MEETING OF THE BOARD OF DIRECTORS - California · 2020-05-05 · MEETING OF THE BOARD OF DIRECTORS AGENDA May 21, 2020 5:00 PM Materials Recovery Facility Administration Building

MEETING OF THE BOARD OF DIRECTORS AGENDA

May 21, 2020 5:00 PM Materials Recovery Facility Administration Building

3013 Fiddyment Road, Roseville, CA 95747

To protect public health and consistent with Executive Orders from the Governor of the State of California and the Directive of the Placer County Health Officer, the May 21, 2020 meeting of the WPWMA Board of

Directors will be closed to public attendance.

Individuals may participate in the meeting by the following means:

during the meeting via a Zoom webinar at https://zoom.us/j/95328524277 or by calling (888) 788-0099

-OR- prior to or during the meeting via email at [email protected]

Subject: May 21, 2020 WPWMA Meeting Comment

Public comments will be accepted until the adjournment of the meeting, distributed to the Board of Directors, and included in the meeting record.

Materials related to an item on this Agenda submitted to the Board of Directors after distribution of the agenda packet are available for public inspection by emailing the Clerk of the Board at [email protected]. The Western Placer Waste Management Authority is committed to ensuring that persons with disabilities are provided the resources to participate fully in its public meetings. If you require disability-related modifications or accommodations please contact the Clerk of the Board at (916) 543-3960 or at [email protected]. If requested, the agenda shall be provided in appropriate alternative formats to persons with disabilities. All requests must be in writing and must be received by the Clerk three business days prior to the scheduled meeting for which you are requesting accommodation. Requests received after such time will be accommodated if time permits.

1. Call Meeting to Order

2. Pledge of Allegiance (Director Allard)

3. Roll Call

4. Statement of Meeting Procedures (Clerk of the Board)

5. Agenda Approval

6. Public Comment

This is a time when persons may address the Board regarding items not on this Agenda. It is requested that comments be brief, since the Board is not permitted to take any action on items addressed under Public Comment.

7. Announcements & Information

a. Reports from Directors ----

b. Report from the Executive Director ----

c. Financial Reports Pg. 3

WPWMA BOARD AGENDA MAY 21, 2020 PAGE 2

d. Monthly Tonnage Reports ----

e. Quarterly MRF Operator’s Report (Nortech Waste) Pg. 5

f. Quarterly Landfill Operator’s Report (Nortech Landfill) Pg. 13

g. Waste Action Plan Update Pg. 15

8. Consent Agenda

a. Minutes of the Board Meeting held April 16, 2020

Approve as submitted.

Pg. 19

b. Support of the SWANA Legislative Task Force (Chris Hanson)

Authorize payment of $2,000 to the Solid Waste Association of North America Legislative Task Force.

Pg. 21

c. MRF and WRSL COLA Adjustment (Eric Oddo)

Approve a one-time adjustment to the Fiscal Year 2020/21 Material Recovery Facility and Western Regional Sanitary Landfill annual Cost of Living Adjustment methodology to account for impacts likely related to the COVID-19 pandemic.

Pg. 39

9. Action Items

a. 2020 Legislative Update and Strategic Agenda (Chris Hanson)

Receive an update on the 2020 Legislative Session and approve the 2020 Legislative Strategic Agenda prepared by Shaw Yoder Antwih Schmelzer & Lange.

Pg. 41

b. Fiscal Year 2020/21 Preliminary Budgets (Eric Oddo)

Approve the Fiscal Year 2020/21 Preliminary Budgets for the Operating Fund, Closure/Postclosure Fund, Self Insurance Fund and Odor Management Fund as presented in Exhibits A, B and C.

Pg. 59

c. MRF and WRSL Operating Agreement Negotiations (Eric Oddo)

1. Authorize staff to: i) continue negotiations with Nortech Waste LLC related to a long-term extension to the Materials Recovery Facility and Western Regional Sanitary Landfill operating agreements and ii) begin preparing a Request for Proposals for future operation of the Materials Recovery Facility and Western Regional Sanitary Landfill; and

2. Authorize the Executive Director or designee to enter into one or more professional services agreements to assist in the development of the Request for Proposals, as necessary, up to a combined maximum limit of $100,000.

Pg. 75

10. Upcoming Agenda Items

Identification of any items the Board would like staff to address at a future meeting.

11. Adjournment

2

Budget Actuals

Variance Favorable /

(Unfavorable) Notes

Revenue

42010:Investment Income 150,062 433,572 283,510 underbudgeted

42030:Rents and Concessions 73,907 204,954 131,046 underbudgeted

46240:Sanitation Services ‐ Other 21,811 18,209 (3,602) overbudgeted

46250:Solid Waste Disposal 20,629,642 20,867,284 237,642 underbudgeted

46380:Interest Income ‐ Loan Repayments 16,476 19,949 3,473 underbudgeted

48030:Miscellaneous 157,292 51,363 (105,929) overbudgeted

Total Revenue 21,049,190 21,595,330 546,140

Expenses

Capital Assets:

54430:Buildings & Improvements 331,500 408,467 (76,967) timing

54470:Infrastructure 786,290 ‐ 786,290 timing

54480:Land Improvements 1,330,814 ‐ 1,330,814 timing

Operating Expenses: ‐

52030:Clothing and Personal 1,500 1,995 (495)

52040:Communication Services Expense 23,326 30,563 (7,237) underbudget

52050:Food 563 1,007 (445)

52060:Household Expense 750 844 (94)

52080:Insurance 102,404 132,000 (29,596) timing

52140:Parts 375 2,739 (2,364)

52160:Maintenance 58,580 52,330 6,249 overbudget / timing

52170:Fuels & Lubricants ‐ 43 (43)

52180:Materials ‐ Buildings & Improvements 188 8 179

52240:Professional / Membership Dues 628 3,504 (2,876)

52250:Services and Supplies 150 15 135

52260:Misc Expense 4,500 41,354 (36,854) underbudgeted/coding

52270:Department Cash Shortage 225 57 168

52320:Printing 12,750 9,349 3,401 overbudget / timing

52330:Other Supplies 3,750 14,826 (11,076) underbudgeted

52340:Postage 1,500 1,689 (189)

52360:Professional and Special Services ‐ General 2,932,829 1,637,487 1,295,343 overbudgeted

52370:Professional and Special Services ‐ Legal 56,250 33,584 22,667 overbudget / timing

52380:Professional and Special Services ‐ Technical, Engineering and Environmental ‐

SC3140 Building Maintenance, Installation & Repairs (GL52380) 20,067 18,750 1,317

SC3180 MRF Operations (GL52380) 13,540,230 8,299,407 5,240,823 overbudgeted

SC3190 Landfill Operations (GL52380) 1,976,534 1,367,861 608,673 overbudgeted

3SC280: Security, Fire, Safety and Emergency Services (GL52380) 189,531 ‐ 189,531 overbudgeted / timing

SC3320 Environmental and Ecological Services (GL52380) 2,375,748 2,357,496 18,252 overbudget / timing

‐ ‐

52390:Professional and Special Services ‐ County 18,750 22,352 (3,602) timing

52400:Professional and Special Services ‐ Information Technology 1,125 77,832 (76,707) underbudgeted

52440:Rents and Leases ‐ Equipment 2,599 ‐ 2,599

52450:Rents and Leases ‐ Buildings & Improvements 1,106 599 507

52460:Small Tools & Instruments 375 ‐ 375

52480:PC Acquisition 20,250 26,371 (6,122) underbudgeted

52510:Commissioner's Fees 4,500 4,100 400

52540:Signing & Safety Material 116 (116)

52570:Advertising 40,995 33,461 7,534 timing / overbudgeted

52580:Special Department Expense 7,500 7,467 33

52790:Transportation and Travel 26,250 3,395 22,855 timing / overbudgeted

52800:Utilities 532,457 586,450 (53,993) underbudgeted

52810:Operating Materials ‐ 45 (45)

53190:Taxes and Assessments 375,073 383,562 (8,490) timing

53390:Transfer Out A‐87 Costs ‐ ‐ ‐

55510:Operating Transfer Out ‐ 244,101 (244,101) coding

59000:Appropriation for Contingencies 7,500 ‐ 7,500 overbudgeted

Total Expenses 24,789,459 15,805,226 8,984,232

Net Income (3,740,269) 5,790,104 9,530,373

‐ Notes:

1. Budgeted revenues and expenses are prorated equally each month of the fiscal year, whereas actual revenues and expenses reflect those realized as of the date of the report.

This may lead to notable reported discrepancies between budgeted and actual amounts.

2. Differences in the coding between the budgeted and actual revenues and expenses may result in notable reported discrepancies within the report.

3. The amount originally budgeted in 46365:Sales of Electricity has been moved to 48030:Miscellaneous where the actual revenue is booked. The amount originally budgeted in

46190:Road and Street Services has been moved to 46240:Sanitation Services ‐ Other where the actual revenue is booked.

Western Placer Waste Management

Income Statement(unaudited/depreciation excluded)

Year‐to‐Date

Mar‐20

Western Regional Sanitary Landfill Fund

3

PAGE INTENTIONALLY LEFT BLANK

4

MATERIALS RECOVERY FACILITY QUARTERLY OPERATIONS REPORT

3rd QTR, 24th OPERATING YEAR ENDING March 31, 2020

NORTECH WASTE LLC 3033 FIDDYMENT ROAD ROSEVILLE, CA 95747

916-645-5230

5

OPERATIONS REPORT Materials Recovery Facility Operation

Quarter Ending March 31, 2020 (3rd Qtr. 24th Operating Year)

PROCESSED TONNAGE AND RECOVERY LEVEL:

Processed Tonnage:

Nortech processed 93,079.21 tons through the Materials Recovery Facility (MRF) during the quarter. Of this, 59,793.92 tons were municipal solid waste, 13,303.41 tons were source separated green waste1, 1,025.41 tons were source separated wood waste, 11.27 tons of Food Waste Recovery MSW, 430.43 tons of food waste MRF2, 714.57 tons of food waste compost, and 18,956.47 tons of construction and demolition waste.

Recovery Level:

Overall recovery for the quarter was 38.70%. Creditable recovery for the Materials Recovery Facility was 20.71% or 1.29% below the guaranteed minimum recovery level of 22%. Creditable recovery for Construction and Demolition waste was 49.18% or 0.82% below the guaranteed minimum recovery level of 50% for the quarter.

Total Overall YTD recovery is 40.18%. Creditable recovery in the MRF is 21.92% or 0.08% below the guaranteed minimum recovery level of 22%. Creditable recovery for Construction and Demolition is 50.22% or 0.22% above the guaranteed minimum recovery level of 50% for the year.

Mechanical & Operational Performance: The plant operated at 82.29%3 mechanical up time (419.68 hours out of 510) during the quarter. The plant total up time for the quarter was 67.07% (342.06 hours out of 510) electrical, mechanical and other problems are maintained in spreadsheets for easy assessment of reoccurring problems are available for Authority Staff review. STAFFING:

Staffing for the period averaged 201.4 full time equivalent employees. The permanent, full time staff averaged 111.0, and contract service employees averaged 90.4.

Description Head Count Total Full Time Equivalent (FTE) 201.4 FTE Nortech 111.0 FTE Contract 90.4

Department Percentage of Head Count

Tipping Floor 3.9% Sort Line 40.0% Glass Line 0.0% Finished Product 5.0% Buy Back Center 2.9% Composting 1.8% C&D 12.7% Haz Mat 1.5% Maintenance 9.9%

1 Any residue from Green waste goes out as MSW residue, yet it is not included in the MSW Inbound, negatively

impacting MSW recovery rates; residue off source separated Green waste was 125.57 tons for the quarter 2 Nortech receives NO processing fees, yet it is processed through the MRF. 3 The plant has five processing lines. Each line provides approximately 20% of total plant capacity. Therefore, a one-hour

outage on any one line is equivalent to 12 minutes of total plant capacity

6

Clean Up 6.9% House &Yard 3.8% Administration 6.0% Transportation 3.6% Public Receiving 1.7%

SPECIAL OCCURRENCES:

As of June 1st, 2016, special occurrences are now reported to the Authority on a daily basis by designated Nortech staff. A brief summary of the special occurrences that occurred during the quarter are summarized below; a detailed description of each occurrence can be found in WPWMA’s Special Occurrence Log.

o 01/09; Tip-floor fire o 01/19; City of Roseville truck damaged bay door. o 01/23; Fender-bender at gas station o 02/11; Blood packet on sort line o 02/25; Employee hit customer vehicle o 02/25; Bale Fire o 03/02; Fire in compost o 03/12; Propane Leak o 03/16; Damage to roll-off truck o 03/30; Broken Fire Hydrant

TRAINING:

Individual Safety Training:

o New Hire Safety Orientation- 14 new employees o Forklift training-4 employees o Fire Control Procedures-25 Employees o COVID-19 Training-230 Employees

Weekly Safety Training:

o 1/06; Repetitive Stress Injuries o 01/13; Fire Safety o 01/20; GHS and Safety Data Sheets o 01/27; PPE-Eye Protection o 02/03; PPE-Footwear Safety o 02/10; PPE: Head Protection o 02/17; PPE Hand Protection o 02/24; Stretching At Work o 03/02; Fall Protection Training o 03/02; Coronavirus Safety

Workers Compensation Reporting:

There was 1 recordable injury this quarter.

TOTAL DAYS LOST TIME THIS QUARTER: 0 DAYS

TOTAL DAYS RESTRICTED DUTY THIS QUARTER: 16 DAYS

Date Position Location Incident

7

02/19/2020 Sorter Sort Platform Hand Injury

HOUSEHOLD HAZARDOUS WASTE PROGRAM:

A comprehensive report is submitted monthly to Authority staff that identifies types and quantities of materials, origin of persons using the facility, materials recycled, etc.

In summary:

Quarterly Totals

Customer Count 5,487 Liquid Waste Processed (gallons) 34,395 Recycled Lead Acid Batteries (tons) 14.38 Recycled Household Batteries (tons) 20.87

REGULATORY COMPLIANCE:

Material Recovery Facility (MRF): An area of concern was issued for the February and March inspection for traffic control at public receiving. On both occasions white goods and metals were observed impacting parking and traffic areas. Paul Holloway did acknowledge Nortech took in abnormally high amounts of the goods referenced the day prior to his arrival but stated the waste should be removed first thing Monday morning. Compost: The compost operation was issued an area of concern in January, February, and March for odor control. Odors were observed coming from the south sediment pond and food waste aerated static piles during the inspections. The LEA noted that further steps should be taken to prevent further enforcement. Food Waste composting has presented significant operational challenges. Prior to the pilot Food Waste ASP program, we did not have major odor issues/concerns. We also did not have issues with the South Pond and Sediment Basin that we are currently experiencing. We utilized chemical treatments to the South Pond to remediate the odor issues, which worked temporarily and maintain compliance with Dissolved Oxygen levels. The cost of said treatments over the course of thirty days was $2,140.50. We have worked closely with WPWMA to develop additional strategies in order to address these concerns. WPWMA looked into their aeration system to assess its capacity in providing enough oxygenation to the pond to prevent odors. We were in talks with a company on more effective aeration systems as well as ongoing treatments; however, funding was not approved by WPWMA to pay for necessary infrastructure improvements and treatments.

SALES:

Prices are continuing to be a major issue and concern in assessing market conditions. Overall, prices continue to see significant fluctuations. Despite fluctuations, we saw an increase in revenue from the prior Quarter. This is attributed to the rising price in Steel as well as Cardboard that were major contributors to the revenue increase.

With China being committed to restricting incoming recyclables, it will take some time for new markets to develop. We experienced some delays in shipping due to COVID-19 initially,

8

however this did not prove to have a significant impact on our operations. We lost a major buyer Westrock that went out of business that were taking a significant portion of our cardboard. They were also taking our lower quality cardboard bales that were higher in moisture content; we have since found other buyers to meet this need. This will likely not be a major issue with the changing season, however could present some challenges in the winter months due to rain. We will continue to look for domestic and international buyers to move our products as we shift to deal with changing market conditions.

Food waste compost sales have continued to present significant challenges. We have tried cutting the price of food waste compost in half. We continue to struggle to find markets that are interested in purchasing this product. Food waste compost sales account for 8.5% of our total compost sales tonnage. Despite our best efforts, we have not been as successful as we hoped in selling this product.

9

COMMODITY TONNAGE AVG PRICE/TON TOTALADC 12,839.09 -$ -$ Aluminum Cans 145.90 825.52$ 120,443$ Aluminum Scrap 22.97 240.00$ 5,513$ Batteries 14.38 519.86$ 7,476$ Cardboard 3,601.07 57.60$ 207,416$ Carpet 41.28 -$ -$ Compost 3,450.42 23.97$ 82,697$ Compost Overs 2,546.96 2.60$ 6,623$ CRT's 76.49 234.75$ 17,956$ E-Waste 121.38 (312.17)$ (32,659)$ Film Plastic - -$ -$ Food Waste - -$ -$ Glass 820.10 (12.62)$ (10,351)$ HDPE-Colored 148.80 179.49$ 26,708$ HDPE-Natural 110.48 844.74$ 93,327$ Inerts 1,628.06 -$ -$ Lumber - -$ -$ Misc HHW Disposal 161.97 -$ -$ Misc Recyclables - -$ -$ Mixed Plastic - -$ -$ Mixed Rigid Large 453.80 49.46$ 22,445$ Mixed Rigid Small - -$ -$ Mixed Waste 159.08 19.06$ 3,032$ Newspaper - -$ -$ Office Pak - -$ -$ PET-Grade A 42.22 270.60$ 11,425$ PET-Grade B 343.13 119.06$ 40,855$ Rock-Crushed - -$ -$ Scrapping Metal 55.47 262.95$ 14,586$ Steel 3,050.85 60.11$ 183,396$ Used Oil - -$ -$ Wood Chips 1,374.09 21.46$ 29,490$ Wood Chips Bio-Fuel 3,276.32 2.50$ 8,192$ Wood ChipsBlack 0.58 113.79$ 66$ Wood ChipsBrown - -$ -$ Wood Chips Red 0.59 67.80$ 40$ Wood Fuel - -$ -$ TOTAL 34,485.48 838,675$

10

SUMMARY: Nortech continues to pilot the Aeriated Static Pile (ASP) and Open Windrow composting, though we faced several challenges during the quarter, we did identify some alternative processes on the air system that helped to bring temperatures down. We hired a Compost Operations Manager that began the role and has been successful in keeping the compost temperatures at a more manageable level. Nortech is working with the Authority staff to develop other pilot projects to understand how ASP can help comply with SB1383. Overall operations in the quarter were consistent with prior quarters, finished product moved consistent through the quarter. The facility equipment and its useful life continues to challenge operations, shortages of labor both skilled and un-skilled and being competitive in our local markets continues to be a challenge. We have brought on an Operations Manager in our Maintenance Department that has created strategies and approaches to address and combat operational downtime. Nortech has implemented CARE (Carpet America Recovery Effort) and is consistently sending out loads of carpet to be processed. We also are working on Bye Bye mattress program and hope to have the program implemented in the near future.

