Existing law generally regulates fertilizer materials and provides for the licensure of individuals who manufacture or distribute fertilizing materials. Existing law defines various terms for the purpose of carrying out these provisions, including, but not limited to, auxiliary soil and plant substances. Existing law lists specific chemical or biological substances or mixtures of substances or devices included within the definition of auxiliary soil and plant substances and excludes commercial fertilizers, agricultural minerals, pesticides, soil amendments, and manures from the definition.

This bill would include biochar, as defined, as a product intended to be used for influencing soils, plant growth, or crop or plant quality for the purposes of the definition of auxiliary soil and plant substances.

Existing law generally regulates fertilizer materials and provides for the licensure of individuals who manufacture or distribute fertilizing materials. Existing law defines various terms for the purpose of carrying out these provisions, including, but not limited to, auxiliary soil and plant substances. Existing law lists specific chemical or biological substances or mixtures of substances or devices included within the definition of auxiliary soil and plant substances and excludes commercial fertilizers, agricultural minerals, pesticides, soil amendments, and manures from the definition.

This bill would include biochar, as defined, as a product intended to be used for influencing soils, plant growth, or crop or plant quality for the purposes of the definition of auxiliary soil and plant substances.

Existing law generally regulates fertilizer materials and provides for the licensure of individuals who manufacture or distribute fertilizing materials. Existing law defines various terms for the purpose of carrying out these provisions, including, but not limited to, auxiliary soil and plant substances. Existing law lists specific chemical or biological substances or mixtures of substances or devices included within the definition of auxiliary soil and plant substances and excludes commercial fertilizers, agricultural minerals, pesticides, soil amendments, and manures from the definition.

This bill would include biochar, as defined, as a product intended to be used for influencing soils, plant growth, or crop or plant quality for the purposes of the definition of auxiliary soil and plant substances. The bill would remove soil amendments as a substance excluded from the definition of auxiliary soil and plant substances.

Existing law generally regulates fertilizer materials and provides for the licensure of individuals who manufacture or distribute fertilizing materials. Existing law defines various terms for the purpose of carrying out these provisions, including, but not limited to, auxiliary soil and plant substances. Existing law lists specific chemical or biological substances or mixtures of substances or devices included within the definition of auxiliary soil and plant substances and excludes commercial fertilizers, agricultural minerals, pesticides, soil amendments, and manures from the definition.

This bill would include biochar, as defined, as a product intended to be used for influencing soils, plant growth, or crop or plant quality for the purposes of the definition of auxiliary soil and plant substances. The bill would remove soil amendments as a substance excluded from the definition of auxiliary soil and plant substances.

 THIRD READING  

Bill No: AB 2511

Author:

:

Vote:

SENATE AGRICULTURE COMMITTEE: 5-0, 6/21/16

AYES: Galgiani, Cannella, Berryhill, Pan, Wolk

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16

AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

ASSEMBLY FLOOR: 80-0, 5/31/16 - See last page for vote

SUBJECT:

SOURCE: California Department of Food and Agriculture

DIGEST: This bill clarifies that “biochar” is a soil amendment that is included in the definition of “auxiliary soil and plant substance” and, therefore, subject to licensing and labeling laws, and defines “biochar” to mean materials derived from thermochemical conversion of biomass in an oxygen-limited environment containing at least 60 percent carbon.

ANALYSIS:

Existing law:

1. Requires the California Department of Food and Agriculture (CDFA) to enforce laws and adopt regulations relating to the manufacture, labeling, and distribution of fertilizing materials.
2. Defines “fertilizing material” to mean any commercial fertilizer, agricultural mineral, auxiliary soil and plant substance, organic input material, or packaged soil amendment (but not bulk soil amendments).
3. Defines “packaged soil amendment” to mean any substance that promotes plant growth by conditioning soils solely through physical means, such as hay, straw, peat moss, sand, etc. Given this definition, biochar is considered a soil amendment.
4. Defines “auxiliary soil and plant substance” to mean any chemical or biological substances or devices applied to soil, plants, or seeds for soil corrective purposes; or that is intended to improve germination, growth, yield, product quality, etc.; or that is intended to produce any change in soil. It does not include commercial fertilizers, agricultural minerals, pesticides, soil amendments, or manures. It does include, for example, bacteria, lignin, and soil binding and wetting agents.
5. Requires every manufacturer or distributor of fertilizing materials to obtain a license from CDFA.
6. Requires fertilizing material label registration for each differing product, such as changes in the guaranteed analysis or derivation statement.
7. Exempts bulk soil amendments (110 pounds or greater) from both licensing and labeling requirements, unless it is an organic input material that will be used in organic crop and food production.
8. Establishes licensing and registration fees.
9. Authorizes CDFA to cancel an existing registration or refuse to register any fertilizer material which the secretary determines to be detrimental or harmful to plants, animals, public safety, or the environment or any product that contains false or misleading claims.
10. Authorizes CDFA to collect an assessment fee not to exceed $0.002 per dollar of sales of all fertilizing materials.
11. Authorizes CDFA to inspect, sample, and analyze fertilizing materials and conduct investigations concerning the use, sale, adulteration, or misbranding of any substance.

This bill:

1. Clarifies that “biochar” is a soil amendment that is included in the definition of “auxiliary soil and plant substance.”
2. Defines “biochar” to mean materials derived from thermochemical conversion of biomass in an oxygen-limited environment containing at least 60 percent carbon.

Background

The Fertilizing Materials Inspection Program within CDFA was created to ensure that fertilizer materials are safe and meet the quality and quantity guarantees as stated on the product’s label. This program is responsible for licensing manufacturers, reviewing and registering product labels, conducting inspections, and providing research and education regarding the safe use and handling of fertilizing materials.

Comments

Need for this bill. Biochar is growing in popularity as its beneficial impact on soil is increasingly recognized. Benefits include improving soil fertility, increasing soil water retention, and reducing nitrate leaching. Currently, biochar is an unregulated product and, as such, presents the potential for inferior, mislabeled, or adulterated products to be sold in the marketplace, thus jeopardizing the integrity of the biochar industry. This bill authorizes CDFA to regulate biochar as a fertilizing material to ensure that biochar manufacturers are licensed and products are registered, appropriately labeled, and free of adulterants. Furthermore, given the relationship between biochar and enhanced soil quality, biochar could play a role in the governor’s proposed Healthy Soils Initiative.

Healthy Soils Initiative. In his 2015-16 Budget proposal, Governor Brown included the new “Healthy Soils Initiative” to increase carbon in soil to improve soil health, agricultural productivity, soil water-holding capacity, and decrease sediment erosion. Governor Brown directed CDFA to coordinate with other key agencies to work on several new initiatives. CDFA has since developed five action measures: protect and restore soil carbon; identify funding opportunities, including market development; provide research, education and technical support; increase governmental efficiencies to enhance soil health on public and private lands; and ensure interagency coordination and collaboration.

The Governor’s 2016-17 Budget proposal would appropriate $20 million from the Greenhouse Gas Reduction Fund to CDFA for the development and administration of the new Healthy Soils Program, which will be designed to reduce greenhouse gas (GHG) emissions and increase carbon sequestration through better soil management practices. In collaboration with California Department of Resources Recycling and Recovery, California Department of Conservation, and California Air Resources Board, CDFA will provide funds as an incentive to farmers to implement climate-smart management practices as well as for demonstration projects that have quantifiable GHG reductions. Collaboration across state agencies will provide the expertise needed to quantify GHG reduction methodologies and ensure that the program complements existing land conservation activities. To date, this Budget proposal has not been approved by the Legislature.

Soil amendment. Soil amendments are products that only physically affect the soil and plant growing conditions. Examples include hay, straw, peat moss, and sand. Although there is no real nutritive value, these products amend the soil to create better growing conditions, such as better water retention or drainage. When sold or distributed in bulk or non-packaged allotments of 110 pounds or greater, soil amendments are not included in the definition of a fertilizing material and are, therefore, exempt from licensing and labeling requirements. This bill recognizes biochar as a newly regulated soil amendment that must comply with licensing and labeling laws and regulations while maintaining the bulk exemption for all other soil amendments.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee, CDFA would incur increased annual costs of unknown magnitude, likely in the low hundreds of thousands of dollars, for additional inspections and reviews pursuant to this bill. In the longer run, revenue generated by product registration fees, license fees, and mill assessments would mitigate the impact over the long term.

