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    
           
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          |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.   








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            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.









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           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  








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          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  








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          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 


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