BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                SB 804
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Jerry Hill, Chair
                              2013-2014 Regular Session
                                           
           BILL NO:    SB 804
           AUTHOR:     Lara
           AMENDED:    September 11, 2013
           FISCAL:     Yes               HEARING DATE: September 12, 2013
           URGENCY:    No                CONSULTANT:     Rebecca Newhouse
            
           SUBJECT  :    BIOMASS: CONVERSION TECHNOLOGY
           
            SUMMARY  :    
           
            Existing law  , under the California Integrated Waste Management  
           Act (Act): 

           1) Requires each city or county source reduction and recycling  
              element to include an implementation schedule that shows a  
              city or county must divert 50% of solid waste from landfill  
              disposal or transformation by January 1, 2000, through  
              source reduction, recycling, and composting activities  
              (Public Resources Code §41780).

           2) Establishes a state policy goal that 75% of solid waste  
              generated be diverted from landfill disposal through source  
              reduction, recycling or composting by 2020 (PRC §41780.01).  


           3) Defines "transformation" to mean incineration, pyrolysis,  
              distillation, or biological conversion other than  
              composting and specifies that "transformation" does not  
              include composting, gasification, or biomass conversion  
              (PRC §40201).

           4) Defines "biomass conversion" to mean the controlled  
              combustion, when separated from other solid waste and used  
              for producing electricity or heat of specified biomass,  
              including, agricultural crop residues, bark, lawn, yard,  
              garden clippings, leaves, silvicultural residue, tree and  
              brush pruning, wood, wood chips, and wood waste and  
              nonrecyclable pulp or nonrecyclable paper materials (PRC  
              §40106).









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           5) Specifies that "biomass conversion" does not include the  
              controlled combustion of recyclable pulp or recyclable  
              paper materials, or materials that contain sewage sludge,  
              industrial sludge, medical waste, hazardous waste, or  
              either high-level or low-level radioactive waste (PRC  
              §40106).

           6) Defines "composting" to mean the controlled or uncontrolled  
              biological decomposition of organic wastes (PRC §40116.1).

            This bill as approved by the Senate Environmental Quality  
           Committee (April 22, 2013 version of the bill):   

           1) Includes conversion technologies in the definition of  
              "biomass conversion."

           2) Clarifies that for the purposes of complying with specified  
              provisions of the integrated waste management act,  
              composting includes aerobic and anaerobic decomposition of  
              organic wastes. 

            Amendments taken in the Assembly (September 5, 2013 version of  
           the bill):
            
           1)Remove the provision of the bill relating to composting  
             including anaerobic decomposition.  

           2)Define "biomass conversion technology facility" to mean a  
             facility that uses a conversion technology capable of  
             converting nonrecyclable biomass, as specified, into  
             marketable products and fuels through noncombustion thermal,  
             chemical, or biological processes, and specify that a  
             biomass conversion technology facility does not include  
             composting or biomass controlled combustion. 

           3)Clarify that conversion technology refers to the technology  
             used by a "biomass conversion technology facility" defined  
             above.  

           4)Require biomass conversion technology facilities to: 

                a)     Certify to the air district that a local agency  









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                  sending biomass to the facility is in compliance with  
                  the Act; and,

                b)     Allow Department of Resources 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  
                  eligible biomass, as specified.
           5)Require 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 require the air district to  
             investigate and begin necessary enforcement actions.  

           6)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.

           7)Require a biomass conversion technology facility to submit  
             to the city, county, or city and county with land use  
             permitting authority over the facility, documents that  
             demonstrate that the facility is: 

                a)     Designed to cause no net increase in toxic air  
                  contaminants and criteria air pollutants as compared to  
                  existing and comparable biomass controlled combustion  
                  technology; 

                b)     Not designed to produce hazardous waste as an end  
                  byproduct of the technology unless the hazardous waste  
                  is treated at the facility to render it nonhazardous;  
                  and

                c)     Comply with Health and Safety Code Section  
                  25143.5, relating to biomass conversion ash.  

