The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as a part of the market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund.

Existing law requires the Department of Resources Recycling and Recovery, with additional moneys from the Greenhouse Gas Reduction Fund that may be appropriated to the department, to administer a grant program to provide financial assistance to promote the in-state development of infrastructure, food waste prevention, or other projects to reduce organic waste or to process organic and other recyclable materials into new value-added products. Existing law requires the program to provide eligible financial assistance for certain activities, including recyclable material manufacturing. Existing law specifies eligible infrastructure projects for purposes of the program. Existing law requires the department to consider if and how the project may benefit disadvantaged communities in awarding a grant for organics composting or organics in-vessel digestion.

This bill would expand the scope of the grant program to include providing financial assistance to promote in-state development of projects to sort and aggregate organic and other recyclable materials, as provided, or to divert items from disposal through enhanced reuse opportunities. The bill would require the grant program to provide eligible financial assistance for increasing opportunities for reuse of materials diverted from landfill disposal and for recyclable material recovery, sorting, or bailing equipment for use at publicly owned facilities. The bill would authorize eligible infrastructure projects for the grant program to include projects undertaken by a local government at publicly owned facilities to improve the recovery, sorting, or baling of recyclable materials to get those materials into the marketplace, the purchase of equipment and construction of facilities to help develop, implement, or expand edible food waste recovery operations, and the establishment of reuse programs to divert items from landfill disposal for reuse by members of the public. The bill would also require the department to consider if and how the project may benefit low-income communities, as defined, in awarding a grant for organics composting or organics in-vessel digestion.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as a part of the market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund.

Existing law requires the Department of Resources Recycling and Recovery, with additional moneys from the Greenhouse Gas Reduction Fund that may be appropriated to the department, to administer a grant program to provide financial assistance to promote the in-state development of infrastructure, food waste prevention, or other projects to reduce organic waste or to process organic and other recyclable materials into new value-added products. Existing law requires the program to provide eligible financial assistance for certain activities, including recyclable material manufacturing. Existing law specifies eligible infrastructure projects for purposes of the program. Existing law requires the department to consider if and how the project may benefit disadvantaged communities in awarding a grant for organics composting or organics in-vessel digestion.

This bill would expand the scope of the grant program to include providing financial assistance to promote in-state development of projects to sort and aggregate organic and other recyclable materials, as provided, or to divert items from disposal through enhanced reuse opportunities. The bill would require the grant program to provide eligible financial assistance for increasing opportunities for reuse of materials diverted from landfill disposal and for recyclable material recovery, sorting, or bailing equipment for use at publicly owned facilities. The bill would authorize eligible infrastructure projects for the grant program to include projects undertaken by a local government at publicly owned facilities to improve the recovery, sorting, or baling of recyclable materials to get those materials into the marketplace, the purchase of equipment and construction of facilities to help develop, implement, or expand edible food waste recovery operations, and the establishment of reuse programs to divert items from landfill disposal for reuse by members of the public. The bill would also require the department to consider if and how the project may benefit low-income communities, as defined, in awarding a grant for organics composting or organics in-vessel digestion.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as a part of the market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund.

Existing law requires the Department of Resources Recycling and Recovery, with additional moneys from the Greenhouse Gas Reduction Fund that may be appropriated to the department, to administer a grant program to provide financial assistance to promote the in-state development of infrastructure, food waste prevention, or other projects to reduce organic waste or to process organic and other recyclable materials into new value-added products. Existing law requires the program to provide eligible financial assistance for certain activities, including recyclable material manufacturing. Existing law specifies eligible infrastructure projects for purposes of the program. Existing law requires the department to consider if and how the project may benefit disadvantaged communities in awarding a grant for organics composting or organics in-vessel digestion.

This bill would expand the scope of the grant program to include providing financial assistance to promote in-state development of projects to sort and aggregate organic and other recyclable materials, as provided, or to divert items from disposal through enhanced reuse opportunities. The bill would specifically authorize require the grant program to provide eligible financial assistance for recyclable material recovery, sorting, and baling and for increasing opportunities for reuse of materials diverted from landfill disposal. disposal and for recyclable material recovery, sorting, or bailing equipment for use at publicly owned facilities. The bill would authorize eligible infrastructure projects for the grant program to include projects undertaken by a local government at publicly owned facilities to improve the recovery, sorting, or baling of recyclable materials to get those materials into the marketplace, the purchase of equipment and construction of facilities to help local governments and nonprofit organizations develop, implement, or expand edible food waste recovery operations, and the establishment of reuse programs by local jurisdictions to divert items from landfill disposal for reuse by members of the public. The bill would also require the department to consider if and how the project may benefit low-income communities, as defined, in awarding a grant for organics composting or organics in-vessel digestion.

The existing Coastal Resources and Energy Assistance Act authorizes the Secretary of the Natural Resources Agency, after consulting with the California Coastal Commission and the State Lands Commission concerning offshore energy activities, to award grants to coastal communities and cities to be used for certain purposes relating to the planning, implementation, monitoring, and enforcement of offshore energy development, consistent with the requirements of the states coastal management program.

This bill would make a nonsubstantive change in that provision.

 THIRD READING  

Bill No: AB 1548

Author: Hart (D)

Amended: 4/20/23 in Assembly

Vote: 21

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 7/5/23

AYES: Allen, Dahle, Gonzalez, Hurtado, Menjivar, Nguyen, Skinner

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/23

AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener

ASSEMBLY FLOOR: 80-0, 5/31/23 - See last page for vote

SUBJECT: Greenhouse Gas Reduction Fund: grant program: recycling infrastructure projects

SOURCE: Author

DIGEST:

This bill adds specificity on the types of projects that are eligible for the Department of Resources Recycling and Recovery’s (CalRecycle’s) grant program that provides financial assistance to promote the development of organic waste infrastructure and waste reduction programs.

ANALYSIS:

Existing law:

1. The California Integrated Waste Management Act (IWMA) of 1989, administered CalRecycle, regulates the disposal, management, and recycling of solid waste. The IWMA, establishes a state goal that requires local governments divert at least 50% of solid waste from landfills since 2000, and establishes a statewide goal that 75% of solid waste be diverted from landfill disposal by 2020. (Public Resources Code (PRC) §§ 40000 et. seq.)
2. Requires commercial waste generators, 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 businesses. (PRC §42649)
3. Requires the California Air Resources Board (CARB) to complete, approve, and implement a comprehensive strategy to reduce emissions of short-lived climate pollutants (SLCPs) in the state to achieve, among other things, a 40% reduction in the statewide emissions of methane. (Health and Safety Code (HSC) §§39730 et seq.)
4. Requires the state to reduce the disposal of organic waste by 40% from the 2014 level by 2020 and 75% by 2025 to help achieve the state’s methane reduction goal. (HSC § 39730.6) 
5. Establishes the Waste Diversion and Greenhouse Gas Reduction Financial Assistance program to reduce organics waste and resultant emissions, which includes: 
   1. The CalRecycle Greenhouse Gas (GHG) Reduction Revolving Loan Program, which provides loans to reduce GHG emissions by advancing organic waste processing infrastructure, recyclables, and diversion. 
   2. A grant program to support in-state development of organic waste infrastructure, food waste prevention, or other projects to reduce organic waste or to process it into new products, such as organics composting, waste to energy, recycling, and waste diversion strategies like edible food recovery. When awarding grants under this program, CalRecycle considers the amount of GHG reductions, organic material diversion, and benefits to disadvantaged communities among other criteria. (PRC § 42995-42999),
6. Defines “low-income communities” as census tracts with median household incomes at or below 80% of the statewide median income or with median household incomes at or below the threshold designated as low-income by the Department of Housing and Community Development’s list of state income limits. (HSC § 39713)