SUPPORT: (Verified 8/12/16)

California Department of Food and Agriculture (source)

California Compost Coalition

California Farm Bureau Federation

Los Angeles County Solid Waste Management Committee/Integrated Waste Management Task Force

Sonoma Biochar Initiative

Sonoma County Water Agency

Sonoma Ecology Center

OPPOSITION: (Verified 8/12/16)

None received

ARGUMENTS IN SUPPORT: According to the author, “AB 2511 seeks to enhance the use of biochar. Biochar is a specialized form of charcoal that has many agricultural and environmental benefits when it is incorporated into the soil. This bill lists biochar as a beneficial soil additive in the Food and Agricultural Code and establishes a minimum standard to qualify as biochar. This ensures that the product meets specific quality requirements. Further, AB 2511 authorizes the California Department of Food and Agriculture to have oversight of this new industry. Under existing law, biochar is not regulated by the state. Because the biochar market is relatively new, lack of oversight can have a chilling effect on the widespread use of the product. The regulatory authority provided in AB 2511 is needed to ensure that the product develops in a fair and equitable marketplace, and protects consumers as well.”

ASSEMBLY FLOOR: 80-0, 5/31/16

AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon

Prepared by:

8/15/16 20:30:00

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 2511 (Levine) - Fertilizing materials: auxiliary soil and plant substances: biochar

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 2511 would (1) clarify that “biochar” is a soil amendment that is included in the definition of “auxiliary soil and plant substance,” thereby subjecting it to licensing and labeling laws, and (2) define “biochar” to mean materials derived from thermochemical conversion of biomass in an oxygen-limited environment containing at least 60 percent carbon.

Fiscal Impact:

The California Department of Food and Agriculture (CDFA) would incur increased annual costs of unknown magnitude, likely in the low hundreds of thousands of dollars, for additional inspections and reviews pursuant to this bill. In the longer run, revenue generated by product registration fees, license fees, and mill assessments would mitigate the impact over the long term.

Background:

The Fertilizing Materials Inspection Program within CDFA was created to ensure that fertilizer materials are safe and meet the quality and quantity guarantees as stated on the product’s label. This Program is responsible for licensing manufacturers, reviewing and registering product labels, conducting inspections, and providing research and education regarding the safe use and handling of fertilizing materials.

Biochar is a type of charcoal created by heating woody waste materials or biomass in a process called pyrolysis. When combined with other materials, biochar has a number of agricultural benefits, including helping with water retention and promoting the growth of microbes. Biochar is also thought to be environmentally beneficial by reducing fertilizer runoff and leeching; and the process that creates biochar leaves behind pure carbon rather than having that carbon enter the atmosphere.

Proposed Law:

This bill would (1) clarify that “biochar” is a soil amendment that is included in the definition of “auxiliary soil and plant substance,” and (2) define “biochar” to mean materials derived from thermochemical conversion of biomass in an oxygen-limited environment containing at least 60 percent carbon.

Related Legislation:

• AB 1811 (Dodd) of 2016. Would authorize CDFA to develop a new schedule for organic input material label registrations; authorize provisional label registrations, as specified; prioritize inspections for high-risk products and manufacturers; and authorize CDFA to determine whether a fertilizer material is mislabeled, as specified. This bill is also up for hearing in this Committee on August 1^st, 2016.
• SB 1350 (Wolk, 2016). Among other provisions, would require CDFA to establish and oversee a Healthy Soils Program that would provide incentives to farmers whose management practices contribute to healthful soils and result in net long-term on-farm GHG benefits; would allocate $20 million from the Greenhouse Gas Reduction Fund to CDFA to support the Healthy Soils Program. The bill was held under submission on the Suspense File of this Committee.

Staff Comments:

Soil amendments are products that only physically affect the soil and plant growing conditions. Examples include hay, straw, peat moss, and sand. Although they lack nutritive value, these products amend the soil to create better growing conditions, including better water retention or drainage. When sold or distributed in bulk or non-packaged allotments of 110 pounds or greater, soil amendments are not included in the definition of a fertilizing material and consequently are exempted from licensing and labeling requirements. This bill would recognize biochar as a newly regulated soil amendment that must comply with licensing and labeling laws and regulations while maintaining the bulk exemption for all other soil amendments.

