Good evening, and thank you for having me tonight. And like Nan said, I'm Bill Camarillo. I'm the CEO of Agriman, and I've been in the organics waste recycling business now for over 30 years. Started right here in Ventura County. And today Agriman is the largest organics waste recycler in the state of California We manage over a million tons a year for well over 200 jurisdictions and 15 counties.
And we learned a lot right here at home in Ventura County with all of our agricultural partners. So SB 1383 is an ominous bill, it's probably the most disruptive piece of legislation to the waste industry than we've seen since the original AB 939 law. And it's not a recycling bill. It's all about short-lived climate pollutants. And it's part of the AB 32 Climate Action Plan to reduce greenhouse gas emissions produced by landfills. So even though landfills have great gas capturing systems, still about 25% to 30% of the methane from landfills is fugitive off the soil and ends up into the atmosphere.
It's 80 times more potent than CO2. And they can see it from NASA today. So they've picked out all the landfills and dairies, and they're trying to reduce methane. And that's how 1383 came about. Next slide? Perfect. So it is our collective mission to partner to cool the planet by creating innovative ways to dealing with soil science, and we do that by partnering with our waste hauling partners like EJ Harrison & Sons and many others throughout the state with municipalities that hold their own waste And our agricultural partners that can consume the compost at the end of the day to reduce their need for pesticides, herbicides, chemical fertilizers. It reduces water use, it reduces erosion and then we also make a lot of landscape and commercial products out of it as well that end up in retail stores.
And we do this to try and heal the planet. Next slide. So it's been a long journey. I don't know how much you know about AB 939, which is passed way back in 1990 was to reduce green not greenhouse but to reduce landfill landfilling and diverting 50% of the waste by the year 2000 to preserve landfills back in 1990 And then when AB 32 passed in 2006, a lot of the rest of the legislation that was passed was to reduce greenhouse gas emissions. And a lot of those bills that we see today like you may have heard about AB 341 which was a commercial recycling bill. 1826 was a commercial organics bill. Those were all goal-driven bills and not very effective so that's why the Air Board decided to pass SB 1383 to mandate the diversion of organics from the landfills.
Next slide. So here's the rules by 2022 we are to have diverted 50% of the organic waste from the landfills, nearly 11 million tons as of 2022 the state's diverted 5%. Way behind the power curve a lot of that caused by the pandemic we lost a couple of years through that whole process And in 2025 75% of all the organics have to get diverted from landfills which is estimated to be 20 plus million tons.
In the state, there is a severe penalty 10,000 up to $10,000 a day to the jurisdictions for not following the programs. You can't actually implement any kind of penalty phase for the generators themselves until 2024 if they do not participate. And in this bill, unlike AB 939, there is no good faith effort. So in AB 939 as long as you had all the programs in place and you were doing everything you could, if you didn't quite make it that was a good faith effort and you did get penalized.
SB 1383 does not have that. There's also another part of 1383 and it's got a lot of articles in it, and it's a procurement requirement by jurisdictions to buy back 8% of their population and tons of compost and mulch to use back in the communities to create a demand pull on the material as they push it out of the landfills. That was delayed a year with AB 1985 again because of the pandemic. Next slide.
Wow, that was spooky. So this is just a graphical of where the state plans on being and that's the green line so the blue and the orange line are the projected amounts of organic waste being produced in California And they're expecting us to get down to 5.7 tons of organic waste going into the landfills by 25, and like I said in 22 calculated only 5% had been diverted so far. So a lot of work to do.
Next slide. Here's why they're having us do it. Hey, Jim. And I recognize that voice. So up to 2018 we had been diverting about 10 million tons of organic waste from landfills through the Green Waste Programs and that was an estimated about 12 million barrels of oil offset so that's how they view this reduction program So by going after the next 20 plus million tons is another 27 million barrels of oil offset by reducing methane at landfills.
Next slide. And the reason they focused on what we're doing today is because it's one of the least costly ways to reduce greenhouse gas emissions. Organics recycling is only about $53 a metric ton of CO2 reduced, rather than an electric vehicle closer to $3,000 a metric ton of CO2. So there's a whole hierarchy at which what we should be working on first to reduce methane or greenhouse gases. And then ultimately, zero emission vehicles are supposed to help us finish getting the way there but they're pretty expensive. Next slide.