COVID-19 has created some challenges for us operationally as we adapt our strategies to continue to operate. We have experienced some staffing shortages due to this issue, however it has not had a major impact on our operations. We are continuing to stay up to date and current as it relates to COVID-19 business best-practices. We are working closely with our insurance carrier as it relates to risk mitigation as well as staying informed on OSHA recommendations and HR policies/procedures to ensure the health and safety of our employees as well as meet business objectives.

Respectfully Submitted, Byron Hildenbrand Operations Manager Nortech Waste, LLC

CC: P. Szura, Nortech Waste L. Williams, Nortech Waste E. Tapia, Nortech Waste D. Dwinger, Nortech Waste B. Hildenbrand, Nortech Waste

11


12

April 15, 2020 RE: NLI Quarterly Landfill Operations Report – 3rd Quarter of the 11th Operating Year in 2020

(January, February, and March) Dear Mr. Schmidt, Pursuant to Section 8.4 “Quarterly Reporting” of the Agreement between the Western Placer Waste Management Authority (Authority) and Nortech Landfill, Inc. (NLI) for operation of the Western Regional Sanitary Landfill (WRSL), NLI submits the following summary of operational activities conducted by NLI during the 3rd Quarter of the 11th operating year – January, February, and March 2020. Operations Operations included the burial of 85,714 tons of waste during the quarter. Filling operations consisted of placing waste in Module’s 5, 14 and 16. Other operations included processing 14,209.02 tons of waste imported by ICS from the liner separation project in module 13, and 14.05 tons of waste imported by Pro Builders from four boreholes drilled on modules 2 and 10. These totals are incorporated in the buried tonnage total for the quarter. Inspections Daily load checking and random inspections were performed during the quarter. Monthly site safety inspections were performed by NLI staff. Local Enforcement Agency (LEA) performed three random site inspections during the quarter; there were no Violations and three Areas of Concern as it relates to NLI portions of the landfill. Copies of all inspection reports are included in the NLI operating reports that are submitted to the Authority each month. Cover Soil Utilization NLI continues to use tarps, and reuse cover soil in order to minimize the burial of operational material. In addition, NLI uses Alternative Daily Cover (ADC) to maximize Materials Recovery Facility diversion rates and reduce the Authority’s tax liability. These combined activities resulted in an average waste to soil ratio without ADC of 3.04:1. NLI could use less ADC but would then need to bury the ADC as residue and increase the amount of soil used. These totals represent operational material including soil used for intermediate cover for the quarter. The total number of operational material including intermediate soil is 51,514 (CY).

13

Tonnages The following table includes a summary of buried waste and operational material consumed at the WRSL for the quarter.

Note: *Estimated Taxable Buried Waste (CY) Calculated by using monthly surveyed volumes collected by NLI

and subtracting the Total Operational Material Utilized **Ratio Calculated by Estimated Taxable Buried Waste divided by Total Operational Material

(Volume surveyed for the quarter: 134,300 CY) Compaction Results NLI uses global positioning system (GPS) survey equipment to track the amount of airspace consumed. For the quarter, the total airspace consumed as provided by GPS survey was 134,300 cubic yards (CY). Using the scale house records of waste tonnage received and the GPS total airspace consumed, the average density of the buried waste was calculated to be 1,276 lbs. /CY, which meets the contractual range of 1,100 to 1,200 lbs. /CY. Please let me know if you require any further assistance regarding this report. Sincerely, Brandon Stevens Contractor’s Representative Nortech Landfill, Inc.

Month Total Volume Change for the

month (CY)

Taxable Buried Waste (Tons)

Estimated Taxable Buried

Waste (CY)*

ADC (CY)

Soil (CY) H20 Sludge (CY)

Inert (CY) Total Operational

Material (CY)

Waste To Soil Ratio W/O ADC

Total Density (Lb/CY)

Q3 2020January 49,100 31,309 30,494 6,676 9,205 43 3,519 18,606 3.13 :1 1,275

February 44,500 31,453 29,226 5,693 7,585 41 2,930 15,274 3.66 :1 1,414March 40,700 22,952 27,325 5,715 7,513 65 2,529 13,375 4.36 :1 1,128TOTAL 134,300 85,714 87,045 18,084 24,303 149 8,978 51,514 3.04 :1 1,276

14

MEMORANDUM WESTERN PLACER WASTE MANAGEMENT AUTHORITY

TO: WPWMA BOARD OF DIRECTORS DATE: MAY 21, 2020

FROM: KEN GREHM / ERIC ODDO

SUBJECT: WASTE ACTION PLAN UPDATE

RECOMMENDED ACTION:

None. This report is for information purposes only.

BACKGROUND:

The following provides an update on the WPWMA’s Renewable Placer: Waste Action Plan project including development of the environmental document and continued stakeholder engagement.

Environmental Impact Report Progress Overview

Jacobs is continuing to make progress on the preparation of the Waste Action Plan draft environmental impact report (DEIR). The current focus of their efforts is centered on clearly defining existing conditions at the facility and the anticipated changes associated with the two project concepts as well as development of the air quality analysis methodology as noted below. To provide a clear and up-to-date understanding of the project schedule, a high-level project status matrix is attached which identifies anticipated completion dates for key milestones and the relative progress on the major elements of the DEIR. Staff will provide an updated matrix in subsequent Waste Action Plan updates to your Board.

Technical Air Group

After conducting an initial meeting with the Placer County Air Pollution Control District (APCD) in late 2019, staff and Jacobs have been working to develop a comprehensive methodology for conducting the necessary air quality analysis for the two project concepts. As part of this effort, a thorough analysis of current operations, equipment usage and customer traffic patterns (delineated by vehicle size and emissions potential) was prepared to establish reasonable and defensible baseline emissions information. Following this effort, each project concept was analyzed to identify the timing and extent of possible changes to air emissions to determine the estimated peak day construction and operational air emissions.

Jacobs is nearing completion of the preliminary draft of the air analysis methodology and staff anticipate providing the draft methodology to the APCD for their review and comment in June. After meeting with and receiving concurrence from APCD on the methodology, Jacobs will move forward with completing the air analysis.

Consultation with Native American Tribes

WPWMA initiated the consultation process with the United Auburn Indian Community (UAIC) consistent with the provisions of AB 52 in May 2019 and held a preliminary

15

WPWMA BOARD OF DIRECTORS WASTE ACTION PLAN UPDATE MAY 21, 2020 PAGE 2

meeting with UAIC representatives in mid-November 2019 to discuss UAIC’s participation in a site-wide archaeological reconnaissance survey.

Jacobs’ Senior Archaeologist and two representatives from the UAIC performed the site reconnaissance survey, which involved a walking survey of the WPWMA’s eastern and western properties as well as select portions of the existing facility site, on December 4th, 5th, 6th and 11th. Two cultural resources, consisting of chert flakes, were identified during the reconnaissance survey. The flakes are likely not eligible for inclusion and listing in either the California Register of Historical Resources or the National Register of Historic Places. Jacobs is nearing completion of the survey report which will be provided to UAIC for their information and ultimately become part of the DEIR.

A December 2019 search of Cultural Resource and Tribal Cultural Resource inventories maintained by the California Historical Resources Information System – North Central Information Center suggested that there are no significant Native American cultural resources on the site.

Stakeholder Engagement

Staff continue to identify targeted audiences and appropriate engagement and media opportunities to inform the public about the Waste Action Plan. Prior to CEQA initiation, staff presented the Waste Action Plan to Member Agency councils and the Board of Supervisors as well as local Chambers of Commerce and other interested groups. Staff intends to present an update to these groups later this year as the project continues to develop. To assist in these discussions and help interested parties better understand the WPWMA’s plans, staff is working with Jacobs to develop an on-line, interactive visualization tool that depicts what the facility may look like under each plan concept at key points in the future. The tool is built on a Google Earth-style platform that will allow the user to pan and zoom from defined viewpoints, and informational tags will provide details about the individual project components. Staff will be presenting a preliminary version of this tool to your Board for review and comment as part of this staff report.

Engagement with Sacramento State and the Carlsen Center

A key to the success of the Waste Action Plan will be collaboration with both private technology firms and colleges and universities to assist in vetting technologies and research and development of solid waste system improvements.

A partnership between the City of Phoenix and Arizona State University (ASU) has demonstrated the success of this collaborative model. Over the past several months, WPWMA and Jacobs staff have been communicating with the City of Phoenix and ASU to learn from their experiences. At the same time, WPWMA and Jacobs staff have been in contact with representatives of Sacramento State University (CSUS) and the Carlsen Center regarding the potential to replicate a similar partnership. Staff are in the process of scheduling further meetings with ASU, CSUS and the Carlsen Center and believe participation by one or more members of your Board will be beneficial.

16

WPWMA BOARD OF DIRECTORS WASTE ACTION PLAN UPDATE MAY 21, 2020 PAGE 3

Impact of Nortech’s Proposal

While the long-term proposal put forth by Nortech (which will be discussed as a separate item on this agenda) is in-line with the overall goals of the Waste Action Plan, some of the details differ from those currently being analyzed as part of the DEIR. Depending on the direction your Board ultimately takes regarding Nortech’s proposal, the agreement with Jacobs may need to be amended so that the DEIR properly addresses and discusses Nortech’s proposed facility modifications. Staff will return to your Board at a future meeting with an amendment to the Jacobs agreement should it be determined to be necessary. ATTACHMENT: WASTE ACTION PLAN STATUS MATRIX

17

Completion Date

515

25

35

45

55

65

75

85

95

(est./actual)

Notice of Preparation

April 2019

Draft EIR

Ch 1 ‐ In

troduction

Est. M

ay 2020

Provides a robust overview of curren

t site operations

CH 2 ‐ Executive Summary

Est. Dec 2020

Ch 3 ‐ Project Description

Est. Jun 2020

Incorporating complemen

tary/program

matic elemen

ts

Ch 4 ‐ Approach

Est. Dec 2020

Ch 5 ‐ Aesthetics

Est. Dec 2020

Fieldwork completed October 2019; d

raft visual sim

ulations being prepared

Ch 6 ‐ Air Quality & Odors

Est. Dec 2020

Initiated emissions calculations an

d prelim

inary modeling

Methodology

Est. Jun 2020

Targeting late‐M

ay m

ethodology m

eeting with PCAPCD

Emission In

ventory Developmen

tEst. Sep

2020

Hea

lth Risk Assessm

ent

Est. Nov 2020

Ch 7 ‐ Biological R

esources

Est. Dec 2020

Fieldwork completed during Phase 1

Ch 8 ‐ Cultural and Tribal Resources

Est. Dec 2020

AB52 consultation in

itiated; reconnaissan

ce surveys conducted

with UAIC

Ch 9 ‐ Geo

logy, Soils, &

Paleo

ntology

Est. Dec 2020

Ch 10 ‐ GHG Emissions & Clim

ate Chan

geEst. Dec 2020

Ch 11 ‐ Hazards, Hazardous Materials, &

Wild

fire

Est. Dec 2020

Ch 12 ‐ Hyd

rology & W

ater Quality

Est. Dec 2020

Ch 13 ‐ Lan

d Use & Planning

Est. Dec 2020

Ch 14 ‐ Noise

Est. Dec 2020

Ch 15 ‐ Population & Housing

Est. Dec 2020

Ch 16 ‐ Public Services

Est. Dec 2020

Ch 17 ‐ Transportation & Traffic

Est. Dec 2020

Ch 18 ‐ Utilities & Energy

Est. Dec 2020

Administrative Draft for Internal Review

Est. Dec 2020

Draft EIR for Public Review

Est. Feb

2021

Respond to Commen

ts on Draft EIR

Est. Apr‐Jun 2021

Administrative Final for Internal Review

Est. Aug 2021

Final EIR

Est. Sep

2021

Board Certification of EIR and Approval o

f Project

Est. Oct 2021

Description

Percent Complete

Notes

WPWMA W

aste Action Plan EIR Status Matrix

18

WESTERN PLACER WASTE MANAGEMENT AUTHORITY Minutes of April 16, 2020

The meeting of the Western Placer Waste Management Authority Board of Directors was called to order at 5:03 PM by Chairwoman Gore in the WPWMA Administration Building at the Materials Recovery Facility. Directors Present: Staff Present:

Bonnie Gore Bill Halldin Dan Karleskint Robert Weygandt John Allard

Ken Grehm Kevin Bell Eric Oddo Keith Schmidt Robert Sandman

Heather Wilden

1. Call Meeting to Order: Chairwoman Gore called the meeting to order at 5:03 PM.

2. Pledge of Allegiance: Director Weygandt led the Pledge of Allegiance.

3. Roll Call: All Directors were present.

4. Statement of Meeting Procedures: Heather Wilden read the Statement of Meeting Procedures into the record, including new instructions related to procedures for participation in the meeting via Skype during the COVID-19 social distancing order.

5. Agenda Approval: There were no changes to the agenda.

MOTION TO APPROVE THE AGENDA: Halldin/Allard

Vote: Unanimous

6. Public Comment: None.

7. Announcements & Information:

a. Reports from Directors: There were no reports from the Directors.

b. Reports from the Executive Director: Ken Grehm updated the Board on the status of the MRF contract negotiations and WPWMA Labor Study and indicated that both items are planned to be discussed further at the May Board meeting.

c. Financial Reports: Eric Oddo summarized the financials for February 2020. There were no questions from the Board.

d. Monthly Tonnage Reports: Keith Schmidt summarized the report. There were no questions from the Board.

e. Groundwater Remediation Update:

Keith Schmidt provided an overview of the report and answered questions from the Board.

8. Consent Agenda:

a. Minutes of the board meeting held February 13, 2020:

Staff recommended approving the minutes as submitted.

19

WESTERN PLACER WASTE MANAGEMENT AUTHORITY MEETING MINUTES OF APRIL 16, 2020 PAGE 2

b. Tire Tip Fee Correction:

Staff recommended authorizing the Chair to sign attached Resolution 20-2 correcting the tire tipping fees previously approved by your Board under Resolution 20-1 to be consistent with the rates presented in the February 2020 Notice of Public Hearing.

MOTION TO APPROVE THE CONSENT AGENDA: Allard/Weygandt

Vote: Unanimous

9. Action Items:

a. COVID-19 Pandemic Response:

Staff recommended approving the customer restriction policies implemented as a result of the COVID-19 pandemic and provide direction to staff regarding continuation of, or modification to these policies.

Eric Oddo summarized the report and answered questions from the Board. The Directors noted concerns, expressed to them by their constituents, that continued restrictions at the facility could lead to an increase in illegal dumping. The Board did not vote on this item but did provide direction to staff to make plans to reopen the facility to the general public via payment by debit/credit cards and touchless payments such as Apple Pay, Samsung Pay and Google Pay as soon as could be done safely.

b. WPWMA Outreach Program: Staff recommended approving the proposed public outreach program elements noted in the memo and provide additional direction to staff related to refinements of the WPWMA’s outreach program.

Eric Oddo summarized the report and Eric and Kevin Bell answered questions from the Board.

MOTION TO APPROVE ITEM 9b: Weygandt/Allard

Vote: Unanimous

10. Upcoming Agenda Items: None.

11. Adjournment: Meeting was adjourned at 6:03 PM.

Respectfully Submitted,

Heather Wilden, Clerk of the Board Western Placer Waste Management Authority

20



FROM: KEN GREHM / CHRIS HANSON

SUBJECT: SUPPORT OF THE SWANA LEGISLATIVE TASK FORCE

RECOMMENDED ACTION:

Authorize payment of $2,000 to the Solid Waste Association of North America (SWANA) Legislative Task Force (LTF).

BACKGROUND:

SWANA is a trade organization primarily serving local governments that provide solid waste services. The LTF was established to track and influence state legislation and regulations affecting the solid waste industry. The WPWMA has held membership in the LTF for several years and continues to have a staff member serving as a voting member and officer on the LTF.

Notable priorities of the LTF’s 2020 Workplan include: organics diversion and funding for organics recycling infrastructure; conversion technologies; market impacts; lithium ion batteries; plastics; PFAS (per- and polyfluoroalkyl substances) and continuing to promote Extended Producer Responsibility to relieve local governments of the sole responsibility of managing problematic wastes.

More recently, the COVID-19 pandemic has resulted in significant impacts on the Legislature and State budget, impacting what bills will move forward this year. The pandemic has also impacted recycling markets, facility operations, and local governments. As a result, advocating for regulatory agency consideration of COVID-19 impacts on these entities, and urging for regulatory and enforcement relief, has become a priority.

Due to the potentially significant impacts to the WPWMA’s operation from pending legislation and regulation, and the LTF’s role in helping shape this legislation, staff believes it is in the WPWMA’s best interest to continue involvement with the LTF, including the annual $2,000 contribution.

ENVIRONMENTAL CLEARANCE:

The recommended action is not considered a “project” under the California Environmental Quality Act.

FISCAL IMPACT:

The $2,000 level of funding recommended is consistent with previous contributions and SWANA’s assessment based on the WPWMA’s service area size. Sufficient funding for this expenditure is included in the FY 2020/21 Preliminary Budget.

ATTACHMENT: SWANA LTF 2020 WORKPLAN

21

1 LEGISLATIVE ADVOCATES

Jason Schmelzer & Priscilla Quiroz * Shaw Yoder Antwih Schmelzer & Lange (916) 446-4656

MISSION STATEMENT:

To represent local government interests and the three California Chapters’ membership in developing and advocating environmentally and

technically sound, economical solid waste policy at the most appropriate government level.

2020 LEGISLATIVE AND REGULATORY

PLATFORM

22



2020 WORK PLAN This coming year LTF advocacy will focus on the below priority issues. Once new bills are introduced in the 2020 session, additional priorities may be identified.

Organic and Recycling Infrastructure Development Issue: During the past four years, the LTF has actively engaged with CalRecycle and State lawmakers regarding the urgent and important need for infrastructure and the need to streamline the regulatory process to site and construct organic diversion facilities to comply with the requirements of Senate Bill 1383 (Lara, Chapter 395, Statutes of 2016) (SB 1383). CalRecycle estimates 41 percent of the waste disposed annually in California is compostable organics (approximately 16 million tons), half of which is considered food waste. Californians will be required to reduce the amount of organic waste (compostable and non-compostable, e.g. textile, carpet, etc.) from landfill disposal by 50 percent by the year 2020 and 75 percent by the year 2025 compared to 2014 disposal rates.

The State of California Budget, May revision for 2019-20 allocated $25-Million of Greenhouse Gas Reduction Funds (GGRF) to Waste Diversion and $28-Million toward the Healthy Soils Program. CalRecycle estimates the cost to construct an anaerobic digester facility is upward of $50-Million and estimates the cost to construct a compost facility is upward of $15-Million. It is estimated approximately 100 new facilities will be required, resulting in capital investment among processors of up to $1 – $3 billion. The current GGRF allocations are significantly insufficient to provide the necessary financial support and there is limited grant funding sources for the successful development of infrastructure to support the implementation of SB 1383.

