BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 34
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          Date of Hearing:  May 2, 2011

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                    AB 34 (Williams) - As Amended:  April 14, 2011
           
          SUBJECT  :  Solid waste compost facilities:  odor

           SUMMARY  :  Limits enforcement of odor complaints against compost 
          facilities to odors which can be verified to exceed "objective" 
          odor standards established pursuant to the bill.

           EXISTING LAW  , pursuant to the Integrated Waste Management Act of 
          1989:

          1)Requires local agencies to divert, through source reduction, 
            recycling, and composting, 50% of solid waste disposed by 
            their jurisdictions.

          2)Requires local enforcement agencies (LEAs) for solid waste 
            (generally cities or counties) to enforce statewide minimum 
            enforcement standards for solid waste handling and disposal.

          3)Prohibits the operation of a solid waste facility, including a 
            compost facility, without a solid waste facilities permit 
            issued by the LEA having jurisdiction over the facility.

          4)Requires CalRecycle to adopt regulations governing the 
            operation of organic composting sites, including "odor 
            management and threshold levels."  CalRecycle regulations 
            require:

             a)   All compostable materials handling activities shall be 
               conducted in a manner that minimizes vectors, odor impacts, 
               litter, hazards, nuisances, and noise impacts; and 
               minimizes human contact with, inhalation, ingestion, and 
               transportation of dust, particulates, and pathogenic 
               organisms.

             b)   All compostable material handling operations and 
               facilities shall prepare, implement and maintain a 
               site-specific odor impact minimization plan, describing 
               protocols for monitoring and complaint response, 
               meteorological conditions, design considerations, and 
               operating procedures.








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          5)Exempts odors emanating directly from compost facilities from 
            air districts' general authority over air contaminants.

           THIS BILL  :

          1)Requires CalRecycle, on or before July 1, 2012, to develop a 
            guidance document to assist LEAs in adopting odor standards, 
            as specified, for compost facilities.  Requires the guidance 
            document to require:

             a)   Fenceline (at the compost facility) and receptor (at the 
               residence of a person making an odor complaint) performance 
               thresholds to be a numerical dilution-to-threshold ratio 
               measured with a field olfactometer or similar device.

             b)   Enforcement agencies to ensure that odor measurements 
               are verifiable and repeatable and that the odor at a 
               residence is the same odor as the odor originating at the 
               compost facility.

             c)   Standards limiting the maximum number of performance 
               threshold exceedance standards that can occur in a 24-hour 
               period.

          2)Authorizes a compost facility operator to apply to a LEA to 
            adopt odor standards for that facility.  The application must 
            include proposed odor standards and be accompanied by a filing 
            fee, unless the LEA has not established a fee.

          3)Requires the LEA to provide draft odor standards to the 
            operator within 60 days, including an explanation of any 
            differences from the standards proposed by the operator.

          4)Authorizes the operator to submit a response within 30 days.

          5)Requires the LEA to provide final odor standards to the 
            operator and CalRecycle, including an explanation of why they 
            are appropriate in light of the relevant circumstances.

          6)Authorizes CalRecycle to reject the final odor standards 
            within 30 days and requires CalRecycle to explain its reasons 
            and offer suggestions.

          7)Requires the odor standards to be "deemed accepted" by 








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            CalRecycle if no action is taken within 30 days.

          8)Authorizes a compost facility operator to appeal the final 
            odor standards to CalRecycle, which is required to conduct a 
            de novo review.  If CalRecycle finds that the LEA's odor 
            standards are inappropriate or improper, requires CalRecycle 
            to issue final odor standards that are appropriate and proper.

          9)Authorizes a compost facility operator to appeal CalRecycle's 
            decision by filing a petition for writ of mandate in Superior 
            Court and requires the Court to exercise independent judgment 
            in its review.

          10)Once an LEA has adopted odor standards, prohibits a LEA from 
            verifying an odor complaint originating from a compost 
            facility unless the odor violates the odor standards.

          11)Requires participating compost facility operators to submit 
            to CalRecycle an annual odor regulation fee, to be set by 
            CalRecycle to cover its reasonable regulatory costs.

           FISCAL EFFECT  :  Unknown

           COMMENTS  : 

           1)The nose knows.   Like many other nuisance issues, the issue of 
            offensive odors seems inherently subjective.  Since at least 
            2002, statute has required CalRecycle to establish odor 
            threshold levels for compost facilities.  However, CalRecycle 
            has never adopted "objective" odor standards, deciding 
            instead, with agreement of LEAs and facility operators, to 
            require Odor Impact Minimization Plans (OIMPs).  The compost 
            facility that gave rise to this bill, Jepson Prairie Organics 
            (JPO) in Solano County, has been the subject of odor 
            complaints from downwind residents comparing the odor to 
            "dirty diapers" and "rotting flesh."  JPO is a major composter 
            of food waste from the Bay Area.

            According to CalRecycle's website:

               The olfactory system can distinguish thousands of odors.  
               Olfactory information travels to the limbic system of the 
               brain which governs emotions, behavior, and has memory 
               storage.  The information from odors also goes to the 
               brain's cortex, or outer layer, where conscious thought 








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               occurs.  Therefore, odor is very subjective and difficult 
               to regulate due to the varied sensitivities and the 
               differing emotions, and memories which an odor elicits.  
               Some odors are generally considered unpleasant by most 
               people: odors containing ammonia are pungent; those which 
               have hydrogen sulfide smell like rotten eggs; and odors 
               with cadaverine have a rancid smell.  However, even an 
               "agreeable" odor may produce different responses in 
               separate individuals?