CDFA cannot determine the number of biochar products that will reach the market; however, the Program will incur expenses to review and register the products. Additional expenses include field monitoring and sampling in the marketplace. CDFA indicates that laboratory costs for testing for contaminants are roughly $655 per sample. Additional expenses would be incurred staff to develop biochar standards and regulations to ensure the product is safe, effective, and meets the quality guarantees of the manufacturer. Revenue generated by product registration fees, license fees, and mill assessments should minimize the impact over the long term.

CDFA’s fees for label review are $50 every two years for products intended for the conventional market and $500 every two years for products intended for the organic farming market. Firms marketing as Organic are already required to register products (including biochar as a bulk soil amendment), and should not face additional costs.

-- END --

SENATE COMMITTEE ON AGRICULTURE

Senator Cathleen Galgiani, Chair

2015 - 2016 Regular

Bill No: AB 2511 Hearing Date: 6/21/16

Subject: Fertilizing materials: auxiliary soil and plant substances: biochar

SUMMARY

:

This bill would clarify that “biochar” is a soil amendment that is included in the definition of “auxiliary soil and plant substance” and, therefore, subject to licensing and labeling laws and would define “biochar” to mean materials derived from thermochemical conversion of biomass in an oxygen-limited environment containing at least 60 percent carbon.

BACKGROUND AND EXISTING LAW

:

The Fertilizing Materials Inspection Program within CDFA was created to ensure that fertilizer materials are safe and meet the quality and quantity guarantees as stated on the product’s label. This program is responsible for licensing manufacturers, reviewing and registering product labels, conducting inspections, and providing research and education regarding the safe use and handling of fertilizing materials.

Existing law:

1. Requires CDFA to enforce laws and adopt regulations relating to the manufacture, labeling, and distribution of fertilizing materials.
2. Defines “fertilizing material” to mean any commercial fertilizer, agricultural mineral, auxiliary soil and plant substance, organic input material, or packaged soil amendment (but not bulk soil amendments).
3. Defines “packaged soil amendment” to mean any substance that promotes plant growth by conditioning soils solely through physical means, such as hay, straw, peat moss, sand, etc. Given this definition, biochar is considered a soil amendment.
4. Defines “auxiliary soil and plant substance” to mean any chemical or biological substances or devices applied to soil, plants, or seeds for soil corrective purposes; or that is intended to improve germination, growth, yield, product quality, etc.; or that is intended to produce any change in soil. It does not include commercial fertilizers, agricultural minerals, pesticides, soil amendments, or manures. It does include, for example, bacteria, lignin, and soil binding and wetting agents.
5. Requires every manufacturer or distributor of fertilizing materials to obtain a license from CDFA.
6. Requires fertilizing material label registration for each differing product, such as changes in the guaranteed analysis or derivation statement.
7. Exempts bulk soil amendments (110 pounds or greater) from both licensing and labeling requirements, unless it is an organic input material that will be used in organic crop and food production.
8. Establishes licensing and registration fees.
9. Authorizes CDFA to cancel an existing registration or refuse to register any fertilizer material which the secretary determines to be detrimental or harmful to plants, animals, public safety, or the environment or any product that contains false or misleading claims.
10. Authorizes CDFA to collect an assessment fee not to exceed $0.002 per dollar of sales of all fertilizing materials.
11. Authorizes CDFA to inspect, sample, and analyze fertilizing materials and conduct investigations concerning the use, sale, adulteration, or misbranding of any substance.

PROPOSED LAW

:

This bill:

1. Clarifies that “biochar” is a soil amendment that is included in the definition of “auxiliary soil and plant substance.”
2. Defines “biochar” to mean materials derived from thermochemical conversion of biomass in an oxygen-limited environment containing at least 60 percent carbon.