            COMMENTS  :

            1) Referral to the Committee pursuant to Senate Rule 29.10  . As  









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              seen previously by this Committee, SB 804 included other  
              conversion technologies in the definition of biomass  
              conversion and included anaerobic decomposition in the  
              definition of composting. 

              The current version of the bill, as amended in the  
              Assembly, removes the provision concerning composting and  
              adds a new chapter containing various requirements for  
              noncombustion biomass conversion technology facilities. 

            2) Purpose of 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.  This hampers the State's goals of  
              diverting additional organic materials from disposal."

           3)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. 

             Thermochemical conversion processes are characterized by  
             higher temperatures and faster conversion rates and include  
             combustion, gasification, and pyrolysis. Pyrolysis is the  
             thermal decomposition of feedstock at high temperatures  
             (greater than 400?F) in the absence of air, whereas  
             gasification is a process that uses air or oxygen and high  
             heat, (typically above 1300?F) to convert feedstock into a  
             synthetic gas or fuel gas. Gasification uses less air or  
             oxygen than incineration processes. Thermochemical  
             conversion is best suited for lower moisture feedstocks.  

             Biochemical conversion processes include aerobic conversion  
             (i.e., composting), anaerobic digestion (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 processes.










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             The definition of transformation in current law captures  
             many thermochemical and biochemical conversion technologies,  
             but some processes that would technically qualify as  
             conversion are specifically excluded by statute, namely  
             composting, gasification and  biomass conversion  (i.e.,  
             combustion of greenwaste). 

            4) Solid waste diversion credit for biomass at conversion  
              facilities  . Current law requires jurisdictions to divert  
              50% of solid waste from landfill disposal or transformation  
              through source reduction, recycling, and composting  
              activities. Prior to 2008, diversion estimates to determine  
              compliance with the 50% diversion mandate were performed by  
              calculating the quantity of solid waste generation and  
              estimating the amount of diversion. SB 1016 (Wiggins)  
              Chapter 343, Statutes of 2008, changed the diversion  
              calculation by only considering the quantity of disposal,  
              as reported by disposal facilities (transformation  
              facilities and landfills) and the jurisdiction's  
              population, and comparing that value to a baseline rate of  
              disposal.

              Biomass conversion, currently defined as the controlled  
              combustion of specified biomass feedstocks when separated  
              from municipal solid waste, is excluded from the definition  
              of transformation, and therefore, biomass that is combusted  
              at a biomass conversion facility is not counted as  
              disposal.   SB 804, by adding conversion technologies in the  
              definition of biomass conversion, would exclude those same  
              feedstocks when processed by conversion technologies, from  
              being counted as disposal  . 

            5) Biomass in California  . According to data from the  
              California Biomass Collective, there are 28 operational  
              facilities in the state using wood or agriculture biomass  
              with a net generation of 565 megawatts (MW).  In addition  
              to these larger scale, biomass combustion facilities, there  
              are a handful of small scale, demonstration and/or research  
              projects in the state that use a noncombustion conversion  
              technology, which generate or plan to generate anywhere  
              from a fraction of an MW to several MWs using biomass. Of  
              these facilities, the Dixon Ridge Farms in Dixon, CA uses a  
              gasification technology to generate 0.1 MW of electricity  









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              from woody and agricultural biomass, and the Cabin Creek  
              Biomass Facility Project in Placer County is proposing to  
              construct a two-megawatt wood-to-energy biomass facility  
              that would also use gasification technology. These  
              facilities may be affected by the provisions in SB 804  
              concerning noncombustion conversion technologies that  
              process eligible biomass.

            6) Biomass and RPS  . Current law identifies electrical  
              generation facilities that use biomass as renewable  
              electrical generation facilities and can be certified, if  
              they meet fuel specific requirements, by the CEC as  
              RPS-eligible, and therefore may be used by retail sellers  
              of electricity, and POUs to satisfy their RPS procurement  
              goals. 

              The California Energy Commission defines biomass as any  
              organic material not derived from fossil fuels, including  
              the feedstocks eligible under biomass conversion. 

