BILL NUMBER: SB 1979	CHAPTERED
	BILL TEXT

	CHAPTER   901
	FILED WITH SECRETARY OF STATE   SEPTEMBER 25, 1996
	APPROVED BY GOVERNOR   SEPTEMBER 24, 1996
	PASSED THE SENATE   AUGUST 26, 1996
	PASSED THE ASSEMBLY   AUGUST 21, 1996
	AMENDED IN ASSEMBLY   JULY 7, 1996
	AMENDED IN ASSEMBLY   JUNE 24, 1996
	AMENDED IN ASSEMBLY   JUNE 6, 1996
	AMENDED IN SENATE   MAY 20, 1996
	AMENDED IN SENATE   MAY 7, 1996
	AMENDED IN SENATE   APRIL 8, 1996

INTRODUCED BY  Senator O'Connell

                        FEBRUARY 23, 1996

   An act to amend Section 25250.1 of the Health and Safety Code, and
to amend Sections 42700, 48632, 48651, and 48656 of the Public
Resources Code, relating to used oil, and making an appropriation
therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1979, O'Connell.  Used oil recycling.
   (1) Existing law requires used oil, as defined, to be managed as a
hazardous waste until it has been shown to meet specified purity
standards or is excluded from regulation as a hazardous waste because
it is a recyclable material.  For purposes of the provisions
regulating the management of used oil, used oil does not include oil
that contains more than 1,000 ppm halogens and oil is presumed to be
a hazardous waste if it has been mixed with halogenated hazardous
waste.  A person may rebut the presumption by demonstrating that the
used oil does not contain hazardous waste, including if the used oil
does not contain more than 3000 ppm total halogens and meets other
requirements.  A violation of laws regulating used oil is a crime.
   This bill would revise the definition of used oil to delete the
requirement that the used oil does not contain more than 3000 ppm
halogens, for purposes of that presumption, and would instead allow
the presumption to be rebutted if it is demonstrated that the used
oil that is the source of the total halogens solely meets those other
requirements.  The bill would thereby impose a state-mandated local
program by revising the definition of a crime.
   (2) Existing law, the California Integrated Waste Management Act
of 1989, requires the Director of Transportation, upon consultation
with the California Integrated Waste Management Board, to review and
modify all bid specifications relating to the purchase of specified
paving materials and backfill materials using certain recycled
materials.
   This bill would additionally include, as a recycled material,
asphalt flux produced from the reprocessing or re-refining of used
oil.
   (3) Existing law, the California Oil Recycling Enhancement Act,
requires every oil manufacturer, as defined, to pay a specified
charge to the board.  Those payments are deposited in the California
Used Oil Recycling Fund, and the money in the fund is continuously
appropriated to the board for specified purposes, including the
issuance of grants or loans for research, testing, and demonstration
projects to develop , among other things, uses for recycled or used
oil.
   This bill would instead authorize the board to issue those grants
or loans for projects to develop uses for products resulting from the
recycling of used oil.  The bill would require at least 10%, but not
more than 15%, of the balance remaining in the fund, after specified
expenditures are made, to be expended for that purpose, thereby
making an appropriation.
  (4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 25250.1 of the Health and Safety Code is
amended to read:
   25250.1.  (a) As used in this article, the following terms have
the following meaning:
   (1) (A) "Used oil" means any oil that has been refined from crude
oil, or any synthetic oil, that has been used, and, as a result of
use or as a consequence of extended storage, or spillage, has been
contaminated with physical or chemical impurities.  Examples of used
oil are spent lubricating fluids which have been removed from an
engine crankcase, transmission, gearbox, or differential of an
automobile, bus, truck, vessel, plane, heavy equipment, or machinery
powered by an internal combustion engine; industrial oils, including
compressor, turbine, and bearing oil; hydraulic oil; metal-working
oil; refrigeration oil; and railroad drainings.
   (B) "Used oil" does not include any of the following:
   (i) Oil which has a flashpoint below 100 degrees Fahrenheit or
which has been mixed with hazardous waste, other than minimal amounts
of vehicle fuel.
   (ii) (I) Wastewater, the discharge of which is subject to
regulation under either Section 307(b) or 402 of the Clean Water Act,
including wastewaters at facilities which have eliminated the
discharge of wastewater, contaminated with de minimis quantities of
used oil.
   (II) For purposes of this clause, "de minimis quantities of used
oil" are small spills, leaks, or drippings from pumps, machinery,
pipes, and other similar equipment during normal operations, or small
amounts of oil lost to the wastewater treatment system during
washing or draining operations.
   (III) This exception does not apply if the used oil is discarded
as a result of abnormal manufacturing operations resulting in
substantial leaks, spills, or other releases or to used oil recovered
from wastewaters.
   (iii) Used oil re-refining distillation bottoms that are used as
feedstock to manufacture asphalt products.
   (iv) Oil which contains polychlorinated biphenyls (PCBs) at a
concentration of 5 ppm or greater.
   (v) (I) Oil containing more than 1000 ppm total halogens, which
shall be presumed to be a hazardous waste because it has been mixed
with halogenated hazardous waste listed in Subpart D (commencing with
Section 261.30) of Part 261 of Title 40 of the Code of Federal
Regulations.
   (II) A person may rebut the presumption specified in subclause (I)
by demonstrating that the used oil does not contain hazardous waste,
including, but not limited to, in the manner specified in subclause
(III).
   (III) The presumption specified in subclause (I) is rebutted if it
is demonstrated that the used oil that is the source of total
halogens at a concentration of more than 1000 ppm is solely either
household waste, as defined in Section 261.4(b)(1) of Title 40 of the
Code of Federal Regulations, or is collected from conditionally
exempt small quantity generators, as defined in Section 261.5 of
Title 40 of the Code of Federal Regulations.  Nothing in this
subclause shall be construed as authorizing any person to violate the
prohibition specified in Section 25250.7.
   (2) "Board" means the California Integrated Waste Management
Board.
   (3) (A) "Recycled oil" means any oil, produced from used oil,
which has been prepared for reuse and which achieves minimum
standards of purity, in liquid form, as established by the
department.
   (B) The following standards of purity are in effect for recycled
oil unless the department, by regulation, establishes more stringent
standards, and are the only allowed exceptions to the criteria
adopted pursuant to Section 25141:
   (i) Flashpoint:  minimum standards set by the American Society for
Testing and Materials for the recycled products.  However, recycled
oil to be burned for energy recovery shall have a minimum flashpoint
of 100 degrees Fahrenheit.
   (ii) Total lead:  50 mg/kg or less.
   (iii) Total arsenic:  5 mg/kg or less.
   (iv) Total chromium:  10 mg/kg or less.
   (v) Total cadmium:  2 mg/kg or less.
   (vi) Total halogens:  3000 mg/kg or less.  However, recycled oil
shall be demonstrated by testing to contain not more than 1000 mg/kg
total halogens listed in Appendix VIII of Part 261 (commencing with
Section 261.1) of Title 40 of the Code of Federal Regulations.
   (vii) Total polychlorinated biphenyls (PCBs):  2 mg/kg or less.
   (C) Compliance with the specifications of subparagraph (B) shall
not be met by blending or diluting used oil with crude or virgin oil
and shall be determined in accordance with the procedures for
identification and listing of hazardous waste adopted in regulations
by the department.  Persons authorized by the department to recycle
oil shall maintain records of volumes and characteristics of incoming
used oil and outgoing recycled oil and documentation concerning the
recycling technology utilized to demonstrate to the satisfaction of
the department or other enforcement agencies that the recycling has
been achieved in compliance with this subdivision.
   (D) This paragraph does not apply to oil that is to be disposed of
or used in a manner constituting disposal.
   (4) "Used oil recycling facility" means a facility which
reprocesses or re-refines used oil.
   (5) "Used oil storage facility" means a storage facility, as
defined in subdivision (b) of Section 25123.3, which stores used oil.

