1. Organics Policy Roadmap  Sub-directive 6.1: 50% reduction of organics in waste stream by 2020  Need additional capacity to process 15 million tons per year  Additional capacity for ~3 million tons per year may be needed depending on ADC policy

2. Waste Stream Characterization  40 Million tons disposed  70% Carbon-based organics  30% is compostable organics  21% is paper  15% is food

3. Common Issues 6 key issue categories ADC policyADC policy Economic incentivesEconomic incentives Siting and capacitySiting and capacity Regulations and permittingRegulations and permitting ResearchResearch EducationEducation

4. ADC Policy Diversion credit is a barrierDiversion credit is a barrier No incentives that place a premium on landfill diversion optionsNo incentives that place a premium on landfill diversion options Organic-based ADC results in less material available for composting, biomass-to-energy, etcOrganic-based ADC results in less material available for composting, biomass-to-energy, etc Landfill tip fees less expensive than alternative management methodsLandfill tip fees less expensive than alternative management methods ADC is beneficial in areas where soil is lacking and expensive to transportADC is beneficial in areas where soil is lacking and expensive to transport

5. Economic Incentives/Disincentives  Organics-base ADC is less expensive alternative to composting  Need full cost accounting to value benefits of compost  Need funding of new technologies  Lack of funding incentives for alternatives drives market towards landfilling  Lack of financing has hindered expanding capacity

6. Siting and Capacity Development  Need funding mechanism for additional infrastructure  No requirement in Siting Elements for processing capacity information  Resistance by residents  No direct Board involvement at local level  Legislative action may be necessary

7. Regulatory and Permitting Constraints  Interagency Coordination  Lack of coordination by multiple agencies to streamline permit process  Inconsistencies and/or contradictory goals across regulatory agencies  CIWMB Composting Regulations  Currently need full solid waste facility permit for composting operations that accept food waste

8. Research  Need research at all levels  Feedstock specific  Coordination of research between agencies  Lack of emissions data or lifecycle benefits of organic materials management methods  Need to develop product standards and address feedstock contamination

9. Education and Procurement  Need consumers, regulators, producers to be educated on benefits/value of composting  Poor public perception and lack of trust of compost facilities  May stem from not understanding value of compost  Need to understand best management practices that compost facilities use to minimize impacts

10. Policy Roadmap and Schedule  Staff has developed Roadmap and Schedule for discussion  Addresses six common issues identified by stakeholders  Includes three allocation proposals that support Organics Roadmap

11. ADC Policy  March 2008 Policy Item  Separate and more detailed analysis  Regional breakdowns  Impact on local jurisdictions  Summary of European Union bans and phase outs  Analyze options suggested by stakeholders  ADC phase outs  Differential surcharge for green waste ADC  Differential diversion credit  Pros and Cons of different policy options

12. Economic Incentives/Disincentives  May 2008 - Initial analysis  Analyze options suggested by stakeholders  Carbon credits and tax credits  Tradable diversion credits  Landfill surcharge used for infrastructure development  Create co-location incentives  Require pre-processing prior to disposal  May require legislative action

13. Siting and Capacity Development  April 2008 Workshop  Analysis of stakeholder recommendations  Landfill surcharge to fund new facilities  Change requirements of Siting Element  Require statewide processing capacity goal  More direct Board involvement during local planning process  Will seek additional input from stakeholders

14. Regulatory and Permitting Constraints  Interagency Coordination  Continue collaboration with AQMDs and Water Boards  CIWMB Regulation Revisions  SD 8.4 - conduct review of existing regulations  January 2008 – Rulemaking Calendar presented  May include food waste composting issues  Other stakeholder recommendations may require legislative action

15. Research  January 2008 Agenda Item  Scope of Work approval for biofuels RFP  February 2008 Agenda Item  Policy item on Research Model  Several ongoing and planned activities  Organics lifecycle assessment  Compost emissions testing  Three contract allocation proposals  Two other concepts considered by staff but are lower priority for current fiscal year

16. Education and Procurement  February 2008 - Caltrans-dedicated workshop at US Composting Council conference in Oakland  Proposing additional Caltrans workshops and field demonstrations  Targeting all Caltrans districts and local government  Will include field-demonstration component  Potential to increase procurement  Current Ag. Specifications contract may yield increased compost/mulch procurement  Need quantifiable benefits of compost/mulch before additional educational efforts

17. 2007-D-6: Caltrans Demonstration and Workshops  $200,000 Interagency Agreement with UC Riverside  Incorporates field demonstrations in addition to classroom workshops  Local government workshops throughout state  Training “scholarships” for key Caltrans personnel  Addresses Education and Procurement Issue

18. 2007-D-7: Compost BMPs and Benefits  $150,000 contract (IAA or RFP)  Identify gaps in research  Field demonstrations to quantify benefits  Erosion control  Water conservation  Landscape re-vegetation in fire-ravaged areas  Addresses Economic Incentives/Disincentives Issue

19. 2007-D-8: Compost Cover at Landfills  $100,000 Contract (IAA or RFP)  Measure effectiveness of compost to control methane emissions  Would address research gaps identified by SCS Engineers BMP survey  Contract would allow for field demonstrations  Addresses Research Issue  Waste Compliance and Mitigation staff lead

20. Board Options  Option 1:  Implement proposed Roadmap and Schedule;  Approve Organics Concepts  Option 2:  Implement Proposed Roadmap and Schedule with revisions  Approve Organics Concepts Option 3:  Make changes to Roadmap, Schedule and Organics Concepts  Return at later date for further consideration

21. Staff Recommendation  Option 1 and adopt Resolution Numbers:  2007-253  2007-254  2007-255  Requesting delegation to Executive Director for Scope of Work approval