BILL ANALYSIS �
SB 498
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Date of Hearing: June 17, 2014
ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
Luis A. Alejo, Chair
SB 498 (Lara) - As Amended: January 27, 2014
SENATE VOTE : 34-0
SUBJECT : Biomass conversion.
SUMMARY : Provides expanded authority for biomass processing
facilities. Specifically, this bill :
1)Includes conversion technologies that use specified biomass
feedstock in the definition of "biomass conversion" for
purposes of the Integrated Waste Management Act (IWMA).
2)Defines biomass facilities to include production of fuel in
addition to heat and electricity.
EXISTING LAW :
1)Requires cities and counties to divert 50% of the solid waste
disposed of within their jurisdiction through source
reduction, recycling, and composting, but authorizes a city or
county to comply with up to 10% of the 50% diversion
requirement through biomass conversion.
2)Defines "biomass conversion" as the controlled combustion of
agricultural waste, yard and garden clippings, leaves and
forestry residue, wood chips, wood waste, and non-recyclable
pulp or non-recyclable paper materials when these substances
are separated from other solid waste.
3)Excludes from the definition of "biomass conversion" the
controlled combustion of pulp or paper materials, sewage or
industrial sludge, medical, hazardous, or radioactive wastes.
FISCAL EFFECT : Unknown.
COMMENTS :
Need for the bill : According to the author, "SB 498 will help to
facilitate the development of cleaner and more efficient
technologies in California for converting biomass materials into
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renewable energy by expanding the definition of biomass to
include non-combustion conversion technology."
Biomass in California : According to the State Energy
Commission, at present biomass in California is converted to
electric power though one of two processes based on the
characteristics of the biomass. Two-thirds of California's
biomass power capacity is generated by the direct combustion of
solid biomass in boiler-steam turbine plants, ranging in size
from about 5 to 50 megawatts. The remainder is generated by the
combustion of landfill gas and biogas in a range of power
generating equipment, including boiler-steam turbine systems,
reciprocating engines, and gas turbines.
According to the California Biomass Collaborative, there are 27
woody waste and agricultural biomass conversion facilities in
commercial operation in California. These plants are located
throughout the state, often near timber harvest or agricultural
operations. Most of these facilities were built in the 1980s or
early 1990s, after the federal Public Utilities Regulatory
Policy Act of 1978 required utilities to purchase power provided
by qualifying independent power producers at relatively
attractive rates. However, California's regulatory policies
were restructured in 1996, decreasing the financial incentives
available for biomass conversion facilities.
Biomass facilities are generally subject to local air quality
district regulations and permit requirements. For new or
modified facilities, "New Source Review" (NSR) regulations may
require the use of "best available control technology" (BACT)
for particulate matter, sulphur oxides, nitrogen oxides, or
other emissions. NSR may also require the use of emission
reduction credits (ERCs). In addition, federal rules that
govern the permitting of new or modified facilities may apply.
The primary greenhouse gas emitted from biomass conversion
plants is carbon dioxide, which is not controlled.
Pending biomass projects : The County of Los Angles (a sponsor
of the proposed legislation) has undertaken a Conversion
Technology Demonstration Project and has approved three
conversion technology demonstration projects designed to address
the dwindling landfill space in Los Angeles. To date, none of
the proposed projects would rely on a biomass conversion
technology included in this bill.
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The purpose of this measure is to broaden the definition of
biomass conversion that would allow cities and counties to send
increased material to a biomass facility and receive a credit
against the 50% diversion requirement applicable to local
agencies under the Integrated Waste Management Act.
The broadened definition of biomass may allow applicants to
avoid solid waste incineration rules. Much of the materials
allowed to be burned under the biomass permits are classified as
solid waste under California solid waste laws. Yet, the project
is able to avoid solid waste incinerator facility siting laws by
calling itself a renewable energy "biomass" project.