This bill:

1. Updates CalRecycle’s Waste Diversion and Greenhouse Gas Reduction Financial Assistance program to specifically include:
   1. Projects that increase opportunities for reuse of materials diverted from landfill disposal; and
   2. Projects related to recyclable material recovery, sorting, or baling equipment for use at publicly owned facilities by local jurisdictions. 
2. Adds to the list of eligible infrastructure projects under the program:
   1. Projects undertaken by a local government at publicly owned facilities to improve the recovery, sorting, or baling of recyclable materials to get those materials into the marketplace;
   2. Purchase of equipment and construction of facilities for edible food waste recovery operation, and;
   3. Establishment of reuse programs to divert items from landfill disposal for reuse by members of the public.
3. Requires CalRecycle to consider how projects benefit low-income communities.

Background

1. Organics Waste Management. California produced 76.7 million tons of waste in 2021, according to CalRecycle’s State of Disposal and Recycling report. Of this amount, over 40 million tons were landfilled. Nearly a third of this waste, 28.4%, is organic material. Food waste alone accounts for approximately 18% of landfilled material, and yard waste accounts for another seven percent of the total waste stream. CalRecycle is charged with diverting at least 75% of solid waste from landfills statewide by 2020, but the current recycling rate for the state is only 40%.

In addition to the statewide waste reduction goal, local governments also have a directive to reduce the amount of waste they landfill by 50% compared to 2000 levels. To accomplish this, commercial waste generators, including multi-family dwellings are required to arrange for recycling services for the material they generate. Additionally, local governments are required to implement commercial solid waste recycling programs designed to divert solid waste generated by businesses from landfills.

1. Organic Waste and Short-Lived Climate Pollutants. Organic waste is not only a high volume problem in landfills, it also has an oversized impact on climate. According to CalRecycle, methane emissions from decomposing organic waste in landfills account for approximately 20% of the state’s total methane emissions. Methane is a climate “super pollutant” that is 84 times more potent than carbon dioxide over a 20-year timescale. The global warming potential of methane is more than 25 times greater than carbon dioxide over its short atmospheric life (approximately 12 years). According to the United States Environmental Protection Agency, municipal solid waste landfills are the third-largest human-generated source of methane emissions in the United States. Landfills are required to have methane collection systems in place to capture and manage methane emissions, but these systems in modern landfills only capture roughly 60% to 90% of the methane emitted, meaning that a significant amount of methane still escapes landfills and becomes a GHG in the atmosphere.
2. Organic Waste and Methane Emission Goals (SB 1383 Regulations). In 2016, the Legislature passed SB 1383 (Lara, Chapter 395, Statutes of 2016), which established emission reduction targets for short-lived climate pollutants including hydrofluorocarbon gasses, anthropogenic black carbon, and methane. SB 1383 required ARB to approve and implement a comprehensive short-lived climate pollutant strategy that included a 2030 target of reducing methane emissions by 40% relative to 2014 levels. In order to achieve these reductions in methane emissions, SB 1383 set a goal of reducing landfill disposal of organic waste 50% by 2020 and 75% by 2025 from 2014 levels. SB 1383 also set a goal of rescuing at least 20% of currently disposed of surplus food for meals by 2025. CalRecycle was given the authority to adopt regulations that would achieve these organic waste reduction requirements.
3. Waste Diversion and Greenhouse Gas Reduction Financial Assistance. In 2014, the state established the Greenhouse Gas Reduction Fund (GGRF), which is funded through the state’s cap-and-trade program. One of the many grant programs funded as part of GGRF is the waste diversion and GHG reduction financial assistance grant and loan program, which provides funding for recycling and organic waste diversion activities that reduce GHG emissions.

Under the financial assistance program, CalRecycle established seven grant and loan programs to fund investments in infrastructure for organic waste that reduce GHG emissions. At least 35% of funds must benefit disadvantaged and low-income communities. The specific programs are:

• 1. Food Waste Prevention and Rescue Grant Program, which funds new or expanding food waste prevention projects, including edible food recovery and source reduction to reduce food waste disposal;
  2. Organics Grant Program, which funds expanding existing capacity or establishing new facilities to reduce the amount of California-generated organic materials being sent to landfills;
  3. Recycled Fiber, Plastic, and Glass Grant Program, which funds expanding existing capacity or establishing new facilities that use California-generated postconsumer recycled fiber (old corrugated cardboard, paperboard, or textiles), plastic, or glass to manufacture products;
  4. Greenhouse Gas Reduction Loan Program, which provides funding to assist recycling manufacturers with financing machinery, equipment, and ancillary costs to site and expand recycling facilities in California;
  5. Reuse Grant Program, which is a new pilot program to fund reuse projects in the state;
  6. Community Composting Grant Program, which is intended to increase the number of community groups operating small-scale composting programs in green spaces in disadvantaged and low-income communities; and
  7. Co-digestion Grant Program, which funds new and expanded food waste co-digestion projects at existing wastewater treatment plants.

Comments

1. Purpose of Bill. According to the author, “AB 1548 expands CalRecycle's grant programs to help local communities purchase infrastructure equipment to increase recycling and expand edible food recovery operations. Local governments and nonprofits require additional support from the State to achieve California's recycling goals and reduce the impacts of landfill disposal on the environment. AB 1548 requires the department to consider disadvantaged and low-income communities.”
2. Recovering, Sorting, and Baling - Part of Organic Infrastructure. This bill specifies that recyclable material recovery, sorting and baling equipment will be eligible for funding from the financial assistance grant program. While this equipment is currently eligible for the grant in its current form, these pieces of equipment have not historically been funded through the grant program. Balers can cost anywhere between $5,000 to $1 million for a top-of-the-line ferrous bale.

Balers costing below $100,000 are generally classified as low-production balers, and a mainstream high-production baler can cost between $100,000 and $750,000 or more. On top of this one-time cost, companies report that operating large balers for eight hours can cost an additional $20,000 annually in electricity bills. Given the expense of purchasing and maintaining baling equipment, developing this infrastructure can represent a significant financial investment for local entities. This may be especially true for smaller local entities with underdeveloped waste infrastructure that may already be struggling to reach SB 1383 goals. Giving CalRecycle explicit authority to provide grant assistance for this type of equipment could support organic waste infrastructure in the areas most likely to fall behind their SB 1383 goals.

Related/Prior Legislation

SB 613 (Seyarto, 2023) creates a definition for low-population local jurisdictions and exempts those jurisdictions from SB 1383 (Lara, Chapter 395, Statutes of 2016) organics waste diversion goals.

SB 613 (Laird, Chapter 508, Statutes of 2021) pushed back the timeline for penalties for local jurisdictions that have not complied with SB 1383 requirements until January 1, 2023.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee:

• Ongoing costs of $418,000 annually starting in 2024-25 (Greenhouse Gas Reduction Fund [GGRF]) for three positions at CalRecycle to develop and monitor the program and manage grants.
• Cost pressure of an unknown but potentially significant amount (GGRF) as a result of expanding the scope and types of eligible projects under CalRecycle’s financial assistance program.

