BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 804
                                                                  Page  1


          SENATE THIRD READING
          SB 804 (Lara)
          As Amended September 11, 2013
          Majority vote 

           SENATE VOTE  :32-7  

          ENVIRONMENTAL SAFETY           4-1                              
           
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          |Ayes:|Alejo, Bloom, Lowenthal,  |     |                          |
          |     |Ting                      |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Stone                     |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Specifies that conversion technologies that use  
          specified biomass feedstock 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 its existing authority to  
               inspect the facility to ensure that the facility is only  
               processing biomass that meets the local certification  








                                                                  SB 804
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               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.  
           
           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 at the end of  
               the production process, unless the hazardous waste is  
               treated at the facility to render it nonhazardous; and,  

              c)   Complies with state waste management law and specific  
               applicable standards 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.








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          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  :   

           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 megawatts.  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.








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            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 greenhouse gas emitted from biomass conversion  
            plants is carbon dioxide, which is not controlled.

             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 included 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  
            wood-to-energy biomass facility at the Eastern Regional  
            Materials Recovery Facility and Transfer Station that would  
            use a gasification technology.

           
          Analysis Prepared by  :    Bob Fredenburg / E.S. & T.M. / (916)  
          319-3965 


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