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CC - Item 7C - Discussion and Possible Support of the League of California Cities Proposed Budget Request to the State for Local Assistance for Organic Waste Recycling Progam Development and ImplementationROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, ACTING CITY MANAGER-Sfl�� DATE: APRIL 12, 2022 SUBJECT: DISCUSSION AND POSSIBLE SUPPORT OF THE LEAGUE OF CALIFORNIA CITIES PROPOSED BUDGET REQUEST TO THE STATE FOR LOCAL ASSISTANCE FOR ORGANIC WASTE RECYCLING PROGRAM DEVELOPMENT AND IMPLEMENTATION SUMMARY This item is presented to the City Council at the request of Council Member Margaret Clark to discuss the League of California Cities' (Cal Cities) budget request to the State to appropriate $180 million (General Fund) for local assistance to continue helping cities develop and implement organic waste recycling programs as mandated by Senate Bill (SB) 1383. DISCUSSION The Department of Resources Recycling and Recovery's (CalRecycle) Organic Waste Reduction Regulations (SB 1383) adopted in November 2020, require local governments to reduce landfill disposal of organic waste 75% and to increase edible food waste recovery 20% by 2025. The additional funding requested by Cal Cities will help local governments achieve the State's organic waste recycling targets. STAFF RECOMMENDATION That the City Council discuss and provide further direction to City staff. STRATEGIC PLAN IMPACT - None FISCAL IMPACT - None PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. AGENDA ITEM 7.0 City Council Meeting April 12, 2022 Page 2 of 2 Prepared by: L L— 1.0. *WW* Natalie Haworth, Deputy City Clerk Submitted by: Ericka Hernandez, City Clerk Attachment A: League of California Cities Letter to the State Attachment B: League of California Cities Requested Proposed Letter of Support Attachment A League of California Cities Letter to the State LEAGUE OF CALIFORNIA CITIES .00224. LOS ANGELES COUNTY SOLI L7 WAST L AIANAOEML Wr ❑UMMITT E V INT EGPAY I I • +s'Si f [ MAKW.1oMIAT TASK IOKCL RURAL COUNTY REPRESENTATIVES iiia—,r."°° """°`"°"'— �� •� OFCALIFORNIA Legislative Task Force CALIFORNIA 61APTERS � ink •`Recycle � waste... Tol VVI TE 9mM9Ty •9 •Smart Turning wage mm Resources ivsz •�• WESTERN PLACER at home, at work, at school AYublicAgency residual Contra Costa Solid Waste Authority March 15, 2021 The Honorable Nancy Skinner The Honorable Philip Ting Chair, Senate Budget & Fiscal Review Chair, Assembly Budget Committee Committee 1021 O Street, Suite8230 1021 O Street, Suite 8630 Sacramento, CA 95814 Sacramento, CA 95814 RE: Budget Request - $180 million (General Fund): Local Assistance for Organic Waste Recycling Program Development and Implementation On behalf of the undersigned organizations, we respectfully request a one-time $180 million increase (General Fund) in local assistance to continue helping cities and counties develop and implement organic waste recycling programs, as required by the Department of Resource Recovery's (CalRecycle) Organic Waste Reduction Regulations (SB 1383). This budget request builds on the $60 million down payment approved by the Legislature last year, and will further help local governments implement this important greenhouse gas emission reducing program and lower the cost to ratepayers. Cities and counties greatly appreciate the Legislature's funding for SB 1383 local assistance in the FY 2021-22 budget and for CalRecycle's quick establishment of the grant program. However, additional funding is greatly needed. At a recent Senate Budget Committee Subcommittee hearing, CalRecycle Director Machi Wagoner indicated that CalRecycle received 470 applications for the initial round of funding, which is insufficient to support local government projects seeking resources. Local governments are the backbone for achieving California's solid waste management and recycling goals. CalRecycle's SB 1383 Regulations adopted in November 2020 require local governments to reduce landfill disposal of organic waste 75% by 2025 and to increase edible food waste recovery 20%. SB 1383 is the farthest - reaching solid waste management change since AB 939 (Sher, 1989) and CalRecycle has estimated statewide implementation will cost $20-$40 billion over the next decade, including the addition of 50-100 new organic waste recycling facilities. Compliance obligations for local governments began in early 2022 and local governments continue to develop a comprehensive suite of local collection, enforcement, and funding programs. These activities include hiring new staff and consultants, adopting ordinances, arranging for appropriate collection services, establishing inspection and enforcement programs, procuring recovered organic waste products, providing education and outreach, developing edible food recovery programs, and reporting to CalRecycle. In order to fund all these activities, local governments must raise their rates to cover the additional costs of administering the program. At a time when inflation is at its highest rate in decades, our residents are already feeling the negative impacts on their personal budgets. This