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AB-2878 Forest Biomass Waste Utilization Program.(2021-2022)



Current Version: 08/01/22 - Amended Senate

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AB2878:v93#DOCUMENT

Amended  IN  Senate  August 01, 2022
Amended  IN  Senate  June 09, 2022
Amended  IN  Assembly  May 19, 2022
Amended  IN  Assembly  May 02, 2022
Amended  IN  Assembly  April 20, 2022
Amended  IN  Assembly  March 24, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 2878

Introduced by Assembly Member Aguiar-Curry
(Principal coauthor: Assembly Member Mathis)
(Coauthor: Assembly Member Wood)

February 18, 2022

An act to amend Section Sections 38535 and 38561 of the Health and Safety Code, and to add Section 25302.3 to, and to add Article 3.5 (commencing with Section 4139) to Chapter 1 of Part 2 of Division 4 of, and to repeal Section 4140.3 of the Public Resources Code, and to add and repeal Section 399.20.6 of the Public Utilities Code, relating to public resources.


LEGISLATIVE COUNSEL'S DIGEST


AB 2878, as amended, Aguiar-Curry. Forest Biomass Waste Utilization Program.
(1) Existing law establishes in the Natural Resources Agency the Department of Forestry and Fire Protection (CalFire), and requires CalFire to be responsible for, among other things, fire protection and prevention, as provided. Existing law establishes the State Board of Forestry and Fire Protection in CalFire to represent the state’s interest in the acquisition and management of state forests and requires the board to maintain an adequate forest policy. The former Governor, Edmund G. Brown Jr., issued Executive Order No. B-52-18 that, among other things, established a Forest Management Task Force, now known as the Wildfire and Forest Resilience Task Force, involving specified state agencies to create the action plan for wildfire and forest resilience. The executive order also established a Joint Institute for Wood Products Innovation, to be located within the state board.
This bill would establish the Forest Waste Biomass Utilization Program to be administered by the state board’s Joint Institute for Wood Products Innovation to develop an implementation plan to meet the goals and recommendations of of, and the comprehensive framework to align with the state’s wood utilization policies and priorities and focused market strategy of, specified statewide forest management plans and to develop a workforce training program to complement workforce needs associated with the implementation plan. The bill would require the state board, in coordination with the Wildfire and Forest Resilience Task Force, to submit an annual report to the Legislature, beginning January 1, 2024, on the progress made on implementing the implementation plan.
This bill would require the Natural Resources Agency, in furtherance of the program, to facilitate the inclusion integration of recommendations for forest biomass waste utilization in relevant, state climate adaptation plans. The bill would require the Natural Resources Agency, in coordination with the California Environmental Protection Agency and the Wildfire and Forest Resilience Task Force, to prepare and publish, on or before July 1, 2024, and at least once every 5 years thereafter, updates to the California Forest Carbon Plan, as provided.

(2)Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Under existing law, the California Renewables Portfolio Standard Program requires every electrical corporation to file with the commission a standard tariff for electricity purchased from an electric generation facility, as defined. The commission refers to this requirement as the renewable feed-in tariff, which, in part, requires the commission to direct the electrical corporations, collectively, to procure at least 250 megawatts of cumulative rated generating capacity from developers of bioenergy projects that commence operation on or after June 1, 2013.

This bill would require the commission to prepare and submit a report to the Legislature, on or before December 31, 2023, that evaluates innovative bioenergy technologies that utilize forest biomass waste, as specified.

(2) The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission (Energy Commission) and requires the Energy Commission to undertake various actions in furtherance of meeting the state’s clean energy and pollution reduction objectives. Existing law requires the Energy Commission, in consultation with specified state and federal agencies and at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. Existing law requires the Energy Commission, in consultation with specified entities, to adopt a biennial integrated energy policy report containing certain information.
This bill would require the Energy Commission, in furtherance of the Forest Waste Biomass Utilization Program, to prepare and submit a report to the Legislature, on or before December 31, 2023, that evaluates innovative bioenergy technologies that utilize forest biomass waste, as specified. The bill would also require the Energy Commission to include, as part of the 2023 edition of the integrated policy report, and each report adopted biennially thereafter, an assessment of the potential for forest biomass waste energy to provide firm renewable power.
(3) The California Global Warming Solutions Act of 2006 designates the State Air Resources Board (state air board) as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state air board to adopt a statewide greenhouse gas emissions limit, as specified, and to adopt rules and regulations in an open public process to achieve the maximum technologically feasible and cost-effective greenhouse gas emission reductions. The act requires the state air board to develop, on or before December 31, 2020, and every 5 years thereafter, a report that assesses greenhouse gas emission associated with wildfire and forest management activities. The act requires the state air board to prepare, approve, and update at least once every 5 years, beginning on January 1, 2009, a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases under the act.
This bill would require the state air board board, in the report developed on or before December 31, 2025, and every 5 years thereafter, to include, among other things, a methodology to quantify the greenhouse gas and short-lived climate pollutant emissions from wildfire, pile burning, and forest management activities, as specified. The bill would also require the state air board to consider the recommendations from a specified plan relating to forests into results of that report, as applicable, in the next update of the scoping plan.

