BILL ANALYSIS Ó
AB 1566
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CONCURRENCE IN SENATE AMENDMENTS
AB 1566 (Holden)
As Amended July 1, 2014
Majority vote
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|ASSEMBLY: |73-0 |(May 23, 2014) |SENATE: |35-0 |(August 11, |
| | | | | |2014) |
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Original Committee Reference: TRANS.
SUMMARY : Makes a number of changes to statutes and enforcement
related to the regulation and transportation of inedible kitchen
grease (IKG).
The Senate amendments :
1) Extends the period the State Department of Food and
Agriculture (DFA) can levy a fee on licensed renderers and
collection centers from July 1, 2015, to July 1, 2020, that
is used to cover DFA program administrative costs.
2) Extends the period DFA can levy a fee on licensed
transporters (per vehicle) from July 1, 2015, to July 1,
2020, that is used to cover DFA program administrative
costs.
3) Permits a peace officer to issue a notice to correct
(fix-it ticket) to a driver who is operating an IKG vehicle
without the proper registration decal and/or business
information affixed to the vehicle accordingly.
EXISTING LAW :
1)Requires a licensed renderer to keep records for two years
encompassing specific information in connection to the receipt
of IKG provided by a transporter.
2)Requires all records retained by a licensed renderer or
transporter to be maintained at the renderer and transporter's
regular place of business. Requires records to be provided on
demand by any peace officer and authorizes any peace officer
to inspect any premises maintained by a licensed renderer or
transporter at any time during normal business hours to ensure
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compliance with record maintenance requirements.
3)Imposes various fines, as specified, on any licensed renderer
or transporter who fails to keep specified records or any
licensed renderer or transporter who refuses to exhibit any
required records upon demand by any peace officer.
4)Prohibits any person from engaging in the transportation of
IKG without being registered with DFA and without being in
possession of a valid registration certificate issued by DMV.
5)Prohibits any person who is not a registered transporter or
licensed renderer of IKG to transport that product from any
location within the state to any location outside of
California.
FISCAL EFFECT : According to the Senate Appropriations
Committee, this bill would result in minor and absorbable costs
to both CDFA and CHP.
COMMENTS : According to the author, this bill "provides the
tools for state and local law enforcement to use in combatting
the growing occurrence of inedible kitchen grease theft. As
biofuels continue to grow as a source of alternative energy, the
value of kitchen grease will continue to skyrocket."
Over the past 15 years IKG theft has been a growing problem for
state regulators and law enforcement. In 2000, IKG was being
sold for approximately $0.08 per pound. In 2014, IKG can be
sold for up to four times that amount contingent on market
conditions. Specifically, in "high market" periods when the
market experiences spikes in gasoline and ethanol prices, the
demand grows for IKG to serve as a popular form of biodiesel to
fuel cars and trucks. A recent article in the New Yorker
reported that the increased demand for IKG has "provided
criminals with a potent incentive to get to spent oil before
renderers do." In fact, at the 2014 California Biodiesel and
Renewable Diesel Conference it was reported that approximately
40% to 50% of IKG is stolen by unlicensed transporters during
"high market" conditions. In "low market" conditions,
approximately 20% to 30% of IKG is stolen by unlicensed
transporters.
Additionally, IKG theft imposes ongoing negative public safety
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and environmental impacts to local communities. The New Yorker
further reported that unlicensed transporters use bolt cutters
to remove locks on container lids, cut through steel with
blowtorches, and use vacuum hoses to suck grease into tanker
trucks with little, if any, concern for IKG leakage or spillage.
Further reports have indicated these tanker trucks are
typically improperly built, do not possess the proper licensing,
and do not appropriately dispose of IKG byproducts (e.g. animal
bones).
DFA's Inedible Kitchen Grease Program (IKGP) is the regulatory
and enforcement entity for the IKG industry. IKGP was
established in 1995 due to great amount of theft of IKG
beginning in the early '90s. The IKGP mission is to stop the
theft of IKG and related damage to IKG containers through
investigations and cooperation with local law enforcement and
local district attorneys. However, while the IKGP has continued
to make progress in enforcing program regulations, biofuels
continue to grow as a viable source of alternative energy, which
will in turn, continue to increase the value of IKG.
The author of this bill asserts that this bill is designed to
"get ahead of the grease thieves, limit grease theft, and
preserve the input market for clean biofuels." This bill aims
to clarify existing law and increase enforcement and penalties
related to collecting and transporting IKG. Specifically, to
incentivize program compliance, fines are increased for IKG
transporters for IKGP violations, law enforcement will be
allowed to impound a transporting vehicle involved in IKG theft
to ensure the vehicle is safely taken off the streets and the
IKG is appropriately transported by a licensed transporter, and
licensed transporters and renderers will be required to provide
specific identification on their transport vehicles and maintain
detailed records in order for law enforcement to better identify
illegal IKG transporters.
Analysis Prepared by : Manny Leon / TRANS. / (916) 319-2093
FN: 0004374
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