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CC - Item 4B - Senate Bill 1778• City of Rosemead Agenda Report TO: MAYOR AND CITY COUNCIL FROM: ANDREW C. LAZZARETTO, CITY MANAGER(if DATE: MAY 9, 2006 SUBJECT: SENATE BILL 1778 SUMMARY On April 26, 2006, the County Sanitation Districts of Los Angeles County sent the City a letter (Attachment A) requesting that Rosemead go on the record in opposition to Senate Bill (SB) 1778 by Senator Richard Alarcon. A copy of the legislation is included for your review as Attachment B. Staff Recommendation Staff recommends that the City Council take the following action: 1. Vote to oppose SB 1778. 2. Direct the City Manager to send a letter to each member of the Senate Appropriations Committee stating the City's opposition to SB 1778. ANALYSIS SB 1778 seeks to eliminate the diversion credit cities currently receive for recycling green waste materials. If approved, the legislation would make meeting the State mandated 50% solid waste diversion rate extremely taxing for all municipalities. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. STAFF RECOMMENDATION Staff recommends that the City Council take the following action: 1. Vote to oppose SB 1778. 2. Direct the City Manager to send a letter to each member of the Senate Appropriations Committee stating the City's opposition to SB 1778. ALTERNATIVES TO STAFF RECOMMENDATION In addition to the staff recommendation, there are the following alternatives for the City Council's consideration: 1. Request additional information. 2. Take no action. Prepared by: OL J--. Oliver Chi Director of Administrative Services CADocuments and Settingslochi.CrrYOFROSEMEAD\My Documents\.Staff ReportslCity Position On S8 1778 - (May 9, 2006).doc y ~0L ATTACHMENT A WATEP DECLAMATION COUNTY SANITATION DISTRICTS OF LOS ANGELES COUNTY 1955 Workman Mill Road, Whittier, CA 90601.1400 Mailing Address: P.O. Box 4998, Whittier, CA 90607-4998 Telephone: (562) 699-7411, FAX: (562) 699.5422 www.ic3csd.org April 26, 2006 Boards of Directors County Sanitation Districts of Los Angeles County Dear Directors: Senate Bill 1778 (Alarcon) - Oppose Position JAMES F. STAHI Chief Engineer and General Manager At the April 2006 Board meetings, the Directors were briefed on Senate Bill (SB) 1778 by Senator Richard Alarcon. SB 1778 would place restrictions on the recycling of green waste materials as alternative daily cover (ADC) at landfills by eliminating the diversion credit for cities currently allowed for green materials used as ADC. Most cities, as well as the County, provide source-separated green waste for ADC, and, as of 2004, approximately half of the local jurisdictions in Los Angeles County reached 10 percent% of their diversion through the recycling of green waste as ADC (and some relied on it for much more of their diversion). Thus, the continuation of this program is very important for cities and counties to be able to meet the 50% solid waste diversion mandate of Assembly Bill (AB) 939. Landfill ADC provides a reliable, consistent and cost-effective market for green waste, and no viable alternative processing capacity or end-use market exists. SB 1778 is very similar to the now-dead SB 411 (Alarcon), which also would have eliminated diversion credit for green waste ADC, but which was held in the Senate Appropriations Committee earlier in 2006. In addition to adoption of a Resolution in opposition to SB 411 in January and February 2006, at the April Board meetings, the Boards have adopted a Resolution in support of the continuation of AB 939 Diversion Credit for Use of Green Waste as Alternative Daily Cover at Landfills (copy attached) to be used in opposition to SB 1778. Despite opposition by the Sanitation Districts, the League of California Cities, the California State Association of Counties, and a number of solid waste management companies and trade associations, SB 1778 was passed by the Senate Environmental Quality Committee on April 24, 2006. SB 1778 now heads for the Senate Appropriations Committee, which will hear the bill some time in May. I strongly urge all concerned cities send letters to the Senate Appropriations Committee and urge the members to vote "no" on SB 1778. Attached for your reference are the copy of the bill, a sample opposition letter, a fact sheet on SB 1778, and a roster of the members of the Senate Appropriations Committee. If you have questions, please call Steve Maguin or me at (562) 699-7411. Very truly yours, James R Stahl JFS:sng Enclosures cc: City Managers/City Administrators 0 Recycled Paper 11 • • ATTACHMENT B AMENDED IN SENATE MAY 1, 2006 AMENDED IN SENATE APRIL 4, 2006 SENATE BILL No. 1778 Introduced by Senator Alarcon February 24, 2006 An act to amend Section 41781.3 of, and to add Seetion 41:78 the Public Resources Code, and to repeal Section I of Chapter 978 of the Statutes of 1996, relating to solid waste. LEGISLATIVE COUNSEL'S DIGEST SB 1778, as amended, Alarcon. Solid waste: alternative daily cover,: compost. (1) The existing California Integrated Waste Management Act of 1989, which is administered by the California Integrated Waste Management Board, establishes an integrated waste management program. Under existing law, the act requires each city, county, city and county, and regional agency, if any, to develop a source reduction and recycling element of an integrated waste management plan containing specified components. On and after January I, 2000, the element is required to divert 50% of the solid waste subject to the element; from landfill disposal or transformation through source reduction, recycling, and composting activities, except as specified. Existing law provides that the use of solid waste for beneficial reuse in the construction and operation of a solid waste landfill, including use of alternative daily cover, is diversion and not disposal for purposes of that requirement. This