HomeMy WebLinkAboutRatify SB 1383 - Organic Waste ReductionSTAFF REPORT
CITY OF PALM DESERT
CITY MANAGER'S OFFICE
MEETING DATE: March 14, 2019
PREPARED BY: Christopher Gerry, Management Analyst
REQUEST: Ratify comments on the California Department of Resources Recycling
and Recovery's proposed regulations relating to Senate Bill 1383.
Recommendation
By minute motion, ratify comments on the California Department of Resources Recycling and
Recovery's proposed regulations relating to Senate Bill 1383 (Lara, 2016).
Background Analvsis
In 2016, Senate Bill (SB) 1383 was passed with the intention of reducing methane emissions
through the reduction of organic waste in landfills. The California Department of Resources
Recycling and Recovery (CalRecycle) was tasked with drafting proposed regulations to
implement SB 1383. A primary concern of many jurisdictions is the State does not have the
appropriate infrastructure capacity to fully meet the goals set forth in this law.
A summary of deadlines and milestones associated with this law includes:
• January 1, 2020: State must achieve a 50% reduction in the statewide level of disposable
organic waste below 2014 levels.
July 1, 2020: CalRecycle, in consultation with the California Air Resources Board, must
access the progress made in meeting the organic waste reduction targets for 2020 and
2025. If significant progress has not been made in meeting the targets, CalRecycle may
include incentives and/or additional requirements in the regulations to facilitate progress
toward achieving the organic disposal reduction targets. CalRecycle may also recommend
to the State Legislature revisions to the targets.
• January 1, 2022: Regulations to meet the organic waste reduction targets for 2020 and
2025 take effect and are enforceable on this date.
• January 1, 2025: State must achieve a 75% reduction in the statewide level of disposable
organic waste below 2014 levels. Also, not less than 20% of currently disposed edible
food must be recovered for human consumption.
CalRecycle was recently accepting public comments on the proposed regulations of SB 1383.
Accordingly, the Legislative Review Committee discussed the proposed regulations and
subsequently approved comments to submit to CalRecycle. Due to time constraints, City staff
submitted the comments to CalRecycle and requests ratification of the attached comment letter.
March 14, 2019
Senate Bill 1383
Page 2 of 2
LEGAL REVIEW
N/A
Robert W. Hargreaves
City Attorney
ATTACHMENTS:
DEPT. REVIEW
N/A
Lauri Aylaian
City Manager
A. Senate Bill 1383
B. Comment Letter (March 1, 2019)
FINANCIAL REVIEW
�
4 - a V
Moore
Director of Finance
CITY MANAGER
'0�
Lauri Aylaian
City Manager
Attachment A
Senate Bill 1383 (Lara, 2016)
AUTHENTICATED
ELECTRONIC LEGAL M TERIP
Senate Bill No. 1383
CHAPTER 395
An act to add Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the
Health and Safety Code, and to add Chapter 13.1 (commencing with Section
42652) to Part 3 of Division 30 of the Public Resources Code, relating to
methane emissions.
[Approved by Governor September 19. 2016. Filed with
Secretary of'State September 19. 2016.1
LEGISLATIVE COUNSEL'S DIGEST
SB 1383, Lara. Short-lived climate pollutants: methane emissions: dairy
and livestock: organic waste: landfills.
(1) 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 state board
is required to approve a statewide greenhouse gas emissions limit equivalent
to the statewide greenhouse gas emissions level in 1990 to be achieved by
2020. The state board is also required to complete a comprehensive strategy
to reduce emissions of short-lived climate pollutants, as defined, in the state.
This bill would require the state board, no later than January 1, 2018, to
approve and begin implementing that comprehensive strategy to reduce
emissions of short-lived climate pollutants to achieve a reduction in methane
by 40%, hydrofluorocarbon gases by 40%, and anthropogenic black carbon
by 50% below 2013 levels by 2030, as specified. The bill also would
establish specified targets for reducing organic waste in landfills.
