First Regular Session Seventy-fourth General Assembly STATE OF COLORADO REVISED This Version Includes All Amendments Adopted on Second Reading in the Second House LLS NO. 23-0839.01 Josh Schultz x5486 SENATE BILL 23-191 Senate Committees House Committees Agriculture & Natural Resources State, Civic, Military, & Veterans Affairs Appropriations Appropriations A BILL FOR AN ACT C ONCERNING A STUDY REGARDING DIVERSION OF ORGANIC MATERIALS101 FROM LANDFILLS.102 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) The bill requires the department of public health and environment (department) to study the impacts, benefits, and feasibility of requiring diversion of organic materials from landfills. The organics diversion study (study) must: ! Incorporate and utilize data contained in the statewide organics management plan and other existing Colorado HOUSE 2nd Reading Unamended May 1, 2023 SENATE 3rd Reading Unamended April 12, 2023 SENATE Amended 2nd Reading April 11, 2023 SENATE SPONSORSHIP Cutter, Buckner, Coleman, Exum, Fenberg, Fields, Ginal, Gonzales, Hansen, Jaquez Lewis, Marchman, Moreno, Priola, Roberts, Rodriguez, Sullivan, Winter F. HOUSE SPONSORSHIP Joseph and Kipp, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. studies and research from other states; ! Explore how to leverage existing organics diversion pilot projects in Colorado to inform implementation of broader organics diversion projects across the state; ! Evaluate the environmental benefits of diversion of organic materials from landfills; ! Review and identify the infrastructure needed to enable diversion of organic materials from landfills and create a plan for infrastructure development; ! Create actionable parameters for local governments to use to determine if, where, and what types of organics processing infrastructure is needed and basic toolkits to help local governments build the infrastructure; ! Create a timeline to effectively and equitably phase in required diversion of organic materials from landfills by region using the 4 regions of the state as identified in the state organics management plan; ! Outline and recommend policies and regulations that would enable diversion of organic materials from landfills; ! Assess informational resources necessary to enable diversion of organic materials from landfills; and ! Identify opportunities for end-market development of organic materials diverted from landfills. On or before August 1, 2024, the department is required to submit a report of the study's research and findings to specified committees of reference in the senate and the house of representatives. The bill authorizes the use of money in the front range waste diversion cash fund and the recycling resources economic opportunity fund to pay for costs associated with conducting the study. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Legislative declaration. (1) The general assembly2 finds and declares that:3 (a) Thirty-seven percent of the material that is landfilled in4 Colorado is organic material, including yard trimmings and food scraps,5 that could have been diverted from landfills through food donation,6 composting, or mulching. These diversion practices reduce greenhouse7 gas emissions, support resilient local economies, create green jobs, and,8 191-2- in the case of compost, build healthy soils, conserve water, and create1 more productive agricultural lands.2 3 (b) The statewide organics management plan (plan) commissioned4 by the department of public health and environment (department) found5 that the "untapped demand for finished compost is potentially five times6 greater than the amount of compost being produced today." The plan also7 found that "[E]conomics, awareness, and lack of existing infrastructure8 are the greatest barriers to increased organics recovery in Colorado."9 Additionally, the plan stated that "[T]he [department] should work to gain10 interagency cooperation to implement strategies that lead to development11 of organics infrastructure and end-market use of compost." These12 findings underscore the timely need and opportunity to increase13 investment to divert more organic materials out of landfills and back into14 the circular economy. The plan highlighted the need for the construction15 and operation of more compost processing facilities to realize the16 potential cost savings, job creation, and agricultural and environmental17 benefits of diverting organic materials.18 19 (2) The general assembly further declares that the department20 should conduct a study that:21 (a) Evaluates policies intended to divert organic materials from22 landfills and into beneficial usages;23 24 (b) Creates actionable parameters for determining if, where, and25 what types of infrastructure are needed and provides a proposed timeline26 and basic toolkit for infrastructure development for each region of the27 191 -3- state;1 (c) Generates a summary report outlining the options for future2 policies to increase organics diversion;3 (d) Recommends policies that will incentivize and support the use4 of compost certified by the United States composting council's seal of5 testing assurance program; and6 (e) Is completed by August 1, 2024, so that further legislation can7 be implemented to realize the benefits of increased organics diversion8 across the state beginning in 2025.9 SECTION 2. In Colorado Revised Statutes, add part 8 to article10 17 of title 25 as follows:11 PART 812 ORGANICS DIVERSION13 25-17-801. Definitions. A S USED IN THIS PART 8, UNLESS THE14 CONTEXT OTHERWISE REQUIRES :15 (1) "C OLORADO REGION" MEANS EACH OF THE FOUR GEOGRAPHIC16 REGIONS IDENTIFIED IN THE SOMP, WHICH ARE THE WESTERN SLOPE ,17 MOUNTAINS, FRONT RANGE, AND EASTERN PLAINS.18 (2) "C OMMISSION" MEANS THE SOLID AND HAZARDOUS WASTE19 COMMISSION CREATED IN THE DEPARTMENT IN SECTION 25-15-302.20 (3) "D EPARTMENT" MEANS THE DEPARTMENT OF PUBLIC HEALTH21 AND ENVIRONMENT CREATED IN SECTION 25-1-102.22 (4) "L OCAL GOVERNMENT" MEANS A HOME RULE OR STATUTORY23 CITY, COUNTY, OR CITY AND