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
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            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
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            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