BILL ANALYSIS Ó SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator Wieckowski, Chair 2015 - 2016 Regular Bill No: AB 590 ----------------------------------------------------------------- |Author: |Dahle | ----------------------------------------------------------------- |-----------+-----------------------+-------------+----------------| |Version: |7/9/2015 |Hearing | 7/15/2015 | | | |Date: | | |-----------+-----------------------+-------------+----------------| |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Rebecca Newhouse | | | | ----------------------------------------------------------------- SUBJECT: Greenhouse Gas Reduction Fund. ANALYSIS: Existing law: 1) Under the California Global Warming Solutions Act (AB 32), requires the Air Resources Board (ARB) to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to 1990 levels by 2020 and to adopt rules and regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions. ARB is authorized to adopt a regulation that establishes a market-based compliance mechanism for sources that emit GHGs. (Health and Safety Code (HSC) §35800 et seq.) 2) Establishes the Greenhouse Gas Reduction Fund (GGRF) in the State Treasury, requires all moneys, except for fines and penalties, collected pursuant to a market-based mechanism be deposited in the fund and requires the Department of Finance, in consultation with the state board and any other relevant state agency, to develop, as specified, a three-year investment plan for the moneys deposited in the GGRF. (Government Code §16428.8) 3) Prohibits the state from approving allocations for a measure or program using GGRF moneys except after determining that the use of those moneys furthers the regulatory purposes of AB 32, and requires moneys from the GGRF be used to facilitate the achievement of reductions of GHG emissions in California. (HSC §39712) AB 590 (Dahle) Page 2 of ? 4) Authorizes expenditures from the GGRF for investments that reduce GHG emissions through, among other things, clean energy and renewable energy generation and advanced biofuels. (HSC §39712). 5) Requires at least 25% of available moneys in the GGRF to go toward projects that provide benefits to disadvantaged communities, and at least 10% to projects located within disadvantaged communities. (HSC §39713) 6) Under the Renewable Portfolio Standard (RPS) requires investor-owned utilities (IOUs), publicly owned utilities (POUs) and certain other retail sellers of electricity, to achieve 33% of their energy sales from an eligible renewable electrical generation facility by December 31, 2020. (Public Utilities Code §399.11 et seq.) 7) Provides that eligible renewable electrical generation facilities must use biomass, solar thermal, photovoltaic, wind, geothermal, renewable fuel cells, small hydroelectric, digester gas, limited non-combustion municipal solid waste conversion, landfill gas, ocean wave, ocean thermal, and tidal current to generate electricity, and requires that renewable electrical generation facilities must meet certain requirements, as specified (Public Resources Code §25741). This bill: 1) Authorizes the use of GGRF moneys, upon appropriation, to the State Energy Resources Conservation and Development Commission (CEC) for monthly incentive payments to maintain the current level of biomass power generation and geothermal energy generation in the state and to revitalize currently idle facilities in certain regions. 2) Specifies that solid-fuel biomass electrical generation facilities are eligible for incentive funding if the energy is generated: a) On and after January 1, 2016. b) Using biomass wood wastes and residues, or geothermal resources, and is sold to a load-serving entity. AB 590 (Dahle) Page 3 of ? c) At a facility with generation capacity of over three megawatts (MW). d) In state and sold to customers in state. 3) Requires CEC, in prioritizing projects eligible for grants, to maximize the reduction of GHG emissions achieved for each dollar awarded. 4) Requires CEC, in consultation with ARB, to ensure that projects receiving funding achieve net GHG emission reductions. 5) Requires facilities seeking funding to demonstrate to CEC that the facility is a solid-fuel biomass facility and is RPS certified and requires the applicant to submit monthly invoices to CEC to document eligible generation. 