(4)The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission (Energy Commission). Existing law requires the Energy Commission, in consultation with specified state and federal agencies and at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. Existing law requires the Energy Commission, in consultation with specified entities, to adopt a biennial integrated energy policy report containing certain information.

This bill would require the Energy Commission to include, as part of the 2023 edition of the integrated policy report, and each report adopted biennially thereafter, an assessment of the potential for forest biomass waste energy to provide firm renewable power.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Reducing wildfire severity and restoring healthy and resilient forests requires active forest management, including forest thinning and fuel removal in high fire hazard severity zones.
(b) Senate Bill 901 (Chapter 626 of the Statutes of 2018) calls upon California to significantly increase the amount of forest fuel removal for wildfire mitigation.
(c) The 2020 Forest Stewardship Agreement between California and the United States Forest Service requires forest fuel removal on commits to scaling up vegetation treatment of forests and wildlands to 1,000,000 acres per year. year by 2025.
(d) The “Joint Institute Recommendations to Expand Wood and Biomass Utilization in California” California,” issued by the State Board of Forestry and Fire Protection’s Joint Institute for Wood Products Innovation in November 2020, found that meeting fuel removal requirements would generate tens of millions of tons of dry forest waste annually, and provided recommendations for the beneficial use of forest biomass waste.
(e) Implementing the recommendations of the “Joint Institute Recommendations to Expand Wood and Biomass Utilization in California” will reduce the need for the piling and burning of forest waste, and would instead generate useful wood products, renewable energy, low carbon fuels, biochar and other soil amendments, while reducing wildfire risk.
(f) “California’s Wildfire and Forest Resilience Action Plan” Plan,” issued by the Governor’s Forest Management Task Force in January 2021, requires the Office of Planning and Research, among other state agencies, to develop a comprehensive framework to align the state’s wood utilization policies and priorities, including creating a focused market strategy and a comprehensive set of metrics to evaluate biomass availability, usage, investments, and workforce levels to create a sustainable wood products market in the state. That plan also requires the Governor’s Office of Business and Economic Development to develop a focused market strategy.
(g) According to the “California Forest Carbon Plan: Managing our Forest Landscapes in a Changing Climate” Climate,” issued by the Forest Climate Action Team in 2018 and adopted by the California Environmental Protection Agency, Natural Resources Agency, and Department of Forestry and Fire Protection, converting waste biomass to energy cuts black carbon, emissions of particulate matter, methane, and carbon monoxide by 98 percent, and significantly reduces black carbon and other pollutants, in comparison to controlled burns or wildfire. open-pile burning.
(h) Converting According to “Getting to Neutral: Options for Negative Carbon Emissions in California,” a report prepared by the Lawrence Livermore National Laboratory and released in 2020, converting forest waste to hydrogen, electricity, and other renewable fuels can provide significant carbon negative emissions needed to reach carbon neutrality by 2050. 2045.
(i) Forest biomass waste utilization will create jobs and economic development in many of the poorest regions of the state, increase energy resilience in the communities that are most vulnerable to power disruptions, and help to create a circular economy in California’s forested communities.

SEC. 2.

 Section 38535 of the Health and Safety Code is amended to read:

38535.
 The state board, in consultation with the California Department of Forestry and Fire Protection, shall develop all of the following:
(a) A standardized system for quantifying the direct carbon emissions and decay from fuel reduction activities for purposes of meeting the accounting requirements for Greenhouse Gas Reduction Fund expenditures. This system may include standardized lookup tables by forest stand type, including for oak woodland forests, and harvest or other management prescriptions. The system shall acknowledge that certain expenditures, such as for planning, analysis, modeling, or outreach, will not have a direct greenhouse gas reduction benefit, but will facilitate necessary climate preparedness activities that will have direct greenhouse gas benefits.
(b) In consultation with academic experts, a historic baseline of greenhouse gas emissions from California’s natural fire regime reflecting conditions before modern fire suppression. This shall be completed on or before December 31, 2020. The baseline may be included within the state board’s natural working lands inventory.
(c) On or before December 31, 2020, 2025, and every five years thereafter, a report that assesses greenhouse gas emissions associated with wildfire and forest management activities. The report shall include both of the following:
(1) A methodology to quantify the greenhouse gas and short-lived climate pollutant emissions, including black carbon, from wildfire, pile burning, and forest management activities.
(2) A list of the data needed to use the methodology prepared pursuant to paragraph (1).