Actions: The LTF will continue to engage with CalRecycle to:

1. Identify the current infrastructure status and true processing capabilities of compost facilities and anaerobic digesters to process the anticipated additional compostable organic materials;

2. Implement policy to streamline the permitting process of compost facilities and anaerobic digesters;

3. Increase GGRF allocations for development and expansion for organics diversion solutions; and

4. Advocate for the development and utilization of conversion technologies to divert organic, especially non-compostable, materials.

23

eoddo

Text Box



2020 WORK PLAN 5. Urge California Air Resources Board (CARB) and CalRecycle to support waste

diversion and to help fund SB 1383 implementation and the GGRF, especially during the Legislative budget process.

6. Work with Assembly Member Mullin to support his efforts to provide funding through a Bond Measure he is proposing through AB 1298.

7. Track and comment, as necessary, on State Water Resources Control Board regulatory activities that pertain to solid waste and composting facilities (e.g. waste discharge requirements & general permits). Specifically monitor the SWRCB consideration of a proposed Order to amend the Statewide General Permit for Storm Water Discharges Associated with Industrial Activities.

8. Continue to follow and comment on the efforts by the California Air Pollution Control Officers Association (CAPCOA), CARB, and CalRecycle to address air quality permitting and regulatory issues for expanding existing and siting new composting facilities in California.

9. Develop further understanding of and compile additional information on and potential solutions related to, organics management, infrastructure, and SB 1383 compliance. Consider development of materials to share with local elected officials that communicate key messages such as the costs to comply, as well as for noncompliance, and the need for funding.

24

eoddo

Text Box



2020 WORK PLAN SB 1383 Regulations

Issue:

SB 1383 (Lara, Chapter 395, Statutes of 2016) codified that ARB’s Short-Lived Climate Pollutants Reduction Strategy, establishing methane emissions reduction targets in a statewide effort to reduce short-lived climate pollutants. Specifically, the bill established targets to achieve a 50% reduction in the level of statewide disposal of organic waste from the 2014 level by 2020 and a 75% reduction by 2025. The bill also established a target of not less than 20% of currently disposed edible food to be recovered for human consumption by 2025.

CalRecycle is completing the process for SB 1383 regulations implementation. The adoption of the regulations is expected early 2020. The third formal draft of the proposed regulations released in October 2019 requires expansion of organic waste collection to all generators, expand definition of organic waste, specify mandatory local enforcement programs, mandate procurement of diverted organic waste products, specify prescriptive standards for collection and outreach programs, prescribe hauler requirements, landfill and MRF performance standards, formulate verification of new technologies for the use and recovery of solid waste, and stipulate enforcement penalties of up to $10,000/day on jurisdictions for noncompliance. As written, the proposed regulations are contrary to SB 1383 requirements, and do not consider a jurisdiction’s “good faith effort” to comply with the regulations when CalRecycle assess a jurisdiction compliance with the regulations.

Action:

1. Continue to review, discuss, and weigh in on this SB 1383 regulatory process which significantly impacts local jurisdictions, their businesses and residents, and solid waste industry across the State.

2. Urge CalRecycle to use a “good faith effort” approach to determine if a jurisdiction has made reasonable and justifiable efforts to comply.

3. Emphasize that achieving organic waste reduction goals for 2020 and 2025 is a shared responsibility between the waste sector, State government, local agencies, business community and the public.

4. Inform Legislature and local officials of the compliance challenges and costs, both to comply and for noncompliance.

25

eoddo

Text Box



2020 WORK PLAN Single-Use Plastics & Packaging

Issue: China’s National Sword policy implemented in 2018 continues to have significant impacts on the market value of recyclable materials. Many materials now have virtually no market value and increasingly have to be landfilled.

Actions:

1. Continue to discuss these marketing challenges with CalRecycle and legislators, including the authors of AB 1080 and SB 54 on Single-Use Plastic Packaging.

2. Develop a connection to the packaging materials and urge CalRecycle to require manufacturers to reduce packaging materials.

3. Watch AB 1298 (listed in the preceding action item). It may also bring organics relief as it currently contains provisions for recycling infrastructure as well, not just organics processing infrastructure.

Plastics Recyclability – Resins. As the Legislature continues to refine AB 1080 and SB 54, the LTF will continue to monitor other possible legislative reforms that could reduce the amount of unrecyclable, single-use packaging or the cost to recycle it. Some form of Extended Producer Responsibility (EPR) may play a role in this reform.

Lithium Ion Batteries Issue: Lithium batteries continue to pose a public health and safety risk. They pose an even more significant danger to solid waste facilities in California, as the fires caused by batteries of this chemistry can cause significant damage that can be costly, dangerous, and result in insurance liability issues.

Actions:

1. Work with industry to identify solutions to Lithium Ion Battery issues, such as promoting recyclability, EPR, E-waste program inclusion, and/or “Right to Repair” legislation to improve product design.

2. Develop further understanding of and compile additional data on the problems (e.g. number of fires) and potential solutions related to, Lithium Ion batteries. Talk to manufacturers about the problems and brainstorm solutions, such as “Right to Repair” legislation, targeting products where the battery is not removable.

3. Continue to monitor AB 1509 (Mullin) and other related legislation.

26

eoddo

Text Box



2020 WORK PLAN Vaping Wastes

Issue: Recent deaths and hospitalizations have brought the vaping industry and their products to the forefront of media coverage. The lessor known, but significant, issue related to vaping is the waste left behind by the single use vaping devices. SB 424 introduced by Senator Jackson attempts to address the issues relating to vaping waste. School districts are especially hit hard by these waste products as they inherit them through abandonment or confiscation. The device that has a small lithium-ion battery (universal waste), a small circuit board (e-waste), and a nicotine containing pod (“p-listed” RCRA hazardous waste), along with the other materials that make up the e-cigarettes. Currently, there is no way to process these devices in California due to the variety of components and how those components are regulated.

Action: The LTF will be monitoring closely the progress of SB 424 or any other potential legislation that will be attempting to create solutions to this problematic product.

Per- and Polyfluoroalkyl Substances (PFAS)

Issue: Per- and Polyfluoralkyl substances (PFAS) are a human-made family of compounds that are resistant to heat, water and oil. They are commonly used for non-stick coatings on paper plates and bowls, pizza boxes and similar products, which often are disposed of in landfills and can potentially be released to the environment. Research indicates the potential for health impacts related to presence of PFAS in the environment, particularly as a contaminant in groundwater. Concerns about PFAS in drinking water have emerged and a number of efforts are underway to understand the extent and severity of groundwater contamination. Action: The LTF will support efforts to reduce use of PFAS compounds in consumer products and other applications that may have a pathway to the environment via municipal solid waste management practices, as well as track – and comment, as appropriate – on regulatory developments related to PFAS by state agencies.

27

eoddo

Text Box



2020 WORK PLAN CRV / CA Redemption Value

Issue: California’s California Redemption Value (CRV) program, also known as the “Bottle Bill,” is a $0.05 or $0.10 deposit charged at the check stand on eligible beverage containers. Established in 1986 through AB 2020 and currently operated and administered by CalEPA’s California Department of Resources Recycling and Recovery (CalRecycle), the deposit system generates approximately $1.3 billion collected by the state. Since an average of only 80% of containers are returned, CalRecycle uses some of the surplus fees to supplement privately owned and operated redemption centers established in “convenience zones” located near beverage retailers. The CRV program has resulted in an average of 80% of qualified containers being recycled, but to remain fiscally stable, the program has required over 60 legislative amendments in its 30-year existence.

In the past few years the state’s supplemental formula has become outdated, China’s recycling policy changes have crippled the global market, scrap value of beverage containers material has plummeted, and operating costs have steadily risen. The cumulative effect of these factors has resulted in a critical reduction in operating revenue for the privately-operated redemption centers and led to the closure of approximately half of the 2,500 CRV convenience zone centers statewide. The CRV program also requires beverage retailers to provide deposit redemption services to customers or pay penalties. Some retailers have attempted to provide service but were unprepared for the volumes and complexity of the program, while other retailers have just chosen to pay the fines associated with non-compliance with the law. Another issue is that with the convenience center closures in recent years, the surviving convenience centers have been overwhelmed with customers trying to redeem their deposits. The shortage of redemption options for citizens, many of which rely on the CRV system as a form of income, has created unanticipated consequences, including those described above.

The SWANA California Chapters Legislative Task Force is participating in legislative efforts to increase the funding formula used by CalRecycle to help re-open the convenience centers and restore the convenience levels of the CRV program back to levels seen four to five years ago.

Action: Participate in legislative efforts to reform beverage container funding, such as adjustments to CRV and recycling-related payments.

28

eoddo

Text Box



2020 WORK PLAN Conversion Technologies

Issue: Advanced Recovery Technologies (ACT) in California may also be referred to as Waste Conversion Technologies – however that term has become a pejorative term to some. ACTs are non-incineration technologies that are used to convert the non-recyclable portion of the municipal solid waste stream to electricity, fuels, and/or industrial chemical feedstocks. Interest is growing in the demonstration and commercialization of ACTs due to their potential role in addressing renewable energy mandates and green jobs initiatives as well as meeting state and local solid waste management needs. Mostly biogenic waste feedstocks may be used to produce very low carbon fuels, energy and chemicals which are in high demand to meet California GHG reduction goals.

Unfortunately, California has enacted a number of statutory obstacles in the past that have discouraged the development and use of ACTs. The primary problem is that while California has enacted aggressive recycling goals (e.g., 75% recycling by 2025) the California Public Resources Code (PRC) defines most ACTs as a form of “disposal” rather than recycling. Only Composting and Anaerobic Digestion may be considered forms of recycling. This needs to be changed, particularly to open the door for development of low carbon fuels, energy and chemicals. The recent enactment of SB 1383 in the California Health and Safety Code has provided a mechanism through the approval by CalRecycle of technologies that reduce the disposal of organic waste in landfills and achieve equal or greater GHG benefits than attained by composting technologies. ACTs that may be used to support SB 1383 include, but are not limited to:

Gasification is a commercially proven manufacturing process that converts such hydrocarbons and biomass to a synthesis gas (syngas), which can be further processed to produce chemicals, fertilizers, liquid fuels, hydrogen, and electricity.

Pyrolysis is a process that involves the thermal decomposition of feedstock at high temperatures in the absence of air. The resulting end product is a mixture of solids (char), liquids (oxygenated oils), and gases (methane, carbon monoxide, and carbon dioxide) that may be further processed in energy, fuels or chemicals.

Hydrolysis/fermentation (waste-to-ethanol) is an anaerobic biological process through which microorganisms metabolize sugars and produce alcohols to produce such fuel liquids as ethanol and other chemicals.

Autoclave/mechanical processing subjects the wastes to high temperature (usually with superheated steam) under high pressure for a sufficient length of time to kill all the bacteria and pathogens that might be in the waste. The process may involve several steps to remove plastics, metal and glass if

29

eoddo

Text Box



2020 WORK PLAN present. After preprocessing, the wastes are shredded and processed to produce an organic product for low carbon fuel and other uses.

There are a number of sound practical reasons to support the expanded use of ACTs in California:

ACTs offer the potential of generating significantly more revenues than

traditional waste-to-energy (WTE) technologies.

ACTs used to produce low carbon fuels, energy and chemicals can potentially command significant additional revenues under California’s Cap & Trade GHG Reduction policies and the Low Carbon Fuel Standard.

ACTs convert post-recycled MSW to such alternative fuels as syngas or ethanol rather than directly incinerating MSW. These alternative fuels may offer the promise of lower emissions when compared with the emissions associated with the combustion of MSW in traditional WTE facilities.

ACT project and/or technology developers have proliferated in recent years and have drawn the interest of local elected officials faced with mandated state programs to reduce landfilling of waste.

The Solid Waste Association of North America (SWANA) has taken an active role in the evaluation and commercialization of ACTs in North America.

Action: 1. Proactively support the development and use of ACTs through amended

California statutes and regulations, particularly to enhance the production of low carbon energy, fuels and chemicals needed to achieve California’s GHG reduction goals.

2. Advocate for policies that promote and recognize the benefits of producing low-carbon renewable energy from solid waste, particularly from organic waste, to the Legislature and administrative agencies. Monitor and weigh in, as appropriate, regarding energy policies related to biogas, landfill gas, and biomass, and regarding emerging technologies.

30

eoddo

Text Box



2020 WORK PLAN Heavy Duty Transportation Infrastructure

Issue: At the year-end meeting, guest speakers Neil Edgar of the California Compost Coalition and Sean Edgar of CleanFleets gave a presentation on recent CARB and BAAQMD activities, most notably the CARB Diesel Risk Reduction Regulations and BAAQMD methane reduction rules.

The California Air Resourced Board (CARB) is beginning to transition to a position that places the eventual full electrification of the California Heavy Duty Transportation Infrastructure. This will adversely affect the transportation infrastructure utilized by the solid waste and recycling industry in California that has largely transitioned from diesel fueled vehicles to Natural Gas and Renewable Natural Gas. CARB now appears to be heading in a direction to eventually require a further transition to electrification of our HD Transportation Infrastructure. This is currently manifesting itself in at least two areas:

1. Emphasis is no longer being placed on funding transition to a wide variety of low carbon transportation fuels. Grant and loan funding appears to on focused on HD electrification.

2. CARB’s Advanced Clean Truck (ACT) regulations currently under development appear to focus almost exclusively to zero emission vehicles and electrification.

SWANA’s position is that CARB should continue to promote the lowest carbon fuels for our industry that are available and consistent with the other mandates being imposed by California on our services. While the LTF supports the evaluation and testing of electric vehicles, the LTF believes that CARB should promote a variety of alternative transportation and fueling options including the continued transition to the use of renewable natural gas (RNG).

The Solid Waste & Recycling Industry in California has been a strong partner with CARB in helping develop and deploy low carbon and low emission transportation technology and fuels for California. We were the first industry to commit to a transition from fossil diesel fuels to cleaner and low carbon natural gas and then to even lower carbon renewable natural gas (RNG). Our industry is estimated to have invested well over $1 billion in California to develop and use low carbon renewable natural gas in the refuse and recycling vehicles we use. As CARB should be well aware, renewable natural gas has the lowest carbon intensity of all available transportation fuels. While zero-emission vehicle (ZEV) transportation currently has a carbon intensity of about 30 gCO2e/MJ, renewable gaseous and liquid fuels have been shown to have virtually the same or much lower carbon intensity generally as follows:

31

eoddo

Text Box



2020 WORK PLAN gCO2e/MJ

Landfill RNG 33.89 – 52.57

Renewable Diesel 19.65 – 39.33

Bio‐Diesel 11.76 – 83.25

Wastewater RNG 8.68 – 34.36

Municipal Organic Waste RNG – 25.48

Dairy Waste RNG – 281.1

The solid waste and recycling industry has also been experimenting with ZEV refuse and recycling vehicles. However, to date, these vehicles have not been demonstrated to be cost effective or substantially reduce greenhouse gas (GHG) emissions due to weight considerations and the potential need for more ZEV trucks to handle the same amount of refuse and recycling materials. However, the LTF remains committed to continuing to evaluate all possible low carbon and low emission transportation fuels for our industry.

More importantly, California recently enacted SB 1383 to focus on the need to reduce short-lived climate pollutants – such as methane generated by organic waste disposal in landfills. To do this, SB 1383 has mandated that 75% of all organic waste to recycled and recovered from landfill disposal by 2025 – only 5 years away. One of the most effective ways to divert organic waste from landfills is to use it as feedstock in anaerobic digesters and other advanced technologies to produce very low carbon transportation fuels – that can be used to fuel refuse, recycling and other transportation vehicles. In order to cost-effectively develop waste based anaerobic digestion and other low carbon waste-based fuel technologies, CARB needs to support the continued diversion of organic waste for this purpose – as mandated by SB 1383.

We are deeply concerned that CARB is not considering the progress we have made – and continue to make – by possibly throwing these efforts under the “proverbial ZEV bus”. SWANA is strongly opposed to any efforts to pick a single transportation technology, such as electric powered ZEVs, rather than a technology-neutral approach to encourage the development of alternative transportation fuels suitable for specific purposes based on performance standards rather than a specific technology that picks a winner over losers. CARB should be encouraging the solid waste and recycling industry to develop the lowest carbon and most sustainable transportation fueling options for our industry. The LTF believes this should focus on efforts to continue to develop low carbon waste-based transportation fuels – including renewable natural gas. Not only will this help California and CARB meet is GHG goals, but also its waste reduction and recycling goals as well.

Action: Continue to monitor these activities.

32

eoddo

Text Box



2020 WORK PLAN Photovoltaic Modules (Solar Panels)/ Universal Waste

Issue: Calendar Year 2018 brought little movement on promulgation of regulations by the Department of Toxic Substances Control (DTSC). There was more progress in 2019 to develop the regulations and the LTF has been closely monitoring the process as it continues to urge DTSC to move quickly to adopt regulations to designate end-of-life photovoltaic modules as universal hazardous waste. Without a universal waste designation, the panels must be managed as hazardous waste, which is very expensive. This will become a significant issue in the` coming years as more of these products enter the waste stream and California begins putting solar panels on every new rooftop in accordance with Governor Brown’s executive order to the California Public Utilities Commission (CPUC).

Action:

1. The LTF will continue to engage with DTSC to ensure that these important regulations are completed promptly.

2. Continue to identify solutions for the management of solar panels, such as improvement in labeling to reduce need to test. Assess the scope and cost of problem and discuss these details with solar manufacturers. Watch DTSC efforts and urge DTSC to seek authority from EPA to regulate the items, or a nearer-term solution for household panels

3. Track and comment on Department of Toxic Substances Control regulations regarding management of used solar panels, as appropriate.

4. Work to develop further understanding of, and communicate the problems related to, management of solar panels and advocate for potential solutions.

33

eoddo

Text Box



2020 WORK PLAN Recyclables Market Change / China National Sword Policy

Issue: In 2017, China announced that 24 categories of materials including recovered mixed paper, recycled plastics, textiles and other materials, would be banned from import into the country later in the year. In January 2018, China confirmed strict contamination standards of 0.5% for plastic, ferrous metals, and other materials, that took effect March 1, 2018. The changes have resulted in significant challenges for statewide recycling industry and local governments as each year, California exports approximately one-third of its recyclable material – most of that to China. In July 2018 China declared its intent to ban all recyclable scrap imports entirely by 2020.

In 2018, proposed legislation AB 3178 would have made finding related to the impacts from the policy and required CalRecycle to consider jurisdictions’ good faith efforts to recycle. While the bill passed, it was vetoed by the Governor whose veto message stated that CalRecycle already has the authority to do that.

The crucial need for local markets, resources to support necessary diversion infrastructure, new technologies to recover energy, fuels and chemicals, and support for producer responsibility will dominate the LTF’s 2020 efforts.

Actions:

1. Engage with CalRecycle and other stakeholders to address challenges associated with market uncertainties and downturns for recyclable materials, such as China’s restrictions on importation of paper and plastics. Increase awareness of these issues through communication with Legislature (e.g. Lobby Day), regulators, and local government.

2. National Sword Awareness: Continue to interpret the impacts to CA markets, advocate for actions that would help develop alternative markets, and communicate with legislators and regulators.