SUPPORT: (Verified 9/1/2023)

California Chapters of the Solid Waste Association of North America's Legislative Task Force

California Special Districts Association

California State Association of Counties

League of California Cities

Recology

Republic Services - Western Region

Rural County Representatives of California

South Bayside Waste Management Authority

Western Placer Waste Management Authority

OPPOSITION: (Verified 9/1/23)

None received

ASSEMBLY FLOOR: 80-0, 5/31/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

Prepared by: Brynn Cook / E.Q. / (916) 651-4108

9/2/23 9:51:58

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1548 (Hart) - Greenhouse Gas Reduction Fund: grant program: recycling infrastructure projects

Bill Summary:

This bill would add specificity on the types of projects that are eligible for the Department of Resources Recycling and Recovery’s (CalRecycle’s) grant program that provides financial assistance to promote the development of organic waste infrastructure and waste reduction programs.

Fiscal Impact:

• CalRecycle estimates ongoing costs of $418,000 annually starting in 2024-25 (Greenhouse Gas Reduction Fund [GGRF]) for 3 positions to develop program criteria, review, and score applications, monitor progress of awarded projects, manage the grant to ensure funding is spent on eligible costs, review payment requests, and close out the grants.
• Cost pressure of an unknown but potentially significant amount (GGRF) as a result of expanding the scope and types of eligible projects under CalRecycle’s financial assistance program.

Background:

Organics Waste Management. California produced 76.7 million tons of waste in 2021, according to CalRecycle’s State of Disposal and Recycling report. Of this amount, over 40 million tons were landfilled. Nearly a third of this waste, 28.4%, is organic material. Food waste alone accounts for approximately 18% of landfilled material, and yard waste accounts for another seven percent of the total waste stream. CalRecycle is charged with diverting at least 75% of solid waste from landfills statewide by 2020, but the current recycling rate for the state is only 40%.

In addition to the statewide waste reduction goal, local governments also have a directive to reduce the amount of waste they landfill by 50% compared to 2000 levels. To accomplish this, commercial waste generators, including multi-family dwellings are required to arrange for recycling services for the material they generate. Additionally, local governments are required to implement commercial solid waste recycling programs designed to divert solid waste generated by businesses from landfills.

Organic Waste and Short-Lived Climate Pollutants. Organic waste is not only a high volume problem in landfills, it also has an oversized impact on climate. According to CalRecycle, methane emissions from decomposing organic waste in landfills account for approximately 20% of the state’s total methane emissions. Methane is a climate “super pollutant” that is 84 times more potent than carbon dioxide over a 20-year timescale. The global warming potential of methane is more than 25 times greater than carbon dioxide over its short atmospheric life (approximately 12 years). According to the United States Environmental Protection Agency, municipal solid waste landfills are the third-largest human-generated source of methane emissions in the United States. Landfills are required to have methane collection systems in place to capture and manage methane emissions, but these systems in modern landfills only capture roughly 60% to 90% of the methane emitted, meaning that a significant amount of methane still escapes landfills and becomes a GHG in the atmosphere.

Organic Waste and Methane Emission Goals (SB 1383 Regulations). In 2016, the Legislature passed SB 1383 (Lara, Chapter 395, Statutes of 2016), which established emission reduction targets for short-lived climate pollutants including hydrofluorocarbon gasses, anthropogenic black carbon, and methane. SB 1383 required ARB to approve and implement a comprehensive short-lived climate pollutant strategy that included a 2030 target of reducing methane emissions by 40% relative to 2014 levels. In order to achieve these reductions in methane emissions, SB 1383 set a goal of reducing landfill disposal of organic waste 50% by 2020 and 75% by 2025 from 2014 levels. SB 1383 also set a goal of rescuing at least 20% of currently disposed of surplus food for meals by 2025. CalRecycle was given the authority to adopt regulations that would achieve these organic waste reduction requirements.

Waste Diversion and Greenhouse Gas Reduction Financial Assistance. In 2014, the state established the Greenhouse Gas Reduction Fund (GGRF), which is funded through the state’s cap-and-trade program. One of the many grant programs funded as part of GGRF is the waste diversion and GHG reduction financial assistance grant and loan program, which provides funding for recycling and organic waste diversion activities that reduce GHG emissions.

Under the financial assistance program, CalRecycle established seven grant and loan programs to fund investments in infrastructure for organic waste that reduce GHG emissions. At least 35% of funds must benefit disadvantaged and low-income communities. The specific programs are:

• 1. Food Waste Prevention and Rescue Grant Program, which funds new or expanding food waste prevention projects, including edible food recovery and source reduction to reduce food waste disposal;
  2. Organics Grant Program, which funds expanding existing capacity or establishing new facilities to reduce the amount of California-generated organic materials being sent to landfills;
  3. Recycled Fiber, Plastic, and Glass Grant Program, which funds expanding existing capacity or establishing new facilities that use California-generated postconsumer recycled fiber (old corrugated cardboard, paperboard, or textiles), plastic, or glass to manufacture products;
  4. Greenhouse Gas Reduction Loan Program, which provides funding to assist recycling manufacturers with financing machinery, equipment, and ancillary costs to site and expand recycling facilities in California;
  5. Reuse Grant Program, which is a new pilot program to fund reuse projects in the state;
  6. Community Composting Grant Program, which is intended to increase the number of community groups operating small-scale composting programs in green spaces in disadvantaged and low-income communities; and
  7. Co-digestion Grant Program, which funds new and expanded food waste co-digestion projects at existing wastewater treatment plants.

Proposed Law:

This bill would add specificity on the types of projects that are eligible for CalRecycle’s grant program that provides financial assistance to promote the development of organic waste infrastructure and waste reduction programs. Specifically, this bill would:

1. Update CalRecycle’s Waste Diversion and Greenhouse Gas Reduction Financial Assistance program to specifically include:
   1. Projects that increase opportunities for reuse of materials diverted from landfill disposal; and
   2. Projects related to recyclable material recovery, sorting, or baling equipment for use at publicly owned facilities by local jurisdictions. 
2. Add to the list of eligible infrastructure projects under the program:
   1. Projects undertaken by a local government at publicly owned facilities to improve the recovery, sorting, or baling of recyclable materials to get those materials into the marketplace;
   2. Purchase of equipment and construction of facilities for edible food waste recovery operation, and;
   3. Establishment of reuse programs to divert items from landfill disposal for reuse by members of the public.
3. Require CalRecycle to consider how projects benefit low-income communities.

Related Legislation:

SB 613 (Seyarto, 2023) would create a definition for low-population local jurisdictions and exempts those jurisdictions from SB 1383 (Lara, Chapter 395, Statutes of 2016) organics waste diversion goals.

SB 613 (Laird, Chapter 508, Statutes of 2021) pushed back the timeline for penalties for local jurisdictions that have not complied with SB 1383 requirements until January 1, 2023.