SEC. 2.SEC. 3.

 Section 38561 of the Health and Safety Code is amended to read:

38561.
 (a) On or before January 1, 2009, the state board shall prepare and approve a scoping plan, as that term is understood by the state board, for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases by 2020 under this division. The state board shall consult with all state agencies with jurisdiction over sources of greenhouse gases, including the Public Utilities Commission and the State Energy Resources Conservation and Development Commission, on all elements of its plan that pertain to energy-related matters, including, but not limited to, electrical generation, load-based standards or requirements, the provision of reliable and affordable electrical service, petroleum refining, and statewide fuel supplies to ensure the greenhouse gas emissions reduction activities to be adopted and implemented by the state board are complementary, nonduplicative, and can be implemented in an efficient and cost-effective manner.
(b) The plan shall identify and make recommendations on direct emissions reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and nonmonetary incentives for sources and categories of sources that the state board finds are necessary or desirable to facilitate the achievement of the maximum feasible and cost-effective reductions of greenhouse gas emissions by 2020.
(c) In making the determinations required by subdivision (b), the state board shall consider all relevant information pertaining to greenhouse gas emissions reduction programs in other states, localities, and nations, including the northeastern states of the United States, Canada, and the European Union.
(d) The state board shall evaluate the total potential costs and total potential economic and noneconomic benefits of the plan for reducing greenhouse gases to California’s economy, environment, and public health, using the best available economic models, emission estimation techniques, and other scientific methods.
(e) In developing its plan, the state board shall take into account the relative contribution of each source or source category to statewide greenhouse gas emissions, and the potential for adverse effects on small businesses, and shall recommend a de minimis threshold of greenhouse gas emissions below which emissions reduction requirements will not apply.
(f) In developing its plan, the state board shall identify opportunities for emissions reduction measures from all verifiable and enforceable voluntary actions, including, but not limited to, carbon sequestration projects and best management practices.
(g) In developing its plan, the state board shall consider the recommendations from the most recent “California Forest Carbon Plan: Managing our Forest Landscapes in a Changing Climate.” results of the latest report issued pursuant to subdivision (c) of Section 38535, as applicable.
(h) The state board shall conduct a series of public workshops to give interested parties an opportunity to comment on the plan. The state board shall conduct a portion of these workshops in regions of the state that have the most significant exposure to air pollutants, including, but not limited to, communities with minority populations, communities with low-income populations, or both.
(i) The state board shall update its plan for achieving the maximum technologically feasible and cost-effective reductions of greenhouse gas emissions at least once every five years.

SEC. 3.SEC. 4.

 Article 3.5 (commencing with Section 4139) is added to Chapter 1 of Part 2 of Division 4 of the Public Resources Code, to read:
Article  3.5. Forest Biomass Waste Utilization Program

4139.
 For purposes of this article, the following definitions apply:
(a) “California Forest Carbon Plan” means the “California Forest Carbon Plan: Managing our Forest Landscapes in a Changing Climate” issued by the California Environmental Protection Agency, the Natural Resources Agency, and the Department of Forestry and Fire Protection in May 2018.
(b) “Forest Biomass Waste Utilization Plan” means the “Joint Institute Recommendations to Expand Wood and Biomass Utilization in California” report issued by the board’s Joint Institute for Wood Products Innovation in November 2020.
(c) “Forest biomass waste” is forest biomass that is removed for wildfire mitigation, to reduce or mitigate the risk of wildfire, reduce the risks to public safety or infrastructure from falling trees, creation of trees or tree limbs, or create defensible space, or for forest restoration projects.
(d) “Program” means the Forest Biomass Waste Utilization Program established pursuant to Section 4140.
(e) “Wildfire and Forest Resilience Action Plan” means the “California Wildfire and Forest Resilience Action Plan” issued by the Governor’s Forest Management Task Force in January 2021.