This bill would require the state board, in consultation with the Department
of Food and Agriculture, to adopt regulations to reduce methane emissions
from livestock manure management operations and dairy manure
management operations, as specified. The bill would require the state board
to take certain actions prior to adopting those regulations. This bill would
require the regulations to take effect on or after January 1, 2024, if the state
board, in consultation with the department, makes certain determinations.
This bill would require the state board, the Public Utilities Commission,
and the State Energy Resources Conservation and Development Commission
to undertake various actions related to reducing short-lived climate pollutants
in the state. The bill would require state agencies to consider and, as
appropriate, adopt policies and incentives to significantly increase the
sustainable production and use of renewable gas.
(2) The California Integrated Waste Management Act of 1989, which is
administered by the Department of Resources Recycling and Recovery,
establishes an integrated waste management program that requires each
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Ch. 395 — 2 —
county and city and county to prepare and submit to the department a
countywide integrated waste management plan.
The bill would require the department, in consultation with the state board,
to adopt regulations that achieve the specified targets for reducing organic
waste in landfills. The bill would authorize local jurisdictions to charge and
collect fees to recover the local jurisdiction's costs incurred in complying
with the regulations. The bill would require, no later than July 1, 2020, the
department, in consultation with the state board, to analyze the progress
that the waste sector, state government, and local governments have made
in achieving the specified targets for reducing organic waste in landfills.
The bill would authorize the department, depending on the outcome of that
analysis, to amend the regulations to include incentives or additional
requirements, as specified. By adding to the duties of local governments
related to organic waste in landfills, this bill would impose a state -mandated
local program.
(3) The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state. Statutory
provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for
a specified reason.
The people of the State of California do enact as follows. -
SECTION 1. (a) The Legislature finds and declares all of the following:
(1) Short-lived climate pollutants, such as black carbon, fluorinated gases,
and methane, are powerful climate forcers that have a dramatic and
detrimental effect on air quality, public health, and climate change.
(2) These pollutants create a warming influence on the climate that is
many times more potent than that of carbon dioxide.
(3) Short-lived climate pollutants that are toxic air contaminants also are
a significant environmental risk factor for premature death.
(4) Reducing emissions of these pollutants can have an immediate
beneficial impact on climate change and on public health.
(5) To the extent possible, efforts to reduce emissions of short-lived
climate pollutants should focus on areas of the state that are
disproportionately affected by poor air quality.
(b) It is the intent of the Legislature to support the adoption of policies
that improve organics recycling and innovative, cost effective, and
environmentally beneficial uses of biomethane derived from solid waste
facilities.
(c) It is intent of the Legislature that the disposal reduction targets
established pursuant to Section 39730.6 of the Health and Safety Code shall
serve as a statewide average target and not as a minimum requirement for
each jurisdiction.
SEC. 2. Section 39730.5 is added to the Health and Safety Code, to read:
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3— Ch. 395
39730.5. (a) No later than January 1, 2018, the state board shall approve
and begin implementing the comprehensive short-lived climate pollutant
strategy developed pursuant to Section 39730 to achieve a reduction in the
statewide emissions of methane by 40 percent, hydrofluorocarbon gases by
40 percent, and anthropogenic black carbon by 50 percent below 2013 levels
by 2030.
(b) Prior to approving the short-lived climate pollutant strategy pursuant
to subdivision (a), the state board shall do all of the following:
(1) Coordinate with other state and local agencies and districts to develop
measures identified as part of the strategy.
(2) Provide a forum for public engagement by holding at least three
public hearings in geographically diverse locations throughout the state.
(3) Evaluate the best -available scientific, technological, and economic
information to ensure that the strategy is cost effective and technologically
feasible.
(4) Incorporate and prioritize, as appropriate, measures and actions that
provide the following cobenefits:
(A) Job growth and local economic benefits in the state.
(B) Public health benefits.
(C) Potential for new innovation in technology, energy, and resource
management practices.