Staff Comments:

Under the organic and solid waste recycling financial assistance program implicated in this bill, CalRecycle administers seven different grant and loan programs, funded by GGRF. In fiscal years (FYs) 2021-22 and 2022-23, CalRecycle received some additional General Fund support for these programs as part of a “Circular Economy Package”. The programs include the (a) food waste prevention and rescue grant program, (b) organics grant program, (c) recycled fiber, plastic, and glass grant program, (d) greenhouse gas reduction loan program, (e) reuse grant program, (f) community composting grant program, and (g) co-digestion grant program. According to CalRecycle, since FY 2017-18, these programs have collectively allocated approximately $264 million to various projects.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1548 (Hart) - Greenhouse Gas Reduction Fund: grant program: recycling infrastructure projects

Bill Summary:

This bill would add specificity on the types of projects that are eligible for the Department of Resources Recycling and Recovery’s (CalRecycle’s) grant program that provides financial assistance to promote the development of organic waste infrastructure and waste reduction programs.

Fiscal Impact:

• CalRecycle estimates ongoing costs of $418,000 annually starting in 2024-25 (Greenhouse Gas Reduction Fund [GGRF]) for 3 positions to develop program criteria, review, and score applications, monitor progress of awarded projects, manage the grant to ensure funding is spent on eligible costs, review payment requests, and close out the grants.
• Cost pressure of an unknown but potentially significant amount (GGRF) as a result of expanding the scope and types of eligible projects under CalRecycle’s financial assistance program.

Background:

Organics Waste Management. California produced 76.7 million tons of waste in 2021, according to CalRecycle’s State of Disposal and Recycling report. Of this amount, over 40 million tons were landfilled. Nearly a third of this waste, 28.4%, is organic material. Food waste alone accounts for approximately 18% of landfilled material, and yard waste accounts for another seven percent of the total waste stream. CalRecycle is charged with diverting at least 75% of solid waste from landfills statewide by 2020, but the current recycling rate for the state is only 40%.

In addition to the statewide waste reduction goal, local governments also have a directive to reduce the amount of waste they landfill by 50% compared to 2000 levels. To accomplish this, commercial waste generators, including multi-family dwellings are required to arrange for recycling services for the material they generate. Additionally, local governments are required to implement commercial solid waste recycling programs designed to divert solid waste generated by businesses from landfills.

Organic Waste and Short-Lived Climate Pollutants. Organic waste is not only a high volume problem in landfills, it also has an oversized impact on climate. According to CalRecycle, methane emissions from decomposing organic waste in landfills account for approximately 20% of the state’s total methane emissions. Methane is a climate “super pollutant” that is 84 times more potent than carbon dioxide over a 20-year timescale. The global warming potential of methane is more than 25 times greater than carbon dioxide over its short atmospheric life (approximately 12 years). According to the United States Environmental Protection Agency, municipal solid waste landfills are the third-largest human-generated source of methane emissions in the United States. Landfills are required to have methane collection systems in place to capture and manage methane emissions, but these systems in modern landfills only capture roughly 60% to 90% of the methane emitted, meaning that a significant amount of methane still escapes landfills and becomes a GHG in the atmosphere.

Organic Waste and Methane Emission Goals (SB 1383 Regulations). In 2016, the Legislature passed SB 1383 (Lara, Chapter 395, Statutes of 2016), which established emission reduction targets for short-lived climate pollutants including hydrofluorocarbon gasses, anthropogenic black carbon, and methane. SB 1383 required ARB to approve and implement a comprehensive short-lived climate pollutant strategy that included a 2030 target of reducing methane emissions by 40% relative to 2014 levels. In order to achieve these reductions in methane emissions, SB 1383 set a goal of reducing landfill disposal of organic waste 50% by 2020 and 75% by 2025 from 2014 levels. SB 1383 also set a goal of rescuing at least 20% of currently disposed of surplus food for meals by 2025. CalRecycle was given the authority to adopt regulations that would achieve these organic waste reduction requirements.

Waste Diversion and Greenhouse Gas Reduction Financial Assistance. In 2014, the state established the Greenhouse Gas Reduction Fund (GGRF), which is funded through the state’s cap-and-trade program. One of the many grant programs funded as part of GGRF is the waste diversion and GHG reduction financial assistance grant and loan program, which provides funding for recycling and organic waste diversion activities that reduce GHG emissions.

Under the financial assistance program, CalRecycle established seven grant and loan programs to fund investments in infrastructure for organic waste that reduce GHG emissions. At least 35% of funds must benefit disadvantaged and low-income communities. The specific programs are:

• 1. Food Waste Prevention and Rescue Grant Program, which funds new or expanding food waste prevention projects, including edible food recovery and source reduction to reduce food waste disposal;
  2. Organics Grant Program, which funds expanding existing capacity or establishing new facilities to reduce the amount of California-generated organic materials being sent to landfills;
  3. Recycled Fiber, Plastic, and Glass Grant Program, which funds expanding existing capacity or establishing new facilities that use California-generated postconsumer recycled fiber (old corrugated cardboard, paperboard, or textiles), plastic, or glass to manufacture products;
  4. Greenhouse Gas Reduction Loan Program, which provides funding to assist recycling manufacturers with financing machinery, equipment, and ancillary costs to site and expand recycling facilities in California;
  5. Reuse Grant Program, which is a new pilot program to fund reuse projects in the state;
  6. Community Composting Grant Program, which is intended to increase the number of community groups operating small-scale composting programs in green spaces in disadvantaged and low-income communities; and
  7. Co-digestion Grant Program, which funds new and expanded food waste co-digestion projects at existing wastewater treatment plants.

Proposed Law:

This bill would add specificity on the types of projects that are eligible for CalRecycle’s grant program that provides financial assistance to promote the development of organic waste infrastructure and waste reduction programs. Specifically, this bill would:

1. Update CalRecycle’s Waste Diversion and Greenhouse Gas Reduction Financial Assistance program to specifically include:
   1. Projects that increase opportunities for reuse of materials diverted from landfill disposal; and
   2. Projects related to recyclable material recovery, sorting, or baling equipment for use at publicly owned facilities by local jurisdictions. 
2. Add to the list of eligible infrastructure projects under the program:
   1. Projects undertaken by a local government at publicly owned facilities to improve the recovery, sorting, or baling of recyclable materials to get those materials into the marketplace;
   2. Purchase of equipment and construction of facilities for edible food waste recovery operation, and;
   3. Establishment of reuse programs to divert items from landfill disposal for reuse by members of the public.
3. Require CalRecycle to consider how projects benefit low-income communities.

Related Legislation:

SB 613 (Seyarto, 2023) would create a definition for low-population local jurisdictions and exempts those jurisdictions from SB 1383 (Lara, Chapter 395, Statutes of 2016) organics waste diversion goals.

SB 613 (Laird, Chapter 508, Statutes of 2021) pushed back the timeline for penalties for local jurisdictions that have not complied with SB 1383 requirements until January 1, 2023.

Staff Comments:

Under the organic and solid waste recycling financial assistance program implicated in this bill, CalRecycle administers seven different grant and loan programs, funded by GGRF. In fiscal years (FYs) 2021-22 and 2022-23, CalRecycle received some additional General Fund support for these programs as part of a “Circular Economy Package”. The programs include the (a) food waste prevention and rescue grant program, (b) organics grant program, (c) recycled fiber, plastic, and glass grant program, (d) greenhouse gas reduction loan program, (e) reuse grant program, (f) community composting grant program, and (g) co-digestion grant program. According to CalRecycle, since FY 2017-18, these programs have collectively allocated approximately $264 million to various projects.

