Bottle Bill Reform. DATE: November 5, 2014

DATE: November 5, 2014

TO: SWANA Legislative Task Force

SWANA – Southern California Chapter SWANA – Central California Sierra Chapter SWANA – Northern California Gold Rush Chapter FROM: Shaw / Yoder / Antwih, Inc.

SUBJECT: 2014 Legislative Session

The SWANA LTF was very active in Sacramento during the 2014 Legislative Session. The legislature considered a wide range of issues related to the management of solid waste and associated operations, but the focus in the legislature was largely on the management of organic waste.

The following memo is intended to provide the individual SWANA chapters with a more complete understanding of the legislative and regulatory activities of the SWANA LTF.

GENERAL ISSUES Bottle Bill Reform

The Brown Administration attempted to work with stakeholders to make needed changes to the bottle bill during the budget process. While the changes were extensive, the changes most relevant to SWANA members would have been the elimination of various payments made to local jurisdictions. The SWANA LTF signed onto a broad coalition letter opposing the proposed changes in the absence of significant modifications. The bottle bill has such a diverse set of stakeholders with competing interests that the proposal was ultimately rejected by the legislature during the budget process.

The solvency of the bottle bill program continues to be a significant issue as a result of fraud, administrative overhead, and high recycling rates. CalRecycle has repeatedly attempted to “sound the alarm” and move stakeholders and lawmakers into a negotiating posture, but little has been accomplished because broad consensus on a solution has not been reached.

However, recent indications are that the bottle bill is performing better than in previous years, which could reduce the sense of urgency in the legislature. SWANA members can expect this issue to decline in importance over the next couple of years. SWANA members should consider

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“all options on the table” when it comes to bottle bill reform – including the elimination of payments to various stakeholders, the inclusion of new product types, and anti-fraud strategies. 75% Recycling, Composting, and Source Reduction

The passage of AB 341 (Chesbro, 2012) set a new statewide goal of 75% recycling, composting, and source reduction by 2020. While this goal is not a mandate on local jurisdictions, CalRecycle is preparing a report to the legislature that contains strategies, legislative changes, and

regulatory changes necessary to meet the goal. That report will touch on many issues of

importance for local jurisdictions and SWANA members should expect a great deal of activity to be born out of that report. The SWANA LTF has submitted formal comments on AB 341

implementation and will continue to monitor the issue. Follow this LINK to the draft report. Greenhouse Gas Emissions

The ARB worked diligently to develop its Scoping Plan Update during 2014, and emissions from solid waste management operations continue to be among the targets. In fact, concern over the potential of an ARB disposal ban for green waste largely drove local governments into a

negotiating posture on AB 1594 and AB 1826. The SWANA LTF worked with a coalition of interests to submit formal comments on the ARB Scoping Plan Update, which was completed and approved by the Board on May 22, 2014. However, there have already been discussions in the legislature about extending efforts to reduce greenhouse gas emissions beyond the 2020 target identified in AB 32. Those conversations can be expected to continue in 2015 and beyond.

Cap and Trade Funding

The Governor’s proposed budget earmarked $30 million in Cap and Trade funds for the development of composting infrastructure and markets in an effort to assist local jurisdictions with emission reductions, mostly related to organic waste (food waste, greenwaste, etc.). During the 2014-2015 budget discussion the SWANA LTF actively lobbied the budget subcommittee to increase the appropriation back to the $30 million proposed by the Governor. The legislature ultimately maintained the reduction to $20 million; however, SWANA members can expect this to be an issue legislators will wrestle with the budget in 2015.

Follow this LINK to the SWANA LTF letter in support of the $30 million funding level. LEGISLATION

The bills outlined below were considered by the California State Legislature in 2014 and actively lobbied by the SWANA LTF:

AB 1337 (Allen) Local Bag Ordinance Prohibition

This bill would have preempted existing, and prohibited future ordinances banning single use bags in local jurisdictions. The bill was in response to the few hundred local ordinances in

existence across California. The SWANA LTF opposed this measure because it infringed on local decision-making.

Result: The bill was killed in the first policy committee.

Projected 2015 Activity – There will be little or no action on single use bags in 2015. AB 1504 (Stone) – Single-use Cigarette Filters

This bill would have prohibited the sale of single-use cigarette filters in California. The general purpose of the bill was to reduce litter and chemical contamination resulting from littered cigarette filters. The SWANA LTF supported the bill as a litter abatement strategy.

Result: The bill was ultimately killed in the legislature by the tobacco companies.

Projected 2015 Activity – This bill is likely to be reintroduced in 2015, but it is several years away from passage and signature.