3. Compile additional information on the impacts on local governments as well as what can be done in response to the National Sword impacts, emphasizing the need for local markets. Education / Outreach

34

eoddo

Text Box



2020 WORK PLAN Miscellaneous

Action: AB 901. Monitor AB 901 implementation to assure that it balances development of robust data with the administrative burden on haulers, facilities and jurisdictions.

Action: E-Waste. Watch and support CalRecycle efforts to add more products to the E-waste program. Watch and participate in proposed legislation related to the expansion of CalRecycle’s E-waste program.

Action: Greenhouse Gas. Track and comment as appropriate on implementation of new greenhouse gas reduction programs and requirements as well as air quality monitoring and reduction programs pursuant to AB 617 (2017).

Action: CARB. Track and comment, as necessary, on Air Resources Board and regional air control/management districts regulatory activities that impact solid waste facilities permitting and operation.

General Actions:

Principles: Apply LTF principles listed on the last page of this report to comments in rulemaking activities.

Monitoring. Monitor relevant, proposed CA legislation and regulations.

Comments / Advocacy: Take and advocate positions on that legislation and regulation (support, neutral or oppose, or support/oppose with modifications) with CA state legislators and regulators (such as CalRecycle, CA EPA, CA (and regional) Water Quality Management Boards, and the CA (and regional) Air Quality Management Districts).

Local Government Discretion: Promote local government discretion in legislation and program selection and seek amendments to legislation and regulations that impede local government discretion.

35

eoddo

Text Box



2020 WORK PLAN Ongoing Outreach and Education The LTF will increase awareness in the Legislature and the Administration, SWANA chapters, and other groups that the SWANA California Chapters represent the majority of the publicly-owned and operated solid waste management facilities in the state, and educate them about the LTF’s activities, concerns and interests. Promote the LTF and chapters as authorities on solid waste issues.

Relationships 1. Visibility: Maintain an active advocacy presence in the Legislature and at

state agencies that oversee the management, recycling, and disposal of municipal solid waste, household hazardous waste, and pertinent special wastes, through involvement in the legislative and regulatory processes.

2. Legislators, Governor and Regulators. Develop relationships with key members of the Legislature and their staff, and with the appropriate staff in the Governor’s office and at CalRecycle, the Department of Toxic Substances Control, Air Resources Board, State Water Resources Control Board, and other agencies as appropriate.

3. Solid Waste Organizations. Reach out to and engages other solid waste organizations (such as CAW, CRRA, SWIG; see further examples in the 2019 Report). Meet regularly with their representatives to develop opportunities for collaboration.

4. Local Government Organization: Coordinate advocacy efforts with other local government groups, particularly for issues impacting local authority, governance and discretion.

5. Inclusion in LTF Meetings: Include CSAC, CA League of Cities, and RCRC in LTF activities, such as the in-person meetings. (See list of additional entities in the 2019 Report above.)

6. SWANA International: Support SWANA International in advocacy and policy areas that apply to California, such as product stewardship policy, disposal bans, “Pushing the Envelope” documents, and applied research on emerging technologies.

36

eoddo

Text Box



2020 WORK PLAN Education

1. Communication. Further enhance education and awareness of key legislation and regulations to SWANA membership through communications such as fact sheets, targeted communications such as the annual legislative platform, discussions at Chapters, and presentations at the Western Regional Symposium.

2. Lobby Day Fact Sheet to communicate the LTF’s priority issues and potential solutions to legislators.

3. Videos. Consider development of short videos to provide additional awareness of key issues.

4. Website. Improve and enhance the convenience and effectiveness of the LTF website to better serve and inform SWANA members of LTF activities. Ensure mobile compatibility of the website.

5. White Papers. In addition to submitting comment or position letters, develop new or updated White Papers, position papers, or fact sheets, as needed, to educate legislators, regulators and other stakeholders about SWANA’s perspective on key new or emerging policy issues.

37

eoddo

Text Box


38




SUBJECT: MRF AND WRSL COLA ADJUSTMENT

RECOMMENDED ACTION:

Approve a one-time adjustment to the Fiscal Year 2020/21 Material Recovery Facility (MRF) and Western Regional Sanitary Landfill (WRSL) annual Cost of Living Adjustment (COLA) methodology to account for impacts likely related to the COVID-19 pandemic.

BACKGROUND:

Both MRF and WRSL operating agreements include an annual COLA based on labor and commodity indices published by the U.S. Bureau of Labor Statistics (BLS). The labor indices are published quarterly while the commodity indices are published monthly. The operating agreements utilize 1st quarter labor indices and March commodity indices to determine the applicable COLAs for each agreement.

In reviewing the appliable commodity indices, a general decline in values was noted that may be due, in part, to the impacts of the COVID-19 pandemic on the U.S. economy. As it is currently unclear how the pandemic will impact actual facility operating costs throughout FY 2020/21, staff believe it is reasonable to consider a one-time adjustment to the COLA methodology by utilizing indices that predate the pandemic. As such, staff recommend utilizing the February 2020 commodity indices when computing the FY 2020/21 MRF and WRSL COLAs. Since the COLA methodology defined in both agreements refences fixed “base year” values, approving the one-time adjustment to the methodology will not compound the effect of the adjustment in subsequent years.

If the contractually defined indices are used, the estimated year-over-year change to the fees would be 3.06% and -2.04% for the MRF and WRSL, respectively. If your Board approves the recommended one-time methodology change, the estimated year-over-year change to the processing fees would be 3.47% and -0.80% for the MRF and WRSL, respectively.


The recommended action is not considered a Project under the California Environmental Quality Act.

FISCAL IMPACT:

Making the recommended one-time change to the COLA methodology would result in a total increased annual cost to the WPWMA of approximately $92,505. Of this amount, $64,240 is associated with MRF operations and $28,265 is associated with WRSL operations.

39


40



FROM: KEN GREHM / CHRIS HANSON

SUBJECT: 2020 LEGISLATIVE UPDATE AND STRATEGIC AGENDA

RECOMMENDED ACTION:

Receive an update on the 2020 Legislative Session and approve the 2020 Legislative Strategic Agenda prepared by Shaw Yoder Antwih Schmelzer & Lange (SYASL).

BACKGROUND:

SYASL has prepared the attached 2020 Legislative Update focusing on COVID-19 related impacts to the Legislature as well as bills and regulation of interest to WPWMA, including topics such as:

Plastic packaging waste Infrastructure funding

Organic waste Lithium ion batteries

Beverage container recyclability Solar Panels

Biomass SB 1383 regulations

Extended producer responsibility Emerging and Alternative Technologies

The Strategic Agenda defines the WPWMA’s positions on key legislative issues and guides advocacy efforts, enabling SYASL to react quickly to high priority and fast-moving bills, ensuring that WPWMA’s positions are heard in a timely manner. SYASL would be authorized to take immediate action, consistent with the approved Strategic Agenda and the Executive Director’s or designee’s approval. Staff will review all recommended actions to ensure they align with the approved Strategic Agenda.

This year, the Strategic Agenda includes items related to the COVID-19 pandemic, including support for temporary regulatory and enforcement relief, as well as delayed implementation of significant regulation such as SB 1383.

The Legislature has indicated that it intends to reduce the bill load this year and focus primarily on legislation related to COVID-19 mitigation and other priority issues such as homelessness and wildfires. There is a potential that many of the bills introduced may not be acted on this year. However, staff and SYASL continue to track and act on legislation and are urging certain bills to be heard, such as SB 1191 which would require CalRecycle to consider an entity’s Good Faith Efforts when evaluating compliance with SB 1383.

Upon your Board’s approval, the Strategic Agenda will become effective immediately. ATTACHMENT: 2020 LEGISLATIVE UPDATE

2020 LEGISLATIVE STRATEGIC AGENDA

41

DATE: May 8, 2020

TO: The Western Placer Waste Management Authority Board of Directors

FROM: Jason Schmelzer, Karen Lange, and Priscilla Quiroz

Shaw Yoder Antwih Schmelzer & Lange

SUBJECT: 2020 Board Update

On behalf of all of the employees of Shaw Yoder Antwih Schmelzer & Lange (SYASL), we’d like to thank the Board of Directors for entrusting our firm with the important task of providing legislative and regulatory advocacy services to the Western Placer Waste Management Authority (WPWMA). In order to aggressively advocate on behalf of WPWMA, our firm devotes two partner‐level advocates who are also policy experts on local government and environmental policy, as well as an additional advocate to provide supportive efforts. Our core function is to identify legislation of interest, assist in the policy analysis, consult on the political implications of engaging, and then to actively lobby in furtherance of WPWMA’s position. Ongoing support includes monitoring of legislation and regulation, providing weekly and monthly updates, drafting and submitting comment letters, and participating in legislative and regulatory hearings and workshops on behalf of WPWMA.

The California State Legislature has begun the second year of the 2019‐2020 legislative session. 1,801 Assembly bills and 775 Senate bills have been introduced in 2020, totaling 2,576 bills.

The COVID‐19 pandemic has fundamentally altered life in California and around the world. Since March 16, 2020, the Legislature went to recess temporarily due to COVID‐19. The Assembly returned on May 4 and the Senate is scheduled to return on May 11, and the legislative calendar for both houses have been revised to accommodate policy committee hearings to hear priority bills. As the Legislature prepares to reconvene, participation in committee hearings and interactions with State law makers and legislative staff will be altered. Both houses are issuing guidance on physical distancing, limiting the number of people in committee hearings, and strongly encouraging the public and advocates to participate via the web portal or telephonically.

State legislators and the Newsom Administration have focused their attention on meeting the immediate needs of Californians as the COVID‐19 pandemic unfolds. There seems to be general agreement that three ongoing state emergencies – COVID‐19 response, homelessness, and wildfires – continue to deserve legislative attention, but most other legislative business might have to wait. In light of the compressed legislative schedule and scope of business, leadership in both the Assembly and Senate have signaled to their colleagues a need to scale back their legislative portfolio, but their approaches, differ. Senate pro Tem Atkins released a memo asking for Senators to reconsider their priorities and reduce the number of bills they will carry for reminder of the year. The memo also instructs Senate policy committees to compile a list of issues within their committee jurisdiction that need immediate legislative and/or regulatory response as a result of the COVID‐19 pandemic. Assembly leadership, however, has given the Assembly Policy Committees the discretion on what type of bills will be heard in their committee. A few committees have sent out messages to authors that have bills pending in their policy committee asking them if their bill (1) addresses an urgent need related to the COVID‐19 crisis, or (2) addresses another urgent issue that must be resolved.

42

SYASL will continue to actively monitor and flag legislation for WPWMA. This report outlines legislation related to solid waste below based on their current status. We also outline relevant regulatory efforts and budget updates.

2020 LEGISLATIVE REPORT

This report outlines solid waste related legislation based on their current status. WPWMA staff has directed the SYASL lobbying team to actively advocate on several pieces of legislation in the second year of the 2019‐20 legislative session. This report also summarizes several other pieces of legislation that, while WPWMA has not taken a formal position on them, may impact the operations of WPWMA.

Bills with an established WPWMA Position

AB 793 (Ting) Solid waste: biomass –Support

WPWMA was supportive of this legislation that would revise that definition of “biomass conversion” and would define “biomass” to include, among other things, crop residues, bark, yard waste, wood chips, wood waste, and nonrecyclable pulp or paper. The intent is to add clarity to existing law which does not contain a definition for “biomass”. The WPWMA utilizes biomass conversion to process a significant portion of the wood waste received at the MRF.

AB 1080 (Gonzalez) California Circular Economy and Plastic Pollution Reduction Act –Watch

Would establish the California Circular Economy and Plastic Pollution Reduction Act, which would require manufacturers to ensure that all single‐use packaging and certain food (plates, bowls, cups, stirs, straws) be recyclable or compostable by 2030. It would also require a 75% reduction statewide by producers of waste generated from single‐use packaging and certain food ware through source reduction, recycling, or composting by 2030. The WPWMA recycles plastic materials to the extent they are marketable and could benefit from efforts to improve the recyclability of these materials.

AB 2287 (Eggman) Solid waste: plastic products: certification –Under Review

Current law prohibits a person from selling a plastic product in the state that is labeled with the term “compostable,” “home compostable,” or “marine degradable” unless, at the time of sale, the plastic product meets the applicable ASTM standard specification or the Vincotte OK Compost HOME certification. The bill would authorizes the Department of Resources Recycling and Recovery (CalRecycle) to issue guidelines for determining whether a plastic product is not compliant with these labeling requirements, and whether a plastic product is designed, pigmented, or advertised in a manner that is misleading to consumers.

AB 2959 (Calderon) Solid waste: byproducts from the processing of food or beverages –Watch

The California Integrated Waste Management Act of 1989 authorizes each county, city, district, or other local governmental agency to determine, among other things, whether solid waste handling services are provided for by means of a nonexclusive, partially exclusive, or wholly exclusive franchise, contract, license, permit, or otherwise. The act prohibits those local governmental entities from exercising that authority with regard to the hauling of byproducts from the processing of food or beverages if certain conditions are met, including the condition that the byproducts originate from, among others, entities required to be registered for the manufacture, packing, or holding of any processed food in this state and certain entities exempt from that registration. This bill would reauthorize those local governmental entities to exercise that authority if those byproducts originate from a supermarket, grocer, restaurant, or other retail food establishment.

AB 3158 (Melendez) Solid waste: Rechargeable Battery Recycling Act –Watch

Would authorize the Department of Toxic Substances Control to include on its internet website the prior years’ previously posted information of the estimated amount, by weight, of each type of rechargeable batteries returned for recycling.

AB 3163 (Salas) Energy: biomethane: procurement –Support

This bill expands the definition of pipeline biogas to include any RPS eligible biogas that meets applicable pipeline standards for protection of health and safety. WPWMA is supportive because it broadens what qualifies as biomethane. Converting woody biomass to pipeline gas will also help WPWMA achieve California climate goals by reducing landfilling of organic waste. Woody waste is a significant portion of organic landfill was which must be diverted to beneficial alternatives pursuant to SB 1383 (Lara, 2016).

43

SB 54 (Allen) California Circular Economy and Plastic Pollution Reduction Act –Watch

Same as AB 1080 (Gonzalez). See above.

SB 667 (Hueso) Greenhouse gases: recycling infrastructure and facilities –Support

This bill would require CalRecycle to develop a five‐year investment strategy necessary to meet specified our organic waste reduction goals and allocates funding on a multi‐year basis to CalRecycle’s organic waste recycling program. The WPWMA is supportive of this measure because they could benefit from funding made available for recycling infrastructure, as long as the source of the funding is not from solid waste facility tipping fees.

SB 895 (Archuleta) Energy: zero‐emission fuel, infrastructure, and transportation technologies –Watch

Current law requires the State Energy Resources Conservation and Development Commission, within the limits of available funds, to provide technical assistance and support for the development of petroleum diesel fuels that are as clean or cleaner than alternative clean fuels and clean diesel engines. This bill would instead require the commission, within the limits of available funds, to provide technical assistance and support for the development of zero‐emission fuels, zero‐emission fueling infrastructure, and zero‐emission fuel transportation technologies.

SB 1191 (Dahle) Organic waste: reduction goals: local jurisdictions –Support

This bill allows low population counties and rural jurisdictions to develop and implement alternative organic waste management programs in place of the rigid and costly Senate Bill 1383 (Lara; 2016) mandates. SB 1191 aligns the California Department of Resources Recycling and Recovery’s (CalRecycle) organic waste management SB 1383 statute to conform it to long‐standing provisions that require CalRecycle to consider whether a jurisdiction or entity made a “good faith” effort to implement its recycling program before issuing a compliance order or imposing penalties on that jurisdiction or entity. WPWMA supports this measure because it will give CalRecycle more flexibility to consider a host of internal and external factors that impact jurisdictions’ and facilities’ ability to implement the new regulatory requirements.

SB 1238 (Hueso) Road project contracts: preference: recycled plastics –Support

Would require the Department of Transportation to conduct a study to determine if including recycled plastics in asphalt used for a construction and repair project of a state highway is feasible. If the department determines that this use of recycled plastics is feasible, the bill would require the department, when awarding a contract for a construction or repair project of a state highway, to award a preference of an unspecified percentage to a bidder who proposes to use asphalt that includes recycled plastics for the construction or repair project. The bill would declare it to be the goal of the state that, by 2045, the department and each local agency use asphalt that includes recycled plastics in every construction or repair project of a local road or state highway that will use asphalt. WPWMA Is supportive of measures that promote the development of markets for recycled materials.

Bills WPWMA is Monitoring

AB 464 (C. Garcia) California Global Warming Solutions Act of 2006.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act defines specified terms, including, among others, district to mean an air pollution control or an air quality management district until January 1, 2031.This bill would indefinitely define district to mean an air pollution control or an air quality management district.

AB 1506 (McCarty) Solid waste: commercial and organic waste: recycling bins

This bill specifies that the state's commercial and organics recycling laws only apply to permanent, nonmobile, food service facilities with dedicated seating areas that are not full‐service restaurants when located in a theme park, amusement park, water park, resort or entertainment complex, zoo, attraction, or similar facility.

AB 2145 (Ting) Transportation electrification: electric vehicle charging ports.

This bill would require the California Public Utilities Commission to direct electrical corporations to file applications for programs and investments to accelerate widespread transportation electrification to meet the goal of installing at least 1,000,000 electric vehicle charging ports by December 31, 2030. The bill would require the statewide assessment prepared by the Energy Commission to include as a goal the installation of at least 1,000,000 electric vehicle charging ports by December 31, 2030.

44

AB 2866 (E. Garcia) Vehicular air pollution: Clean Fleet Program.

Would require the State Air Resources Board, by July 1, 2021, to adopt the Clean Fleet Program to reduce the emissions of greenhouse gases, to improve air quality, and to benefit low‐income residents by providing certain incentives for the displacement of petroleum diesel with biofuels. The bill would require the state board to adopt guidelines for the program and to begin the implementation of the program on January 1, 2022. The bill would require the state board, on July 1, 2021, and every fiscal year thereafter, to set specific and measurable goals for the displacement of petroleum fuel with biofuels.

AB 2920 (Obernolte) Hazardous waste: transportation: consolidated manifesting procedures.

Current law, as part of the hazardous waste control laws, imposes various manifest requirements for transporting hazardous waste, including, among others, requiring any person generating hazardous waste that is transported, or submitted for transportation, for offsite handling, treatment, storage, disposal, or any combination thereof, to complete a manifest and be subject to transporter registration requirements. Current law authorizes transporters and generators to use consolidated manifesting procedures for certain kinds of waste if specified requirements are met. This bill would authorize those consolidated manifesting procedures to be used additionally for retail hazardous waste collected from a retailer engaged in business in the state. The bill would require, when managing retail hazardous waste, that incompatible materials be kept segregated and managed appropriately in separate containers.

AB 2993 (Levine) Hazardous waste: classification: exclusions: green waste.

