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SD-6: Market Development

This page provides information on the CIWMB's Strategic Directive 6 (SD-6). Each of the seven subdirectives links to further explanation including baseline measurement, metrics or performance criteria, annual targets, and key activities.

Directive
It is a core value of the CIWMB to assist in the development of viable, sustainable markets to divert materials from landfills and encourage source reduction and recycling, in accordance with the waste management hierarchy and in support of the California Global Warming Solutions Act of 2006.

Specifically, the CIWMB will:

  1. Reduce the amount of organics in the waste stream by 50 percent by 2020.
  2. Complete and report on the Market Assessment Action Plan (MAAP) pilot study by June 30, 2007.
  3. Show a 15 percent increase in Recycling Market Development Zone (RMDZ) loans to companies and markets prioritized in the MAAP study.
  4. Seek statutory authority to remove the RMDZ loan cap by 2008.
  5. Annually report to CIWMB Board members on developments in market infrastructure.
  6. Increase environmentally responsible procurement by state agencies by 10 percent per year.
  7. Incorporate green building principles in all applicable California building codes.

6.1--Reduce the amount of organics in the waste stream by 50 percent by 2020.

This subdirective addresses the largest category of disposed materials. The compostable portion of organic materials constitutes approximately 30 percent, or about 15 million tons, of what is disposed. Paper and the woody portion of construction and demolition (C&D) debris constitute another 15 or so million tons. Cutting these amounts in half will necessitate developing perhaps 50-100 new facilities (or equivalent expansion of existing facilities) that produce compost, biofuels, and/or bioenergy; increased development of product standards and increased procurement by private and public entities; and resolution of cross-agency regulatory issues.

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.

6.2--Complete and report on the Market Assessment Action Plan (MAAP) pilot study by June 30, 2007.

Building on experience from the first pilot in Marin County, staff has streamlined the initial MAAP approach in order to obtain more relevant data on the flow and quantities of priority materials in a given region, as well as to work with stakeholders on identifying targeted opportunities for collaborative projects to enhance regional markets. This type of targeted approach is a primary component of the Board's reorganization, particularly in the Local Assistance and Market Development Division.

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.

6.3--Show a 15 percent increase in Recycling Market Development Zone (RMDZ) loans to companies and markets prioritized in the MAAP study.

This is oriented towards increasing loans to businesses that use priority materials and that help address market barriers and opportunities identified in the MAAP approach and related regional targeting projects.

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.

6.4--Seek statutory authority to remove RMDZ loan cap by 2008.

Given the capital-intensive nature of processing, recycling, and composting facilities, this subdirective would focus on developing a legislative proposal to remove the loan cap if research determines that the cap is a hindrance to applicants obtaining financing for their projects.

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.

6.5--Annually report on developments in market infrastructure.

To ensure sufficient recyclables will be available for increased diversion and regional markets, adequate collection and processing facilities need to be in place. As noted in subdirective 6.1, this will necessitate the development throughout the state of dozens of new or expanded facilities. (This in turn is dependent on local siting decisions and ability to finance new facilities; subdirective 8.5 focuses on assisting local decision makers in long-range planning to help develop this diversion infrastructure and ensure that it keeps pace with growth and changes in waste sheds.) To assess whether the infrastructure is adequate, board staff annually will verify existing infrastructure and make recommendations in an annual status report to the Board.

Baseline
There is no baseline for this sub-directive

Metrics or Performance Criteria
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.

6.6--Increase environmentally responsible procurement by State agencies by 10 percent per year

The State exerts influence on the marketplace through its procurement practices. The Board has long worked with the Department of General Services (DGS) on procurement of recycled-content products, and over the last few years this has been expanded in response to a Governor's Executive Order and legislation to include the multiple attributes of "environmentally preferable products" (EPP), which can result in improved decision making. The Board has a bigger voice in the development of procurement policies when it is engaged in these broader initiatives. This subdirective seeks to increase State procurement of EPPs.

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.

6.7--Incorporate green building principles in all applicable California building codes

Incorporating green building principles in building codes would significantly increase the use of recycled-content products in buildings and decrease waste generation associated with construction and demolition. The Board has played an important role in the development of state and national green building initiatives and now is in a key position to support focused initiatives to further develop and incorporate green building principles and standards into building codes and proposition funding.

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 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.

SD-5 | Strategic Directives Home Page | SD-7

 

Last updated: July 10, 2008


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