BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                SB 804
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Jerry Hill, Chair
                              2013-2014 Regular Session
                                           
           BILL NO:    SB 804
           AUTHOR:     Lara
           AMENDED:    April 22, 2013
           FISCAL:     Yes               HEARING DATE:  May 1, 2013
           URGENCY:    No                CONSULTANT:      Rebecca  
           Newhouse
            
           SUBJECT  :    BIOMASS: CONVERSION TECHNOLOGY
           
            SUMMARY  :    
           
            Existing law  , under the California Integrated Waste Management  
           Act (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 50% of solid waste from landfill  
              disposal or transformation by January 1, 2000, through  
              source reduction, recycling, and composting activities  
              (Public Resources Code §41780).

           2) Establishes a state policy goal that 75% of solid waste  
              generated be diverted from landfill disposal through source  
              reduction, recycling or composting by 2020 (PRC §41780.01).  


           3) Defines "transformation" to mean incineration, pyrolysis,  
              distillation, or biological conversion other than  
              composting and specifies that "transformation" does not  
              include composting, gasification, or biomass conversion  
              (PRC §40201).

           4) Defines "biomass conversion" to mean the controlled  
              combustion, when separated from other solid waste and used  
              for producing electricity or heat of specified biomass,  
              including, agricultural crop residues, bark, lawn, yard,  
              garden clippings, leaves, silvicultural residue, tree and  
              brush pruning, wood, wood chips, and wood waste and  
              nonrecyclable pulp or nonrecyclable paper materials (PRC  









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              §40106).

           5) Specifies that "biomass conversion" does not include the  
              controlled combustion of recyclable pulp or recyclable  
              paper materials, or materials that contain sewage sludge,  
              industrial sludge, medical waste, hazardous waste, or  
              either high-level or low-level radioactive waste (PRC  
              §40106).

           6) Defines "composting" to mean the controlled or uncontrolled  
              biological decomposition of organic wastes (PRC §40116.1).

            This bill :  

           1) Includes conversion technologies in the definition of  
              "biomass conversion."

           2) Clarifies that for the purposes of complying with specified  
              provisions of the integrated waste management act,  
              composting includes aerobic and anaerobic decomposition or  
              organic wastes. 

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "Existing  
              California law defines "biomass conversion" as the direct  
              combustion of certain listed types of biomass materials.   
              This definition excludes conversion technologies that can  
              more efficiently generate electricity from biomass with  
              lower air emissions.  Additionally, existing law is unclear  
              regarding how anaerobic digestion facilities should be  
              permitted.  This hampers the State's goals of diverting  
              additional organic materials from disposal."

           2)What are 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.  
             Conversion technologies are grouped into three primary  
             classes: thermochemical, biochemical, and physiocochemical.   


              Thermochemical conversion  processes include combustion,  









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             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 all of the organic portion  
             of suitable feedstocks.  The inorganic fraction of a  
             feedstock does not contribute to the energy products  
             produced, but may result in fouling of high temperature  
             equipment. Inorganic constituents may also accelerate some  
             of the conversion reactions. 

              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 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.  The residue called digestate  
             can be composted.

              Physiochemical conversion  involves the physical and chemical  
             synthesis of products from feedstocks (for example,  
             biodiesel from waste fats, oils, and grease--known as FOG)  
             and is primarily associated with the transformation of fresh  
             or used vegetable oils, animal fats, greases, tallow, and  
             other suitable feedstocks into liquid fuels or biodiesel. 

             The definition of transformation in current law captures  
             many thermochemical, biochemical and physiocochemical  
             conversion technologies, except those processes which are  
             specifically excluded, namely composting, gasification and  
             biomass conversion. Under current law, only 10% of solid  
             waste that undergoes transformation may count as diversion,  
             for purposes of compliance by local governments with the 50%  
             solid waste diversion mandate. Biomass conversion, currently  
             defined as the controlled combustion of specified biomass  
             feedstocks when separated from municipal solid waste, is  
             excluded from the definition of transformation, and is not  









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             counted as disposal.  SB 804, by adding conversion  
             technologies in the definition of biomass conversion, would  
             exclude those same feedstocks when processed by conversion  
             technologies, from being counted as disposal. 

