BILL ANALYSIS Ó SB 804 Page 1 Date of Hearing: July 1, 2013 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Wesley Chesbro, Chair SB 804 (Lara) - As Amended: June 25, 2013 SENATE VOTE : 32-7 SUBJECT : Solid waste: energy SUMMARY : Specifies that conversion technologies that use specified biomass feedstocks are included in the definition of "biomass conversion" for purposes of the Integrated Waste Management Act (IWMA). Defines "anaerobic digestion" and specifies that anaerobic digestion facilities are solid waste facilities. EXISTING LAW , under the IWMA: 1)Requires each local jurisdiction to divert 50 percent of solid waste from landfill disposal or transformation by January 1, 2000, through source reduction, recycling, and composting activities. 2) Establishes a state policy goal that 75 percent of solid waste generated in California be diverted from landfill disposal through source reduction, recycling or composting by 2020. 3)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 non-recyclable pulp or non-recyclable paper materials. 4)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. 5)Defines "composting" to mean the controlled or uncontrolled biological decomposition of organic wastes. This definition SB 804 Page 2 is currently interpreted to include aerobic and anaerobic decomposition. 6)Defines "transformation" to mean incineration, pyrolysis, distillation, or biological conversion other than composting. Specifies that transformation does not include composting, gasification, or biomass conversion. 7)Specifies that compost facilities are solid waste facilities for purposes of the IWMA and requires that operators acquire a solid waste facilities permit to operate. 8)Allows local jurisdictions to "count" wastes that go to transformation facilities for up to 10 percent of their 50 percent diversion requirement. THIS BILL : 1)Adds conversion technologies other than controlled combustion to the definition of biomass conversion. 2)Defines "anaerobic digestion" to mean a process of breaking down organic materials using microorganisms under controlled conditions in the absence of oxygen or in an oxygen-starved environment, other than in a landfill. 3)Revises the definition of "composting" to apply to the controlled or uncontrolled biological decomposition of organic wastes in the presence of oxygen. 4)Revises the definition of "transformation" to exclude biological conversion and to clarify that anaerobic digestion is not transformation. 5)Specifies that anaerobic digestion facilities are solid waste facilities for purposes of the IWMA and require solid waste facility permits. 6)Generally adds anaerobic digestion to the IWMA to clarify that it is considered diversion for purposes of meeting the 50 percent and 75 percent goals. FISCAL EFFECT : Unknown SB 804 Page 3 COMMENTS : Conversion technology . The term "conversion technologies" generally refers to a variety of technologies that process solid waste through chemical, biological, or other "non-combustion" thermal technologies to produce energy or renewable fuels. These technologies create energy using three main processes: thermochemical, biochemical, and physicochemical. Thermochemical conversion processes include high-heat technologies like 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 the entire organic portion of suitable feedstocks. The inorganic fraction (ash) does not contribute to the energy products and may contribute to fouling of high temperature equipment and increased nutrient loading in wastewater treatment and disposal facilities. Generally the ash must be disposed. Inorganic constituents may also accelerate some of the conversion reactions. Under current law, pyrolysis is considered transformation, while gasification is explicitly excluded from the definition of transformation. Biochemical conversion processes include aerobic conversion (i.e., composting), anaerobic digestion, which is currently regulated as composting, and anaerobic fermentation (for example, the conversion of sugars from cellulose to ethanol). Biochemical conversion processes use 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 as a soil amendment. The residue can be composted. Physiochemical conversion involves the physical and chemical synthesis of products from feedstocks (for example, biodiesel from waste fats, oils, and grease) 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. SB 804 Page 4 Dwindling landfill capacity and the infeasibility of siting and permitting new disposal sites have created a significant demand for alternative management options for MSW, especially in the Los Angeles area. However, significant barriers exist for the development of these technologies in California, including the lack of guidance on how these facilities could be permitted by CalRecycle, concerns relating to air emissions from conversion technology facilities, and whether these technologies are considered renewable under the Renewables Portfolio Standard and if they are considered recycling for purposes of the state's diversion requirements. Biomass conversion . Biomass conversion facilities use controlled combustion of organic material separated from other solid waste to produce electricity or heat. Biomass includes agricultural crop residues, bark, lawn, yard, garden clippings, leaves, silvicultural residue, tree and brush pruning, wood, wood chips, and wood waste and non-recyclable pulp or non-recyclable paper materials. Composting and anaerobic digestion. Composting and anaerobic digestion both 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. CalRecycle's regulation relating to anaerobic digestion requires that it be conducted "in vessel." In contrast, composting is an aerobic process, using oxygen, primarily used to process organic waste into a soil amendment. Managing organic waste. CalRecycle is tasked with diverting at least 75 percent of solid waste statewide by 2020. Currently, organic materials make up one-third of the waste stream and food continues to be the highest single item disposed at over 15 percent of disposal. CalRecycle is also charged with implementing its Strategic Directive 6.1, which calls for reducing organic waste disposal by 50 percent by 2020. According to CalRecycle, significant gains in organic waste diversion are necessary to meet the 75 percent goal and implementing Strategic Directive 6.1. Recycling technologies for organic waste include composting, anaerobic digestion, and other types of processing that generate renewable fuels, energy, soil amendments, and mulch. Compost and other soil amendments that can be produced from organic materials have been shown to SB 804 Page 5 improve soil health by incorporating organic matter, beneficial micro-organisms, and nutrients and reduce the need for chemical pesticides and fertilizers. These products also conserve water by allowing water to penetrate the soil more quickly and decreasing runoff. This bill. According to the author, the existing definition of biomass "excludes conversion technologies that can more efficiently generate electricity from biomass with lower air emissions." This bill would clarify that conversion technologies can be used for the management of separated organic wastes. The author also states that, "existing law is unclear regarding how anaerobic digestion facilities should be permitted. This hampers the state's goals for diverting additional organic materials from disposal." Suggested amendments . Recent amendments to this bill are intended to clarify how anaerobic digestion is regulated under the IWMA; however, CalRecycle has already promulgated regulations that establish permitting and oversight for anaerobic digestion facilities under their existing compost facility regulations. Several facilities have been permitted over the last few years, and many are now in operation throughout California. The need for the changes proposed by this bill is not clear. Moreover, these provisions would require CalRecycle to promulgate regulations for a new permitting system for this technology and may result in unintended effects on existing incentives for composting and anaerobic digestion. The committee may wish to remove the references to anaerobic digestion and allow the author to work with the policy committees, CalRecycle, and stakeholders to ensure appropriate regulatory oversight and permitting and to preserve ongoing efforts to properly manage the organic waste stream. The recent amendments also strike out "biological conversion" from the definition of transformation. To avoid any confusion or unintended consequences relating to the types of technologies that may be considered biological conversion, the committee may wish to amend the bill to keep biological conversion within the definition of transformation. Double referral . This bill is double referred to the SB 804 Page 6 Environmental Safety and Toxics Materials Committee. REGISTERED SUPPORT / OPPOSITION : Support County of Los Angeles (sponsor) County of Santa Clara California State Association of Counties City of Torrance Opposition None on file Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916) 319-2092