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
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          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
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            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