BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 25
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          Date of Hearing:  June 28, 2010

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                     SB 25 (Padilla) - As Amended:  June 21, 2010

           SENATE VOTE  :  Vote not relevant
           
          SUBJECT  :  Solid waste:  rendering 

           SUMMARY  :  Specifies that "renderer" and "rendering" do not  
          include facilities or activities that are already licensed by  
          the Department of Resources Recovery and Recycling (DRRR).  

           EXISTING LAW  , pursuant to the California Meat and Poultry  
          Inspection Act: 

          1)Defines "renderer" as any person engaged in the business of  
            rendering any livestock or poultry carcass, or any part or  
            product of such a carcass, except as specifically exempted.  

          2)Defines "rendering" as all recycling, processing, and  
            conversion of animal and fish materials and carcasses and  
            inedible kitchen grease into fats, oils, proteins, and other  
            products that are used in the animal, poultry, pet food, or  
            other industries.  

           THIS BILL  :  
           
          1)Specifies that "renderer" does not include a person operating  
            a solid waste facility "licensed" by DRRR that hauls, handles,  
            or processes mammalian, poultry, or fish tissue from the food  
            service industry, grocery stores, or residential food scrap  
            collection, or as part of a research composting operation for  
            the purpose of obtaining data on pathogen reduction or other  
            public health, animal health, safety, or environmental  
            concerns.  

          2)Specifies that "rendering" does not include recycling,  
            processing, or conversion of mammalian, poultry, or fish  
            tissue from the food service industry, grocery stores, or  
            residential food scrap collection at a solid waste facility  
            licensed by DRRR, or as part of a research composting  
            operation for the purpose of obtaining date on pathogen  
            reduction or other public health, animal health, safety, or  








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            environmental concerns.  
           
          FISCAL EFFECT  :   Non-fiscal

           COMMENTS  :   

           1)Purpose of the bill.   According to the author, food waste is  
            being used to produce compost, renewable energy, and biofuels  
            at facilities permitted and inspected by DRRR.  CDFA recently  
            proposed regulations that would impose regulatory authority  
            over some solid waste facilities (composting and anaerobic  
            digestion facilities) that handle and process meat scraps and  
            trimmings from butcher shops and retail establishments.  The  
            author states that because these facilities are already  
            permitted and regulated by DRRR, the facilities and haulers  
            should not also be required to be [licensed] and regulated by  
            CDFA.  


           2)Background.   Careful management of waste meat, poultry, and  
            fish tissue is necessary to protect public health and safety  
            and the environment.  Currently, this material is jointly  
            regulated by CDFA and DRRR.  CDFA licenses and inspects  
            renderers who recycle animal carcasses, packinghouse waste and  
            inedible kitchen grease into animal feed ingredients and  
            inedible industrial fats, oils, and other products and  
            registers transporters of inedible kitchen grease.   DRRR  
            permits and inspects solid waste facilities, including compost  
            and anaerobic digestion facilities, that accept mammalian,  
            fish, and poultry from the food service industry, grocery  
            stores, and residential food scrap collection programs.  DRRR  
            does not regulate solid waste haulers.  

          Animal tissue not fit for human consumption is generally sent to  
            rendering facilities that process the material into fats,  
            oils, and protein used for animal feed (including pet food)  
            and as ingredients in soaps, paints, cosmetics and toiletries,  
            explosives, pharmaceuticals, leather, textiles, and  
            lubricants.  CDFA regulations require animal tissue generated  
            by specified food-processors (including butcher shops and  
            grocery stores) to be disposed of through licensed renderers  
            or pet food processors.  Transporters of animal tissue  
            products are required to register with CDFA.   Waste meat,  
            poultry, and fish tissue from restaurants is not regulated and  
            it handled with other solid waste. 








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          The recommended hierarchy for food scrap management in  
            California is to:  1) Prevent food waste; 2) Feed people; 3)  
            Convert to animal feed and/or render; and, 4) Compost.  Food  
            waste (including animal tissue) can be composted either by the  
            general public or in industrial composting facilities, if they  
            are permitted to accept food waste.  DRRR regulations prohibit  
            the composting of unprocessed mammalian tissue due to  
            potential public health and safety risks.  Food scraps require  
            precise management because they may be heavier and contain  
            more putrescible material than other organic waste.  

          According to the sponsor, regulations currently proposed by CDFA  
            would require solid waste facilities (including existing  
            facilities), specifically composting facilities and anaerobic  
            digesters, to be regulated by CDFA if they accept animal  
            tissue even though they are already permitted by DRRR.   
            Supporters state that these regulations are not only  
            unnecessary, but inappropriate for these types of facilities  
            and are "potentially contradictory to some of the health and  
            safety requirements of the agency that has primary oversight  
            responsibility."  Additionally, the regulations require solid  
            waste haulers transporting mixed solid waste or organic  
            material that may include food waste to permitted solid waste  
            facilities to register with CDFA.  This has created a climate  
            of regulatory uncertainty for these facilities, which will  
            hinder their expansion. 

          Opponents of the bill state that this bill would allow  
            composting of animal tissue that would then be available to  
            the public and farmers for land application, potentially  
            spreading serious animal diseases, and that composting has not  
            been proven to destroy disease pathogens as effectively as  
            rendering.  They note that federal regulations prohibit  
            feeding "ruminants to ruminants" and that possible grazing of  
            cattle on land that has had compost containing animal tissue  
            applied to it may increase the risk of diseases such as mad  
            cow.  Finally, they state that the appropriate venue for  
            addressing these issues is the open regulations package at  
            CDFA.  



           3)Related legislation:  









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             a)   AB 2612 (Agriculture Committee) is an omnibus bill that,  
               among other issues, expands the definition of a "collection  
               center" to include a "pet food processor", changes the  
               license expiration date from a year of issuance to December  
               31 of each year, and exempts a "collection center" from  
               registration as a transporter of kitchen grease if they are  
               licensed as a collection center.

             b)   SB 1107 (Kehoe), requires the State Water Resources  
               Control Board (SWRCB), on or before January 1, 2012, to  
               develop, adopt, and implement regulations that include  
               specified requirements, for a manifest system to track the  
               transportation of interceptor and trap grease, as  
               specified.  This bill requires SWRCB to impose a fee  
               sufficient to cover the costs of implementation, and  
               requires SWRCB to deposit all revenues from the fee in the  
               Interceptor and Trap Grease Manifest Fund, which the bill  
               establishes.  This bill authorizes SWRCB to expend monies  
               in the fund to implement the bill, subject to appropriation  
               for that purpose.

           4)Drafting issues  .  This bill currently exempts facilities  
            "licensed" by DRRR; however, DRRR issues permits for  
            facilities, not licenses.  If this bill moves forward,  the  
            committee may wish to amend the bill  to clarify that the  
            provisions apply to facilities permitted by DRRR.   

           5)Double referral  .  If this bill passes out of this committee,  
            it will be referred to the Assembly Committee on Agriculture.   


           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Californians Against Waste
          Republic Services, Inc.
           
            Opposition 
           
          California Grain and Feed
          Pacific Coast Rendering Association

           
          Analysis Prepared by :  Elizabeth MacMillan / NAT. RES. / (916)  








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          319-2092