Bill Text: CA SB546 | 2009-2010 | Regular Session | Chaptered
Bill Title: Used oil.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Passed) 2009-10-11 - Chaptered by Secretary of State. Chapter 353, Statutes of 2009. [SB546 Detail]
Download: California-2009-SB546-Chaptered.html
BILL NUMBER: SB 546 CHAPTERED
BILL TEXT
CHAPTER 353
FILED WITH SECRETARY OF STATE OCTOBER 11, 2009
APPROVED BY GOVERNOR OCTOBER 11, 2009
PASSED THE SENATE SEPTEMBER 11, 2009
PASSED THE ASSEMBLY SEPTEMBER 11, 2009
AMENDED IN ASSEMBLY SEPTEMBER 4, 2009
AMENDED IN ASSEMBLY SEPTEMBER 1, 2009
AMENDED IN ASSEMBLY JULY 15, 2009
AMENDED IN ASSEMBLY JUNE 29, 2009
AMENDED IN SENATE APRIL 20, 2009
INTRODUCED BY Senator Lowenthal
(Coauthors: Senators Corbett and Oropeza)
(Coauthor: Assembly Member Hall)
FEBRUARY 27, 2009
An act to add Sections 25250.29 and 25250.30 to the Health and
Safety Code, and to amend Sections 48100, 48623, 48631, 48632, 48645,
48650, 48651, 48652, 48653, 48656, 48660, 48660.5, 48662, 48670,
48673, 48674, 48690, and 48691 of, to add Sections 48620.2, 48651.5,
and 48654 to, and to repeal Sections 48633 and 48634 of, the Public
Resources Code, relating to oil, and making an appropriation
therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 546, Lowenthal. Used oil.
(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 or1/2 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.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25250.29 is added to the Health and Safety
Code, to read:
25250.29. (a) Except as provided in subdivisions (b) and (g),
before a load of used oil is shipped to a transfer facility,
recycling facility, or facility located out of the state, the used
oil shall be tested and analyzed by a laboratory accredited by the
State Department of Public Health pursuant to Article 3 (commencing
with Section 100825) of Chapter 4 of Part 1 of Division 101, to
ensure that the used oil meets all of the following characteristics:
(1) A flashpoint above 100 degrees Fahrenheit.
(2) A polychlorinated biphenyls (PCB) concentration of less than 5
ppm.
(3) A concentration of total halogens of 1000 ppm or less, unless
the presumption in subclause (I) of clause (v) of subparagraph (C) of
paragraph (1) of subdivision (a) of Section 25250.1 has been
rebutted pursuant to subclause (II) of clause (v) of subparagraph (C)
of paragraph (1) of subdivision (a) of Section 25250.1.
(b) The testing and analysis required pursuant to subdivision (a)
shall be accomplished by a registered hazardous waste transporter
prior to acceptance at a transfer facility or recycling facility, or
shipment out of the state, except the transporter is not required to
perform the testing and analysis if the transporter can do any of the
following:
(1) (A) Demonstrate that testing and analysis has been performed
by the generator of the used oil prior to shipment.
(B) Subparagraph (A) does not require the generator of the used
oil to perform the testing and analysis required by this section.
(2) Provide documentation that the testing will be performed by a
transfer facility or a recycling facility issued a permit by the
department pursuant to this chapter.
(3) If shipped to an out-of-state facility, provide documentation
certifying that the out-of-state facility receiving the used oil has
entered into an agreement with the department that meets the
requirements of Section 25250.30.
(c) (1) A transporter shall not require a used oil collection
center to test tanks or containers that contain only used lubricating
oil or oil filters accepted from the public as a condition of
accepting the oil for shipment.
(2) A transporter shall not require a generator to test used oil
as a condition of accepting that used oil for shipment.
(3) This subdivision does not alter a generator's responsibility
to comply with regulations adopted by the department that govern the
operation of a generator, and a transporter shall not be required to
transport untested used oil.
(d) This section does not affect or limit a testing requirement
that the department may impose on a used oil transfer facility or
used oil recycling facility as a condition of a permit issued by the
department, including, but not limited to, a test required pursuant
to a facility's waste analysis plan.
(e) The person performing a test required by subdivision (a) shall
maintain records of tests performed for used oil for at least three
years and is subject to audit and verification by the department.
(f) 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 shall submit a report, on or before March 1 of
each year, to the department, containing all of the following
information for the preceding year:
(1) Total volume of used oil shipped out of state.
(2) Information pertaining to the out-of-state facility to which
the used oil was shipped, including the facility name, facility
address, and facility EPA ID number.
(3) Any other information that the department may require to
ensure that the same data gathered for used oil managed within the
state is gathered for used oil shipped out of state.
