SD-6: Market Development

Baseline
The baseline is the number of tons of organic materials disposed annually. 29.7 million tons were disposed in 2006.

Metrics or Performance Criteria
Tons of organic materials disposed will serve as a metric.

Annual Targets
Targets by the end of 2007 are to conduct a major stakeholder "summit" to identify key barriers and for the Board to consider new initiatives to address those barriers.

Key Activities

• The Board has not engaged stakeholders in a major discussion about organics-related efforts for many years. Before proposing new initiatives, staff plans to convene a major "summit" this fall with Board Members and stakeholders to identify the most important barriers and most feasible opportunities for diversion. As part of this, identify infrastructure needs (e.g., facilities) needed to meet the 2020 goal and evaluate obstacles and solutions to developing necessary infrastructure.
• Staff will continue with ongoing key activities such as the lifecycle assessment and economic analysis on organic materials (which will address greenhouse gas emission reduction priorities in combination with diversion), working with Caltrans and local governments on increased procurement, developing compost specifications for the agriculture industry, encouraging the development of biofuels and bioenergy technologies (see Strategic Directive 9), etc.

Progress on Targets
An initial Roadmap for SD 6.1 was approved by the Board in December 2007 and a status report and second Roadmap was presented to the Board in December 2008. In support of this directive, the Board approved Scopes of Work, contractors, and interagency agreements for contracts related to organics materials management, including Organics Life Cycle Assessment; Compost Best Management Practices and Benefits; Bioenergy and Biofuels Demonstration Project; Landfill-Based Anaerobic Digestion Pilot Project; Compost Cover Methane Reduction Project; Agricultural Specifications; and Caltrans/Local Government Workshops.

Additional Achievements

In June 2008 staff presented eight options identified by stakeholders to the Board that could be undertaken to increase siting and capacity. The Committee directed staff to move ahead on all eight options and to further refine what action could be taken by CIWMB staff.

In order to identify regulatory barriers, regulation reviews were scheduled in accordance with SD 8.4. In 2009, reviews will be conducted on the following organics areas: alternative daily cover (ADC), food waste composting, land application, farms and ranches, and three-part test (see SD 8.4).

Staff continued its collaboration with the Air Resources Board (ARB), Air Districts and Regional Water Boards on the AB 32 Scoping Plan (which includes measures on anaerobic digestion and composting) and on regulatory requirements related to compost facilities and applications. Staff also continues to work with the San Joaquin Valley Unified Air Pollution Control District on its proposed Rule 4566 concerning emissions of volatile organic compounds from greenwaste composting, with Regional Water Board 8 on issues concerning Caltrans use of compost, with the State Water Resources Control Board on its development of a statewide regulation for greenwaste composting, and other districts and regional boards on similar issues.

Baseline
The baseline is the Marin County MAAP model and modified new approach.

Metrics or Performance Criteria
Initial metrics include the identification of market barriers and opportunities, and initiation of collaborative projects. Ultimately, the performance criteria will increase local program implementation and decrease disposal.

Annual Targets
Complete the Sacramento MAAP project by late summer 2007 and reach consensus with regional stakeholders on action plans for collaborative market development projects. Train new LAMD staff on approach and begin applying to other regions around state.

Key Activities
Meet with regional stakeholders in spring and summer 2007; develop overall analysis of materials flow and market barriers and opportunities in region. Draft and finalize action plans for increased diversion and regional markets.

Progress on Targets
Staff completed the Marin County pilot study in 2007 and the Sacramento assessment project in 2008. Staff continues to work with Sacramento County, in collaboration with local stakeholders and the Department of Conservation's Division of Recycling, to develop and expand regional markets for organics, construction and demolition (C&D), commercial recyclables, and plastics. This includes assessing the potential for a regional compost or anaerobic digestion facility under the auspices of the Sacramento Solid Waste Authority (SWA); developing ordinance language by SWA regarding certified mixed C&D facilities and ensuring construction debris is directed to sanctioned facilities; working with the “Green Apartment Partnership” to educate apartment owners, managers, and tenants and create programs for complex recycling programs; and educating the public about expanded efforts by the City of Roseville to collect polystyrene (Styrofoam).

As part of its efforts to assist local jurisdictions on cooperative, regional activities, staff also initiated a northern California project with Fortuna, Ferndale and Rio Dell (and to a lesser degree with the Humboldt Waste Management Authority) to expand curbside programs, potentially site a facility for C&D materials, and work with the hauler to become a certified e-waste facility. Staff began working with local jurisdictions within Los Angeles County to inform them about the 2013 closure of Puente Hills Sanitary Landfill and the need to plan for new markets for greenwaste that is used for Alternative Daily Cover (ADC) at the facility. In Tulare County, staff is working with the nine jurisdictions within the Tulare Consolidated Waste Management Authority to develop a unified educational and outreach campaign.