COUNTY OR A SPECIAL DISTRICT FORMED24 UNDER TITLE 32.25 (5) "O RGANIC MATERIALS" OR "ORGANICS" MEANS ANY SOLID26 WASTE THAT IS A BIOLOGICAL SUBSTANCE OF PLANT OR ANIMAL ORIGIN ,27 191 -4- INCLUDING FOOD SCRAPS AND YARD TRIMMINGS , THAT CAN BE BROKEN1 DOWN THROUGH BIOLOGICAL PROCESSES .2 (6) "SOMP" MEANS THE STATEWIDE ORGANICS MANAGEMENT3 PLAN COMMISSIONED BY THE DEPARTMENT AND DATED AUGUST 29, 2022.4 (7) "S TUDY" MEANS THE ORGANICS DIVERSION STUDY REQUIRED5 BY SECTION 25-17-802.6 25-17-802. Organics diversion study - report - funding.7 (1) T HE DEPARTMENT SHALL CONDUCT OR CAUSE TO BE CONDUCTED A8 STUDY THAT EXPLORES WHAT LOCAL GOVERNMENTS , OTHER STATE9 AGENCIES, AND OTHER STATES ARE DOING TO FACILITATE THE DIVERSION10 OF ORGANIC MATERIALS FROM LANDFILLS AND CREATES POLICY AND11 LEGISLATIVE RECOMMENDATIONS , INCLUDING THE FEASIBILITY OF12 REQUIRING DIVERSION OF ORGANIC MATERIALS FROM LANDFILLS IN13 C OLORADO.14 (2) T HE DEPARTMENT AND ANY THIRD PARTY CONDUCTING THE15 STUDY PURSUANT TO SUBSECTION (5) OF THIS SECTION SHALL ENGAGE16 WITH AND SEEK INPUT FROM STAKEHOLDERS THAT HAVE EXPERTISE AND 17 INTEREST IN ORGANICS DIVERSION.18 19 (3) T HE STUDY MUST, AT A MINIMUM:20 (a) I NCORPORATE AND UTILIZE DATA CONTAINED IN THE SOMP,21 OTHER EXISTING COLORADO STUDIES, AND RESEARCH FROM OTHER22 STATES;23 (b) R EVIEW AND IDENTIFY HOW TO LEVERAGE EXISTING ORGANICS24 DIVERSION PROJECTS IN COLORADO TO INFORM IMPLEMENTATION OF25 BROADER ORGANICS DIVERSION PROJECTS THROUGHOUT COLORADO;26 (c) C ONSIDER THE COSTS, FEASIBILITY, AND BENEFITS OF27 191 -5- DIVERSION POLICIES FOR BOTH YARD TRIMMINGS AND FOOD SCRAPS . THE1 REPORT MAY EVALUATE THE FEASIBILITY AND BENEFITS OF POLICIES2 AIMED AT INCREASING DIVERSION OF YARD TRIMMINGS INDIVIDUALLY AND3 FOOD SCRAPS INDIVIDUALLY OR EVALUATE BOTH COMBINED .4 (d) R EGARDING THE BENEFITS OF DIVERSION OF ORGANIC5 MATERIALS FROM LANDFILLS:6 (I) E VALUATE THE POTENTIAL TO EXTEND THE LIFE OF LANDFILLS7 BY REDUCING THE AMOUNT OF ORGANIC MATERIALS LANDFILLED ;8 (II) E VALUATE THE GREENHOUSE GAS EMISSION AVOIDANCE OF9 DIVERTING ORGANIC MATERIALS FROM LANDFILLS ; AND10 (III) E VALUATE THE WATER SAVINGS POTENTIAL OF APPLYING11 FINISHED COMPOST TO COLORADO SOILS;12 (e) R EGARDING THE INFRASTRUCTURE NEEDED TO ENABLE13 DIVERSION OF ORGANIC MATERIALS FROM LANDFILLS :14 (I) C REATE ACTIONABLE PARAMETERS TO CONSIDER IF AND WHAT15 TYPE OF FACILITIES ARE NEEDED TO PROCESS ORGANIC MATERIALS AND16 WHERE THE FACILITIES SHOULD BE LOCATED . PARAMETERS MAY INCLUDE17 POPULATION DENSITY, MATERIAL TYPE AND VOLUME GENERATION ,18 DISTANCE TO EXISTING INFRASTRUCTURE , ACCESS TO TRANSPORTATION19 INFRASTRUCTURE, AND POTENTIAL FOR COLOCATING WITH ANOTHER20 FACILITY, INCLUDING A LANDFILL, TRANSFER STATION, OR RECYCLING 21 FACILITY.22 (II) P ROVIDE A PLAN FOR HOW INFRASTRUCTURE MAY BE FUNDED23 AND CREATE A TIMELINE FOR INFRASTRUCTURE DEVELOPMENT . THE PLAN24 MUST INCLUDE BEST PRACTICES FROM OTHER STATES THAT HAVE25 INCENTIVIZED OR FACILITATED DEVELOPMENT OF ORGANICS PROCESSING26 INFRASTRUCTURE.27 