(g) (1) This section does not apply to a load for shipment that
consists exclusively of used lubricating oil accepted by a used oil
collection center from the public, including, but not limited to,
used lubricating oil accepted by a publicly funded certified or
uncertified used oil collection center located in a small rural
county.
(2) This section does not require a generator to test used oil for
dielectric oil derived from highly refined mineral oil used in oil
filled electrical equipment. Nothing in this section exempts that oil
from any testing requirement required by any other law.
(3) This section does not prohibit the transportation of used oil
to a facility located outside the state, or impose liability other
than compliance with the requirements of this section upon, or in
another way affect the liability of, a generator whose used oil is
transported to a facility located outside the state.
SEC. 2. Section 25250.30 is added to the Health and Safety Code,
to read:
25250.30. A used oil recycling facility located out of state that
is registered or certified in accordance with Section 48662 of the
Public Resources Code may enter into a testing and reporting
agreement with the department. The agreement shall include a
requirement on the out-of-state used oil recycling facility that is
equivalent to the current testing and testing-related reporting
requirements of a used oil recycling facility permit. As part of the
agreement, the out-of-state used oil recycling facility shall agree
to reimburse the department's full reasonable costs associated with
the agreement, including any inspections the department deems
necessary to ensure compliance with this provision.
SEC. 3. Section 48100 of the Public Resources Code is amended to
read:
48100. (a) The Legislature hereby finds and declares that illegal
disposal of solid waste on property owned by innocent parties is a
longstanding problem needing attention and that grants provided under
this chapter will support the cleanup of farm and ranch property.
(b) The board shall establish a farm and ranch solid waste cleanup
and abatement grant program for the purposes of cleaning up and
abating the effects of illegally disposed solid waste pursuant to
this chapter.
(c) (1) The Farm and Ranch Solid Waste Cleanup and Abatement
Account is hereby created in the General Fund and may be expended by
the board, upon appropriation by the Legislature in the annual Budget
Act, for the purposes of this chapter.
(2) The following funds shall be deposited into the account:
(A) Money appropriated by the Legislature from the Integrated
Waste Management Fund or the California Used Oil Recycling Fund to
the board for the grant program, or from the California Tire
Recycling Management Fund to the board for the purposes set forth in
paragraph (10) of subdivision (b) of Section 42889.
(B) Notwithstanding Section 16475 of the Government Code, any
interest earned on the money in the account.
(3) The board may expend the money in the account for both of the
following purposes:
(A) To pay the costs of implementing this chapter, which costs
shall not exceed 7 percent of the funds available for the grant
program.
(B) To make payments for grants authorized by this chapter.
(4) Upon authorization by the Legislature in the annual Budget
Act, the sum of all funds transferred into the account from other
funds or accounts shall not exceed one million dollars ($1,000,000)
annually.
(5) Except as provided in paragraph (2) of subdivision (c) of
Section 48653 and notwithstanding any other provision of law, the
grant program shall be funded from the following funds:
(A) The Integrated Waste Management Fund.
(B) The California Tire Recycling Management Fund, for the
purposes set forth in paragraph (10) of subdivision (b) of Section
42889.
(C) The California Used Oil Recycling Fund.
(d) For purposes of this chapter, the following definitions shall
apply:
(1) "Native American tribe" has the same meaning as tribe, as
defined in subdivision (b) of Section 44201.
(2) "Public entity" means a city, county, or resource conservation
district.
SEC. 4. Section 48620.2 is added to the Public Resources Code, to
read:
48620.2. (a) "Rerefined oil" means a lubricant base stock or oil
base that has been derived from used oil and meets all the following
criteria:
(1) Processed using a series of mechanical or chemical methods, or
both, including at a minimum, but not limited to, vacuum
distillation, followed by solvent refining or hydrotreating.
(2) Capable of meeting the Physical and Compositional Properties,
in addition to the Contaminants and Toxicological Properties, as
defined under the American Society for Testing and Materials (ASTM)
D6074-99 standard.
(3) Processed into a material that has a performance quality level
suitable for use in a finished lubricant.
(b) A producer of a rerefined base stock shall provide a purchaser
of that base stock with information that certifies that the
rerefined base stock is rerefined oil, as that term is defined by
subdivision (a). Any rerefined base stock that does not comply with
subdivision (a) shall not be sold as rerefined oil and is subject to
all applicable hazard, personal protection, and risk communication
requirements until subsequent testing demonstrates compliance with
subdivision (a).
SEC. 5. Section 48623 of the Public Resources Code is amended to
read:
48623. "Used oil hauler" means a hazardous waste transporter
registered pursuant to Chapter 6.5 (commencing with Section 25100) of
Division 20 of the Health and Safety Code who transports used oil to
a used oil recycling facility certified pursuant to Article 7
(commencing with Section 48660), to a used oil storage facility, to a
used oil transfer facility, or to an out-of-state recycling facility
registered with the board to be operating in substantial compliance
with Part 279 (commencing with Section 279.1) of Title 40 of the Code
of Federal Regulations.
