BILL ANALYSIS Ó SB 498 Page 1 Date of Hearing: August 6, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 498 (Lara) - As Amended: June 26, 2014 Policy Committee: Natural ResourcesVote:9-0 Environmental Safety and Toxic Materials6-0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill provides expanded authority for biomass processing facilities. Specifically, this bill: 1)Includes conversion technologies that use specified biomass feedstock in the definition of biomass for purposes of the Integrated Waste Management Act (IWMA). 2)Defines biomass facilities to include production of fuel in addition to heat and electricity. 3)Requires solid waste facilities to ensure any materials sent to a biomass facility are limited to the following materials separated from solid waste: a) Agricultural crop residues. b) Leaves, silvicultural residue, and tree and bush pruning. c) Wood, wood chips, and wood waste. d) Nonrecyclable pulp or nonrecyclable paper material. 1)Authorizes a local enforcement agency to inspect the solid waste facilities and operations for compliance with the provisions of the bill. 2)Beginning in 2016, requires the operator or owner of a biomass conversion facility, under penalty of perjury, to provide an annual report to CalRecycle by April 1st of each year containing specified information regarding the previous year. SB 498 Page 2 FISCAL EFFECT Minor absorbable costs to CalRecycle. COMMENTS 1)Rationale . The existing definition of biomass conversion excludes conversion technologies that generate electricity more efficiently and with lower air emissions. Existing law is unclear regarding whether anaerobic digestion facilities are permitted, which hampers the state's goal for diverting additional organic materials from landfills. According to the sponsor, the County of Los Angeles, conversion technologies and anaerobic decomposition of organic wastes promote the highest and best use of resources while supporting the state's air quality and greenhouse gas reduction goals. This bill expands the definition of biomass conversion to include conversion technologies that use biomass feedstocks and specifies that anaerobic digestion facilities are solid waste facilities. This bill will allow cities and counties to send increased material to biomass facilities and receive credit toward mandatory diversion requirements in the IWMA. 2)Background. CalRecycle administers the Integrated Waste Management Act of 1989. The Act requires local governments to divert 50% solid waste disposed by their jurisdictions from landfills. The traditional decomposition of landfills produces significant amounts of methane, a greenhouse gas emission. Anaerobic digestion refers to the controlled biological decomposition of organic material with little or no oxygen. Anaerobic digestion is not defined in current law but is considered a method of composting by the industry. Anaerobic digestion is widely used to manage waste from wastewater treatment and dairy manure. Anaerobic solid waste digesters are emerging in California with a number of new and proposed facilities underway. 3)Opposition. A coalition of environmental and community justice groups opposed to this bill argue that combustion or SB 498 Page 3 conversion to energy production is responsible for air, water and land pollution. Further, biomass plants are not required to go through a permit process at CalRecyle to assess the environmental and health impacts of burning organics for energy production. 4)Prior Legislation. SB 804 (Lara) would have provided expanded authority for biomass and composting facilities. This bill was vetoed by the Governor with a message directing CalRecycle to work with stakeholders to develop a sensible approach. It is unclear if this bill addresses the Governor's concerns with last minute amendments to SB 804 which he argued made the bill overly complicated and unworkable. Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081