4140.
 (a) The Forest Biomass Waste Utilization Program is hereby established in the board’s Joint Institute for Wood Products Innovation. The program shall do all of the following:
(1) Develop an implementation plan, in coordination with the Wildfire and Forest Resilience Task Force, Office of Planning and Research, Governor’s Office of Business and Economic Development, Department of Toxic Substances Control, Department of Conservation, State Energy Resources Conservation and Development Commission, and Public Utilities Commission, to meet the goals and recommendations of the Forest Biomass Waste Utilization Plan Plan, and the comprehensive framework to align the state’s wood utilization strategy policies and priorities and the focused market framework strategy required by the Wildfire and Forest Resilience Action Plan. The implementation plan shall do both of the following:
(A) Identify, with particular emphasis on the development of new forest biomass waste utilization projects on developed property that is located near forested land that sources forest biomass waste, funding needs, gaps in research and demonstration, necessary regulatory changes, and other needs.
(B) Adopt best practices for biomass feedstock aggregation that are consistent with the recommendations of the Office of Planning and Research.
(2) (A) In collaboration with governmental, nonprofit, and for-profit entities that have expertise in workforce development, including, but not limited to, the California Community College system and the California Workforce Development Board, develop a workforce training program that will complement the workforce needs associated with implementation of the biomass utilization program.
(B) The workforce training program developed pursuant to subparagraph (A) shall include recommendations that address barriers that impact the hiring of new workers, including, but not limited to, high insurance premiums associated with newly trained drivers.
(b) Beginning January 1, 2024, and on or before every January 1 thereafter, the board, in coordination with the Wildfire and Forest Resilience Task Force, shall prepare and submit an annual report to the Legislature on the progress made on implementing the implementation plan developed pursuant to subparagraph (1) of subdivision (a).
(c) A report to be submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code.

4140.1.
 In furtherance of the program, the Natural Resources Agency shall do both of the following:
(a)Facilitate the inclusion shall facilitate the integration of recommendations for forest biomass waste utilization in relevant, state climate adaptation plans.

(b)In coordination with the California Environmental Protection Agency and the Wildfire and Forest Resilience Task Force, prepare and publish an update on or before July 1, 2024, and at least once every five years thereafter, of the California Forest Carbon Plan. The update to the California Forest Carbon Plan shall include an inventory of black carbon and other climate pollutants emitted by wildfires, controlled burns, and pile and burn of forest waste to further the goals of Section 39730.5 of the Health and Safety Code.

4140.2.
 In furtherance of the program, the State Energy Resources Conservation and Development Commission shall, in coordination with the department, Natural Resources Agency, and Department of Conservation, consider funding qualifying projects pursuant to the Clean Transportation Program (Article 2 (commencing with Section 44272) of Chapter 8.9 or Part 5 of Division 26 of the Health and Safety Code) that use forest biomass waste for advanced biofuel technology development, including, but not limited to, projects that use noncombustion conversion technologies for electrical vehicle charging or hydrogen vehicle fueling.

4140.3.
 (a) In furtherance of the program, the State Energy Resources Conservation and Development Commission shall, in coordination with the Natural Resources Agency and the Department of Conservation, prepare and submit a report to the Legislature, on or before December 31, 2023, that evaluates innovative bioenergy technologies that utilize forest biomass waste. The report shall present recommendations, where appropriate, for opportunities to maximize environmental performance, grid reliability benefits, and value to electricity ratepayers. The report shall assess the potential to facilitate the use of forest biomass waste produced within fire-threat areas, as identified by the Public Utilities Commission, to support the integration of innovative biomass power for the purpose of supporting rural microgrids, or providing other grid support, or both, including an assessment of any technological or feasible challenges, including, but not limited to, challenges associated with reliability and fueling concerns. The report may include a review of, and recommendations for, alternative programming or financing considerations.
(b) (1) A report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2027.

SEC. 4.SEC. 5.

 Section 25302.3 is added to the Public Resources Code, to read:

25302.3.
 (a) As part of the 2023 edition of the integrated energy policy report, and as part of each integrated energy policy report adopted biennially thereafter, the commission shall include an assessment of the potential for forest biomass waste energy to provide firm renewable power.
(b) For the purposes of this section, “forest biomass waste” means the same as defined in Section 4139 of the Public Resources Code.

SEC. 5.Section 399.20.6 is added to the Public Utilities Code, to read:
399.20.6.

(a)In furtherance of the Forest Biomass Waste Utilization Program established pursuant to Article 3.5 (commencing with Section 4139) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, the commission shall, in coordination with the Natural Resources Agency and the Department of Conservation, prepare and submit a report to the Legislature, on or before December 31, 2023, that evaluates innovative bioenergy technologies that utilize forest biomass waste. The report shall review existing tariff programs and present recommendations, where appropriate, of suggested revisions to existing tariff programs to maximize environmental performance, grid reliability benefits, and value to ratepayers. The report shall assess the potential to facilitate the use of forest biomass waste produced within fire-threat areas, as identified by the commission, to support the integration of innovative biomass power for the purpose of supporting rural microgrids, or providing other grid support, or both. The report may include a review of, and recommendations for, alternative programming or financing considerations.

(b)(1)A report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.

(2)Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2027.