SEC. 6. Section 48631 of the Public Resources Code is amended to
read:
48631. The used oil recycling program shall include, but is not
limited to, all of the following:
(a) A recycling incentive system as described in Article 6
(commencing with Section 48650).
(b) Public and private grants and contracts, including, but not
limited to, those between the board and local governments, nonprofit
entities, and private entities for the purposes specified in Section
48632.
(c) Development and implementation of an information and education
program to promote safe and proper used oil collection and treatment
methods, methods to reduce used oil generation, and advances in new
and existing technologies, including, but not limited to, use of
rerefined oil in automotive and industrial lubricants.
(d) A reporting, monitoring, and enforcement program to ensure
that all statutes and regulations relating to used oil are properly
carried out.
SEC. 7. Section 48632 of the Public Resources Code is amended to
read:
48632. The board may, pursuant to subdivision (b) of Section
48631, issue grants to or contract with local governments, nonprofit
entities, and private entities, for any of the following purposes:
(a) Providing and maintaining collection and recycling
opportunities for used lubricating oil and filters that are in
addition to those included in the local used oil collection programs
adopted pursuant to Article 10 (commencing with Section 48690).
(b) Research, testing, and demonstration projects for in-service
uses, collection technologies, and end-of-life used oil management.
(c) Developing uses and markets for low environmental impact
products resulting from the recycling of used oil, including, but not
limited to, promoting the manufacture of rerefined lubricating oil.
(d) Protecting advancements and developments in lubricating oil
resulting from, but not limited to, new requirements or technologies
in fuel efficiency and performance, synthetic or biobased lubricants,
alternative fuels, and methods to extend lubricating oil life.
(e) Education and mitigation projects relating to stormwater
pollution from used oil and its impacts on receiving waters, soils,
and oceans.
(f) A local government shall not receive a grant or contract
pursuant to this section for any purpose identified in subdivision
(e) unless the local government certifies that it has a stormwater
management program that is approved by the appropriate California
regional water quality control board and that the project approved
for funding under subdivision (e) is consistent with that approved
stormwater management program.
(g) An information and education program pursuant to subdivision
(c) of Section 48631.
SEC. 8. Section 48633 of the Public Resources Code is repealed.
SEC. 9. Section 48634 of the Public Resources Code is repealed.
SEC. 10. Section 48645 of the Public Resources Code is amended to
read:
48645. Except for payments made to local governments pursuant to
paragraph (3) of subdivision (a) of Section 48653, final approval of
applicant and project eligibility standards, scoring and evaluation
processes, and awarding of grants under this chapter shall be made in
a public meeting of, and pursuant to a vote of, the board.
SEC. 11. Section 48650 of the Public Resources Code is amended to
read:
48650. (a) Except as provided in subdivisions (c) and (d), every
oil manufacturer shall pay to the board, on or before the last day of
the month following each quarter, an amount equal to six and
one-half cents ($0.065) for every quart, or twenty-six cents ($0.26)
for every gallon, of lubricating oil sold or transferred in the
state, or imported into the state for use in the state in that
quarter. For lubricating oil sold by weight, a weight to volume
conversion factor of 7.5 pounds per gallon shall be used to determine
the fee. Except as provided in subdivision (b), no payment is
required for oil that meets any of the following:
(1) Oil for which a payment has already been made to the board
pursuant to this section.
(2) Oil exported or sold for export from the state.
(3) Oil sold for use in vessels operated in interstate or foreign
commerce.
(4) Oil imported into the state in the engine crankcase,
transmission, gear box, or differential of an automobile, bus, truck,
vessel, plane, train, or heavy equipment or machinery.
(5) Bulk oil imported into, transferred in, or sold in the state
to a motor carrier, as defined in Section 408 of the Vehicle Code,
and used in a vehicle designated in subdivisions (a) and (b) of
Section 34500 of the Vehicle Code.
(6) The oil otherwise subject to payment pursuant to this
subdivision has a volume of five gallons or less.
(b) If oil exempted from payment pursuant to subdivision (a) is
subsequently sold or transferred for use, or is used, in this state,
and the use does not qualify for exemption pursuant to subdivision
(a), the entity that sells, transfers, or uses the oil for a purpose
that is not exempt from payment, shall make the payment specified in
subdivision (a).
(c) Every manufacturer of finished lubricant containing at least
70 percent rerefined base lubricant shall pay to the board an amount
equal to three cents ($0.03) for every quart or twelve cents ($0.12)
for every gallon sold or transferred in the state or imported into
the state, pursuant to the schedule established in subdivision (a).