ARGUMENTS IN SUPPORT:

According to the author, “AB 2511 seeks to enhance the use of biochar. Biochar is a specialized form of charcoal that has many agricultural and environmental benefits when it is incorporated into the soil. This bill lists biochar as a beneficial soil additive in the Food and Agricultural Code and establishes a minimum standard to qualify as biochar. This ensures that the product meets specific quality requirements. Further, AB 2511 authorizes the California Department of Food and Agriculture to have oversight of this new industry. Under existing law, biochar is not regulated by the state. Because the biochar market is relatively new, lack of oversight can have a chilling effect on the widespread use of the product. The regulatory authority provided in AB 2511 is needed to ensure that the product develops in a fair and equitable marketplace, and protects consumers as well.”

COMMENTS

:

Need for this bill. Biochar is growing in popularity as its beneficial impact on soil is increasingly recognized. Benefits include improving soil fertility, increasing soil water retention, and reducing nitrate leaching. Currently, biochar is an unregulated product and, as such, presents the potential for inferior, mislabeled, or adulterated products to be sold in the marketplace, thus jeopardizing the integrity of the biochar industry. This bill would authorize CDFA to regulate biochar as a fertilizing material to ensure that biochar manufacturers are licensed and products are registered, appropriately labeled, and free of adulterants. Furthermore, given the relationship between biochar and enhanced soil quality, biochar could play a role in the governor’s proposed Healthy Soils Initiative.

Healthy Soils Initiative. In his 2015-16 budget proposal, Governor Brown included the new “Healthy Soils Initiative” to increase carbon in soil to improve soil health, agricultural productivity, soil water-holding capacity, and decrease sediment erosion. Governor Brown directed CDFA to coordinate with other key agencies to work on several new initiatives. CDFA has since developed five action measures: protect and restore soil carbon; identify funding opportunities, including market development; provide research, education and technical support; increase governmental efficiencies to enhance soil health on public and private lands; and ensure interagency coordination and collaboration.

The governor’s 2016-17 budget proposal would appropriate $20 million from the Greenhouse Gas Reduction Fund to CDFA for the development and administration of the new Healthy Soils Program, which will be designed to reduce greenhouse gas (GHG) emissions and increase carbon sequestration through better soil management practices. In collaboration with California Department of Resources Recycling and Recovery, California Department of Conservation, and California Air Resources Board, CDFA will provide funds as an incentive to farmers to implement climate-smart management practices as well as for demonstration projects that have quantifiable GHG reductions. Collaboration across state agencies will provide the expertise needed to quantify GHG reduction methodologies and ensure that the program complements existing land conservation activities.

Soil amendment. Soil amendments are products that only physically affect the soil and plant growing conditions. Examples include hay, straw, peat moss, and sand. Although there is no real nutritive value, these products amend the soil to create better growing conditions, such as better water retention or drainage. When sold or distributed in bulk or non-packaged allotments of 110 pounds or greater, soil amendments are not included in the definition of a fertilizing material and are, therefore, exempt from licensing and labeling requirements. This bill would recognize biochar as a newly regulated soil amendment that must comply with licensing and labeling laws and regulations while maintaining the bulk exemption for all other soil amendments.

RELATED LEGISLATION

:

AB 1811 (Dodd) of 2016. Would authorize CDFA to develop a new schedule for organic input material label registrations; authorize provisional label registrations, as specified; prioritize inspections for high-risk products and manufacturers; and authorize CDFA to determine whether a fertilizer material is mislabeled, as specified. Currently in the Committee on Agriculture.

SB 1350 (Wolk) of 2016. Among other provisions, would require CDFA to establish and oversee a Healthy Soils Program that would provide incentives to farmers whose management practices contribute to healthful soils and result in net long-term on-farm GHG benefits; would allocate $20 million from the Greenhouse Gas Reduction Fund to CDFA to support the Healthy Soils Program. This bill was held in the Senate Appropriations Committee under submission.

AB 856 (Caballero), Chapter 257, Statutes of 2009. Establishes the organic input material manufacturers’ licensure program, increases fees and penalties, and makes other various changes regarding fertilizer materials, inspections, and labeling.

