BILL ANALYSIS                                                                                                                                                                                                    Ó





          SENATE COMMITTEE ON AGRICULTURE
                          Senator Cathleen Galgiani, Chair
                                2015 - 2016  Regular 

          Bill No:           AB 2511         Hearing Date:  6/21/16
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          |Author:    |Levine                                               |
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          |Version:   |3/28/16                                              |
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          |Urgency:   |No                    |Fiscal:    |Yes              |
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          |Consultant:|Anne Megaro                                          |
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             Subject:  Fertilizing materials:  auxiliary soil and plant  
                                substances:  biochar


           SUMMARY  :
          This bill would clarify that "biochar" is a soil amendment that  
          is included in the definition of "auxiliary soil and plant  
          substance" and, therefore, subject to licensing and labeling  
          laws and would define "biochar" to mean materials derived from  
          thermochemical conversion of biomass in an oxygen-limited  
          environment containing at least 60 percent carbon.


           BACKGROUND AND EXISTING  
          LAW  :
          The Fertilizing Materials Inspection Program within CDFA was  
          created to ensure that fertilizer materials are safe and meet  
          the quality and quantity guarantees as stated on the product's  
          label.  This program is responsible for licensing manufacturers,  
          reviewing and registering product labels, conducting  
          inspections, and providing research and education regarding the  
          safe use and handling of fertilizing materials. 

          Existing law:

             1)   Requires CDFA to enforce laws and adopt regulations  
               relating to the manufacture, labeling, and distribution of  








          AB 2511 (Levine)                                   Page 2 of ?
          
               fertilizing materials.

             2)   Defines "fertilizing material" to mean any commercial  
               fertilizer, agricultural mineral, auxiliary soil and plant  
               substance, organic input material, or packaged soil  
               amendment (but not bulk soil amendments).

             3)   Defines "packaged soil amendment" to mean any substance  
               that promotes plant growth by conditioning soils solely  
               through physical means, such as hay, straw, peat moss,  
               sand, etc.  Given this definition, biochar is considered a  
               soil amendment.

             4)   Defines "auxiliary soil and plant substance" to mean any  
               chemical or biological substances or devices applied to  
               soil, plants, or seeds for soil corrective purposes; or  
               that is intended to improve germination, growth, yield,  
               product quality, etc.; or that is intended to produce any  
               change in soil.  It does not include commercial  
               fertilizers, agricultural minerals, pesticides, soil  
               amendments, or manures.  It does include, for example,  
               bacteria, lignin, and soil binding and wetting agents.

             5)   Requires every manufacturer or distributor of  
               fertilizing materials to obtain a license from CDFA.  

             6)   Requires fertilizing material label registration for  
               each differing product, such as changes in the guaranteed  
               analysis or derivation statement.  

             7)   Exempts bulk soil amendments (110 pounds or greater)  
               from both licensing and labeling requirements, unless it is  
               an organic input material that will be used in organic crop  
               and food production.

             8)   Establishes licensing and registration fees.

             9)   Authorizes CDFA to cancel an existing registration or  
               refuse to register any fertilizer material which the  
               secretary determines to be detrimental or harmful to  
               plants, animals, public safety, or the environment or any  
               product that contains false or misleading claims.

             10)  Authorizes CDFA to collect an assessment fee not to  
               exceed $0.002 per dollar of sales of all fertilizing  
               materials.







          AB 2511 (Levine)                                   Page 3 of ?
          

             11)  Authorizes CDFA to inspect, sample, and analyze  
               fertilizing materials and conduct investigations concerning  
               the use, sale, adulteration, or misbranding of any  
               substance.


           PROPOSED  
          LAW  :

          This bill:

             1)   Clarifies that "biochar" is a soil amendment that is  
               included in the definition of "auxiliary soil and plant  
               substance."

             2)   Defines "biochar" to mean materials derived from  
               thermochemical conversion of biomass in an oxygen-limited  
               environment containing at least 60 percent carbon.


           ARGUMENTS IN SUPPORT:
           According to the author, "AB 2511 seeks to enhance the use of  
          biochar.  Biochar is a specialized form of charcoal that has  
          many agricultural and environmental benefits when it is  
          incorporated into the soil. This bill lists biochar as a  
          beneficial soil additive in the Food and Agricultural Code and  
          establishes a minimum standard to qualify as biochar.  This  
          ensures that the product meets specific quality requirements.   
          Further, AB 2511 authorizes the California Department of Food  
          and Agriculture to have oversight of this new industry.  Under  
          existing law, biochar is not regulated by the state.  Because  
          the biochar market is relatively new, lack of oversight can have  
          a chilling effect on the widespread use of the product.  The  
          regulatory authority provided in AB 2511 is needed to ensure  
          that the product develops in a fair and equitable marketplace,  
          and protects consumers as well."