The bill as drafted provides no definition of conversion
technologies. Expanded definition of biomass "conversion" does
not require net environmental benefits from such technologies.
While the information supplied to the committee by the sponsors
suggests that conversion technologies are environmentally
beneficial and preferable to incineration or controlled
combustion for waste, solid waste, or wood products, nothing in
this measure suggests that a test should be applied to these
technologies prior to endorsing their widespread use.
Biomass projects problems in California : Some biomass
facilities in California have a history of environmental issues,
including Clean Air Act violations. In 2011, the U.S.
Environmental Protection Agency and the San Joaquin Valley Air
Pollution Control District lodged consent decrees against two
biomass power plants in Chowchilla and El Nido, California. The
two companies have agreed to pay a combined civil penalty of
$835,000 to resolve alleged violations of the federal Clean Air
Act and District rules, including excess emissions of air
pollutants such as nitrogen oxides, a precursor to ozone, and
fine particulates.
CalRecycle currently lacks clear enforcement authority to
determine if biomass facilities are processing non-authorized
waste material. The reduced regulatory oversight for biomass
facilities is based in part on the limited organic feed stock
that is processed by the facilities. The current law lacks
specific authority for CalRecycle or the local enforcement
agency to inspect and ensure that the feed stock is, in fact,
the limited material. The author may wish to include authority
for inspection of these feed stocks to ensure that unauthorized
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municipal solid waste is not stored or used at these facilities.
Arguments in Suppor t:
The California State Association of Counties, as co-sponsor of
the AB 498 stated, "Conversion Technologies (CTs) are
technologies capable of converting biomass materials into
renewable energy. CTs are processes that have been used for
over 25 years as a valuable tool for diverting waste from
landfills by converting it into domestic renewable energy. CTs
provide an opportunity to reduce our dependence on landfill
disposal while reducing air emissions at the same time. Current
law defines "biomass conversion" as the controlled combustion of
organic materials--such as wood, lawn and garden clippings,
agricultural waste, leaves, tree pruning, as well as
non-recyclable paper--when separated from other solid waste and
used for producing electricity or heat. This bill would simply
include CTs to the biomass definition, allowing for cleaner and
more efficient technologies to be used in the biomass process,
and placing both combustion and non-combustion facilities on the
same playing field."
Arguments in Opposition :
A coalition of environmental and community groups argue or state
in opposition that "Combustion or 'conversion' for energy
production has been shown to be responsible for air, water, and
land pollution. These pollutants, including smog, hazardous
ash, acid rain, and persistent bioaccumulative toxics, threaten
human health and the environment. Even so, biomass plants
currently are not required to go through a permit process at
CalRecycle that would assess the impacts of burning organics,
such as commercial wood waste, tree trimmings and yard waste for
energy production."
Prior legislation :
SB 804 (Lara) 2013: Would have provided expanded authority for
biomass and composting facilities. SB 804 was approved by the
Environmental Safety and Toxic Materials Committee and the full
legislature but was subsequently vetoed by Governor Brown. The
Governor's veto message raised two issues with the bill:
"While I agree with the intent of the bill, last minute
amendments made the bill overly complicated and unworkable.
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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."
Double referral . This bill was referred to the Natural
Resources Committee as well as the Environmental Safety and
Toxic Materials Committee. The Natural Resources Committee has
scheduled this bill for a June 16, 2014 hearing.
REGISTERED SUPPORT / OPPOSITION :
Support :
California State Association of Counties (co-sponsor)
County of Los Angeles (co-sponsor)
City of Torrance
County of Santa Clara
Los Angeles County Solid Waste Management Committee/Integrated
Waste Management Task Force
Rural County Representatives of California
Opposition :
Asamblea de Poder Popular de Gonzales
California Environmental Justice Alliance
California Safe Schools
Center for Biological Diversity
Center on Race, Poverty & 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 : Bob Fredenburg / E.S. & T.M. / (916)
319-3965
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