PRIOR ACTIONS

:

SUPPORT

:

California Department of Food and Agriculture (Sponsor)

California Compost Coalition

California Farm Bureau Federation

Los Angeles County Solid Waste Management Committee/

Integrated Waste Management Task Force

Sonoma Biochar Initiative

Sonoma County Water Agency

Sonoma Ecology Center

OPPOSITION

:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2511

Author:(Levine)

As Amended Ver:March 28, 2016

Majority vote

SUMMARY: This bill defines biochar to mean "materials derived from thermochemical conversion of biomass in an oxygen-limited environment containing at least 60% carbon"; adds "biochar" to the list of products intended to be used for influencing soils, plant growth, or crop or plant quality for the purpose of the definition of auxiliary soil and plant substances (ASPS); and, removes biochar as a soil amendment within ASPS.

EXISTING LAW: Regulates fertilizer materials and provides for the licensure of individuals who manufacture or distribute fertilizing materials; defines various terms for the purpose of carrying out these provisions, including, but not limited to, auxiliary soil and plant substances; and, lists specific chemical or biological substances or mixtures of substances or devices included within the definition of auxiliary soil and plant substances and excludes commercial fertilizers, agricultural minerals, pesticides, soil amendments, and manures from the definition. Bulk material is defined as fertilizer material in non-packaged form containing more than 110 pounds.

FISCAL EFFECT: According to the Assembly Appropriations Committee, the California Department of Food and Agriculture (CDFA) is expected to incur increased costs for the additional inspections and reviews pursuant to this bill. If two inspectors and two environmental scientists were needed for routine sample inspections, ongoing costs would be in the range of $430,000 a year. The fiscal costs of additional inspections will be partially offset by fees and assessments of biochar manufacturers.

COMMENTS: Biochar is a product that can benefit soil health while providing greenhouse gas (GHG) reductions, soil productivity, and carbon sequestration. Additionally, it may improve a soil's water retention ability. This product is in the early stages of being utilized on agricultural soils; current products are not inspected, creating a situation where inferior products could jeopardize the future use of this potential beneficial soil product. The author states that this bill will resolve these problems.

Soil amendments can be packaged goods that must be labeled or bulk material that does not carry any nutrient claims. They are used for the purpose of changing the soil structure or texture, including among other materials, peat moss, leaf mold, sand, limestone, manure, hay, or other material used solely due to its physical properties. Packaged soil amendment manufacturers are required to register with CDFA Fertilizer Materials Inspection Program (FMIP).

According to the supporters of AB 2511, since the passing of the Global Warming Solutions Act of 2006 (AB 32 (Núñez), Chapter 488), the agricultural community has been exploring ways to voluntarily reduce GHG. The use of biochar could be a potential source of GHG reductions funded by the Healthy Soils Initiative which has a proposed $20 million allocated to CDFA by the Governor's budget.

The intent of this bill is to not include bulk soil amendments under FMIP, by excluding biochar as a soil amendment under ASPS exception list, this objective is accomplished.

RELATED LEGISLATION: SB 1350 (Wolk) of the current legislative session, among other things, would require CDFA to establish and oversee a Healthy Soils Program to provide incentives, including loans, grants, research, and technical assistance, or educational materials and outreach, to farmers whose management practices contribute to healthful soils and result in net long-term on-farm GHG benefits.

Analysis Prepared by: Jim Collin / AGRI. / (916) 319-2084 FN: 0003148

Date of Hearing: April 13, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 2511

Author:(Levine) – As Amended Ver:March 28, 2016

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill:

1. Defines “biochar” as a material derived from thermochemical conversion of biomass in an oxygen-limited environment containing at least 60 percent carbon.
2. Adds biochar to the definition of “auxiliary and soil plant substances” by including it in the list of products intended to be used for influencing soils, plant growth, or crop or plant quality.
3. Specifies that soil amendments, except biochar, are excluded from the definition of auxiliary and soil plant substances.

FISCAL EFFECT:

1. The California Department of Food and Agriculture (CDFA) is expected to incur increased costs for the additional inspections and reviews pursuant to this bill. If two inspectors and two environmental scientists were needed for routine sample inspections, ongoing costs would be in the range of $430,000 a year (Food and Agriculture Fund).
2. The fiscal costs of additional inspections will be partially offset by fees and assessments of biochar manufacturers.