Current law requires the Department of Toxic Substances Control to develop and adopt by regulation criteria and guidelines for the identification of hazardous wastes and extremely hazardous wastes. Current law exempts certain kinds of waste, including, among other things, wood waste. This bill would exclude from classification as a hazardous waste green waste, as defined, that would be classified as hazardous solely because a representative sample of the green waste is below a specified threshold pursuant to an acute aquatic toxicity test described in a specified regulation.

AB 3027 (O'Donnell) California Global Warming Solutions Act of 2006: Low‐Carbon Fuel Standard regulations.

This bill would require the State Air Resources Board , through a public process, to consider before January 1, 2023, allowing renewable natural gas or biogas that is delivered via a common carrier pipeline to a crude oil production or transport facility from a source that the state board determines directly reduces emissions of methane in the state to generate specified credits under the Low‐Carbon Fuel Standard regulations.

SB 1156 (Archuleta) Lithium‐ion batteries: illegal disposal: fire prevention.

This bill would require the Department of Forestry and Fire Protection (CAL FIRE), in consultation with relevant state agencies like the California Highway Patrol (CHP), the Department of Toxic Substances Control (DTSC), and the waste industry, to develop protocols for the proper management of the disposal of lithium‐ion batteries using existing resources, including safe handling, detection, and the suppression of fires originating from discarded lithium‐ion batteries.

SB 1183 (Hertzbergy) Electric vehicle charging master plan.

Current law requires the State Energy Resources Conservation and Development Commission, working with the State Air Resources Board and the Public Utilities Commission (PUC), to prepare a statewide assessment of the electric vehicle charging infrastructure needed to support the levels of electric vehicle adoption required for the state to meet its goals of putting at least 5 million zero‐emission vehicles on California roads by 2030, and of reducing emissions of greenhouse gases to 40% below 1990 levels by 2030. Current law requires the Energy Commission to update the assessment at least once every 2 years. This bill would require the Energy Commission, as a part of each update to the assessment, to conduct an assessment of certain factors and how those factors will affect the market for and technological development of electric vehicles and infrastructure.

SB 1329 (Wilk) Climate change: Climate Innovation Grant Program: voluntary tax contributions.

This bill would establish the Climate Innovation Grant Program, to be administered by the Strategic Growth Council or another entity identified by the council that it determines to have the appropriate skills necessary to successfully implement this program. The bill would establish the Climate Innovation Fund, a special fund, in the State Treasury and would continuously appropriate the moneys in the fund to the council for purposes of the program. Once the Climate Innovation Fund accrues $2,000,000, the bill would require the council or the entity implementing the program to notify the Franchise Tax Board and would require the program to award grants for the development and research of new innovations and technologies that either

45

reduce emissions of greenhouse gases or address impacts caused by climate change. The bill would repeal the program on January 1, 2031.

SB 1332 (Allen) Solid waste: recycling and composting infrastructure.

The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. This bill would require the department to adopt by January 1, 2022, regulations to develop a loan, grant, and incentive payment program to accomplish specified goals to improve California’s statewide recycling and composting infrastructure. The bill would create the California Recycling and Composting Infrastructure Fund in the State Treasury, and would require, upon appropriation, moneys in the fund to be used for these purposes.

2020‐21 STATE BUDGET REPORT

2020‐21 State Budget

In the beginning of 2020, California had a strong economy, historic reserves, and a structurally balanced budget. Governor Gavin Newsom's January budget reflected a $5.6 billion surplus and record level of reserves of $21 billion in FY 2020‐21, including $18 billion projected in the state's Rainy Day Fund. However, the COVID‐19 pandemic has caused a national recession. On March 24, 2020 the Department of Finance issued a letter asking state departments to prepare a basic budget to preserve ongoing operations and also signaling that the Governor’s May Revision might pull back on some of the proposals in his January budget.

On April 6, 2020, the Chair of the Assembly Budget Committee, Assemblymember Philip Y. Ting, released a memo outlining the committee’s budget process for when the Legislature returns. The Legislature intends to pass a June 15 baseline budget, which does not include any new spending priorities or stakeholder ideas, with the exception of COVID‐19 related costs, wildfire prevention and homelessness funding. Assemblymember Ting indicated that all deliberations on special fund programs – such as those that receive Greenhouse Gas Reduction Funds – will be deferred until after June 15. Given the three‐month delay for personal income taxes, Chair Ting points out that the state will not have complete picture of available revenues until August. He expects that a second round of budget deliberations in August will be necessary. The August Revision will be the second round of budget deliberations to allow the Legislature to consider issues that were not discussed in May and June, especially new issues related to recovery from the COVID‐19 pandemic.

On May 7th, 2020, the Department of Finance released its projections announcing that California faces a $54.3 billion deficit, the state's worst budget gap since the Great Recession. The bulk of the deficit comes from a projected $41.2 billion revenue decline over the next 14 months. Forecasters believe the state's big three tax sources — personal income, sales and corporations — will plunge about 25 percent. The Administration is specifically estimating that sales tax revenue will be down 27.2% in the budget year. Governor Newsom will release his May Budget Revision in the next week, which will provide us with the clearest picture yet of the programmatic cuts that will be necessary to balance the budget.

SYASL will monitor the budget process for WPWMA, with a particular focus on conversations held in the Assembly Budget Subcommittee No.3 on Resources and Transportation and the Senate Budget and Fiscal Review Subcommittee No. 2 on Resources, Environmental Protection, Energy & Transportation.

Greenhouse Gas Reduction Fund

The Governor originally proposed an allocation of $15 million from the Greenhouse Gas Reduction Fund (GGRF) for CalRecycle to support waste diversion and recycling infrastructure, this is lower than amount granted to CalRecycle last year ($25 million). As outlined above, COVID‐19 is impacting the budget situation significantly and there is a lot of uncertainties of what GGRF allocations will look like this year. SYASL will continue to work with stakeholders to support GGRF dollars for CalRecycle and advocate for additional funding to help agencies comply with new mandates such as SB 1383.

2020 REGULATORY REPORT

State Regulations

Short‐Lived Climate Pollutants

SB 1383 (Lara, Chapter 395, Statutes of 2016) codified that ARB’s Short‐Lived Climate Pollutants Reduction Strategy, establishing methane emissions reduction targets in a statewide effort to reduce short‐lived climate pollutants. Specifically, the bill established targets to achieve a 50% reduction in the level of statewide disposal of organic waste from the 2014 level by 2020

46

and a 75% reduction by 2025. The bill also established a target of not less than 20% of currently disposed edible food to be recovered for human consumption by 2025. Proposed regulations Impose numerous requirements on generators, jurisdictons, and solid waste facilities Including, among other things, that organic waste processing facilities must meet certain organic waste recovery targets.

On April 20, 2020, CalRecycle released a revised draft of the SB 1383 regulatory text, which started a 30‐day comment period that will conclude on Wednesday, May 20, 2020. This draft will be the final comment period for these regulations. However, due to the COVID‐19 pandemic, local governments and associations are requesting state officials and CalRecycle to grant limited grace periods and temporary relief from specific requirements related to solid waste and recycling. Specifically, they are requesting a delay in implementation of SB 1383 (Lara, 2016), until at least six months after the COVID‐19 emergency is deemed over by the State of California. Since the solid waste and recycling industry services are part of the essential infrastructure, under the Governor Gavin Newsom's March 19, 2020 Executive Order N‐33‐20, a handful of cities, counties, and special districts are concern with their ability to meet specific statutory obligations during the COVID‐19 pandemic. WPWMA worked through the Solid Waste Association of North America (SWANA) Legislative Task Force to be part of the coalition letter that made this request. SYASL will continue to monitor and update WPWMA on these efforts.

AB 901 Reporting Regulations

AB 901 was signed by Governor Brown in 2015. The purpose was to change how disposal and recycling data is reported to CalRecycle and provide CalRecycle with a better understanding of statewide recycling. Waste, recycling, and compost facilities, as well as exporters, brokers, and transporters of recyclables or compost will be required to submit information directly to CalRecycle and with a lot more detail regarding recycled material than previously required. Throughout 2016 and 2017, CalRecycle released several Informal drafts of the regulation and WPWMA collaborated with the SWANA Legislative Task Force on comments.

Formal workshops and rulemaking began in 2018, and CalRecycle concluded the rulemaking process on December 31, 2018. The AB 901 Recycling and Disposal Reporting System (RDRS) regulations were submitted to the Office of Administrative Law for approval and publication in the California Code of Regulations on January 18, 2019. On March 5, 2019, RDRS regulations were approved by the Office of Administrative Law and the regulations have gone into immediate effect. The regulations have significantly expanded the existing disposal reporting system to also include recyclable materials. WPWMA is now required to submit these reports directly to the State.

CalRecycle Packaging Reform Concepts

CalRecycle is hosting informal public workshops to discuss legislative and regulatory concepts pertaining to packaging reform, as part of the efforts to reach the statewide 75% by 2020 diversion goal. CalRecycle envisions finalizing a packaging policy model sometime this year. CalRecycle has thus far discussed draft screening criteria for determining priority packaging types, including prevalence in the waste stream, increasing or steady usage trend, current collection and/or processing infrastructure, contamination of material, reusability and recyclability, GHG impacts, and waterway and marine debris.

SYASL will continue to engage in and monitor these discussions to determine potential benefits for WPWMA, such as an EPR define approach, but also for potential detrimental proposals, such as a mandatory packaging approach that could adversely affect traditional local control over the collection and processing of solid waste and recyclables.

China’s “National Sword” Policy

Since 2017, China has been heightening restrictions on imports of certain recyclable materials, including plastics and mixed paper. China has been the predominant market for recycling such materials generated in California. CalRecycle reports that each year California exports about a third of the recyclable material it collects. Historically, majority of that material—particularly unsorted mixed paper and mixed plastics—went to China for processing and manufacturing into new products.

In June 2019, China released a proposed revision to the Solid Waste Management and Pollution Prevention Law in China. The proposal could affect the operations of brands and recyclers. In the proposal it states that there "should be a complete solid waste import ban by 2020." While the United States has been speculating whether or not China will implement a total waste import band by late 2020, as declared in 2017, it is clear that China plans to move ahead with this.

Additionally, on March 6, 2019, the Indian government announced a full country ban of all scrap plastic imports by August 31, 2019. India is one of the world’s top 10 plastic scrap importers, and since China implemented its waste import ban and

47

contamination standard, the country has grown as an importer as recyclers attempt to find new marketer for materials. However, this isn’t the first time India has banned scrap plastic imports. In 2016, India banned scrap plastic import, but later that year, the country announced certain exceptions.

CalRecycle has held multiple workshops on this issue, and has been coordinating with local enforcement agencies in order to address challenges and provide guidance around storage of processed recyclable material. SYASL will continue to discuss this issue with CalRecycle and members of the legislature to address the significant impacts these market restrictions will present to processing facilities such as the WPWMA. SYASL will continue to discuss this issue with WPWMA and keep WPWMA staff apprised of relevant updates.

Other Forthcoming Issues

There are several potentially significant reform efforts coming in 2020 that could impact WPWMA operations. While the fate of these efforts is unclear at this point, following is a brief preview of each issue.

SB 212 Regulatory Process

On September 30, 2018, Governor Brown signed SB 212 (Jackson, Ting, and Gray), a bill to create a statewide takeback program for pharmaceutical medications and sharps products from households. The bill requires manufacturers of these products to create, fund, and operate a stewardship program that provides for the takeback of covered drugs and home‐generated sharps waste from households as well as reimbursement of local agency sharps disposal costs. CalRecycle is required to adopt implementing regulations by January 1, 2021, with full implementation of stewardship by June 1, 2021.

On January 3, 2020, CalRecycle began the formal rulemaking progress for the regulations and held a 45‐day formal public comment period on the proposed regulations. CalRecycle is currently compiling stakeholder comments received during the 45‐day formal public comment period and evaluating potential changes to the proposed regulations in anticipation of an upcoming 15‐day formal public comment period.

SYASL will continue to monitor and engage in the SB 212 regulatory process on behalf of WPWMA.

Solar Panel Regulations

In 2015, Senate Bill 489, Monning, authorized DTSC to designate solar panels as Universal Waste and promulgated regulations for the processing of these panels, similar to the existing eWaste processing existing today. In May 2018, the California Energy Commission mandated that all new homes under three stories will have solar systems installed. This mandate took effect on January 1, 2020.

The WPWMA has begun to receive solar panels that have reached the end of their useful life and expects to receive many more in the future. Large electricity generating solar panels are made of a variety of components, one of which is the photovoltaic cells themselves. Some cells exhibit the hazardous waste characteristic of toxicity, and some do not. Unless a determination can be visually made on the extent of toxicity, they must be managed as hazardous wastes, meaning they can only be legally disposed of in a Subtitle C lined Class I landfill, which can be very costly (up to $1,300 per ton). If the DTSC designates solar panels as Universal Waste, it would provide a simpler, alternative management option and enable them to be managed similar to electronic wastes and in a way that is commensurate to their low risk.

In 2018, DTSC was drafting regulations pursuant to SB 489 but discovered it did not have the authority from the Federal EPA to designate certain RCRA Wastes as Universal Wastes. On January 14, 2020, the Federal EPA finally granted California final authorization for its Universal Waste Program. DTSC is in the final stages of adopting regulations. SYASL will continue to monitor and engage in public hearings on the proposed regulation on behalf of WPWMA.

48

WESTERNPLACERWASTEMANAGEMENTAUTHORITY

2020STRATEGICAGENDA

∰

PREPAREDINCONSULTATIONWITH

SHAWYODERANTWIHSCHMELZER&LANGE

49

2 | P a g e Western Placer Waste Management Authority 2020 Strategic Agenda

GENERALPOLICYGUIDELINES

The statutes and regulations that guide the management of solid waste in California will undergo significant changes in the coming years, which could have significant operational and financial impacts on the Western Placer Waste Management Authority (WPWMA). Therefore, it is the policy of the WPWMA Board to support legislation which will:

Provide maximum flexibility and local control for agencies to comply with regulations

Support projects for, and eliminate barriers to, energy recovery from solid waste

Create markets for materials (versus disposal penalties) to promote recycling

Expand extended producer responsibility in California

Provide funding for mandated recycling programs and infrastructure

It is the policy of the WPWMA Board to oppose legislation which would:

Impose new mandates without commensurate funding and demonstrated need

Impose infeasible or unreasonable performance standards on materials recovery facilities

Increase solid waste diversion rates beyond the capability of local agencies Specific Priorities in 2020 include (and are discussed in further detail below):

Organics Diversion and Infrastructure Development

Recycling Markets

Extended Producer Responsibility

Lithium Ion Batteries in Consumer Products

SB 212 Regulations – Home-Generated Sharps and Pharmaceutical Waste

SB 1383 Regulations – Short-Lived Climate Pollutants / Organic Waste Reduction Targets

CalRecycle Funding

Emerging and Alternative Technologies

Temporary regulatory and enforcement relief due to the COVID -19 pandemic

As legislation is introduced and reviewed, the Board and staff will evaluate legislation through the lens of the above general policy guidelines. Specific issues that the Board can expect to see in the second year of the 2019-2020 Legislative Session, and commensurate action of the Board, is as follows:

50


SPECIFICISSUESISSUE:ALTERNATIVEDAILYCOVER

WPWMA diverts over 30,000 tons of MRF fines annually by using it as ADC. Prior to its use in 2003, the WPWMA conducted a demonstration project that verified the material met the stringent State standards for landfill cover materials. MRF fines generally consist of dirt, small shreds of paper, glass and inert materials. Although the MRF operator has investigated other uses and markets, to date they have been unable to identify any viable uses for the material other than ADC. In 2014, CalRecycle adopted legislation to eliminate the use of green waste as Alternative Daily Cover (ADC) to promote recycling of the material. Periodically, the issue of using MRF fines as ADC arises in legislative and regulatory venues, although there has been no legislation introduced on this subject since 2003.

ACTION: Oppose regulations or legislation which would restrict MRFs from using fines as ADC or that impose a fee to discourage the use of fines. Closely track and evaluate any regulations or legislation which would modify ADC standards for MRFs.

∰

ISSUE:ALTERNATIVEANDEMERGINGTECHNOLOGY

WPWMA is currently undergoing a master planning process to expand its facilities to accommodate future growth and in response to new regulatory requirements, such as the expanded organic waste diversion mandates. Some of the key objectives of the planning process include providing access at the site for new and emerging solid waste conversion technology pilot studies and partnering with a local university to promote research and development opportunities.

ACTION: Support legislation which would provide financial and other incentives that support emerging technology development while minimizing regulatory and legal barriers to implementing such technologies.

∰

ISSUE:EXTENDEDPRODUCERRESPONSIBILITY(EPR)

EPR legislation shifts the financial burden of managing hazardous and difficult to manage products from local government to the producers of those products. The costs for WPWMA to manage these products is significant. In 2010, the WPWMA Board adopted a resolution in support of EPR.

Previous legislation has been adopted requiring producer responsibility for paint, carpet, and mattresses. WPWMA supported legislation last year to make key improvements to the state’s carpet recycling program. Additionally, several years of legislative debate over the application of EPR to home-generated sharps and pharmaceuticals, and the implementation of EPR ordinances in several California Counties, has resulted in the passage of SB 212 (Jackson). That legislation, among other things, requires sharps manufacturers to reimburse local governments for the cost of disposal for sharps.

51


ACTION: Support EPR and other Product Stewardship legislation, including legislation to improve existing EPR programs. Monitor and engage in the development of SB 212 regulations. Only support landfill bans when an appropriately funded alternative method of handling the material (e.g. EPR) has been put in place. Oppose landfill bans that are not substantiated by scientific studies showing that landfilling the material poses a danger to human or environmental health. Engage in discussions leading up to legislative action on lithium ion batteries in consumer products.

∰

ISSUE:INCENTIVESFORWASTECONVERSIONTECHNOLOGY

Regulatory hurdles and political opposition make development of Conversion Technology (CT) projects challenging, despite the fact that they reduce dependence on landfills and create a clean, domestic, fuel source for renewable energy. They are often not pursued in California because they do not clearly qualify for AB 939 diversion credits, or due to their cost or their inability to qualify for financial incentives. The law is currently unclear how AD and gasification should be permitted and regulated, and whether they qualify for diversion credits. However, anaerobic digestion and gasification are desirable options that could divert waste, provide green jobs, and generate clean, renewable energy.

ACTION: Seek and support legislation which would provide financial and other incentives that support CT development while minimizing regulatory and legal barriers to creating such facilities. Evaluate the full spectrum of benefits that CT could provide WPWMA.

∰

ISSUE:MRFPERFORMANCESTANDARDS

AB 341 (2011) and AB 1826 (2014), established, among other things, mandatory commercial recycling programs requiring businesses to either source separate recyclables / organics or subscribe to mixed waste processing services. AB 341 requires mixed waste processing to “yield results similar to source separation”. In order to enforce this section of the law, CalRecycle is attempting to define what it means for those facilities to “yield results similar to source separation”. This may result in the establishment of minimum standards for MRF performance so compliance with these laws can be evaluated. While this may be the case, there has been no activity on this item within the context of AB 341 discussions at CalRecycle since 2012. However, this issue also arose in the context of SB 1383 regulation development. The SB 1383 draft regulations would also require a facility that receives mixed waste to achieve an organic waste recovery rate of 50% by 2022 and 75% by 2025. WPWMA submitted comments responding to that concept and will continue to engage on this issue with CalRecycle as the SB 1383 regulations are finalized this year.

