1. Organics Legislative and Regulatory Update
Howard Levenson, Ph.D.
Deputy Director, CalRecycle
August 8, 2016

2. Today’s Topics Setting the stage – tons of organics need homes
Organics policy drivers
What will it take to get to 75%?
Organics infrastructure
Infrastructure issues
End-use incentives
CalRecycle?
CDFA Healthy Soils
Cross-Agency activities

3. What are Organics? Green Materials Wood waste Food Materials Manure
DPR Brown Bag
11/18/2014
What are Organics?
Green Materials
Wood waste
Food Materials
Manure

4. State Policy Drivers Governor Brown’s 5 Pillars AB 32
Short-Lived Climate Pollutant Plan
Healthy Soils Initiative
CalRecycle – direct drivers

5. Governor Brown’s 5 Pillars
Reduce petroleum use in cars and trucks by 50%
Increase electricity from renewable sources to 50%
Double efficiency savings at existing buildings
Reduce release of methane, black carbon, other short lived climate pollutants
Manage farm and rangelands, forests, wetlands to store carbon

6. AB 32 Scoping Plan New update under development
Reduce GHGs to < 1990 levels
ARB Scoping Plan Update 2014
Waste Management Sector
Potential for MMT GHG reductions
Activities support AB 341
New update under development

7. AB 32 Scoping Plan Funding/incentives for infrastructure
e.g., Greenhouse Gas Reduction Program $$
Regulatory/statutory provisions
e.g., direct regulations on organics in landfills?
Short-Lived Climate Pollutant policy
Emission reduction factors
Permitting
Procurement

8. Short-Lived Climate Pollutants
Draft released 9/30/15
Reduce methane, black carbon, fluorinated gases
Key points for CalRecycle:
Divert 90% of organics by 2025
Align financial incentives with organics diversion
Collaborate on permitting and developing markets
Support research on landfill emissions, water savings from compost use

9. Healthy Soils Initiative
Increase carbon in California’s agricultural soils
Incentivize use of beneficial products from expanded organics infrastructure to build organic matter content of agricultural soils
CDFA lead, CalRecycle and ARB support
Compost – NRCS COMET Planner conservation practice standard

10. CalRecycle – Direct Policy Drivers
AB 939
50% diversion requirement on jurisdictions
AB 341
75% statewide by 2020
Not transformation or disposal-related activities
Doesn’t change AB 939 mandate on jurisdictions
AB 1826
Mandatory commercial organics recycling
AB 1594
ADC ≠ recycling aqfter 1/1/20
AB 876

11. Disposal Stream

12. 75% -- Where Are We Now?

13. Projected Tons To Reach 75%

14. What Will 75% Take? Moving > 20 million tons/year out of landfills
No way to achieve 75% goal without organics
~40% of disposal
> 10 MT/year suitable for compost, mulch, AD, biomass
Food waste biggest category ~6 million tons/year
Has to be handled locally or regionally
 Dozens/100s of new or expanded facilities

15. Infrastructure Types Aerated Static Pile composting Anaerobic
DPR Brown Bag
11/18/2014
Infrastructure Types
Aerated Static Pile composting
Anaerobic
Digestion

16. Current facilities
Origins of feedstock

17. Potential Facility Shortfall
Composting Estimated Excess Capacity (in tons per year)
Anaerobic Digestion Permitted Capacity (Tons per year, excess unknown)
POTW Average Flow (Millions of gallons per year)

18. More Local Organics Processing Facilities Needed
Los Angeles area detailed example

19. More Local Organics Processing Facilities Needed
Sacramento area detailed example

20. Organics Infrastructure: Facility Needs
# of facilities to handle additional 10 million tons
At 500 TPD  180,000 TPY  ~50 expansions or new
At 300 TPD  100,000 TPY  ~ 100 expansions or new
At 1000 TPD  365,000 TPY  ~ 30 expansions or new
expansions or new facilities needed

21. Infrastructure Cost Needs
DPR Brown Bag
11/18/2014
Infrastructure Cost Needs
Composting  $8-15 million for 100,000 TPY facility
Anaerobic digestion  $30-50 million for 100,000 TPY facility
Total infrastructure investment of $2-3 billion to handle 10 million TPY organics

22. Infrastructure Issues
DPR Brown Bag
11/18/2014
Infrastructure Issues
Landfill costs
Siting
Permitting & environmental regulations
CEQA
Markets
Financing

