BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 997


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          Date of Hearing:  April 13, 2015 


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          AB 997  
          (Travis Allen) - As Introduced February 26, 2015


          SUBJECT:  Recycling:  plastic material


          SUMMARY:  Revises the state's 75% recycling goal to include  
          waste "used for power generation in dedicated anaerobic  
          digesters as well as in modern landfills capturing methane gas"  
          as recycling.  Requires the Department of Resources Recycling  
          and Recovery (CalRecycle) to take specified actions to encourage  
          specified waste to energy (WTE) and waste to fuel (WTF)  
          technologies.  


          EXISTING LAW:  


          1)Establishes the California Integrated Waste Management Act of  
            1989, which: 

             a)   Codifies the state's solid waste hierarchy, which  
               requires that waste management practices be promoted in the  
               following order: 

               i)     Source reduction; 

               ii)    Recycling and composting; and, 









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               iii)   Environmentally safe transformation (i.e., WTE) and  
                 environmentally safe land disposal, at the discretion of  
                 the city or county.  

             b)   Specifies a state policy goal that 75% of solid waste  
               generated be diverted from landfill disposal by 2020  
               through source reduction, recycling, or composting. 

             c)   Requires each local jurisdiction to divert 50% of solid  
               waste from landfill disposal.

             d)   Establishes regulatory standards for facilities that  
               convert "engineered municipal solid waste" for energy  
               generation.  

             e)   Defines "solid waste" as all putrescible and  
               nonputrescible solid, semisolid, and liquid wastes,  
               including garbage, trash, refuse, paper, rubbish, ashes,  
               industrial wastes, demolition and construction wastes,  
               abandoned vehicles and vehicle parts, discarded home and  
               industrial appliances, non-hazardous sewage, manure,  
               vegetable and animal solid and semisolid wastes, and other  
               discarded solid and semisolid wastes.  Specifies that solid  
               waste does not include hazardous waste, radioactive waste,  
               and medical waste. 

          2)Requires CalRecycle to adopt regulations, as specified, for  
            permitting WTE and WTF facilities that process engineered  
            municipal solid waste (EMSW).  Requires that the EMSW replaces  
            or supplants the use of fossil fuels and contains less than  
            25% moisture and noncombustible waste.  

          3)Establishes various plastic recycling requirements and  
            incentive programs, including: 

             a)   Requires plastic trash bags sold in California to meet  
               specified recycled content requirements and report to  
               CalRecycle.  









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             b)   Requires rigid plastic packaging containers, as defined,  
               to contain at least 25% postconsumer recycled content,  
               reach specified source reduction requirements, or be  
               reusable.  

             c)   Establishes the at-store recycling program for plastic  
               bags, which requires specified stores to collect and  
               recycle plastic bags.  

             d)   Specifies that CalRecycle may expend up to a specified  
               amount, currently $10 million, annually for market  
               development payments for empty plastic beverage containers  
               to processors (recyclers) and recycled-content product  
               manufacturers until January 1, 2017. 

          THIS BILL:  


          1)Revises the state policy goal that 75% of solid waste  
            generated be source reduced, recycled, or composted by the  
            year 2020 to allow solid waste that is "used for power  
            generation in dedicated anaerobic digesters as well as in  
            modern landfills capturing methane gas"  to count as  
            recycling.

          2)Requires CalRecycle to: 

             a)   Investigate emerging technologies that convert used  
               plastic products into "new plastic feedstock and monomers."  
                

             b)   By January 1, 2017, adopt regulations and protocols that  
               encourage WTE and WTF pyrolysis projects that "address  
               various grades of plastic products that are in landfills."   


             c)   By January 1, 2017, and annually until January 1, 2020,  
               examine and report to the Legislature on possible  
               incentives for businesses and organizations that practice  








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               "state-of-the-art, cost-effective material separation and  
               recovery techniques, as well as those organizations that  
               are now commercially developing the most cost-effective  
               conversion of mixed plastic, textile, and fiber wastes to  
               fuels."  

          FISCAL EFFECT:  Unknown


          COMMENTS:  


          1)This bill.  According to the author:  

               Plastics exist in far more grades, types, and sub-grades  
               than anyone realizes, and with very few exceptions, for  
               recycled plastics to be used as cost-effective drop-ins for  
               virgin materials requires complete separation from other  
               plastics, other grades of plastics, other product  
               components, contaminants and additives, etc.  Separation  
               into the discrete, clean end-useable grades as described  
               above is near-impossible.  [Emphasis in original.]   

               [This bill is intended to] refine and implement those  
               technologies that can derive the maximum value in CA at  
               minimum cost out of the majority of mixed plastics without  
               requiring separation.   

           2)California's 75% goal.  AB 341 (Chesbro), Chapter 476,  
            Statutes of 2011 established a state policy goal that 75% of  
            California's solid waste be diverted from landfill disposal  
            through source reduction, recycling, or composting by 2020.   
            (CalRecycle regulations include anaerobic digestion as  
            composting.)  To assist the state in reaching that goal and  
            achieving the state's greenhouse gas (GHG) reduction goal to  
            reach 1990 levels by 2020 established by AB 32 (Nunez),  
            Chapter 488, Statutes of 2006, AB 341 included the requirement  
            that commercial generators of solid waste arrange for  
            recycling services.  California is currently diverting  








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            approximately 65% of solid waste from landfills.   

