Organic Recycling

Organics Collection  Starting July 2022

Senate Bill 1383 (2016) requires all of California to separate food scraps and food-soiled paper from their garbage that would otherwise go to the landfill.  This change will reduce the production of greenhouse gasses that cause climate change and reduce waste going to landfills. Learn more about Senate Bill 1383

Starting on July 1, 2022, organic waste (food scraps, food-soiled paper, and green waste – grass, leaves, prunings) will go together in the green organics cart.  It's the same  material, same collection timeframe, just a different cart!

What is Organic Waste?organics items

  • Food Scraps, Coffee Grounds, Tea Bags
  • Food-Soiled Paper Products
    • Pizza Boxes, Napkins, Coffee Filters,
    • Egg + Paper Cartons, To-go Bags + Boxes
    • (no Styrofoam or Plastic)
  • Green Waste
  • Landscape + Pruning, Leaves, Flowers, Sludge
  • Lumber, Wood

Printable Resources

Senate Bill 1383 Frequently Asked Questions

Is this Bill mandated to all municipalities?
Yes, all California municipalities are required to comply with the SB 1383 regulations or face potential enforcement action and penalties issued by CalRecycle.  However, a municipality may apply for a Rural, Elevation, or Low-Population waiver from the organic waste collection requirements (none of which applies to the City of Elk Grove).  Rural, elevation, and low-population jurisdictions have a small organic waste footprint and face significant challenges to collect organic material. These jurisdictions can apply to the department for a waiver from the organic waste collection requirements that are outlined in Article 3 (14 CCR 18984 – 18984.14). Jurisdictions that receive a department-issued waiver will still contribute to the state’s organic waste recovery targets by implementing other sections of the regulations.
Where in the legislation is the increased cost for this program funded?
SB 1383 legislation is not funded by the State, but does include the following language:

Chapter 13.1. Short-Lived Climate Pollutants
42652.5. (a) The department*, in consultation with the State Air Resources Board, shall adopt regulations to achieve the organic waste reduction goals for 2020 and 2025 established in Section 39730.6 of the Health and Safety Code. The regulations shall comply with all of the following:
“…(b) A local jurisdiction may charge and collect fees to recover the local jurisdiction’s costs incurred in complying with the regulations adopted pursuant to this section.”

The SB 13838 regulations, which were adopted by the *California Department of Resources Recycling and Recovery (CalRecycle), allows for the jurisdiction to fund actions to comply with the law through franchise fees, local assessments, or other funding mechanisms (For example, Section 18991.1 (b)). 
Legislation is being directly passed by local governments, why is this action not considered a direct levy or otherwise a direct tax?
Refuse rates, where the costs of SB 1383 implementation are included, are considered a property related fee under Proposition 218 as they are a service that is used by or immediately available to the property owner.  To impose a new or increased property-related fee, local governments must make sure that no property owner's fee is greater than the proportionate cost to provide the property-related service to his or her parcel.

Local governments must also:
  • Mail information regarding the proposed fee to every property owner.
  • Hold a hearing at least 45 days after the mailing.
  • Reject the proposed fee if written protests are presented by a majority of the affected property owners.

All the above steps are being taken by the City of Elk Grove in regard to the proposed rate increase.

Did Republic provide the City with a justification for the proposed increase? If so, what items are included in the justification?
Yes, the City received a justification from Republic for the proposed increase.  The justification included items such as SB 1383 compliance costs for additional drivers, container auditing staff and associated costs such as insurance; organic waste processing costs; equipment (additional trucks for new routes) and associated costs such as parts and fuel; outreach, education and reporting costs and associated staff. 
Since SB 1383 was signed into law by the Governor, has any local authority challenged this cost being passed onto taxpayers? 

We are unaware of any single municipality that has challenged the costs to implement SB 1383, however, the League of California Cities (LCC), on behalf of municipalities throughout the state, urged CalRecycle to develop funding sources to ease the burden on municipalities and their businesses and residents.  The LCC also urged CalRecycle to delay the January 1, 2022 compliance deadline, which likely contributed to Senate Bill 619 being signed into law.  SB 619 provided municipalities the opportunity to submit a plan to CalRecycle for an alternate compliance schedule and Notice of Intent to Comply, meant to provide some protections against administrative penalties for non-compliance in 2022.  As noted in the answer to question #1, CalRecycle has provided some annual grant funding that will help offset some of the costs to the City to implement SB 1383. 

An excerpt from one of LLC’s comment letters is provided below.

"Funding:  Insufficient state and local funding continue to be among the major challenges local governments face in implementing new organic waste diversion programs. The League, for example, has urged for a number of years that state “Cap-and-Trade” proceeds be used to help offset the costs for developing organic waste recycling infrastructure. More state dollars are needed for local governments to successfully implement all of the provisions of these regulations. Cities recognize that local dollars are also needed, however, cities face challenges in raising local revenues.  These regulations assume that local governments have the ability to raise their rates to generate the resources needed to implement this bill. However, CalRecycle should not rely on the fee authority granted to local jurisdictions in SB 1383 alone, because local governments do not have unrestrained authority to impose costs on waste generators and must comply with the requirements of the California Constitution.”

How is the annual inflationary adjustment calculated, and by whom? Up until recently, the inflation rate was modest – so the inflation adjustment should be aligned with current inflation, not projected.

The annual inflationary adjustment calculation, which is calculated by the City, is described further in this answer.  It is important to note that in addition to the annual inflationary increase, the July 1, 2022 rates include a rate increase to reflect additional costs for deployment of the new Organic Materials Collection program and SB 1383 requirements as stated in Section 8.2A of the Franchise Agreement.  This was an increase specifically for implementation of new SB 1383 Programs and is why this increase is more than the regular annual inflationary increases previously implemented. 

Republic has over $3M in additional costs associated with the increase in services.  These additional costs include changes from every other week collection of the yard waste cart to a weekly collection of organic waste, additional staffing and equipment costs, SB1383 outreach costs, contamination monitoring, and organics processing costs. 

For future inflationary rate increases, the methodology is stated in the Franchise Agreement Exhibit D1 2:
The index-based adjustment involves application of the Annual Percentage Change of the CPI-G to the existing Rate to determine Rates for the coming Rate Period. As further described in Section 2.A of Exhibit D, in the event that the index-based adjustment as calculated by this Exhibit D1 results in an Annual Percentage Change of less than two percent (2%), the Rates shall be adjusted by no less than two percent (2%). In the event that the index-based adjustment as calculated by this Exhibit D1 results in an Annual Percentage Change of more than three percent (3%), the Rates shall be adjusted by no more than three percent (3%).

The contract also allows for other rate adjustments in Section 8.3 of the Franchise Agreement, specifically for Extraordinary Rate Adjustments, and reads as follows:
If a Change in Law or City-directed change in scope occurs, the Contractor may petition City for an adjustment to the Rates in excess of the annual adjustment described in Section 8.2.  If a request for an Extraordinary Rate Adjustment is made Republic must prepare an application for an Extraordinary Rate adjustment. The City Contract Manager shall have access to the financial statements and accounting records required to be maintained by Republic  in order to determine the reasonableness of the Republic’s application.  The City or Republic, as the case may be, shall have the burden of demonstrating the reasonableness of the requested adjustment.

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