(d) Except as provided in subdivision (c), on and after January 1,
2014, every oil manufacturer shall pay to the board an amount equal
to six cents ($0.06) for every quart or twenty-four cents ($0.24) for
every gallon of lubricating oil sold or transferred in the state or
imported into the state, pursuant to the schedule established in
subdivision (a).
SEC. 12. Section 48651 of the Public Resources Code is amended to
read:
48651. (a) The board shall pay a recycling incentive pursuant to
subdivision (a) of Section 48652 to every industrial generator,
curbside collection program, and certified used oil collection
center, for used lubricating oil collected from the public or
generated by the certified used oil collection center or the
industrial generator, if either of the following conditions apply:
(1) The used lubricating oil is transported by a used oil hauler
to a used oil storage facility or to a used oil transfer facility for
the purpose of producing recycled oil as defined in Section 48620.
(2) The used lubricating oil is transported by a used oil hauler
directly to an in-state used oil recycling facility that is certified
pursuant to subdivision (a) of Section 48662, or to an out-of-state
used oil recycling facility registered pursuant to subdivision (b) of
Section 48662 or certified pursuant to subdivision (c) of Section
48662, for the purpose of producing recycled oil as defined in
Section 48620.
(b) A used oil storage facility or a used oil transfer facility
that accepts used oil pursuant to paragraph (1) of subdivision (a)
shall cause that oil to be transported by a used oil hauler to a used
oil recycling facility certified pursuant to subdivision (a) of
Section 48662 or to an out-of-state used oil recycling facility
registered pursuant to subdivision (b) of Section 48662 or certified
pursuant to subdivision (c) of Section 48662 for the purpose of
producing recycled oil as defined in Section 48620.
SEC. 13. Section 48651.5 is added to the Public Resources Code, to
read:
48651.5. (a) Effective January 1, 2013, the board, with regard to
promoting the recycling of used lubricating oil into rerefined oil,
shall pay a rerefining incentive pursuant to subdivision (b) of
Section 48652 if all of the following conditions are met:
(1) The facility is an in-state or out-of-state recycling facility
that is certified in accordance with subdivision (c) of Section
48662 and produces rerefined base lubricant meeting the
specifications of rerefined oil as defined in Section 48620.2.
(2) The used oil was generated and collected within the state and
prior to treatment or processing has been tested to meet the
definition of used oil as specified in paragraph (1) of subdivision
(a) of Section 25250.1 of the Health and Safety Code.
(3) The facility submits to the board a completed used oil
rerefining incentive payment claim in the form and manner that the
board may prescribe.
(b) (1) To further promote the safe management of used oil, and to
review the changes in policy and program enacted by the Legislature
in Senate Bill No. 546 of the 2009 Regular Session, without implying
that any further changes are necessary and warranted, the board,
using existing financial resources, shall do all of the following:
(A) Contract with a third-party consultant with recognized
expertise in life cycle assessments to coordinate a comprehensive
life cycle analysis of the used lubricating and industrial oil
management process, from generation through collection,
transportation, and reuse alternatives.
(B) Solicit input from representatives of all used oil
stakeholders in defining the scope and design of the life cycle
analysis, in conducting the life cycle analysis, and in issuing a
draft report for public review and comment.
(C) Evaluate the positive and negative impacts of the testing
requirements established in Section 25250.29 of the Health and Safety
Code, the tiered fee on lubricating oil established in Section
48650, and the tiered incentive payments established in Section
48652, on used oil collection rates.
(D) On or before January 1, 2014, submit a report to the
Legislature describing the findings of the life cycle analysis and
the evaluation of the used oil management policies on used oil
collection rates specified in subparagraph (C) and provide any
recommendations for statutory changes that may be necessary to
promote increased collection and responsible management of used oil.
(2) All costs incurred by the board and its contractors in meeting
the requirements of this subdivision shall be covered by the
additional one-half-cent ($0.005) fee established in subdivision (a)
of Section 48650, and effective through December 31, 2013, pursuant
to subdivision (d) of Section 48650.
SEC. 14. Section 48652 of the Public Resources Code is amended to
read:
48652. (a) Except as provided in subdivision (d), the board shall
set the recycling incentive at not less than ten cents ($0.10) per
quart. The board may set the amount at an amount higher than ten
cents ($0.10) if the board determines that a higher amount is
necessary to promote the collection and recycling of used lubricating
oil and sufficient funds are available in the fund.
(b) On and after January 1, 2014, the board shall set the
rerefining incentive at not less than two cents ($0.02) per gallon.
On and after January 1, 2015, the board may set the rerefining
incentive at a higher amount if the board determines that a higher
amount is necessary to promote rerefining of used lubricating oil and
sufficient funds are available in the fund.