(c) The state board shall publicly notice the strategy described in
subdivision (a) and post a copy of that strategy on the state board's Internet
Web site at least one month prior to the state board approving the strategy
pursuant to subdivision (a).
SEC. 3. Section 39730.6 is added to the Health and Safety Code, to read:
39730.6. (a) Consistent with Section 39730.5, methane emissions
reduction goals shall include the following targets to reduce the landfill
disposal of organics:
(1) A 50-percent reduction in the level of the statewide disposal of organic
waste from the 2014 level by 2020.
(2) A 75-percent reduction in the level of the statewide disposal of organic
waste from the 2014 level by 2025.
(b) Except as provided in this section and Section 42652.5 of the Public
Resources Code, the state board shall not adopt, prior to January 1, 2025,
requirements to control methane emissions associated with the disposal of
organic waste in landfills other than through landfill methane emissions
control regulations.
SEC. 4. Section 39730.7 is added to the Health and Safety Code, to read:
39730.7. (a) For purposes of this section, the following terms have the
following meanings:
(1) "Department" means the Department of Food and Agriculture.
(2) "Commission" means the Public Utilities Commission.
(3) "Energy commission" means the State Energy Resources Conservation
and Development Commission.
(4) "Strategy" means the strategy to reduce short-lived climate pollutants
developed pursuant to Section 39730.
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Ch. 395 — 4 —
(b) (1) The state board, in consultation with the department, shall adopt
regulations to reduce methane emissions from livestock manure management
operations and dairy manure management operations, consistent with this
section and the strategy, by up to 40 percent below the dairy sector's and
livestock sector's 2013 levels by 2030.
(2) Prior to adopting regulations pursuant to paragraph (1), the state board
shall do all of the following:
(A) Work with stakeholders to identify and address technical, market,
regulatory, and other challenges and barriers to the development of dairy
methane emissions reduction projects. The group of stakeholders shall
include a broad range of stakeholders involved in the development of dairy
methane reduction projects, including, but not limited to, project developers,
dairy and livestock industry representatives, state and local permitting
agencies, energy agency representatives, compost producers with experience
composting dairy manure, environmental and conservation stakeholders,
public health experts, and others with demonstrated expertise relevant to
the success of dairy methane emissions reduction efforts.
(B) Provide a forum for public engagement by holding at least three
public meetings in geographically diverse locations throughout the state
where dairy operations and livestock operations are present.
(C) In consultation with the department, do both of the following:
(i) Conduct or consider livestock and dairy operation research on dairy
methane emissions reduction projects, including, but not limited to, scrape
manure management systems, solids separation systems, and enteric
fermentation.
(ii) Consider developing and adopting methane emissions reduction
protocols.
(3) The state board shall make available to the public by posting on its
Internet Web site a report on the progress made in implementing paragraph
(2). Pursuant to Section 9795 of the Government Code, the state board shall
notify the Legislature of the report.
(4) Notwithstanding the Administrative Procedure Act (Chapter 3.5
(commencing with Section 1 1340) of Part 1 of Division 3 of Title 2 of the
Government Code), the regulations adopted pursuant to paragraph (1) shall
be implemented on or after January 1, 2024, if the state board, in consultation
with the department, determines all of the following:
(A) The regulations are technologically feasible.
(B) The regulations are economically feasible considering milk and live
cattle prices and the commitment of state, federal, and private funding,
among other things, and that markets exist for the products generated by
dairy manure management and livestock manure management methane
emissions reduction projects, including composting, biomethane, and other
products. The analysis shall include consideration of both of the following:
(i) Electrical interconnection of onsite electrical generation facilities
using biomethane.
(ii) Access to common carrier pipelines available for the injection of
digester biomethane.
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(C) The regulations are cost effective.
(D) The regulations include provisions to minimize and mitigate potential
leakage to other states or countries, as appropriate.
(E) The regulations include an evaluation of the achievements made by
incentive -based programs.
