BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2633
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          Date of Hearing:   April 28, 2014

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                    AB 2633 (Allen) - As Amended:  March 28, 2014
           
          SUBJECT  :   Recycling:  plastic material

           SUMMARY  :   Revises the state's 75 percent recycling goal to  
          include waste-to-energy (WTE) as recycling and requires the  
          Department of Resources Recycling and Recovery (CalRecycle) to  
          take specified actions to encourage specified recycling and WTE  
          technologies.  

           EXISTING LAW  :  

          1)Establishes the California Integrated Waste Management Act of  
            1989, which: 

             a)   Codifies the state's solid waste hierarchy, which  
               requires that waste management practices be promoted in the  
               following order: 

               i)     Source reduction; 

               ii)    Recycling and composting; and, 

               iii)   Environmentally safe transformation (WTE) and  
                 environmentally safe land disposal, at the discretion of  
                 the city or county.  

             b)   Specifies a state policy goal that 75 percent of solid  
               waste generated be diverted from landfill disposal by 2020  
               through source reduction, recycling, or composting. 

             c)   Requires each local jurisdiction to divert 50 percent of  
               solid waste from landfill disposal.

             d)   Establishes regulatory standards for facilities that  
               convert "engineered municipal solid waste" for energy  
               generation.  

             e)   Defines "solid waste" as all putrescible and  
               nonputrescible solid, semisolid, and liquid wastes,  
               including garbage, trash, refuse, paper, rubbish, ashes,  








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               industrial wastes, demolition and construction wastes,  
               abandoned vehicles and vehicle parts, discarded home and  
               industrial appliances, non-hazardous sewage, manure,  
               vegetable and animal solid and semisolid wastes, and other  
               discarded solid and semisolid wastes.  Specifies that solid  
               waste does not include hazardous waste, radioactive waste,  
               and medical waste.  

          2)Establishes various plastic recycling requirements and  
            incentive programs, including: 

             a)   Requires plastic trash bags sold in California to meet  
               specified recycled content requirements and report to  
               CalRecycle.  

             b)   Requires rigid plastic packaging containers, as defined,  
               to contain at least 25 percent postconsumer recycled  
               content, reach specified source reduction requirements, or  
               be reusable.  

             c)   Establishes the at-store recycling program for plastic  
               bags, which requires specified stores to collect and  
               recycle plastic bags.  

             d)   Specifies that CalRecycle may expend up to a specified  
               amount, currently $10 million, annually for market  
               development payments for empty plastic beverage containers  
               to processors (recyclers) and recycled-content product  
               manufacturers until January 1, 2017.  

           THIS BILL  :  

          1)Revises the state policy goal that 75 percent of solid waste  
            generated be source reduced, recycled, or composted by the  
            year 2020 to include solid waste that is "anaerobically  
            digested" or "used for electricity generation."  

          2)Requires CalRecycle to: 

             a)   Investigate emerging technologies that convert used  
               plastic products into "new plastic feedstock, such as  
               propylene monomer."  

             b)   By January 1, 2016, adopt regulations and protocols that  
               encourage WTE and "waste-to-fuel (WTF) pyrolysis" projects  








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               that "address various grades of plastic products that are  
               in landfills."  

             c)   By January 1, 2016, and annually until January 1, 2020,  
               examine and report to the Legislature on possible  
               incentives for businesses and organizations that practice  
               "state-of-the-art, cost-effective material separation and  
               recovery techniques" to locate recycling centers in  
               California.  
           
          FISCAL EFFECT  :   Unknown

           COMMENTS  :  

           1)This bill  .  According to the author:  

               Plastics exist in far more grades, types, and sub-grades  
               than anyone realizes, and with very few exceptions, for  
               recycled plastics to be used as  cost-effective drop-ins  for  
               virgin materials requires  complete  separation from other  
               plastics, other grades of plastics, other product  
               components, contaminants and additives, etc.  Separation  
               into the discrete, clean end-useable grades as described  
               above is near-impossible.  [Emphasis in original.]   

               [This bill is intended to] refine and implement those  
               technologies that can derive the maximum value in CA at  
               minimum cost out of the majority of mixed plastics without  
               requiring separation.   

