BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                               AB 1126
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Jerry Hill, Chair
                              2013-2014 Regular Session
                                           
           BILL NO:    AB 1126
           AUTHOR:     Gordon
           AMENDED:    June 19, 2013
           FISCAL:     Yes               HEARING DATE:  June 26, 2013
           URGENCY:    No                CONSULTANT:     Rebecca Newhouse
            
           SUBJECT  :    MUNICIPAL SOLID WASTE CONVERSION

            SUMMARY  :    
           
            Existing law  , under the Integrated Waste Management Act of  
           1989 (Act):                                            

           1) Requires each city or county source reduction and recycling  
              element to include an implementation schedule that shows a  
              city or county must divert 25% of solid waste from landfill  
              disposal or transformation by January 1, 1995, and must  
              divert 50% of solid waste on and after January 1, 2000  
              through source reduction, recycling, and composting  
              activities (Public Resources Code §41780).

           2) Declares that it is the policy goal of the state to divert  
              75% of the state's solid waste through source reduction,  
              recycling and composting by 2020 (PRC §41780.01).

           3) Defines "transformation" as incineration, pyrolysis,  
              distillation, or biological conversion and does not include  
              composting, gasification, or biomass conversion (PRC  
              §40201). 

           4) Defines "transfer or processing station" as those  
              facilities utilized to receive solid wastes, temporarily  
              store, separate, convert, or otherwise process the  
              materials in the solid wastes, or to transfer the solid  
              waste directly from smaller to larger vehicles for  
              transport and those facilities utilized for transformation  
              (PRC §40200).

           5) Defines "solid waste disposal" for the purposes of  









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              preparing integrated waste management plans, as the  
              management of solid waste through landfill disposal,  
              transformation (PRC §40192).

           6) Defines "disposal facility" to mean a facility or location  
              where disposal or solid waste occurs (PRC §40121).

           7) Specifies that "solid waste facility" include a solid waste  
              transfer or processing station, a composting facility,  
              gasification facility and a disposal facility (PRC §40194).

           8) Requires each county to prepare a countywide siting element  
              that provides a description of the areas to be used for  
              development of adequate transformation or disposal capacity  
              concurrent and consistent with the development and  
              implementation of the county and city source reduction  
              recycling requirements and requires the countywide siting  
              element to be approved by the county and by a majority of  
              cities within the county with a majority of the population  
              (PRC §§41700, 41721).

           9) Prohibits a person from disposing of solid waste, arranging  
              for the disposal of solid waste, transporting solid waste  
              for purposes of disposal, or accepting solid waste for  
              disposal, except at a solid waste disposal facility for  
              which a solid waste facilities permit has been issued, as  
              specified (PRC §44000.5).

           10)Prohibits the establishment or expansion of a solid waste  
              facility in the county unless the solid waste facility is a  
              disposal facility or a transformation facility which is  
              identified in the countywide siting element or amendment to  
              the element, or is a solid waste facility that is designed  
              to recover for reuse or recycling at least 5% of the total  
              volume of material received by the facility and has been  
              identified in the nondisposal facility element that has  
              been approved, as specified (PRC §50001). 

            This bill  :  

           1) Defines "engineered municipal solid waste conversion," or  
              "EMSW conversion," as the conversion of solid waste through  
              a process that meets all the following requirements: 









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              a)    The waste to be converted is beneficial and effective  
                 in that it replaces or supplants the use of fossil  
                 fuels.

              b)    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  
                 adopted by the Department of Toxic Substances Control,  
                 as specified.

              c)    The conversion is efficient and maximizes the net  
                 calorific value and burn rate of the waste.

              d)    The waste to be processed contains less than 25  
                 percent moisture and less than 25 percent noncombustible  
                 waste.

              e)    The waste to be processed is handled in compliance  
                 with the solid waste handling requirements, as  
                 specified, and no more than a seven-day supply of that  
                 waste, based on the throughput capacity of the operation  
                 or facility, is stored at the facility at any one time. 

              f)    No more than 500 tons per day of waste is converted  
                 at the facility where the operation takes place.

              g)    The waste has a value of 5,000 BTU per pound after  
                 conversion. 