(c) No later than July I, 2020, the state board, in consultation with the
department, shall analyze the progress the dairy and livestock sector has
made in achieving the goals identified in the strategy and specified in
paragraph (1) of subdivision (b). The analysis shall determine if sufficient
progress has been made to overcome technical and market barriers, as
identified in the strategy. If the analysis determines that progress has not
been made in meeting the targets due to insufficient funding or technical or
market barriers, the state board, in consultation with the department and
upon consultation with stakeholders, may reduce the goal in the strategy
for the dairy and livestock sectors, as identified pursuant to paragraph (1).
(d) (1) (A) No later than January 1, 2018, the state board, in consultation
with the commission and the energy commission, shall establish energy
infrastructure development and procurement policies needed to encourage
dairy biomethane projects to meet the goal identified pursuant to paragraph
(1) of subdivision (b).
(B) The state board shall develop a pilot financial mechanism to reduce
the economic uncertainty associated with the value of environmental credits,
including credits pursuant to the Low -Carbon Fuel Standard regulations
(Subarticle 7 (commencing with Section 95480) of Title 17 of the California
Code of Regulations) from dairy -related projects producing low -carbon
transportation fuels. The state board shall make recommendations to the
Legislature for expanding this mechanism to other sources of biogas.
(2) No later than January 1, 2018, the commission, in consultation with
the state board and the department, shall direct gas corporations to implement
not less than five dairy biomethane pilot projects to demonstrate
interconnection to the common carrier pipeline system. For the purposes of
these pilot projects, gas corporations may recover in rates the reasonable
cost of pipeline infrastructure developed pursuant to the pilot projects.
(e) No later than January 1, 2018, the state board shall provide guidance
on credits generated pursuant to the Low -Carbon Fuel Standard regulations
(Subarticle 7 (commencing with Section 95480) of Title 17 of the California
Code of Regulations) and the market -based compliance mechanism
developed pursuant to Part 5 (commencing with Section 38570) of Division
25.5 from the methane reduction protocols described in the strategy and
shall ensure that projects developed before the implementation of regulations
adopted pursuant to subdivision (b) receive credit for at least 10 years.
Projects shall be eligible for an extension of credits after the first 10 years
to the extent allowed by regulations adopted pursuant to the California
Global Warming Solutions Act of 2006 (Division 25.5 (commencing with
Section 38500)).
(0 Enteric emissions reductions shall be achieved only through
incentive -based mechanisms until the state board, in consultation with the
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Ch. 395 — 6 —
department, determines that a cost-effective, considering the impact on
animal productivity, and scientifically proven method of reducing enteric
emissions is available and that adoption of the enteric emissions reduction
method would not damage animal health, public health, or consumer
acceptance. Voluntary enteric emissions reductions may be used toward
satisfying the goals of this chapter.
(g) Except as provided in this section, the state board shall not adopt
methane emissions reduction regulations controlling the emissions of
methane from dairy operations or livestock operations to achieve the 2020
and 2030 greenhouse gas emissions reduction goals established pursuant to
the California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500)).
(h) Nothing in this section shall limit the authority of the state board to
acquire planning and baseline information, including requiring the
monitoring and reporting of emissions.
(i) This section does not in any way affect the state board's or districts'
authority to regulate emissions of criteria pollutants, toxic air contaminants,
or other pollutants pursuant to other provisions of this division.
SEC. 5. Section 39730.8 is added to the Health and Safety Code, to read:
39730.8. (a) For purposes of this section, the following terms have the
following meanings:
(1) "Commission" means the Public Utilities Commission.
(2) "Energy commission" means the State Energy Resources Conservation
and Development Commission.
(3) "Strategy" means the strategy to reduce short-lived climate pollutants
developed pursuant to Section 39730.
(b) The energy commission, in consultation with the state board and the
commission, shall develop recommendations for the development and use
of renewable gas, including biomethane and biogas, as a part of its 2017
Integrated Energy Policy Report prepared pursuant to Section 25302 of the
Public Resources Code. In developing the recommendations, the energy
commission shall identify cost-effective strategies that are consistent with
existing state policies and climate change goals by considering priority end
uses of renewable gas, including biomethane and biogas, and their
interactions with state policies, including biomethane and all of the
following:
(1) The Renewables Portfolio Standard program (Article 16 (commencing
with Section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public
Utilities Code).
(2) The Low -Carbon Fuel Standard regulations (Subarticle 7
(commencing with Section 95480) of Title 17 of the California Code of
Regulations).
(3) Waste diversion goals established pursuant to Division 30
(commencing with Section 40000) of the Public Resources Code.
(4) The market -based compliance mechanism developed pursuant to Part
5 (commencing with Section 38570) of Division 25.5.
(5) The strategy.
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(c) Based on the recommendations developed pursuant to subdivision
(b), and to meet the state's climate change, renewable energy, low -carbon
fuel, and short-lived climate pollutants goals, including black carbon, landfill
diversion, and dairy methane targets identified in the strategy, state agencies
shall consider and, as appropriate, adopt policies and incentives to
significantly increase the sustainable production and use of renewable gas,
including biomethane and biogas.
(d) Based on the recommendations developed pursuant to subdivision
(b), the commission, in consultation with the energy commission and the
state board, shall consider additional policies to support the development
and use in the state of renewable gas, including biomethane and biogas, that
reduce short-lived climate pollutants in the state.
(e) In implementing this section, priority shall be given to fuels with the
greatest greenhouse gas emissions benefits, including the consideration of
carbon intensity and reduction in short-lived climate pollutants, as
appropriate.
SEC. 6. Chapter 13.1 (commencing with Section 42652) is added to Part
3 of Division 30 of the Public Resources Code, to read:
CHAPTER 13.1 . SHORT-LIVED CLIMATE POLLUTANTS
42652. The Legislature finds and declares all of the following:
(a) The organic disposal reduction targets are essential to achieving the
statewide recycling goal identified in Section 41780.01.
(b) Achieving organic waste disposal reduction targets requires significant
investment to develop organics recycling capacity.
(c) More robust state and local funding mechanisms are needed to support
the expansion of organics recycling capacity.
42652.5. (a) The department, in consultation with the State Air
Resources Board, shall adopt regulations to achieve the organic waste
reduction goals for 2020 and 2025 established in Section 39730.6 of the
Health and Safety Code. The regulations shall comply with all of the
following:
(1) May require local jurisdictions to impose requirements on generators
or other relevant entities within their jurisdiction and may authorize local
jurisdictions to impose penalties on generators for noncompliance.
(2) Shall include requirements intended to meet the goal that not less
than 20 percent of edible food that is currently disposed of is recovered for
human consumption by 2025.
(3) Shall not establish a numeric organic waste disposal limit for
individual landfills.
(4) May include different levels of requirements for local jurisdictions
and phased timelines based upon their progress in meeting the organic waste
reduction goals for 2020 and 2025 established in Section 39730.6 of the
Health and Safety Code. The department shall base its determination of
progress on relevant factors, including, but not limited to, reviews conducted
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Ch. 395 — 8
pursuant to Section 41825, the amount of organic waste disposed compared
to the 2014 level, per capita disposal rates, the review required by Section
42653, and other relevant information provided by a jurisdiction.
(5) May include penalties to be imposed by the department for
noncompliance. If penalties are included, they shall not exceed the amount
authorized pursuant to Section 41850.
(6) Shall take effect on or after January 1, 2022, except the imposition
of penalties pursuant to paragraph (1) shall not take effect until two years
after the effective date of the regulations.
(b) A local jurisdiction may charge and collect fees to recover the local
jurisdiction's costs incurred in complying with the regulations adopted
pursuant to this section.
