BILL NUMBER: AB 907	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2009

INTRODUCED BY   Assembly Member Chesbro

                        FEBRUARY 26, 2009

   An act to amend  Section 48650 of   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 and 48651.5 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


   AB 907, as amended, Chesbro. California Oil Recycling Enhancement
Act: rerefined oil. 
    The 
    (1)     The  California Oil Recycling
Enhancement Act, administered by the California Integrated Waste
Management Board, among other things,  generally 
 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 define the term "rerefined oil" and revise the
definition of "used oil hauler" 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 and to promote the use of rerefined oil in automotive
and industrial lubricants. 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  requires
every oil manufacturer to pay to the board an amount equal to $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  authorize the board to develop a program
to provide incentives to manufacturers of rerefined oil, as the bill
would define that term, to develop additional capacity for the
rerefining of used oil   increase those amounts to $0.06
per quart and   $0.24 per gallon, would authorize the board
to adjust the fee annually, as specified, and would exempt from the
payment of the fee oil sold as finished lubricant containing 100%
rerefined base lubricant  . 
   (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 to pay a rerefining
incentive to certain recycling facilities that produce rerefined base
lubricant meeting specified requirements. The bill would require the
board, on or before January 1, 2012, to consider whether to
implement additional incentives that prioritize the highest and most
beneficial uses of used lubricating oil.  
   The bill would require the board to increase the recycling
incentive to not less than $0.10 per quart and to set the rerefining
incentive at not less than $0.02 per quart, and would authorize the
board to increase those amounts 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 or one-half 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 increase the amount available for payments for
implementation of local used oil collection programs to $13,000,000,
thereby making an appropriation. 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. Certification eligibility includes compliance
with public notice and operational 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 revise the certification
eligibility requirements.  
   (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 also would impose certification requirements on
rerefiners of used oil. The bill would require certain out-of-state
recycling facilities to make specified certifications of compliance
with certain federal and state laws, thereby imposing a
state-mandated local program, by creating a new crime.  
   (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) 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. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee: yes. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    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  (j) 
(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)  Notwithstanding   Except as provided in
paragraph (2) of subdivision (c) of Section 4865 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
 (j)   (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. 2.    Section 48620.2 is added to the  
Public Resources Code   , to read:  
   48620.2.  "Rerefined oil" means a lubricant base stock or oil base
that has been derived from used oil and meets all the following
criteria:
   (a) Processed using a series of mechanical or chemical methods, or
both, including, but not limited to, vacuum distillation, followed
by solvent refining or hydrotreating.
   (b) 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.
   (c) Processed into a material that has a quality level suitable
for use in a finished lubricant. 
   SEC. 3.    Section 48623 of the   Public
Resources Code   is amended to read: 
   48623.  "Used oil hauler" means a hazardous waste hauler
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  Environmental Protection Agency and
operated in substantial compliance with applicable regulatory
standards of the state in which the recycling facility is located
  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. 4.    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)  Grants or loans, as   Public and private
partnerships 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  for the promotion of alternatives to the illegal
disposal of used oil   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. 5.    Section 48632 of the   Public
Resources Code   is amended to read: 
   48632.  The board may  issue grants or loans 
 ,  pursuant to subdivision (b) of Section 48631 
for only the following purposes: 
    (a)     To 
 , issue grants to or contract with  local governments
 for providing opportunities for used lubricating oil
collection, which are in addition to those included in the local used
oil collection programs adopted pursuant to Article 10 (commencing
with Section 48690). Grants or loans under this subdivision may also
be for those purposes identified in subdivision (d).   ,
  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) To nonprofit entities for projects, which may include one or
more of the following programs or activities:  
   (1) Establishing used lubricating oil collection centers.
 
   (2) Providing containers and other materials and supplies that the
public can utilize in an environmentally sound manner to store used
lubricating oil for pickup or return to a used oil collection center.
 
   (3) Obtaining equipment and establishing procedures to comply with
federal, state, and local law regarding the collection, handling,
and storage of used oil.  
   (4) For the purposes identified in subdivision (d). 

   (c) For either or both of the following purposes: 

   (1) 
    (b)    Research, testing, and demonstration
projects for  in-service uses,  collection technologies 
,  and  to develop uses for products resulting from the
recycling of used oil   end-of-   life used
oil management  . 
   (2) The purposes identified in subdivision (d).  

   (d) (1) For education and mitigation projects relating to
stormwater pollution from used oil and oil byproducts, including, but
not limited to, use of storm drain inlet filter devices. 