           2) Defines an "engineered MSW conversion facility" as a  
              facility where municipal solid waste conversion that meets  
              the above requirements takes place. 

           3) Specifies that "recycling" does not include EMSW  
              conversion. 

           4) Specifies that "solid waste disposal" includes processed  
              EMSW conversion and that a "solid waste facility" or  
              "disposal facility" includes an EMSW conversion facility.  

           5) Specifies that a "transfer or processing station" does not  
              include an EMSW conversion facility.









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           6) Specifies that "transformation" does not include processed  
              EMSW conversion.  

           7) Requires a countywide siting element to include a  
              description of areas to be used for MSW conversion and  
              allows a siting element provided for an MSW conversion  
              facility to only be approved by the city in which it is  
              located, or if the MSW is not located in a city, by the  
              county.   

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

           9) Prohibits the establishment or expansion of a solid waste  
              facility in the county unless the solid waste facility is a  
              disposal facility, transformation, or engineered MSW  
              facility, which is identified in the countywide siting  
              element or amendment to the element, or is a solid waste  
              facility that is designed to recover for reuse or recycling  
              at least 5% of the total volume of material received by the  
              facility and has been identified in the nondisposal  
              facility element that has been approved, as specified.

            COMMENTS  :

            1)Purpose of Bill  .  According to the author, "AB 1126 defines  
             an Engineered Municipal Solid Waste conversion facility and  
             properly identifies it as a solid waste facility under  
             CalReycle's regulatory authority.  This permitting pathway  
             is needed because current statute is outdated and does not  
             adequately address the new types of waste-to-energy  
             technologies and processes that have started to be  
             commercialized in California.  Existing state solid waste  
             rules do not adequately define these facilities to provide  
             the best-possible environmental protection and oversight  
             while minimizing unnecessary burdens. Under this bill,  
             engineered MSW conversion would be clearly defined, and  
             would allow these facilities to replace fossil fuel energy  
             sources such as coal, thereby reducing California's GHG  
             emissions.  Properly utilized, AB 1126 would help California  
             meet the goals outlined in AB 32."










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            2)Background  .

              Municipal solid waste  . Municipal solid waste (MSW) refers to  
             the stream of garbage collected through community sanitation  
             services. Although MSW consists mainly of renewable  
             resources such as food, paper, and wood products, it also  
             includes nonrenewable materials derived from fossil fuels,  
             such as tires and plastics. According to the 2008 Statewide  
             Waste Characterization Study, the California waste stream is  
             composed of primarily food and greenwaste (e.g., lumber,  
             leaves, etc.) at about 47%, with the next highest  
             contributors being paper, plastic and metal waste comprising  
             17.3%, 9.6%, and 4.6%, respectively. 

              Conversion technologies  .  According to CalRecycle,  
             conversion technologies are processes that can convert  
             organic materials into usable forms of energy including  
             heat, steam, electricity, natural gas, and liquid fuels. 

             Thermochemical conversion processes are characterized by  
             higher temperatures and faster conversion rates and include  
             combustion, gasification, and pyrolysis. Pyrolysis is the  
             thermal decomposition of feedstock at high temperatures  
             (greater than 400?F) in the absence of air, whereas  
             gasification is a process that uses air or oxygen and high  
             heat, (typically above 1300?F) to convert feedstock into a  
             synthetic gas or fuel gas. Gasification uses less air or  
             oxygen than incineration processes. Thermochemical  
             conversion is best suited for lower moisture feedstocks.  