This is about the procurement program that I was talking about. I'm going to show you some examples of how cities and farming companies are using the compost in the SB 1383 program. Next slide. It's a whole new platform that Agri-Min created statewide called californiacompost.net, and it's meant for us to help jurisdictions not have a bad experience in using compost and mulch. Believe it or not, not all composts are created equal just like meals. They're not all created equal.
And not all soils can use the same amounts of compost in the material types because every piece of property has its own thumbprint and what needs to be done to it in order to grow plants. Next slide. So with the passing of AB 1985, 100% procurement in like the city of Ojai was probably around 5,000 tons of compost you'd need to procure. This year in 2023, you only need to procure 30% of that. So it basically created a ramping phase through 2025. Next year it needs to be 65%. And by 2025, you're going to have to cure 100% of the compost and mulch. Ojai has always been really good about using mulch in the community parks and streetways so we're happy to work with James Vega to figure out how to use that in the parks, or we can actually broker it to agriculture if you're interested in doing that as well.
Next slide. The portal just has an assessment tool in there where for free will tell you how you could use the compost and mulch in your communities. We actually combed the internet to find out many park acreage you have, streetways you have, and then we can tell you how much you can actually use in the city. We have qualifying product lines that you can look at with standards, whether you buy it from us or someone else. You can make sure that they're meeting the standard so you get a quality product. And then there's a brokering service in there where we help pair you up to agriculture to be able to use the material if you'd so decide to go that direction. Next slide.
There's a calculator on the website too, it makes it easy for you. You just put in the city, it'll have the year for this year and then it will tell you how much compost you need to buy and mulch. Next slide. At the end of the day, this is the best part of it. It produces a report for you every quarter tells you where you're at. And at the end of the year, it'll produce a report you can just send to CalRecycle so that it shows that you're in compliance. Next slide.
This is a little bit of a story about how the solution to a lot of what's going on is actually beneath our feet and fixing the soil. So I'm just gonna take you through a little education on how compost is used and why it's important for reducing greenhouse gas emissions, and then I'm gonna show you some examples of projects we're doing throughout the state. Next slide.
So scientists, if you know a lot of them they'd never agree. And when you get a bunch of them starting to agree that there's a problem, you know that you better start paying attention and more and more we're seeing more scientists agree that the climate is changing. We would argue that it's not changing. It's probably always changing, but it seems to be more severe at times. So some of the things that you can do with soil to sink carbon like Mother Nature intended to I'm gonna show you some examples. Next slide.
Historically and I'm talking a century or more ago before oil in 1860 and chemical fertilizers most of our soils and agriculture had three to 7% carbon organic matter in them. And they healed themselves creating topsoil Well, with the revolution of chemical fertilizer and monoculture our soils today have less than half a percent in them. In most cases barely enough to sustain life so therefore you have to use lots of water and chemicals to grow food.
If we were just to move the needle back to 3% on our agricultural lands you could actually remove a trillion metric tons of CO2 out of the atmosphere. So you got to remember we're continually producing CO2 above and beyond Mother Nature, and that's what's creating the disturbance in our weather patterns. Next slide. How does compost work? Well, if you look on the left side that's a rangeland example and I'll show you one that we're doing in Sacramento.
Today because the carbon levels are so low the plant life barely can consume enough carbon out of the atmosphere to sustain itself So basically, it's feeding the microbes in the ground which breaks down the nutrients in the ground, solubilizes them so it can uptake it through the roots and grow the plants. And that's the cycle. Draws down carbon, feeds the bugs in the soil, so the bugs feed the plants and that's the cycle of life in the soil.
With compost, by adding nutrients to the ground to feed the bacteria in the ground, the plants grow more vigorously. Their roots grow deeper and they start to sink carbon like they were meant to. So that's what fixing the soil does. Next slide. How do we pay back our carbon debt? Well, it's going to be complicated and it's not easy and it's going to be very expensive. So I'm going to show you some of the projects we're working on that go hand in hand with the waste industry, the water industry, the agricultural communities, and everybody participating in collaboration to try and fix things. Next slide.
