TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
Placentia City Council
-170M
FROM: DEPUTY CITY ADMINISTRATOR/ PUBLIC SERVICES AND INFRASTRUCTURE DATE: FEBRUARY 15, 2022
SUBJECT: RESOLUTION OF NOTIFICATION OF INTENT TO COMPLY WITH PROVISIONS OUTLINED IN SENATE BILL 1383
FISCAL
IMPACT: There is no immediate or direct fiscal impact associated with the recommended actions.
SUMMARY -
In September 2016, Governor Brown signed into law Senate Bill ("SB") 1383 establishing methane emissions reduction targets for short-lived climate pollutants in various sectors of California's economy. SB 1383 establishes an unfunded mandated target to achieve a 50% reduction in statewide disposal of food and landscape waste into landfills from 2014 levels by 2020 and a 75% reduction by 2025. SB 1383 prescribes specific actions local jurisdictions must take to reduce short-lived climate pollutants related to solid waste collection and processing and includes new stipulations upon acceptable waste segregation and processing practices, as well as City procurement responsibilities. The legislation requires the City to have a mandatory recycling ordinance in place and provide an organics collection service to all residents and businesses by January 1, 2022.
As a result of the COVID-19 pandemic and its extensive impacts upon organizations, public and private, in October 2021, Governor Newsom signed Senate Bill ("SB") 619, which created a process at California Department of Resources Recycling and Recovery (CalRecycle) for local jurisdictions to demonstrate that they have made a reasonable effort to comply with SB 1383's organic waste recycling requirements, in advance of any enforcement action. This provides agencies with additional time to set up their organics programs and to begin taking enforcement action. To receive relief and extend the deadline for compliance, local jurisdictions must submit a Notice of Intent to Comply ("NOIC") with SB 1383 regulations to CalRecycle before March 1, 2022. Staff is recommending that the City Council approve the submittal of an NOIC to CalRecycle to be eligible for administrative civil penalty fine relief for the 2022 calendar year and CalRecycle's issuance of a Corrective Action Plan ("CAP") to facilitate organic recycling program implementation in the City within a more reasonable timeline than January 1, 2022.
RECOMMENDATION
It is recommended that the City Council take the following actions:
1. fe
Feb. 15, 2022
City Council Agenda
February 15, 2022
1. Approve Resolution No. 2022-05, a Resolution of the City Council of the City of Placentia, California, approving submittal of a Notification of Intent to Comply with CalRecycle Short -Live Climate Pollutants Regulations; and
2. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
ISCUSSION:
On January 1, 2022, SB 1383 became effective, requiring the City to have a mandatory recycling ordinance in place by that date, and provide an organics collection service to all residents and businesses. From 2022 to 2023, SB 1383 will allow the City to take a non -punitive approach to enforcement. Taking an educational approach will allow the City to work with Placentia residents and businesses to inform them of the requirements during this time period.
However, the City must begin taking punitive action against non-compliant entities starting on January 1, 2024. SB 1383 makes local jurisdictions directly responsible for the following actions, starting on January 1, 2022:
• Provide organic waste recycling services to all residents and businesses. • Inspect covered entities and enforce compliance with SB 1383 by adopting an enforcement ordinance before January 1, 2022. This ordinance must match State - developed standards, including minimum fine structure.
• Conduct outreach and education to all affected parties, including generators, haulers, facilities, edible food recovery organizations, and city/county departments. • Establish a food recovery program to recover edible food from the waste stream. • Perform capacity planning covering 15 years for organic waste diversion from landfills.
These includes estimating organic material processing and food recovery capacity available to the City and creating a plan to fund expansion if capacity is not sufficient. • Procure recycled organic waste products such as compost, mulch, and renewable natural gas.
• Maintain accurate and timely records of SB 1383 compliance for annual reporting.
