RENDERING PROGRAM UPDATE 85 th Annual PCRA Convention

RENDERING PROGRAM UPDATE 85 th Annual PCRA Convention March 4, 2017

Rendering Program Update • Rendering Industry Advisory Board Existing Revenues • New AB 655 Authority Re: Fees and Registration • Subcommittee Work • New Branch Chief • • Anaerobic Digestion and Composting in California • • Pre and Post Consumer Food Waste, Fats, Oils, Grease Always Highest and Best Use

Rendering Industry Advisory Board Jim Andreoli, Jr. ; Baker Commodities, Inc. Shawn Griffin, Darling International Inc. Spike Helmick, Public Member. Tyson Keever, Sequential Biofuels. Michael Koewler, Sacramento Rendering Company. Dan Stonesifer, Atlas Pumping Service. Jared Trawick; Imperial Western Products. Advise the Secretary and make recommendations on all matters regarding the program.

Current Rendering Program Revenues CDFA Rendering Enforcement Program Revenue - 2016 Category Type $100 $100 Revenue $1, 700 $2, 800 $4, 000 $29, 100 14 26 17 28 4 40 24 $100 $3, 000 $1, 500 $3, 000 (Maxed) $1, 400 $2, 600 $51, 000 $84, 000 $60, 000 $72, 000 Enforcement Fee 745 $300 $223, 500 Enforcement Fee 14 $75 $1, 050 $539, 550 Renderer IKG Renderer Collection Center IKG Transporter (Commercial) License Registration IKG Transporter (Personal) Dead Hauler Renderer IKG Renderer Collection Center IKG Transporter (Commercial) Registration Enforcement Fee Enforcement Fee IKG Transporter (Commercial) IKG Transporter (Personal) Total Number 17 28 4 40 291 Fee

AB 655 – Assemblyman Bill Quirk • Became Law January 1 st. • Raises registration and enforcement fee caps. • Fee increase requires formal recommendation of Rendering Industry Advisory Board to Secretary. • Allows CDFA to refuse IKG transport registration for up to three years based on violations or failure to pay fines. Directs CDFA to adopt regulations regarding process and enforcement.

AB 655 Fee Authority CDFA Rendering Enforcement Program AB 655 Authorized Fee Caps Category Renderer Collection Center IKG Transporter Dead Hauler Renderer Collection Center IKG Transporter (Commercial) IKG Transporter (Personal) Type Existing Fee Max Authorized Fee License Registration Enforcement Fee $100 $3, 000 $1, 500 $300 $100 $250 $10, 000 $500 Enforcement Fee $75 $125

Subcommittees • Budget Subcommittee Jim Andreoli, Jr. , Chair; Michael Koewler; Dan Stonesifer; & Tad Bell Strategic Direction; Operational Planning & Evaluation of Function & Activities • Enforcement Policy Subcommittee Just formed to address enforcement policy, e. g. enforcement matrix, registration refusal, due process and any necessary regulation needs.

New Branch Chief • Replacing Dr. Hepper – who retired in December 2016. • Interview Panel will include Chairs of the Branch’s Industry Advisory Boards. • Interviews targeted late this month.

46 Digesters and Composters Permitted to Process Pre & Post Consumer Food Waste

Just Digesters East Bay Municipal Utilities District Operational Oakland Food, Biosolids, fats, oils, and grease Inland Empire Utilities Agency – Environ Chino Food waste & Biosolids Monterey Zero Waste Energy Marina Green and Food waste Clean World - American River Sacramento Food Waste, cardboard & other Compton San Rafael Food Waste Food waste & Biosolids Sacramento Green and Food waste Zero Waste Energy Development San Jose Green and Food waste North State Rendering Los Angeles Sanitation Districts AD Oroville Carson Agricultural, food waste and grease Food waste & Biosolids UC Davis Renewable Energy AD Blue Line Zero Waste Energy CR&R Material Recovery Facility Davis South San Francisco Perris Green and Food waste & manure Green and Food waste Hill Canyon Wastewater Treatment Plant Victor Valley Wastewater Reclamation Auth. Camarillo Victorville Still Permitting Tulare Kroger/Ralphs - Compton Distribution Center Central Marin Food to Energy Clean World - Sacramento Digester Colony Energy Partners Agromin Zero Waste Energy Tajiguas Resource Recovery Project Food waste & Biosolids Waste Organics Oxnard Santa Barbara County Green and Food waste American Canyon Green and Food waste Anaergia - Republic Material Recovery Facility Scholl Canyon Landfill AD Project Anaheim Glendale Green and Food waste Encina Waste Water Plant Carlsbad Food, Biosolids, fats, oils, and grease San Luis Obispo County Green and Food Waste City of Napa Materials Recovery Facility San Luis Obispo Kompogas AD Facility

Different Kind of Drought: $$$

Always Highest and Best Use

Outstanding Legislative Issues • Transportation AB 1, SB 1 – lead trans legislation 20 cent increase in diesel fuel, Indexed to CPI Transfers back 50% weight fees Begins July 1, 2017 Vote April 6 th

Leg Issues Cont. Organic Recycling Legislature continues to review the issue • Implementing AB 901 regulations, manifesting organic waste, tracking, monitoring to prevent impact on rendering • Maintain CDFA jurisdiction • Highest and best use • Greenhouse Gas Reductions Cap and Trade – AB 155 (Burke and Cooper) Low Carbon Fuel Standard – budget trailer bill?

Leg Issues cont. • CDFA enforcement and funding • Maintain adequate enforcement, new staff, may explore legislative fixes Other issues: Water Quality – Major Issue for livestock and processors Air Quality – Reauthoring local programs for trading and emission control Waste to energy – biomass, renewable fuels, renewable electricity

QUESTIONS?