AB 1594 (Williams) – Green Waste as ADC

This legislation, beginning January 1, 2020, eliminates diversion credit for green waste used as alternative daily cover. Specifically, the bill requires local governments to begin reporting to CalRecycle in 2018 on how they will meet the provisions of the new law. An amendment was taken to the bill in the Assembly Appropriations Committee to also eliminate the tipping fee for green waste used as ADC after January 1, 2020. So while a jurisdiction will not be able to claim diversion credit, they would still avoid paying the tipping fee for green waste used as ADC after the January 1, 2020 implementation. The bill was sponsored by Californians Against Waste. The SWANA LTF was actively engaged in the discussion on AB 1594 and ultimately ended up neutral on the bill once it had been amended to remove the tipping fee on the use of organic waste as ADC.

Result: Governor Brown signed the bill into law over the objection of CalRecycle, but signaled in his signing message that CalRecycle funding sources needed to be addressed. This should be considered a signal that the tipping fee on green waste used as ADC after January 1, 2020 could be reassessed as CalRecycle’s funding sources are examined in coming years.

Projected 2015 Activity: While the management of organic waste was largely addressed in 2014, WPWMA should prepare for a discussion about CalRecycle funding sources. The department has been clear that new funding sources will need to be identified as disposal continues to decrease.

AB 1743 (Ting) – Hypodermic Needles and Syringes

This bill extended the sunset on existing law that authorizes medical professionals to distribute hypodermic needles to people without a prescription. The SWANA LTF withheld support for this

bill and asked for an amendment that would have required the furnishing of a safe-disposal container with needles provided under this program.

Result: The bill was not amended in accordance with SWANA’s expectations because it would have added too much cost to the program and worked counter to the intent of providing safe needles to the public. The bill was passed and signed by Governor Brown.

Projected 2015 Activity – There will not be a similar bill in 2015. AB 1826 (Chesbro) – Mandatory Commercial Organics

This legislation requires local jurisdictions to design and implement an ordinance requiring commercial generators of organic waste to arrange for recycling services for that material. The requirements are phased-in over three years (2016-2019). The bill contains limited exemptions for rural counties (population under 70,000), and also allows local jurisdictions to exempt

businesses under a certain generation threshold. The bill was sponsored by Californians Against Waste. The bill also allowed businesses subject to the requirements to comply through mixed waste processing, but does not contain the same “comparable to source separation” language that was contained in AB 341 (Chesbro, 2011).

The SWANA LTF worked diligently on this bill in 2014, providing suggested amendments and working with staff to improve the bill. As a result of the progress made on the bill, the SWANA LTF ultimately removed opposition to the bill.

Result: Governor Brown signed AB 1826.

Projected 2015 Activity: CalRecycle is likely to take administrative action to implement this legislation. SWANA members can expect some decisions to be made in 2015 considering that the first tier of commercial generators is required to comply in 2016.

AB 1893 (Stone) – Sharps Disposal

The California Product Stewardship Council sponsored this measure that requires manufacturers of sharps (syringes, pin needles, lancets) to provide a safe disposal container along with any sale of more than 50 sharps. The bill was intended to improve worker safety and reduce costs for local governments. SWANA actively supported this measure throughout the legislative process. Result: The bill was moving through the process but was ultimately held on the Assembly Floor for reasons unrelated to the merits of the bill.

Projected 2015 Activity: There is a possibility that the bill will be reintroduced considering that it made substantial progress in 2014 and there is strong labor support from the California Labor Federation and the Teamsters.

AB 2284 (Williams) – Battery EPR

The California Product Stewardship Council sponsored this bill to require manufacturers of primary batteries (single use) to design, implement, and fund an EPR program for their products. The SWANA LTF actively supported this measure.

Result: The bill was in the process of being expanded, with industry cooperation, to cover both primary and rechargeable batteries when it was gutted in the Assembly Appropriations

Committee at the request of cable providers and toy manufacturers who had exposure for batteries in their products that would not otherwise be covered by a manufacturer’s EPR program.

Projected 2015 Activity: SWANA members can expect this issue to surface once again, potentially in 2015.

AB 2371 (Mullen) – Household Hazardous Waste

This bill was sponsored by Waste Management and required local jurisdictions to provide certain information on the effectiveness of their HHW programs to CalRecycle. The SWANA LTF worked with waste management and the author’s office to ensure they understood the

reporting burden being placed on local governments by the bill.

Result: The bill was more of a “conversation starter” than anything and it was ultimately held by the author because of objections to additional reporting by local governments.

