BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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          |SENATE RULES COMMITTEE            |                        SB 804|
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                                 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  
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          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. 


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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.

          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: 


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              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  

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          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  

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          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  

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          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

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