Bill Text: CA AB1023 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Air resources: greenhouse gas emissions.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1023 Detail]

Download: California-2013-AB1023-Amended.html

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BILL NUMBER: AB 1023	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Member Eggman

                        FEBRUARY 22, 2013

   An act to  amend Section 14549.2 of the Public Resources
Code, relating to recycling.   add Chapter 4.2
(commencing with Section 39724) to Part 2 of Division 26 of the
Health and Safety Code, relating to air resources. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1023, as amended, Eggman.  Recycling: beverage
containers: payments.  Air resources: greenhouse gas
emis   sions.  
   Existing law, the California Global Warming Solutions Act of 2006,
requires the State Air Resources Board to adopt a statewide
greenhouse gas emissions limit. Existing law requires the California
Environmental Protection Agency to identify disadvantaged communities
and requires the Department of Finance to develop a specified 3-year
investment plan for the expenditure of funds in the Greenhouse Gas
Reduction Fund in the State Treasury to achieve reductions of
greenhouse gas emissions, including increased in-state waste
diversion through waste reduction, diversion, and reuse.  
   This bill would enact the Greenhouse Gas Reduction through
Recycling, Composting, and Recycled Content Manufacturing Investment
Program and would require the Department of Resources Recycling and
Recovery to implement the program by expending funds appropriated by
the Legislature for purposes of the program.  
   The bill would require the department, in consultation with the
board, to annually identify industry sectors that can reduce their
greenhouse gas emissions through the increased use of recycled
content or by recovering putrescible materials that would have
emitted greenhouse gases if disposed. The bill would require the
department to develop a market development program that would provide
incentives for those eligible industry sectors to make investments
for waste reduction, recycling, composting, and recycled
manufacturing projects that would reduce greenhouse gas emissions.
The bill would require the department to implement the market
development program by disbursing funds to private or public entities
in the form of incentive payments or grants for capital equipment.
 
   The bill would require the department to give priority, when
disbursing funds, to projects benefiting or located in disadvantaged
communities, as specified.  
   Existing law, the California Beverage Container Recycling and
Litter Reduction Act, requires a distributor to pay a redemption
payment for every beverage container sold or offered for sale in the
state to the Department of Resources Recycling and Recovery for
deposit in the California Beverage Container Recycling Fund. The
department is authorized to annually expend up to $10,000,000, or
more under specified circumstances, from the fund to make market
development payments for empty plastic beverage containers, until
January 1, 2017. Existing law specifies procedures and conditions for
making those market development payments.  
   This bill would make technical, nonsubstantive changes to that
payment provision. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) Recycling is one of the most cost-effective ways to reduce
greenhouse gases, and often ranks as "cost-negative" in analyses
evaluating cost effectiveness of various greenhouse gas reduction
strategies.  
   (b) Investing in the burgeoning anaerobic digestion industry
reduces emissions from landfills, creates a low-carbon fuel that
reduces emissions in the transportation sector, and generates
renewable energy.  
   (c) In addition to reducing landfill emission, the application of
compost saves .42 net tons of CO2 for each ton composted through soil
carbon storage, and decreases water use, fertilizer use, and soil
erosion, according to data prepared by the State Air Resources Board.
 
   (d) The State Air Resources Board has identified California's
energy-intensive glass container manufacturing sector as a leading
generator of greenhouse gas emissions and has included this sector as
a "covered entity" under the "Cap and Trade Program" adopted
pursuant to the market-based compliance mechanism authorized by
Division 25 (commencing with Section 38500) of the Health and Safety
Code.  
   (e) According to data from the United States Environmental
Protection Agency, for every 1 percent increase in recycled content
in the manufacture of new glass containers, there is an approximate 1
percent decrease in total direct greenhouse gas emissions from the
manufacturer and there is also a comparable upstream benefit that
results from not having to engage in mining or processing virgin
inputs.  
   (f) According to a recent study from the Tellus Institute, the
collection and processing of recyclables generates nearly four times
as many jobs as compared to disposal, and domestic recycled content
processing and manufacturing of these recycled materials adds an
additional 2.5 to 18 jobs for every 1,000 tons recycled. 
   SEC. 2.    Chapter 4.2 (commencing with Section 39
  72   4) is   added to Part 2 of Division
26 of the   Health and Safety Code   , to read:
 
      CHAPTER 4.2.  GREENHOUSE GAS REDUCTION THROUGH RECYCLING,
COMPOSTING, AND RECYCLED CONTENT MANUFACTURING INVESTMENT PROGRAM


