BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 498
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          SENATE THIRD READING
          SB 498 (Lara)
          As Amended  June 26, 2014
          Majority vote 

           SENATE VOTE  :34-0  
           
           NATURAL RESOURCES   9-0         ENVIRONMENTAL SAFETY           
          6-0                 
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Dahle, Bigelow,  |Ayes:|Alejo, Dahle, Bloom,      |
          |     |Garcia, Muratsuchi,       |     |Donnelly, Gomez, Ting     |
          |     |Patterson, Skinner,       |     |                          |
          |     |Stone, Williams           |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      17-0                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Gatto, Bigelow,           |     |                          |
          |     |Bocanegra, Bradford, Ian  |     |                          |
          |     |Calderon, Campos,         |     |                          |
          |     |Donnelly, Eggman, Gomez,  |     |                          |
          |     |Holden, Jones, Linder,    |     |                          |
          |     |Pan, Quirk,               |     |                          |
          |     |Ridley-Thomas, Wagner,    |     |                          |
          |     |Weber                     |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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).  Specifically,  this bill  :  

          1)Authorizes the use of "non-combustion thermal conversion  
            technologies" for biomass conversion.  

          2)Requires a solid waste facility that sends materials to a  
            biomass conversion facility to ensure that the materials are  
            limited to those authorized by the IWMA and authorizes solid  
            waste local enforcement agencies to inspect solid waste  
            facilities and operations for compliance with this  








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            requirement.  

          3)Beginning April 1, 2016, and annually thereafter, requires the  
            owner or operator of a biomass conversion facility to provide  
            a report to the Department of Resources Recycling and Recovery  
            (CalRecycle) with specified information about the facility,  
            the materials accepted by the facility, and the end user of  
            ash generated by the facility.   

           EXISTING LAW  :

          1)Requires each local jurisdiction to divert 50% 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% 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, requires  
            retail sellers of electricity (investor owned utilities,  
            energy service providers, and community choice aggregators) to  
            achieve specified renewable energy targets: 

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

             b)   Twenty-five percent by December 31, 2016; and,









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             c)   Thirty-three 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 Assembly Appropriations  
          Committee, this bill has minor and absorbable costs to  
          CalRecycle.

           COMMENTS  :  According to the author, this bill will facilitate  
          cleaner and more efficient technologies to develop in California  
          that will convert organic waste to electricity and help the  
          state reach its 75% waste reduction goal.

          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  
          synthesis of products from feedstocks (for example, biodiesel  
          from waste fats, oils, and grease) and is primarily associated  








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          with the transformation of fresh or used vegetable oils, animal  
          fats, greases, tallow, and other suitable feedstocks into liquid  
          fuels or biodiesel.

          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.   

          CalRecycle is tasked with diverting at least 75% 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% of disposal.   
          CalRecycle is also charged with implementing its Strategic  
          Directive 6.1, which calls for reducing organic waste disposal  
          by 50% by 2020.  According to CalRecycle, significant gains in  
          organic waste diversion are necessary to meet the 75% 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.


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


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