6) Requires CEC to review the submitted invoices and make monthly incentive payments based on eligible generation and incentive rate. Background 1) Cap and trade auction revenue. ARB has conducted 11 cap-and-trade auctions. The first 10 have generated almost $1.6 billion in proceeds to the state. Several bills in 2012, and one in 2014, provided legislative direction for the expenditure of auction proceeds including: SB 535 (de Leon, Chapter 830, Statutes of 2012) requires that 25% of auction revenue be used to benefit disadvantaged communities and requires that 10% of auction revenue be invested in disadvantaged communities. AB 1532 (J. Perez, Chapter 807, Statutes of 2012) directs the Department of Finance to develop and periodically update a three-year investment plan that identifies feasible and cost-effective GHG emission reduction investments to be funded with cap-and-trade auction revenues. AB 1532 specifies that GGRF moneys may AB 590 (Dahle) Page 4 of ? be allocated to reduce GHG emissions through investments including, but not limited to, energy efficiency, and clean and renewable energy generation. SB 1018 (Budget and Fiscal Review Committee, Chapter 39, Statutes of 2012) created the GGRF, into which all auction revenue is to be deposited. The legislation requires that before departments can spend moneys from the GGRF, they must prepare a record specifying, among other things, how the expenditures will be used, and how the expenditures will further the purposes of AB 32. SB 862 (Budget and Fiscal Review Committee, Chapter 36, Statutes of 2014) requires the ARB to develop guidelines on maximizing benefits for agencies administering GGRF funds and guidance for administering agencies on GHG emission reduction reporting and quantification methods. Legal consideration of cap-and-trade auction revenues. The 2012-13 budget analysis of cap-and-trade auction revenue by the Legislative Analyst's Office noted that, based on an opinion from the Office of Legislative Counsel, the auction revenues should be considered mitigation fee revenues, and their use requires that a clear nexus exist between an activity for which a mitigation fee is used and the adverse effects related to the activity on which that fee is levied. Therefore, in order for their use to be valid as mitigation fees, revenues from the cap-and-trade auction must be used to mitigate GHG emissions or the harms caused by GHG emissions. In 2012, the California Chamber of Commerce filed a lawsuit against the ARB claiming that cap-and-trade auction revenues constitute illegal tax revenue. In November 2013, the superior court ruling declined to hold the auction a tax, concluding that it's more akin to a regulatory fee. The plaintiffs filed an appeal with the 3rd District Court of Appeal in Sacramento in February of last year. AB 32 auction revenue investment plan. The first three-year investment plan for cap-and-trade auction proceeds, submitted by Department of Finance, in consultation with ARB and other state agencies in May of 2013, identified sustainable AB 590 (Dahle) Page 5 of ? communities and clean transportation, energy efficiency and clean energy, and natural resources and waste diversion as the three sectors that provide the best opportunities, in that order, for achieving the legislative goals and supporting the purposes of AB 32. Budget allocations. The 2014-15 Budget allocates $832 million in GGRF revenues to a variety of transportation, energy, and resources programs aimed at reducing GHG emissions. Various agencies are in the process of implementing this funding. SB 862 (Budget and Fiscal Review Committee), the 2014 budget trailer bill, established a long-term cap-and-trade expenditure plan by continuously appropriating portions of the funds for designated programs or purposes. The legislation appropriates 25% for the state's high-speed rail project, 20% for affordable housing and sustainable communities grants, 10% to the Transit and Intercity Rail Capital Program, and 5% for low-carbon transit operations. The remaining 40% is available for annual appropriation by the Legislature. 1) Biomass and energy generation. There are various ways in which biomass, or organic material, can be converted into usable forms of energy including heat, steam, electricity, natural gas, and liquid fuels. For example, the decomposition of food wastes in anaerobic environments generates renewable gas, or biomethane, and other feedstocks, such as tallow, that can be processed to produce renewable diesel fuel. Solid biomass can be converted to electricity through non-combustion processes, termed "gassification" or "pyrolosis" which decompose the material at very high heat in low-oxygen atmospheres. There are relatively few of these types of conversion facilities in California, and most are small scale research or demonstration units that generate or plan to generate anywhere from a fraction of a megawatt to several megawatts using biomass. The oldest and simplest known method of creating energy from biomass, however, is the combustion of solid organic feedstock, such as wood and agricultural wastes, to generate electricity. Biomass electrical generation in California. According to the bill's sponsor, California Biomass Energy Alliance (CBEA), AB 590 (Dahle) Page 6 of ? there are 25 solid-fuel biomass electric generating facilities in California, distributed across 18 counties. CBEA also states that the California biomass industry uses approximately 8 million tons of the state's