AB 1826 New Legislation for Diverting Organics from the Landfill Zero Waste Symposium February 17, 2015 presenters: Tara Gauthier and Charlene Graham

Policy Drivers AB 939 50% diversion requirement for jurisdictions AB 341 75% statewide waste reduction by 2020 Mandates commercial recycling AB 32 Air Resources Board Scoping Plan Waste Sector Reduce GHGs to 1990 levels 2

3 Where Are We Now? 49%* Recycling 51% Disposal Currently Recycled (PPD) * This calculated value uses landfill reported disposal and a calculation methodology to estimate diversion.

Projected 2020 Tonnages to Reach Minimum 75% Recycling 4 23 MT 29% 20 MT 25% 37 MT 46% Additional Recycling Needed by 2020 Can Still be Disposed in 2020 Recycled in 2012

Why Organics? >30% of total disposal is compostable/digestible No way to 75% without it AB 32 Scoping Plan identifies organics as key player to help meet GHG goals Decomposing organic waste in landfills produces methane (CH4) Methane has more than 20 x global warming potential of carbon dioxide (CO2) Diverting ½ = 3 - 4 MMTCO 2 e reduction/year 5

Why Divert Food? 35 million tons of waste/year disposed in California 6 million tons = food scraps = 17% of disposal Co - benefits of diverting food waste 6

Sticks Reduce organics disposal through: Legislation - AB 1826 (statutorily mandated commercial recycling of organics) + AB 1594 (ADC = disposal) AND/OR Regulation - Air Resources Board could implement landfill ban through direct regulations 7

AB 1826 Business Requirements Businesses are required to divert organics by the following dates: 8 Multifamily complexes are not required to divert food waste. Apr 2016 Businesses generating 8 CY organics/week required to have organic waste recycling Jan 2017 4 CY/week of organics Jan 2019 4 CY/week of solid waste 2020 Trigger CalRecycle can reduce to 2 CY/week of solid waste if statewide organics disposal not cut in half

AB 1826 Jurisdiction Requirements 9 Jan 2016 Implement Program Organics recycling program Outreach, education, monitoring Identify multiple parameters and barriers; plan to address barriers under control of jurisdiction May include mandatory recycling via policy or ordinance, franchise agreement or contract, or by requiring material to go through MRF Rural exemption process

AB 1826 Jurisdiction Requirements (cont.) 10 Aug 2017 Annual Report Education/outreach/monitoring Include # of regulated businesses that generate organics, # of regulated businesses that recycle organics, and, if available, tonnage being diverted Facilities/plans to address barriers

How CalRecycle is Addressing Challenges Developing regulations composting and AD Encouraging markets Working with other agencies 11

CalRecycle Addressing Challenges (continued) Creating financial incentives Funding from Cap & Trade revenues $25 million in FY 2014 - 15 $25 million again in FY 2015 - 16 12

CalRecycle GHG Reduction Programs Two Grant Programs ($20 million) Organic materials ($15 million) Fiber, Plastic, and Glass ($5 million) Statewide, competitive One Loan Program ($5 million, revolving) Organics & Fiber, Plastic, and Glass Statewide, competitive 13

Goals and Co - Benefits Goals Reduce GHG emissions Expand composting & AD infrastructure Expand manufacturing from paper, resins and glass Assist disadvantaged communities Co - Benefits Enhance air and water protection at organics sites Create jobs In - state biofuel/bioenergy production 14

CalRecycle Information and Contacts Grant and loan documents and application http://www.calrecycle.ca.gov/Climate/GrantsLoans/ Mandatory Commercial Organics Recycling Webpage http ://www.calrecycle.ca.gov/Recycle/Commercial/Organics / Subscribe to Mandatory Organics Recycling listserv http ://www.calrecycle.ca.gov/Listservs/Subscribe.aspx?ListID=138 Grant questions GHGreductions@CalRecycle.ca.gov Loan questions Loans@CalRecycle.ca.gov 15