191 -6- (III) DETERMINE THE BEST METHODS FOR COLLECTING ORGANIC1 MATERIALS BASED ON THE MATERIALS , GENERATORS, POPULATION2 DENSITY, AND TYPES OF COLLECTION FACILITIES AND VEHICLES ;3 (IV) D ETERMINE THE SORTING INFRASTRUCTURE , POLICIES, OR4 OTHER MECHANISMS REQUIRED TO REDUCE CONTAMINATION AND SORT5 OUT REMAINING CONTAMINANTS ;6 (V) (A) C OMPARE THE DISTANCES REQUIRED TO TRANSPORT7 ORGANIC MATERIALS TO LANDFILLS BY COLORADO REGION VERSUS8 CURRENT AND POTENTIAL DISTANCES REQUIRED TO TRANSPORT ORGANIC9 MATERIALS TO PERMITTED COMPOSTING OPERATIONS ; AND10 (B) U TILIZE THE INFORMATION GATHERED REGARDING THE11 DISTANCES TO DEVELOP RECOMMENDATIONS TO MINIMIZE EMISSIONS AND12 TRANSPORTATION COSTS; 13 (VI) E VALUATE THE BENEFITS OF INCREASING ORGANICS14 PROCESSING CAPACITY AND THE FUNDING , INFRASTRUCTURE, AND15 REGULATORY CHANGES NEEDED TO BUILD OUT NECESSARY16 INFRASTRUCTURE WITHIN EACH COLORADO REGION; AND 17 18 (VII) D ETERMINE HOW TO BEST SERVE AREAS WITH LOW19 POPULATION DENSITY AND THOSE AT HIGH ALTITUDES . THE STUDY20 SHOULD EXAMINE DIFFERENT TYPES OF COMPOSTING INFRASTRUCTURE ,21 INCLUDING IN-VESSEL COMPOSTING AND ANAEROBIC DIGESTION .22 23 (f) REGARDING POLICIES AND REGULATIONS TO ENABLE DIVERSION24 OF ORGANIC MATERIALS FROM LANDFILLS :25 (I) W HERE APPROPRIATE TO SUPPORT DIVERSION OF ORGANIC26 MATERIALS FROM LANDFILLS, RECOMMEND UPDATES OR AMENDMENTS TO27 191 -7- EXISTING STATE REGULATIONS TO BEST ACCOMMODATE , IMPLEMENT,1 MONITOR, AND ENFORCE ANY PROPOSED ORGANICS DIVERSION POLICIES ;2 (II) R ECOMMEND DIVERSION GOALS BY COLORADO REGION TO THE3 COMMISSION AND, IF NEEDED, UPDATES TO GOALS IDENTIFIED IN THE4 COMMISSION'S INTEGRATED SOLID WASTE AND MATERIALS MANAGEMENT5 PLAN; AND6 (III) R EVIEW AND IDENTIFY HOW OTHER STATES MONITOR AND7 ENFORCE DIVERSION POLICIES AT LOCAL AND STATE LEVELS;8 (g) REGARDING EDUCATION AND LOCAL SUPPORT TO ENABLE9 DIVERSION OF ORGANIC MATERIALS FROM LANDFILLS :10 (I) D ETERMINE THE INFORMATIONAL RESOURCES THE DEPARTMENT11 AND OTHER STATE AGENCIES SHOULD DEVELOP FOR LOCAL GOVERNMENTS12 TO USE TO FACILITATE DEVELOPMENT OF ORGANICS PROCESSING13 FACILITIES NEEDED FOR DIVERTING YARD TRIMMINGS AND OTHER ORGANIC14 MATERIALS. INFORMATIONAL RESOURCES MAY INCLUDE MODEL15 ORDINANCES, SAMPLE SITING GUIDELINES, RESOURCES FOR FUNDING ,16 EDUCATIONAL MATERIALS , RESOURCES ON FOOD DONATIONS , AND AN17 ACCESSIBLE MAP OF WHERE ORGANICS PROCESSING FACILITIES ARE18 LOCATED IN COLORADO.19 (II) D ETERMINE THE EDUCATION NEEDED TO ENSURE RESIDENTS20 AND BUSINESSES UNDERSTAND THE VALUE AND OPERATIONS OF OR GANICS21 DIVERSION PROGRAMS; AND22 (III) R EVIEW AND IDENTIFY HOW OTHER STATES HAVE EDUCATED23 MUNICIPALITIES, BUSINESSES, AND RESIDENTS ABOUT ORGANICS24 DIVERSION; 25 (h) REGARDING END-MARKET DEVELOPMENT OF ORGANIC26 MATERIALS DIVERTED FROM LANDFILLS :27 191 -8- (I) EVALUATE HOW TO COMBINE THE GOAL OF DIVERTING ORGANIC1 MATERIALS FROM LANDFILLS WITH CREATING RESOURCES FOR2 END-MARKET DEVELOPMENT , INCLUDING FOR PRODUCTION OF COMPOST ,3 MULCH, AND BIOCHAR;4 (II) R