Projected 2015 Activity: This conversation was largely driven by the desire to expand existing curbside collection services offered by some haulers. The concept of curbside collection of hazardous products has been seized upon by opponents of EPR and SWANA members should expect some sort of counter-offensive by those opponents that includes a ratepayer funded curbside collection component.

SB 270 (Padilla) – Plastic Bag Ban

This bill was sponsored by Californians Against Waste and phases out the use of single-use plastic bags, imposes standards for reusable bags, and requires stores to charge a minimum of 10 cents per bag for paper and reusable bags that are provided to customers. The bill contains limited preemption of local ordinances on the same subject. The SWANA LTF urged the

legislature to further protect local governments from preemption by state law, but did not oppose the bill.

Result: The bill was signed by Governor Brown after a decade of attempts. However, the plastic bag industry is already contracted with professional signature gatherers to qualify a referendum for the 2016 ballot. Early indications are that the plastic bag industry will aggressively fund the referendum in an effort to overturn the law.

Projected 2015 Activity: SWANA members should not anticipate further legislative action on this issue in 2015.

SB 498 (Lara) – Anaerobic Digestion

This bill adds the production of fuels and the use of non-combustion thermal conversion technologies to the definition of biomass conversion for purposes of the Integrated Waste Management Act. The SWANA LTF urged Governor Brown to sign this measure as an interim step forward.

Result: This bill was signed by Governor Brown after it was vetoed the year prior.

Projected 2015 Activity: SWANA members can expect continuing discussions over conversion technology and it’s place in any strategy to meet the statewide 75% recycling, composting, and waste reduction goal.

SB 1014 (Jackson) – Pharmaceutical EPR

This bill was sponsored by the California Product Stewardship Council, Clean Water Action, Alameda County, the City and County of San Francisco, and the California Association of Retired Americans and would have required manufacturers of both prescription and over-the-counter medications to design, implement, and fund an EPR program. The SWANA LTF actively supported this measure.

Result: The bill was heavily opposed by pharmaceutical companies and their trade associations. The bill was amended significantly in the Senate Business and Professions Committee and was ultimately held by the author to ensure that it would not interfere in ongoing litigation over the Alameda County pharmaceutical EPR ordinance.

Projected 2015 Activity: This bill will be reintroduced in some form. Conversations are ongoing with the opposition and more information should be available by the end of 2014.

Contact Information for SWANA LTF Lobbyist Jason Schmelzer

Shaw / Yoder / Antwih, Inc. 1415 L Street, Suite 1000 [email protected]

916-446-4656

2014 IN REVIEW

Legislation and Regulations

At the annual workshop held in November 2014, the

SWANA Legislative Task Force (LTF) discussed the significant regulatory and legislative activities that occurred over the past year relating to solid waste

management, and how these

may serve as policy drivers in 2015. CalRecycle’s “75 Percent Recycling Plan” and the California Air Resources Board’s “Waste Sector Plan” are the most significant initiatives and will likely continue to drive policy in 2015.

2015 OUTLOOK

In 2015 the Legislature will likely introduce several

bills related to solid waste management, including ,

changes to the Disposal Based Funding of

CalRecycle/ State agency funding sources, Extended

Producer Responsibility, regulatory oversight of

organic waste facilities, and portions of

CalRecycle’s 75 Percent Plan.

SWANA LEGISLATIVE TASK FORCE

California Chapters

_{2015 WORK PLAN}

November 2014

Purpose

•••

The Work Plan serves as a policy guide for the

Legislative Task Force of the SWANA California Chapters when it considers taking positions on proposed legislation, performing advocacy, and conducting outreach.

2015 PRIORITIES

Policy Topics ••• • Development of Local Markets • Organics Diversion • Extended Producer Responsibility / Product Stewardship / Lifecycles Issues

• Energy Recovery / Emerging Technologies

• State Agency Regulations: CARB, CalRecycle, Water Boards, OEHHA

• Sustainable funding for CalRecycle

• Local Government Authority

• “Comparable” Facility Performance Standards

MISSION STATEMENT:

To represent local government interests and the

three California Chapters’ membership in

developing and advocating environmentally and

technically sound, economical solid waste policy

at the most appropriate government level

ACTION ITEMS:

1.

Promote the position papers developed by the LTF and SWANA National, and work with

agencies to change plans such as CalRecycle’s “75% Recycling” and ARB’s Scoping Plan to be consistent with the SWANA positions papers.

2.

Support legislation and regulations that provide economic incentives for development of

in-California manufacturing facilities that use materials recovered through recycling activities.

3.

Encourage effective management approaches, such as extended producer responsibility, for

e-waste / universal / medical / pharmaceutical / household hazardous waste / paint / carpet / mattresses / sharps / and other items.

