BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 804
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          Date of Hearing:   August 13, 2013

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                  Luis Alejo, Chair
                     SB 804 (Lara) - As Amended:  August 5, 2013

           SENATE VOTE  :   32-7
           
          SUBJECT  :  Biomass and Composting

           SUMMARY  :  Provides expanded authority for biomass and composting  
          facilities.  Specifically,  this bill  : 

             1)   Includes conversion technologies that use specified  
               biomass feedstock in the definition of "biomass conversion"  
               for purposes of the Integrated Waste Management Act (IWMA).

             2)   Defines composting under the IWMA to include aerobic  
               decomposition and anaerobic decomposition of organic waste.

           EXISTING LAW  :

          1)Requires cities and counties to divert 50% of the solid waste  
            disposed of within their jurisdiction through source  
            reduction, recycling, and composting, but authorizes a city or  
            county to comply with up to 10% of the 50% diversion  
            requirement through biomass conversion.  This requirement is  
            contained in the IWMA.

          2)Defines "biomass conversion" as the controlled combustion of  
            agricultural waste, yard and garden clippings, leaves and  
            forestry residue, wood chips, wood waste and non-recyclable  
            pulp or non-recyclable paper materials when these substances  
            are separated from other solid waste.  The combustion of these  
            materials is used for producing electricity or heat.

          3)Excludes from the definition of "biomass conversion" the  
            controlled combustion of pulp or paper materials, sewage or  
            industrial sludge, medical, hazardous, or radioactive wastes.

          4)Defines "composting" to mean the controlled or uncontrolled  
            biological decomposition of organic wastes.

           FISCAL EFFECT  :   Unknown.









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           COMMENTS  :   

           1)Need for the 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)Biomass in California  

            According to the State Energy Commission, at present biomass  
            in California is converted to electric power though one of two  
            processes based on the characteristics of the biomass.   
            Two-thirds of California's biomass power capacity is generated  
            by the direct combustion of solid biomass in boiler-steam  
            turbine plants, ranging in size from about 5 to 50 MW.  The  
            remainder is generated by the combustion of landfill gas and  
            biogas in a range of power generating equipment including  
            boiler-steam turbine systems, reciprocating engines, and gas  
            turbines.

            According to information from the California Biomass  
            Collaborative, there are 22 biomass conversion facilities in  
            commercial operation in California.  These plants are located  
            throughout the state, often near timber harvest or  
            agricultural operations.  Most of these facilities were built  
            in the 1980s or early 1990s, after the federal Public  
            Utilities Regulatory Policy Act (PURPA) of 1978 required  
            utilities to purchase power provided by qualifying independent  
            power producers at relatively attractive rates.  However,  
            California's regulatory policies were restructured in 1996,  
            decreasing the financial incentives available for biomass  
            conversion facilities.

            Biomass facilities are generally subject to local air quality  
            district regulations and permit requirements.  For new or  
            modified facilities, "New Source Review" (NSR) regulations may  
            require the use of "best available control technology" (BACT)  
            for PM, NOx, SOx, or other emissions.  NSR may also require  
            the use of emission reduction credits (ERCs).  In addition,  








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            federal rules that govern the permitting of new or modified  
            facilities may apply.  The primary GHG emitted from biomass  
            conversion plants is carbon dioxide, which is not controlled.

             Pending Biomass Projects:
           
            The County of Los Angles (a sponsor of the proposed  
            legislation) has undertaken a Conversion Technology  
            Demonstration Project and has approved three conversion  
            technology demonstration projects designed to address the  
            dwindling landfill space in Los Angeles.  To date, none of the  
            proposed projects would rely on a biomass conversion  
            technology include in this bill.  According to the  
            California's Department of Resources Recycling and Recovery  
            (CalRecycle), one potential project that may be affected by  
            his change in facility definition is the Cabin Creek Biomass  
            Facility Project Truckee, Placer County.

            Placer County is proposing to construct a two-megawatt (MW)  
            wood-to-energy biomass facility at the Eastern Regional  
            Materials Recovery Facility (MRF) and Transfer Station that  
            would use a gasification technology.

           3)Biomass Projects Problems in California:
           
            Some biomass facilities in California a have a history of  
            environmental issues including Clear Air act violations.  In  
            2011, the U.S. Environmental Protection Agency and the San  
            Joaquin Valley Air Pollution Control District lodged consent  
            decrees against two biomass power plants in Chowchilla and El  
            Nido, California.  The two companies have agreed to pay a  
            combined civil penalty of $835,000 to resolve alleged  
            violations of the federal Clean Air Act and District rules,  
            including excess emissions of air pollutants such as nitrogen  
            oxides, a precursor to ozone, and fine particulates.

           4)Aerobic and Anaerobic Composting :

            Aerobic  composting is the principle at work in aboveground  
            composting environment, whether it takes place in a  
            freestanding pile or in a container that provides air  
            circulation, such as a bin with open sides or a tumbler with  
            aeration holes.  

             In an  anaerobic  system there is an absence of gaseous oxygen.   








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            Oxygen is prevented from entering the system through physical  
            containment in sealed tanks.  Anaerobes access oxygen from  
            sources other than the surrounding air.  The oxygen source for  
            these microorganisms can be the organic material itself or  
            alternatively may be supplied by inorganic oxides from within  
            the input material.  When the oxygen source in an anaerobic  
            system is derived from the organic material itself, then the  
            'intermediate' end products are primarily alcohols, aldehydes,  
            and organic acids plus carbon dioxide.  In the presence of  
            specialized methanogens, the intermediates are converted to  
            the 'final' end products of methane, carbon dioxide with trace  
            levels of hydrogen sulfide.  CalRecycle's regulation relating  
            to anaerobic digestion requires that it be conducted "in  
            vessel.  