          2)California's 75 percent goal  .  AB 341 (Chesbro), Chapter 476,  
            Statutes of 2011 established a state policy goal that 75  
            percent of California's solid waste be diverted from landfill  
            disposal through source reduction, recycling, or composting by  
            2020.  (CalRecycle regulations include anaerobic digestion as  
            composting.)  To assist the state in reaching that goal and  
            achieving the state's greenhouse gas (GHG) reduction goal to  
            reach 1990 levels by 2020 established by AB 32 (Nunez),  
            Chapter 488, Statutes of 2006, AB 341 included the requirement  
            that commercial generators of solid waste arrange for  
            recycling services.  California is currently diverting  
            approximately 65 percent of solid waste from landfills.   

            AB 341 requires CalRecycle to adopt policies and incentives to  
            significantly increase recycling statewide.  Since AB 341 was  








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            adopted, CalRecycle launched The 75 Percent Initiative and  
            adopted a statewide strategy to reach the state's recycling  
            goal.  Currently, CalRecycle has identified six areas of focus  
            for the Initiative:  1) Moving organics out of landfills; 2)  
            Continuing to reform the beverage container recycling program;  
            3) Expanding the recycling and recycled-content manufacturing  
            infrastructure through streamlined permitting, compliance  
            assistance, and financing incentives; 4) Exploring new models  
            of state and local funding for materials management (for  
            recycling); 5) Promoting state procurement of recycled-content  
            products; and, 6) Promoting expanded producer responsibility.   


            This bill would abandon the state's solid waste hierarchy, in  
            place since 1989, and undermine the intent of AB 34, and  
            CalRecycle's ongoing efforts to increase recycling, by making  
            WTE equal to source reduction, recycling, and composting for  
            purposes of reaching the state's recycling goal. 

           3)The other 25 percent  .   Dwindling landfill capacity and the  
            infeasibility of siting and permitting new disposal sites have  
            created demand for technologies that generate energy and fuels  
            from municipal solid waste.  Historically, "WTE" has been used  
            to describe traditional incineration.  However, newer  
            technologies, broadly referred to as "conversion  
            technologies," process solid waste through chemical,  
            biological, or other "non-combustion" thermal technologies to  
            produce electricity or renewable fuels. These technologies  
            create energy using three main processes:  thermochemical,  
            biochemical, and physicochemical.  

            Thermochemical conversion processes include high-heat  
            technologies like gasification and pyrolysis.  Thermochemical  
            conversion is characterized by higher temperatures and faster  
            conversion rates.  It is best suited for lower moisture  
            feedstocks.  Thermochemical routes can convert the entire  
            organic portion of suitable feedstocks.  The inorganic  
            fraction (ash) does not contribute to the energy products and  
            may contribute to fouling of high temperature equipment and  
            increased nutrient loading in wastewater treatment and  
            disposal facilities.  Generally the ash must be disposed.   
            Inorganic constituents may also accelerate some of the  
            conversion reactions.  Under current law, pyrolysis is  
            considered transformation, while gasification is explicitly  
            excluded from the definition of transformation.  








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            Biochemical conversion processes include aerobic conversion  
            (i.e., composting), anaerobic digestion, which is currently  
            regulated as composting, and anaerobic fermentation (for  
            example, the conversion of sugars from cellulose to ethanol).   
            Biochemical conversion processes use lower temperatures and  
            lower reaction rates.  Higher moisture feedstocks are  
            generally good candidates for biochemical processes.  The  
            lignin fraction of biomass cannot be converted by anaerobic  
            biochemical means and only very slowly through aerobic  
            decomposition.  As a consequence, a significant fraction of  
            woody and some other fibrous feedstocks exits the process as a  
            residue that may or may not have market value as a soil  
            amendment.  The residue can be composted.

            Physiochemical conversion involves the physical and chemical  
            synthesis of products from feedstocks (for example, biodiesel  
            from waste fats, oils, and grease) and is primarily associated  
            with the transformation of fresh or used vegetable oils,  
            animal fats, greases, tallow, and other suitable feedstocks  
            into liquid fuels or biodiesel.

