SB 546

Bill Subjects

Abstract

(1) The California Oil Recycling Enhancement Act, administered by the California Integrated Waste Management Board, among other things, defines terms and establishes the used oil recycling program, consisting of a recycling incentive system, grants or loans to local governments and nonprofit entities for specified purposes related to used lubricating oil collection and recycling and stormwater pollution from used oil and oil byproducts, development and implementation of an information and education program to promote alternatives to the illegal disposal of used oil, and a reporting, monitoring, and enforcement program to ensure that laws relating to used oil are properly carried out. A violation of the act is a crime. This bill would revise the definition of "used oil hauler" and define the term "rerefined oil," for purposes of the act, and would revise and recast the used oil recycling program, so that, among other things, it would no longer provide for loans, and it would provide for the development and implementation of an information and education program to promote methods to reduce the amounts of used oil generated, among other things. The bill would revise the purposes for which grants under the program may be made and would authorize grants additionally to be made to private entities. (2) The act generally imposes a charge on oil manufacturers, payable to the board, in the amount of $0.04 for every quart, or $0.16 for every gallon, of lubricating oil sold or transferred in the state, or imported into the state for use in the state. This bill would increase those amounts to $0.065 and $0.26, respectively through December 31, 2013, and on and after January 1, 2014, those charges would be $0.06 for every quart and $0.24 for every gallon. The charges for finished lubricant containing at least 70% rerefined base lubricant would be revised to $0.03 for every quart and to $0.12 for every gallon. (3) The act requires the board to pay a recycling incentive to every industrial generator, curbside collection program, and certified used oil collection center, for used lubricating oil if certain conditions apply, and to an electric utility, as defined, for certain used lubricating oil. Existing law requires the board to set the recycling incentive amount at not less than $0.04 per quart, and authorizes the board to set the amount at a higher amount if the board determines that a higher amount is necessary to promote recycling of used lubricating oil and sufficient funds are available in the California Used Oil Recycling Fund. This bill would revise the conditions applicable to used lubricating oil that must be met before the board is required to pay the recycling incentive, and would delete the requirement that the board pay the recycling incentive to an electric utility for certain used lubricating oil. The bill additionally would require the board on and after January 1, 2013, to pay a rerefining incentive to certain recycling facilities that produce rerefined base lubricant meeting specified requirements. The bill would require the board, to coordinate a comprehensive life cycle analysis of the used lubricating and industrial oil management process, evaluate the used oil management policies on used oil collection rates, and by January 1, 2014, report to the Legislature its findings. The bill would require the board to increase the recycling incentive to not less than $0.10 per quart, except for used oil generated by a certified used oil collection center and an industrial generator, and, on and after January 1, 2014, to set the rerefining incentive at not less than $0.02 per gallon, and would authorize the board to increase those amounts as specified if it determines that a higher amount is necessary to promote the collection and recycling of used lubricating oil or the rerefining of used lubricating oil, as applicable, and sufficient funds are available in the California Used Oil Recycling Fund. (4) The act requires the board to deposit the charges described in (2) above, civil penalties and fines paid pursuant to the act, and all other revenues received pursuant to the act, in the California Used Oil Recycling Fund, part of which is continuously appropriated to the board to pay recycling incentives, to provide a reserve for contingencies, to make specified payments for implementation of certain local used oil collection programs in a total amount equal to $10,000,000 or12 the amount remaining in the fund after specified expenditures are made, for certain grants and loans, and for reimbursement for certain disposal costs of contaminated used oil. The act authorizes money in the fund, upon appropriation by the Legislature, among other things, to be transferred to the Farm and Ranch Solid Waste Cleanup and Abatement Account in the General Fund, to pay costs associated with implementing and operating the farm and ranch solid waste cleanup and abatement grant program. This bill would authorize the continuously appropriated moneys in the fund also to be used for rerefining incentives and to evaluate the used oil management policies, thereby making an appropriation. The bill would increase the amount available for payments for implementation of local used oil collection programs to $11,000,000, or if that amount is not available, the bill would require the board to determine the amount pursuant to a specified formula, thereby making an appropriation, and would exempt the application and grant award process for these payments from a public meeting requirement, otherwise applicable to programs under the act. The bill would prohibit money in the California Used Oil Recycling Fund attributable to increasing or adjusting the charge on oil manufacturers described in (2) above from being transferred to the Farm and Ranch Solid Waste Cleanup and Abatement Account. (5) The act prohibits a used oil collection center from being eligible for the payment of recycling incentives until the board has certified the center and authorizes the board to cancel certification, after a public hearing, upon finding noncompliance with certification requirements. The act requires a center to reapply for certification every 2 years. This bill instead would require a center to reapply for certification every 4 years and would eliminate the public hearing requirement for cancellation of certification. (6) Under the act, if the board finds that a shipment of used oil from a certified used oil collection center or a curbside collection program is contaminated by hazardous material and other specified requirements are met, the board, upon application of the center or program, is required to reimburse the center or program for the additional disposal cost of the used oil, subject to eligibility requirements and payment limitations. This bill would include uncertified publicly funded used oil collection centers in small rural counties in those entities eligible to receive that reimbursement, and would modify the eligibility requirements and payment limitations. (7) The act imposes certification requirements for used oil recycling facilities. This bill would specify requirements for out-of-state used oil recycling facilities seeking incentive payments, including requirements to register with the board and make certain declarations under penalty of perjury. Because this would expand the application of a crime, it would impose a state-mandated local program. The bill would authorize a facility registered or certified under this provision to enter into a testing and reporting agreement with the Department of Toxic Substances Control and agree to reimburse the department for its full reasonable costs associated with the agreement. The bill also would impose certification requirements on rerefiners of used oil. (8) The act imposes reporting requirements on industrial generators of used lubricating oil, used oil collection centers, and curbside collection programs, to be eligible for payment of a recycling incentive. This bill would revise those reporting requirements. (9) This bill would make other related changes to the act. (10) Because a violation of the act is a crime, the bill would impose a state-mandated local program by, among other things, bringing rerefiners of used lubricating oil within the ambit of the act. (11) Existing law generally regulates persons who generate, receive, store, transfer, transport, treat, or recycle used oil. A violation of those requirements is a crime. This bill would generally require used oil to be tested and analyzed by a laboratory accredited by the State Department of Public Health, to ensure that it meets specified criteria, before a load of used oil is shipped to a transfer facility, recycling facility, or facility located out of the state. The bill would require the testing and analysis to be accomplished by a registered hazardous waste transporter before acceptance at a transfer or recycling facility or shipment out of state, except as otherwise specified. The bill would require the person performing the test to maintain records of the test for at least 3 years and to be subject to audit and verification by the Department of Toxic Substances Control. The bill would require the registered hazardous waste transporter who is listed as the transporter on the Uniform Hazardous Waste Manifest used to ship used oil out of state to submit a report annually to the department containing information regarding shipment of used oil out of state. Because a violation of the used oil requirements would be a crime, the bill would impose a state-mandated local program. (12) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.