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Allen, Chair

2023 - 2024 Regular

SUBJECT: Greenhouse Gas Reduction Fund: grant program: recycling infrastructure projects

DIGEST: Adds specificity on the types of projects that are eligible for the Department of Resources Recycling and Recovery’s (CalRecycle’s) grant program that provides financial assistance to promote the development of organic waste infrastructure and waste reduction programs.

ANALYSIS:

Existing law:

1. The California Integrated Waste Management Act (IWMA) of 1989, administered CalRecycle, regulates the disposal, management, and recycling of solid waste. The IWMA, establishes a state goal that requires local governments divert at least 50% of solid waste from landfills since 2000, and establishes a statewide goal that 75% of solid waste be diverted from landfill disposal by 2020. (Public Resources Code (PRC) §§ 40000 et. seq.)
2. Requires commercial waste generators, 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 businesses. (PRC §42649)
3. Requires the California Air Resources Board (CARB) to complete, approve, and implement a comprehensive strategy to reduce emissions of short-lived climate pollutants (SLCPs) in the state to achieve, among other things, a 40% reduction in the statewide emissions of methane. (Health and Safety Code (HSC) §§39730 et seq.)
4. Requires the state to reduce the disposal of organic waste by 40% from the 2014 level by 2020 and 75% by 2025 to help achieve the state’s methane reduction goal. (HSC § 39730.6) 
5. Establishes the Waste Diversion and Greenhouse Gas Reduction Financial Assistance program to reduce organics waste and resultant emissions, which includes: 
   1. The CalRecycle Greenhouse Gas (GHG) Reduction Revolving Loan Program, which provides loans to reduce GHG emissions by advancing organic waste processing infrastructure, recyclables, and diversion. 
   2. A grant program to support in-state development of organic waste infrastructure, food waste prevention, or other projects to reduce organic waste or to process it into new products, such as organics composting, waste to energy, recycling, and waste diversion strategies like edible food recovery. When awarding grants under this program, CalRecycle considers the amount of GHG reductions, organic material diversion, and benefits to disadvantaged communities among other criteria. (PRC § 42995-42999),
6. Defines “low-income communities” as census tracts with median household incomes at or below 80% of the statewide median income or with median household incomes at or below the threshold designated as low-income by the Department of Housing and Community Development’s list of state income limits. (HSC§39713)

This bill:

1. Updates CalRecycle’s Waste Diversion and Greenhouse Gas Reduction Financial Assistance program to specifically include:
   1. Projects that increase opportunities for reuse of materials diverted from landfill disposal; and
   2. Projects related to recyclable material recovery, sorting, or baling equipment for use at publicly owned facilities by local jurisdictions. 
2. Adds to the list of eligible infrastructure projects under the program:
   1. Projects undertaken by a local government at publicly owned facilities to improve the recovery, sorting, or baling of recyclable materials to get those materials into the marketplace;
   2. Purchase of equipment and construction of facilities for edible food waste recovery operation, and;
   3. Establishment of reuse programs to divert items from landfill disposal for reuse by members of the public.
3. Requires CalRecycle to consider how projects benefit low-income communities.
   

Background

1. Organics Waste Management. California produced 76.7 million tons of waste in 2021, according to CalRecycle’s State of Disposal and Recycling report. Of this amount, over 40 million tons were landfilled. Nearly a third of this waste, 28.4%, is organic material. Food waste alone accounts for approximately 18% of landfilled material, and yard waste accounts for another seven percent of the total waste stream. CalRecycle is charged with diverting at least 75% of solid waste from landfills statewide by 2020, but the current recycling rate for the state is only 40%.

In addition to the statewide waste reduction goal, local governments also have a directive to reduce the amount of waste they landfill by 50% compared to 2000 levels. To accomplish this, commercial waste generators, including multi-family dwellings are required to arrange for recycling services for the material they generate. Additionally, local governments are required to implement commercial solid waste recycling programs designed to divert solid waste generated by businesses from landfills.

1. Organic Waste and Short-Lived Climate Pollutants. Organic waste is not only a high volume problem in landfills, it also has an oversized impact on climate. According to CalRecycle, methane emissions from decomposing organic waste in landfills account for approximately 20% of the state’s total methane emissions. Methane is a climate “super pollutant” that is 84 times more potent than carbon dioxide over a 20-year timescale. The global warming potential of methane is more than 25 times greater than carbon dioxide over its short atmospheric life (approximately 12 years). According to the United States Environmental Protection Agency, municipal solid waste landfills are the third-largest human-generated source of methane emissions in the United States. Landfills are required to have methane collection systems in place to capture and manage methane emissions, but these systems in modern landfills only capture roughly 60% to 90% of the methane emitted, meaning that a significant amount of methane still escapes landfills and becomes a GHG in the atmosphere.
2. Organic Waste and Methane Emission Goals (SB 1383 Regulations). In 2016, the Legislature passed SB 1383 (Lara, Chapter 395, Statutes of 2016), which established emission reduction targets for short-lived climate pollutants including hydrofluorocarbon gasses, anthropogenic black carbon, and methane. SB 1383 required ARB to approve and implement a comprehensive short-lived climate pollutant strategy that included a 2030 target of reducing methane emissions by 40% relative to 2014 levels. In order to achieve these reductions in methane emissions, SB 1383 set a goal of reducing landfill disposal of organic waste 50% by 2020 and 75% by 2025 from 2014 levels. SB 1383 also set a goal of rescuing at least 20% of currently disposed of surplus food for meals by 2025. CalRecycle was given the authority to adopt regulations that would achieve these organic waste reduction requirements.
3. Waste Diversion and Greenhouse Gas Reduction Financial Assistance. In 2014, the state established the Greenhouse Gas Reduction Fund (GGRF), which is funded through the state’s cap-and-trade program. One of the many grant programs funded as part of GGRF is the waste diversion and GHG reduction financial assistance grant and loan program, which provides funding for recycling and organic waste diversion activities that reduce GHG emissions.

Under the financial assistance program, CalRecycle established seven grant and loan programs to fund investments in infrastructure for organic waste that reduce GHG emissions. At least 35% of funds must benefit disadvantaged and low-income communities. The specific programs are:

• 1. Food Waste Prevention and Rescue Grant Program, which funds new or expanding food waste prevention projects, including edible food recovery and source reduction to reduce food waste disposal;
  2. Organics Grant Program, which funds expanding existing capacity or establishing new facilities to reduce the amount of California-generated organic materials being sent to landfills;
  3. Recycled Fiber, Plastic, and Glass Grant Program, which funds expanding existing capacity or establishing new facilities that use California-generated postconsumer recycled fiber (old corrugated cardboard, paperboard, or textiles), plastic, or glass to manufacture products;
  4. Greenhouse Gas Reduction Loan Program, which provides funding to assist recycling manufacturers with financing machinery, equipment, and ancillary costs to site and expand recycling facilities in California;
  5. Reuse Grant Program, which is a new pilot program to fund reuse projects in the state;
  6. Community Composting Grant Program, which is intended to increase the number of community groups operating small-scale composting programs in green spaces in disadvantaged and low-income communities; and
  7. Co-digestion Grant Program, which funds new and expanded food waste co-digestion projects at existing wastewater treatment plants.

