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 SB 804 Page 2 §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, SB 804 Page 3 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 SB 804 Page 4 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. SB 804 Page 5 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 SB 804 Page 6 County of Los Angeles SUPPORT : Los Angeles County Solid Waste Management Committee/ Integrated Waste Management Task Force OPPOSITION : None on file