BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2511| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2511 Author: Levine (D) Amended: 3/28/16 in Assembly Vote: 21 SENATE AGRICULTURE COMMITTEE: 5-0, 6/21/16 AYES: Galgiani, Cannella, Berryhill, Pan, Wolk SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16 AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen ASSEMBLY FLOOR: 80-0, 5/31/16 - See last page for vote SUBJECT: Fertilizing materials: auxiliary soil and plant substances: biochar SOURCE: California Department of Food and Agriculture DIGEST: This bill clarifies 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 defines "biochar" to mean materials derived from thermochemical conversion of biomass in an oxygen-limited environment containing at least 60 percent carbon. ANALYSIS: Existing law: 1) Requires the California Department of Food and Agriculture (CDFA) to enforce laws and adopt regulations relating to the manufacture, labeling, and distribution of fertilizing AB 2511 Page 2 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 AB 2511 Page 3 $0.002 per dollar of sales of all fertilizing materials. 11)Authorizes CDFA to inspect, sample, and analyze fertilizing materials and conduct investigations concerning the use, sale, adulteration, or misbranding of any substance. 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. 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. 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 inferior, mislabeled, or adulterated products to be sold in the marketplace, thus jeopardizing the integrity of the biochar industry. This bill authorizes 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 AB 2511 Page 4 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. To date, this Budget proposal has not been approved by the Legislature. 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 requirements. This bill recognizes 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. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No AB 2511 Page 5 According to the Senate Appropriations Committee, 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 long term. SUPPORT: (Verified8/12/16) California Department of Food and Agriculture (source) 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: (Verified8/12/16) None received 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." ASSEMBLY FLOOR: 80-0, 5/31/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, AB 2511 Page 6 Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon Prepared by:Anne Megaro / AGRI. / (916) 651-1508 8/15/16 20:30:00 **** END ****