COMMENTS:

1. Purpose: According to the author, AB 2511 will help the environment and the agriculture industry by encouraging the biochar market to expand. The author argues that proper regulatory oversight is needed to ensure that consumers are protected and that there is an equitable marketplace.
2. Background: Biochar is a type of charcoal created by heating woody waste materials or biomass in a process called pyrolysis. When combined with other materials, biochar has a number of agricultural benefits, including helping with water retention and promoting the growth of microbes. Biochar is also thought to be environmentally beneficial by reducing fertilizer runoff and leeching; and the process that creates biochar leaves behind pure carbon rather than having that carbon enter the atmosphere.
3. Cost savings through AB 1811. If enacted, AB 1811 (Dodd), which passed the Assembly Agriculture Committee on March 30, 2016, would reduce the fiscal costs of AB 2511 because no additional inspectors would be needed to inspect biochar. AB 1811 provides CDFA flexibility in how it inspects organic input material, and CDFA staff believes they could use that flexibility to assign existing inspectors for biochar inspections. If AB 1811 becomes law, then CDFA would incur annual costs in the range of $200,000.

Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081

Date of Hearing: March 30, 2016

ASSEMBLY COMMITTEE ON AGRICULTURE

Bill Dodd, Chair

ABPCA Bill Id:AB 2511 (

Author:Levine) – As amended Ver:March 28, 2016

SUBJECT: Fertilizing materials: auxiliary soil and plant substances: biochar.

SUMMARY: This bill defines biochar to mean "materials derived from thermochemical conversion of biomass in an oxygen-limited environment containing at least 60% carbon;" adds "biochar" to the list of products intended to be used for influencing soils, plant growth, or crop or plant quality for the purpose of the definition of auxiliary soil and plant substances (ASPS); and, removes biochar as a soil amendment within ASPS.

EXISTING LAW: Regulates fertilizer materials and provides for the licensure of individuals who manufacture or distribute fertilizing materials; defines various terms for the purpose of carrying out these provisions, including, but not limited to, auxiliary soil and plant substances; and, lists specific chemical or biological substances or mixtures of substances or devices included within the definition of auxiliary soil and plant substances and excludes commercial fertilizers, agricultural minerals, pesticides, soil amendments, and manures from the definition. Bulk material is defined as fertilizer material in non-packaged form containing more than 110 pounds.

FISCAL EFFECT: Unknown.

COMMENTS: Biochar is a product that can benefit soil health while providing greenhouse gas (GHG) reductions, soil productivity, and carbon sequestration. Additionally, it may improve a soil's water retention ability. This product is in the early stages of being utilized on agricultural soils; current products are not inspected, creating a situation where inferior products could jeopardize the future use of this potential beneficial soil product. The author states that AB 2511 will resolve these problems.

Soil amendments can be packaged goods that must be labeled or bulk material that does not carry any nutrient claims. They are used for the purpose of changing the soil structure or texture, including among other materials, peat moss, leaf mold, sand, limestone, manure, hay, or other material used solely due to its physical properties. Packaged soil amendment manufacturers are required to register with the California Department of Food and Agriculture (CDFA) Fertilizer Materials Inspection Program (FMIP).

According to the supporters of AB 2511, since the passing of the Global Warming Solutions Act of 2006 (AB 32), the agricultural community has been exploring ways to voluntarily reduce greenhouse gasses (GHG). The use of biochar could be a potential source of GHG reductions funded by the Healthy Soils Initiative which has a proposed $20 million allocated to CDFA by the Governor's budget.

The intent of this bill is to not include bulk soil amendments under FMIP, by excluding biochar as a soil amendment under ASPS exception list, this objective is accomplished.

RELATED LEGISLATION: SB 1350 (Wolk) of the 2016 legislative session, among other things, would require CDFA to establish and oversee a Healthy Soils Program to provide incentives, including loans, grants, research, and technical assistance, or educational materials and outreach, to farmers whose management practices contribute to healthful soils and result in net long-term on-farm GHG benefits.

REGISTERED SUPPORT / OPPOSITION:

Support

California Farm Bureau Federation

Sonoma Biochar Initiative

Opposition

None on file.

Analysis Prepared by: Jim Collin / AGRI. / (916) 319-2084