BILL ANALYSIS SB 1138 Page 1 Date of Hearing: June 16, 2010 ASSEMBLY COMMITTEE ON AGRICULTURE Cathleen Galgiani, Chair SB 1138 (Cedillo) - As Amended: April 27, 2010 SENATE VOTE : 28-0 SUBJECT : Rendering and pet food: Rendering Industry Advisory Board. SUMMARY : Creates the Rendering Industry Advisory Board (RIAB) consisting of nine members appointed by the Secretary of the California Department of Food and Agriculture (CDFA), and specifies their duties and responsibilities. Specifically, this bill : 1)Creates RIAB, consisting of nine appointees by CDFA, of which seven are required to be subject to the licensure by CDFA's rendering program, including but not limited to, renderers, dead haulers, and transporters of inedible kitchen grease. Two appointees shall be public members and any vacancies shall be filled by CDFA. RIAB members shall not receive a salary but are entitled to travel expenses in accordance with Department of Personnel Administration and funded by appropriations made to CDFA. 2)Requires one of the seven licensed appointees to have experience and expertise in non-traditional uses of rendered products, including but not limited to, energy use, alternative fuels, lubricants and other uses. Requires the public members to have experience and expertise in water quality, public owned treatment works and water infrastructure or law enforcement. 3)Establishes that the term of appointment shall be three years, except for the first appointees, which will be three groups, three appointees each serving three years, two years and one year, respectively. 4)Authorizes, in addition to the following established authority, that RIAB shall advise CDFA, make recommendations on all matters pertaining to this chapter including regulations required to accomplish the purpose of this chapter, elect a chairperson, and any other offices deemed SB 1138 Page 2 advisable. RIAB shall meet at the call of the chairperson or CDFA, or at the request of any three members; establish a quorum as six members, and a vote by the majority of members present after establishment of a quorum constitutes an act of RIAB. Board members, alternatives, employees or agents of RIAB shall not be personally liable or individually responsible for actions, errors, mistakes or other acts, either by commission or omission, except for individual acts of dishonesty or crime. 5)Authorizes RIAB to make recommendations to CDFA regarding: a) Adoption, modification, and repeal of regulations and procedures; b) Procedures for employment, training, supervision, and compensation of inspectors and other personnel; c) Rate and collection of license fees and penalties related thereto; d) Acquisition and use of equipment; and, e) Posting and noticing changes in bylaws, general procedures, or orders. 6)Requires RIAB to maintain accurate books and records of its activities, be subject to annual audit, provides the audit as part of an annual report to licensees of this chapter, prohibits proprietary information of any person subject to this chapter to be shared with any other person subject to this chapter, including but not limited, to material test results, individual fee or license payments, rendering process or formula information. 7)Requires CDFA to adopt regulations for RIAB to administer this article, and requires CDFA accept recommendations from RIAB, if they are practical and in the interest of the rendering industry and the public. Requires CDFA, within 30 days of receipt of recommendation, to notify RIAB of its acceptance or provide in writing the reasons for non-acceptance. EXISTING LAW defines rendering as the recycling, processing and conversion of animal and fish byproducts and carcasses, as well as kitchen grease, into fats, oils and proteins used primarily SB 1138 Page 3 as feed for the animal and pet food industries. Further, it establishes handling and processing requirements including licensure, fees, violations and penalties. (Food and Agricultural Code Sections 19200 - 19447) FISCAL EFFECT : According to the Senate Committee on Appropriations, any cost due to travel or adoption of regulations would be minor and absorbable. COMMENTS : According to the author, the rendering industry provides a critical health and safety network by taking waste products and turning them into valuable commodities while destroying disease vectors that impact both animals and human health. This industry provides an ecologically friendly option to landfills, composting, incineration or burial. One of the most valuable commodities to the renderers is inedible kitchen grease, which is used to produce, among other products, biodiesel. The oil is collected in receptacles at restaurants and markets, collected and hauled to rendering plants for processing. If not collected, this oil is often illegally disposed of into sewer systems, or dumped into storm drains creating significant environmental issues and systems handling problems. The sponsors state that the creation of RIAB will provide the industry the ability to better assist CDFA's program by providing official interaction on the variety of activities of the program, especially in dealing with enforcement to deal with public health and environmental protection. Further, RIAB can advise CDFA on interactions with local law enforcement and other governmental entities such as air and water regulators. The industry has been pushing CDFA to develop a regulatory package to require manifest for the transportation of rendering inputs, specifically inedible kitchen grease. CDFA began to develop such a package several years ago but it has been a very slow process, frustrating the industry. The regulatory package is believed to be currently in review prior to being handed over to the Office of Administrative Review. The committee may wish to consider if the reference to "or alternative members" (page 4, line 9) should be deleted since there are not provisions for alternatives members to be appointed. Further, there are two sections (19218.2 page 3, line 30 and 19218.5 page 4, line 23) that state RIAB "may make SB 1138 Page 4 recommendations" followed by similar but different items. The author may wish to consolidate these authorities. RELATED LEGISLATION : AB 2612's (Agriculture) Omnibus bill, among other issues, deals with expanding the definition of a "collection center" to include a "pet food processor", changes the license expiration date from a year of issuance to December 31 of each year, and exempts a "collection center" from registration as a transporter of kitchen grease if they are licensed as a collection center in accordance with this chapter. SB 1107 (Kehoe), requires the State Water Resources Control Board (SWRCB), on or before January 1, 2012, to develop, adopt, and implement, regulations that include specified requirements, for a manifest system to track the transportation of interceptor and trap grease, as specified. This bill requires SWRCB to impose a fee sufficient to cover the costs of implementing the act, and requires SWRCB to deposit all revenues from the fee in the Interceptor and Trap Grease Manifest Fund, which the bill establishes. This bill authorizes SWRCB to expend monies in the fund to implement the act, subject to appropriation for that purpose. AB 1249 (Galgiani), Chapter 280, Statutes of 2009, created an exception, upon the declaration of a state of emergency or a local emergency, to the rules governing the transportation of dead animals by licensed dead animal haulers, and extended the sunset date to January 1, 2016, for the CDFA administration fee for the Inedible Kitchen Grease Program. REGISTERED SUPPORT / OPPOSITION : Support California Grain and Feed Association (Sponsor) Pacific Coast Rendering Association (Sponsor) Opposition None on file. Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084