solid wastes and residues annually, and produces around 565 MW of electricity. Biomass and RPS. Current law identifies biomass as a renewable resource, which can be used by electrical generation facilities to generate electricity that qualifies as RPS-eligible, following CEC certification. This electricity can then be purchased by utilities to meet the RPS requirement that 33% of their energy sales come from renewable energy by 2020. The California Energy Commission defines biomass as any organic material not derived from fossil fuels, including agricultural crops, agricultural wastes and residues, waste pallets, crates, dunnage, manufacturing, and construction wood wastes, landscape and right-of-way tree trimmings, mill residues that result from milling lumber, rangeland maintenance residues, sludge derived from organic matter, and wood and wood waste from timbering operations. Biomass conversion and GHGs. Although biofuels are carbon-based fuels, the carbon in biofuels is already part of the active global carbon cycle in which carbon exchanges rapidly between the atmosphere and plant matter. This is in contrast to fossil fuels, that, when extracted and burned, remove carbon from permanent geologic stores and add it as net new carbon to the atmosphere. For this reason, biofuels combusted for electricity are broadly considered carbon neutral. Additionally, like all renewable energy generation, bioenergy production avoids the production of an equivalent amount of energy from fossil fuels. Alternative fates. In assessing other GHG emission reduction benefits of using biomass for energy production, alternative fates of that biomass, such as open burning, landfilling, accumulation, mulching, and composting, must also be considered. The alternative fates of biomass residue can result in higher emissions of more potent GHGs emitted, in addition to toxic and criteria air pollutants. Specifically, open burning of AB 590 (Dahle) Page 7 of ? biomass leads to significantly higher release of methane and black carbon due to the inefficient combustion; anaerobic decomposition of biomass in landfills results in methane; and accumulation of forest residues can provide fuel for severe wildfires, destroying huge swaths of forests and eliminating their GHG sequestration potential. For composting, although methane emissions can be largely avoided with well aerated operations, new research suggests that the amount of GHGs and types of other gasses produced appears to be highly variable, and is influenced by feedstocks, management practices, and climate. However, the use of compost can potentially provide net GHG emission reduction benefits. Composting transforms organic materials into a nutrient-rich soil amendment capable of improving depleted or disturbed soil environments, reducing the need for external fertilizers, thereby reducing GHGs from the use and production of those fertilizers. Additionally, compost application also improves water retention in soils, reducing water demand in agricultural applications, reducing energy use associated with transporting and distributing water. Recent studies have also shown that the application of compost can improve sequestration of atmospheric carbon in soils. Not all biomass, though, can be composted. For instance, whereas some agricultural wastes may decompose efficiently through a composting operation, wood wastes are not readily compostable. 2) Composting and mulching biomass. The controlled aerobic decomposition of organic material such as leaves, twigs, grass clippings, and food scraps results in compost, which can be used a nutrient rich soil amendment. Mulch is the soil covering used to control weeds or erosion, retain moisture in soil, and insulate soil from cold weather. Organic materials commonly used for mulch include wood chips, ground up landscape trimmings, shredded bark, coarse compost material, straw, and shredded paper. According to the 2010 CalRecycle survey of composting and mulch infrastructure in the state, composters and processors receive a wide array of feedstocks in California, and process an estimated total of over 9 million tons of organic material per year. Specifically, the survey reported that 72% of all respondents process some AB 590 (Dahle) Page 8 of ? quantity of green material and another 52% of all respondents process wood waste (which technically, as defined by CalRecycle regulations, is a subset of green material). However, some of this green material ends up in landfills. In 2003, approximately 2.1 million tons of the total tons processed were comprised of green material used as landfill alternative daily cover. 