EVIEW AND IDENTIFY INTERDEPARTMENTAL OPPORTUNITIES5 FOR PARTNERSHIPS IN DEVELOPING USAGE REQUIREMENTS FOR STATE 6 AGENCIES FOR DIVERTED ORGANIC MATERIAL END PRODUCTS , INCLUDING7 PUBLIC WORKS PROJECTS, EROSION CONTROL, WILDFIRE MITIGATION AND8 POST-FIRE REHABILITATION, AGRICULTURAL APPLICATION OF COMPOST ,9 AND MINE OR OTHER RECLAMATION PROJECTS ; 10 (III) R EVIEW AND IDENTIFY HOW OTHER STATES HAVE DEVELOPED11 END MARKETS FOR ORGANIC MATERIAL USAGE AND INCENTIVIZED END12 USAGE;13 14 (IV) REVIEW AND IDENTIFY THE BENEFITS OF DIVERTING15 MATERIALS FROM LANDFILLS, INCLUDING USING ORGANIC RESIDUALS TO16 MAKE COMPOST AND OTHER PRODUCTS IN ORDER TO BUILD SOIL THAT17 PROVIDES THE ECOSYSTEM SERVICES OF SEQUESTERING CARBON ,18 REDUCING WATER NEEDS, AND PROVIDING RESILIENCE; AND19 (V) DETERMINE WHETHER THERE IS A SIGNIFICANT VOLUME OF20 COMPOST, BIOCHAR, AND MULCH SOLD IN COLORADO THAT IS PRODUCED21 OUT OF STATE; 22 (i) REGARDING THE IMPACTS SPECIFIC TO COLORADO OF23 DIVERTING MATERIALS FROM LANDFILLS :24 (I) R EVIEW AND IDENTIFY BEST PRACTICES IN COMPOSTING LARGE25 QUANTITIES OF WOODY MATERIALS IN AN ARID CLIMATE AND AT HIGH26 ALTITUDES, INCLUDING RESEARCHING TECHNIQUES SUCH AS BIOCHAR27 191 -9- PRODUCTION AND UTILIZATION , MYCELIUM INOCULATION , AND OTHER1 ACCELERATED COMPOSTING METHODS THAT CAN HELP BREAK DOWN2 ORGANIC MATERIALS OUTSIDE THE CONFINES OF INDUSTRIAL COMPOST3 FACILITIES AS OFTEN OCCURS IN RURAL AREAS;4 (II) R EVIEW AND IDENTIFY HOW TO ADDRESS THE POTENTIAL5 OVERSTOCK OF ORGANIC MATERIALS AWAITING PROCESSING ; AND 6 (III) R EVIEW AND IDENTIFY BEST PRACTICES FOR DIVERTING7 ORGANIC MATERIALS IN COMMUNITIES WITH TOURISM -BASED ECONOMIES8 THAT EXPERIENCE LARGE INFLUXES OF VISITOR-GENERATED FOOD SCRAPS9 DURING SPECIFIC PERIODS THROUGHOUT THE YEAR ; AND10 11 (j) REGARDING FUNDING SOURCES TO ENABLE DIVERSION OF12 ORGANIC MATERIALS FROM LANDFILLS :13 (I) R EVIEW AND IDENTIFY POTENTIAL FUNDING SOURCES TO14 SUPPORT DEVELOPMENT OF COLLECTION , CONTAMINATION REDUCTION ,15 AND PROCESSING INFRASTRUCTURE . POTENTIAL FUNDING SOURCES MAY16 INCLUDE EXISTING STATE FUNDS, INCLUDING THE FRONT RANGE WASTE17 DIVERSION CASH FUND CREATED IN SECTION 25-16.5-111 (4), THE18 RECYCLING RESOURCES ECONOMIC OPPORTUNITY FUND CREATED IN19 SECTION 25-16.5-106.5, AND THE COLORADO ECONOMIC DEVELOPMENT20 FUND CREATED IN SECTION 24-46-105; GRANTS FROM OTHER STATE21 AGENCIES, INCLUDING THE DEPARTMENT OF LOCAL AFFAIRS CREATED IN22 SECTION 24-1-125; FEDERAL FUNDS ; AND GENERATOR - OR23 PRODUCER-FUNDED PROGRAMS.24 (II) R EVIEW AND IDENTIFY POTENTIAL FUNDING SOURCES OR FEES25 THAT CAN BE INCREASED OR IMPROVED TO ENCOURAGE OR ENABLE26 DIVERSION OF ORGANIC MATERIALS FROM LANDFILLS AND PROVIDE27 191 -10- INCREASED RESOURCES NEEDED FOR INFRASTRUCTURE AND PROGRAM1 DEVELOPMENT IN ALL COLORADO REGIONS, INCLUDING IN RURAL AND2 UNDERSERVED COMMUNITIES ; AND3 (III) R EVIEW AND IDENTIFY PROGRAMS IN OTHER STATE AGENCIES4 THAT OVERLAP WITH DIVERSION OF ORGANIC MATERIALS FROM LANDFILLS ,5 INCLUDING PUBLIC WORKS PROJECTS , EROSION