BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 579
                                                                  Page  1

          SENATE THIRD READING
          SB 579 (Lowenthal)
          As Amended  August 20, 2010
          Majority vote

           SENATE VOTE  :31-0  
           
           NATURAL RESOURCES   7-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Chesbro, Gilmore,         |Ayes:|Fuentes, Conway,          |
          |     |Brownley,                 |     |Bradford,                 |
          |     |De Leon, Hill, Huffman,   |     |Charles Calderon, Coto,   |
          |     |Logue                     |     |Davis,                    |
          |     |                          |     |De Leon, Gatto, Hall,     |
          |     |                          |     |Harkey, Miller, Nielsen,  |
          |     |                          |     |Norby, Skinner, Solorio,  |
          |     |                          |     |Torlakson, Torrico        |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Makes technical and clean-up amendments to the  
          California Oil Recycling Enhancement Act.  

           EXISTING LAW  establishes: 

          1)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)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  :  According to the Assembly Appropriations  
          Committee, this bill would result in no state costs.








                                                                  SB 579
                                                                  Page  2


           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  
          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 and to make various technical and clarifying  
          changes to the program.  

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


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