BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 804| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 804 Author: Lara (D) Amended: 9/11/13 Vote: 21 SENATE ENVIRONMENTAL QUALITY COMMITTEE : 6-1, 5/1/13 AYES: Hill, Gaines, Calderon, Corbett, Jackson, Leno NOES: Fuller NO VOTE RECORDED: Hancock, Pavley SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 SENATE FLOOR : 32-7, 5/29/13 AYES: Beall, Block, Calderon, Cannella, Corbett, Correa, De León, DeSaulnier, Emmerson, Evans, Gaines, Galgiani, Hancock, Hernandez, Hill, Hueso, Huff, Jackson, Lara, Leno, Lieu, Liu, Monning, Padilla, Pavley, Price, Roth, Steinberg, Torres, Wolk, Wright, Yee NOES: Anderson, Berryhill, Fuller, Knight, Nielsen, Walters, Wyland NO VOTE RECORDED: Vacancy ASSEMBLY FLOOR : Not available SUBJECT : Solid waste: energy SOURCE : California State Association of Counties County of Los Angeles DIGEST : This bill specifies that conversion technologies that CONTINUED SB 804 Page 2 use specified biomass feedstock are included in the definition of "biomass conversion" for purposes of the Integrated Waste Management Act (IWMA). Assembly Amendments (1) specify that "biomass conversion technology" does not include biomass controlled combustion; (2) delete the definition of composting; (3) specify that biomass conversion technology facilities must be more protective than existing biomass controlled combustion technology and is designed to cause no net increase in toxic air contaminants or criteria air pollutants; (4) require 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; (5) require the Department of Resource Recycle and Recovery (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; (6) require a biomass conversion technology facility to submit specified documents to the city or county, including a city and county, with land use permitting authority over the proposed facility that demonstrate the design and operation of the facility; and (7) make other clarifying and technical changes. ANALYSIS : 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. CONTINUED SB 804 Page 3 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. 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 CalRecycle, consistent with its existing authority 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." 1. 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. 2. 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. 3. Requires the applicant for a biomass conversion technology facility to demonstrate to the local land use permitting agency that the technology to be used: CONTINUED SB 804 Page 4 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. 1. Requires a biomass conversion technology facility to submit specified documents to the city or county, including a city and county, with land use permitting authority over the proposed facility that demonstrate the design and operation of the facility. Background Conversion technologies . According to CalRecycle, conversion technologies are processes that can convert organic materials into usable forms of energy including heat, steam, electricity, natural gas, and liquid fuels. Conversion technologies are grouped into three primary classes: thermochemical, biochemical, and physiochemical. Thermochemical conversion processes include combustion, gasification, and pyrolysis. Thermochemical conversion is characterized by higher temperatures and faster conversion rates. It is best suited for lower moisture feedstock. Thermochemical routes can convert all of the organic portion of suitable feedstock. The inorganic fraction of a feedstock does not contribute to the energy products produced, but may result in fouling of high temperature equipment. Inorganic constituents may also accelerate some of the conversion reactions. Biochemical conversion processes include aerobic conversion (i.e., composting), anaerobic digestion (AD) (which occurs in landfills and controlled reactors or digesters), and anaerobic fermentation (for example, the conversion of sugars from cellulose to ethanol). Biochemical conversion proceeds at lower temperatures and lower reaction rates. Higher moisture feedstocks are generally good candidates for biochemical CONTINUED SB 804 Page 5 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 feedstock exits the process as a residue that may or may not have market value. The residue called digestate can be composted. Physiochemical conversion involves the physical and chemical synthesis of products from feedstock (for example, biodiesel from waste fats, oils, and grease-known as FOG) and is primarily associated with the transformation of fresh or used vegetable oils, animal fats, greases, tallow, and other suitable feedstock into liquid fuels or biodiesel. The definition of transformation in existing law captures many thermochemical, biochemical and physiochemical conversion technologies, except those processes which are specifically excluded, namely composting, gasification and biomass conversion. Under existing law, only 10% of solid waste that undergoes transformation may count as diversion, for purposes of compliance by local governments with the 50% solid waste diversion mandate. Biomass conversion, currently defined as the controlled combustion of specified biomass feedstock when separated from municipal solid waste (MSW), is excluded from the definition of transformation, and is not counted as disposal. Composting and AD . Both composting and AD refer to the biological decomposition of organic material. AD 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. AD occurs in manure lagoons (covered or not), controlled reactors, or digesters and is the principal process occurring in landfills. In contrast, composting is an aerobic process, using oxygen, primarily used to produce nutrient rich soil. CalRecycle regulates solid waste handling, processing and disposal, including the operation of landfills, transfer-processing stations, material recovery facilities, compost facilities and waste-to-energy facilities, or conversion facilities (transformation). CalRecycle's regulatory structure is designed to provide a level of regulatory oversight commensurate with the impacts associated with a solid waste CONTINUED SB 804 Page 6 handling or disposal activity. Transformation facilities, including incineration and pyrolysis, use MSW as their feedstock, and are required to obtain a full solid waste facility permit, which entails the greatest level of review and oversight due to the potential hazards associated with processing MSW. Because of the extensive permitting requirements, full solid waste facility permits are much more costly and time consuming to obtain for the owner or operator. The definition for transformation includes "other biological conversion other than composting" and because existing law lacks a definition for AD, concerns have been raised that AD could fall under the definition of high-heat technologies commonly identified with transformation, making such facilities more difficult to permit in the state. An organic (and, therefore compostable) feedstock is used for AD, and for that reason, AD facilities do not pose the same hazards as transformation facilities handling MSW. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Assembly Appropriations Committee, this bill is likely to increase costs to CalRecycle in the $160,000 range for rulemaking and enforcement. SUPPORT : (Verified 9/12/13) California State Association of Counties (co-source) County of Los Angeles (co-source) City of Torrance County of Ventura Environmental Problem Solving Enterprise North Valley Coalition of Concerned Citizens, Inc. Salinas Valley Solid Waste Authority OPPOSITION : (Verified 9/12/13) Global Alliance for Incinerator Alternatives Greenaction for Health and Environmental Justice Sierra Club California ARGUMENTS IN SUPPORT : According to the author, "Existing CONTINUED SB 804 Page 7 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 AD facilities should be permitted. This hampers the state's goals of diverting additional organic materials from disposal." RM:nek 9/12/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED