BILL ANALYSIS Ó SB 804 Page 1 SENATE THIRD READING SB 804 (Lara) As Amended September 6, 2013 Majority vote SENATE VOTE : 32-7 NATURAL RESOURCES 9-0 ENVIRONMENTAL SAFETY 5-1 ----------------------------------------------------------------- |Ayes:|Chesbro, Grove, Bigelow, |Ayes:|Alejo, Dahle, Bloom, | | |Garcia, Muratsuchi, | |Donnelly, Ting | | |Patterson, Skinner, | | | | |Stone, Williams | | | | | | | | |-----+--------------------------+-----+--------------------------| | | |Nays:|Stone | | | | | | ----------------------------------------------------------------- APPROPRIATIONS 12-1 ----------------------------------------------------------------- |Ayes:|Gatto, Bocanegra, | | | | |Bradford, | | | | |Ian Calderon, Campos, | | | | |Eggman, Gomez, Hall, | | | | |Holden, Pan, Quirk, Weber | | | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Donnelly | | | | | | | | ----------------------------------------------------------------- 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). Specifically, this bill : 1)Adds "conversion technologies other than controlled combustion" to the definition of biomass conversion. 2)Defines "biomass conversion technology facility" to mean a facility that uses a conversion technology capable of converting biomass into marketable products and fuels through noncombustion thermal, chemical, or biological processes. SB 804 Page 2 Specifies that biomass conversion technology facility does not include composting or biomass controlled combustion. 3)Requires biomass conversion technology facilities to: a) Certify to the air district that a local agency sending biomass to the facility is in compliance with the IWMA; and, b) Allow CalRecycle, consistent with their existing authority to inspect legal and illegal solid waste facilities, to inspect the facility to ensure that the facility is only processing biomass that meets the local certification requirement and is limited to the "biomass eligible waste stream." 4)Requires the Department of Resources Recycling and Recovery (CalRecycle) to notify the air district (e.g., air quality management districts and air pollution control districts) within 48 hours if there is a violation of the state's solid waste laws, and requires the air district to investigate and begin necessary enforcement actions. 5)Requires an air district, prior to issuing a permit for a biomass conversion technology facility, to determine whether or not the facility meets the requirements for best available control technology for criteria air pollutants, toxic air contaminants, and greenhouse gases, and that the technology : a) Is "more protective" than existing biomass controlled combustion technology; b) Causes no net increase in public health risks, toxic air contaminants, or criteria air pollutants as compared to existing biomass controlled combustion technology; c) Is not designed to produce hazardous waste as a byproduct of the technology; and, d) Complies with the Health and Safety Code Section 25143.5, relating to biomass conversion ash. FISCAL EFFECT : According to the Assembly Appropriations Committee, this bill has increased costs to CalRecycle in the $160,000 range for rulemaking and enforcement. SB 804 Page 3 COMMENTS : 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. Dwindling landfill capacity and the infeasibility of siting and permitting new disposal sites have created a significant demand SB 804 Page 4 for alternative management options for municipal solid waste, 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 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 both refer to the biological decomposition of organic material. Anaerobic digestion 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. CalRecycle is tasked with diverting at least 75% 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% of disposal. CalRecycle is also charged with implementing its Strategic Directive 6.1, which calls for reducing organic waste disposal by 50% by 2020. According to CalRecycle, significant gains in organic waste diversion are necessary to meet the 75% 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 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 SB 804 Page 5 by allowing water to penetrate the soil more quickly and decreasing runoff. 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. Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0002626