Discussion & Status Report on Recycling & Waste Management Measures in Climate Change Scoping Plan Prepared Pursuant to AB 32 California Integrated Waste Management Board Strategic Policy Development Committee Meeting – May 12,

AB 32, Scoping Plan, & ARB Schedule  2020 GHG emissions target = 427 Million Metric Tons Carbon Dioxide Equivalents (MMTCO2e)  ARB adopted Scoping Plan on December 12, 2008  Specific measures to achieve 174 MMTCO2e reductions  Appendices & supplemental documents  Adopt mandatory reporting rules by January 1, 2009  Adopt regulations to implement plan by January 1, 2011  2050 GHG emissions target = 80% reduction below 1990 levels 2

Scoping Plan Recommendations Key elements: Energy efficiency programs Renewable energy California cap and trade program linked to Western Climate Initiative (WCI) Targets for transportation-related emissions Existing laws and policies (Pavley, Low-Carbon Fuel Standard, etc.) Targeted fees 3

Recycling & Waste Management Strategies in Scoping Plan Landfill Methane Control (Discrete Early Action) – 1 MMTCO2e Increasing Efficiency of Landfill Methane Capture – TBD* Commercial Recycling – up to 5 MMTCO2e* Increase Production & Markets for Compost – 2 MMTCO2e* Anaerobic Digestion – 2 MMTCO2e* Extended Producer Responsibility & Environmentally Preferable Purchasing – TBD* *Reductions from these measures are not currently counted towards the AB reduction goal of 174 MMTCO2e. 4

Other Recycling & Waste Management Strategies – Scoping Plan Appendix Liquefied Natural Gas (LNG) from Landfill Gas (further research) Watershed-Friendly Landscape Guidelines (supporting regional land use strategies) 5

Landfill Methane Capture Lead Agency – ARB ARB Board to adopt regulation 34-page draft regulatory language posted on web site In effect – Fall 2009; Early Action Item - in place by 1/1/2010 Expect annual reduction of ~1 MMTCO2e Install new methane control systems at landfills currently without systems Establish statewide performance standards to maximize methane capture efficiencies 6

Mandatory Commercial Recycling Lead Agency – CIWMB Implementation Schedule – Informal workshops 2009, rulemaking by 12/31/2010 Expect annual reduction of ~5 MMTCO2e (lower bound) Will achieve increased recovery of recyclables with high potential for GHG reductions Need to resolve authority issue 7

Increase Organics Production & Markets Lead Agency – CIWMB Implementation Schedule – Ongoing Expect annual reduction of ~2 MMTCO2e (lower bound) Lifecycle Analysis (LCA) of organics management options Organics Roadmap – December 2008 Board Meeting Need to develop financial incentives ARB commitment to work with CIWMB, CDFA, Caltrans on direct financial incentives for use of compost Increase IWMA funds for organic grants Need to resolve cross-media issues on air & water quality 8

Anaerobic Digestion Lead Agency – CIWMB Implementation Schedule – 90 facilities by 2020 Expect annual reduction of ~2 MMTCO2e LCA of organics management options Additional benefit – Produces renewable energy from biomass & contributes to 33% RPS goal (1.2 million mWh) Additional benefit – Produces biofuels and helps meet Low-Carbon Fuel Standard Diverts high methane-producing waste types such as food waste, green waste, & other organics 9

Extended Producer Responsibility & Environmentally Preferable Purchasing EPR Lead Agency – CIWMB Implementation Schedule – Need statutory authority CIWMB adopted EPR Framework Sept 2007 (revised Jan 2008) AB 283 would establish statutory authority to implement EPR Framework Expect annual reduction of – TBD, based on product selection EPP Lead Agency - DGS Collaborate with DGS on Environmentally Preferable Product choices Leverage the State’s buying power 10

OSWER analyzed technical potential scenarios to estimate potential GHG mitigation co-benefits from land and materials management. Examples include : Materials Efficiency Reduce packaging use by 50% MMTCO2E per year Reduce use of non-packaging paper products by 50%20-70 MMTCO2E per year Extend the life of personal computers by 50%25 MMTCO2E per year Reuse/Recycling Recycle all construction and demolition debris150 MMTCO2E per year Increase national MSW recycling/composting rate from 32.5% to 50% MMTCO2E per year Combust 25% of MSW for energy recovery25-45 MMTCO2E OSWER Draft Analysis: Technical Potential Scenarios 11

Source: Global GHG Abatement Cost Curve v2.0 Negative GHG abatement cost for waste recycling-12€/ton CO2e Negative GHG abatement cost for electricity from landfill gas-12€/ton CO2e GHG abatement cost for solar photo-voltaic18 €/ton CO2e GHG abatement cost for gas plant CCS retrofit58 €/ton CO2e 12

Additional Strategies in Scoping Plan that Involve CIWMB Glass manufacturing High Global Warming Potential foams & insulation Green Building Water efficiency programs Tire inflation & fuel-efficient tire standards Local government programs – transportation, energy, waste/recycling, water use Climate change curriculum for K-12 as part of Education & Environment Initiative 13

Major Issues Under Evaluation by ARB Cap & Trade Allocation of Allowances, Role of Offsets Administrative Fee, Use of Revenue Economics & Co-Benefits 14

Key Issues For CIWMB Authority to implement measures Resources to implement measures Administrative fee to cover personnel and research Accounting for indirect emissions in GHG inventories Integration of R&WM measures with other industry sectors GHG Quantification Tools Especially organics, recycling for use by local govt & industry Protocol Development 15

Next Steps Work with ARB on authority, implementation, & resources Complete Lifecycle Assessment and Economic Analysis of Waste Management Options to Reduce GHG Emissions Complete Economics Study for Commercial Recycling Complete CA Climate Action Network project with Institute for Local Governments Complete Programmatic EIR for Anaerobic Digestion Complete Landfill Gas to Liquified Natural Gas Demonstration Project Complete Landfill Gas Efficiency Study with CEC Implement all proposed measures (with additional resources approved in FY 09/10 budget) 16

Next Steps – cont’d Participate in new Climate Action Team Interagency Working Groups Participate in Protocol Development Work with CA Climate Action Registry on protocols for Co-Digestion & Community Operations Pursue protocol development for composting & recycling Serve on Technical Advisory Group for Chicago Climate Exchange Work with USEPA on Climate Change activities Develop new Strategic Directive on Climate Change activities 17

Ideas for New Strategic Directive Core Value – efforts to maximize diversion also maximize greenhouse gas emission reductions Key Sub-directives Continue coordination with Climate Action Team, ARB, inter-agency working groups Implement all Recycling and Waste Management measures to achieve > 10 MMTCO2e Foster development of alternative energy and biofuels from post- recycled waste materials Encourage legislation clarifying that regulatory proposals for air and water quality consider impacts on AB 939 and greenhouse gas reductions Include climate change impacts as criterion in reviewing CIWMB regulations 18

Climate Change Key Staff WCMP – Scott Walker, Stephanie Young STAR – Brenda Smyth, Clark Williams, Teri Wion LAMD – Cara Morgan, Kaoru Cruz, Jennifer Caldwell 19

Questions? 20