BILL ANALYSIS Ó SB 804 Page 1 Date of Hearing: August 30, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 804 (Lara) - As Amended: August 27, 2013 Policy Committee: Natural ResourcesVote:9-0 Environmental Safety 5-1 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill provides expanded authority for biomass and composting facilities under the Integrated Waste Management Act. Specifically, this bill: 1)Expands the definition of biomass conversion technologies to include a facility that uses a conversion technology capable of converting biomass into marketable products and fuels through non-combustion thermal, chemical, or biological process. Specifies that a biomass conversion technology facility does not include composting. 2)Requires a biomass conversion technology facility to: a) Remove all recyclable materials from the solid waste stream prior to the conversion process and certify to the local air district that those materials will be recycled or composted. b) Certify to the air district that a local agency sending biomass to a facility is in compliance with this bill and has reduced or recycled to the maximum extent feasible. c) Allow CalRecycle to inspect the facility to ensure any biomass processed meets the local certification requirements as specified. 1)Requires an air district to require immediate compliance with specified permits upon notification by CalRecyle that the biomass conversion facility is out of compliance with SB 804 Page 2 specified requirements. 2)Authorizes an air district to review and approve a facility if it meets all the specified requirements including those relating to public health risks, toxic air emissions and greenhouse gas emissions 3)Expands the definition of composting to include aerobic decomposition and anaerobic decomposition or organic wastes. FISCAL EFFECT Increased costs to CalRecycle in the $160,000 range for rulemaking and enforcement. COMMENTS 1)Rationale. The existing definition of biomass conversion excludes conversion technologies that generate electricity more efficiently and with lower air emissions. Existing law is unclear regarding, whether anaerobic digestion facilities are permitted, which hampers the state's goal for diverting additional organic materials from landfills. According to the sponsor, the County of Los Angeles, conversion technologies and anaerobic decomposition of organic wastes promote the highest and best use of resources while supporting the state's air quality and greenhouse gas reduction goals. This bill expands the definition of biomass conversion to include conversion technologies that use biomass feedstocks and specifies that anaerobic digestion facilities are solid waste facilities. This bill will allow cities and counties to send increased material to biomass facilities and receive credit toward mandatory diversion requirements in the Integrated Waste Management Act. 2)Background. CalRecycle administers the Integrated Waste Management Act of 1989. The Act requires local governments to divert 50% solid waste disposed by their jurisdictions from landfills. The traditional decomposition of landfills produces significant amounts of methane, a greenhouse gas emission. SB 804 Page 3 Anaerobic digestion refers to the controlled biological decomposition of organic material with little or no oxygen. Anaerobic digestion is not defined in current law but is considered a method of composting by the industry. Anaerobic digestion is widely used to manage waste from wastewater treatment and dairy manure. Anaerobic solid waste digesters are emerging in California with a number of new and proposed facilities underway. 3)Concerns. In its current draft, the bill raise several concerns relating to implementation. The biomass industry is concerned that this bill requires CalRecycle to inspect facilities for which it has no permitting authority and report violations to local air districts for enforcement action. This bill may also prevent the intended feedstock from being converted due to overly broad requirements relating to activities required before conversion. Lastly, the term toxic air emissions is not clearly defined in statute. The author may wish to amend this bill to address concerns. Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081