Comments

1. Purpose of Bill. According to the author, “AB 1548 expands CalRecycle's grant programs to help local communities purchase infrastructure equipment to increase recycling and expand edible food recovery operations. Local governments and nonprofits require additional support from the State to achieve California's recycling goals and reduce the impacts of landfill disposal on the environment. AB 1548 requires the department to consider disadvantaged and low-income communities.”
   
2. Recovering, Sorting, and Baling - Part of Organic Infrastructure. This bill specifies that recyclable material recovery, sorting and baling equipment will be eligible for funding from the financial assistance grant program. While this equipment is currently eligible for the grant in its current form, these pieces of equipment have not historically been funded through the grant program. Balers can cost anywhere between $5,000 to $1 million for a top-of-the-line ferrous bale.
   

Balers costing below $100,000 are generally classified as low production balers, and a mainstream high-production baler can cost between $100,000 and $750,000 or more. On top of this one-time cost, companies report that operating large balers for eight hours can cost an additional $20,000 annually in electricity bills. Given the expense of purchasing and maintaining baling equipment, developing this infrastructure can represent a significant financial investment for local entities. This may be especially true for smaller local entities with underdeveloped waste infrastructure that may already be struggling to reach SB 1383 goals. Giving CalRecycle explicit authority to provide grant assistance for this type of equipment could support organic waste infrastructure in the areas most likely to fall behind their SB 1383 goals.

Related/Prior Legislation

SB 613 (Seyarto, 2023). Would create a definition for low-population local jurisdictions and exempts those jurisdictions from SB 1383 (Lara, Chapter 395, Statutes of 2016) organics waste diversion goals.

SB 613 (Laird, Chapter 508, Statutes of 2021). Pushed back the timeline for penalties for local jurisdictions that have not complied with SB 1383 requirements until January 1, 2023.

SOURCE:

1. Rural County Representatives of California

SUPPORT:

Rural County Representatives of California (RCRC) (Source)

California Chapters of The Solid Waste Association of North America's Legislative Task Force
California Special Districts Association
California State Association of Counties (CSAC)
League of California Cities
Recology
Republic Services - Western Region
South Bayside Waste Management Authority (sbwma ) Dba Rethinkwaste
Western Placer Waste Management Authority (WPWMA)

OPPOSITION:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1548

Author:(Hart)

As Amended Ver:April 20, 2023

Majority vote

SUMMARY

Revises the grant program administered by the Department of Resources Recycling and Recovery (CalRecycle) that provides financial assistance to promote the development of in-state infrastructure, food waste prevention, or other waste reduction and recycling projects to include additional infrastructure types and codify specific grants authorized under the program.

Major Provisions

1. Makes eligible for financial assistance:
   1. Projects that increase opportunities for reuse of materials diverted from landfill disposal; and,
   2. Projects related to recyclable material recovery, sorting, or baling equipment for use at publicly owned facilities by local jurisdictions.
2. Adds to the list of eligible infrastructure projects under the program:
   1. Projects undertaken by a local government at publicly owned facilities to improve the recovery, sorting, or baling of recyclable materials to get those materials into the marketplace;
   2. The purchase of equipment and construction of facilities for edible food waste recovery operations; and,
   3. The establishment of reuse programs to divert items from landfill disposal for reuse by members of the public.
3. Requires CalRecycle to consider how funded projects benefit low-income communities, in addition to disadvantaged communities.

COMMENTS

More than 40 million tons of waste are disposed of in California's landfills annually, of which 28.4% is organic materials, 13% is plastic, and 15.5% is paper. CalRecycle is charged with diverting at least 75% of solid waste from landfills statewide by 2020. Local governments have been required to divert 50% of the waste generated within the jurisdiction from landfill disposal since 2000. AB 341 (Chesbro), Chapter 476, Statutes of 2011, requires commercial waste generators, including multi-family dwellings, to arrange for recycling services for the material they generate and requires local governments to implement commercial solid waste recycling programs designed to divert solid waste generated by businesses out of the landfill. A follow up bill, AB 1826 (Chesbro), Chapter 727, Statutes of 2014, requires generators of organic waste (i.e., food waste and yard waste) to arrange for recycling services for that material to keep it out of the landfill.

Short lived climate pollutants (SLCPs) are greenhouse gases that linger in the atmosphere for a shorter period of time than carbon dioxide, but have much larger impacts on climate over their lifetimes. The primary SLCPs are methane, black carbon, tropospheric ozone, and hydrofluorocarbons, which are estimated to account for up to 45% of current climate change. Reducing SLCP emissions reduces near-term climate impacts.

The global warming potential of methane is more than 25 times greater than carbon dioxide over its short atmospheric life (approximately 12 years). According to the United States Environmental Protection Agency, municipal solid waste landfills are the third-largest human-generated source of methane emissions in the United States. Landfills are required to have methane collection systems in place to capture and manage methane emissions, but these systems in modern landfills only capture roughly 60% to 90% of the methane emitted.

SB 1383 (Lara), Chapter 395, Statutes of 2016, requires ARB to approve and implement a comprehensive SLCP strategy to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases, and a 50% reduction in anthropogenic black carbon, by 2030. In order to accomplish these goals, the bill specified that the methane emission reduction goals include targets to reduce the landfill disposal of organic waste 50% by 2020 and 75% by 2025 from the 2014 level.

Under the organic and solid waste recycling financial assistance program implicated in this bill, CalRecycle administers seven different grant and loan programs, funded by the Greenhouse Gas Reduction Fund (GGRF). In fiscal years (FYs) 2021-22 and 2022-23, CalRecycle received some additional General Fund support for these programs as part of a "Circular Economy Package". The programs include the food waste prevention and rescue grant program, organics grant program, recycled fiber, plastic, and glass grant program, greenhouse gas reduction loan program, reuse grant program, community composting grant program, and co-digestion grant program. According to CalRecycle, since FY 2017-18, these programs have collectively allocated approximately $264 million to various projects.

This bill expands and codifies various grant programs administered by CalRecycle to facilitate compliance with the state's recycling and SLCP reduction goals.

According to the Author

AB 1548 expands CalRecycle's grant programs to help local communities purchase infrastructure equipment to increase recycling and expand edible food recovery operations. Local governments and nonprofits require additional support from the State to achieve California's recycling goals and reduce the impacts of landfill disposal on the environment. AB 1548 requires the department to consider disadvantaged and low-income communities.

Arguments in Support

According to a coalition of supporters:

AB 1548 will help locals procure and install infrastructure that will expand the amount and diversity of recyclable materials that can be sent back into the marketplace to make new products. While CalRecycle's grant program already helps fund manufacturers who use recycled materials, it does not currently provide funding to help locals get those materials into the marketplace. AB 1548 closes an eligibility gap that will help locals, the state, and manufacturers better achieve the state's recycling and circular economy goals.

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Assembly Appropriations Committee:

1. CalRecycle estimates ongoing annual costs of approximately $418,000 for three new positions to develop program criteria, review and score applications, monitor progress of projects awarded grant funding, review payment requests, and conduct other administrative tasks (Greenhouse Gas Reduction Fund (GGRF)).
2. Cost pressure of an unknown but potentially significant amount (GGRF) as a result of expanding the scope and types of eligible projects under CalRecycle's financial assistance program.