ACTION: Closely monitor CalRecycle efforts to define “comparable to source separation” for MRFs. Strenuously oppose any proposal which would impose infeasible performance standards and/or do not consider local conditions, such as a jurisdiction's diversion rate, the local waste stream, other recycling programs in place, and available materials markets.

∰

52


ISSUE:SOLIDWASTEREGULATIONANDLEGISLATION

AB 341 required CalRecycle to develop and submit a report to the legislature that provides strategies to achieve the state’s policy goal of 75% recycling. The CalRecycle report was released in 2015 and contains key strategies and focus areas that could find their way into both regulatory and legislative proposals in the near future. The strategies include, among other things, phasing organics out of landfills, expanding recycling infrastructure, exploring approaches to supplement State funding, and measuring commercial recycling progress.

The costs to comply with new mandates as a result of these proposals (e.g. AB 1826 and SB 1383) will be significant and most likely passed on to customers in the form of increased tipping fees. Prior to the State implementing new diversion mandates, comprehensive evaluations should be conducted to determine the potential environmental and economic effects, technologies and markets available, and producer responsibility necessary to accomplish these goals and stakeholder involvement should be mandatory.

ACTION: Oppose any new solid waste and recycling related mandates that do not include, or are not substantiated by, sound science, demonstrated need, cost/benefit/feasibility studies, a funding mechanism (other than tipping fees or garbage rates), consideration of local conditions and current compliance, and/or EPR. Oppose fee increases that do not directly benefit ratepayers. Oppose new measures to achieve 75% statewide diversion until measures already required have been fully implemented and evaluated. Oppose any legislation or regulations that prohibit the consideration of beneficial reuse as diversion under the state’s 75% diversion goal.

∰

ISSUE:GREENHOUSEGAS(GHG)REGULATIONONSOLIDWASTE

AB 32 (2006) and SB 32 (2016) established broad authority for the California Air Resources Board (ARB) to regulate greenhouse gas emissions in the State of California. Subsequent actions that impacted WPWMA included expanded landfill methane capture requirements (2006 “early action measures”), mandatory commercial organics recycling (2013 updated Scoping Plan, resulting in AB 1826, 2014), proposed ARB Short Lived Climate Pollutant Draft Strategy (2015), and subsequent legislation to authorize regulatory action by the ARB on Short-Lived Climate Pollutants (SB 1383, 2016). SB 1383, among other things, established targets to achieve a 50% reduction in the level of statewide disposal of organic waste from the 2014 level by 2020 and a 75% reduction by 2025. The bill also established a target of not less than 20% of currently disposed edible food to be recovered for human consumption by 2025. Solid waste operations should expect to be targeted for additional emission controls as the Scoping Plan Update and SLCP regulations take shape. A new scoping plan was adopted at the end of 2017.

Moving forward, key recommended actions in the Scoping Plan Update that will impact WPWMA are the following:

1. Eliminate Disposal of Organics in Landfills – This effort is intended to reduce emissions from landfills and anticipates accomplishing this either through legislation (mandatory organics recycling), direct regulation (a disposal ban), or adding landfills to the cap and trade program (make it expensive).

53


2. DevelopEmissionReductionStrategiesforRecycling– This appears to mean that the ARB would like to identify new emission reduction strategies for existing recycling facilities.

3. Resolve Permitting Issues – The ARB will lead a process of identifying and recommending actions to address cross-California agency and federal permitting and siting challenges associated with composting and anaerobic digestion.

ACTION: Oppose infeasible or unreasonable facility standards. Oppose additional emission reduction requirements on solid waste facilities until evaluation has been done on the effectiveness of recently implemented mandates such as the Early Action Landfill Methane Emission Reduction Measure and the Mandatory Commercial Recycling regulations. Oppose ARB using AB 32, SB 32, and SB 1383 authority to mandate waste diversion programs. Oppose defining landfills and waste-to-energy facilities as covered entities subject to the Cap and Trade Program. Participate in the rulemaking processes for any new proposed regulation which would affect WPWMA facilities. Support efforts to streamline permitting for composting, gasification and anaerobic digestion in a manner that benefits WPWMA.

∰

ISSUE:GREENHOUSEGASCAPANDTRADEFUNDING

Greenhouse Gas Cap and Trade funding from the sale of carbon credits could be utilized by the WPWMA to invest in waste to energy technologies and projects to reduce emissions from landfill gas. The Legislature and Governor must annually appropriate revenues from the Greenhouse Gas (GHG) Reduction Fund on projects that will, or have the potential to, reduce GHG emissions. In the final 2019-20, State Budget, $25M was allocated to the Department of Resources, Recycling and Recovery (CalRecycle) for waste diversion and GHG reduction financial assistance. In the Governor’s Proposed 2020-21 State Budget, $15M from this fund is proposed to be allocated to CalRecycle, negotiations will continue until August.

CalRecycle estimated the statewide net cost of SB 1383 (Lara, 2016) is between $4.9 to $12.8 billion. However, to date, the department has only received $161 million from the Greenhouse Gas (GHG) Reduction Fund, with only $90 million going towards SB 1383 related grant programs.

ACTION: Continue to support distribution of Greenhouse Gas Reduction Fund Revenues, such as AB 32 Cap and Trade Program auction proceeds to waste to energy projects, organics infrastructure, and other projects at landfills that reduce emissions consistent with the goals of AB 32. Specifically support a reasonable allocation of GGRF dollars, commensurate to ambitious, state-imposed mandates and regulations on solid waste facilities. Continue to support efforts to appropriate funds from the GGRF specifically to enhance organics infrastructure.

∰

ISSUE: CEQA AND ESSENTIAL PUBLIC SERVICES / CEQA EXEMPTION FOR WASTECONVERSIONPROJECTS

Essential Public Services, such as landfills and wastewater treatment plants, are often negatively impacted from incompatible and/or encroaching development. In many cases, such

54


facilities were developed in rural or industrial areas, but now face encroaching development and the potential for complaints and lawsuits. Periodically legislation is introduced (but has not passed) that would protect essential public services (e.g. requiring certain disclosures in an EIR or protecting landfills from nuisance lawsuits if they are established and in compliance with existing laws and permits) or streamline CEQA review for beneficial projects (such as exempting certain conversion technology projects from CEQA).

ACTION: Support legislation that would protect essential public services and support renewable energy. Specifically support legislation requiring a Lead Agency to disclose in an EIR the potential impacts on people that may result from locating a proposed project near, or attracting people to, Essential Public Services such as solid waste management facilities.

∰

ISSUE:AIRPORTINTERFACE

WPWMA is situated in proximity to the Lincoln airport. The Federal Aviation Administration has adopted rules and regulations regarding the siting and operation of landfills in proximity to airports.

ACTION: Closely monitor actions taken by the FAA regarding landfill operations within the proximity of the airport. Engage the WPWMA delegation as needed to seek resolution and clarity on existing and future proposed regulations and rules.

∰

ISSUE:VEHICLEOPERATIONSONSITE

Several large diesel vehicles and equipment operate on the WPWMA facility, moving between the indoor sorting facility and the landfill. The vehicle emissions and activities fall under California Air Resources Board (CARB) diesel rules for on-road and off-road vehicles. The requirements to reduce emissions from these vehicles result in significant economic burdens on the WPWMA’s facility operator.

Current CARB requirements require phase out of vehicles based on age and emissions. The 2017 CARB Scoping Plan includes existing, proposed and potential additional measures that aim to further decrease diesel fuel consumption and increase zero-emission vehicle use in the state, among other things. Medium and heavy duty vehicles will be targeted in the State’s Mobile Source Strategy. Should WPWMA have to replace and purchase additional vehicles, the cost impact could be significant.

ACTION: Seek informal feedback from the Air Resources Board and other relevant agencies about the applicability of regulations for trucks that operate exclusively on site, and evaluate an appropriate course to mitigate any significant new expenses that may be tied to the revised regulations. Engage with ARB staff to determine the forthcoming enforcement timeline and potential impacts on WPWMA. Monitor any future actions by the ARB to revise the PERP emission standards.

∰

55


ISSUE:BIOMASS

The WPWMA’s MRF operator relies on a local biomass facility to process the majority of the wood waste received at the MRF. In the 2014 session, a bill was introduced which would have established statutory preference for geothermal facilities over any other kind of renewable energy facilities, which would have negatively impacted biomass facilities. In addition, as the State grapples with an immense tree mortality issue, and several biomass facilities going off-line, there is increased pressure on those remaining biomass facilities to take trees from high hazard areas, thereby disrupting the traditional biomass stream of yard waste which WPWMA currently manages with the utilization of a biomass facility.

ACTION: Support legislation that enhances biomass capacity in California and improves the economic viability of those operations. Oppose any legislation which would disrupt relationships that WPWMA has with renewable energy facilities that assist in achieving landfill diversion.

∰

ISSUE:MARKETDEVELOPMENT

As the State continues to set ambitious recycling goals and impose burdensome requirements on solid waste facilities, the need for State assistance is increasing. An estimated $2-3 billion in infrastructure is needed throughout the State to meet the organics recycling goals of SB 1383 (Lara, 2016). Additionally, heightened restrictions, including bans, on international export markets imports of recyclable materials, as were recently imposed by China, as well as other foreign countries. These actions mean fewer markets available for recovered recyclable materials. If facilities do not have markets to send materials, those materials are not recycled. In addition to a need for capital investment from the State, assistance to ease permitting processes for facilities will be necessary to meet the State’s goals. And, idealistic timelines without good faith effort provisions pose significant challenges for facilities; enforcement actions against facilities unable to fully comply within infeasible timelines will only further deplete those facilities’ limited resources.

ACTION: Support reasonable legislation that expands and incentivizes in-state processing and recycling markets. Support State assistance in the form of capital investment in infrastructure and assistance with permitting processes. Support any legislation to acknowledge good faith efforts. Support legislation to encourage source reduction, EPR, and green design.

∰

ISSUE:RegulatoryReliefinResponsetoCOVID‐19Pandemic

The COVID-19 global pandemic has had a severe impact to public health, worker safety and to the economy in California. On March 19, 2020, Governor Newsom’s Executive Order N-33-20, deemed the solid waste and recycling industry services as part of the essential infrastructure. This has meant shifting staff and duties away from normal operations and developing physical distancing measures and implementing stay-at-home orders to keep staff safe and healthy.

56


Cites, counties, and special districts have devoted resources to fight COVID-19 and some are now concerned with the ability to meet specific statutory obligations during the COVID-19 pandemic.

In response, local governments and associations, including the Solid Waste Association of North America (SWANA) Legislative Task Force, submitted a coalition letter requesting state officials to grant limited grace periods and temporary relief from specific requirements related to solid waste and recycling. The requests include temporary relief from existing diversion and commercial recycling requirements, as well as delaying implementation of new organics diversion mandates pursuant to SB 1383 (Lara, 2016).

ACTION: Support efforts that provide temporary flexibility and regulatory relief due to COVID-19.

57


58




SUBJECT: FISCAL YEAR 2020/21 PRELIMINARY BUDGETS

RECOMMENDED ACTION:

Approve the Fiscal Year 2020/21 Preliminary Budgets for the Operating Fund, Closure/Postclosure Fund, Self-Insurance Fund and Odor Management Fund as presented in Exhibits A, B and C.

BACKGROUND:

The WPWMA currently operates within three budgets:

1. The Closure/Postclosure Fund, whose purpose is to ensure adequate funding for final closure and postclosure monitoring and maintenance of the Western Regional Sanitary Landfill.

2. The Self Insurance Fund, which was established to cover expenses from claims, lawsuits and damage assessments against the WPWMA.

3. The Operating Fund, which covers all other expenses of the WPWMA, including staff costs and the operating agreements with Nortech Waste, LLC and Nortech Landfill, Inc.

At the December 9, 2019 meeting, your Board approved a Memorandum of Understanding (MOU) with the County of Placer related to the Sunset Area Plan/Placer Ranch Specific Plan. An element of the MOU includes future funding from the County to the WPWMA intended to partially offset odor mitigation capital and operating expenses incurred by the WPWMA. To ensure that these future funds are clearly identified and used towards odor mitigation efforts and to provide a greater level of transparency related to costs incurred by the WPWMA to manage and mitigate odors, staff recommend the Board approve the establishment of a fourth budget entitled the Odor Management Fund. In addition to the future funding from the County, staff recommend annual tipping fees contributions to this new budget.

The attached Preliminary Budgets (Exhibits A through C) are based on current estimates of FY 2019/20 fund balances. Staff will request Board approval of Final Budgets after the close of Fiscal Year 2019/20.

The Preliminary Budgets were developed based on the Financial Forecast (Exhibit D) and the following key assumptions:

1. Tipping Fee Structure – At the February 13, 2020 meeting, your Board approved an increase to tipping fees effective July 1, 2020. Exhibit E summarizes this revised tip fee structure. Based on the projected tonnages for FY 2020/21, staff estimates the fee increase will result in approximately $1,641,851 in additional revenue.

59

WPWMA BOARD OF DIRECTORS FISCAL YEAR 2020/21 PRELIMINARY BUDGETS MAY 21, 2020 PAGE 2

2. Tonnage – 473,215 total tons accepted, composed of mixed solid waste, sludge, green waste, food waste, construction and demolition debris, wood waste and inerts.

Staff estimates that the recent impact to the economy due to the COVID-19 pandemic, including the temporary change in the WPWMA’s acceptance policies, will result in a slight decrease in tonnage received at the facility. After taking into account tonnages associated with one-time projects and weather-related fluctuations and the impacts of the WPWMA’s temporary acceptance policies, staff estimates the WPWMA will realize an overall decline in waste tonnages of 1.22% compared to the quantities projected through the remainder of FY 2019/20.

3. Construction Projects – $1,540,500 budgeted as shown at the bottom of the second page of Exhibit A. This figure includes funding for:

a. Refurbishment of the facility truck scales;

b. Upgrade and expansion of the CCTV system;

c. Groundwater pump and treat evaluation system;

d. Excavation of soils in preparation for the Module 6 liner system; and

e. Upgrade of the existing leachate force main and installation of electrical infrastructure around the perimeter of the landfill.

4. Reserve Accounts – Contribution to reserves totaling $2,192,022.

Total fund balances and reserves at the end of the current and upcoming fiscal years are projected as follows:

FY 2019/20 FY 2020/21

Operating Fund Budget $23,569,679 $24,956,771

Closure/Postclosure Fund Budget $13,707,121 $14,213,311

Self-Insurance Fund Budget $7,207,510 $7,401,842

Odor Management Fund Budget $0 $104,408

Total Reserves $44,484,310 $46,676,332

Board approval of the FY 2020/21 Preliminary Budgets is required before the Placer County Auditor will release payment for invoices received after June 30, 2020.


Approval of the Preliminary Budgets does not constitute a "Project" under the California Environmental Quality Act, per CEQA Guidelines Section 15378(b)(5), because your Board does not fully commit to any individual project when approving the budgets. Appropriate environmental review will be conducted prior to your Board’s approval of individual projects.

60

WPWMA BOARD OF DIRECTORS FISCAL YEAR 2020/21 PRELIMINARY BUDGETS MAY 21, 2020 PAGE 3

FISCAL IMPACT:

The Preliminary Budgets include sufficient funding to generate retained earnings for future use. Cancellation of reserves, other than the effective transfer of funds from the Closure/Postclosure General Reserve to the Landfill Closure/Postclosure Liability account, is not anticipated.

ATTACHMENTS: EXHIBIT A – OPERATING FUND PRELIMINARY BUDGET EXHIBIT B – CLOSURE FUND AND SELF-INSURANCE FUND PRELIMINARY BUDGETS EXHIBIT C – ODOR MANAGEMENT FUND PRELIMINARY BUDGET EXHIBIT D – FINANCIAL FORECAST EXHIBIT E – TIPPING FEE SUMMARY

61

EXHIBIT A

OPERATIONS FUND 2019/20 2019/20 2020/21 *Final Budget Estimated Prelim. Budget Notes

SOURCES OF FUNDS

Retained Earnings 4,636,828 4,636,828 2,856,752

42010: Investment Income 200,082 553,572 412,46942030: Rents and Concessions 98,543 101,452 106,48944270: State Aid - Other Programs 0 78,135 046240: Road and Street Services 29,081 29,335 29,00046250: Solid Waste Disposal 27,506,189 27,558,921 28,838,19446380: Interest Income - Loan Repayments 21,968 21,968 048030: Miscellaneous

Energy royalties 202,223 206,666 245,119Other Miscellaneous Revenue 7,500 16,544 7,500

Reserve CancellationsFixed Asset Acquisition 0 0 0Road Improvement 0 0 0HHW Closure 0 0 0Imprest Cash 0 0 0Contingencies 379,959 0 0

TOTAL SOURCES OF FUNDS 33,082,374 33,203,421 32,495,523

USES OF FUNDS

Ongoing Operations 29,712,808 27,706,685 29,567,930Major Construction Projects 339,804 2,316,788 1,540,500Land Acquisition 0 0 0

Contribution to ReservesFixed Asset Acquisition 0 293,180 1,357,397Road Improvement 29,081 29,335 29,000HHW Closure 681 681 695Imprest Cash 0 0 0Contingencies 0 0 0

Auditor's Year End Adjustment 0 0 0

Retained Earnings 0 2,856,752 0

TOTAL USES OF FUNDS 33,082,374 33,203,420 32,495,522

OPERATING FUND RESERVE BALANCES

Fixed Asset Acquisition 10,925,945 11,219,125 12,576,522Road Improvement 57,362 57,616 86,616HHW Closure 34,910 34,910 35,605Imprest Cash 8,600 8,600 8,600Contingencies 11,869,469 12,249,428 12,249,428

TOTAL OPERATING FUND RESERVE BALANCES 22,896,286 23,569,679 24,956,771

62

APPROPRIATIONS BY ACCOUNT 2019/20 2019/20 2020/21Final Budget Estimated Prelim. Budget Notes

