BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 579
                                                                  Page  1

          Date of Hearing:  June 21, 2010

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                   SB 579 (Lowenthal) - As Amended:  April 8, 2010

           SENATE VOTE  :  31-0
           
          SUBJECT  :  Used oil

           SUMMARY  :  Makes technical and clean-up amendments to the  
          California Oil Recycling Enhancement Act.  

           EXISTING LAW  :

          1)Establishes the Department of Resources Recycling and Recovery  
            (DRRR), which administers various recycling and resource  
            programs for the state including but not limited to the  
            recycling of used oil.

          2)Establishes the California Oil Recycling Enhancement Act (Act)  
            which authorizes DRRR to award grants to and work with local  
            governments, non-profit entities and private companies in  
            order to develop and advance certain developments in  
            lubricating oil including but not limited to oil recycling,  
            collection, research, testing, and rerefining.   The Act is  
            administered by DRRR and is meant to discourage illegal  
            disposal of used oil.  Oil manufacturers are charged a fee on  
            all oil sold in California to fund local curbside oil pickup  
            programs, local collection facilities, and rebates to oil  
            manufacturers among other activities.

           FISCAL EFFECT  :  None

           COMMENTS  :

          This bill corrects references to the California Integrated Waste  
          Management Board (CIWMB) within SB 63 (Strickland), Chapter 21,  
          Statutes of 2009 which abolished the CIWMB and transferred all  
          of its duties and responsibilities to DRRR, which was created  
          within the Natural Resources Agency, under the direction of an  
          executive officer appointed by the Governor.

          SB 546 (Lowenthal), Chapter 353, Statutes of 2009 made broad  
          changes to the Act in order to encourage the best re-use of used  








                                                                  SB 579
                                                                  Page  2

          oil and reduce air pollution from the use of used oil.  These  
          changes and updates included raising the fee paid by lubricating  
          oil manufacturers from 16 cents to 24 cents per gallon,  
          increasing the incentives paid for the proper recycling of used  
          oil, and increasing the testing requirements for used oil  
          transporters, including an annual inspection.  The changes to  
          the Act made by SB 546 were also aimed at increasing revenue to  
          the state.  Funds associated with the Act provide funding for a  
          variety of purposes including establishment and maintenance of  
          local collection and recycling programs, research and  
          development for oil management, development of low-environmental  
          impact products associated with oil recycling, manufacturing,  
          and rerefining.  Also funded are programs aimed at increasing  
          oil efficiency and at the production of biofuels and synthetic  
          oil products.  Since the abolishment of the CIWMB, language in  
          the used oil management program needs to be updated to reflect  
          the new administrative structure from the previous board to the  
          current department.  
           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file

           Opposition 
           
          None on file

           
          Analysis Prepared by  :  Jessica Westbrook / NAT. RES. / (916)  
          319-2092