VOTES

ASM NATURAL RESOURCES: 11-0-0

YES: Luz Rivas, Flora, Addis, Friedman, Hoover, Mathis, Muratsuchi, Pellerin, Ward, Wood, Zbur

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Robert Rivas

UPDATED

VERSION: April 20, 2023

CONSULTANT: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0000768

Date of Hearing: May 10, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 1548

Author:(Hart) – As Amended Ver:April 20, 2023

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill revises a grant program administered by the Department of Resources Recycling and Recovery (CalRecycle) to include additional infrastructure and codifies specific grants authorized under the program.

Specifically, this bill revises CalRecycle’s grant program to provide financial assistance to promote in-state development of infrastructure, food waste prevention, or other projects to reduce organic waste or process organic and other recyclable materials into new, value-added products by:

1. Making eligible for financial assistance projects (a) that increase opportunities for reuse of materials diverted from landfill disposal and (b) related to recyclable material recovery, sorting, or baling equipment for use at publicly owned facilities by local jurisdictions.
2. Adding to the list of eligible infrastructure projects under the program (a) projects undertaken by a local government at publicly owned facilities to improve the recovery, sorting, or baling of recyclable materials to get those materials into the marketplace, (b) purchase of equipment and construction of facilities for edible food waste recovery operations, and (c) establishment of reuse programs to divert items from landfill disposal for reuse by members of the public.
3. Requiring CalRecycle to consider how funded projects benefit low-income communities, in addition to disadvantaged communities.

FISCAL EFFECT:

1) CalRecycle estimates ongoing annual costs of approximately $418,000 for three new positions to develop program criteria, review and score applications, monitor progress of projects awarded grant funding, review payment requests, and conduct other administrative tasks (Greenhouse Gas Reduction Fund (GGRF)).

2) Cost pressure of an unknown but potentially significant amount (GGRF) as a result of expanding the scope and types of eligible projects under CalRecycle’s financial assistance program.

COMMENTS:

1) Purpose. According to the author:

AB 1548 expands CalRecycle’s grant programs to help local communities purchase infrastructure equipment to increase recycling and expand edible food recovery operations. Local governments and nonprofits require additional support from the State to achieve California’s recycling goals and reduce the impacts of landfill disposal on the environment. AB 1548 requires the department to consider disadvantaged and low-income communities.

2) Background. According to CalRecycle, about 40 million tons of waste were disposed of in California's landfills in 2021. Organics like food scraps, yard trimmings, paper, and cardboard make up half of what is dumped in landfills. SB 1383 (Lara), Chapter 395, Statutes of 2016, among other things, set methane emission reduction targets in an effort to reduce emissions of short-lived climate pollutants. The targets must reduce organic waste disposal 50% by 2020 and 75% by 2025 from the 2014 level.

Under the organic and solid waste recycling financial assistance program implicated in this bill, CalRecycle administers seven different grant and loan programs, funded by GGRF. In fiscal years (FYs) 2021-22 and 2022-23, CalRecycle received some additional General Fund support for these programs as part of a “Circular Economy Package”. The programs include the (a) food waste prevention and rescue grant program, (b) organics grant program, (c) recycled fiber, plastic, and glass grant program, (d) greenhouse gas reduction loan program, (e) reuse grant program, (f) community composting grant program, and (g) co-digestion grant program. According to CalRecycle, since FY 2017-18, these programs have collectively allocated approximately $264 million to various projects.

This bill explicitly authorizes CalRecycle to fund recovery, sorting, and baling equipment for recyclable materials. According to the bill’s sponsor, the Rural County Representatives of California (RCRC), many local governments that own and operate their own solid waste collection and recycling programs struggle to fund infrastructure projects to increase the number or volume of materials that can be sorted, baled, and returned to the marketplace as recycled material. CalRecycle notes it already has the authority to fund the types of projects and equipment identified by this bill; however, the department has not to date provided funding for this purpose.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: April 17, 2023

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Luz Rivas, Chair

ABPCA Bill Id:AB 1548 (

Author:Hart) – As Amended Ver:March 16, 2023

SUBJECT: Greenhouse Gas Reduction Fund: grant program: recycling infrastructure projects

SUMMARY: Revises the grant program administered by the Department of Resources Recycling and Recovery (CalRecycle) that provides financial assistance to promote the development of in-state infrastructure, food waste prevention, or other waste reduction and recycling projects to include additional infrastructure and codify specific grants authorized under the grant program.

EXISTING LAW:

1. Pursuant to the Integrated Waste Management Act (Public Resources Code (PRC) 40000 et seq.):
   1. Requires that local governments divert at least 50% of solid waste from landfill disposal and establishes a statewide goal that 75% of solid waste be diverted from landfill disposal by 2020.
   2. Requires commercial waste generators, 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 businesses.
2. Requires the Air Resources Board (ARB) to develop a comprehensive strategy to reduce the emissions of short-lived climate pollutants (SLCP) to achieve a 40% reduction in methane emissions, 40% reduction in hydrofluorocarbon gases, and 50% reduction in anthropogenic black carbon below 2013 levels by 2030. (Health and Safety Code (HSC) 39730-39730.5)
3. Requires the state to reduce the disposal of organic waste by 40% from the 2014 level by 2020 and 75% by 2025 to help achieve the state’s methane reduction goal. (HSC 39730.6)
4. Establishes the Waste Diversion and Greenhouse Gas Reduction Financial Assistance program (PRC 42995-42999), which includes:
   1. The CalRecycle Greenhouse Gas Reduction Revolving Loan Program to provide loans to reduce greenhouse gas (GHG) emissions by promoting in-state development of infrastructure or other projects to reduce organic waste or process organic and other recyclable materials into new value-added products, including organics composting, organics in-vessel digestion, recyclable material manufacturing, activities that expand and improve waste diversion and recycling.
   2. A grant program to provide financial assistance to promote in-state development of infrastructure, food waste prevention, or other projects to reduce organic waste or process organic and other recyclable materials into new, value-added products, including:
      1. Organics composting;
      2. Organics in-vessel digestion;
      3. Recyclable material manufacturing;
      4. Activities that expand and improve organic waste diversion and recycling, including, but not limited to, the recovery of food for human consumption and food waste prevention;
      5. Preprocessing organic materials for composting or organics in-vessel digestion; and,
      6. Digestion at existing wastewater treatment plants.

Specifies that eligible infrastructure projects include:

• • 1. Capital investments in new facilities and increased throughput at existing facilities;
    2. Designing and constructing organics in-vessel digestion facilities to produce products;
    3. Designing and constructing or expanding facilities for processing recyclable materials; and,
    4. Projects to improve the quality of recycled materials.

When awarding grants under this program, requires CalRecycle to consider the following:

• • 1. The amount of reductions in GHG emissions;
    2. The amount of organic material that may be diverted from landfill;
    3. If and how the project may benefit disadvantaged communities;
    4. For a grant awarded for in-vessel digestion, if and how the project maximizes resource recovery;
    5. Project readiness and permitting required; and,
    6. Air and water quality benefits.
  1. The Zero-Waste Equity Grant Program to support targeted strategies and investments in communities transitioning to a zero-waste circular economy.