52030: Clothing and Personal 2,000 2,200 2,50052040: Communication Services Expense 31,101 33,563 40,00052050: Food 750 1,250 1,45052060: Household Expense 1,000 1,078 1,00052080: Insurance 136,539 132,000 138,60052140: Parts 500 3,739 3,90052160: Maintenance 78,106 87,866 33,02052170: Fuels and Lubricants 0 43 5052180: Materials - Buildings & Improvements 250 50 25052240: Professional / Membership Dues 837 3,504 4,00052250: Services and Supplies 200 15 20052260: Misc Expense 6,000 3,259 4,90052270: Department Cash Shortage 300 57 30052320: Printing 17,000 10,849 10,00052330: Other Supplies 5,000 18,244 19,80052340: Postage 2,000 2,253 2,30052360: Prof. & Special Svcs - General 3,910,439 1,988,729 3,161,61152370: Prof. & Special Svcs - Legal 75,000 55,539 75,00052380: Prof. & Special Svcs - Tech., Eng. & Env. 24,136,147 24,089,078 23,901,91052390: Prof. & Special Svcs - County 25,000 25,000 25,50052400: Prof. & Special Svcs - IT 1,500 73,908 75,38652440: Rents and Leases - Equipment 3,465 0 15052450: Rents and Leases - Buildings & Improvements 1,474 599 15052460: Small Tools & Instruments 500 0 15052480: PC Acquisition 27,000 26,371 5,00052510: Director's Fees 6,000 5,700 6,00052570: Advertising 54,660 39,107 35,00052580: Special Department Expense 10,000 7,467 1,75052790: Transportation and Travel 35,000 5,093 31,00052800: Utilities 709,942 605,416 1,556,42453190: Taxes and Assessments 500,097 484,708 490,63053390: Transfer Out A-87 Costs 0 0 054410: Land 0 0 054430: Buildings and Improvements 442,000 394,627 054450: Equipment 0 12,743 100,00054470: Infrastructure 1,048,386 135,000 1,380,50054480: Land Improvements 1,774,418 1,774,418 055510: Operating Transfer Out 0 0 055550: Transfer to County for Road Improvements 0 0 059000: Appropriation for Contingencies 10,000 0 0

TOTAL APPROPRIATIONS 33,052,612 30,023,473 31,108,430

SUMMARY OF APPROPRIATIONSRelated to Ongoing Operations 29,712,808 27,706,685 29,567,930Related to Construction Projects 3,339,804 2,316,788 1,540,500Related to Land Acquisition 0 0 0

63

SUB-ACCOUNT DETAIL 2019/20 2019/20 2020/21Final Budget Estimated Prelim. Budget Notes

52360: Prof. & Special Svcs - General2810: Financial Services 54,615 35,115 86,9832880: Administration 165,000 461 4702900: Audit Costs 20,000 20,000 20,0002920: Aerial Surveys and Mapping Services 10,500 28,700 33,6002930: Architectural Services, Professional 10,000 13,840 02940: Consulting Services 422,624 336,716 689,000

2950: Professional Engineering Services 3,116,108 1,479,195 2,268,910

3020: Armored Car Services 21,593 16,276 22,647

3045: Temporary Worker Services 90,000 58,426 40,000

52380: Prof. & Special Svcs - Tech., Eng. & Env.3140: Building Maintenance, Installation & Repairs 26,757 25,000 25,500

3180: MRF Operations 18,053,640 18,008,589 17,790,614

3190: Landfill Operations 2,635,378 2,635,116 2,595,753

3280: Security, Fire, Safety and Emergency Services 252,708 252,708 259,026

3320: Envrionmental and Ecological Services 3,167,664 3,167,664 3,231,017

3322: Hazardous Waste (Temporary HHW events) 0 56,933 77,331

53190: Taxes and Assessments4870: Taxes and Assessments - Disposal Taxes 414,491 410,645 410,036

4870: Taxes and Assessments - Property Taxes 606 577 594

4870: Taxes and Assessments - Permit Fees 85,000 73,487 80,000

MAJOR CONSTRUCTION PROJECTS

54430: Buildings and ImprovementsBuilding Expansions, Retrofits and Modifications 442,000 394,627

54450: EquipmentMRF Equipment 100,000 Scale refurbishmentLFG Equipment 12,743Security Systems 75,000 60,000 CCTV Upgrades and Expansion

54470: InfrastructurePower 400,000 565,000 Electrical at leachate pump stationsWater 475,500 Groundwater pump and treatLeachate/Sewage 298,386 135,000 240,000 Leachate force mainLFG Wells and Piping 350,000LFG Monitoring SystemsWater Monitoring Systems 100,000

54480: Land ImprovementsLiner Systems 1,774,418 1,774,418 0Cover Systems 0Compost Pads and PondsOther 1,350,000 Module 6 excavation

MAJOR CONSTRUCTION PROJECTS TOTAL 3,339,804 2,316,788 1,540,500

64

2019/20 2019/20 2020/21TIPPING FEE STRUCTURE Final Budget Estimated Prelim. Budget Notes

Tipping Fee ($ per ton)MSW 70.00 70.00 73.00C&D 48.00 48.00 51.00Sludge and Mixed Inerts 35.00 35.00 39.00Green Waste 38.00 38.00 42.00Wood Waste 27.00 27.00 29.00Food Waste 42.00 42.00 46.50Inerts 18.00 18.00 20.00H2O Sludge 8.00 8.00 9.00Roseville Recyclables 30.00 48.00 188.00Bulk Tires 175.00 190.00 200.00

Tipping Fee ($ per cubic yard)MSW 15.00 15.00 16.00C&D 15.00 15.00 16.00Green Waste 8.00 8.00 9.00Wood Waste 8.00 8.00 9.00Inerts 15.00 15.00 18.00

Tipping Fee ($ per unit)Appliances 6.00 6.00 8.00CFC Devices 32.00 32.00 37.00Car Tires 3.25 3.25 3.50Truck Tires 19.00 19.00 20.00Tractor Tires 76.00 76.00 80.00

MATERIAL QUANTITIESMSW

Tonnage 248,430 245,273 246,678Yardage 102,933 96,495 96,013

C&DTonnage 85,332 88,256 87,815Yardage 35,393 42,073 41,863

Sludge and Mixed Inerts 22,351 22,995 22,995Green Waste

Tonnage 49,214 52,207 51,946Yardage 38,343 37,308 37,121

Wood WasteTonnage 1,962 2,165 2,062Yardage 6,213 5,247 5,116

Food Waste 7,181 6,448 3,082Inerts

Tonnage 23,320 26,968 24,392Yardage 17,254 15,339 15,262

Appliances 9,216 9,489 9,489CFC Devices 3,889 3,801 3,801Tires

Car 6,832 6,046 6,046Truck 106 88 88Tractor 43 21 21Bulk Tonnage 34 58 33

H2O Sludge 1,166 1,133 1,133Treated Wood Waste 0 343 34

65

EXHIBIT B

CLOSURE / POSTCLOSURE FUND 2019/20 2019/20 2020/21Final Budget Estimated Prelim. Budget Notes

SOURCES OF FUNDS

Retained Earnings 374,020 (210,973) 0

42010: Investment Income 102,704 193,807 209,71946250: Solid Waste Disposal 300,843 298,930 296,471General Reserve Cancellations 0 112,932 100,018

TOTAL SOURCES OF FUNDS 777,567 394,696 606,208

USES OF FUNDS

Closure/Postclosure Liability Adjustment 343,546 389,926 606,208Contribuition to General Reserves 434,021 4,770 0Contribution to Operating Fund 0 0 0

Retained Earnings 0 0 0

TOTAL USES OF FUNDS 777,567 394,696 606,208

CLOSURE/POSTCLOSURE FUND BALANCE

Closure/Postclosure Liability 12,755,953 12,802,333 13,408,541General Reserves 1,446,972 904,788 804,770

TOTAL CLOSURE/POSTCLOSURE FUND BALANCE 14,202,925 13,707,121 14,213,311

SELF INSURANCE FUND

SOURCES OF FUNDS

Retained Earnings 89,827 89,827 134,057

42010: Investment Income 54,796 132,959 110,27546250: Solid Waste Disposal 0 0 0Future Occurances Reserve Cancellations 0 0 0

TOTAL SOURCES OF FUNDS 144,623 222,786 244,332

USES OF FUNDS

52360: Prof. & Special Svcs - General 0 0 0

52370: Prof. & Special Svcs - Legal 100,000 44,106 50,000

52380: Prof. & Special Svcs - Tech., Eng. & Env. 0 0 0

52390: Prof. & Special Svcs - County 053140: Judgements and Damages 0 0 0

Contribuition to Reserve for Future Occurances 44,623 44,623 194,332

Retained Earnings 0 134,057 0

TOTAL USES OF FUNDS 144,623 88,729 244,332

SELF INSURANCE RESERVE BALANCEReserve for Future Occurrences 7,207,510 7,207,510 7,401,842

66

EXHBIT C

ODOR MANAGEMENT FUND 2019/20 2019/20 2020/21Final Budget Estimated Prelim. Budget Notes

SOURCES OF FUNDS


42010: Investment Income 046250: Solid Waste Disposal 0 0 209,22249060: Contributions from Other Funds

PRSP towards Capital Improvements 0 0 0PRSP towards Operations and Maintenance 0 0 0SAP towards Capital Improvements 0 0 0SAP towards Operations and Maintenance 0 0 0

Odor Management Reserve Cancellations 0 0 0

TOTAL SOURCES OF FUNDS 0 0 209,222

USES OF FUNDS

Ongoing Operations 0 0 104,814Major Construction Projects 0 0 0

Contribution to ReservesSAP/PRSP Capital and Operating 0 0 0Non SAP/PRSP Capital and Operating 0 0 104,408

Auditor's Year End Adjustment 0 0 0


TOTAL USES OF FUNDS 0 0 209,222

ODOR MANAGEMENT FUND RESERVE BALANCES

SAP/PRSP Capital and Operating 0 0 0Non SAP/PRSP Capital and Operating 0 0 104,408

TOTAL ODOR MANAGEMENT FUND RESERVE BALANCES 0 0 104,408APPROPRIATIONS BY ACCOUNT

52050: Food 0 0 5052140: Parts 0 0 10052160: Maintenance 0 0 94,41452260: Misc Expense 0 0 10052320: Printing 0 0 2,50052330: Other Supplies 0 0 20052340: Postage 0 0 20052360: Prof. & Special Svcs - General 0 0 052570: Advertising 0 0 5,00052580: Special Department Expense 0 0 25054430: Buildings and Improvements 0 0 054450: Equipment 0 0 054470: Infrastructure 0 0 054480: Land Improvements 0 0 059000: Appropriation for Contingencies 0 0 2,000

TOTAL APPROPRIATIONS 0 0 104,814

67

EXHIBIT D2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

OPERATIONS FUND

SOURCES OF FUNDS

Retained Earnings 4,636,828 2,856,752 0 0 0 0

42010: Investment Income 553,572 412,469 436,743 346,537 347,057 352,10642030: Rents and Concessions 101,452 106,489 108,227 95,463 97,272 96,61544270: State Aid - Other Programs 78,135 0 0 0 0 046240: Road and Street Services 29,335 29,000 28,966 28,978 29,030 29,16346250: Solid Waste Disposal 27,558,921 28,838,194 29,514,573 29,998,779 30,637,582 31,342,87846380: Interest Income - Loan Repayments 21,968 0 0 0 0 048030: Miscellaneous

Energy royalties 206,666 245,119 245,119 0 0 0Other Miscellaneous Revenue 16,544 7,500 7,500 7,500 7,500 7,500

Reserve CancellationsFixed Asset Acquisition 0 0 0 0 0 0Road Improvement 0 0 0 0 0 0HHW Closure 0 0 0 0 0 0Imprest Cash 0 0 0 0 0 0Contingencies 0 0 0 6,243,190 0 0

TOTAL SOURCES OF FUNDS 33,203,421 32,495,523 30,341,128 36,720,447 31,118,441 31,828,262

USES OF FUNDS

Ongoing Operations 27,706,685 29,567,930 28,032,593 28,696,239 29,354,110 30,103,159Major Construction Projects 2,316,788 1,540,500 1,220,000 7,994,508 1,475,800 0Land Acquisition 0 0 0 0 0 0

Contribution to ReservesFixed Asset Acquisition 293,180 1,357,397 1,058,861 0 258,763 1,695,189Road Improvement 29,335 29,000 28,966 28,978 29,030 29,163HHW Closure 681 695 709 723 737 752Imprest Cash 0 0 0 0 0 0Contingencies 0 0 0 0 0 0

Auditor's Year End Adjustment 0 0 0 0 0 0

Retained Earnings 2,856,752 0 0 0 0 0

TOTAL USES OF FUNDS 33,203,420 32,495,522 30,341,128 36,720,447 31,118,440 31,828,263

OPERATING FUND RESERVE BALANCES

Fixed Asset Acquisition 11,219,125 12,576,522 13,635,383 13,635,383 13,894,146 15,589,335Road Improvement 57,616 86,616 115,581 144,559 173,589 202,752HHW Closure 34,910 35,605 36,314 37,037 37,774 38,526Imprest Cash 8,600 8,600 8,600 8,600 8,600 8,600Contingencies 12,249,428 12,249,428 12,249,428 6,006,238 6,006,238 6,006,238

TOTAL OPERATING FUND RESERVE BALANCES 23,569,679 24,956,771 26,045,306 19,831,817 20,120,347 21,845,451

68

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25APPROPRIATIONS BY ACCOUNT

52030: Clothing and Personal 2,200 2,500 2,550 2,601 2,653 2,70652040: Communication Services Expense 33,563 40,000 40,800 41,616 42,448 43,29752050: Food 1,250 1,450 1,479 1,509 1,539 1,57052060: Household Expense 1,078 1,000 1,020 1,040 1,061 1,08252080: Insurance 132,000 138,600 145,530 152,806 160,447 168,46952140: Parts 3,739 3,900 263 263 263 26352160: Maintenance 87,866 33,020 33,448 33,885 34,331 34,78652170: Fuels and Lubricants 43 50 51 52 53 5452180: Materials - Buildings & Improvements 50 250 255 260 265 27152240: Professional / Membership Dues 3,504 4,000 4,080 4,162 4,245 4,33052250: Services and Supplies 15 200 204 208 212 21652260: Misc Expense 3,259 4,900 4,998 5,098 5,200 5,30452270: Department Cash Shortage 57 300 300 300 300 30052320: Printing 10,849 10,000 10,200 10,404 10,612 10,82452330: Other Supplies 18,244 19,800 20,196 20,600 21,012 21,43252340: Postage 2,253 2,300 2,346 2,393 2,441 2,49052360: Prof. & Special Svcs - General 1,988,729 3,161,611 2,286,630 2,332,220 2,378,905 2,426,59252370: Prof. & Special Svcs - Legal 55,539 75,000 76,500 78,030 79,591 81,18252380: Prof. & Special Svcs - Tech., Eng. & Env. 24,089,078 23,901,910 24,463,011 25,067,450 25,657,043 26,335,23452390: Prof. & Special Svcs - County 25,000 25,500 26,010 26,530 27,061 27,60252400: Prof. & Special Svcs - IT 73,908 75,386 76,893 78,431 80,000 81,60052440: Rents and Leases - Equipment 0 150 153 156 159 16252450: Rents and Leases - Buildings & Improvements 599 150 153 156 159 16252460: Small Tools & Instruments 0 150 153 156 159 16252480: PC Acquisition 26,371 5,000 5,100 5,202 5,306 5,41252510: Director's Fees 5,700 6,000 6,000 6,000 6,000 6,00052570: Advertising 39,107 35,000 35,700 36,414 37,142 37,88552580: Special Department Expense 7,467 1,750 1,785 1,821 1,857 1,89452790: Transportation and Travel 5,093 31,000 31,620 32,252 32,897 33,55552800: Utilities 605,416 1,556,424 266,202 271,526 276,956 282,49653190: Taxes and Assessments 484,708 490,630 488,963 482,697 483,792 485,82553390: Transfer Out A-87 Costs 0 0 0 0 0 054410: Land 0 0 0 0 0 054430: Buildings and Improvements 394,627 0 0 0 0 054450: Equipment 12,743 100,000 0 0 0 054470: Infrastructure 135,000 1,380,500 1,220,000 0 0 054480: Land Improvements 1,774,418 0 0 7,994,508 1,475,800 055510: Operating Transfer Out 0 0 0 0 0 055550: Transfer to County for Road Improvements 0 0 0 0 0 059000: Appropriation for Contingencies 0 0 0 0 0 0

TOTAL APPROPRIATIONS 30,023,473 31,108,430 29,252,593 36,690,747 30,829,910 30,103,159

SUMMARY OF APPROPRIATIONSRelated to Ongoing Operations 27,706,685 29,567,930 28,032,593 28,696,239 29,354,110 30,103,159Related to Construction Projects 2,316,788 1,540,500 1,220,000 7,994,508 1,475,800 0Related to Land Acquisition 0 0 0 0 0 0

69

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25SUB-ACCOUNT DETAIL

52360: Prof. & Special Svcs - General2810: Financial Services 35,115 86,983 37,558 38,167 38,970 39,8592880: Administration 461 470 480 489 499 5092900: Audit Costs 20,000 20,000 20,400 20,808 21,224 21,6492920: Aerial Surveys and Mapping Services 28,700 33,600 18,564 18,935 19,314 19,7002930: Architectural Services, Professional 13,840 0 0 0 0 02940: Consulting Services 336,716 689,000 600,780 612,796 625,052 637,553

2950: Professional Engineering Services 1,479,195 2,268,910 1,694,948 1,650,847 1,607,364 1,639,511

3020: Armored Car Services 16,276 22,647 23,100 23,562 24,033 24,514

3045: Temporary Worker Services 58,426 40,000 40,800 41,616 42,448 43,297

52380: Prof. & Special Svcs - Tech., Eng. & Env.3140: Building Maintenance, Installation & Repairs 25,000 25,500 26,010 26,530 27,061 27,602

3180: MRF Operations 18,008,589 17,790,614 18,327,133 19,008,084 19,527,400 20,131,2863190: Landfill Operations 2,635,116 2,595,753 2,613,349 2,513,524 2,560,232 2,610,7043280: Security, Fire, Safety and Emergency Services 252,708 259,026 265,501 272,139 278,942 285,9163320: Envrionmental and Ecological Services (WPWMA staff) 3,167,664 3,231,017 3,231,017 3,247,172 3,263,408 3,279,7253322: Hazardous Waste (Temp Events & Sac County) 56,933 77,331 79,264 81,246 83,277 85,359

53190: Taxes and Assessments4870: Taxes and Assessments - Disposal Taxes 410,645 410,036 406,751 398,835 398,246 398,5624870: Taxes and Assessments - Property Taxes 577 594 612 630 649 6684870: Taxes and Assessments - Permit Fees 73,487 80,000 81,600 83,232 84,897 86,595

MAJOR CONSTRUCTION PROJECTS

54430: Buildings and ImprovementsBuilding Expansions, Retrofits and Modifications 394,627

54450: EquipmentMRF Equipment 100,000LFG Equipment 12,743Security Systems 60,000

54470: InfrastructurePower 565,000Water 475,500 1,220,000Leachate/Sewage 135,000 240,000LFG Wells and PipingLFG Monitoring SystemsWater Monitoring Systems 100,000

54480: Land ImprovementsLiner Systems 1,774,418 0 0 7,994,508 0 0Cover Systems 0 0 0 1,475,800 0Compost Pads and PondsOther 1,350,000

MAJOR CONSTRUCTION PROJECTS TOTAL 2,316,788 1,540,500 1,220,000 7,994,508 1,475,800 0

70

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

TIPPING FEE STRUCTURETipping Fee ($ per ton)