3) MSW thermal conversion. Municipal solid waste (MSW), according to CalRecycle, is composed of primarily food and greenwaste (e.g., lumber, leaves, etc.) at about 47%, with the next highest contributors being paper, plastic and metal waste comprising 17.3%, 9.6%, and 4.6%, respectively. There are currently three commercial facilities in the state that use combustion technology to combust unprocessed or minimally processed MSW. Collectively, they have the capacity to process 2,500 tons per day of MSW and produce about 68 MW of electrical power. Only one of the three existing power plants using MSW feedstock, Covanta Stanislaus, is certified as an RPS-eligible electrical generating facility. 4) Geothermal energy. Due to its location on the Pacific's "ring of fire" and because of tectonic plate conjunctions, California contains the largest amount of geothermal electric generation capacity in the United States. According to CEC, in 2014, geothermal energy in California produced 12,183 gigawatt-hours (GWh) of electricity. Combined with another 700 GWh of imported geothermal power, geothermal energy produced over 6.18% of the state's total system power. There are a total of 43 operating geothermal power plants in California with an installed capacity of 2,689 MW. The largest concentration of geothermal plants is located north of San Francisco in the Geysers Geothermal Resource Area in Lake and Sonoma Counties. According to the CEC, "geothermal energy is a significant source of renewable energy in California. The [CEC] promotes development of geothermal energy resources and technologies through research, development and demonstration partnerships and consultant contracts, as well as through financial assistance to eligible applicants via competitive project solicitations. Funding is provided through the Energy Commission's Geothermal Grant and Loan Program and the Public AB 590 (Dahle) Page 9 of ? Interest Energy Research Program." 5) Geothermal amendments taken in Senate Energy Committee. Amendments taken in the Senate Energy, Utilities and Communications Committee add geothermal energy facilities as eligible facilities to receive the incentive payments established through this bill, if the facilities meet specified requirements. According to the staff analysis for that committee in outlining the rationale and proposed amendment, "The author and sponsor want to subsidize the operation of biomass facilities in danger of closing in order to enable the achievement of environmental and economic benefits, as described above. However, biomass facilities are not the only type of in-state renewable energy facilities in danger of closing and with the potential to provide broad environmental and economic benefits. Therefore, the author and committee may wish to consider broadening the scope of the program created by this bill to make eligible for funding other types of existing renewable energy resources that have the potential to provide environmental and economic benefits in addition to net GHG emissions reductions." Comments 1) Purpose of Bill. According to the author, "Wildfire suppression costs are an increasing drain on the state budget. In 2014-15, CalFire burned through its $209 million wildfire budget by the end of the September - just three months into the fiscal year. In the summer of 2014, federal fire-fighting costs were $175 million in Siskiyou County alone. The costs of suppressing fires far exceed what we pay for prevention and fuel reduction. CalFire's statewide budget for fuel reduction projects under its existing grant program is roughly $30 million. "California is in danger of losing the one asset it has to divert forest fuel reduction residues and other wood waste materials today. In the last 12 months alone California has closed five biomass facilities due to expiring contracts and poor economics. That's a loss of 108 MWs of baseload renewable power and hundreds of jobs, both at the plants and in the fuel supply infrastructure. California's RPS program is failing to provide any incentive to procure biomass power for a more balanced portfolio of renewables. Despite the call AB 590 (Dahle) Page 10 of ? for environmental and economic benefit considerations in the RPS program, the only growth that is occurring in the renewable industry is coming from solar and wind. By 2020, when the state is mandated to procure 33 percent of its electricity supply from renewables, intermittents could account for some three-quarters of total renewables while half of the biomass plants in the state will be closed. "Without these biomass resources, the health, environmental and economic well-being of these regions which rely on them are damaged. Cost sharing strategies are essential to resolving this." 2) Alternatives to biomass combustion. The sponsor of the bill argues that compared with open burning, decomposing biomass in landfills, and accumulated forest residue, biomass combustion for electrical generation provides GHG emissions reductions, and a whole host of environmental and economic benefits. The question then arises: Is the only other option for managing forest and agriculture biomass waste to avoid those negative environmental