Amended in Senate April 25, 2016

Amended in Senate April 7, 2016

Amended in Senate March 30, 2016

Senate Bill No. 1043

Introduced by Senator Allen

(Principal coauthor: Assembly Member Williams)

February 12, 2016

An act to amend Section 25420 of, and to add Section 39735 to, the Health and Safety Code, begin delete and to amend Section 40106 of the Public Resources Code, end delete relating to biogas.

LEGISLATIVE COUNSEL’S DIGEST

SB 1043, as amended, Allen. begin delete Renewable gas: biogas end delete begin insert Biogas end insert and biomethane.

(1) The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to adopt regulations to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with this program. The act requires the state board to adopt a statewide greenhouse gas emissions limit, as defined, to be achieved by 2020 equivalent to the statewide greenhouse gas emissions level in 1990. Existing law requires the state board to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, in the state.

This bill would require the state board to consider and, as appropriate, adopt policies to significantly increase the sustainable production and use of begin delete renewable gas, end delete begin insert biogas, end insert as defined, and, in so doing, would require the state board, among other things, to ensure the production and use of begin delete renewable gas end delete begin insert biogas end insert provides direct environmental benefits and identify barriers to the rapid development and use of begin delete renewable gas end delete begin insert biogas end insert and potential sources of funding. The bill would require the state board to develop and adopt a life-cycle accounting method for greenhouse begin delete gas end delete begin insert gases end insert and emissions of short-lived climate pollutants associated with biogas produced from forest biomass, as specified.

(2) Existing law requires the Office of Environmental Health Hazard Assessment, in consultation with the state board, the Department of Toxic Substances Control, the Department of Resources Recycling and Recovery, and the California Environmental Protection Agency, to compile a list of constituents of concern that could pose risks to human health and that are found in biogas, as defined, at concentrations that significantly exceed the concentrations of those constituents in natural gas. Existing law requires the office to determine the health protective levels for that list, as specified, and requires the state board to identify realistic exposure scenarios and the health risks associated with those scenarios, as specified.

Existing law requires the Public Utilities Commission to adopt, by rule or order, standards for biomethane, as defined, that specify the concentrations of constituents of concern that are reasonably necessary to protect public health and ensure pipeline integrity and safety, as specified, and requirements for monitoring, testing, reporting, and recordkeeping, as specified. Existing law requires a gas corporation to comply with those standards and requirements and requires the commission to require gas corporation tariffs to condition access to common carrier pipelines on the applicable customer meeting those standards and requirements.

This bill would revise the definitions of biogas and biomethane for these purposes.

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(3) The California Integrated Waste Management Act of 1989, which is administered by the Department of Resources Recycling and Recovery, requires each city, county, and regional agency, if any, to develop a source reduction and recycling element of an integrated waste management plan. With certain exceptions, the source reduction and recycling element of that plan is required to divert 50% of all solid waste, through source reduction, recycling, and composting activities. Existing law allows the 50% diversion requirement to include not more than 10% through transformation or “biomass conversion,” as defined, if specified conditions are met. Existing law defines “biomass conversion” for purposes of the waste management laws to mean the production of heat, fuels, or electricity by the controlled combustion of, or the use of other noncombustion thermal conversion technologies on, certain listed materials.

end delete begin delete

This bill would revise that definition to add to those listed materials byproducts or residue from composting.

end delete begin delete

Existing law specifies that “biomass conversion” does not include the controlled combustion of recyclable pulp or recyclable paper materials, or materials that contain sewage sludge, industrial sludge, medical waste, hazardous waste, or either high-level or low-level radioactive waste.

end delete begin delete

This bill would delete from that exclusion the controlled combustion of materials that contain sewage sludge.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) California has enacted numerous policies to reduce emissions
of greenhouse gases and to increase the use of renewable energy
resources and renewable fuels, including the California Global
Warming Solutions Act of 2006 (Division 25.5 (commencing with
Section 38500) of the Health and Safety Code), the California
Renewables Portfolio Standard Program (Article 16 (commencing
with Section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the
Public Utilities Code), the Low Carbon Fuel Standard regulation
(Executive Order S-01-07 (January 19, 2007), Sections 95480 to
95490, inclusive, of Title 17 of the California Code of Regulations),
an energy storage portfolio requirement (Chapter 469 of the
Statutes of 2010), emissions goals for 2030 and 2050 (Executive
Order B-30-15), and the state’s comprehensive strategy to reduce
emissions of short-lived climate pollutants (Section 39730 of the
Health and Safety Code).

(b) Natural gas, which is used for a wide variety of purposes,
including the generation of electricity, heating, cooling, begin insert and end insert
industrial, commercial, residential, and transportation begin delete fuel, end delete begin insert fuels, end insert
causes more than one-quarter of all emissions of greenhouse gases
in California. Methane emissions from a variety of sources,
including wastewater treatment facilities, landfills, dairies,
agricultural production, and oil and gas, represent up to 15 percent
of California’s total climate change emissions. Wildfires cause
two-thirds of all black carbon emissions, which accounts for
approximately 10 percent of California’s total climate change
emissions.

