BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1126
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          Date of Hearing:  April 29, 2013

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                    AB 1126 (Gordon) - As Amended:  April 18, 2013
           
          SUBJECT  :   Solid waste:  conversion:  processed municipal solid  
          waste (MSW) conversion 

           SUMMARY  :   Establishes regulatory standards for facilities that  
          convert MSW for energy generation. 

           EXISTING LAW  establishes the Integrated Waste Management Act  
          (Act), which is administered by the Department of Resources  
          Recycling and Recovery (CalRecycle).  Under the Act: 

          1)Requires each county, city, and regional agency, if any, to  
            divert 50 percent of solid waste disposed by their  
            jurisdictions from landfill disposal.  

          2)Establishes a state policy goal that 75 percent of solid waste  
            generated be diverted from landfill disposal by 2020.

          3)Allows the 50 percent diversion requirement to include up to  
            10 percent through transformation (i.e., combustion).  

           THIS BILL  : 

          1)Defines terms used in the bill, including:  

             a)   "Processed [MSW] conversion" means the conversion of  
               solid waste through a process that meets the following  
               requirements: 

               i)     The waste to be converted is beneficial and  
                 effective in that it replaces or supplements the use of  
                 fossil fuels or other standard commercial fuels.  

               ii)    The waste to be converted, the resulting ash, and  
                 any other products of conversion do not meet the criteria  
                 or guidelines for the identification of a hazardous  
                 waste; 

               iii)   The conversion is efficient and maximizes the net  
                 calorific value and burn rate of the waste; 








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               iv)    The waste to be processed contains less than 25  
                 percent moisture and less than 10 percent noncombustible  
                 waste; 

               v)     The waste to be processed at the facility is handled  
                 in compliance with the requirements for handling solid  
                 waste; and,

               vi)    No more than 500 tons of waste per day is converted.  
                  

             b)   "Processed MSW conversion facility" (conversion  
               facility) as a facility that converts the materials that  
               meet the definition above.  

             c)   Specifies that "biomass conversion" includes "other  
               thermal conversion." 

             d)   Specifies that "solid waste disposal" includes processed  
               MSW conversion.  

             e)   Specifies that "solid waste facility" includes a  
               conversion facility.  

             f)   Specifies that "transformation" does not include  
               processed MSW conversion.  

          2)Requires that a county's countywide siting element include a  
            description of the areas to be used for conversion facilities,  
            but does not require conversion facilities to be approved by  
            the "majority of the majority" of local governments located  
            within the county.  

          3)Specifies that tires and biomass processed by conversion  
            facilities are not considered disposal under the Act.  

          4)Requires that the areas at a biomass conversion facility where  
            materials are stored prior to conversion be regulated as solid  
            waste transfer facilities and specifies that these facilities  
            are subject to the same inspection and enforcement provisions  
            as permitted solid waste facilities.  

          5)Authorizes local enforcement agencies (LEAs) to impose fees  
            for conducting an inspection of a biomass conversion facility  








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            in the same manner as permitted solid waste facilities.  

          6)Makes related conforming changes to the Act.  

           FISCAL EFFECT  :  Unknown 

           COMMENTS  :  The term "conversion technologies" generally refers  
          to a variety of technologies that process solid waste through  
          chemical, biological, or other "non-combustion" thermal  
          technologies to produce energy or renewable fuels. These  
          technologies create energy using three main processes:  
          thermochemical, biochemical, and physicochemical.  

          Thermochemical conversion processes include high-heat  
          technologies like gasification and pyrolysis.  Thermochemical  
          conversion is characterized by higher temperatures and faster  
          conversion rates.  It is best suited for lower moisture  
          feedstocks.  Thermochemical routes can convert the entire  
          organic portion of suitable feedstocks.  The inorganic fraction  
          (ash) does not contribute to the energy products and may  
          contribute to fouling of high temperature equipment and  
          increased nutrient loading in wastewater treatment and disposal  
          facilities.  Generally the ash must be disposed.  Inorganic  
          constituents may also accelerate some of the conversion  
          reactions.  Under current law, pyrolysis is considered  
          transformation, while gasification is explicitly excluded from  
          the definition of transformation.  

          Biochemical conversion processes include aerobic conversion  
          (i.e., composting), anaerobic digestion, which is currently  
          regulated as composting, and anaerobic fermentation (for  
          example, the conversion of sugars from cellulose to ethanol).   
          Biochemical conversion processes use lower temperatures and  
          lower reaction rates.  Higher moisture feedstocks are generally  
          good candidates for biochemical processes.  The lignin fraction  
          of biomass cannot be converted by anaerobic biochemical means  
          and only very slowly through aerobic decomposition.  As a  
          consequence, a significant fraction of woody and some other  
          fibrous feedstocks exits the process as a residue that may or  
          may not have market value as a soil amendment.  The residue can  
          be composted.

          Physiochemical conversion involves the physical and chemical  
          synthesis of products from feedstocks (for example, biodiesel  
          from waste fats, oils, and grease) and is primarily associated  








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          with the transformation of fresh or used vegetable oils, animal  
          fats, greases, tallow, and other suitable feedstocks into liquid  
          fuels or biodiesel.

          Dwindling landfill capacity and the infeasibility of siting and  
          permitting new disposal sites have created a significant demand  
          for alternative management options for MSW, especially in the  
          Los Angeles area.  However, significant regulatory barriers  
          exist for the development of these technologies in California,  
          including the lack of guidance on how these facilities could be  
          permitted by CalRecycle.  

           This bill  .  According to the author, the intent of this bill is  
          to establish a clear permitting pathway for conversation  
          facilities that process MSW in a manner that provides a  
          reasonable approach commensurate with the potential risk to  
          public health and safety.  This bill would allow MSW to be  
          converted for energy generation, which would offset the need for  
          traditional fossil fuels.  The author states that by reducing  
          the use of fossil fuels and moving the material away from  
          landfills, this bill would help California achieve its  
          greenhouse gas reduction goals.  

           Are biomass conversion facilities solid waste facilities  ?  As  
          drafted, this bill requires the areas at biomass conversion  
          facilities where biomass materials are stored to be regulated  
          and potentially permitted as solid waste transfer stations.   
          This bill also authorizes LEAs to inspect and enforce biomass  
          conversion facilities in the same manner as permitted solid  
          waste facilities.  This is a significant expansion of  
          CalRecycle's authority.  The author points to examples by  
          CalRecycle that suggest there may be biomass conversion  
          facilities that are accepting and processing materials that are  
          considered solid waste under the Act.  Existing law authorizes  
          LEAs and CalRecycle to inspect and pursue enforcement against  
          illegal or unpermitted solid waste facilities, including biomass  
          conversion facilities.  It is not clear that the broad  
          permitting and enforcement provisions in the bill are necessary  
          to address this concern.   The committee may wish to delete the  
          provisions relating to biomass conversion facilities  and direct  
          the author, CalRecycle, and related stakeholders to develop a  
          more precise approach to any gaps in existing enforcement  
          authority.  

           Additional amendments  .   The committee may wish to make the  








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          following clarifying amendments  to AB 1126: 

          1)This bill uses the term "processed MSW" throughout; however,  
            the bill doesn't require any processing of MSW prior to use in  
            a conversion facility.  The committee may wish to strike out  
            the term "processed" throughout the language.  

          2)In order to ensure that the bill does not inadvertently  
            displace renewable fuels, the committee may wish to strike "or  
            any other standard commercial fuels" on page 4, lines 19 and  
            20.  










































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           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file

           Opposition 
           
          None on file
           

          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092