   (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 and its impacts on receiving waters,
soils, and oceans. 
   (2) 
    (f)    A local government shall not receive a
grant or  loan   contract  pursuant to this
section for any purpose identified in  paragraph (1)
  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 
paragraph (1)   subdivision (e)  is consistent with
that approved stormwater management program.
    (g)     An information and education
program pursuant to subdivision (c) of Section 48631. 
   SEC. 6.    Section 48633 of the   Public
Resources Code   is repealed.  
   48633.  The grants to nonprofit organizations and governmental
entities authorized by subdivisions (a) and (b) of Section 48632 may
include grants to offset operational expenses. 
   SEC. 7.    Section 48634 of the   Public
Resources Code   is repealed.  
   48634.  In adopting the program required by this article, the
board shall consider information developed pursuant to the Used Oil
Collection Demonstration Grant Program Act of 1990 (Chapter 1.5
(commencing with Section 3475) of Division 3). 
   SEC. 8.    Section 48645 of the   Public
Resources Code   is amended to read: 
   48645.   Final   Except for payments made to
local governments purs   uant to paragraph (3) of
subdivision (a) of Section 48653, final  approval of applicant
and project eligibility standards, scoring and evaluation processes,
and awarding of  loans or  grants under this chapter
shall be made in a public meeting of, and pursuant to a vote of, the
board.
   SEC. 9.    Section 48650 of the   Public
Resources Code   is amended to read: 
   48650.  (a) Every oil manufacturer shall pay to the board, on or
before the last day of the month following each quarter, an amount
equal to  four cents ($0.04)   six cents ($0.06)
 for every quart, or  sixteen cents ($0.16) 
 twenty-four cents ($0.24)  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.  The board may adjust the
fee not more than once annually to reflect increases or decreases in
the cost-of-living index during the prior fiscal year as measured by
the California Consumer Price Index issued by the Department of
Industrial Relations or a successor agency.  Except as provided
in subdivision (b), no payment is required for oil  which
  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. 
   (7) Oil sold as a finished lubricant containing 100 percent
rerefined base lubricant. 
   (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  which   that  sells,
transfers, or uses the oil for a purpose  which 
 that  is not exempt from payment, shall make the payment
specified in subdivision (a).
   (c) This section shall become operative on January 1, 
2000   2010  .
   SEC. 10.    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,
 and transported by a used oil hauler to the facilities
specified in Section 48623.   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.
 
   (2) The used lubricating oil is transported by a used oil hauler
directly to an in-state used oil recycling facility that is certified
in accordance with subdivision (a) of Section 48662, or to an
out-of-state used oil 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.
 
   (b) The board shall pay a recycling incentive to an electric
utility, as defined in Section 25108, for used lubricating oil
generated and used by the electric utility for electrical generation
if the electric utility's use of the used lubricating oil meets the
requirements of subparagraph (C) of paragraph (2) of subdivision (d)
of Section 25143.2 of the Health and Safety Code and the used oil is
in compliance with the standards for recycled oil established in
paragraph (3) of subdivision (a) of Section 25250.1 of the Health and
Safety Code.  
   (c) 
    (b)  A person or entity that generates used
industrial oil or 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  certified  used oil
recycling facility  certified pursuant to subdivision (a) of
Section 48662  or  to  an out-of-state  used oil
 recycling facility registered with the  Environmental
Protection Agency and operating in substantial compliance with
applicable regulatory standards of the state in which the recycling
facility is located   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. 11.    Section 48651.5 is added to the 
 Public Resources Code   , to read:  
   48651.5.  (a) 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) To further promote the safe management of used oil, the board,
using existing financial resources, shall identify and evaluate the
most environmentally beneficial uses of used lubricating oil. On or
before January 1, 2012, the board shall consider whether to implement
additional incentives pursuant to this section that prioritize the
highest and most beneficial uses of used lubricating oil. 
   SEC. 12.    Section 48652 of the   Public
Resources Code   is amended to read: 
   48652.   (a)    The board shall set the
recycling  incentive   amount  at not less
than  four cents ($0.04)   ten cents ($0.10)
 per quart. The  amount   board  may
 be  set  the amount  at an amount higher
than  four cents ($0.04)   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.  The
board shall not change the amount of the recycling incentive until at
least one year has passed since the amount was last set. The board
shall continue providing recycling incentives to certified used oil
collection centers at the previous rate for one month after setting
the recycling incentive at a different rate. The board shall not
raise the recycling incentive amount unless it finds that the raise
will not adversely affect funding required pursuant to Sections
48631, 48653, and 48660.5.  
   (b) The board shall set the rerefining incentive at not less than
two cents ($0.02) per quart. The board may set the amount at an
amount higher than two cents ($0.02) per quart 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 or implement other incentive options pursuant
to subdivision (b) of Section 48651.5 unless it finds that the raise
will not adversely affect funding required pursuant to Sections
48631, 48653, and 48660.5. 
   SEC. 13.    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,  or
  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) To make  block grants   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  , 
 in a  . Notwithstanding subdivision (b) of
Section 48656, the  total annual amount  shall  equal
 to ten   thirteen  million dollars
 ($10,000,000) or half   ($13,000,000), except
that the board may issue the payments as follows, if sufficient funds
are not available in the fund: 
    (A)    (i)     One-half
 of the amount  which   that  remains
in the fund after the expenditures are made pursuant to paragraphs
(1)  to (3), inclusive,   and (2)  and
subdivision (b)  , whichever amount is greater, multiplied by
the fraction equal to the population of cities and counties which
are eligible for block grants 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  . 
   (ii) The board may utilize additional amounts from the fund up to,
but not exceeding, thirteen million dollars ($13,000,000). 