(c) Reducing emissions of methane, black carbon, and other
short-lived climate pollutants is the most effective way to
immediately slow global warming and reduce the impacts of
climate change. Capturing and using methane begin delete (renewable gas) end delete begin insert (the
primary chemical component of biogas) end insert can significantly reduce
emissions of greenhouse gases from fossil fuel use, organic waste,
and petroleum-based fertilizers. Increasing the production and use
of begin delete renewable gas end delete begin insert biogas end insert could reduce emissions of greenhouse
gases by tens of millions of metric tons of carbon dioxide
equivalent emissions per year.

(d)  begin delete Renewable gas end delete begin insert Biogas end insert generated from organic waste can
be used to produce the lowest carbon transportation fuel. It can
also be used to produce flexible generation renewable power,
energy storage, and a low-carbon gas supply for heating, cooling,
and other purposes.

(e) Using forest biomass collected as part of a sustainable
forestry plan can significantly reduce the risks and impacts of
catastrophic wildfires, including black carbon emissions and air
pollution, impacts on water supply and quality, impacts on utility
and other infrastructure, threats to public safety and communities,
impacts on fisheries and wildlife, and effects on precipitation.

(f) Increasing the use of begin delete renewable gas end delete begin insert biogas end insert in heavy-duty
vehicles in California can help protect disadvantaged communities
in the state by reducing toxic air contaminants and smog-forming
emissions.

(g)  begin delete Renewable gas end delete begin insert Biogas end insert can provide significant economic
benefits to California, including job creation, an instate source of
gas, increased energy security, revenue and energy for public
agencies, and revenue for dairies, farms, rural forest communities,
and other areas.

(h) Increasing the use of begin delete renewable gas end delete begin insert biogas end insert will diversify
and decarbonize California’s gas supply.

(i) Increasing the use of begin delete renewable gas end delete begin insert biogas end insert can help
California to meet the waste diversion requirements of Section
41781.3, Article 1 (commencing with Section 41780) of Chapter
6 of Part 2 of, and Chapter 12.9 (commencing with Section
42649.8) of Part 3 of, Division 30 of, the Public Resources Code,
and begin insert the goals of end insert the Short-Lived Climate Pollutant Reduction
Strategy being developed by the State Air Resources Board
pursuant to Section 39730 of the Health and Safety Code by using
diverted organic waste to produce begin delete renewable gas. end delete begin insert biogas. end insert

SEC. 2.  

Section 25420 of the Health and Safety Code is
amended to read:

25420.  

For purposes of this chapter, the following definitions
apply:

(a) “Biogas” means gas that is produced from organic waste
through anaerobic digestion or eligible begin insert noncombustion thermal end insert
conversion technologies, consistent with Section 40106 of the
Public Resources Code.

(b) “Biomethane” means the methane derived from biogas.

(c) “Board” means the State Air Resources Board.

(d) “CalRecycle” means the Department of Resources Recycling
and Recovery.

(e) “Commission” means the Public Utilities Commission.

(f) “Common carrier pipeline” means a gas conveyance pipeline
located in California that is owned or operated by a utility or gas
corporation, excluding a dedicated pipeline.

(g) “Dedicated pipeline” means a conveyance of biogas or
biomethane that is not part of a common carrier pipeline system
and that conveys biogas from a biogas producer to a conditioning
facility or an electrical generation facility.

(h) “Department” means the Department of Toxic Substances
Control.

(i) “Gas corporation” has the same meaning as defined in Section
222 of the Public Utilities Code and is subject to rate regulation
by the commission.

(j) “Hazardous waste landfill” means a landfill that is a
hazardous waste facility, as defined in Section 25117.1.

(k) “Office” means the Office of Environmental Health Hazard
Assessment.

(l) “Organic waste” means waste of biological origins, including
organic waste, as defined in Section 42649.8 of the Public
Resources Code; biomass feedstock, consistent with Section 40106
of the Public Resources Code; and livestock waste.

(m) “Person” means an individual, trust, firm, joint stock
company, partnership, association, business concern, limited
liability company, or corporation. “Person” also includes any city,
county, district, and the state or any department or agency thereof,
or the federal government or any department or agency thereof to
the extent permitted by law.

SEC. 3.  

Section 39735 is added to the Health and Safety Code,
to read:

39735.  

(a) For purposes of this section, the following terms
have the following meanings:

(1) “Biogas” has the same meaning as defined in Section 25420,
except that it does not include gas produced from forest biomass
unless it is produced from forest waste remaining after all other
reasonable forest products have been produced and it meets one
or more of the following conditions:

(A) The waste was generated pursuant to the Governor’s state
of emergency proclamation issued on October 30, 2015.

(B) The waste was generated as a result of activities necessary
to clear defensible space within 300 feet of a legally permitted
structure.

(C) The waste was produced pursuant to an approved timber
harvest plan, nonindustrial timber management plan, or working
forest management plan that will increase the average stand
diameter of residual crop trees, and the biogas produced from the
waste will provide long-term reductions in greenhouse gas and
emissions of short-lived climate pollutants pursuant to the life-cycle
accounting method specified in subdivision (c).

