John Davis Mojave Desert and Mountain Recycling Authority

Purpose: To reduce the level of statewide greenhouse gas emissions in 2020 to 1990 levels

Air Resources Board Regulations shall include:  Direct emission reduction measures  Market-based compliance mechanisms and monetary and non-monetary incentives  Potential monetary and non-monetary incentives for sources of greenhouse gases to achieve the maximum feasible and cost-effective reductions of greenhouse gas emissions by 2020.

 Regulations include an enforceable GHG cap that will decline over time  ARB will distribute allowances, which are tradable permits, equal to the emissions allowed under the cap  Allowances also purchased at auctions  Auction proceeds used for incentives to reduce greenhouse gas emissions

 Traditional GHG inventory protocols are stationary: smokestacks and tail pipes  Carbon offsets and tradable allowances must be verifiable  Recycling and composting emission reductions are global, upstream and downstream  Verification  Verification across the supply chain is virtually impossible

 Achieve 1990 emissions level by 2020  Only landfill methane reduction counted toward the target  Waste Sector accomplishments  Landfill Methane Capture Strategy  Mandatory Commercial Recycling  Compost & Recycling Emission Reduction Factors  Programmatic EIR for AD facilities  CEQA Guidance Document for AD facilities  LCFS – HSAD pathway

Emission Reductions from Compost from Commercial Organic Waste  Method for Estimating Greenhouse Gas Emission Reductions from Compost from Commercial Organic Waste  /protocols/localgov/pubs/ compost_method.pdf /protocols/localgov/pubs/ compost_method.pdf /protocols/localgov/pubs/ compost_method.pdf Emission Reductions from Recycling  Method for Estimating Greenhouse Gas Emission Reductions from Recycling protocols/localgov/pubs/re cycling_method.pdf protocols/localgov/pubs/re cycling_method.pdf

 75% recycling means we need to move 22 million tons from landfills  20 – 30 MMTCO2e in GHG reductions by meeting 75% recycling goal  Waste Sector Plan identifies activities to achieve significant GHG reductions 10

 2035: Net-Zero GHG Emissions  2050: Reduce direct GHG emissions by 25%  Take full ownership of waste generated in California 11

 Reduce waste generated  Increase recycling, composting, AD infrastructure  Eliminate Disposal of Organics in Landfills  Expand and create markets for recycled materials and products  Determine role of thermal processes and energy recovery 12

 The primary source of GHG emissions from this sector is the direct emission of methane from the decomposition of organic material in landfills.  However, recycling, reuse, and reduction of waste materials will reduce upstream GHG emissions associated with the production and transport of products. 13

 Although many of these upstream GHG emissions happen outside of California, California’s waste policies can help reduce both local and global GHG emissions and create jobs within the State. 14

Key Waste Sector Recommendations  Eliminate organic materials disposal at landfills  Financing incentives for in- State infrastructure  Address cross-agency permitting and siting challenges for composting and AD  New emission reduction factors  State agency procurement 15

 Cap-and-Trade Auction Proceeds Investment Plan  Released May 2013  Fiscal Years through  2014/2015 Budget - $832 million in GGRF proceeds  Sustainable Communities & Clean Transportation $630 million  Energy Efficiency and Renewable Energy $110 million  Natural Resources and Waste Diversion $92 million Greenhouse Gas Reduction Fund 16

 Maximize economic, environmental, and public health benefits  Create jobs  Improve air quality  Invest in projects that benefit disadvantaged communities  Provide opportunities for businesses, public agencies, nonprofits, and others to participate in efforts to reduce GHG emissions  Lessen the impacts and effects of climate change Greenhouse Gas Reduction Fund 17

 Waste Diversion $25 million  Reduce greenhouse gas emissions through increased in- state diversion of municipal solid waste from disposal through waste reduction, diversion, and reuse  > Revenues in 2020: how much? Greenhouse Gas Reduction Fund 18

Scoring Criteria:  All programs competitive  Must demonstrate GHG reductions, increased tons from landfills  Provisions for disadvantaged communities (CalEnviroScreen)  Focus on shovel-ready 19

 2 Grant Programs ($20 million)  Organic materials ($15 million)  Received over 50 applications requesting over $118 million  Fiber, Plastic, and Glass ($5 million)  Received 19 applications requesting over $35 million  Decisions in November 2014? 20

 1 Loan Program ($5 million, revolving)  Organics & Fiber, Plastic, and Glass  Statewide  Applications due December 1, 2014 For more information: CalRecycle.ca.gov/Climate/GrantsLoans CalRecycle.ca.gov/Climate/GrantsLoans 21

John Davis (909) Administrator, Mojave Desert and Mountain Recycling Authority