(c) The board shall not change the amount of an incentive paid
pursuant to this section until at least one year has passed since the
amount was last set. The amount of an incentive paid by the board
shall remain at the previous amount for one month after setting the
incentive at a different amount. The board shall not raise the amount
of an incentive paid unless it finds that the raise will not
adversely affect funding required pursuant to Sections 48631, 48653,
and 48660.5.
(d) The board shall set the recycling incentive for used oil
generated by a certified used oil collection center and an industrial
generator at not less than four cents ($0.04) per quart. The board
may set the amount higher than four cents ($0.04), if the board
determines that a higher amount is necessary to promote the
collection and recycling of used oil from these generators and
sufficient funds are available.
SEC. 15. Section 48653 of the Public Resources Code is amended to
read:
48653. The board shall deposit all amounts paid pursuant to
Section 48650 by manufacturers, civil penalties, and fines paid
pursuant to this chapter, and all other revenues received pursuant to
this chapter into the California Used Oil Recycling Fund, which is
hereby created in the State Treasury. Notwithstanding Section 13340
of the Government Code, the money in the fund is to be appropriated
solely as follows:
(a) Continuously appropriated to the board for expenditure for the
following purposes:
(1) To pay recycling incentives pursuant to Section 48651.
(2) To provide a reserve for contingencies, as may be available
after making other payments required by this section, in an amount
not to exceed one million dollars ($1,000,000).
(3) (A) To make payments for the implementation of local used oil
collection programs adopted pursuant to Article 10 (commencing with
Section 48690) to cities, based on the city's population, and
counties, based on the population of the unincorporated area of the
county. Payment shall be determined by multiplying the total annual
amount by the fraction equal to the population of cities and counties
that are eligible for payments pursuant to Section 48690, divided by
the population of the state. The board shall use the latest
population estimates of the state generated by the Population
Research Unit of the Department of Finance in making the calculations
required by this paragraph. Notwithstanding subdivision (b) of
Section 48656, the total annual amount shall equal eleven million
dollars ($11,000,000), subject to subparagraph (B).
(B) If sufficient funds are not available to initially issue full
funding pursuant to subparagraph (A), the board shall provide funding
as follows:
(i) For the purposes set forth in this paragraph, one-half of the
amount that remains in the fund after the expenditures are made
pursuant to paragraphs (1) and (2) and subdivision (b). The board may
utilize additional amounts from the fund, up to, but not exceeding,
eleven million dollars ($11,000,000).
(ii) As the board finds is fiscally appropriate, for the purposes
set forth in Section 48656. The board shall give priority to the
distribution of funding in clause (i) for the purposes of this
paragraph.
(C) Pursuant to paragraph (2) of subdivision (d) of Section 48691,
it is the intent of this paragraph that at least one million dollars
($1,000,000) be made available specifically for used oil filter
collection and recycling programs.
(4) To implement Section 48660.5, in an amount not to exceed two
hundred thousand dollars ($200,000) annually.
(5) For expenditures pursuant to Section 48656.
(b) The money in the fund may be expended by the board for the
administration of this chapter and by the department for inspections
and reports pursuant to Section 48661, only upon appropriation by the
Legislature in the annual Budget Act.
(c) (1) Except as provided in paragraph (2), the money in the fund
may be transferred to the Farm and Ranch Solid Waste Cleanup and
Abatement Account in the General Fund, upon appropriation by the
Legislature in the annual Budget Act, to pay the costs associated
with implementing and operating the Farm and Ranch Solid Waste
Cleanup and Abatement Grant Program established pursuant to Chapter
2.5 (commencing with Section 48100).
(2) The money in the fund attributable to a charge increase or
adjustment made or authorized in an amendment to subdivision (a) of
Section 48650 by the act adding this paragraph shall not be
transferred to the Farm and Ranch Solid Waste Cleanup and Abatement
Account.
(d) Appropriations to the board to pay the costs necessary to
administer this chapter shall not exceed three million dollars
($3,000,000) annually.
(e) The Legislature hereby finds and declares its intent that
three hundred fifty thousand dollars ($350,000) should be annually
appropriated from the California Used Oil Recycling Fund in the
annual Budget Act to the board, commencing with fiscal year 2010-11,
for the purposes of Section 48655 and to conduct those investigations
and enforcement actions necessary to implement subdivision (b) of
Section 48651.
SEC. 16. Section 48654 is added to the Public Resources Code, to
read:
48654. (a) It is the intent of the Legislature in enacting this
chapter that local government sponsored used motor oil collection
programs in rural counties continue to operate and be funded to
maintain or expand their existing collection efforts. As such,
funding should be increased according to increased costs due to the
imposition of new requirements under this chapter enacted in the act
that added this section in the 2009-10 Regular Session of the
Legislature.