Baseline
The baseline is the number of targeted businesses receiving RMDZ loans in 2007.

Metrics or Performance Criteria
Number of RMDZ loans made to new targeted businesses will serve as a metric.

Annual Targets
Revisit this Strategic Directive based on program evaluation.

Key Activities
This subdirective conflicts in part with subdirective 6.4, i.e., can the number of loans be increased if the loan cap is removed and funds are relatively static? Questions also have arisen about how the RMDZ program will function in the new organizational structure and about whether sufficient revenues will be available in future years to maintain the fund at current levels. As a result, staff plans to conduct an overall program evaluation for Board consideration in late 2007.

Progress on Targets
Staff initiated the Recycling Market Development Zone (RMDZ) Program Evaluation Project in September 2007 and reported to the Board in September 2008. Key findings and direction from the Board included:

• Pursue a statutory change to eliminate or change the sunset date.
• Continue to work with stakeholders and pursue legislation to develop a bifurcated loan cap (i.e., in which a specified percentage of available loan funds would be available for loans larger than the current $2 million cap).
• Conduct more research on the “microloan” concept (e.g., small loans or contract resources to start-up for activities such as product testing).
• Commence a new Zone Designation Cycle beginning in March 2009.
• Continue to support the Zone Administrator (ZA) training program.
• Work closely with ZAs to develop and implement a statewide marketing and outreach plan.
• Establish a new program to provide ZAs Zone Incentive Funds tied to performance metrics.
• Continue to support the concerted and focused effort to establish and maintain communication between ZAs, zone businesses, the Board, and Board program staff.

Pursuant to this direction, the Board has contracted with California State University at Sacramento to provide the logistical support for three times per year training for Zone Administrators and for the administration of Zone Incentive Fund payments to Zone Administrators. Program and Office of Public Affairs staff are developing marketing materials that can be used in the Zones, and a new Zone designation cycle will be brought to the Board in March 2009 for consideration.

In September 2008, the Board approved revised RMDZ loan criteria to better reflect Board priority materials and market barriers. Four loans were awarded in 2008, totaling more than $5.8 million; three went to businesses producing materials from scrap film plastic and the other went to a business that produces crumb rubber from waste tires.

Baseline
The baseline is the existing legislative provisions regarding loan cap.

Metrics or Performance Criteria
Governor-approved legislative proposal by October 2007.

Annual Targets
Revisit this Strategic Directive based on program evaluation (also see 6.3).

Key Activities
As noted in 6.3, staff intends to conduct an overall evaluation of the RMDZ loan program. This will include analysis of the impacts of removing the cap on the Board's ability to increase the number of RMDZ loans.

Progress on Targets
See SD 6.3

Baseline
There is no baseline for this sub-directive

Metrics or Performance Criteria<br /> The metrics will be the number and capacity of facilities

Annual Targets
Establish baseline by December 2007

Key Activities

• Define "infrastructure."
• Compile baseline information on material recovery facilities (MRF); recycling, composting, and other diversion facilities from in-house documents; MAAP projects; and targeted surveys of local governments, primary and secondary processors.
• Evaluate number and distribution of facilities in regions and state that would be needed to divert 10-20 million more tons of materials.

Progress on Targets
In 2008 the Board awarded a two-year contract to R.W. Beck to conduct the ambitious Baseline Inventory and Information Management Framework project (commonly known as the Infrastructure Project), with the following goals:

1. Facility Inventory. To develop a comprehensive inventory of California's solid waste handling, diversion, and market infrastructure to improve the amount and quality of critical information about existing disposal and diversion facilities,
2. Flow Model. To model material flows and forecast future facility needs and other infrastructure changes needed to handle changes in disposal and recycling due to population growth and/or selected policy change scenarios, and
3. User Interface. To make it easier for everyone to find, view, and understand infrastructure-related information on the CIWMB website so they can better plan for infrastructure growth and facility needs and evaluate diversion options.

Baseline
There is no existing database or system for gathering information from DGS on State procurement of EPPs. In addition, there is no standard definition of what constitutes an EPP. The EPP Task Force tracks state contracts that have incorporated language to better ensure the purchase of EPPs, but the Task Force and Board staff have been unable to obtain basic data on the use of these contracts or if the contracts are being implemented as intended.

With respect to Caltrans, information from its Construction database indicates that in 2006, Caltrans purchased 50,000 cubic yards of mulch and 20,000 cubic yards of compost.

