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EXHIBIT 2 <br />CALIFORNIA LEGISLATIVE MANDATES <br />The State of California has established a variety of mandates (Assembly Bills 939, 341, <br />1826, among others) requiring all jurisdictions (i.e., responsible cities, counties, and <br />regional agencies) in the State to comply with measures to manage and control solid <br />waste generation. Included in these mandates are requirements to divert a minimum of <br />50% of waste from landfills and to implement recycling programming. One of the newest <br />State mandates, Assembly Bill 1594 (AB 1594), went into effect on January 1, 2020. AB <br />1594 eliminates diversion credit for green waste that is sent to County landfills as <br />Alternative Daily Cover (ADC) and reclassifies it as waste disposal for purposes of <br />measuring a jurisdiction's compliance with State mandates. <br />WHAT IS ADC? <br />The State of California defines Alternative Daily Cover (ADC) as "...cover material other <br />than earthen material placed on the surface of ... a municipal solid waste landfill at the end <br />of each operating day." ADC helps to control vectors, fires, odors, blowing litter, and <br />scavenging. (See https://www.calrecycle.ca.gov/Igcentral/basics/adcbasic for additional <br />information.) <br />CITY OF SANTA ANA REFUSE COLLECTION SERVICES <br />The City of Santa Ana has contracted with Waste Management (WM) to provide citywide <br />refuse collection services. Prior to the implementation of AB 1594, green waste collected <br />from the City's customers by WM was minimally processed by a third -party green waste <br />facility, transferred to landfills to be used as ADC, and the City received diversion credit. <br />Composting green waste is an alternative that will allow the City to continue receiving <br />diversion credit under the new restrictions of AB 1594. However, this process is more <br />costly. <br />