is the right time for the state to continue to fund the implementation of this program to help keep solid waste and recycling rates from increasing dramatically. The undersigned organizations jointly request a one-time S180 million increase (General Fund) for local assistance to cities and counties for local orcaanic waste recycling program development and initial implementation activities in the same manner as the current SB 1383 local assistance grants administered by CalRecycle. Given that CalRecycle has already created this grant program, we urge the Legislature to add more funding to this program to help meet local government needs. This funding request alone is not sufficient to achieve the state's organic waste recycling targets, especially considering the estimated $20-$40 billion anticipated total implementation cost; however, it will go a Iona way to help local governments and accelerate the develop the programs necessary to achieve those goals and to carry out early implementation activities. California must significantly increase the number of organic waste recycling facilities to achieve the state's goals. As we advocated for last year, we continue to need dedicated funding for infrastructure development. We believe there is merit to supplementina this budget request with an infusion of state funding into CalRecycle's Greenhouse Gas Reduction Grant and Loan Programs to provide financial assistance to develop additional organic waste recycling infrastructure. Additional funding should be focused to regional organic waste recycling and procurement solutions and to rapidly scale up edible food recovery programs. Finally, we again suggest allocating funding to CalRecycle to develop a statewide program environmental impact report for the siting and construction of organic waste composting facilities, as this could significantly reduce the time and cost to local governments necessary to construct new composting facilities. Developing suitable programs for organics diversion, obtaining the necessary approvals of programs and costs to rate payers through elected bodies, awarding contracts, and then implementing these programs will take time and resources. This $180 million allocation will go a long way to help local governments develop and implement effective organic waste recycling programs; however, we note that further statutory and regulatory changes may be necessary to maximize program effectiveness and efficiency, and address challenges that may arise in program implementation. We respectfully request the Legislature appropriate $180 million (General Fund) for local assistance as outlined above. If you should have any questions, please do not hesitate to contact Derek Dolfie of Cal Cities at ddolfie@calcities.ora: John Kennedy of RCRC at jkennedy@rcrcnet.orq; or Catherine Freeman of CSAC at cfreeman@counties.ora. Sincerely, P&&17- T* Legislative Affairs, Lobbyist League of California Cities (Cal Cities) Catherine Freeman Legislative Representative California State Association of Counties (CSAC) John Kennedy Policy Advocate Rural County Representatives of California (RCRC) M. MICHAEL MOHAJER Commissioner Los Angeles County Integrated Waste Management Task Force Tedd Ward, M.S. Director Del Norte Solid Waste Management Authority Joe La Mariana Executive Director RethinkWaste General Manager Monterey Regional Waste Management District Ken Etherington Executive Director RecycleSmart 4�4w Kevin Bell, P.E. Deputy Executive Director Western Placer Waste Management Authority WPWMA) Timothy Burroughs Executive Director StopWaste Doug Kobold LTF Chair Solid Waste Association of North America (SWANA) cc: Members of the Senate Budget and Fiscal Review Committee Members of the Assembly Budget Committee Joe Stephenshaw, Director, Senate Budget and Fiscal Review Committee Christian Griffith, Chief Consultant, Assembly Budget Committee Kirk Feely, Consultant, Senate Republican Caucus Joseph Shinstock, Consultant, Assembly Republican Caucus Kip Lipper, Office of Senate President Pro Tempore Toni Atkins Marie Liu, Office of Assembly Speaker Anthony Rendon Joanne Roy, Consultant, Senate Budget and Fiscal Review Committee Shy Forbes, Consultant, Assembly Budget Committee Kirstin Kolpitcke, Consultant, Assembly Republican Caucus Emily Reeb, Consultant, Senate Republican Caucus Genevieve Wong, Consultant, Senate Environmental Quality Committee Elizabeth MacMillan, Consultant, Assembly Natural Resources Committee Scott Seekatz, Consultant, Senate Republican Caucus Keely Bosler, Director, California Department of Finance Erika Li, Chief Deputy Director, Budget, California Department of Finance Matt Almy, Program Budget Manager, California Department of Finance Sergio Aguilar, Assistant Program Budget Manager, California Department of Finance Attachment B League of California Cities Requested Proposed Letter of Support ALL LETTERS MUST BE SENT VIA EMAIL. Please make sure to email your letters to Senator Skinner (senator.skinner@senate.ca.gov), and Assembly Member Ting (Bud getSub3@asm.ca.gov). ***CITY LETTERHEAD*** 07_\I: The Honorable Nancy Skinner The Honorable Phil Ting