BILL ANALYSIS                                                                                                                                                                                                    



                                                                SB 579
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    SB 579
           AUTHOR:     Lowenthal
           AMENDED:    August 20, 2010
           FISCAL:     Yes               HEARING DATE:     August 25,  
           2010
           URGENCY:    No                CONSULTANT:       Caroll  
           Mortensen
            
           SUBJECT  :    CALIFORNIA OIL RECYCLING ENHANCEMENT ACT

            SUMMARY  :    
           
            Existing law  :

            1)Pursuant to Health and Safety Code (HSC) commencing with  
             25250, et seq., establishes management standards for used  
             oil including:

              a)   Defines "used oil and 'recycled oil" as oils that meet  
                specified characteristics including flashpoint and  
                contaminant levels.

              b)   Defines "used oil recycling facility", "used oil  
                storage facility" and "used oil transfer facility.

              c)   Establishes transportation, testing and storage  
                requirements.

            2)Pursuant to the California Oil Recycling Enhancement Act  
             (Act) commencing with 48600 of the Public Resources Code:

              a)   Prescribes a program to increase the amount of used  
                oil recycled in California.

              b)   Establishes a fee of 26 cents per gallon on new  
                lubricating oil sold in California that is paid by  
                manufacturers to fund the program activities under the  
                Act.










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              c)   Provides grants to local governments and other  
                entities to further the Act.  

            This bill  , as it left the Senate dealt with South Coast Air  
           Quality Management District air permits.  Those provisions  
           were stricken and now this bill:

           1) Clarifies definitions of "used oil hauler" and "used oil  
              recycling facility" for consistency with the Act.

           2) Corrects the date when the incentive for rerefined  
              lubricating oil shall be set by the Department of Resources  
              Recycling and Recover (DRRR).

           3) Deletes provisions related to rural jurisdictions and the  
              potential for increased used oil recycling program costs.

           4) Requires the report filed by used oil recycling facilities  
              to include information on the final disposition of the used  
              oil, including the volume of any residual products. 

           5) Changes the frequency of the report required of DRRR for  
              industrial and lubricating oil sales and recycling rates  
              from six months to annually.

           6) Changes an operational requirement for certified used oil  
              collection centers to require that the center accept used  
              oil during the hours the center is open for business,  
              rather than specified hours and days.

            COMMENTS  :

            Purpose of Bill  .  This bill makes technical changes to the  
           author's SB 546 (Chapter 353, Statutes of 2009), that 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. 

            SOURCE  :        Senator Lowenthal  









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           SUPPORT  :       None on file  

           OPPOSITION  :    None on file