            3) Composting and anaerobic digestion  .  Both composting and  
              anaerobic digestion (AD) refer to the biological  
              decomposition of organic material. AD is a fermentation  
              technique that operates without free oxygen and results in  
              a biogas containing mostly methane and carbon dioxide, with  
              some fraction of impurities including hydrogen sulfide and  
              ammonia. Anaerobic digestion occurs in manure lagoons  
              (covered or not), controlled reactors, or digesters and is  
              the principal process occurring in landfills. In contrast,  
              composting is an aerobic process, using oxygen, primarily  
              used to produce nutrient rich soil. 

            4) Regulating anaerobic digestion and composting  . CalRecycle  
              regulates solid waste handling, processing and disposal,  
              including the operation of landfills, transfer-processing  
              stations, material recovery facilities, compost facilities  
              and waste-to-energy facilities, or conversion facilities  
              (transformation).  CalRecycle's regulatory structure is  
              designed to provide a level of regulatory oversight  
              commensurate with the impacts associated with a solid waste  
              handling or disposal activity.  Transformation facilities,  
              including incineration and pyrolysis, use municipal solid  
              waste (MSW) as their feedstock, and are required to obtain  
              a full solid waste facility permit, which entails the  
              greatest level of review and oversight due to the potential  
              hazards associated with processing MSW.  Because of the  
              extensive permitting requirements, full solid waste  
              facility permits are much more costly and time consuming to  
              obtain for the owner or operator.  

              The definition for transformation includes "other  
              biological conversion other than composting" and because  
              current law lacks a definition for AD, concerns have been  
              raised that anaerobic digestion could fall under the  
              definition of high-heat technologies commonly identified  
              with transformation, making such facilities more difficult  
              to permit in the state.










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              An organic (and, therefore compostable) feedstock is used  
              for AD, and for that reason, AD facilities do not pose the  
              same hazards as transformation facilities handling MSW. 

              SB 804 would clarify that for purposes of promoting waste  
              management practices, achieving the statewide 75% solid  
              waste diversion target, and as a part of county and city  
              composting programs, composting includes AD.

               Suggested amendment  . There are many other provisions in the  
              Act not referenced in this bill that reference composting.  
              The bill could create confusion by specifying only a few  
              sections of the Act that reference composting include  
              anaerobic digestion. In order to treat anaerobic digestion  
              consistently throughout the Act, an amendment should be  
              taken to strike the code sections referenced in the  
              definition of compost.  

            5) Previous version  . The previous version of SB 804 included  
              much more expansive language regarding conversion  
              technologies, and contained significant changes to CEQA,  
              renewable portfolio standard (RPS) and waste diversion  
              policies as they currently apply to conversion  
              technologies. The Committee may wish to secure a commitment  
              from the author that if the bill is later amended to  
              include similar types of policy changes, the Senate  
              Environmental Quality Committee will request that the bill  
              come back to committee. 

            6) Related legislation  .

              a)    AB 997 (Chesbro) of 2013 defines anaerobic digestion  
                 in the Integrated Waste Management Act and amends the  
                 definition of composting to include anaerobic digestion  
                 processes. AB 997 is currently on the Assembly floor.  

              b)    AB 1126 (Gordon) of 2013 adds thermal conversion to  
                 the definition of biomass conversion, clarifies that  
                 composting includes anaerobic digestion, and makes other  
                 changes related to municipal solid waste conversion. AB  
                 1126 is currently in Assembly Natural Resources. 

            SOURCE  :        California State Association of Counties 









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                          County of Los Angeles
                          
            SUPPORT  :       Los Angeles County Solid Waste Management  
                          Committee/
                              Integrated Waste Management Task Force
            
           OPPOSITION  :    None on file