BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 655 (Quirk) - Rendering: inedible kitchen grease:
registration fee: additional fees
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|Version: August 1, 2016 |Policy Vote: AGRI. 4 - 0, E.Q. |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 8, 2016 |Consultant: Robert Ingenito |
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This bill does not meet the criteria for referral to the
Suspense File.
Bill
Summary: AB 655 would (1) increase the registration fee and
other fees charged by the California Department of Food and
Agriculture (CDFA) to cover administrative costs associated with
rendering and the transportation of inedible kitchen grease, and
(2) authorize CDFA to raise specified fees only upon
recommendation of the Rendering Industry Advisory Board.
Fiscal
Impact: This bill would result in annual revenue gains, likely
in the hundreds of thousands of dollars (Food and Agriculture
Fund), offset by anticipated increased costs for enforcement
activities.
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Background: Inedible kitchen grease (IKG) is a byproduct of commercial
cooking that can be rendered into a valuable product and used
for biofuel or as an ingredient in animal feed. Typically,
restaurants will store IKG behind buildings and in alleyways
awaiting pickup and transportation to rendering facilities.
Inedible (used) kitchen grease has become a valuable commodity
in the last decade (rising up to six times in price), especially
in light of rising gasoline prices and corresponding growth in
the biodiesel fuel industry. Thus, recycling a waste product
into a valuable feed or biofuel resource has become attractive.
Due to the increasing value of biofuels, IKG theft has risen
over the past several years and has proven to be a relatively
easy and profitable target for thieves.
The CDFA Inedible Kitchen Grease Program was established in 1995
in response to increasing theft of IKG. This program is
responsible for regulating and enforcing IKG laws and works
closely with local law enforcement to conduct investigations and
prevent IKG theft. To assist in these efforts, CDFA requires
all renderers and collection centers to apply for and obtain a
license and requires all IKG transporters to be registered.
Existing law authorizes CDFA to revoke, suspend, or refuse to
issue a renderer or collection center license or transporter
registration under specified circumstances, including previous
violations of IKG transportation laws or
Current law (1) requires licensed renderers, collection center
operators, and registered transporters to retain specified
records reflecting sales and transportation of IKG for two
years, (2) prohibits anyone from accepting IKG from any
unregistered transporter and from possessing any IKG that is
knowingly stolen, and (3) provides for fines and/or imprisonment
for violations of these provisions.
Proposed Law:
This bill would, among other things, do the following:
Increase from $3,000 to $10,000 the maximum annual fee charged
to each licensed renderer and collection center.
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Increase from $100 to $250 the maximum registration fee for
transporters of IKG.
Increase from $300 to $500 per vehicle and from $3,000 to
$10,000 per registered transporter the maximum fees charged by
CDFA to cover administrative costs associated with
transportation of IKG.
Authorize CDFA, upon recommendation of the Rendering Industry
Advisory Board, to determine the additional fee amounts
necessary to provide the revenue needed to administer
provisions regarding the rendering, collecting, and
transporting of IKG.
Related
Legislation: AB 1566 (Holden), Chapter 595, Statutes of 2014.
Expands the authorization of CDFA and California Highway Patrol
employees to enforce inedible kitchen grease laws and
regulations. Extends the sunset date for the collection of
annual fees charged by CDFA; authorizes CDFA to deny, suspend,
or revoke licenses and registrations; increases violation
penalties; and makes conforming and technical changes.
Staff
Comments: Current-year revenues are approximately $540,000.
Under the bill, the maximum increase in revenues would be about
$660,000. This amount would only be realized if CDFA set the
fees at the maximum allowable amount.
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