1. Defines “low-income communities” as census tracts with median household incomes at or below 80% of the statewide median income or with median household incomes at or below the threshold designated as low-income by the Department of Housing and Community Development’s list of state income limits. (HSC 39713)

THIS BILL: Revises the grant program to provide financial assistance to promote in-state development of infrastructure, food waste prevention, or other projects to reduce organic waste or process organic and other recyclable materials into new, value-added products by:

1. Specifying that eligible financial assistance shall be provided for recyclable material recovery, sorting, or baling, in addition to manufacturing.
2. Including “increasing opportunities for reuse of materials diverted from landfill disposal” to the list of activities eligible for financial assistance.
3. Adding the following to the list of projects eligible for grant funding:
   1. Projects undertaken by a local government to improve the recovery, sorting, or baling of recyclable materials to get those materials into the marketplace, including related equipment purchasing and installation costs; and,
   2. Establishment of reuse programs for local jurisdictions to divert items from landfill disposal for reuse by members of the public.
4. Specifying that CalRecycle consider how funded projects benefit low-income communities, in addition to disadvantaged communities.

FISCAL EFFECT: Unknown

COMMENTS:

1. Author’s statement:

AB 1548 expands CalRecycle’s grant programs to help local communities purchase infrastructure equipment to increase recycling and expand edible food recovery operations. Local governments and nonprofits require additional support from the State to achieve California’s recycling goals and reduce the impacts of landfill disposal on the environment. AB 1548 requires the department to consider disadvantaged and low-income communities.

1. Waste disposal in California. More than 40 million tons of waste are disposed of in California’s landfills annually, of which 28.4% is organic materials, 13% is plastic, and 15.5% is paper. CalRecycle is charged with diverting at least 75% of solid waste from landfills statewide by 2020. Local governments have been required to divert 50% of the waste generated within the jurisdiction from landfill disposal since 2000. AB 341 (Chesbro), Chapter 476, Statutes of 2011, requires commercial waste generators, including multi-family dwellings, to arrange for recycling services for the material they generate and requires local governments to implement commercial solid waste recycling programs designed to divert solid waste generated by businesses out of the landfill. A follow up bill, AB 1826 (Chesbro), Chapter 727, Statutes of 2014, requires generators of organic waste (i.e., food waste and yard waste) to arrange for recycling services for that material to keep it out of the landfill.

SB 1383 (Lara), Chapter 395, Statutes of 2016, requires ARB to approve and implement a comprehensive SLCP strategy to achieve, from 2013 levels, a 40% reduction in methane, a 40% reduction in hydrofluorocarbon gases, and a 50% reduction in anthropogenic black carbon, by 2030. In order to accomplish these goals, the bill specified that the methane emission reduction goals include targets to reduce the landfill disposal of organic waste 50% by 2020 and 75% by 2025 from the 2014 level.

1. Short lived climate pollutants. SLCPs are GHGs that linger in the atmosphere for a shorter period of time than carbon dioxide, but have much larger impacts on climate over their lifetimes. The primary SLCPs are methane, black carbon, tropospheric ozone, and hydrofluorocarbons, which are estimated to account for up to 45% of current climate change. Reducing SLCP emissions reduces near-term climate impacts.
   
   The global warming potential of methane is more than 25 times greater than carbon dioxide over its short atmospheric life (approximately 12 years). According to the United States Environmental Protection Agency, municipal solid waste landfills are the third-largest human-generated source of methane emissions in the United States. Landfills are required to have methane collection systems in place to capture and manage methane emissions, but these systems in modern landfills only capture roughly 60% to 90% of the methane emitted.
2. Waste Diversion and Greenhouse Gas Reduction Financial Assistance. SB 862 (Budget), Chapter 36, Statutes of 2014, created the programmatic structure for the expenditure of cap-and-trade funds (Greenhouse Gas Reduction Fund). SB 862 established the waste diversion and GHG reduction financial assistance grant and loan programs to provide funding for recycling and organic waste diversion activities that reduce GHG emissions. The program was expanded under SB 155 (Budget), Chapter 258, Statutes of 2021.

Under the financial assistance program, CalRecycle established seven grant and loan programs to fund investments in infrastructure for aerobic composting, anaerobic digestion (identified as “in-vessel digestion” in SB 862), recycling, and manufacturing facilities that reduce GHG emissions. The programs prioritize environmental and economic benefits in disadvantaged and low-income communities, and a minimum of 35% of funds expended for these programs are made in those communities. The specific programs are:

• • Food Waste Prevention and Rescue Grant Program, which funds new or expanding food waste prevention projects, including edible food recovery and source reduction to reduce food waste disposal.
  • Organics Grant Program, which funds expanding existing capacity or establishing new facilities to reduce the amount of California-generated organic materials being sent to landfills.
  • Recycled Fiber, Plastic, and Glass Grant Program, which funds expanding existing capacity or establishing new facilities that use California-generated postconsumer recycled fiber (old corrugated cardboard, paperboard, or textiles), plastic, or glass to manufacture products.
  • Greenhouse Gas Reduction Loan Program, which provides funding to assist recycling manufacturers with financing machinery, equipment, and ancillary costs to site and expand recycling facilities in California.
  • Reuse Grant Program, which is a new pilot program to fund reuse projects in the state.
  • Community Composting Grant Program, which is intended to increase the number of community groups operating small-scale composting programs in green spaces in disadvantaged and low-income communities.
  • Co-digestion Grant Program, which funds new and expanded food waste co-digestion projects at existing wastewater treatment plants.

1. This bill. This bill would clarify that CalRecycle’s financial assistance program can be used to fund recovery, sorting, and baling equipment for recyclable materials. According to the bill’s sponsor, the Rural County Representatives of California (RCRC), many local governments that own and operate their own solid waste collection and recycling programs struggle to fund infrastructure projects to increase the number or volume of materials that can be sorted, baled, and returned to the marketplace as recycled material. This bill is intended to require CalRecycle to fund these types of equipment. Additionally, this bill codifies the reuse grant program administered by CalRecycle, but limits eligibility to local jurisdictions. This bill also codifies a grant program to construct and purchase equipment for facilities to help local governments and nonprofit organizations develop, implement, and expand edible food waste recovery operations. Finally, this bill requires CalRecycle to consider the benefits to low-income communities, in addition to disadvantaged communities.
   
   As noted above, CalRecycle currently has the authority under the grant program to fund the types of projects identified by the bill, including the authority to fund equipment like sorters and balers. The current program, however, does not currently provide funding for that equipment. Because this bill is targeted toward funding for facilities owned and operated by local governments, and the greatest need for this assistance lies with local government facilities, the committee may wish to amend the bill to limit eligibility for this provision to those facilities. The provisions of this bill that establish grant programs for edible food recovery and reuse programs appear to be intended to codify existing grant programs, but limit grant eligibility to nonprofits and local jurisdictions (for food recovery) and just local jurisdictions (for reuse programs). As these grants already exist and are not currently limited to those entities, the committee may wish to amend the bill to make the new statutory provisions consistent with the current grant programs.
   

REGISTERED SUPPORT / OPPOSITION:

Support

City of Goleta

County of Santa Barbara

Rural County Representatives of California (sponsor)

Opposition

None on file

Analysis Prepared by: Elizabeth MacMillan / NAT. RES. /