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 ----------------------------------------------------------------- |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 FN: 0006386