MSW 70.00 73.00 74.00 75.00 76.50 78.00C&D 48.00 51.00 52.00 53.00 54.00 55.00Sludge and Mixed Inerts 35.00 39.00 39.50 40.00 40.50 41.00Green Waste 38.00 42.00 42.50 43.00 43.50 44.00Wood Waste 27.00 29.00 29.50 30.00 30.50 31.00Food Waste 42.00 46.50 47.00 47.50 48.00 48.50Inerts 18.00 20.00 20.00 20.00 20.00 20.00H2O Sludge 8.00 9.00 9.00 9.00 9.00 9.00Treated Wood Waste 48.00 188.00 191.50 195.25 199.00 202.75Bulk Tires 190.00 200.00 204.00 208.00 212.00 216.00

Tipping Fee ($ per cubic yard)MSW 15.00 16.00 16.25 16.50 16.75 17.00C&D 15.00 16.00 16.25 16.50 16.75 17.00Green Waste 8.00 9.00 9.00 9.00 9.00 9.00Wood Waste 8.00 9.00 9.00 9.00 9.00 9.00Inerts 15.00 18.00 18.25 18.50 18.75 19.00

Tipping Fee ($ per unit)Appliances 6.00 8.00 8.00 8.00 8.00 8.00CFC Devices 32.00 37.00 37.50 38.25 39.00 39.75Car Tires 3.25 3.50 3.50 3.50 3.50 3.50Truck Tires 19.00 20.00 20.25 20.50 20.75 21.00Tractor Tires 76.00 80.00 81.50 83.00 84.50 86.00

MATERIAL QUANTITIESMSW

Tonnage 245,273 246,678 247,712 248,727 249,755 250,881Yardage 96,495 96,013 96,415 96,810 97,210 97,649

C&DTonnage 88,256 87,815 88,358 88,831 89,546 90,825Yardage 42,073 41,863 42,122 42,347 42,688 43,298

Sludge and Mixed Inerts 22,995 22,995 19,546 17,591 15,832 14,249Green Waste

Tonnage 52,207 51,946 52,595 53,253 53,918 54,592Yardage 37,308 37,121 37,585 38,055 38,531 39,013

Wood WasteTonnage 2,165 2,062 2,062 2,062 2,062 2,165Yardage 5,247 5,116 5,116 5,116 5,116 5,372

Food Waste 6,448 3,082 3,736 3,773 3,811 3,849Inerts

Tonnage 26,968 24,392 24,278 24,156 24,145 24,332Yardage 15,339 15,262 15,191 15,114 15,108 15,224

Appliances 9,489 9,489 9,604 9,720 9,839 9,960CFC Devices 3,801 3,801 3,847 3,894 3,942 3,990Tires

Car 6,046 6,046 6,119 6,193 6,269 6,346Truck 88 88 89 90 91 92Tractor 21 21 21 21 21 21Bulk Tonnage 58 33 33 34 34 35

H2O Sludge 1,133 1,133 1,147 1,161 1,175 1,189Treated Wood Waste 343 34 35 35 36 36

71

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

CLOSURE / POSTCLOSURE FUND

SOURCES OF FUNDS

Retained Earnings (210,973) 0 0 0 0 0

42010: Investment Income 193,807 209,719 217,464 225,303 233,252 241,31746250: Solid Waste Disposal 298,930 296,471 294,931 294,205 293,855 294,158General Reserve Cancellations 112,932 100,018 0 70,746 72,207 71,780

TOTAL SOURCES OF FUNDS 394,696 606,208 512,395 590,254 599,313 607,255

USES OF FUNDS

Closure/Postclosure Liability Adjustment 389,926 606,208 (19,747) 590,254 599,313 607,255Contribuition to General Reserves 4,770 0 532,142 0 0 0Contribution to Operating Fund 0 0 0 0 0 0

Retained Earnings 0 0 0 0 0 0

TOTAL USES OF FUNDS 394,696 606,208 512,395 590,254 599,313 607,255

CLOSURE/POSTCLOSURE FUND BALANCE

Closure/Postclosure Liability 12,802,333 13,408,541 13,388,794 13,979,048 14,578,361 15,185,616General Reserves 904,788 804,770 1,336,912 1,266,166 1,193,959 1,122,179

TOTAL CLOSURE/POSTCLOSURE FUND BALANCE 13,707,121 14,213,311 14,725,706 15,245,214 15,772,320 16,307,795

SELF INSURANCE FUND

SOURCES OF FUNDS

Retained Earnings 89,827 134,057 0 0 0 0

42010: Investment Income 132,959 110,275 113,248 114,981 116,740 118,52646250: Solid Waste Disposal 0 0 0 0 0 0Future Occurances Reserve Cancellations 0 0 0 0 0 0

TOTAL SOURCES OF FUNDS 222,786 244,332 113,248 114,981 116,740 118,526

USES OF FUNDS

52360: Prof. & Special Svcs - General 0 0 0 0 0 0

52370: Prof. & Special Svcs - Legal 44,106 50,000 0 0 0 0

52380: Prof. & Special Svcs - Tech., Eng. & Env. 0 0 0 0 0 0

52390: Prof. & Special Svcs - County53140: Judgements and Damages 0 0 0 0 0 0

Contribuition to Reserve for Future Occurances 44,623 194,332 113,248 114,981 116,740 118,526

Retained Earnings 134,057 0 0 0 0 0

TOTAL USES OF FUNDS 88,729 244,332 113,248 114,981 116,740 118,526

SELF INSURANCE RESERVE BALANCEReserve for Future Occurrences 7,207,510 7,401,842 7,515,090 7,630,071 7,746,811 7,865,337

72

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

ODOR MANAGEMENT FUND

SOURCES OF FUNDS


42010: Investment Income 0 1,827 1,044 1,565 3,42046250: Solid Waste Disposal 0 209,222 210,337 212,762 215,653 219,22149060: Contributions from Other Funds

PRSP towards Capital Improvements 0 0 0 0 0 0PRSP towards Operations and Maintenance 0 0 0 0 0 0SAP towards Capital Improvements 0 0 0 0 0 0SAP towards Operations and Maintenance 0 0 0 0 0 0

Odor Management Reserve Cancellations 0 0 0 0 0 0

TOTAL SOURCES OF FUNDS 0 209,222 212,164 213,806 217,218 222,641

USES OF FUNDS

Ongoing Operations 0 104,814 256,907 184,041 111,218 113,439Major Construction Projects 0 0 0 0 0 0

Contribution to ReservesSAP/PRSP Capital and Operating 0 0 0 0 0 0Non SAP/PRSP Capital and Operating 0 104,408 -44,743 29,765 105,999 109,202

Auditor's Year End Adjustment 0 0 0 0 0 0


TOTAL USES OF FUNDS 0 209,222 212,164 213,806 217,218 222,641

ODOR MANAGEMENT FUND RESERVE BALANCES

SAP/PRSP Capital and Operating 0 0 0 0 0 0Non SAP/PRSP Capital and Operating 0 104,408 59,665 89,430 195,429 304,631

TOTAL ODOR MANAGEMENT FUND RESERVE BALANCES 0 104,408 59,665 89,430 195,429 304,631APPROPRIATIONS BY ACCOUNT

52050: Food 0 50 51 52 53 5452140: Parts 0 100 102 104 106 10852160: Maintenance 0 94,414 96,299 98,221 100,182 102,18252260: Misc Expense 0 100 102 104 106 10852320: Printing 0 2,500 2,550 2,601 2,653 2,70652330: Other Supplies 0 200 204 208 212 21652340: Postage 0 200 204 208 212 21652360: Prof. & Special Svcs - General 0 0 150,000 75,000 0 052570: Advertising 0 5,000 5,100 5,202 5,306 5,41252580: Special Department Expense 0 250 255 260 265 27154430: Buildings and Improvements 0 0 0 0 0 054450: Equipment 0 0 0 0 0 054470: Infrastructure 0 0 0 0 0 054480: Land Improvements 0 0 0 0 0 059000: Appropriation for Contingencies 0 2,000 2,040 2,081 2,122 2,165

TOTAL APPROPRIATIONS 0 104,814 256,907 184,041 111,218 113,439

73

EXHIBIT E

WESTERN PLACER WASTE MANAGEMENT AUTHORITY TIPPING FEES EFFECTIVE JULY 1, 2020

Category FY 19/20 Fee FY 20/21 Fee

Change

Municipal Solid Waste $70.00/ton $15.00/cy

$73.00/ton $16.00/cy

$3.00/ton $1.00/cy

Construction and Demolition Debris $48.00/ton $15.00/cy

$51.00/ton $16.00/cy

$3.00/ton $1.00/cy

Sludge and Mixed Inerts1 $35.00/ton $39.00/ton

$4.00/ton

Source Separated Food Waste2 $42.00/ton $46.50/ton

$4.50/ton

Source Separated Green Waste $38.00/ton $8.00/cy

$42.00/ton $9.00/cy

$4.00/ton $1.00/cy

Source Separated Wood Waste3 $27.00/ton $8.00/cy

$29.00/ton $9.00/cy

$2.00/ton $1.00/cy

Inert Materials4 $18.00/ton $15.00/cy

$20.00/ton $18.00/cy

$2.00/ton $3.00/cy

Water treatment plant sludge $8.00/ton $9.00/ton

$1.00/ton

Treated Wood Waste $48.00/ton $188.00/ton

$140.00/ton

Refrigerated Appliances $32.00 each $37.00 each

$5.00 each

Non-refrigerated Appliances $6.00 each $8.00 each

$2.00 each

Car and light truck tires $3.25 each $3.50 each

$0.25 each

Semi-trailer tires $19.00 each $20.00 each

$1.00 each

Tractor tires $76.00 each $80.00 each

$4.00 each

Euclid & Bulk tires $190.00/ton $200.00/ton

$10.00/ton

1 Applies to loads that qualify as Inert Materials but may contain the presence of a small amount of contaminants.

2 Applies to separated loads of foodwaste suitable for and directed to the composting facility only.

3 Applies to separated loads of wood, including: lumber, plywood, particleboard, and tree trunks and limbs less than 24 inches in

diameter and greater than 1 inch in diameter. Loads can contain no more than 1% of contaminants. Contaminants include painted and treated wood.

4 Applies to separated loads of dirt, rock, asphalt and concrete if free from rebar or mesh and broken into pieces less than 2’ x 2’ x 4”.

74




SUBJECT: MRF AND WRSL OPERATING AGREEMENT NEGOTIATIONS

RECOMMENDED ACTION:

1. Authorize staff to: i) continue negotiations with Nortech Waste LLC related to a long-term extension to the Materials Recovery Facility and Western Regional Sanitary Landfill operating agreements and ii) begin preparing a Request for Proposals (RFP) for future operation of the Materials Recovery Facility and Western Regional Sanitary Landfill; and

2. Authorize the Executive Director or designee to enter into one or more professional services agreements to assist in the development of the Request for Proposals, as necessary, up to a combined maximum limit of $100,000.

BACKGROUND:

At the September 2018 meeting, your Board directed staff to enter into negotiations with Nortech Waste, LLC (Nortech) to develop deal points related to modifications to the Materials Recovery Facility (MRF) and an extension of the MRF and Western Regional Sanitary Landfill (WRSL) operating agreements.

Since that time, staff has regularly met with Nortech to identify the appropriate level of facility modifications to meet the immediate needs of the Participating Agencies while ensuring any such modifications are consistent with the goals and facility development concepts of the WPWMA’s Waste Action Plan. Staff believes that the following key tenants are important when considering contract and facility changes to ensure the long-term success of the WPWMA’s operation and to meet the needs of the Participating Agencies:

1. Comply with SB 1383 by providing the necessary infrastructure and operational capacity to receive, process and successfully market organic materials.

2. Facilitate and foster establishment of long-term stable domestic markets for recyclable materials recovered from the waste stream.

3. Increase material diversion rates to ensure compliance with other waste-related regulations (e.g. CalGreen 65% diversion requirement for construction and demolition wastes, etc.) and reduce long-term costs associated with landfilling.

4. Continue to provide systems to support the One Big Bin concept and limit costs associated with significant changes to waste collection methodologies.

5. Continue to improve the compatibility between the WPWMA and current and future neighbors.

To meet these key tenants, Nortech is proposing a 20-year agreement with the WPWMA that includes:

75

WPWMA BOARD OF DIRECTORS MRF AND WRSL OPERATING AGREEMENT NEGOTIATIONS MAY 21, 2020 PAGE 2

1. Expansion of the composting facility and conversion from windrow style composting to the exclusive use of aerated static pile (ASP) composting methods.

2. Modification and development of a new construction and demolition (C&D) processing system that will enable Nortech to achieve a diversion rate from these materials of at least 65% and that will be able to process all C&D materials eliminating the direct disposal of C&D loads.

3. Development of a new MRF, in conjunction with an independent third party, proposed to achieve 90% diversion from all municipal solid wastes including development and operation of co-located recycled material secondary processes for materials recovered from the wastestream.

Under their proposal, the third party identified by Nortech would be responsible for the capital cost of the new MRF and associated secondary processes and the WPWMA would be responsible for the capital costs associated with modification and expansion of the composting and C&D facility. Nortech estimates that the necessary capital investment at the compost and C&D facilities is approximately $40 million. As this amount exceeds the amount the WPWMA currently has in reserves for these types of infrastructure improvements, the WPWMA would likely need to obtain public financing to pay for these upgrades.

Additionally, Nortech has proposed the following changes to their processing fee structure:

Material/Description

Processing Fee (per ton)

Percent Change Current1 Proposed

MSW $44.41 $53.63 20.8%

C&D $30.74 $53.63 74.4%

Greenwaste $35.32 $53.63 51.8%

Foodwaste $35.32 $53.63 51.8%

Woodwaste $27.47 $47.50 72.9%

WRSL – Annual fixed fee $2,285,883 $02 <100%>

Staff performed a preliminary economic analysis of Nortech’s proposal which suggests that the following changes to the WPWMA’s tipping fee structure would be necessary to cover the increased processing fees and debt service associated with $40 million in public financing:

1 Effective July 1, 2020 2 Costs associated with operation of the WRSL are included in the proposed MRF processing fees.

76


Material

Tip Fee (per ton)

Percent Change Current1 Proposed

MSW $73.00 $88.00 20.5%

C&D $51.00 $88.00 72.5%

Greenwaste $42.00 $66.00 57.1%

Foodwaste $46.50 $66.00 41.9%

Woodwaste $29.00 $50.50 74.1%

Procurement Options

Staff have identified three options for your Board’s consideration related to future operations of the MRF and WRSL. They include: 1) negotiate a sole-source, long-term agreement with Nortech, 2) cease further negotiations with Nortech and immediately initiate a competitive procurement process or 3) continue negotiations with Nortech to better understand the details of their proposal while concurrently developing an RFP for future operation of the MRF and WRSL with the intent to return to your Board when the RFP is ready for release.

To maintain maximum flexibility, staff recommends the third option of proceeding with the development of an RFP concurrent with the continued negotiations with Nortech. Staff believes it is worthwhile to continue to explore Nortech’s proposal as it is in alignment with the WPWMA’s long-term goals identified in Waste Action Plan, specifically promoting local markets for recyclable materials and increasing diversion rates. Taking this parallel approach would allow the WPWMA to more fully investigate and analyze the proposal while preserving the option to issue an RFP should your Board decide a long-term agreement with Nortech is not in the WPWMA’s best interest. Staff anticipate that the competitive procurement process could take two years to complete. The current MRF and WRSL operating agreements are set to expire in approximately two years (June 30, 2022); preparing the RFP now will avoid further procurement process schedule impacts. To assist in the development of the RFP and associated draft operating agreements, staff recommends your Board authorize the Executive Director or designee to enter into professional service agreements as necessary.

Should your Board elect to proceed solely with development of an RFP and subsequent competitive procurement process, short-term modifications to the existing facility, including expansion of the composting facility, will be necessary to ensure compliance with SB 1383. In this situation, Nortech’s composting-related processing fees would need to be amended to reflect the change in operations (i.e. transition from windrow to ASP composting methods). It is unclear at this time what the capital and operating cost impacts would be to the WPWMA of these short-term modifications.


Providing the requested direction to staff is not considered a “project” under the California Environmental Quality Act. However, any subsequent modifications to the facility would be subject to additional environmental review. Depending on the direction

77


from your Board, staff will initiate the appropriate level of environmental review and return to your Board as appropriate.

FISCAL IMPACT:

Nortech’s currently proposed facility modifications would require the WPWMA to invest approximately $40 million to expand the composting facility and upgrade the C&D processing area. As this amount exceeds the available fixed asset acquisition reserve holdings of the WPWMA, some form of public financing or other loan would be necessary to fund these facility improvements. Staff has had preliminary discussions with the Placer County Treasurer regarding financing options. Should your Board elect to proceed with negotiations with Nortech, staff will continue to coordinate with the Treasurer and return to your Board at an upcoming meeting with more information about possible financing mechanisms and any associated necessary actions to obtain financing. In addition to the fiscal impact associated with the immediate improvements to the facility, Nortech has proposed a significant change to their processing fee structure as noted above.

Staff has conducted a preliminary analysis of the probable impacts to tipping fees that would be necessary to cover the costs associated with public financing and the increased processing fees. Assuming favorable public financing terms and that the WPWMA elects to simplify its current tipping fee structure3, tipping fees for mixed waste (i.e.: MSW and C&D) could increase to $88 per ton and organics (greenwaste and foodwaste) could increase to $66 per ton. Staff conducted an initial survey of tipping fees at other similar facilities in California (attached) which suggests that the WPWMA’s projected tipping fees are within the range of those charged at other facilities4. Staff also analyzed the probable impacts to typical residential monthly garbage toter rates and concluded that monthly rates could increase between $1.50 and $3.00 if the WPWMA increased MSW tipping fees from the current $73 per ton to $88 per ton. Despite this initial increase in tipping fees, future fees would likely stabilize by virtue of a reduction and deferment in landfill related costs (e.g. liner and cover construction, landfill gas system expansion, disposal taxes, etc.).

Should your Board direct staff to proceed with preparing an RFP (either in conjunction with or in lieu of continued negotiations with Nortech), the WPWMA will incur additional costs to prepare the RFP and manage the competitive procurement process. Staff anticipate that up to $100,000 may initially be necessary to engage one or more firms to assist with the development of the RFP document package. Staff have included this initial cost in the FY 2020/21 Preliminary Budget that is included as a separate item for your Board’s consideration tonight.

ATTACHMENT: TIPPING FEE COMPARISON CHARTS

3 Municipal Solid Waste and Construction and Demolition Debris would continue to be tracked separately but would be grouped

together for pricing purposes as “mixed waste”. Source separated green waste and food waste would be grouped together for pricing purposes as “organics”.

4 The tipping fees for other similar facilities represent those currently in-place. It is unclear to what degree, if any, these fees provide sufficient funding to meet applicable regulatory mandates (e.g. CalGreen and SB1383 requirements.)

78

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

MSW

Tipping Fee Comparison

79

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

C&D Tipping Fee Comparison

80

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

Green

waste Tipping Fee Comparison

81

Documents

MEETING OF THE BOARD OF DIRECTORS - California · 2020-05-05 · MEETING OF THE BOARD OF DIRECTORS AGENDA May 21, 2020 5:00 PM Materials Recovery Facility Administration Building