           4)Concerns with conversion  .  While low-temperature biochemical  
            conversion (i.e., anaerobic digestion and composting of  
            organic materials) have been widely accepted in California,  
            higher heat conversion technologies have not been widely  
            accepted as environmentally safe alternatives to landfilling.   
            There have been some pilot and bench scale projects in  
            California and in other parts of the United States, but  
            significant questions remain about the costs, track records,  
            and relevant emissions data from facilities that use  
            feedstocks comparable to California.  

            In response to increasing interest in pursuing WTE options for  
            the remaining 25 percent of the waste stream and materials  
            that cannot be recycled, AB 1126 (Gordon), Chapter 411,  
            Statutes of 2013 established permitting requirements for  
            conversion facilities that process "engineered municipal solid  
            waste."  In May or June of this year, CalRecycle is planning  
            to hold the first in a series of workshops to "develop a  
            pathway for the recovery of energy, fuels, and chemicals from  
            solid waste residuals that cannot be recycled."  Fundamental  
            to this process is ensuring that recyclable materials are  
            removed from mixed solid waste prior to being converted for  
            energy or fuels. 








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            This bill would require CalRecycle to adopt "regulations and  
            protocols that encourage WTE and WTF pyrolysis projects that  
            address the various grades of plastic products that are in  
            landfills."  According to the bill's sponsor, this provision  
            is intended to apply to technologies that would convert  
            municipal solid waste containing any amount of plastic.   It  
            is not clear why the bill limits the scope of WTF projects to  
            pyrolysis.  This provision is inconsistent with the state's  
            goal of limiting WTE and WTF projects to those that process  
            solid waste from which all recyclables have been removed.  

           5)Managing plastic  .  Plastic comprises 9.6 percent of the total  
            disposed waste stream in California.  For comparison, organic  
            waste comprises 32.4 percent, "inert and other" comprises 29.1  
            percent, and paper comprises 17.3 percent.  

            According to the author, "for the majority of plastics,  
            cost-effective recycling is difficult if not impossible."   
            According to the bill's sponsor, "the original waste  
            separation costs [for plastic recycling], no matter how low,  
            eventually end up being the deal-stopper.  Anything that can  
            extract the maximum value and avoid the extra cost is  
            preferable."  Plastic recycling is challenging, especially for  
            non-beverage container plastic; however, recycling rates have  
            been steadily increasing.  

            In 2011, the American Chemistry Council released the 2009  
            National Report on Postconsumer Non-Bottle Rigid Plastic  
            Recycling, which found that between 2007 and 2009, domestic  
            recycling of plastic increased 47 percent, from 121 million  
            pounds to over 243 million pounds.  In 2008 and 2009, North  
            America began recycling more plastic than it exported.   
            According to the report, "non-bottle rigid plastic is sold in  
            a variety of single-resin and mixed-resin categories. The  
            value placed on most mixed-resin bales is dependent on the  
            likely percentage of polyolefin plastics in the bale:  higher  
            percentages of polyolefin (polyethylene and polypropylene)  
            generally are in higher demand."  Recycling plastic is  
            feasible and does occur on a large scale throughout the United  
            States.  

            This bill requires CalRecycle to investigate and report to the  
            Legislature on technologies and incentives for recycling in  
            California (the bill does not limit this provision to  








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            plastic).  This requirement in the bill appears to be  
            inconsistent with the sponsor's assertion that the separation  
            costs for plastic make WTE a preferable alternative to  
            recycling.  Moreover, this provision is duplicative of  
            CalRecycle's ongoing efforts to achieve the state's 75 percent  
            goal.   


           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Plastics Environmental Council (sponsor)

           Opposition 
           
          AZUL
          California Resource Recovery Association 
          Californians Against Waste
          Center for Biological Diversity 
          City and County of San Francisco
          Coalition for Clean Air
          Environmental Working Group
          Global Alliance for Incinerator Alternatives
          Heal the Bay
          Natural Resources Defense Council 
          Physicians for Social Responsibility, Los Angeles
          Sierra Club California 

           
          Analysis Prepared by  :    Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092