              Because, for facilities using biomass to generate  
              electricity, the CEC looks at the biomass used, and not the  
              type of technology used to process that biomass,  SB 804  
              does not alter current law regarding RPS credit and biomass  
              conversion technology facilities, since it does not change  
              which feedstock are eligible under biomass conversion.
               

            7) Theory vs. Reality  . Amendments taken in the Assembly  
              Environmental Safety and Toxic Materials Committee to add  
              requirements for noncombustion biomass conversion  
              technology facilities were intended to ensure that these  
              new, ostensibly more advanced and cleaner noncombustion  
              technologies are more protective of the environment as  
              their proponents claim. 

              However, the current language of the bill requires that  
              documents be submitted to the city or county with local  
              land use permitting authority that show the facility is  
              "designed" to cause no net increase in air pollutants as  
              compared to existing and comparable biomass combustion, and  
              that the facility is not "designed" to produce hazardous  
              waste as a byproduct.  









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              Being designed to do something, and actually meeting that  
              goal are two very different things. It is unclear whether a  
              facility would be able to continue to operate if it was in  
              fact "designed" to meet those requirements, but was shown,  
              at some later date, to not lower air pollutant emissions  
              compared to controlled combustion, or that it produced a  
              hazardous byproduct as a result of operations. 

            8) Nonrecyclable biomass  . Current law specifies certain  
              biomass feedstocks, namely agricultural waste, bark, lawn,  
              yard, garden clippings, leaves, silvicultural residue, tree  
              and brush pruning, wood waste and nonrecyclable pulp or  
              nonrecyclable paper, as eligible feedstocks for biomasss  
              conversion facilities. 

              SB 804 specifies that all of the aforementioned biomass  
              feedstocks must be "nonrecyclable" for noncombustion  
              biomass conversion technology facilities. This requirement  
              is unclear in its intent, since most of those biomass  
              feedstocks can be processed into mulch, potentially  
              qualifying as recyclable. 

            9) Two standards for biomass conversion  . SB 804, as amended in  
              the Assembly, contains additional requirements for  
              facilities processing biomass using noncombustion  
              conversion technologies compared to facilities processing  
              biomass with controlled combustion, although both would be  
              defined as "biomass conversion" under SB 804. 

              Those additional provisions require facilities to certify  
              to air districts that a local agency sending biomass to the  
              facility is in compliance with the state's solid waste  
              laws, require facilities to allow CalRecycle to inspect  
              noncombustion biomass conversion technology facilities, and  
              require CalRecyle to notify air districts within 48 hours  
              if illegal feedstocks are being utilized for further air  
              district investigation. Biomass conversion technology  
              facilities must also submit documents to local land use  
              agencies that show that the facility is designed to reduce  
              toxic and criteria air emissions compared to biomass  
              combustion facilities and is not designed to produce  
              hazardous waste as an end byproduct.  









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               SB 804 is not technology neutral, and instead sets a higher  
              standard for noncombustion conversion technologies  
              processing biomass compared to controlled combustion of  
              those same feedstocks  . It is unclear why the use of  
              noncombustion conversion technology requires additional  
              requirements outside of the existing regulatory framework  
              designed to protect environmental quality (including CEQA  
              and air district permitting process) that are not required  
              for traditional combustion of eligible biomass. 

              If these additional requirements are necessary to protect  
              the environment in the case of noncombustion conversion  
              technologies processing biomass, should they not also be  
              applied to biomass combustion facilities, as well? 

            10)Related legislation  . AB 1126 (Gordon) of 2013 makes changes  
              related to permitting for solid waste conversion meeting  
              specified requirements. AB 1126 passed out of the Assembly  
              on concurrence. 

            SOURCE  :        California State Association of Counties 
                          County of Los Angeles
                          
            SUPPORT  :       Los Angeles County Solid Waste Management  
                          Committee/
                              Integrated Waste Management Task Force
                          Waste Management
            
           OPPOSITION  :    California Refuse Recycling Council
                          Center for Biological Diversity