4.

Oppose unrealistic best efforts requirements and promote transparency of jurisdiction

Integrated Waste Management Plan review.

5.

Reduce legislative, regulatory, and economic barriers to energy recovery from MSW, such as

modifying Renewable Portfolio Standards and lowering interconnection fees.

6.

Support diversion credit and incentives for emerging technologies. Support the development

of emerging technology by:

• Opposing laws and regulations that treat these facilities as disposal facilities. • Promoting realistic requirements for front end recovery of recyclable materials.

7.

Encourage life cycle analysis including a consideration of economics

8.

Encourage effective management of organic material, for example by:

GOAL:

Ensure, through active participation in the development and review process, reasonable laws and regulations that assure economic feasibility and protection of health, safety, and the environment. OBJECTIVES:

Influence laws and regulation to be supportive of the LTF Mission Statement and White Papers. Work with agencies, legislators, and organizations to reverse the “End of the Pipe” paradigm, i.e., work towards solutions that focus much more on solid waste prevention and beneficial reuse. Promote meaningful stakeholder input in the development of plans, policies, and regulations. Promote consideration of full life-cycle impacts associated with various solid waste management approaches. Promote the training and professionalism of the solid waste industry.

LAWS AND REGULATIONS

SWANA Legislative Task Force 2015 Work Plan Laws and Regulations • Promoting consistent definitions and a distinction regarding “compostable” versus

“non-compostable” organic materials,

• Basing laws and regulations on threats identified by credible studies, • Encouraging market development

• Allowing phased implementation • Providing financial assistance • Considering local conditions • Providing “Tools, not Rules”

• Promoting integration of emerging technologies into the solid waste hierarchy.

9.

Support continued ability to use materials beneficially within solid waste facilities.

10.

“Don’t Ban Without a Plan.”

11.

Support recognition of the unique characteristics of solid waste facilities and promote

reasonable storm water regulations.

12.

Promote the use of Siting Elements as a local planning tool.

13.

Promote appropriate uses for Materials Recovery Facility fines and residuals.

14.

Oppose legislation mandating that all waste must pass through MRFs.

15.

Support the requirement for a basic level of training of solid waste managers and inspectors.

Promote joint training opportunities, and maintain a certification program.

16.

Support legislation to include local government in the definition of solid waste enterprise

with regard to five year continuation rights.

17.

Promote a more effective and financial sustainable Bottle Bill.

18.

Ensure effectiveness and equitability of any new Advanced Disposal Fees.

19.

Promote sustainable / non-discriminatory funding for CalRecycle programs.

20.

Promote practices, policies, laws and regulations that discourage illegal dumping and also

discourage the theft of materials for recycling.

21.

Promote recognition that solid waste facilities are an essential part of the infrastructure for

public health and safety and do not belong in the Cap and Trade system. Support Cap and Trade funding for solid waste practices that reduce greenhouse gas emissions.

22.

Promote streamlining CEQA processes.

23.

Promote sustainable development through the Green Building Code and other State

regulations.

24.

Encourage effective management of the Tire Fund.

ACTION ITEMS:

1.

Promote streamlining by eliminating non-essential programs and minimizing redundant

regulations.

2.

Promote limits on agency review periods and the ability to appeal an agency’s decisions.

3.

Promote only those State Water Board requirements, including requirements associated with

storm water, ground water, and Waste Discharge Requirements, that are necessary, feasible and cost-effective and provide local flexibility.

4.

Promote State agencies’ commitment to waste diversion. Support regulations and legislation

to further this goal.

5.

Support legislation that would provide for local government stakeholder participation with

State and regional agencies.

6.

Support efforts to eliminate overlapping and conflicting state goals and policies.

7.

Support legislation and/or regulations that provide local government with the authority and

means to achieve and fund mandated activities.

8.

Support equitable solutions to waste export issues and address the applicability of State and

local tonnage fees on exported waste.

9.

Support efforts to provide the regulated community with greater due process in any

enforcement or other directed activity of any enforcement agency.

10.

Support retention of local authority to provide enforcement and designate LEAs.

11.

Promote appropriate use of the OEHHA California Communities Environmental Health

Screening Tool and the US EPA EJ SCREEN to assure that they don’t undermine or preempt local authority.

12.

Promote Green Chemistry initiatives.

13.

Support limits on the abuse of citizen suit/attorney fees provisions of the federal Clean Water

Act.

