BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 2511|
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                                   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  








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             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  







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             $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  







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          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








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          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,  







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            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


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