bill would instead require that, if the alternative daily cover is comprised of woody and green material, as the bill would define that term, that material not to be considered as being diverted and to be 97 • • SB 1778 -2- included in the amount of solid waste that is subject to disposal for purposes of the diversion requirements of the act, thereby imposing a state-mandated local program by imposing new duties upon local agencies. The bill would require the board to develop a schedule for excluding solid waste that is used as an alternative daily cover and comprised of woody and green material from being included in meeting the diversion requirements of the act. The bill would require the board, on or before January 1, 2010, to adopt or revise regulations that establish conditions for the use of alternative daily cover, as specified. The bill would prohibit the schedule from commencing prior to the board's adoption or revision of those regulations. The bill also would repeal legislative findings pertaining to diversion, landfill cover materials, and green materials. (2) 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. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact as follows: I SECTION 1. The Legislature finds and declares all of the 2 following: 3 (a) Californians create nearly 2,900 pounds, or nearly one and 4 one-half tons, of household garbage and industrial waste each 5 and every second, which is a total of 45 million tons of waste per 6 year. 97 L -3- SB 1778 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 (b) Until recently, the only place to put that trash was in local landfills. Today, however, waste and its byproducts are being recycled into more useful products. (c) At the present time, the amount of green materials generated in California is in excess of the quantity that existing markets can absorb. It is thus in the interests of the state to encourage the expansion of markets for green materials. (d) It is the intent of the Legislature that the California Integrated Waste Management Board, and other state agencies, continue their efforts to promote the expansion of compost and other markets. SEC. 2. Section 41781.3 of the Public Resources Code is amended to read: 41781.3. (a) (1) The use of solid waste for beneficial reuse in the construction and operation of a solid waste landfill, including the use of alternative daily cover that is not comprised of woody and green material and that reduces or eliminates the amount of solid waste being disposed, for purposes of Section 40124, shall constitute diversion through recycling and shall not be considered disposal for the purposes of this division. (2) If the alternative daily cover is comprised of woody and green material, that material shall not be considered as being diverted, as defined in Section 40124, and shall be included in determining the amount of solid waste that is subject to disposal for purposes of this division, in accordance with a schedule adopted pursuant to subdivision (b). (b) The board shall adopt a schedule for excluding solid waste that is used as an alternative daily cover and is comprised of woody and green material from being included in meeting the diversion requirements of this division. The schedule shall not commence prior to adoption or revision of regulations pursuant to subdivision (c). (c) On or before January 1, 2010, the board shall adopt or revise regulations that establish conditions for the use of alternative daily cover that are consistent with this division. In adopting or revising the regulations, the board shall consider, but is not limited to, all of the following criteria: (1) Those conditions established in past policies adopted by the board affecting the use of alternative daily cover. 97 SB 1778 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 LJ -4- 0 (2) Those conditions necessary to provide for the continued economic development, economic viability, and employment opportunities provided by the composting industry in the state. (3) Those performance standards and limitations on maximum functional thickness necessary to ensure protection of public health and safety consistent with state minimum standards. (d) In adopting regulations pursuant to this section, Section 40124, and this division, including, but not limited to, Part 2 (commencing with Section 40900), the board shall provide guidance to local enforcement agencies on any conditions and restrictions on the utilization of alternative daily cover so as to ensure proper enforcement of those rules and regulations. (e) For the purposes of this section, "woody and green material" means plant material that is either separated at the point of generation or separated at a centralized facility that employs methods to minimize contamination. Woody and green material includes, but is not limited to, yard trimmings, untreated wood waste, paper products, and natural fiber products. Woody and green material does not include treated wood waste, mixed demolition or mixed construction debris, or manure and plant waste from the food processing industry, alone or blended with soil. Woody and green material may include varying proportions of wood waste from urban and other sources. 41:781.4. The beaid shall adopt regulations to establish -a market development eedit adjustment fiteten The marke board shall > things, whether the eernpost is. le SEE- SEC. 3. Section 1 of Chapter 978 of the Statutes of 1996 is repealed. 97 0 0 - 5 - SB 1778 1 SEE. 5.. 2 SEC. 4. No reimbursement is required by this act pursuant to 3 Section 6 of Article XIII B of the California Constitution because 4 a local agency or school district has the authority to levy service 5 charges, fees, or assessments sufficient to pay for the program or 6 level of service mandated by this act, within the meaning of 7 Section 17556 of the Government Code. O 97