solid waste 19

20 Infrastructure ImplicaMons Roughly expansions or new needed Total infrastructure investment of at least $2-3 billion 20

21 Infrastructure Issues Feedstock securing adequate amount Cheap cost of landfill disposal and CEQA, NIMBY Markets and demand Financing 21

22 Permiing Ø State Water Resources Control Board/Regional Boards General Order for ponds, pads, berms Individual waste discharge requirements Ø Air Districts 22

23 Air Quality ConsideraMons VOC emissions from organic waste Landfills vs. IAWWG ideas re: permisng and State- approved emissions factors New Source Review changes? Availability of Emission Credits and digester Suggested Control Measures EIR Public Services 23

24 Markets Issues: co- benefits Demand Product quality CalRecycle finished product standards - metals, pathogens; glass & plas@c Labeling info: US Compos@ng Council, CDFA Land applica@on of uncomposted green materials, poten@al spread of pests Pipeline injec@on and grid interconnec@on Incen@ve payments? Cross- agency efforts ARB, CEC, CDFA, DWR, others 24

25 State Financial IncenMves CalRecycle: Greenhouse Gas Grants/Loans, RMDZ Loans CDFA: Healthy Soils CEC: Fuel Grants (AB 118) ARB: Low Carbon Fuel Standard CEC/CPUC: Renewable Porwolio Standard SB 1122 IOUs procure 250 MW small- scale bioenergy BOE/CAEAFTA: Manufacturers Tax Rebates/Credits Treasurer: CPCFA Tax- Exempt Bonds, CalCAP

26 Greenhouse Gas ReducMon Grants $40 Million for FY Organics Grant Program - $12 million ($3 million for rurals) - $12 million Awards approved August 15 All in/near DACs Food Waste & Rescue - $5 million 49 applica@ons reques@ng > $14 million Higher GHG reduc@ons than compos@ng and diges@on Awards ~ October Recycled Fiber, Plas@c, and Glass - $9 million 26

27 Selected Ongoing AcMviMes AB 1045 ARB/CAPCOA interagency waste working group AB 341 and AB 1826 compliance SB 1383 rulemaking ARB Scoping Plan Update Healthy Soils Carbon research (Marin Carbon, TomKat Ranch) Land research and enforcement Water- efficient landscaping ordinance Compost co- benefits 27

28 Questions? Howard Levenson, Deputy Director - choose SLCP 28