BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 804
                                                                  Page 1

          Date of Hearing:   September 10, 2013

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                  Luis Alejo, Chair
                    SB 804 (Lara) - As Amended:  September 9, 2013

           SENATE VOTE  :   32-7
           
          SUBJECT  :  Biomass

           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" as a facility  
            that uses a conversion technology capable of converting  
            biomass into marketable products and fuels through  
            noncombustion thermal, chemical, or biological processes.   
            Specifies that a 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 (e.g., air quality  
               management districts and air pollution control districts)  
               that a local agency sending biomass to the facility is in  
               compliance with the IWMA; and,

             b)   Allow Department of Resource Recycling and Recovery  
               (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 CalRecycle to notify the air district 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.  
           








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           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.  
             
          6)Requires the applicant for  a biomass conversion technology  
            facility to demonstrate to the local land use permitting  
            agency that the technology to be used:

             a)   Is designed to cause no net increase in toxic air  
               contaminants or criteria air pollutants when compared to  
               existing biomass controlled combustion technology; 
              
              b)   Is not designed to produce hazardous waste as a  
               byproduct of the technology; and,  

              c)   Complies with a state law relating to biomass conversion  
               ash.  

           EXISTING LAW  :

          1)Requires cities and counties to divert 50% of the solid waste  
            disposed 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.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, the bill is likely to increase costs to CalRecycle in  
          the $160,000 range for rulemaking and enforcement.

           COMMENTS  :   








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           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 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 particulate matter, sulphur oxides and nitrogen oxides or  
            other emissions.  NSR may also require the use of emission  
            reduction credits (ERCs).  In addition, federal rules that  
            govern the permitting of new or modified facilities may apply.  
             The primary green house gas (GHG) emitted from biomass  
            conversion plants is carbon dioxide, which is not controlled.








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             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  
            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)Arguments in Support  .   Support for this bill comes from local  
            government including Ventura County who stated: "SB 804  
            redefines the term "biomass conversion" to include other  
            conversion?. 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  








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            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."
           
          5)Arguments in Opposition  .  Opposition to this bill from  
            environmentalists raise 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."  
                
           6)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 on the Senate Inactive File.

             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 on  
               the Assembly Floor awaiting Concurrence in Senate  
               amendments.

           7)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) 








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          California State Association of Counties (sponsor)
          City of Torrance
          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
           
          Analysis Prepared by  :    Bob Fredenburg / E.S. & T.M. / (916)  
          319-3965