(b) (1) The board shall provide funds from the California Used Oil
Recycling Fund to rural counties for local government sponsored
collection efforts to cover additional
costs of testing or reduced availability of the
recycling incentive caused by increased regulatory expenses pursuant
to the addition of Section 25250.29 to the Health and Safety Code,
and amendments to Sections 48623, 48631, 48632, 48651, 48662, and
48670, enacted in the act that added this section in the 2009-10
Regular Session of the Legislature.
(2) To qualify for such funding, the local government shall
demonstrate to the board that it has incurred additional costs and
that these costs could not have been avoided or lessened through the
use of a commercially viable alternative transporter or recycling
facilities that are in compliance with this chapter.
SEC. 17. Section 48656 of the Public Resources Code is amended to
read:
48656. After all of the expenditures pursuant to Section 48653
have been made, notwithstanding paragraph (5) of subdivision (a) of
Section 48653, the balance remaining in the fund shall be available
to the board for the following purposes:
(a) The implementation of subdivisions (b) and (c) of Section
48631 and Section 48651.5, subject to both of the following
requirements:
(1) The allocation of funds to implement subdivisions (b) and (c)
of Section 48631 shall be at the discretion of the board to be
determined annually in a public meeting and pursuant to a vote of the
board.
(2) The board shall pay rerefining incentives pursuant to Section
48651.5 if sufficient funds are available in the fund.
(b) Annual revenues left unspent in excess of one million dollars
($1,000,000) shall be allocated pursuant to paragraph (3) of
subdivision (a) of Section 48653 for local collection programs
adopted pursuant to Article 10 (commencing with Section 48690).
SEC. 18. Section 48660 of the Public Resources Code is amended to
read:
48660. (a) No used oil collection center shall be eligible for
the payment of recycling incentives until the board has certified
that the center is in compliance with the requirements in subdivision
(b). Before certification, the board may require the center to
submit any information that the board determines is necessary to find
that the center is in compliance with those requirements. A center
shall reapply for certification every four years. The board may
cancel the certification of a center if the board finds that the
center is not, or has not been, in compliance with subdivision (b).
The board may withhold the payment of recycling incentives for used
lubricating oil collected by a center if the board finds that the
center was not in compliance with subdivision (b) during the time in
which the used lubricating oil was collected.
(b) To be eligible for certification by the board and for the
payment of recycling incentives, the used oil collection center shall
do all of the following:
(1) Accept used lubricating oil from the public at no charge
during the hours that the entity operating as the center is open for
business.
(2) Pay to a person, at his or her request, an amount equal to the
recycling incentive that the center will receive for used
lubricating oil brought to the center in containers by the person.
Nothing in this chapter prohibits a person from donating used
lubricating oil to a center. The recycling incentive may be in the
form of a credit that may be applied toward the purchase of goods or
services offered by the center, as determined by the board. The
credit shall be in the form of a voucher or coupon with a value of at
least twice the incentive amount to be paid pursuant to Section
48652 and have no other limits for use, unless prescribed by the
board.
(3) Provide information to the board for informing the public of
the center's acceptance of used lubricating oil.
(4) Provide notice to the public of the center's acceptance of
used lubricating oil from the public through periodic advertising in
local media and onsite signs that meet the following requirements:
(A) Onsite signs shall be of a design and specification prescribed
by the board and shall state that the center is certified by the
state and collects used oil from the public at no charge.
(B) A certified center shall post an exterior sign of a design and
specification prescribed by the board in a location that is easily
visible from a public street. In addition, the certified center shall
post an informational sign of a design and specification prescribed
by the board so that it is easily readable from the location where
the used oil is received from the public.
(C) If local zoning ordinances prevent signs of a size consistent
with this paragraph, the exterior symbolic sign shall be of the
maximum allowable size.
(c) Notwithstanding subdivision (b), a used oil collection center
may refuse to accept used lubricating oil that has been contaminated
in a manner other than that which would occur through normal use.
(d) Notwithstanding subdivision (b), a used oil collection center
shall not knowingly accept used lubricating oil for which a payment
has not been made pursuant to Section 48650.
SEC. 19. Section 48660.5 of the Public Resources Code is amended
to read:
48660.5. (a) If the board finds that a shipment of used oil from
a certified used oil collection center, curbside collection program,
or uncertified publicly funded used oil collection center in a small
rural county is contaminated by hazardous materials in excess of that
which generally occurs in normal use, which renders the used oil
infeasible for recycling, and requires that the used oil be destroyed
at a substantially higher cost than the cost generally to recycle
used oil, the board shall, upon application by the used oil
collection center or curbside collection program, reimburse the
center or program for the additional disposal cost, subject to the
eligibility requirements of subdivision (b), except as provided in
subdivision (c).
