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  Consent-Community Services   # 33.       
Board of Supervisors   
Meeting Date: 06/25/2019  
Brief Title:    Resolution in Support of Statewide Commission on Recycling Markets
From: Taro Echiburu, Director, Department of Community Services
Staff Contact: Marissa Juhler, Waste Reduction Manager, Department of Community Services, x8813
Supervisorial District Impact:

Subject
Adopt resolution in support of a statewide commission on recycling markets. (No general fund impact) (Echiburu/Juhler)
Recommended Action
Adopt resolution in support of a statewide commission on recycling markets.
Strategic Plan Goal(s)
Sustainable Environment
Thriving Residents
Reason for Recommended Action/Background
Yolo County adopted a Climate Action Plan in 2011 developing solid waste management practices, specifically aimed at reducing waste going to the Yolo County Central Landfill and solidifying our commitment to reduce greenhouse gas emissions.  In 2017 however, China introduced its National Sword policy which restricted the export of most plastics and paper from the United States to China, and enacted strict mixed paper and plastic contamination limits on those materials they would accept.  Chinese officials believe that the waste it has been receiving from the U.S. and elsewhere has high levels of contamination which puts the environmental burden on the land and water in China.  

These limiting factors affect what recyclables will make it to market after being placed into carts and dumpsters by Yolo County residents and businesses.  While to date, none of our recycling has been landfilled, both Waste Management and Recology, the franchised solid waste haulers in Yolo County, are close to rejecting material and sending once recyclable items to the landfill.  The timing on taking such action is dependent upon storage limitations at their Material Recovery Facilities, while they seek new markets.  Additionally, Waste Management has rolled out new SmartTruck® technology to charge each customer that contaminates to recoup their costs for sorting out the trash and making it clean enough to send to the markets that are still available.    

Additionally, in 2018, China declared their intent to ban another 32 types of solid waste this time targeting the scrap metal industry, including stainless steel, scrap metal, compressed car scrap, etc. with sixteen commodity restrictions taking place at the end of 2018 and the other half at the end of 2019.  This will further restrict what can be recycled as California does not currently have the infrastructure to process scrap metal which requires smelting practices, nor do we have the capacity to accept the volume of what was being sent overseas.

While these markets are becoming more and more challenging, CalRecycle is still upholding AB341 state mandated recycling requirements and finalizing SB1383 which will require Yolo County to meet and exceed current diversion levels.  This resolution is asking Governor Newsom to form a Commission to look at the challenges the rulemaking will place upon local jurisdictions financially, and its impact to the environment if local jobs and infrastructure are not created locally to support our recycling programs.  The four objectives for the Commission would be as follows:
  1. Develop more markets for use of recycled materials in California and domestically to bring recycling jobs home to America.
  2. Expand financing tools to develop infrastructure needed to meet State goals, including reuse, recycling, composting and anaerobic digestion facilities.
  3. Redesign AB2020 to solve cash flow  problems that resulted in 40% of AB2020 recycling centers closing.
  4. Develop Statewide outreach, education, and advertising campaign to get residents and businesses to recycle correctly
Collaborations (including Board advisory groups and external partner agencies)
The Integrated Waste Management Division has worked with the Waste Advisory Committee (WAC) and the Manager of Governmental Relations to develop this resolution.  This resolution is endorsed by CSAC.

Fiscal Impact
Potential fiscal impact (see notes in explanation section below)
Fiscal Impact (Expenditure)
Total cost of recommended action:    $   0
Amount budgeted for expenditure:    $   0
Additional expenditure authority needed:    $   0
One-time commitment     Yes
Source of Funds for this Expenditure
$0
Explanation (Expenditure and/or Revenue)
Further explanation as needed:
The financial impact of the National Sword policy across California is estimated to be in the billions of dollars which currently leaves local municipalities to look at whether the environmental benefits of recycling are worth the investment.  Some of these factors include transporting out of state for recycling at higher transportation costs and lower per ton rebates, or completely cutting materials from local recycling programs.  The financial impact in this scenario to Yolo County could be to decide whether to raise residential and commercial trash rates significantly to cover transport out of state for recycling or pay the haulers higher rates to cover increased cost of sorting. Additionally, as markets drop off, the Yolo County Central Landfill is impacted by no longer receiving rebates from materials which have subsidized trash rates since opening in 1975.  If markets continue to decline, and it is the desire to continue offering recycling services at the landfill, ultimately tipping fees will increase. 
 
Attachments
Att. A. Resolution
Att. B. WAC Letter of Support

Form Review
Inbox Reviewed By Date
Marissa Juhler (Originator) Marissa Juhler 06/10/2019 01:30 PM
Form Started By: Marissa Juhler Started On: 06/03/2019 11:06 AM
Final Approval Date: 06/13/2019

    

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