BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2511


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          Date of Hearing:   April 13, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2511 (Levine) - As Amended March 28, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill: 


          1)Defines "biochar" as a material derived from thermochemical  
            conversion of biomass in an oxygen-limited environment  
            containing at least 60 percent carbon. 










                                                                    AB 2511


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          2)Adds biochar to the definition of "auxiliary and soil plant  
            substances" by including it in the list of products intended  
            to be used for influencing soils, plant growth, or crop or  
            plant quality. 


          3)Specifies that soil amendments, except biochar, are excluded  
            from the definition of auxiliary and soil plant substances.  


          FISCAL EFFECT:


          1)The California Department of Food and Agriculture (CDFA) is  
            expected to incur increased costs for the additional  
            inspections and reviews pursuant to this bill. If two  
            inspectors and two environmental scientists were needed for  
            routine sample inspections, ongoing costs would be in the  
            range of $430,000 a year (Food and Agriculture Fund). 


          2)The fiscal costs of additional inspections will be partially  
            offset by fees and assessments of biochar manufacturers. 


          COMMENTS:


          1)Purpose: According to the author, AB 2511 will help the  
            environment and the agriculture industry by encouraging the  
            biochar market to expand.  The author argues that proper  
            regulatory oversight is needed to ensure that consumers are  
            protected and that there is an equitable marketplace. 


          2)Background: Biochar is a type of charcoal created by heating  
            woody waste materials or biomass in a process called  
            pyrolysis. When combined with other materials, biochar has a  
            number of agricultural benefits, including helping with water  








                                                                    AB 2511


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            retention and promoting the growth of microbes. Biochar is  
            also thought to be environmentally beneficial by reducing  
            fertilizer runoff and leeching; and the process that creates  
            biochar leaves behind pure carbon rather than having that  
            carbon enter the atmosphere.  





          3)Cost savings through AB 1811. If enacted, AB 1811 (Dodd),  
            which passed the Assembly Agriculture Committee on March 30,  
            2016, would reduce the fiscal costs of AB 2511 because no  
            additional inspectors would be needed to inspect biochar. AB  
            1811 provides CDFA flexibility in how it inspects organic  
            input material, and CDFA staff believes they could use that  
            flexibility to assign existing inspectors for biochar  
            inspections. If AB 1811 becomes law, then CDFA would incur  
            annual costs in the range of $200,000.  



          Analysis Prepared by:Luke Reidenbach / APPR. / (916)  
          319-2081