BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                               AB 2205
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    AB 2205
           AUTHOR:     V. M. Pérez
           AMENDED:    June 6, 2012
           FISCAL:     Yes               HEARING DATE:     June 18, 2012
           URGENCY:    No                CONSULTANT:       Peter Cowan
            
           SUBJECT  :   HAZARDOUS WASTE:  ORES AND MINERALS:   
                      GEOTHERMAL WASTE

            SUMMARY  :    
           
            Existing law  :

            1) Authorizes the State Water Resources Control Board (SWRCB) 
              and Regional Water Quality Control Boards (RWQCBs) to 
              regulate geothermal waste.  (Water Code §13000 et seq.). 

            2) Authorizes the Department of Toxic Substances Control 
              (DTSC) to regulate waste generated during geothermal energy 
              production, and requires DTSC to establish standards and 
              regulations for the management of hazardous wastes to 
              protect against the hazards to public health, domestic 
              livestock, wildlife and the environment.  (Health and 
              Safety Code §25100 et seq.). 

            3) Exempts from regulation by DTSC, geothermal wastes from 
              the exploration, development, and production of geothermal 
              energy, if such wastes are contained within the operating 
              system of that same facility.  (§25143.1). 

            4) Requires the wastes to be "contained" on site at an 
              operating geothermal production facility and requires the 
              removal of geothermal waste that is relocated for drying 
              within 30 days.  (§25143.1). 

            5) Exempts wastes from the extraction, beneficiation, and 
              processing of ores and minerals that are not subject to 
              regulation under the federal Resource Conservation and 
              Recovery Act from regulation by DTSC, except the 









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              Carpenter-Presley-Tanner Hazardous Substance Account Act 
              (§25300 et seq.) and the Toxic Pits Cleanup Act of 1984 
              (§25208 et seq.). 

            6) Defines "wastes from the extraction, beneficiation, and 
              processing of ores and minerals" as soil, waste rock, 
              overburden, and other solid, semisolid, or liquid natural 
              materials that are removed, unearthed, or otherwise 
              displaced as a result of excavating or recovering an ore or 
              a mineral, or the residuals of those ores after treatment 
              or processing.  (§25143.1). 

            This bill  : 

           1) Clarifies that "Wastes from the extraction, beneficiation, 
              and processing of ores and minerals" includes spent brine 
              solutions that are used to produce geothermal energy and 
              that are transferred, via a closed piping system, to an 
              adjacent facility for reclamation, beneficiation, or 
              processing to recover minerals or other commercial 
              substances, if the spent brine solutions, and any liquid 
              residuals derived from the solutions are:

              a)    Managed in accordance with specified provisions of 
                 the Code of Federal Regulations.

              b)    Returned after processing, via closed piping, and 
                 subsequently managed in accordance with the exemption 
                 under existing law. 

              c)    Not solid or semisolid hazardous residuals.

            COMMENTS  :

            1) Purpose  . According to the author AB 2205 "seeks to clarify 
              that existing regulations and exemptions that apply to 
              geothermal plants also apply to new processes that extract 
              materials from geothermal waste in connection with that 
              plant in a closed-loop system. The proposed amendment is 
              intended to provide certainty to both geothermal developers 
              and extraction companies, ensuring that neither party's 
              geothermal exemption will be imperiled due to the 
              extraction of beneficial commercial substances." 









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            2) Geothermal power plant operations  . Geothermal powerplants 
              use super-heated geothermal brine pumped from below the 
              earth's surface to heat boilers that drive steam turbines, 
              generating renewable electricity. After being used to heat 
              the boilers, the cooled brine is injected back underground 
              to recharge the geothermal resource, creating a closed-loop 
              system. Geothermal plants, particularly those near the 
              Salton Sea, often filter materials out of the brine to 
              avoid fouling their equipment and to enable the brine to be 
              pumped back into the resource more easily.