23. Competition with Low Landfill Tip Fees
DPR Brown Bag
11/18/2014
Competition with Low Landfill Tip Fees
Average cost of landfilling ~$45/ton
Contracted rates are lower
Some California landfills as low as $25/ton

24. Siting
Local land use
Planning
Zoning
CEQA
NIMBY

25. Permitting CalRecycle solid waste facility permit Air districts
Ozone, particulate matter standards
New source review – BACT, offsets
State Water Resources Control Board/Regional Water Quality Control Boards
Statewide General Waste Discharge Requirements for Composting Operations - ponds, pads, berms
CalRecycle solid waste facility permit

26. Environmental Regulations
DPR Brown Bag
11/18/2014
Environmental Regulations
CalRecycle regs on composting & in-vessel digestion
Air districts – prohibitory rules
VOC emissions from composting operations
Nuisance odors
Enforcement issues – who will enforce
Regional water boards – general orders
CDFA - land application, rendering

27. Markets: Procurement and Demand
DPR Brown Bag
11/18/2014
Markets: Procurement and Demand
Mostly local or regional – need local demand
Sustainable landscaping
DWR – Model Water Efficient Landscape Ordinance
CUWCC - Rebate-Eligible Landscape Conversion Stds.
Caltrans –erosion control & landscaping
CDFA - agricultural & rangelands
Need to quantify and monetize co-benefits
Need to ensure product quality

28. Markets: Clean Products
Calrecycle finished product testing standards
Metals, pathogens
New CalRecycle limit for physical contaminants
Glass & plastic < 0.5% by 2017
Sorting/screening improvements for food materials
Labeling info: US Composting Council, CDFA
re: nutrients
Working with Water Board & CDFA on direct land application of uncomposted green materials
Potential spread of pests not fully addressed

29. Markets: Pipeline & Grid Connections
DPR Brown Bag
11/18/2014
Markets: Pipeline & Grid Connections
Cost of grid interconnection & pipeline injection
Quality of gas
Testing & reporting

30. State Financial Incentives
CEC: Alternative Transportation Fuel Grants
ARB: Low Carbon Fuel Standard
Treasurer: CPCFA Tax-Exempt Bonds, CalCAP
CEC/CPUC: Renewable Portfolio Standard
BOE: Manufacturers Tax Rebate
CalRecycle: RMDZ Loans
CalRecycle: Greenhouse Gas Grants/Loans

31. CalRecycle Greenhouse Gas Grants & Loans
Competitive grants and loans to reduce GHGs and divert materials from landfills by expanding existing capacity or establishing new facilities in California
Benefit disadvantaged communities
Co-benefits:
Enhanced air/water protection
Job creation
In-state biofuel/bioenergy production

32. CalRecycle Greenhouse Gas Programs (FY 14/15)
2 Grant Programs ($20 million)
Organic materials ($15 million)
Fiber, Plastic, and Glass ($5 million)
1 Loan Program ($5 million, revolving)
Organics & Fiber, Plastic, and Glass
(also separate RMDZ loan funds)

34. Cycle 2 (FY 16/17) Grants - $100 Million proposed in budget
~$60M organics infrastructure, $10M food waste prevention
Subject to approval of Legislature and Governor
Tentative Dates: ??
Loans - $5 million more available??
Plus RMDZ Loans - $5 million (+ FY 14/15 $7 million)

35. Organics Incentive Payments?
Existing financing = grants/loans for upfront capital investment costs
New concept: Complement/replace with payments at back end for actual production
Help overcome marginal costs of processing and marketing products
Mechanism: use tip fee/generator revenue for payments
~$50 million/year, for 5 years?
Would complement CDFA end-use incentive
Requires legislation

36. CDFA Healthy Soils Incentives?
Would complement grants/loans for upfront capital investment costs
Proposed in Governor’s Budget
Would complement CalRecycle end-use incentive if that is enacted
If implemented at $5 million/year, would incentivize ~10% of annual compost production

37. Key Ongoing Activities
GGRF funding??
Healthy Soils Initiative
AB 1045 working group
ARB/CAPCOA working group
Land application
Compost co-benefits quantification
Water-efficient landscaping
AB 1826 Compliance
SLCP and rulemaking

38. ARB SLCP Rulemaking
If ARB adopts SLCP plan with 90% organics goal, then:
Scoping meetings in late 2016
Coordination with air districts, CalRecycle, stakeholders, many others
Rulemaking activities and workshops in 2017
Regulation would be due in 2018

39. DPR Brown Bag
11/18/2014
Questions? Howard Levenson, Deputy Director
CUWCC May 2014