Basics

Transformation Diversion Credit

Introduction

For purposes of diversion credit, "transformation" means burning solid waste to produce heat or electricity.  Although solid waste typically includes some organics, operations that exclusively burn organic materials are engaged in "biomass conversion," which is treated differently in terms of diversion rate measurement. Starting in the 2000 report year, jurisdictions may claim credits against their annual disposal tonnage for solid waste sent to transformation facilities.

• Definitions
• Requirements for Jurisdictions Claiming Transformation Diversion Credits
• Transformation Facility Operator Requirements
• California Integrated Waste Management Board Requirements
• Calculating an Annual Diversion Rate Which Includes Transformation
• Legislation, Statutes, and Regulations

Definitions

• "Permitted transformation" means incineration of municipal solid waste at a Board-permitted transformation facility. "Transformation" does not include composting or biomass conversion.
• "Host jurisdiction" is the city, county, or Board-approved regional agency in which the transformation facility is located.
• "Delivering jurisdiction" is the city, county or Board-approved regional agency which is the source of the solid waste burned in a transformation facility.
• "Class I Hazardous Waste Facility" means a facility permitted by the Department of Toxic Substances Control to accept and dispose hazardous waste as defined in California Health and Safety Code section 25141.

Requirements for Jurisdictions Claiming Transformation Disposal Deductions

Jurisdictions claiming the transformation credit must:

• Indicate in their annual report that they will request a transformation diversion credit.
• Either claim transformation or biomass credit.  Per Public Resources Code section 41783.1 (a) (5), there can be no mixture of biomass and transformation claims, nor any type of partial claim for both.
• To the greatest extent feasible, ensure that all recyclable materials are removed from their solid waste before it burns.

• Send the portion of their solid waste claimed as transformation to one of three Board-permitted facilities in California. Waste sent to any other facility cannot be claimed as transformation. These facilities are:

• Commerce Waste to Energy in Commerce.
• Covanta Stanislaus Inc. in unincorporated Stanislaus County.
• Southeast Resource Recovery in Long Beach.

Transformation Facility Operator Requirements

• Survey incoming waste to determine jurisdiction of origin, in accordance with Disposal Reporting System (DRS) regulations.
• Report waste origin information from surveys to the host county in accordance with DRS regulations.
• Maintain compliance with all applicable sections of State law and its operating permit regarding environmental performance.
• Test ash from the facility quarterly, and if that ash is determined to be hazardous, send that ash to a Class 1 hazardous waste facility.

California Integrated Waste Management Board Requirements

The Board is required to determine that the:

• Jurisdiction is implementing and will continue to implement all feasible source reduction, recycling, and composting measures or programs (must be done at a public hearing).
• Transformation facility in question is in compliance with its permits and with State law.

In addition, local assistance staff  can provide assistance to any jurisdiction that wishes to calculate an annual diversion rate which includes transformation diversion credits.

Calculating an Annual Diversion Rate Which Includes Transformation

• DRS tells jurisdictions the tons of solid waste they sent to permitted transformation facilities. Any jurisdiction wishing to claim more transformation diversion credit than the tonnage listed in DRS must file a Report Year Disposal Modification Request, that documents additional transformation tonnage, along with its annual report.
• Jurisdictions can use the Board's Electronic Annual Report (EAR) or online calculator to determine their diversion rate.  They should follow the directions in the online calculator, or contact their local assistance staff representative for assistance.
• Transformation diversion credits can account for up to 10 percent of a jurisdiction's estimated report-year generation. The remaining diversion must come from source reduction, recycling, and/or composting. 
• The online calculator in the Electronic Annual Report will not validate any annual report in which a transformation diversion credit is entered that is greater than 10 percent of estimated report-year generation.

Legislation, Statutes, and Regulations

Legislation

California Integrated Waste Management Act (AB 939, Sher, Chapter 1095, Statutes of 1989 as amended [IWMA])
Chapter 1355, Statutes of 1990 (Sher, AB 3992)
Chapter 736, Statutes of 1992 (Epple, AB 260)
Chapter 1292, Statutes of 1992 (Sher, AB 2494)
Chapter 1293, Statutes of 1992 (Sher, AB 3322)
Chapter 663, Statutes of 1993 (Sher, AB 54)
Chapter 1227, Statutes of 1994 (Sher, AB 688)

Statute: Public Resources Code (PRC) Sections

PRC 40201, Definition of Transformation.
PRC 41783, Conditions and Requirements for Claiming Credit.
PRC 41784, Jurisdictions are Not Required to Use Transformation.
PRC 41786, Reduced Diversion Requirements for Jurisdictions with Long-term Contracts to Send Waste to Transformation.
PRC 44150, Permitting Requirements for Proposed Solid Waste Transformation Facilities.

Statute: Health and Safety Code (HSC) Section

HSC 42315, Permitting Requirements for Solid Waste Transformation Facilities.

Regulations

Title 14, California Code of Regulations (14 CCR), Chapter 9, Article 9.2, Section 18811: Disposal Reporting Requirements for a Transformation Facility.

Last updated: January 09, 2008