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 ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 28, 2016 |Policy Vote: AGRI. 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- 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 AB 2511 (Levine) Page 1 of ? 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 AB 2511 (Levine) Page 2 of ? 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 AB 2511 (Levine) Page 3 of ? products (including biochar as a bulk soil amendment), and should not face additional costs. -- END --