Here's Montalvo Park in Ventura. City of Ventura said, Bill what are we supposed to do with 8000 tons of compost? And I said well you have 700 acres of ag land, I mean parks just a quarter inch on 700 acres is actually 12,000 tons of compost so you need more than you actually need to buy. Well what are we supposed to do with it? Well let me show you how to fix the parks.
So we did a demonstration in Montona. We did one application in June of 21 that's what the park looked like and this is a drone that measures photosynthesis And then in March of 22 after one rain and one application, we greened up the park. We started to store some carbon in it and take me to the next slide please. You can see the difference between the untreated and the treated areas, and most important is you can look at what the water infiltration rate was. So a lot of parks are super hard, the ground is super hard, water hits it and runs off.
As you start to add compost, it starts to soften the ground and it doubled the ability for it to accept water. The moisture levels doubled in weight in the soil and the water holding capacity nearly doubled, therefore saving water and the park. So you don't have to use as much water if you fix a soil next slide. This is our carbon farming project in Sacramento on a rangeland project called Van Vleck Ranch. It's been around since 1856. That's one application, one rain.
You can see the treated and untreated. This is not rocket science when you start to look at it going wow! You can actually see visibly the change in the piece of property with one application. So we're gonna be doing this every year to sink carbon Now there's voluntary carbon markets that we're going after to help to pay for these things. So it's gonna be a combination of what we're doing, what the voluntary carbon markets are doing to help sink carbon. Next slide.
Lehman Air Company where we started our first farming project. This is a farm they have out in the desert called Cadiz where we started treating their trees out there. Next slide. You can see the trees on the left started creating new blushes. You could see the yellow, new leaves compared to the trees that are untreated. The trees out there now are growing just as many lemons as the ones in Santa Paula because we started fixing the soil.
Next slide. Agriments carbon factor. So here's some of the projects that are working. I'm going to update you on a Linear project that we're doing or Mountain View project that we're going to be doing for food waste. Next slide. We have a huge footprint now and we're very proud of it. We're continuing to build new facilities statewide to remove green waste, food waste and all organics from landfills.
Lima Nara, which was finally approved in February of 2022 that we started the permitting process in 2011 took nearly 11 years to get a permit. And we finally completed that so we're hoping to start construction on that at the end of the year. Our Mountain View facility that one took six years and we're starting construction this year. And then we have others throughout the state that were building next slide.
The LeMonaire project is going to be 300,000 tons. The CapEx to build it total costs about $30 million. It'll be there for 50 years so that's the good news and it will handle pretty much all of Ventura County's organic waste, green waste, food waste, ag waste at that one facility. Next slide. This is an exciting new technology for commercial food waste, where the trash truck unloads the commercial food waste into these hoppers. And it goes through a series of shredders and presses and screens. And we get out a really clean mash at the end of the day that we can aerobically digest and use it as an animal feed or a fertilizer from the food waste generated. It removes all the contamination, all the bags, cans, corks, forks, you name it. It removes all of that.
Next slide. That's it. It's our call to action. Everybody has questions about bags, so there are bags in everybody's house. We don't care what kind of bag you use. Just put it in a bag. Put it in the green waste barrel so we can pull it out. There is not enough infrastructure in the state of California to do SB 1383. So if you were to just put your food waste in the green waste barrel, it would get commingled and there's nowhere to go with that. So right now, those trucks go to Gold Coast Recycling where we take the bags of food out. The green waste goes to our Limonero Compost Center and the food waste goes to our Simi Valley Center where it gets processed and sent off to composting. As soon as Limonero's open in Mountain View then we can talk about commingling because now we'll have infrastructure for it but for us, the food is more valuable as an animal feed and organic fertilizer than as compost so we'd prefer it in a bag and in the cities we tell not to bag it they bag it anyway And then the cities that don't want bags, we say well take out the rest of the bags because there's lots of bags in there that people put in their green waste barrels.
So you don't have to use compostable bags. You could use a paper bag, a plastic bag, pretty much any bag you have laying around. Like Nan said it's pretty easy if you put it in a bag tied up and then put it in the barrel so you don't have to have it in the house. It keeps the barrel clean in the summer when it gets hot. If you just had food waste in there without a bag I can tell you from experience, the gnats, the cockroaches, the flies, the smell is horrendous.
So put it in a bag. Keep it clean. Thank you very much. Happy to answer any questions if you have any of
