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). SB 804 Page 2 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 SB 804 Page 3 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 SB 804 Page 4 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. SB 804 Page 5 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 SB 804 Page 6 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. SB 804 Page 7 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. SB 804 Page 8 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