(D) The waste was generated from fuel reduction or ecological
forest restoration thinning activities on national forest land that
increase stand heterogeneity, create openings of less than one acre,
and increase the average stand diameter of residual trees.

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(2) “Renewable gas” means biogas or synthetic gas generated
by an eligible renewable energy resource meeting the requirements
of the California Renewables Portfolio Standard Program (Article
16 (commencing with Section 399.11) of Chapter 2.3 of Part 1 of
Division 1 of the Public Utilities Code). For purposes of this
paragraph, “eligible renewable energy resource” does not include
organic waste, as defined in subdivision (l) of Section 25420.

end delete begin delete

(3)

end delete

begin insert (2) end insert  “Short-lived climate pollutant” has the same meaning as
defined in Section 39730.

(b) In order to meet the state’s climate change, low-carbon fuel,
renewable energy, landfill diversion, and wildfire reduction goals,
the state board shall consider and, as appropriate, adopt policies
to significantly increase the sustainable production and use of
begin delete renewable gas. end delete begin insert biogas. end insert In doing so, the state board shall do all the
following:

(1) Ensure that any policy is coordinated and consistent with
existing state policies to accomplish the following:

(A) Promote renewable fuels and eligible renewable energy
resources, as defined in the California Renewables Portfolio
Standard Program (Article 16 (commencing with Section 399.11)
of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code).

(B) Reduce life-cycle emissions of greenhouse gases and
short-lived climate pollutants and increase carbon sequestration.

(C) Divert organic waste from landfills, consistent with Section
39730 and other state policies.

(D) Reduce air and water pollution.

(E) Reduce wildfires.

(F) Promote resilient and sustainable forests.

(G) Protect the environmental quality of natural and working
lands through sustainable cultivation, use, and application of
biological materials.

begin insert

(2) Ensure that any adopted biogas policy is protective of public
health and safety.

end insert begin delete

(2)

end delete

begin insert (3) end insert  Ensure, in consultation with the Department of Resources
Recycling and Recovery, that any policy recognizes that the amount
of landfill gas will decline in the future due to increased organic
waste diversion to meet the targets of the state board’s strategy to
reduce emissions of short-lived climate pollutants and other state
organic waste reduction efforts.

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(3)

end delete

begin insert (4) end insert  Ensure that the production and use of begin delete renewable gas end delete begin insert biogas end insert
provides direct benefits to the state’s environment by avoiding or
reducing the emission of criteria pollutants, avoiding or reducing
emissions of short-lived climate pollutants and greenhouse gases
within the state, avoiding or reducing emissions that adversely
affect the waters of the state, avoiding or reducing nuisances
associated with the emission of odors, or helping the state to meet
its landfill diversion requirements.

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(4)

end delete

begin insert (5) end insert  Identify barriers to the rapid development and use of
begin delete renewable gas end delete begin insert biogas end insert and make specific recommendations to
remove those barriers.

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(5)

end delete

begin insert (6) end insert  Coordinate with the Public Utilities Commission, the State
Energy Resources Conservation and Development Commission,
publicly owned utilities, the Department of Resources Recycling
and Recovery, and the Department of Forestry and Fire Protection.

begin delete

(6)

end delete

begin insert (7) end insert  Identify potential sources of funding to provide incentives
for begin delete renewable gas end delete begin insert biogas end insert production and use.

(c) The state board shall develop and adopt a life-cycle
accounting method for greenhouse gas and emissions of short-lived
climate pollutants associated with biogas produced from forest
biomass that meets the requirements specified in paragraph (1) of
subdivision (a). The method shall include upstream accounting of
forest carbon and shall avoid double counting of emission
reductions.

(d) Nothing in this section is intended to affect standards adopted
pursuant to Section 25421 before January 1, 2016, for biomethane
that is to be injected into a common carrier pipeline.

begin delete

SEC. 4.  

Section 40106 of the Public Resources Code is
amended to read:

40106.  

(a) “Biomass conversion” means the production of
heat, fuels, or electricity by the controlled combustion of, or the
use of other noncombustion thermal conversion technologies on,
the following materials, when separated from other solid waste:

(1) Agricultural crop residues.

(2) Bark, lawn, yard, and garden clippings.

(3) Leaves, silvicultural residue, and tree and brush pruning.

(4) Wood, wood chips, and wood waste.

(5) Nonrecyclable pulp or nonrecyclable paper materials.

(6) Byproducts or residue from composting.

(b) “Biomass conversion” does not include the controlled
combustion of recyclable pulp or recyclable paper materials, or
materials that contain industrial sludge, medical waste, hazardous
waste, or either high-level or low-level radioactive waste.

(c) For purposes of this section, “nonrecyclable pulp or
nonrecyclable paper materials” means either of the following, as
determined by the department:

(1) Paper products or fibrous materials that cannot be
technically, feasibly, or legally recycled because of the manner in
which the product or material has been manufactured, treated,
coated, or constructed.

(2) Paper products or fibrous materials that have become soiled
or contaminated and as a result cannot be technically, feasibly, or
legally recycled.

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