            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 anaerobic digesters, 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.

           5)Arguments in Support  :

            Support for this bill comes from local government including  
            Ventura County who stated: "SB 804 redefines the term "biomass  








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            conversion" to include other conversion technologies in and  
            clarifies that "composting" includes aerobic and anaerobic  
            decomposition of organic wastes. Such technologies promote the  
            highest and best use of resources while supporting the state's  
            key environmental goals.  Ventura County supports the vision  
            of solid waste as a potential local resource rather than  
            material destined for disposal within our local landfills.  
            Further, by including conversion technology as a viable option  
            for solid waste management, we can address the state's  
            Bioenergy Plan, which has identified municipal solid waste as  
            a substantially underutilized resource for biomass feedstock;  
            not only can this feedstock produce renewable fuels and energy  
            but it can also help achieve the environmental goals  
            established by AB 32, including the Renewable Portfolio  
            Standard, Low Carbon Fuel Standard and reducing Green House  
            Gas (GHG) emissions.  California can benefit from conversion  
            technologies through their potential to create green jobs,  
            reduce greenhouse gas emissions and other pollutants, reduce  
            groundwater contamination, produce green fuels and  
            electricity, and improve recycling rates while diverting trash  
            from our state's landfills."
           
          6)Arguments in Opposition  :  

             Opposition to this bill from environmentalists raised concerns  
            about the safety of conversion technologies.  According to the  
            Sierra Club California, "Conversion technologies using  
            high-heat processes like pyrolysis and gasification bear  
            substantial similarities to incineration. Combustion for  
            energy production is responsible for air, water and land  
            pollution.  These pollutants, including smog, acid rain, and  
            persistent bioaccumulative toxics, threaten human health and  
            the environment.  Since burning produces CO2, biomass  
            conversion technologies can aggravate global warming.  The EPA  
            now suggests "It is not safe to assume biomass power plants  
            are carbon neutral."

           7)Recommended Amendments:
           
            The purpose of this measure is to parse the definition of  
            biomass conversion that would allow cities and counties to  
            send increased material to a biomass facility and receive a  
            credit against the 50% diversion requirement applicable to  
            local agencies under the Integrated Waste Management Act.









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            The broadened definition of biomass may allow applicants to  
            avoid solid waste incineration rules.  Much of the materials  
            allowed to be burned under the Biomass permits are classified  
            as solid waste under California solid waste laws.  Yet, the  
            project is able to avoid solid waste incinerator facility  
            siting laws by calling itself a renewable energy "biomass"  
            project.  Across the country, biomass facilities often avoid  
            siting laws that would require comprehensive environmental  
            reviews and more community input.

             a)   The bill as drafted provides no definition of conversion  
               technologies.  The Committee may wish to provide a  
               definition of what constitutes these non-combustion  
               technologies by identifying the goals or outcome form the  
               conversion process.

             b)   Expanded definition of biomass "conversion" does not  
               require net environmental benefits from such technologies.   
               While the information supplied to the committee by the  
               sponsors suggests that conversion technologies are  
               environmentally beneficial and preferable to incineration  
               or controlled combustion for waste solid waste or wood  
               products, nothing in this measure suggests that a test  
               should be applied to these technologies prior to endorsing  
               their widespread use.  The Committee may wish to include a  
               standard that new conversion technologies be more  
               protective of the environment than the currently authorized  
               combustion facilities.

             c)   With the expanded definition of biomass projects and the  
               ability of waste processed as biomass the waste will no  
               longer be subject to the current 50% waste reduction and  
               recycling requirements.  The committee may wish to include  
               requirements that the new conversion technology biomass  
               projects certify that they both removed recyclable  
               materials from the waste stream and that local agencies are  
               meeting their waste reduction requirements prior to sending  
               material to new biomass facilities.

             d)   CalRecycle lacks clear enforcement authority to  
               determine if biomass facilities are processioning  
               non-authorized waste material.  The reduced regulatory  
               oversight for biomass facilities is based in part on the  
               limited organic feed stock that is processed by the  
               facilities.  The current law lack specific authority for  








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               CalRecycle or the local enforcement agency to inspect and  
               insure that the feed stock is, in fact, the limited  
               material.  The Committee may wish to include authority for  
               inspection of these feed stocks to ensure that unauthorized  
               municipal solid waste is not stored or used at these  
               facilities.

           8)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 Committee.

           9)Double Referral  .  SB 804 was heard in the Assembly Natural  
            Resources Committee on July 1, 2013 and passed on a 9 to 0  
            vote.


           REGISTERED SUPPORT / OPPOSITION  :

           Support 
          
          County of Los Angeles (sponsor) 
          California State Association of Counties (sponsor)
          City of Torrance
          County of Santa Barbra
          County of Santa Clara
          County of Ventura
          Environmental Problem Solving Enterprise
          North Valley Coalition of Concerned Citizens, Inc.
          Salinas Valley Solid Waste Authority
           
          Opposition 
           
          Global Alliance for Incinerator Alternatives
          Greenaction for Health and Environmental Justice
          Sierra Club California
           








                                                                 SB 804
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          Analysis Prepared by  :    Bob Fredenburg / E.S. & T.M. / (916)  
          319-3965