CONTROL, WILDFIRE6 MITIGATION AND POST -FIRE REHABILITATION , AGRICULTURAL7 APPLICATION OF COMPOST, AND MINE OR OTHER RECLAMATION PROJECTS .8 (4) O N OR BEFORE AUGUST 1, 2024, THE DEPARTMENT SHALL9 SUBMIT A REPORT TO THE AGRICULTURE AND NATURAL RESOURCES10 COMMITTEE AND THE TRANSPORTATION AND ENERGY COMMITTEE OF THE11 SENATE AND THE AGRICULTURE , WATER, AND NATURAL RESOURCES12 COMMITTEE AND THE ENERGY AND ENVIRONMENT COMMITTEE OF THE13 HOUSE OF REPRESENTATIVES , OR THEIR SUCCESSOR COMMITTEES . THE14 REPORT MUST INCLUDE THE STUDY 'S RESEARCH, FINDINGS, AND15 RECOMMENDATIONS , IN ACCORDANCE WITH SUBSECTION (3) OF THIS16 SECTION.17 (5) (a) T HE DEPARTMENT MAY CONTRACT A THIRD PARTY TO18 CONDUCT PART OR ALL OF THE STUDY .19 (b) T HE DEPARTMENT MAY COMBINE FUNDING WITH OTHER STATE20 AGENCIES TO HIRE A THIRD PARTY TO CONDUCT THE STUDY .21 25-17-803. Repeal of part. T HIS PART 8 IS REPEALED, EFFECTIVE22 J ULY 1, 2025.23 SECTION 3. In Colorado Revised Statutes, 25-16.5-106.5,24 amend (2)(b) as follows:25 25-16.5-106.5. Recycling resources economic opportunity fund26 - creation - repeal. (2) The money generated pursuant to subsection (1)27 191 -11- of this section is annually appropriated to the department:1 (b) To fund studies pursuant to sections 25-16.5-105 (1)(i),2 25-16.5-112 (2), and 25-16.5-113, AND 25-17-802, and to make3 reimbursements pursuant to section 25-16.5-106.7 (6.5); and4 SECTION 4. In Colorado Revised Statutes, 25-16.5-111, amend5 (3)(a); and add (3)(c)(VIII) and (4)(b)(VI) as follows:6 25-16.5-111. Front range waste diversion enterprise -7 legislative declaration - fund - goals - grant program - personal8 property tax reimbursements - gifts, grants, or donations - definitions9 - repeal. (3) Enterprise. (a) There is hereby created in the department10 the front range waste diversion enterprise. The enterprise is and operates11 as a government-owned business within the department for the purpose12 of collecting the fee charged to waste generators and using the fee to13 provide grants and technical assistance AND PAY FOR STUDIES to promote14 waste diversion. The enterprise is a type 1 entity, as defined in section15 24-1-105, and exercises its powers and performs its duties and functions16 under the department.17 (c) The enterprise's primary powers and duties are to:18 (VIII) (A) I N COORDINATION WITH THE DEPARTMENT , PAY THE19 COSTS ASSOCIATED WITH CONDUCTING THE ORGANICS DIVERSION STUDY20 REQUIRED BY SECTION 25-17-802.21 (B) T HIS SUBSECTION (3)(c)(VIII) IS REPEALED, EFFECTIVE JULY22 1, 2025.23 (4) Fund. (b) Money in the fund is continuously appropriated to24 the enterprise to:25 (VI) (A) P AY THE COSTS ASSOCIATED WITH CONDUCTING THE26 ORGANICS DIVERSION STUDY REQUIRED BY SECTION 25-17-802.27 191 -12- (B) THIS SUBSECTION (4)(b)(VI) IS REPEALED, EFFECTIVE JULY 1,1 2025.2 SECTION 5. Safety clause. The general assembly hereby finds,3 determines, and declares that this act is necessary for the immediate4 preservation of the public peace, health, or safety.5 191 -13-