BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2511 (Levine) - Fertilizing materials:  auxiliary soil and  
          plant substances:  biochar
          
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          |Version: March 28, 2016         |Policy Vote: AGRI. 5 - 0        |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Robert Ingenito     |
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          This bill meets the criteria for referral to the Suspense File.


          


          Bill  
          Summary: AB 2511 would (1) clarify that "biochar" is a soil  
          amendment that is included in the definition of "auxiliary soil  
          and plant substance," thereby subjecting it to licensing and  
          labeling laws, and (2) define "biochar" to mean materials  
          derived from thermochemical conversion of biomass in an  
          oxygen-limited environment containing at least 60 percent  
          carbon.


          Fiscal  
          Impact: The California Department of Food and Agriculture (CDFA)  
          would incur increased annual costs of unknown magnitude, likely  
          in the low hundreds of thousands of dollars, for additional  
          inspections and reviews pursuant to this bill. In the longer  
          run, revenue generated by product registration fees, license  
          fees, and mill assessments would mitigate the impact over the  







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          long term.


          Background: 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.
          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 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.




          Proposed Law:  
          This bill would (1) clarify that "biochar" is a soil amendment  
          that is included in the definition of "auxiliary soil and plant  
          substance," and (2) define "biochar" to mean materials derived  
          from thermochemical conversion of biomass in an oxygen-limited  
          environment containing at least 60 percent carbon.


          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. This bill is  
            also up for hearing in this Committee on August 1st, 2016.


           SB 1350 (Wolk, 2016).  Among other provisions, would require  
            CDFA to establish and oversee a Healthy Soils Program that  
            would provide incentives to farmers whose management practices  








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            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. The bill was held under submission on the  
            Suspense File of this Committee. 




          



          Staff  
          Comments: Soil amendments are products that only physically  
          affect the soil and plant growing conditions. Examples include  
          hay, straw, peat moss, and sand.  Although they lack nutritive  
          value, these products amend the soil to create better growing  
          conditions, including 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 consequently are  
          exempted from licensing and labeling 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.
          CDFA cannot determine the number of biochar products that will  
          reach the market; however, the Program will incur expenses to  
          review and register the products. Additional expenses include  
          field monitoring and sampling in the marketplace. CDFA indicates  
          that laboratory costs for testing for contaminants are roughly  
          $655 per sample.  Additional expenses would be incurred staff to  
          develop biochar standards and regulations to ensure the product  
          is safe, effective, and meets the quality guarantees of the  
          manufacturer. Revenue generated by product registration fees,  
          license fees, and mill assessments should minimize the impact  
          over the long term.


          CDFA's fees for label review are $50 every two years for  
          products intended for the conventional market and $500 every two  
          years for products intended for the organic farming market.  
          Firms marketing as Organic are already required to register  








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          products (including biochar as a bulk soil amendment), and  
          should not face additional costs. 




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