(b) A certified used oil collection center, curbside collection
program, or uncertified publicly funded used oil collection center in
a small rural county is eligible for reimbursement only if it
demonstrates to the satisfaction of the board all of the following,
except that paragraph (1) does not apply to a publicly funded used
oil collection center in a small rural county:
(1) The center or program has established procedures to ensure
that the used oil it generates and accepts from the public will not
be mixed with other hazardous wastes, especially halogen-contaminated
and polychlorinated biphenyl-contaminated wastes. These procedures
shall include, but not be limited to, instructing the public and
employees that used oil shall not be mixed with other hazardous
waste. The board shall not require a center or program to test used
oil received from the public as part of these procedures.
(2) The shipment contains not more than five gallons or pounds of
contaminants combined, based on the contaminant concentrations and
the total volume or weight of the shipment.
(c) In a calendar year, a used oil collection center, curbside
collection program, or uncertified publicly funded used oil
collection center in a small rural county shall be reimbursed for not
more than one shipment and for not more than five thousand dollars
($5,000) in disposal costs for halogen-contaminated waste or not more
than the actual net additional costs of disposing of polychlorinated
biphenyl-contaminated wastes, subject to the availability of funds
pursuant to Section 48656.
SEC. 20. Section 48662 of the Public Resources Code is amended to
read:
48662. (a) The board shall certify or recertify a used oil
recycling facility located in this state for which the board has
received a report from the department pursuant to Section 48661,
unless the board determines that the facility is engaged in a
repeating or recurring pattern of noncompliance that poses a
significant threat to public health and safety or the environment.
(b) The board shall require an out-of-state recycling facility,
that receives used oil from a California generator and to which a
recycling incentive may be paid, to register with the board declaring
under penalty of perjury that the facility is operating in
substantial compliance with Part 279 (commencing with Section 279.1)
of Title 40 of the Code of Federal Regulations. An out-of-state
recycling facility registering with the board pursuant to this
subdivision shall, upon request, provide the board or the department
with a copy of any inspection report issued for the facility by, or
any other enforcement related documents available to, the agency
responsible for enforcing Part 279 (commencing with Section 279.1) of
Title 40 of the Code of Federal Regulations at the facility.
(c) The board shall certify or recertify a rerefiner of used oil
for which the board has received a report from the department that
the facility meets either of the following requirements:
(1) The used oil recycling facility located in this state is
certified pursuant to subdivision (a) and produces rerefined base
lubricant meeting the specifications in Section 48620.2.
(2) The used oil recycling facility is an out-of-state facility
that has demonstrated to the satisfaction of the department all of
the following:
(A) The facility substantially meets the requirements in Part 279
(commencing with Section 279.1) of Title 40 of the Code of Federal
Regulations.
(B) The facility produces rerefined base lubricant meeting the
specifications in Section 48620.2. An out-of-state recycling facility
registering with the board pursuant to this subdivision shall, upon
request, provide the board or the department with a copy of records
demonstrating that the used oil has been recycled to meet the
specifications for rerefined oil, as defined in Section 48620.2.
(d) An out-of-state facility that seeks certification shall
annually certify in writing to the board, under penalty of perjury,
that the facility substantially meets the requirements in paragraph
(2) of subdivision (c).
(e) Paragraph (2) of subdivision (c) does not require the
department to inspect or prohibit the department from inspecting an
out-of-state facility to determine whether the department is
satisfied that the facility substantially meets the requirements for
certification.
(f) As a condition of demonstrating compliance pursuant to
paragraph (2) of subdivision (c), a facility shall enter into an
agreement with the department pursuant to Section 25201.9 of the
Health and Safety Code to pay the department's full expenses of
conducting the review and any inspection costs the department may
incur in determining whether the facility meets the requirements for
certification.
(g) If the board denies certification to a facility subject to
subdivision (a) or (c), the board may subsequently certify the
facility if it determines that the facility meets the standards for
certification.
SEC. 21. Section 48670 of the Public Resources Code is amended to
read:
48670. (a) To be eligible for payment of a recycling incentive,
an industrial generator of used lubricating oil, a used oil
collection center, or a curbside collection program shall report to
the board, for each quarter, based on the following reporting
limitations and requirements:
(1) The amount of lubricating oil purchased and the amount of used
lubricating oil that is transported to a certified used oil
recycling facility, to a used oil storage facility, or to a used oil
transfer facility, or that is transported to an out-of-state
recycling facility registered with the board to be operating in
substantial compliance with Part 279 (commencing with Section 279.1)
of Title 40 of the Code of Federal Regulations.