             Biochemical conversion processes include aerobic conversion  
             (i.e., composting), anaerobic digestion (which occurs in  
             landfills and controlled reactors or digesters), and  
             anaerobic fermentation (for example, the conversion of  
             sugars from cellulose to ethanol).  Biochemical conversion  
             proceeds at lower temperatures and lower reaction rates.   
             Higher moisture feedstocks are generally good candidates for  
             biochemical processes.

             The definition of transformation in current law captures  
             many thermochemical and biochemical conversion technologies,  
             but some processes that would technically qualify as  
             conversion are specifically excluded by statute, namely  









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             composting, gasification and biomass conversion (i.e.,  
             combustion of greenwaste). 

             AB 1126 specifies that engineered MSW conversion is not  
             included in the definition of "transformation" and would  
             instead define MSW conversion based on whether a process  
             meets a defined set of criteria, as specified in the bill.  

             Some of the processes defined as "transformation" including  
             combustion, pyrolysis, distillation, or biological  
             conversion may be able to meet the performance criteria of  
             EMSW conversion. 

             In order to be technology neutral, an amendment is needed to  
             specify that, notwithstanding the definition of  
             transformation, a transformation facility that meets the  
             requirements of an engineered municipal solid waste facility  
             shall be considered to be an engineered MSW facility.  

            3)Environmental impacts of MSW conversion  . According to  
             CalRecycle, combustion or incineration is a type of  
             thermochemical "conversion" technology. There is a variety  
             of conversion technologies and depending on the technology  
             and controls they use to mitigate negative environmental  
             impacts, the environmental impacts of an individual  
             conversion facility can significantly vary.  

             The conversion of MSW reduces MSW waste streams, reducing  
             the creation of new landfills. MSW combustion creates a  
             solid waste called ash that can contain any of the elements  
             that were originally present in the waste. MSW conversion  
             facilities reduce the need for landfill capacity because  
             disposal of MSW ash requires less land area than does  
             unprocessed MSW, however, depending on the waste stream, MSW  
             ash can concentrate toxic constituents that were originally  
             present in the MSW and can create new toxic chemicals,  
             depending on the chemical makeup of the feedstock and  
             reaction conditions. Some conversion processes, such as  
             gasification, use temperatures that can create a glass-like  
             or vitreous ash, where potential toxins in the ash are bound  
             in the glass matrix. 
             
              In terms of air quality, MSW conversion can produce  









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             greenhouse gases, criteria air pollutants such as nitrogen  
             oxides and sulfur dioxides, and trace amounts of toxic air  
             contaminants such as mercury, dioxins and furans. The GHGs  
             released from the biomass-derived portion of MSW conversion  
             facilities is considered to be renewable since the plants  
             and trees that make up the paper, food, and other biogenic  
             waste removed carbon dioxide from the air while they were  
             growing, which is returned to the air when this material is  
             burned. The types and quantities of air emissions vary  
             depending on the MSW conversion technology. For example,  
             combustion of MSW may result in a much larger quantity of  
             nitrogen oxides then pyrolysis, which does not use oxygen in  
             the conversion process.  A variety of air pollution control  
             technologies can be used to reduce criteria and toxic air  
             pollutants.  In addition, burning MSW instead of landfilling  
             can achieve significant GHG benefits due to the prevention  
             of methane formation, which is approximately 21 times more  
             powerful in terms of global warming potential than CO2.  

             Under AB 1126, no MSW conversion process that converted  
             hazardous waste or resulted in ash that is classified as  
             hazardous according to DTSC, would qualify as an engineered  
             MSW conversion process. AB 1126 would not alter existing law  
             that requires all stationary sources of air pollution to  
             comply with all local, state and federal air and water  
             quality rules and regulations, including requirements under  
             the federal Clean Air Act, Clean Water Act, additional local  
             requirements and state GHG regulations pursuant to AB 32. 

