BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 655|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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THIRD READING
Bill No: AB 655
Author: Quirk (D)
Amended: 8/1/16 in Senate
Vote: 21
SENATE AGRICULTURE COMMITTEE: 4-0, 6/21/16
AYES: Cannella, Berryhill, Pan, Wolk
NO VOTE RECORDED: Galgiani
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 6/29/16
AYES: Wieckowski, Gaines, Bates, Hill, Jackson, Leno, Pavley
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/8/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
ASSEMBLY FLOOR: 75-1, 4/27/15 - See last page for vote
SUBJECT: Rendering: inedible kitchen grease: registration
fee: additional fees
SOURCE: California Grain and Feed Association
Pacific Coast Rendering Association
DIGEST: This bill increases 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
authorizes CDFA to raise specified fees only upon recommendation
of the Rendering Industry Advisory Board.
ANALYSIS:
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Existing law:
1)Authorizes CDFA to charge additional fees necessary to cover
the cost of administering this program, not to exceed $300 per
year per vehicle and $3,000 per year per registered inedible
kitchen grease (IKG) transporter.
2)Exempts an individual from 75% of the additional
administrative fee if the individual is transporting IKG for
their own personal, noncommercial use as an alternative fuel,
provided specific requirements are met.
3)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 regulations.
4)Requires licensed renderers, collection center operators, and
registered transporters to retain specified records reflecting
sales and transportation of IKG for two years.
5)Prohibits anyone from accepting IKG from any unregistered
transporter and from possessing any IKG that is knowingly
stolen and provides for fines and/or imprisonment for
violations of these provisions.
6)Creates the Rendering Industry Advisory Board to provide
recommendations to the secretary of CDFA regarding rendering
and IKG enforcement, fees, annual budget, and regulations
(Food and Agricultural Code §19218).
This bill:
1)Increases from $3,000 to $10,000 the maximum annual fee
charged to each licensed renderer and collection center.
2)Increases from $100 to $250 the maximum registration fee for
transporters of IKG.
3)Increases 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.
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4)Authorizes the secretary, 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.
5)Makes technical and conforming changes.
Background
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. Due to the increasing value of biofuels,
IKG theft has proven to be a relatively easy and profitable
target for thieves, and has risen over the past several years.
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 (Food
and Agricultural Code §19300 et seq.).
Comments
Need for this bill. The Rendering Industry Advisory Board
discussed at their meeting on December 4, 2014, the need to
"select a sustainable mechanism to help support the Rendering
Enforcement Program and establish strategic priorities for
future program activities." A motion passed unanimously in
support of raising fees to support the program.
Secretary authority. This bill would authorize the secretary to
raise specified fees only upon recommendation of the Rendering
Industry Advisory Board. In current law, the secretary's
authority to raise fees is not restricted.
Liquid gold. IKG has become a valuable commodity in the last
decade, especially in light of rising gasoline prices and
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corresponding growth in the biodiesel fuel industry. Recycling
an otherwise 'grimy waste product' into a valuable feed or
biofuel resource is attractive and profitable. According to a
recent article, IKG is traded in commodity markets, and its
value has skyrocketed from $0.66 per gallon in April 2001 to
$3.68 per gallon in April 2011 ("Grease is gold; thieves get
bold." News & Observer, NC. June 1, 2011). A more recent
article published in The New Yorker states that a thief driving
down a strip-mall alleyway can collect $4,000 worth of IKG in
half an hour ("Hot Grease." The New Yorker. November 18,
2013.)
IKG theft program. According to the CDFA IKG Theft Program,
legitimate companies and restaurants are losing millions of
dollars to theft and container damage by IKG thieves. Thieves
break into storage containers and pump out the contents into a
truck, where a truckload could bring in as much as $600 at a
grease recycling center.
Environmental impact. In addition to theft concerns, the
process of rendering IKG creates harmful waste byproducts that
must be handled and disposed of properly so as not to damage or
contaminate waterways or the environment. It is unlikely that
black market IKG thieves are equipped to handle these chemicals.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee, 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.
SUPPORT: (Verified8/8/16)
California Grain and Feed Association (co-source)
Pacific Coast Rendering Association (co-source)
California Department of Food and Agriculture
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OPPOSITION: (Verified8/8/16)
None received
ARGUMENTS IN SUPPORT: According to the author, "The rendering
industry is critical to the health and safety of California.
Rendering is an effective tool in eliminating many human and
animal disease pathogens, protecting our groundwater and air
resources, and greatly reducing greenhouse gas emissions
compared to other alternative disposal options. [?] More funds
are needed to maintain an effective enforcement system for [the
IKG] program."
ASSEMBLY FLOOR: 75-1, 4/27/15
AYES: Achadjian, Alejo, Baker, Bigelow, Bloom, Bonilla, Bonta,
Brown, Burke, Calderon, Chang, Chau, Chávez, Chiu, Chu,
Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier,
Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia,
Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley,
Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim,
Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,
Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,
O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon,
Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone,
Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood,
Atkins
NOES: Travis Allen
NO VOTE RECORDED: Brough, Campos, Harper, Steinorth
Prepared by:Anne Megaro / AGRI. / (916) 651-1508
8/10/16 15:45:20
**** END ****
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