               ?Odor is the number one operational challenge that 
               threatens (compost) sites in California.  Due to the 
               encroachment of residential and commercial properties, all 
               sites, with the exception of a few agricultural sites, will 
               need to explore a strategy of odor minimization.  Odors are 
               generally a nuisance, not a health risk to the 
               community?The human nose's ability to smell makes it the 
               most sensitive detection tool available.  Although, it 
               should be remembered that sensitivity to odors is variable 
               from one person to the next.  Quantifying the amount of 
               odor that constitutes an objectionable amount is virtually 
               impossible due to the wide variation in how people perceive 
               odors as well as the typically transient nature of odors. 
               Some possible detection tools are the scentometer, jerome 
               meter and field olfactory meter.  Odor panels have also 
               been used to analyze odor samples?.

               ?Odors from composting can generate problematic odors 
               including ammonia, hydrogen sulfide (the smell of rotten 
               eggs).  If an odor from the composting process occurs, the 
               odor characteristics may assist in identifying the source 
               and possibly remediating the problem.  The composting 
               process breaks down feedstock and utilizes the nitrogen and 
               carbon.  The best mix is about one part nitrogen to 30 
               parts carbon.  Woody wastes contain lots of carbon and 
               green wastes contain lots of nitrogen.  Too much carbon may 
               cause the pile to break down too slowly, while too much 
               nitrogen may cause odor.  Carbon provides energy for the 
               microbes, and nitrogen provides protein.  Ammonia contains 
               nitrogen and an ammonia smell may indicate that a compost 
               pile has too much nitrogen for the amount of carbon 
               present.  Ammonia may indicate that the carbon pieces are 
               too large (not chipped enough) and therefore are not 
               available for the biological processing with the nitrogen.  
               Hydrogen sulfide and mercaptans (rotten eggs) signify that 








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               an anaerobic condition exists which may have resulted from 
               too much water and/or not enough air spaces?

               ?The OIMP is an aggressive operational plan devised by the 
               operator to prevent odors from occurring and to plan in 
               advance the complaint investigation procedures and 
               mitigation measures that should be taken if odors do occur. 
                All composting sites, with the exception of some 
               agricultural sites, are required to have an OIMP.

           2)Purpose of the bill.   According to the author:

            All compost facilities will create some odors, and it's the 
            job of the operator to minimize, not eliminate, odors. AB 34 
            proposes that California follow in the footsteps of other 
            states' regulators, and work to adopt objective odor standards 
            as a component of an operator's odor plan.  AB 34 only 
            requires (CalRecycle) and the (LEA) to adopt a site-specific 
            standard if the operator requests it.  And, the operator must 
            pay a fee that covers the cost of this work.  This way the 
            operator can strive to meet an appropriate, measurable 
            standard.

            Recology has an organics processing facility called Jepson 
            Praire Organics.  This facility has had to contend with odor 
            complaints.  To date, Recology has made a multitude of changes 
            in their operations to mitigate the compost odors, both 
            physical and operational.  Such changes include, but aren't 
            limited at, hiring an engineering firm to ensure there is no 
            runoff offsite and that all runoff is aerobic, spending 
            millions to install a forced aeration composting system which 
            incorporates bio filtration to ensure the destruction of both 
            emissions and odors, adjusting the feedstock to ensure all 
            composting is aerobic, and requiring all operators to have 
            BlackBerrys that monitor weather and wind direction.  If the 
            wind is blowing in the wrong direction, Recology shuts down 
            that part of the operation.  In the face of all these changes, 
            complaints continue and it's time to offer the operator an 
            optional path for establishing an objective standard.  This 
            method will protect composting in the face of unrealistic 
            expectations held by neighbors.

            It is important to note that AB 34 does not legislate any 
            facility into compliance with the law.  Further, there are a 
            number of facilities in California that are experiencing 








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            similar issues and will benefit from this opportunity.

           3)An objective standard demands an objective process.   This bill 
            provides for the adoption of facility-specific odor 
            "performance thresholds" to create a more objective standard 
            to judge odor complaints.  Once a standard is adopted, any 
            odor complaint must be confirmed against the standard, 
            creating a higher burden of proof for complaints.  However, 
            the process outlined in the bill seems less than objective, 
            giving compost facility operators preferential rights compared 
            to LEAs and other interested parties.  For example, the bill 
            establishes new appeals procedures where only an operator can 
            file an administrative or judicial appeal.  It also applies an 
            independent judgment standard of review (denying deference to 
            the agency), where a substantial evidence standard would be 
            more appropriate.   The author and the committee may wish to 
            consider  deleting the new appeal procedures and relying on the 
            existing procedures for administrative and judicial appeals 
            applicable to CalRecycle under the Act.  The bill also 
            suggests that odor complaints can only originate from the 
            fenceline of the compost facility or the complainant's 
            residence, which appears to exclude complaints from other 
            locations such as workplace, park, etc.   The author and the 
            committee may wish to consider  substituting "location" for 
            "residence."  Finally, the "guidance document" to be developed 
            by CalRecycle includes criteria which are posed as 
            requirements that would be binding on LEAs.  If these criteria 
            are to form the basis of odor standards that will be binding 
            and enforceable, they should instead be adopted as regulations 
            by CalRecycle.  























                                                                 AB 34
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          REGISTERED SUPPORT / OPPOSITION  :  
           
           Support 
           
          California Bio-Mass, Inc.
          Californians Against Waste
          Recology

           Opposition 
           
          None on file

          
          Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916) 
          319-2092