            AB 341 requires CalRecycle to adopt policies and incentives to  
            significantly increase recycling statewide.  Since AB 341 was  
            adopted, CalRecycle launched The 75 Percent Initiative and  
            adopted a statewide strategy to reach the state's recycling  
            goal.  Currently, CalRecycle has identified six areas of focus  
            for the initiative:  1) Moving organics out of landfills; 2)  
            Continuing to reform the beverage container recycling program;  
            3) Expanding the recycling and recycled-content manufacturing  
            infrastructure through streamlined permitting, compliance  
            assistance, and financing incentives; 4) Exploring new models  
            of state and local funding for materials management (for  
            recycling); 5) Promoting state procurement of recycled-content  
            products; and, 6) Promoting expanded producer responsibility.   


          3)The other 25%.   Dwindling landfill capacity and the  
            infeasibility of siting and permitting new disposal sites have  
            created demand for technologies that generate energy and fuels  
            from municipal solid waste.  Historically, "WTE" has been used  
            to describe traditional incineration.  However, newer  
            technologies, broadly referred to as "conversion  
            technologies," process solid waste through chemical,  
            biological, or other non-combustion thermal technologies to  
            produce electricity or renewable fuels. These technologies  
            create energy using three main processes:  thermochemical,  
            biochemical, and physicochemical.  

            Thermochemical conversion processes include high-heat  
            technologies like gasification and pyrolysis.  Thermochemical  
            conversion is characterized by higher temperatures and faster  
            conversion rates.  It is best suited for lower moisture  
            feedstocks.  Thermochemical routes can convert the entire  
            organic portion of suitable feedstocks.  The inorganic  
            fraction (ash) does not contribute to the energy products and  
            may contribute to fouling of high temperature equipment and  
            increased nutrient loading in wastewater treatment and  
            disposal facilities.  Generally the ash must be disposed.   








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            Inorganic constituents may also accelerate some of the  
            conversion reactions.  Under current law, pyrolysis is  
            considered transformation, while gasification is explicitly  
            excluded from the definition of transformation.  

            Biochemical conversion processes include aerobic conversion  
            (i.e., composting), anaerobic digestion, which is currently  
            regulated as composting, and anaerobic fermentation (for  
            example, the conversion of sugars from cellulose to ethanol).   
            Biochemical conversion processes use lower temperatures and  
            lower reaction rates.  Higher moisture feedstocks are  
            generally good candidates for biochemical 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 feedstocks exits the process as a  
            residue that may or may not have market value as a soil  
            amendment.  The residue can be composted.

            Physiochemical conversion involves the physical and chemical  
            synthesis of products from feedstocks (for example, biodiesel  
            from waste fats, oils, and grease) and is primarily associated  
            with the transformation of fresh or used vegetable oils,  
            animal fats, greases, tallow, and other suitable feedstocks  
            into liquid fuels or biodiesel.

          4)Concerns with conversion.  While low-temperature biochemical  
            conversion (i.e., anaerobic digestion and composting of  
            organic materials) have been widely accepted in California and  
            are already considered recycling, higher heat conversion  
            technologies have not been widely accepted as environmentally  
            safe alternatives to landfilling.  There have been some pilot  
            and bench scale projects in California and in other parts of  
            the United States, but significant questions remain about the  
            costs, track records, and relevant emissions data from  
            facilities that use feedstocks comparable to California.  

            In response to increasing interest in pursuing WTE options for  
            the remaining 25% of the waste stream and materials that  








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            cannot be recycled, AB 1126 (Gordon), Chapter 411, Statutes of  
            2013 established permitting requirements for conversion  
            facilities that process EMSW, which may include plastic.  The  
            CalRecycle process is being developed to ensure that  
            recyclable materials are removed from mixed solid waste prior  
            to being converted for energy or fuels. 

            This bill would require CalRecycle to adopt "regulations and  
            protocols that encourage WTE and WTF pyrolysis projects that  
            address the various grades of plastic products that are in  
            landfills."  It is not clear why the bill limits the scope of  
            WTF projects to pyrolysis.  This provision is inconsistent  
            with the state's goal of limiting WTE and WTF projects to  
            those that process solid waste from which recyclables have  
            been removed.  

          5)Managing plastic.  Plastic comprises 9.6% of the total  
            disposed waste stream in California.  For comparison, organic  
            waste comprises 32.4%, "inert and other" comprises 29.1%, and  
            paper comprises 17.3%.  

            According to the author, "for the majority of plastics,  
            cost-effective recycling is difficult if not impossible."  In  
            2011, the American Chemistry Council released the 2009  
            National Report on Postconsumer Non-Bottle Rigid Plastic  
            Recycling, which found that between 2007 and 2009, domestic  
            recycling of plastic increased 47%, from 121 million pounds to  
            over 243 million pounds.  In 2008 and 2009, North America  
            began recycling more plastic than it exported.  According to  
            the report, "non-bottle rigid plastic is sold in a variety of  
            single-resin and mixed-resin categories. The value placed on  
            most mixed-resin bales is dependent on the likely percentage  
            of polyolefin plastics in the bale:  higher percentages of  
            polyolefin (polyethylene and polypropylene) generally are in  
            higher demand."  Recycling plastic is feasible and does occur  
            on a large scale throughout the United States.  

          6)Previous legislation.  This bill is similar to AB 2633  
            (Allen), introduced last year; however, AB 2633 did not  








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            include the requirement that waste disposed of in a solid  
            waste landfill be counted as recycling if the landfill has a  
            methane capture system.  AB 2633 failed passage in this  
            committee on a vote of 3-5.  

          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file




          Opposition


          Californians Against Waste 


          Clean Water Action 


          Coalition for Clean Air 


          Global Alliance for Incinerator Alternatives 


          Sierra Club California 




          Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916)  








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          319-2092