   (B) Pursuant to paragraph (2) of subdivision (d) of Section 48691,
it is the intent of this paragraph that at least three million
dollars ($3,000,000) be made available specifically for used oil
filter collection and recycling programs.  
   (C) Payments 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.  
   (4) To implement Section 48660.5, in an amount not to exceed two
hundred thousand dollars ($200,000) annually.  
   (4) 
    (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)  The   (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, including implementation of the reporting,
monitoring, and enforcement program pursuant to subdivision (d) of
Section 48631, shall not exceed three million dollars ($3,000,000)
annually.
   (e) The Legislature hereby finds and declares its intent that the
sum of  two   three  hundred fifty thousand
dollars  ($250,000)   ($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
 1996-97   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. 14.    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  (4)  
(5)  of subdivision (a) of Section 48653, the balance remaining
in the fund shall be available to the board  for expenditure
solely  for the  following purposes: 
    (a)     The  implementation of
subdivisions (b) and (c) of Section 48631 and  Sections 48632
and 48660.5. The board shall not expend more than two hundred
thousand dollars ($200,000) to implement Section 48660.5 and at least
40 percent of the money remaining in the fund shall be expended for
the purposes of subdivision (a) of Section 48632, at least 10 percent
shall be expended for the purposes of subdivision (b) of Section
48632, at least 20 percent shall be expended for the purposes of
subdivision (c) of Section 48631, and at least 10, but not more than
15, percent shall be expended for the purposes of subdivision (c) of
Section 48632.   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 provided 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. 15.    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
specified  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  two   four  years. The board may
cancel the certification of a center if the board finds  ,
after a public hearing,  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)  (A)    Accept used
lubricating oil from the public at no charge during the hours
 between 8 a.m. and 8 p.m.  that the entity
operating as the center is open for business. 
   (B) The board may approve alternative hours for the acceptance of
used lubricating oil by an individual center if either of the
following conditions is met:  
   (i) The center accepts used lubricating oil for 12 continuous
hours daily.  
   (ii) The center demonstrates that compliance with Section 279.31
of Title 40 of the Code of Federal Regulations prevents the center
from complying with subparagraph (A). 
   (2) Pay to  any   a  person  , at
his or her request,  an amount equal to the recycling incentive
 which   that  the center will receive for
used lubricating oil brought to the center in containers by the
person. Nothing in this chapter prohibits  any  
a  person from donating used lubricating oil to a center.
 With the exception of centers that generate used lubricating
oil by servicing motor vehicles, the   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  , through onsite signs
and periodic advertising in local media,  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  exterior signs shall be posted
in a location that is easily visible from a public street 
 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  a combined symbolic and
information   an  exterior sign of  at
least two feet by three feet in size, or shall post an exterior
symbolic sign of at least two feet by 18 inches in size. If the
exterior symbolic sign is posted, the combined symbolic and
informational sign shall be concurrently posted   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. 
The exterior symbolic sign shall include the following words in a
manner specified by the board: "Used Oil Collection Center."
 
