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  








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            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
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           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.









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          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  








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          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
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          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