The 2023-24 Budget: CalRecycle’s Zero Waste Plan Proposal

2023-24 BUDGET The 2023-24 Budget: CalRecycle’s Zero Waste Plan Proposal GABRIEL PETEK | LEGISLATIVE ANALYST | MARCH 2023 SUMMARY In this brief, we analyze the Governor’s 2023-24 budget proposal to provide funding from various special funds for the California Department of Resources Recycling and Recovery (CalRecycle) to develop and implement a zero waste plan. We recommend the Legislature reject the proposal given that (1) many of the activities that would be completed under this initiative should already be occurring within the department, (2) the plan would become quickly outdated as recently enacted legislation is implemented, and (3) the high-level nature of the plan would make it difficult to identify specific improvements to individual programs. Background in Figure 1, the state was not able to meet the 75 percent goal by 2020. In 2021, the statewide CalRecycle Administers and Provides recycling rate was 40 percent, which was down Oversight of Waste Management and Recycling from a recent high of 50 percent in 2014 and still Programs. CalRecycle administers and provides significantly lower than the goal set out in AB 341. oversight of the state’s waste handling and recycling programs, which largely are managed at AB 341 Required Comprehensive Report on the local level by cities and counties. CalRecycle State’s Efforts to Meet Recycling Goal. Assembly also implements several statewide programs. Bill 341 also included a requirement for CalRecycle This includes the Beverage Container Recycling to report to the Legislature on strategies to achieve Program, a deposit-refund system that encourages the 75 percent recycling goal. The first report the recycling of certain beverage containers. The was due by January 2014 and annually thereafter department also oversees multiple extended until the statutory reporting requirement ended in producer responsibility programs for specific January 2017. The report, which CalRecycle ended products—such as carpet up only submitting once in 2015, was required and paint—which require that producers collect and recycle their Figure 1 used products. Progress on Achieving AB 341 Goal AB 341 Established Statewide Goal. In 2011, the Legislature 100% enacted Chapter 476 (AB 341, 90 AB 341 Goal Chesbro), which, among other 2020 80 provisions, established a goal that 70 by 2020, at least 75 percent of 60 statewide solid waste generated 50 Statewide Recycling Rateª be source reduced, recycled, or 40 composted. For the purpose of 30 measuring the state’s progress 20 in achieving the AB 341 goal, 10 CalRecycle uses the term recycling 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 for a range of activities related to source reduction, recycling, a In measuring the state's progress on meeting the AB 341 goal, the California Department of Resources Recycling and Recovery uses the term recycling for a range of activities related to source reduction, recycling, and and composting—including composting—including anaerobic digestion. anaerobic digestion. As shown www.lao.ca.gov 1 2023-24 BUDGET to include the following: (1) evaluation of current Governor’s Proposal programs and recommendations for improvements, Proposes Funding to Conduct and Implement (2) identification of problematic waste streams a Zero Waste Plan. The Governor’s budget and recommendations on handling those streams; includes $2 million on a one-time basis in 2023-24 (3) recommendations for reprioritizing existing from the Beverage Container Recycling Fund to resources; and (4) recommendations for statutory develop a zero waste plan. The plan would identify and regulatory changes. CalRecycle has continued gaps in CalRecycle’s programs and existing laws to provide annual updates on the state’s progress in and recommend changes needed for the state meeting the AB 341 goal, but has not conducted a to meet and exceed the goal established under comprehensive assessment since 2015. AB 341 by 2035. The department would aim to Recent Legislation Expanded CalRecycle’s complete the plan in fall 2025. The Governor’s Responsibilities for Certain Waste Streams. budget also includes $301,000 ongoing from Over the past several years, the Legislature has multiple special funds beginning 2023-24 to enacted legislation that has significantly expanded support two positions to oversee the development CalRecycle’s responsibilities with regard to certain of the plan and coordinate its implementation waste streams. These include: once completed. • Chapter 395 of 2016 (SB 1383, Lara). This Assessment law requires CalRecycle to adopt regulations Identifying Program Shortcomings and designed to reduce the statewide disposal of Implementing Improvements Is a Core organic waste to 50 percent of 2014 levels by Department Responsibility. The administration 2020 and 75 percent by 2025. It also requires indicates that the zero waste plan would identify CalRecycle to adopt regulations designed to programmatic improvements that would help recover at least 20 percent of disposed edible the state achieve and exceed the goal set out in food by 2025. AB 341. This would also include identifying ways • Chapter 75 of 2022 (SB 54, Allen). This law in which programs could better complement one requires producers of single-use packaging another. While this could be helpful, these activities and food service ware to implement an should already be occurring on an ongoing basis— extended producer responsibility program. both within individual programs and across the The legislation also phases in several product department. As part of its core responsibilities, and recycling requirements by 2032, such as CalRecycle should be (1) conducting regular requiring that 100 percent of covered materials program evaluations to assess how well programs be recyclable or compostable. CalRecycle are meeting their intended goals, (2) identifying is charged with adopting the regulations any changes needed to improve programs, necessary to implement the legislation. (3) assessing to what extent programs are aligning • Chapter 610 of 2022 (SB 1013, Atkins). with the department’s core mission and statutory This law expands the Beverage Container goals, and (4) applying lessons learned across Recycling Program to include wine and