   (C) The informational portion of the combined signs shall include
the following words, in a manner specified by the board: "Used Oil
Collection Center--Recycling Incentive Paid for Used Lubricating Oil
in Containers During Business Hours from Members of the Public Who
Change Their Own Oil."  
   (D) A center that does not accept used lubricating oil from the
public during all of its business hours, but meets the requirements
of paragraph (1), shall indicate on the exterior sign the hours when
that used oil is accepted at no charge from the public and these
hours shall be posted instead of the business hours. 

   (E) 
    (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  which 
 that  has been contaminated in a manner other than that
which would occur through normal use.
   (d) Notwithstanding subdivision (b),  no   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. 16.    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  or  
a   ,  curbside collection program  , or an
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  or 
 ,  curbside collection program  , or an 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  halogenated
  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  any   a  calendar year, a used
oil collection center  or   ,  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. 17.    Section 48662 of the   Public
Resources Code   is amended to read: 
   48662.   (a)    The board shall certify or
recertify any 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.  If the board denies
certification, the board may subsequently certify a facility if it
determines that the facility meets the standards for certification.
 
   (b) Except as provided in paragraph (2) of subdivision (c), the
board shall require an out-of-state recycling facility, that receives
used oil from a California generator 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.  
   (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 as defined 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 as defined in Section 48620.2.  
   (C) The facility meets California standards for used oil handling,
waste classification, and disposal specified in Section____ of the
Health and Safety Code.  
   (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. 18.    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,  the  
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,  or  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  Environmental Protection Agency and permitted to
operate by the applicable regulatory agency of the state in which the
facility is located, or that is used to generate electricity
pursuant to subdivision (b) of Section 48651. 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  which   that  the board
may prescribe, and shall include copies of manifests or modified
manifest receipts from used oil haulers.  The 
    (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. 19.    Section 48673 of the   Public
Resources Code   is amended to read: 
   48673.   (a)    Beginning July 1, 1992, 
every   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.  The 
   (b)     A  facility  subject to
this section  shall provide estimates, where feasible, of the
amount  which   that  is used lubricating
oil and the amount  which   that  is used
industrial oil.  The 
    (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 
which   that  the board may prescribe.
   SEC. 20.    Section 48674 of the   Public
Resources Code   is amended to read: 
   48674.  After receiving  a block grant  
payments  pursuant to paragraph  (4)   (3)
 of subdivision (a) of Section 48653, each local government
shall submit  an annual   a  report to the
board,  on or before the date   in the manner
 specified by the board,  which   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
 the block grant was   payments were 
expended.
   SEC. 21.    Section 48690 of the   Public
Resources Code   is amended to read: 
   48690.  A local government is eligible for a  block grant
  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
grant   an advanced 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 
block grant   payment  to another entity that will
implement the program of a local government in lieu of making a
 block grant   payment  to that local
government with the concurrence of that local government.  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 provided that any program implemented within the
boundaries of the nonparticipating jurisdiction is approved by the
nonparticipating jurisdiction. 
   SEC. 22.    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, which   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  which shall inform   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) (1)    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  , provisions   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 
storm water   stormwater  runoff, including devices
to capture that  storm water   stormwater 
runoff, such as the use of storm drain inlet filter 
devices. 
    (2)     A 
 devices. A  local government shall not receive a 
block grant   payment  pursuant to Section 48690
for the purposes identified pursuant to  this  paragraph
 (1)  unless the local government certifies that it
has a  storm water   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  (1)  are consistent with that approved
 storm water   stormwater  management
program. 
   (2) A used oil filter collection and recycling program. 

  SECTION 1.    Section 48650 of the Public
Resources Code is amended to read:
   48650.  (a) Every oil manufacturer shall pay to the board, on or
before the last day of the month following each quarter, an amount
equal to four cents ($0.04) for every quart, or sixteen cents ($0.16)
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), payment is not
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) (1) The board may develop a program to provide incentives to
manufacturers of rerefined oil to develop additional capacity for the
rerefining of used oil.
   (2) For purposes of this subdivision, "rerefined oil" means a
lubricant base stock or oil base that has been derived from used oil
and meets all of the following criteria:
   (A) Processed using a series of mechanical or chemical methods, or
both, including, but not limited to, vacuum distillation, followed
by solvent refining or hydrotreating.
   (B) Capable of meeting the physical and compositional properties,
in addition to the contaminants and toxicological properties, as
those terms are defined under the American Society for Testing and
Materials (ASTM) D6074-99 standards.
   (C) Processed into a material that has a quality level suitable
for use in a finished lubricant.