and public health impacts to use it as feedstock in a solid biomass power plant? In fact, certain biomass wastes can also be mulched and used for ground cover, and composted to produce healthy soils, with numerous other cobenefits. If mulching or composting is considered as the alternative fate for the material, it is not as clear that biomass combustion to produce electricity generation is environmentally preferred. However, as previously noted, some biomass feedstocks, such as wood wastes, are not readily composted, and for those wastes, composting may not be a feasible alternative fate. In contrast, agricultural wastes, currently used as feedstock for a dozen or so biomass powerplants in the central valley, can be composted. However, in many areas of the central valley, composting is not a viable option due to the lack of sufficient composting infrastructure. With 2014-15 GGRF funds, CalRecycle recently awarded about $5.5 million from the GGRF for two composting operations in the San Joaquin and South Coast air districts. AB 590 (Dahle) Page 11 of ? 3) Still emits criteria air pollutants. Of the 25 solid-biomass powerplants, 13 are located in the central valley and primarily use agricultural wastes as their biomass feedstock. The Central Valley has some of the worse air pollution in the country and is an extreme (highest designation) nonattainment area for the federal ozone standard. Ozone is regulated at the federal and state level because it is a primary contributor to smog formation and has a number of negative health effects including irritated respiratory system, reduced lung function, aggravated asthma and inflammation and damage of the lining of the lung. Active children are the group at highest risk from ozone exposure. NOx and volatile organic compounds (VOCs) react in sunlight to form ozone and are regulated by the local air district in order to meet the federal and state ozone standard. Because biomass powerplants are all permitted through a local air district, and are required to have emissions control equipment to reduce emissions of NOx, VOCs and other air pollutants, based on local air district requirements, there are substantially fewer emissions when biomass is used as a feedstock for electricity generation, than when that same biomass is burned in the open. However, as discussed above, burning the biomass or leaving it to accumulate are not the only options for biomass disposal. Certain biomass feedstocks can be processed through chipping, mulching, and composting, which may provide significant air quality benefits, especially in regard to the emission of ozone precursors and other criteria air pollutants. However, as previously noted, some biomass feedstocks are not well suited for these alternative management options. In other cases, the composting facilities or mulching operations may not be available or sufficient to take in the quantity of biomass waste generated in an area. 4) A low bar. AB 590 authorizes every medium to large RPS-certified biomass plant operating and selling electricity in California to receive incentive funding from the GGRF. Recent amendments to AB 590 require the CEC to prioritize funding based on GHG emissions reductions, as those can vary significantly depending on the feedstock, transportation, facility and other factors. However, nothing in the bill requires facilities to reduce criteria air emissions, or operate with some threshold efficiency. Under AB 590, all of AB 590 (Dahle) Page 12 of ? these RPS-certified facilities would receive an incentive no matter the inefficiencies of the plant, how old, or polluting the technology, or how long it has been since the facility invested in upgraded emissions control technology. 5) Additional GHG emissions reductions? Under AB 590, biomass power plants and geothermal plants qualify for a subsidy funded through GGRF if they meet several specified requirements. If those powerplants are already in operation, ostensibly already providing GHG and other benefits over certain alternative fates of the biomass, those GGRF incentive payments would not necessarily be going toward any additional GHG emissions reductions. The author notes that GHG emissions reductions from the biomass powerplant component of the bill are achieved primarily through avoided shutdowns of plants, or idled plants that are put back on line, since this avoids alternative fates of the biomass material that could emit substantially more GHG and criteria air emissions. However, how does the bill ensure that moneys from the GGRF for this program only go toward achieving GHG emissions reductions that wouldn't have occurred on the natural? 