Metrics or Performance Criteria
The metrics for this subdirective will need to be developed.

Board and DGS staff drafted a tracking and reporting plan but it has not yet been approved by DGS. It aims to start tracking the purchases of a few key products on a few contracts (computers, lamps, office copy paper, and vehicles), along with key activities such as training. Some of the products have associated calculators that could be used to estimate environment benefits such as reduction in greenhouse gas (GHG) emissions. Over time the tracking will expand and eventually, when an e-procurement system is established, the system will be fully automated and cover all state purchases.

Annual Targets
Year 1. Agreement with DGS and the State and Consumer Services Agency (SCSA) on concept for EPP measurement system and approval of an EPP Tracking and Reporting Plan.

Key Activities
The Board will work with DGS, and possibly the SCSA, to achieve this goal.

A key activity is to work with DGS and the Task Force to define what is "environmentally preferable" through the development of specification language and environmental performance standards, and/or the approval of existing standards.

Staff will work with DGS to identify what is to be tracked in bid documents and require vendors to submit data to a central location automatically. To accomplish this, DGS will need to implement an e-procurement system with the ability to track all state purchases (staff's intent is to incorporate EPP tracking into this system, rather than try to create a separate system given we do not have access to the data).

As this work is being done, staff will continue to work with DGS on "greening" individual state contracts and to train state agencies on the EPP best practices manual and EPP purchasing.

Progress on Targets
The CIWMB assisted the Department of General Services (DGS) by co-chairing the Environmentally Preferred Purchasing (EPP) Task Force for several years. With input and assistance from Board staff, DGS is developing an e-procurement system and intends to incorporate tracking of EPP into the system.

Additional Achievements

During the past two years DGS has institutionalized EPP, including establishing a statewide EPP point-person in the Division of Procurement and assigning two procurement engineers in the EPP section. As a result, the CIWMB's role has shifted in recent years from co-chairing the EPP Task Force to a coaching role to EPP Task Force participant. DGS has incorporated environmental language into several contracts and in partnership with the CIWMB and EPP Task Force developed an online EPP Best Practices Manual covering more than 40 products. The state's Contracting and Procurement Academy now offers a brief introduction to EPP for all purchasing officials throughout the state.

In addition, Board staff participated in the development of new state contracts for office furniture and personal computers, and prepared recommendations for a future pesticides contract (CIWMB emphasis was on the containers and pallets). CIWMB staff also continues to encourage DGS to update its web pages to identify state contracts with EP products and to update chapters of the EPP Best Practices Manual that support the CIWMB's mission.

Baseline
The baseline is current green building codes (local and state) and ordinances (local).

Metrics or Performance Criteria
Changes in State and local building codes; number of local construction and demolition (C&D) ordinances; and incorporation of green building standards in Proposition 1D funding will be used as metrics.

Annual Targets
Incorporate California High Performance School (CHPS) criteria as standard in Proposition 1D funding for high performance schools; draft of American National Standards Institute (ANSI)-accredited green building standard for building codes and Leadership in Energy and Environmental Design (LEED) requirements; increase number of local C&D ordinances.

Key Activities

• Identify existing green building codes.
• Work with California Building Standards Commission and other state agencies on Green Building Initiative to incorporate green building standards into California Building code.
• Work with Division of State Architect and Office of Public School Construction to ensure CHPS criteria is the standard for high performance school incentive funding under Proposition 1D.
• Participate in U.S. Green Building Council partnership to develop ANSI-accredited green building standard for building codes and LEED requirements.
• Work with local jurisdictions to increase number that have adopted and are implementing green building and C&D ordinances.
• Seek statutory authority to incorporate green building principles into residential building codes.

Progress on Targets
The Collaborative for High-Performance Schools (CHPS) criteria were incorporated as standard in Proposition 1D funding for high performance schools in October 2007. Also in 2007, CIWMB staff applied to be part of the ANSI national green building standard development team, but was not accepted. Staff did monitor the ANSI process, but the State's own green building code development process has resulted in greater benefits and progress toward implementing SD 6.7, and so staff has focused efforts there rather than in the ANSI process, as described below.

In July 2008, California became the first state in the nation to adopt Green Building Standards into the State building code. Staff worked closely with the Building Standards Commission staff on the most significant piece in this code which is Housing and Community Development’s provision for mandatory 50 percent diversion in all residential projects when the code becomes effective in 2011.

To date, there are 191 C&D diversion ordinances that have been adopted by local jurisdictions in the state, reflecting an increase from 178 in 2007. This includes 161 cities and counties and seven regional agencies. The seven regional agencies alone have 30 individual ordinances passed. There are also 13 C&D diversion policies in the state.