Currently, all green waste (yard waste, tree trimmings etc.) is transferred by Republic Services as landfill alternative daily cover (ADC) at the Orange County Landfill system. The Integrated Waste Management Act of 1989 AB 939, allowed jurisdictions to claim ADC as diversion. Assembly Bill (AB) 1594 (Chapter 719, Statutes of 2014) state law requires that as of January 1, 2020, the use of green material as ADC will no longer be considered diversion and will instead be considered disposal in terms of measuring a jurisdiction’s annual fifty percent CalRecycle diversion requirement. This is an unfunded mandate. Jurisdictions are required to report to CalRecycle, the state agency that oversees recycling and solid waste, progress toward meeting the requirements of AB 1594.  This new law was designed to require the recycling of green waste and help improve air quality by reducing greenhouse gas emissions that are produced in landfills when organic material such as green waste decomposes.  Green waste can be recycled as compost or processed through anaerobic digestion.  Republic Services proposes to process green waste through composting.

In August 2019, Republic Services provided a new green waste recycling residential rate for the City to review. These new rates factored in the tipping fee, transportation costs, transfer costs and contamination costs for this new green waste recycling process, as required by state law. To ensure the rates proposed by Republic Services to process the green waste were fair and reasonable, the City’s solid waste consultant, HF&H Consultants, provided a rate review and completed negotiations on behalf of the District. Based on their final review and negotiations, it resulted in a residential rate payer monthly adjustment of approximately $2.71 per household, effective January 1, 2020. Therefore, Staff recommends the District Board approve the rate adjustment and amendment for the green waste processing that is required in order for the City to remain in compliance with the State's recycling mandates, including AB 1594.

There is no impact to the City's General Fund. This new state law is an unfunded mandate. 

It is recommended that the Sanitary District Board:

• Approve Amendment No. 5 to the 2010 Agreement with Republic Waste Services of Southern California LLC, dba Garden Grove Disposal for a new green waste recycling processing rate as required by state law; and

• Authorize the General Manager to execute the amendment on behalf of the Sanitary District, and make minor modifications as appropriate thereto.

It is recommended that the City Council:

• Approve Amendment No. 5 to the 2010 Agreement with Republic Waste Services of Southern California LLC, dba Garden Grove Disposal for a new green waste recycling processing rate as required by state law; and

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•  Authorize the City Manager to execute the amendment on behalf of the City, and make minor modifications as appropriate thereto.

By:  A.J. Holmon III, Streets/Environmental Manager