            4)Solid Waste Facility Permits  . In1994, regulations were  
             adopted implementing a tiered regulatory structure for the  
             permitting of all solid waste facilities and solid waste  
             handling operations, including solid waste transfer or  
             processing stations, composting facilities, transformation  
             facilities, and disposal facilities. According to  
             CalRecycle, the structure was designed to provide a level of  
             regulatory oversight commensurate with the impacts  
             associated with a particular solid waste handling or  
             disposal activity. From the highest level of regulation to  
             the lowest, the tiers are full, standardized, registration,  
             enforcement agency notification, and facilities that are  
             excluded from permitting. A full permit is required for  
             solid waste landfills, large composting operations,  









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             transformation facilities and other waste operations that  
             are typically large volume.  

             Engineered MSW conversion facilities, as defined by AB 1126,  
             would qualify for the highest level of regulatory compliance  
             and require full permits approved by CalRecycle. 

            5)Countywide siting elements  . Disposal facilities must obtain  
             a Solid Waste Facility Permit. One of the requirements to  
             obtain a permit is for that facility to be identified in the  
             countywide siting element (CSE) which is one component of an  
             Integrated Waste Management Plan for a jurisdiction. A CSE  
             contains a description and identification of areas, numbers,  
             and types of new or expanded solid waste disposal and  
             transformation facilities to meet a minimum of 15 years of  
             combined permitted disposal capacity. If new or expanded  
             facilities cannot be established, then a discussion of  
             strategies selected by the local jurisdiction to dispose of  
             the excess solid waste is included. The element also  
             includes a discussion and description of the siting criteria  
             used in the county's siting process for new or expanded  
             solid waste disposal or transformation facilities. The  
             siting criteria are required to address environmental  
             considerations, environmental impacts, socio-economic and  
             legal considerations, and any other additional criteria  
             included by jurisdictions that approve the element. 

             The CSE and any subsequent amendments must be approved by  
             the county and by the majority of the cities within the  
             county that contain the majority of the population of the  
             incorporated area.  This approval is known as the  
             "majority/majority" requirement. More cities within a  
             particular county make this process more involved and it can  
             take years before a facility is approved. 

             AB 1126 requires any engineered MSW conversion facility be  
             described in the CSE, but its addition would only require  
             approval by the city where the project will be located, or  
             if not located in a city, by the county. 

            6)MSW thermal conversion  . There are currently three commercial  
             facilities in the state that use combustion technology to  
             combust unprocessed or minimally processed solid waste.  









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             Collectively, they have the capacity to process 2,500 tons  
             per day of MSW and produce about 68 MW of electrical power.  
             In terms of the MSW that they process per day, only one  
             (Commerce Refuse-to-Energy facility in Commerce, CA) would  
             meet the criterion for engineered MSW conversion of  
             processing not more than 500 tons per day of MSW.  It is  
             unclear whether the facility would meet the other  
             requirements for Engineered MSW, including having a moisture  
             content and noncombustible waste fraction of less than 25%.   
             The two other facilities, Covanta Stanislaus and Long Beach  
             SERRF process 800 and 1,380 tons per day of MSW. 

             In order to meet the criteria of an engineered MSW  
             conversion under AB 1126, traditional stream MSW conversion  
             would most likely have to be processed or engineered in some  
             way in order to remove certain organic waste or  
             noncombustibles, as well as other materials that do not  
             readily undergo conversion into electricity, heat or fuel to  
             meet the requirements of a moisture content below 25% and  
             noncombustible waste below 25%, as well as ensuring the  
             conversion is efficient and maximizes the net calorific  
             value and burn rate of the waste.

             However, certain MSW waste streams, depending on where they  
             are generated from, may be able to meet the requirements  
             without being mechanically processed before conversion. In  
             addition, some of this MSW may contain chlorinated plastics,  
             such as polyvinylchloride (PVC), which may release certain  
             toxic air contaminants when converted. 

             An amendment is needed to require that MSW be mechanically  
             processed at some type of transfer and processing station  
             before conversion in order to prevent raw MSW from  
             qualifying as EMSW, and to reduce the fraction of  
             chlorinated plastics and other materials that do not  
             maximize the net calorific value and burn rate of the waste.
           