6) Displacing fossil fuels and what else? All renewable energy potentially displaces energy produced from fossil fuels. However, the proponents argue that, for biomass powerplants, there are additional and significant reductions of GHG emissions, and criteria and toxic air emissions from biomass powerplants when compared to the alternative fates of that material (such as decomposing to methane, allowing it to accumulate as fuel for large-scale wildfires, or open burning of the material). The author and proponents also note that many biomass powerplants are in danger of closing and that these alternative fates of biomass will occur, and result in significant emissions increases, unless their industry is provided incentive payments to support their operations in the near term. According to the author and proponents, this provides ample justification for the use of GGRF moneys. Is this also the case for geothermal resources? Are there any GHG emission reduction benefits from geothermal resources, other than potentially displacing some quantity of fossil fuel-based energy, which provide a similar rationale or justification of GGRF subsidies? AB 590 (Dahle) Page 13 of ? 7) Could be many reasons for a shutdown or an idled plant. According to the sponsor, GHG emissions reductions would be primarily achieved through this program through the avoidance of biomass plant shutdowns, and revitalizing idle biomass power plants. However, there is no recognition in the bill of the variety of reasons plants may need to shut down, or why they remain idle. This could be due to a whole host of factors, many of which that may not necessarily warrant state subsidies to keep the plant in operation, or subsidize the start up and running of the plant. 8) Treated wood waste and biomass? Treated wood contains hazardous chemicals that pose a risk to human health and the environment. Arsenic, chromium, copper, creosote, chromated copper arsenate (CCA) and pentachlorophenol are among the chemicals used to preserved wood and are known to be toxic or carcinogenic. Treated wood is commonly used to build telephone poles, road signs and marine pilings as well as decks, play structures and raised garden beds. Insects and mold can damage wood over time. To prevent that damage, wood is often treated with these pesticides and preservatives. Treated wood waste (TWW) has its own statute directing the Department of Toxic Substances Control to develop regulations managing this waste stream. However, concern has been raised that these regulations rely almost exclusively on self-enforcement on the part of the generator, and therefore do not ensure adequate tracking of the waste, or ensure that the waste generators or hauler are complying with proper handling requirements. According to DTSC, the agricultural and construction sectors are among the largest generators of TWW. Additionally, the author notes that biomass power plants process roughly 3.7 million tons of urban wood wastes each year. Due to lax regulations regarding the tracking of TWW, and the fact that in many cases it is not possible to know by examining the wood waste whether it is treated or not, there are questions as to whether TWW could be ending up as solid-biomass powerplant feedstock. 9) Not just biomass conversion, MSW may count as well. AB 590 would establish incentive payments for RPS-eligible biomass powerplants. RPS-eligible biomass powerplant facilities are limited to CEC approved biomass feedstocks, which is broadly AB 590 (Dahle) Page 14 of ? defined as organic matter not derived from fossil fuels. However, one powerplant, Covanta Stanislaus, was grandfathered into the RPS program, and in an RPS-eligible facility, despite the fact that its feedstock is municipal solid waste (some significant fraction of which is biomass). Based on the language of the bill, Covanta Stanislaus may also eligible to receive GGRF subsidies under AB 590. 10)To what end? The author states the subsidies under AB 590 are needed to protect current biomass resources to ensure the health, environmental, and economic well-being of these regions which rely on them are not damaged. However, subsidies from the GGRF will not be available in perpetuity. What is being done to ensure that the biomass industry will be competitive and self-sustaining in the future? When will subsidies from the GGRF no longer be needed? 11)Expanded to geothermal powerplants. Recent amendments have expanded the bill beyond biomass powerplants to geothermal resources as well. As noted earlier, there are 43 operating geothermal power plants in California. This addition significantly expands the bill, in terms of potential cost pressures on the GGRF. 12)Piece by piece. GGRF investments must facilitate the achievement of GHG emissions reductions. However, after that requirement is fulfilled, there are a number of other policy goals that should be considered, including benefits to environmental quality, resource protection, public health and the economy, as well as benefits to disadvantaged communities. And although the fund is growing, it is still a limited source of revenue. In order to create an optimized investment strategy from GGRF