   39724.  (a) This chapter shall be known, and may be cited, as the
"Greenhouse Gas Reduction through Recycling, Composting, and Recycled
Content Manufacturing Investment Program."
   (b) For purposes of this chapter "department" means the Department
of Resources Recycling and Recovery.
   39725.  (a) The department shall implement this chapter by
expending funds appropriated by the Legislature for purposes of this
chapter.
   (b) The department, in coordination with the state board, as
appropriate, shall establish the Greenhouse Gas Reduction through
Recycling, Composting, and Recycled Content Manufacturing Investment
Program pursuant to this chapter to provide incentives or grants for
waste reduction, recycling, composting, and recycled content
manufacturing projects that reduce greenhouse gas emissions in this
state.
   39726.  (a) The department, in consultation with the state board,
shall annually identify industry sectors that can reduce their
greenhouse gas emissions through the increased use of recycled
content or by recovering putrescible materials that would have
emitted greenhouse gases if disposed.
   (b) The eligible industry sectors that the department may identify
pursuant to subdivision (a) may include, but are not limited to, all
of the following:
   (1) Composting and anaerobic digestion.
   (2) Recycled container glass manufacturing.
   (3) Food processing.
   (4) Recycled paper and paperboard manufacturing.
   (5) Recycled plastic manufacturing.
   (c) Upon identifying the eligible industry sectors pursuant to
subdivision (a), the department shall develop a market development
program that would provide incentives for those eligible industry
sectors to make investments for waste reduction, recycling,
composting, and recycled content manufacturing projects that would
reduce greenhouse gas emissions.
   (d) The department shall implement the market development program
by disbursing funds to private or public entities in the form of
incentive payments or grants for capital equipment.
   (e) The funds disbursed as investments by the department pursuant
to subdivision (d) shall not exceed thirty million dollars
($30,000,000) per year.
   (f) The department shall give priority, when disbursing funds for
investments pursuant to this chapter, to projects benefiting or
located within the same disadvantaged communities that are identified
by the California Environmental Protection Agency pursuant to
Section 39711, for purposes of Chapter 4.1 (commencing with Section
39710). The department shall disburse not less than 25 percent of the
funds disbursed pursuant to this chapter for projects benefiting
these communities and not less than 10 percent of the funds disbursed
pursuant to this chapter shall be allocated for projects located
within these communities.  
  SECTION 1.    Section 14549.2 of the Public
Resources Code is amended to read:
   14549.2.  (a) For purposes of this section, the following
definitions shall apply:
   (1) "Certified entity" means a recycling center, processor, or
dropoff or collection program certified by the department pursuant to
this division.
   (2) "Product manufacturer" means a person who manufactures a
plastic product in this state.
   (b) In order to develop California markets for empty plastic
beverage containers collected for recycling in the state, the
department may, consistent with Section 14581 and subject to the
availability of funds, pay a market development payment to a
certified entity or product manufacturer for empty plastic beverage
containers collected and managed pursuant to this section.
   (c) The department shall make a market development payment to a
certified entity or product manufacturer in accordance with this
section only if the plastic beverage container is collected and
either recycled or used in manufacturing, in the state, as follows:
   (1) The department shall make a market development payment to a
certified entity for empty plastic beverage containers that are
collected for recycling in the state, that are subsequently washed
and processed by a certified entity into a flake, pellet, or other
form in the state, and made usable for the manufacture of a plastic
product by a product manufacturer.
   (2) The department shall make a market development payment to a
product manufacturer for empty plastic beverage containers that are
collected for recycling in the state, that are subsequently washed
and processed into a flake, pellet or other form in the state, and
used by that product manufacturer to manufacture a product in this
state.
   (3) The department shall determine the amount of the market
development payment, which may be set at a different level for a
certified entity and a product manufacturer, but shall not exceed one
hundred fifty dollars ($150) per ton. In setting the amount of the
market development payment for both certified entities and product
manufacturers, the department shall consider all of the following:
   (A) The minimum funding level needed to encourage the in-state
washing and processing of empty plastic beverage containers collected
for recycling in this state.
   (B) The minimum funding level needed to encourage the in-state
manufacturing that utilizes empty plastic beverage containers
collected for recycling in this state.
   (C) The total amount of funds projected to be available for
plastic market development payments and the desire to maintain the
minimum funding level needed throughout the year.
   (4) The department may make a market development payment to both a
certified entity and a product manufacturer for the same empty
plastic beverage container.
   (d) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date.