            7)Solid waste diversion  . Prior to 2008, diversion estimates of  
             solid waste for jurisdictions were performed by calculating  
             the quantity of solid waste generation and estimating the  
             amount of diversion. SB 1016 (Wiggins) Chapter 343, Statutes  
             of 2008, changed the diversion calculation by only  
             considering the quantity of disposal, as reported by  









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             disposal facilities and the population of the jurisdiction,  
             and comparing that value to a baseline rate of disposal  
             determined from the disposal rate as of January 1, 1990.

             All waste converted at an engineered MSW conversion facility  
             would be counted as disposal for the purpose of determining  
             the diversion rate, excluding tires and biomass.

              Tires and biomass excluded  ? The bill would exempt any tires  
             or biomass from being counted as solid waste for the  
             purposes of determining diversion rates when converted at  
             engineered MSW conversion facilities.  

             Biomass incinerated at biomass conversion facilities is not  
             counted as disposal under current law.

             Tires are counted as disposal under current law if they are  
             disposed of at a disposal facility or a transformation  
             facility.  However, tires that are burned at facilities that  
             are not permitted as disposal or transformation facilities,  
             such as cement kilns, are not regulated by CalRecycle, and  
             therefore, have not counted as disposal under current law.  
             To the extent that entities previously unregulated by  
             CalRecycle meet the criteria of an engineered MSW conversion  
             facility, the exemption for counting tires as disposal will  
             be consistent with current practice. One impetus for  
             facilities previously unregulated by CalRecycle, such as  
             cement manufacturers, for potentially seeking classification  
             and permitting as "engineered MSW conversion facilities" is  
             so that they might reduce their emissions under AB 32 and  
             cap-and-trade. Cement manufacturers currently primarily burn  
             coal and switching to MSW represents a significant reduction  
             in GHG emissions, since the biogenic portion of any  
             engineered MSW that they convert is not counted toward their  
             GHG emissions under cap-and-trade, and therefore reduces  
             their costs associated with purchasing allowances and  
             offsets to meet their compliance obligation under the  
             cap-and-trade program. 



            8)Energy content  . One of the criteria in order to meet the  
             definition of EMSW conversion specified in AB 1126 is that,  
                                                                       








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             after conversion, the waste have an energy value of 5,000  
             BTU per pound. As written, this requirement does not make  
             sense, since it is the conversion of the engineered waste,  
             and not the waste after conversion (which is typically ash),  
             that has an energy value that can be expressed in terms of  
             BTU.

             An amendment is needed to strike the language that  
             references "after conversion" and instead require that the  
             engineered waste must have an energy content equal to or  
             greater than 5,000 BTU per pound. 

            9)Engineered MSW conversion does not qualify for RPS credit  .  
             Under the Renewable Portfolio Standard, investor-owned  
             utilities (IOUs) and publicly owned utilities must achieve  
             33% of their energy sales from an eligible renewable  
             electrical generation facility by December 31, 2020.  
             Municipal solid waste conversion, in order to qualify as a  
             renewable electrical generation facility, must meet numerous  
             conditions, one of which being that it does not use air or  
             oxygen in the conversion process, except ambient air to  
             maintain temperature control, and that it produces no  
             discharges of air contaminants or emissions, including  
             greenhouse gas emissions and does not produce any discharges  
             to surface or groundwaters of the state. No current  
             technology can meet those stringent statutory requirements.

             Meeting the requirements of an engineered MSW conversion as  
             defined by AB 1126, is not sufficient to be considered MSW  
             conversion for the RPS credit. In fact, only if technology  
             advances to a point where no criteria or toxic air  
             pollutants or GHGs are released through MSW conversion will  
             any type of conversion using MSW potentially qualify for RPS  
             credit.   


            SOURCE  :        Author  

           SUPPORT  :       None on file  

           OPPOSITION  :    None on file  

            









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