moneys, proposals should not be considered in isolation, but be assessed in aggregate to determine what suite of measures best meets the requirements of the fund, uses resources most efficiently, and maximizes policy objectives. As budget discussions on a cap-and-trade investment strategy have been pushed to later this session, an opportunity exists to have a comprehensive discussion on the universe of GGRF proposals currently in the Legislature, during budget negotiations this summer. If the Legislature feels that the program established through AB 590 is an appropriate AB 590 (Dahle) Page 15 of ? expenditure of GGRF moneys, then this measure should also be considered through the budget process for cap-and-trade expenditures, along with all other measures proposing to expend, or authorize for expenditure, GGRF moneys. DOUBLE REFERRAL: This measure was heard in Senate Energy, Utilities and Communications Committee on June 30, 2015, and passed out of committee with a vote of 10-0. SOURCE: California Biomass Energy Alliance SUPPORT: (As listed in the Senate Energy, Utilities and Communications analysis from 6/30/2015) California Biomass Energy Alliance (source) ALW Enterprises, Inc. Agra Marketing Almond Hullers and Processors Association Ampersand Chowchilla Biomass Associated Builders and Contractors of California Associated California Loggers Basic Logging Beneficial Ag Services Brahma Group, Inc. Burney Forest Products C & S Waste Solutions of Lassen County CR&R Incorporated CT Bioenergy Consulting, LLC Cal Ag Recovery California Chapters of the Solid Waste Association of North America California Farm Bureau Federation California Forestry Association California Grain and Feed Association California Licensed Foresters Association California Pear Growers Association California Licensed Foresters Association California State Association of Counties AB 590 (Dahle) Page 16 of ? Cascade Resource Consultants Central Coast Forest Association City of Bakersfield Mayor, Harvey L. Hall Clean Harbors Environmental Service, Inc. County of Del Norte County of Humboldt County of Kern County of Lassen County of Riverside Supervisor of the 4th District, John J. Benoit County of Sierra Covanta Delano, Inc. DPS Inc. Del Logging, Inc. Del Monte Foods, Inc. EWP Renewable Corporation Ecology Auto Parts, Inc. Fondest Farms Trucking, LLC G & F Agricultural Service, Inc. Gardiner Farms, LLC Galton Solid Waste Management, Inc. Greenleaf Power, LLC Greenwaste Recovery, Inc. Hedrick Logging Humboldt Redwood Company IHI Power Services Corporation Independent Energy Producers Association J.T. Thorpe & Son, Inc. Karuk Tribe Kochergen Farms Composting, Inc. Lake County Waste Solutions Lassen County Fire Safe Council Lassen Forest Products, Inc. Los Angeles County Solid Waste Management Committee/Integrated Waste Management Task Force Merced Power, LLC Nortech Waste LLC North of the River chamber of Commerce Old Durham Wood, Inc. Pacific Gas and Electric Company Pacific Recycling Solutions Pacific-Ultrapower Chinese Station Propel AG Services, LLC AB 590 (Dahle) Page 17 of ? Quincy Library Group Rio Bravo Fresno Rosedale Ranch Rural County Representatives of California San Joaquin Valley Air Pollution Control District Selma Disposal & Recycling Shadd Trucking Sierra Land & Farming, LLC Sierra Pacific Industries Sonoma Compost Sustainable Forest Action Coalition Tri Co Welding Supplies, Inc. Trinity Construction Company Tuolumne County Board of Supervisors Natural Resources Committee Tuolumne County Economic Development Authority Ukiah Waste Solutions Vision Recycling Wadham Energy LP Wasco Real Properties I, LLC Wegis & Young Western Ag Chipping, LLC Wheelabrator Shasta Wilson Ag Z-Best Composting Facility Several Individuals OPPOSITION: Association of Irritated Residents Biofuelwatch California Communities Against Toxics California Environmental Justice Alliance Center for Biological Diversity Center on Race, Poverty & the Environment Clean Water Action Sierra Club California West Berkeley Alliance for Clean Air and Safe Jobs ARGUMENTS IN SUPPORT: Proponents contend the state needs to subsidize operation of the state's biomass facilities to ensure their continued operation so that the state may continue to realize numerous benefits, including reduction in GHGs and criteria pollutants, production of renewable energy, diversion from landfill, and economic activity, especially in some of the AB 590 (Dahle) Page 18 of ? most economically depressed areas of the state. ARGUMENTS IN OPPOSITION: Opponents state that AB 590 will hurt disadvantaged communities already overly burdened by pollution; it will further degrade air quality in the Central Valley and around the state from emissions of high levels of criteria air pollutants due to biomass incineration; and it will increase, rather than decrease GHG emissions, thereby violating requirements for the use of cap-and-trade moneys. -- END --