Bill Text: CA SB579 | 2009-2010 | Regular Session | Chaptered
Bill Title: Used oil.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2010-09-29 - Chaptered by Secretary of State. Chapter 504, Statutes of 2010. [SB579 Detail]
Download: California-2009-SB579-Chaptered.html
BILL NUMBER: SB 579 CHAPTERED
BILL TEXT
CHAPTER 504
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2010
APPROVED BY GOVERNOR SEPTEMBER 29, 2010
PASSED THE SENATE AUGUST 27, 2010
PASSED THE ASSEMBLY AUGUST 23, 2010
AMENDED IN ASSEMBLY AUGUST 20, 2010
AMENDED IN ASSEMBLY APRIL 8, 2010
AMENDED IN SENATE SEPTEMBER 1, 2009
AMENDED IN SENATE AUGUST 24, 2009
INTRODUCED BY Senator Lowenthal
FEBRUARY 27, 2009
An act to amend Sections 48623, 48624, 48632, 48651, 48651.5,
48652, 48653, 48660.5, 48662, 48670, 48673, 48674, 48676, and 48691
of, to add Section 48610.3 to, and to repeal Section 48654 of, the
Public Resources Code, relating to oil, and making an appropriation
therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 579, Lowenthal. Used oil.
(1) The California Oil Recycling Enhancement Act, administered by
the Department of Resources Recycling and Recovery, among other
things, authorizes the department to issue grants to, or contract
with, local governments, nonprofit entities, and private entities for
specified purposes including, among other things, the purpose of
protecting advancements and developments in lubricating oil. Existing
law establishes the Used Oil Recycling Fund and continuously
appropriates money from the fund to the department to provide, among
other things, grants and contracts to local governments, nonprofit
entities, and private entities.
This bill would instead authorize the department to issue grants
to, or contract with, local governments, nonprofit entities, and
private entities for the purpose of product advancements and
developments in lubricating oil. By changing the purposes for which
money in the fund may be used, the bill would make an appropriation.
This bill would revise the definition of "used oil hauler" and "used
oil recycling facility" for purposes of the act and would make
conforming changes in the act with regard to the administration of
the act by the department.
(2) The act requires the department to pay a recycling incentive
to every industrial generator, curbside collection program, and
certified used oil collection center for collected or generated used
lubricating oil, including the amount of used oil transported under
certain conditions to an out-of-state recycling facility registered
with, or certified by, the department and operating in substantial
compliance with certain federal regulations. The act also requires
the department, on and after January 1, 2013, to pay a rerefining
incentive to certain recycling facilities that produce rerefined base
lubricants meeting specified requirements and to set the amount, on
and after January 1, 2014, at 2 cents per gallon.
This bill would revise the conditions under which the used oil is
required to be transferred to a registered or certified out-of-state
recycling facility. The bill would change the date to January 1,
2013, when the department is required to set the amount of the
rerefining incentive at 2 cents per gallon and would specify that the
rerefining incentive is paid to a recycling facility for rerefined
oil produced from used oil.
(3) The act requires the department to provide funds from the
California Used Oil Recycling Fund to rural counties for local
government-sponsored collection efforts for certain costs. The act
imposes certain conditions with regard to the payment of the
recycling incentive in small rural counties.
This bill would repeal the requirement that provides funds to
rural counties and the conditions for payment of the recycling
incentive in small rural counties.
(4) The act requires used oil recycling facilities and certain
registered or certified out-of-state recycling facilities to submit a
report to the department regarding the resultant amount of recycled
oil product.
This bill would instead require the report to include the
disposition of the used oil, including the volume of any resultant
product.
(5) The act requires industrial and lubricating oil sales and
recycling to be reported at the end of each 6-month period.
This bill would instead require the department to make this
information available as an annual report on its Internet Web site.
The bill would also make various technical and conforming changes
to the act.
(6) Because a violation of the requirements imposed by the bill
would be a crime, the bill would impose a state-mandated local
program.
(7) 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 48610.3 is added to the Public Resources Code,
to read:
48610.3. "Board" means the Department of Resources Recycling and
Recovery.
SEC. 2. 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 that is certified or registered with
the board pursuant to Section 48662, to a used oil storage facility,
or to a used oil transfer facility.
SEC. 3. Section 48624 of the Public Resources Code is amended to
read:
48624. "Used oil recycling facility" means a facility that is
issued a hazardous waste facilities permit or grant of interim status
by the department pursuant to Section 25200 or 25200.5 of the Health
and Safety Code to convert used oil into recycled oil, or an
out-of-state facility operating in substantial compliance with Part
279 (commencing with Section 279.1) of Title 40 of the Code of
Federal Regulations for the purpose of recycling used oil.
SEC. 4. Section 48632 of the Public Resources Code is amended to
read:
48632. The Department of Resources Recycling and Recovery 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) Product 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. 5. Section 48651 of the Public Resources Code is amended to
read:
48651. 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:
(a) The used lubricating oil is transported by a used oil hauler
to a used oil storage facility or to a used oil transfer facility and
that used oil storage facility or used oil transfer facility causes
that oil to be transported by a used oil hauler 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 paragraph (2) of subdivision (c) of Section 48662 for the
purpose of producing recycled oil as defined in Section 48620.
(b) 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.
SEC. 6. Section 48651.5 of the Public Resources Code is amended 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 to a recycling facility for rerefined oil produced from
used oil 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
by Chapter 353 of the Statutes of 2009, 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, in compliance with Section 9795 of the Government Code,
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.
(c) The requirement for submitting a report pursuant to
subparagraph (D) of paragraph (1) of subdivision (b) is inoperative
on January 1, 2018.
SEC. 7. 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, 2013, 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 lubricating oil from these
generators and sufficient funds are available.
SEC. 8. 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 ensure a used oil storage
facility or used oil transfer facility causes the used lubricating
oil to be transported, as required by subdivision (a) of Section
48651.
SEC. 9. Section 48654 of the Public Resources Code is repealed.
SEC. 10. 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 an uncertified 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 certified 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 paragraph (4) of subdivision (a) of Section 48653.
SEC. 11. 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,
which may be located in this state or be an out-of-state facility,
for which the board has received a report from the department that
the facility meets either of the following requirements:
(1) If the used oil recycling facility is located in this state,
the used oil recycling facility is certified pursuant to subdivision
(a) and produces rerefined base lubricant meeting the specifications
in Section 48620.2.
(2) If the used oil recycling facility is an out-of-state
facility, the facility demonstrates 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
certified by 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,
pursuant to subdivision (c), 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. 12. 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 pursuant to subdivision (b) of Section
48662 or certified pursuant to paragraph (2) of subdivision (c) of
Section 48662.
(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 pursuant
to subdivision (b) of Section 48662 or certified pursuant to
paragraph (2) of subdivision (c) of Section 48662.
(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 its executive officer 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. 13. 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 paragraph (2)
of subdivision (c) of Section 48662, shall report to the board for
each quarter the amount of California used oil received and its
disposition, including the volume of any resultant product.
(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. 14. 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
an annual report to the board, in the manner specified by the board,
that includes any revision 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. 15. Section 48676 of the Public Resources Code is amended to
read:
48676. The board shall make available on its Internet Web site an
annual report that includes the accumulated industrial and
lubricating oil sales and used oil recycling rates.
SEC. 16. 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, during the hours the center is open for business.
(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. 17. 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.