programs to make continuous improvements. distilled spirit containers starting in Plan Could Become Quickly Outdated Given January 2024. CalRecycle is in charge of Recently Enacted Legislation. As mentioned overseeing the expansion of the program. above, recently enacted legislation has significantly • Chapter 370 of 2022 (SB 1215, Newman). expanded the department’s responsibilities for This law expands the existing Covered certain waste streams. In several cases, the Electronic Waste Program—which uses activities in the legislation that the department is consumer fees to support the proper tasked with implementing will take effect around collection and recycling of certain electronic the same time the plan would be expected to devices—to include most battery-embedded be nearing its completion. For instance, the products, such as cell phones. CalRecycle department likely will finalize regulations for is in charge of overseeing the expansion of SB 54 and SB 1215 in late 2024, which is around the program. 2 LEGISLATIVE ANALYST’S OFFICE 2023-24 BUDGET the time the proposed plan would begin finishing its needed for the state to meet and exceed the goal research and analysis phase. As such, conducting established under AB 341 by 2035. As mentioned the plan as proposed would preclude the earlier, the state has not yet been able to make department from being able to fully incorporate the significant progress towards meeting the current impacts of these significant policy changes. In other statutory AB 341 goal. Overall, we find that planning cases, CalRecycle would only have a minimal for a more ambitious goal is premature when amount of data available regarding the impact of (1) the state has made minimal progress towards recent statutory changes to be able to incorporate the current goal and (2) a new goal has not been into the plan. For instance, the expansion of the established in statute. Beverage Container Recycling Program under CalRecycle Has Undertaken Similar SB 1013 is expected to take effect in January 2024. Programmatic Assessments Before Without While the plan might be able to capture some early Additional Resources. As mentioned above, outcomes from the expanded program, the data AB 341 included a reporting requirement that collected likely would not be significant enough directed the department to identify strategies to for the department to include a full assessment achieve the 75 percent recycling goal. That annual of the program’s changes. Additionally, the requirement was in effect from January 2014 to assessment of program needs likely will evolve January 2017. In many cases, the proposed new based on the degree to which the new policies are zero waste plan is very similar to the one that the or are not having their intended outcomes. The department previously was required to complete fact that it would necessarily be dependent upon under AB 341. CalRecycle indicates it was able to soon-to-be-outdated data raises questions about complete its AB 341 reporting requirement within its the ultimate value of the proposed plan. existing resources. This raises questions as to why, High-Level Plan May Not Be Best Approach if the department found this type of assessment for Identifying Issues Specific to Individual helpful, it could not undertake a similar planning Programs. As currently proposed, the plan would exercise within its existing resources again. look broadly across all programs to identify areas Similarly, if the Legislature found the AB 341 report where improvements could be made. However, useful, it could consider reestablishing the previous this high-level assessment may not be the best requirements in statute. However, providing the approach for identifying improvements that are department with $2 million for contract support specific to individual programs. This is because and an ongoing increase of $300,000 for two new each program will likely experience unique positions to review its existing programs does barriers and have different needs. For instance, not seem justified—particularly because it has improvements needed to increase the diversion experience in conducting a similar study without of organic waste from landfills—as directed under those augmentations. SB 1383—will be different from those needed to Recommendation increase the rate at which beverage containers are recycled. While the plan may be able to provide Reject Proposal to Develop Zero Waste an assessment of general statewide needs Plan. We recommend that the Legislature and high-level goals, it is unlikely to identify reject this proposal given that (1) many of the improvements needed for individual programs activities that would be completed under this at the level of specificity required to result in initiative should already be occurring within the meaningful changes. This is a key reason why the department, (2) the plan would become quickly department should be engaged in conducting outdated as recently enacted legislation is program evaluations on an ongoing basis. implemented, and (3) the high-level nature of the plan would make it difficult to identify specific Premature to Establish More Ambitious Goal improvements to individual programs. We also Before Meeting Existing Statutory Goal. The find that it is premature for the department to proposal indicates that the zero waste plan would develop a plan to meet a more ambitious goal recommend programmatic and statutory changes www.lao.ca.gov 3 2023-24 BUDGET when the state has thus far made minimal progress that receiving periodic programmatic assessments towards its current statutory recycling goal. from the department would be helpful, it could Finally, the department has undertaken similar consider reestablishing the original AB 341 programmatic assessments before without reporting requirement. additional resources. If the Legislature believes LAO PUBLICATIONS This report was prepared by Frank Jimenez, and reviewed by Rachel Ehlers and Anthony Simbol. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. To request publications call (916) 445-4656. This report and others, as well as an e-mail subscription service, are available on the LAO’s website at www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000, Sacramento, California 95814. 4 LEGISLATIVE ANALYST’S OFFICE