              Flash geothermal steam plants, the kind found in the 
              Imperial Valley, bring up hot water brines with levels of 
              toxic and radioactive substances that are often 
              sufficiently high to be considered hazardous.  When the 
              resulting steam is then condensed to brine, it may contain 
              up to 30% of its weight as dissolved solids.  This hot 
              brine is then treated to separate out the solids, known as 
              filter cake.  At a temperature of about 200 degrees 
              Fahrenheit, the resulting brine is then sent to outdoor 
              pools where still more solids precipitate out.  Finally, 
              the remaining fluids are re-injected into the underground 
              reservoir.  The solid residues are tested on site and any 
              hazardous filter cake is managed as solid or hazardous 
              waste.

            3) Regulation of geothermal brine  .  According to documents 
              filed by the SWRCB relative to geothermal permits, the 
              United States Environmental Protection Agency (US EPA) 
              proposed hazardous waste management standards that included 
              reduced requirements for several types of large volume 
              wastes including geothermal waste. Subsequently, Congress 
              exempted these wastes from the Resource Conservation and 
              Recovery Act (RCRA), Subtitle C hazardous waste 
              regulations.  Among the wastes covered by the 1978 proposal 
              were "gas and oil drilling muds and oil production brines." 
               The oil and gas exemption was expanded in 1980 to include 
              drilling fluids and produced water, from crude oil, natural 
              gas and geothermal wells.  The extended list of exempt 
              wastes includes "hydrogen sulfide abatement wastes from 
              geothermal energy production" and "well completion, 
              treatment and stimulation fluids."









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              In California, DTSC has been granted primary enforcement 
              authority for hazardous waste regulation by US EPA.  
              Geothermal wastes, however, are exempt from regulation as 
              hazardous waste by the California Code of Regulations Title 
              22, and the Health and Safety Code including Section 
              25143.1(a) which provides:  "Any geothermal waste resulting 
              from drilling for geothermal resources is exempt from the 
              requirements of this chapter because the disposal of these 
              geothermal wastes is regulated by the California Regional 
              Water Quality Control Boards."

              In 2006, questions raised about DTSC's jurisdiction over 
              geothermal plants led to the current language for the 
              exemption. To avoid duplicative regulation by RWQCBs and 
              DTSC, Assembly Bill 1294 (Ducheny) Chapter 143, Statutes of 
              2006, clarified that any waste from the operation of a 
              geothermal energy plant was also exempt from DTSC 
              regulation, in addition to the existing exemption for waste 
              from drilling.

            4) Most Recent Amendments  .  The introduced version of AB 2205 
              was intended to clarify that wastes from geothermal energy 
              production are exempt from DTSC jurisdiction while they are 
              contained within the production system (e.g., pipes, 
              nonearthen trench) used in connection with the beneficial 
              extraction of commercial substances.  The June 6, 2012, 
              amendments instead clarify that spent brine solutions that 
              are used to produce geothermal energy are included in the 
              definition of "wastes from the extraction, beneficiation, 
              and processing of ores and minerals," provided specified 
              conditions are satisfied.

            5) Related legislation  .  AB 1620 (Wieckowski) provides for an 
              exemption from DTSC hazardous waste treatment permitting 
              for low-risk waste management practices including 
              separation of air and particulate matter by physical means 
              and compaction of compatible waste by physical means to 
              reduce volume.  AB 1620 was approved by the Senate 
              Environmental Quality Committee on May 15, 2012 (6-0) and 
              is in the Senate Appropriations Committee.
            
           SOURCE  :        Simbol Materials









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             SUPPORT  :       Brawley Chamber of Commerce, CleanTECH San 
                          Diego, EnergySource, Geothermal Energy 
                          Association, Imperial County Board of 
                          Supervisors, Imperial Irrigation District, 
                          Imperial Valley Economic Development 
                          Corporation, Marine Group Boat Works

            OPPOSITION  :    None on file.