BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 498
                                                                  Page 1

          Date of Hearing:  June 16, 2014

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                    SB 498 (Lara) - As Amended:  January 27, 2014

           SENATE VOTE  :  34-0
           
          SUBJECT  :  Solid waste:  biomass conversion

           SUMMARY  :  Adds the production of fuels and the use of  
          non-combustion thermal conversion technologies to the definition  
          of "biomass conversion" for purposes of the Integrated Waste  
          Management Act (IWMA).

           EXISTING LAW  :

          1)Requires each local jurisdiction to divert 50 percent of solid  
            waste from landfill disposal or transformation by January 1,  
            2000, through source reduction, recycling, and composting  
            activities.

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

          3)Defines "biomass conversion" to mean the controlled  
            combustion, when separated from other solid waste and used for  
            producing electricity or heat, of specified biomass,  
            including, agricultural crop residues, bark, lawn, yard,  
            garden clippings, leaves, silvicultural residue, tree and  
            brush pruning, wood, wood chips, and wood waste and  
            non-recyclable pulp or non-recyclable paper materials.  

          4)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.

          5)Under California's Renewables Portfolio Standard (RPS),  
            requires retail sellers of electricity (investor owned  
            utilities, energy service providers, and community choice  
            aggregators) to achieve specified renewable energy targets: 








                                                                  SB 498
                                                                  Page 2


             a)   20 percent on average from January 1, 2011 to December  
               31, 2013;

             b)   25 percent by December 31, 2016; and,

             c)   33 percent by December 31, 2020 and each year  
               thereafter.

          6)Identifies the types of renewable energy that apply toward the  
            targets, including biodiesel, biomass, biomethane, fuel cells  
            using renewable fuels, geothermal, hydroelectric, municipal  
            solid waste, ocean wave, ocean thermal, solar, tidal current,  
            and wind, as specified.  

          FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, this bill has no state costs.

           COMMENTS  :

           1)Conversion technology  .  The term "conversion technologies"  
            generally refers to a variety of technologies that process  
            material through chemical, biological, or other  
            "non-combustion" thermal technologies to produce energy 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.  These technologies produce ash that must be  
            disposed. 

            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  
            residues from these processes can be composted.

            Physiochemical conversion involves the physical and chemical  








                                                                  SB 498
                                                                  Page 3

            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.

           2)Biomass conversion  .  Biomass conversion facilities use  
            controlled combustion of organic material separated from solid  
            waste to produce electricity or heat.  Biomass includes  
            agricultural crop residues, bark, lawn, yard, garden  
            clippings, leaves, silvicultural residue, tree and brush  
            pruning, wood, wood chips, and wood waste and non-recyclable  
            pulp or non-recyclable paper materials.   

           3)Managing organic waste.  CalRecycle is tasked with diverting  
            at least 75 percent of solid waste statewide by 2020.   
            Currently, organic materials make up one-third of the waste  
            stream and food continues to be the highest single item  
            disposed at over 15 percent of disposal.  CalRecycle is also  
            charged with implementing its Strategic Directive 6.1, which  
            calls for reducing organic waste disposal by 50 percent by  
            2020.  According to CalRecycle, significant gains in organic  
            waste diversion are necessary to meet the 75 percent goal and  
            implementing Strategic Directive 6.1.  Recycling technologies  
            for organic waste include composting, anaerobic digestion, and  
            other types of processing that generate renewable fuels,  
            energy, soil amendments, and mulch.  Compost and other soil  
            amendments that can be produced from organic materials have  
            been shown to improve soil health by incorporating organic  
            matter, beneficial micro-organisms, and nutrients and reduce  
            the need for chemical pesticides and fertilizers.  These  
            products also conserve water by allowing water to penetrate  
            the soil more quickly and decreasing runoff.

           4)Author's statement  :

               Existing California law defines "biomass conversion" as the  
               direct combustion of certain listed types of biomass  
               materials such as yard clippings, wood waste, and  
               agricultural residues.  This definition excludes conversion  
               technologies that can more efficiently generate electricity  
               from those same biomass materials with lower air emissions.  
                

               SB 498 will help facilitate cleaner and more efficient  








                                                                  SB 498
                                                                  Page 4

               technologies to develop in California for converting  
               organic waste to electricity and help the state reach its  
               75 percent waste reduction goal. Specifically, SB 498  
               includes conversion technologies (CT) within the definition  
               of biomass conversion.

               While CT could potentially have positive environmental  
               impacts in California, our ability to use CTs as a  
               potential "tool in our tool box" of waste diversion  
               technologies is hindered by a lack of inclusion of CT in  
               current conversion definitions.

               SB 498 would address deficiencies in current law by  
               adjusting the definition of "biomass conversion" to include  
               non-combustion conversion technologies. This is a  
               technology-neutral approach providing combustion and  
               non-combustion biomass facilities with the same incentives  
               and helping to facilitate cleaner and more efficient  
               technologies to develop in California for converting  
               biomass materials to renewable energy.

           5 Prior legislation  . SB 804 was similar to SB 498; however, it  
            included a number of provisions relating to composting and  
            anaerobic digestion and various certification requirements  
            relating to air quality that are not included in this bill.   
            SB 804 was vetoed by Governor Brown: 

               To the Members of the California State Senate:

               I am returning Senate Bill 804 without my signature.

               This bill would expand the existing definition of biomass  
               conversion to include non-combustion thermal, chemical, or  
               biological processes.

               While I agree with the intent of the bill, last minute  
               amendments made the bill overly complicated and unworkable.

               Therefore, I am directing the Department of Resources,  
               Recycling and Recovery, in conjunction with stakeholders,  
               to develop a sensible approach that would apply to all  
               biomass facilities irrespective of the technologies used.

               Sincerely,









                                                                  SB 498
                                                                  Page 5

               Edmund G. Brown Jr.

           6 Double referral.   This bill is double-referred to the Assembly  
            Environmental Safety and Toxic Materials Committee.  
           
           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California State Association of Counties
          City of Calabasas
          City of Glendale Water and Power
          City of Torrance
          County of Los Angeles
          County of Santa Barbara
          Enerkem
          Interior Removal Specialist, Inc. 
          Rural County Representatives of California 
          Sanitation Districts of Los Angeles County
          Sierra Energy 
           
            Opposition 
           
          Asamblea de Poder Popular de Gonzales 
          California Safe Schools
          Center for Biological Diversity
          Center on Race, Poverty, and the Environment
          Clean Water Action 
          Global Alliance for Incinerator Alternatives 
          Global Community Monitor 
          Grayson Neighborhood Council 
          Greenaction for Health and Environmental Justice 
          Sierra Club California 
          Valley Improvement Projects
          West Berkeley Alliance for Clean Air and Safe Jobs 


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