SB 619 Organic waste: reduction regulations; local jurisdiction compliance As a result of the COVID-19 pandemic and the extensive impacts it created upon private and public organizations, on October 5, 2021, Governor Newsom signed SB 619 to provide local jurisdictions relief from SB 1383 non-compliance penalties and a time extension to implement mandatory organics recycling programs. Existing law (SB 1383) requires CalRecycle to adopt regulations to reduce organic waste in landfills. It authorizes those regulations to require local jurisdictions to impose requirements upon generators, or other relevant entities within their jurisdiction. SB 1383 regulations took effect upon or after January 1, 2022. SB 619 can provide relief for the violations listed below that a jurisdiction may be imposed upon by CalRecycle:
■ Failure to have any ordinance or similar enforceable mechanism for organic waste disposal reduction and edible food recovery
City Council Agenda
February 15, 2022
• Failure to have a provision in a contract, agreement or other authorization that requires a hauler to comply with SB 1383 regulations
• Failure to have an edible food recovery program
• Failure to have the required SB 1383 implementation records • Implementation or enforcement of any ordinance, policy, procedure, condition, or initiative prohibited by SB 1383 regulations
• Failure to submit reports to CalRecycle regarding its implementation and compliance with SB 1383 regulations.
SB 619 provides relief for the violations listed above and extra time to comply. To receive relief, local jurisdictions must submit an NOIC with SB 1383 regulations to CalRecycle before March 1, 2022. The legislation requires CalRecycle to respond to the local jurisdiction within 45 business days with an approval, disapproval, request for additional information, or timeline for a decision regarding approval or disapproval. Once approved, CalRecycle will waive administrative civil penalties for noncompliance during the 2022 calendar year and prohibit administrative penalties from accruing during the 2022 calendar year providing local jurisdictions implement certain actions to remedy the violation(s) specified in their NOIC. Penalties will continue to accrue on January 1, 2023 if violations that commenced during 2022 have not been addressed. However, upon complete compliance with the terms of such a corrective action plan, CalRecycle will waive those administrative civil penalties.
Under the SB 1383 regulations, if a local jurisdiction fails to adopt enforceable mechanisms (ordinances, franchise agreements, etc.) to implement the SB 1383 regulations by January 1, 2022, CalRecycle can impose administrative civil penalties against the jurisdiction. Penalties vary based upon the severity of the violation. Violations that substantially deviate from the SB 1383 regulations are considered to be major and will result in penalties between $7,500 and $10,000 per violation per day.
Status of City's Compliance with SB 1383
On December 7, 2021, the City Council adopted Ordinance 0-2021-12 which amended the City's municipal code to implement the requirements of AB 939, AB 341, AB 1826, AB 827, and the SB 1383 Regulations. Currently, the City does not have an active SB 1383 -compliant organics recycling program and the City is currently working with several other Orange County Cities to amend the existing agreement with franchised waste hauler Republic Services to establish rates for these services and to execute a restated franchise agreement. Until negotiations conclude and the franchise agreement is finalized and adopted by the City Council, the City is unable to provide the compliant organic waste landfill diversion services that meet the requirements of SB 1383.
In April 2021, the City Council approved a professional services agreement with HF&H Consultants, to provide as -needed support services for refuse contract negotiations and SB 1383 compliance assistance. Currently, the City is engaged in active negotiations with Republic Services to amend the existing franchise agreement to provide organic waste recycling services to all businesses and residents and meet other requirements of SB 1383. More time is needed to complete negotiations for the restated franchise agreement that includes many of the
City Council Agenda
February 15, 2022
prescriptive requirements necessary to implement SB 1383 -compliant programs. Based upon this, Staff is anticipating having the agreement finalized by July 1, 2023 with full program implementation by January 1, 2024.
Based upon the recommendation of the City Attorney's Office and the City's consultant for SB 1383, HF&H, Staff is recommending that the City submit a NOIC to CalRecycle. The submission of a NOIC to CalRecycle under SB 619 provides protection for the City from financial penalties for 2022 and provides an extended and more reasonable deadline for the City to work with its franchise hauler to implement a Citywide organics recycling program. It also prevents CalRecycle from targeting the City for delayed compliance. In addition, it prevents the State from dictating the terms of the City's compliance, thereby allowing the City to formulate its own strategy for complying with SB 1383 requirements. Other North Orange County cities including the Cities of Anaheim, Brea, Fullerton, Garden Grove and Yorba Linda are submitting a NOIC.
FISCAL IMPACT:
There is no fiscal impact associated with the submittal of the Notice of Intent to Comply package to CalRecycle.
Prepared by:
r
4i�� «�-
`Elsa Rabinson
Management Analyst
Reviewed and approved:
Damien R. Arrula
City Administrator
Reviewed and approved:
Lui s even -
Deputy City Administrator
Attachments:
1. Resolution No. R-2022-05 — NOIC to CalRecycle
2. Notice of Intent to Comply Form
a. Supplemental Attachment