(2) The amount of used lubricating oil collected from the public,
for use in determining the recycling incentive payment, that is
transported to a certified used oil recycling facility, to a used oil
storage facility, or to a used oil transfer facility, or that is
transported to an out-of-state recycling facility registered with the
board to be operating in substantial compliance with Part 279
(commencing with Section 279.1) of Title 40 of the Code of Federal
Regulations. However, a certified collection center with service bays
located in a small rural county shall be eligible for a recycling
incentive based on 60 percent of the total oil recycled by collecting
used oil from the public and servicing motor vehicles. If the center
documents, in the form prescribed by the board, that the portion
that resulted from public collection exceeds 60 percent of the total
oil recycled, the center shall be eligible for the incentive payment
based on the actual amount of used oil accepted from the public and
recycled.
(b) The reports shall be submitted on or before the 45th day
following each quarter, in the form and manner that the board may
prescribe, and shall include copies of manifests or modified manifest
receipts from used oil haulers.
(c) The board may delegate to the executive officer of the board
the authority to accept reports submitted after the 45th day and to
reduce, eliminate, or approve the amount of incentive fee to be paid
due to the late submission of the report. The board may provide, by
regulation, for a longer reporting period for industrial generators
that generate less than 1,000 gallons of used oil annually.
SEC. 22. Section 48673 of the Public Resources Code is amended to
read:
48673. (a) A used oil recycling facility issued a permit by the
department to produce recycled oil, as defined in Section 25250.1 of
the Health and Safety Code, and an out-of-state recycling facility
that is either registered with the board pursuant to subdivision (b)
of Section 48662 or certified by the board pursuant to subdivision
(c) of Section 48662, shall report to the board for each quarter the
amount of California used oil received and the resultant amount of
recycled oil produced.
(b) A facility subject to this section shall provide estimates,
where feasible, of the amount that is used lubricating oil and the
amount that is used industrial oil.
(c) The reports required by this section shall be submitted on or
before the last day of the month following each quarter, in the form
and manner that the board may prescribe.
SEC. 23. Section 48674 of the Public Resources Code is amended to
read:
48674. After receiving payments pursuant to paragraph (3) of
subdivision (a) of Section 48653, each local government shall submit
a report to the board, in the manner specified by the board, that
includes any amendments to the local used oil collection program
adopted pursuant to Section 48690, a description of all measures
taken to implement the program, and a description of how payments
were expended.
SEC. 24. Section 48690 of the Public Resources Code is amended to
read:
48690. A local government is eligible for a payment pursuant to
paragraph (3) of subdivision (a) of Section 48653, if it develops and
submits a local used oil collection program to the board pursuant to
Section 48691 and files a report pursuant to Section 48674. The
board shall make a payment to every local government that submits a
program and files a report unless the board finds that the program or
its implementation does not comply with criteria contained in this
article. The board may make a payment to another entity that will
implement the program of a local government in lieu of making a
payment to that local government with the concurrence of that local
government. A payment issued by the board pursuant to this section
may take the form of an advance payment. If a local government does
not implement a used oil collection program or chooses not to accept
the payment pursuant to paragraph (3) of subdivision (a) of Section
48653, the board may allocate that local government's payment to
another local government that commits to implementing a used oil
collection program pursuant to Section 48691 and serving the
residents of the nonparticipating local government, if any program
implemented within the boundaries of the nonparticipating
jurisdiction is approved by the nonparticipating jurisdiction.
SEC. 25. Section 48691 of the Public Resources Code is amended to
read:
48691. (a) A local used oil collection program shall provide for
used lubricating oil collection by either of the following or a
combination of the two:
(1) Ensuring that at least one certified used oil collection
center is available for every 100,000 residents not served by
curbside used oil collection, that accepts oil from the public at no
charge, at least 20 hours each week, on four days each week, of which
three hours each week are outside the weekday hours of 8 a.m.
through 5:30 p.m.
(2) Providing used oil curbside collection at least once a month.
(b) A local used oil collection program shall include a public
education program that informs the public of locally available used
oil recycling opportunities.
(c) A local government may implement its used oil collection
program in conjunction with other similar programs in order to
improve used oil recycling efficiency.
(d) A local government that has implemented the used oil
collection and education elements of subdivisions (a) and (b) may
also include, in the local used oil collection program one or both of
the following:
(1) Provisions for the mitigation and the collection of oil and
oil byproducts, including other solid waste that may be mixed with
oil or oil byproducts from stormwater runoff, including devices to
capture that stormwater runoff, such as the use of storm drain inlet
filter devices. A local government shall not receive a payment
pursuant to Section 48690 for the purposes identified pursuant to
this paragraph unless the local government certifies that it has a
stormwater management program that is approved by the appropriate
California regional water quality control board and that the
provisions in the local used oil collection program approved for
funding under this paragraph are consistent with that approved
stormwater management program.
(2) A used oil filter collection and recycling program.
SEC. 26. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