Chair, Senate Budget and Fiscal Review Chair, Assembly Budget Committee Committee 1021 O Street, Suite 8230 1021 O Street, Suite 8630 Sacramento, CA 95814 Sacramento, CA 95814 RE: Budget Request -$180 million (General Fund): Local Assistance for Organic Waste Recycling Program Development and Implementation Dear Assembly Member Ting and Senator Skinner: The City/Town of supports the League of California Cities (Cal Cities) request for $180 million (General Fund) in local assistance to continue helping cities develop and implement organic waste recycling programs, as required by the Department of Resources Recycling and Recovery's (CalRecycle) Organic Waste Reduction Regulations (SB 1383). This budget request builds on the $60 million down payment approved by the Legislature last year and will further help local governments implement this important greenhouse gas emission reducing program and lower the cost to ratepayers. Cities greatly appreciate the Legislature's funding for SB 1383 local assistance in the FY 2021-22 budget and CalRecycle's quick establishment of the grant program. However, additional funding is greatly needed. At a recent Senate Budget Committee Subcommittee hearing, CalRecycle Director Rachel Machi Wagoner indicated that CalRecycle received 470 applications for the initial round of funding, which is insufficient to support local government projects seeking resources. PLEASE INDICATE IF YOUR CITY APPLIED AND DID NOT RECEIVE FUNDING FOR YOUR SB 1383 GRANT OR DID NOT APPLY BUT WOULD LIKE TO IN THE FUTURE. Local governments are the backbone for achieving California's solid waste management and recycling goals. CalRecycle's SB 1383 Regulations adopted in November 2020 require local governments to reduce landfill disposal of organic waste 75% by 2025 and to increase edible food waste recovery 20%. SB 1383 is the farthest - reaching solid waste management change since AB 939 (Sher, 1989) and CalRecycle has estimated statewide implementation will cost $20 to $40 billion over the next decade, including the addition of 50-100 new organic waste recycling facilities. Compliance obligations for local governments began in early 2022 and local governments continue to develop a comprehensive suite of local collection, enforcement, and funding programs. These activities include hiring new staff and consultants, adopting ordinances, arranging for appropriate collection services, establishing inspection and enforcement programs, procuring recovered organic waste products, providing education and outreach, developing edible food recovery programs, and reporting to CalRecycle. PLEASE CITE HOW YOUR CITY WILL BE AFFECTED BY AND BENEFIT FROM THIS BUDGET PROPOSAL HERE This funding request alone is not sufficient to achieve the state's organic waste recycling targets, especially in light of the estimated $20 to $40 billion anticipated total implementation cost; however, it will go a Iona way to help local governments and accelerate the development of the programs necessary to achieve those goals and to carry out early implementation activities. In addition to this request for local program development assistance, the City/Town of recognizes that there remains additional need to dedicate funding for infrastructure development. California must significantly increase the number of organic waste recycling facilities to achieve the state's goals. We believe there is merit to supplementing this request with an infusion of state funding into CalRecycle's Greenhouse Gas Reduction Grant and Loan Programs to provide financial assistance to develop additional organic waste recycling infrastructure. We believe that some portion of those funds should be targeted to regional organic waste recycling and procurement solutions and to rapidly scale up edible food recovery programs. Finally, we suggest allocating funding to CalRecycle to develop a statewide program environmental impact report for the siting and construction of organic waste composting facilities, as such a document could significantly reduce the time necessary to construct new composting facilities. Developing suitable programs for organics diversion, obtaining the necessary approvals of programs and costs to rate payers through elected bodies, awarding contracts, and then implementing these programs will take time and resources. This $180 million allocation will help local governments develop and implement effective organic waste recycling programs; however, we note that further statutory and regulatory changes may be necessary to maximize program effectiveness and efficiency, and address challenges that may arise in program implementation. For these reasons, the City/Town of respectfully requests the Legislature appropriate $180 million (General Fund) for local assistance as outlined above. Sincerely, NAME TITLE CITY/TOWN of cc: Your Senator and Assembly Member (Via email) The Senate Budget Committee (Via email: SBUD.Committee@senate.ca.gov) The Assembly Budget Committee (Via email: AsmBud get@asm.ca.gov) Your Cal Cities Regional Public Affairs Manager (via email) League of California Cities (via email: citvletters@calcities.ora)