LOCAL AUTHORITY AND GOVERNMENT ORGANIZATION

GOAL:

Promote control (and reorganization as necessary) of solid waste policy and operations, at the lowest governmental level possible. Emphasize:

•

Effective, certified staffing for all aspects of solid waste management

•

Cost-effectiveness

•

Environmental soundness

•

Maximum flexibility for optimized solutions

ACTION ITEMS:

1.

Enhance influence of California Chapters of SWANA with Legislature and regulatory

agencies, and encourage them to consider the global impacts of their actions.

a.

Establish and maintain contacts with key legislators, their staff, Cal/EPA, Natural

Resources Agency, Department of Resources Recycling and Recovery, SWRCB Board members and staff, CARB Board members and staff, DTSC staff, DOC, Department of Health, and other relevant state agencies and departments and other officials. Furnish information as appropriate.

b.

Encourage local members’ involvement with regional agencies.

c.

Disseminate priorities and positions of SWANA and LTF

d.

Prepare and develop white papers and other communications.

2.

Support and promote policies developed by SWANA International, such as:

a.

Product Stewardship Policy,

b.

Policy on Solid Waste Disposal Ban,

c.

The “Pushing the Envelope” document,

d.

Applied Research Documents / Emerging Technologies.

3.

Monitor nationally significant rulings and issues that may affect California. Identify

potential statewide impacts and broadly disseminate information, and assist as necessary. Also, solicit input from all California members.

4.

Maintain and strengthen coalition building with associations with compatible goals and

objectives such as:

a.

California State Association of Counties

b.

League of California Cities

c.

Regional Council of Rural Counties / Environmental Services Joint Powers Authority

d.

California Conference of Directors of Environmental Health

e.

Local Enforcement Agencies

f.

County Engineers Association of California

g.

Private Haulers / Solid Waste Industry Group

GOAL:

Increase awareness of legislative and regulatory issues within SWANA’s membership, and enhance the ability and effectiveness of the LTF to influence the legislature, regulatory agencies, and other associations in support of the LTF Mission Statement and adopted positions.

OUTREACH AND AWARENESS

SWANA Legislative Task Force 2015 Work Plan Outreach and Awareness

h.

Councils of Government

i.

American Public Works Association

j.

Environmental Organizations

k.

Product Stewardship Organizations

l.

Bio Energy Organizations

m.

Build Infrastructure Now (BIN)

5.

Inform SWANA membership of legislative, regulatory, planning, and judicial issues.

a.

Send four newsletters to LTF members and interested parties.

b.

Send e-mail bulletins to all interested California SWANA members to inform them of

important developments and seek support of SWANA membership on critical issues.

c.

Provide updates at chapter meetings, and to the general membership.

d.

Encourage SWANA membership to keep local government and special district officials

aware of issues of greatest importance to SWANA.

6.

Maintain an effective LTF website. Post on LTF website industry comment letters and

coalition letters on which SWANA California Chapters are signatories.

7.

Promote awareness of training, education, and certification opportunities provided by

SWANA. Support the requirement for a basic level of training of landfill managers and inspectors. Promote joint training opportunities, and maintain a certification program.

8.

Enhance education and awareness of SWANA membership through presentation of a

legislative and regulatory session at the Western Regional Symposium and other forums.

SWANA LEGISLATIVE TASK FORCE MEMBERS

California Chapters

2015OFFICERS and DIRECTORS (nominated)

Chair – Nancy L. Ewert, P.E.

Vice Chair – Mark Bowers

Treasurer – Glenn Acosta

Secretary – Mark J. Urquhart, P.E.

GOLD RUSH CHAPTER:

William Merry, P.E., Monterey Regional Waste Management District Mark J. Urquhart, P.E.

Christina Hanson, Placer County

Larry Sweetser, Sweetser & Associates, Inc./ESJPA Mark Bowers, City of Sunnyvale

FOUNDING CHAPTER:Glenn Acosta, P.E., Sanitation Districts of Los Angeles County

Sharon Green, Sanitation Districts of Los Angeles County

Mike Mohajer, P.E., Southern California Waste Management Forum Jesus Perez, Orange County

Lisa Wood, City of San Diego

Chuck Boehmke, P.E., Sanitation Districts of Los Angeles County, Alternate Constance Hornig, Esq., Law Offices, Alternate

SIERRA CHAPTER:

Herb Cantu, Fresno County Nancy Ewert, P.E., Kern County

Eric Greenwood, P.E., P.G., Kern County Curtis Larkin, Fresno County

Eric Zetz, City of Clovis

Brian Klatt, P.E., Kern County, Alternate

LOBBYIST:

SHAW/YODER/ANTWIH INC. Jason Schmelzer, Legislative Advocate

(916) 446-4656

www.shawyoderantwih.com/