           COMMENTS  :

          Need for this bill.  Biochar is growing in popularity as its  
          beneficial impact on soil is increasingly recognized.  Benefits  
          include improving soil fertility, increasing soil water  
          retention, and reducing nitrate leaching.  Currently, biochar is  
          an unregulated product and, as such, presents the potential for  







          AB 2511 (Levine)                                   Page 4 of ?
          
          inferior, mislabeled, or adulterated products to be sold in the  
          marketplace, thus jeopardizing the integrity of the biochar  
          industry.  This bill would authorize CDFA to regulate biochar as  
          a fertilizing material to ensure that biochar manufacturers are  
          licensed and products are registered, appropriately labeled, and  
          free of adulterants.  Furthermore, given the relationship  
          between biochar and enhanced soil quality, biochar could play a  
          role in the governor's proposed Healthy Soils Initiative. 

          Healthy Soils Initiative. In his 2015-16 budget proposal,  
          Governor Brown included the new "Healthy Soils Initiative" to  
          increase carbon in soil to improve soil health, agricultural  
          productivity, soil water-holding capacity, and decrease sediment  
          erosion.  Governor Brown directed CDFA to coordinate with other  
          key agencies to work on several new initiatives.  CDFA has since  
          developed five action measures: protect and restore soil carbon;  
          identify funding opportunities, including market development;  
          provide research, education and technical support; increase  
          governmental efficiencies to enhance soil health on public and  
          private lands; and ensure interagency coordination and  
          collaboration.

          The governor's 2016-17 budget proposal would appropriate $20  
          million from the Greenhouse Gas Reduction Fund to CDFA for the  
          development and administration of the new Healthy Soils Program,  
          which will be designed to reduce greenhouse gas (GHG) emissions  
          and increase carbon sequestration through better soil management  
          practices.  In collaboration with California Department of  
          Resources Recycling and Recovery, California Department of  
          Conservation, and California Air Resources Board, CDFA will  
          provide funds as an incentive to farmers to implement  
          climate-smart management practices as well as for demonstration  
          projects that have quantifiable GHG reductions.  Collaboration  
          across state agencies will provide the expertise needed to  
          quantify GHG reduction methodologies and ensure that the program  
          complements existing land conservation activities. 

          Soil amendment.  Soil amendments are products that only  
          physically affect the soil and plant growing conditions.   
          Examples include hay, straw, peat moss, and sand.  Although  
          there is no real nutritive value, these products amend the soil  
          to create better growing conditions, such as better water  
          retention or drainage.  When sold or distributed in bulk or  
          non-packaged allotments of 110 pounds or greater, soil  
          amendments are not included in the definition of a fertilizing  
          material and are, therefore, exempt from licensing and labeling  







          AB 2511 (Levine)                                   Page 5 of ?
          
          requirements.  This bill would recognize biochar as a newly  
          regulated soil amendment that must comply with licensing and  
          labeling laws and regulations while maintaining the bulk  
          exemption for all other soil amendments.


           RELATED  
          LEGISLATION  :

          AB 1811 (Dodd) of 2016.  Would authorize CDFA to develop a new  
          schedule for organic input material label registrations;  
          authorize provisional label registrations, as specified;  
          prioritize inspections for high-risk products and manufacturers;  
          and authorize CDFA to determine whether a fertilizer material is  
          mislabeled, as specified.  Currently in the Committee on  
          Agriculture.

          SB 1350 (Wolk) of 2016.  Among other provisions, would require  
          CDFA to establish and oversee a Healthy Soils Program that would  
          provide incentives to farmers whose management practices  
          contribute to healthful soils and result in net long-term  
          on-farm GHG benefits; would allocate $20 million from the  
          Greenhouse Gas Reduction Fund to CDFA to support the Healthy  
          Soils Program.  This bill was held in the Senate Appropriations  
          Committee under submission.

          AB 856 (Caballero), Chapter 257, Statutes of 2009. Establishes  
          the organic input material manufacturers' licensure program,  
          increases fees and penalties, and makes other various changes  
          regarding fertilizer materials, inspections, and labeling.


           PRIOR  
          ACTIONS  :
                         
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          |Assembly Floor:                       |80 - 0                     |
          |--------------------------------------+---------------------------|
          |Assembly Appropriations Committee:    |20 - 0                     |
          |--------------------------------------+---------------------------|
          |Assembly Agriculture Committee:       |  9 - 0                    |
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           SUPPORT  :







          AB 2511 (Levine)                                   Page 6 of ?
          
          
          California Department of Food and Agriculture (Sponsor)
          California Compost Coalition
          California Farm Bureau Federation
          Los Angeles County Solid Waste Management Committee/
               Integrated Waste Management Task Force
          Sonoma Biochar Initiative
          Sonoma County Water Agency
          Sonoma Ecology Center


           OPPOSITION  :
          
          None received

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