42653. (a) No later than July 1, 2020, the department, in consultation
with the State Air Resources Board, shall analyze the progress that the waste
sector, state government, and local governments have made in achieving
the organic waste reduction goals for 2020 and 2025 established in Section
39730.6 of the Health and Safety Code. The analysis shall include all of the
following:
(1) The status of new organics recycling infrastructure development,
including the commitment of state funding and appropriate rate increases
for solid waste and recycling services to support infrastructure expansion.
(2) The progress in reducing regulatory barriers to the siting of organics
recycling facilities and the timing and effectiveness of policies that will
facilitate the permitting of organics recycling infrastructure.
(3) The status of markets for the products generated by organics recycling
facilities, including cost-effective electrical interconnection and common
carrier pipeline injection of digester biomethane and the status of markets
for compost, biomethane, and other products from the recycling of organic
waste.
(b) If the department determines that significant progress has not been
made on the items analyzed pursuant to subdivision (a), the department may
include incentives or additional requirements in the regulations described
in Section 42652 to facilitate progress towards achieving the organic waste
reduction goals for 2020 and 2025 established in Section 39730.6 of the
Health and Safety Code. The department may, upon consultation with
stakeholders, recommend to the Legislature revisions to those organic waste
reduction goals.
42654. This chapter shall not limit the authority of a local jurisdiction
to adopt, implement, or enforce requirements in addition to those set forth
in the regulations adopted pursuant to this chapter.
SEC. 7. No reimbursement is required by this act pursuant to Section 6
of Article XI11 B of the California Constitution because a local agency or
school district has the authority to levy service charges, fees, or assessments
sufficient to pay for the program or level of service mandated by this act,
within the meaning of Section 17556 of the Government Code.
V
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Attachment B
Comment Letter (March 1, 2019)
73-5to FRED WARING DRIVE
PALM DFSERT, CALIFORNIA 9226o—Zj^9
TEL: 760 346—o6i i
FAX: 760 340-0574
city halk-, city ofpalmdcscrt.org
OFFICE OF TttF MAYOR AND CITY Cot NCII
March 1, 2019
Ms. Gwen Huff
Materials Management and Local Assistance Division
California Department of Resources Recycling and Recovery
Submission via email to SLCP.Ora anics6..calrecvcle.ca.aov
SB 1383 Proaosed Regulation Released January 2019
Comment Correspondence
Dear Ms. Huff:
The City of Palm Desert appreciates the opportunity to comment on the proposed
regulations released in January 2019, which seek to implement SB 1383 (Lara, 2016).
The City has a robust waste management system that complies with California's climate
goals. Our primary concern is that the state does not have available infrastructure
capacity to fully meet the goal set forth in SB 1383. Specifically, our key concerns are as
follows:
• Infrastructure Capacity: California lacks sufficient capacity today to be able to
meet the needs for new organic waste processing. There is a lack of waste
disposal infrastructure and the five years required to implement programs is not
sufficient time to develop these new facilities.
• Funding: Lack of sufficient funds continues to be among the major challenges
local governments face in the effort to implement new organic waste diversion
programs.
• Enforcement: We appreciate the addition of a pathway to compliance as noted
in the regulations, but we urge careful consideration of the differences among local
jurisdictions, including infrastructure challenges.
• Penalties: The penalties outlined in these regulations are premature. We ask that
CalRecycle adopt penalties in a second set of regulations to take effect at a future
date.
Ms. Gwen Huff
Page 2 of 2
March 9, 2019
• Procurement: New procurement requirements in these proposed regulations
require local governments to purchase recovered organic waste products targets
set by CalRecycle, likely at substantial additional costs to local governments. We
ask that CalRecycle work to develop markets for such materials in a second
regulatory proceeding.
The City of Palm Desert appreciates the inclusive stakeholder process CalRecycle has
undertaken and the opportunity to voice our concerns on these new regulations.
Sincerely,
Susan Marie Weber
Mayor
cc. Erin Sasse, League of California Cities
League of California Cities: citvletters(acacities.ora
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