   (6) "Used oil transfer facility" means a transfer facility, as
defined in subdivision (a) of Section 25123.3, that either stores
used oil for periods greater than six days, or greater than 10 days
for transfer facilities in areas zoned industrial by the local
planning agency, or that transfers used oil from one container to
another.
   (b) (1) Unless otherwise specified, used oil which meets all of
the following conditions is not subject to regulation by the
department:
   (A) The used oil meets the standards set forth in paragraph (3) of
subdivision (a).
   (B) The used oil is not hazardous pursuant to the criteria adopted
pursuant to Section 25141 for constituents other than those listed
in paragraph (3) of subdivision (a).
   (C) The used oil is not mixed with any waste listed as a hazardous
waste in Part 261 (commencing with Section 261.1) of Chapter 1 of
Title 40 of the Code of Federal Regulations.
   (2) Used oil recycling facilities that are the first to claim that
the used oil meets the requirements specified in paragraph (1) shall
maintain an operating log and copies of certification forms as
specified in Section 25250.19.  Any person who generates used oil,
and who claims that the used oil is exempt from regulation pursuant
to this subdivision, shall notify the department, in writing, of that
claim and shall comply with the testing and recordkeeping
requirements of Section 25250.19 prior to its reuse.  In any action
to enforce this article, the burden is on the generator or recycling
facility, whichever first claimed that the used oil meets the
standards and criteria, and on the transporter or the user of the
used oil, whichever has possession, to prove that the oil meets those
standards and criteria.
  SEC. 2.  Section 42700 of the Public Resources Code is amended to
read:
   42700.  The Director of Transportation, upon consultation with the
board, shall review and modify all bid specifications relating to
the purchase of paving materials, and base, subbase, and pervious
backfill materials, using recycled materials.  The recycled materials
shall include, but are not limited to, recycled asphalt pavement,
crushed concrete subbase, foundry slag, asphalt flux produced from
the reprocessing or re-refining of used oil, and paving materials
utilizing recycled materials, including, but not limited to, crumb
rubber from automobile tires, ash, and glass and glassy aggregates.
The specifications shall be based on standards developed by the
Department of Transportation for recycled paving materials and for
recycled base, subbase, and pervious backfill materials.  The
standards and specifications shall provide for the use of recycled
materials and shall not reduce the quality standards for highway and
road construction.
  SEC. 3.  Section 48632 of the Public Resources Code is amended to
read:
   48632.  The board may issue grants or loans pursuant to Section
48631 for only the following purposes:
   (a) To local governments for providing opportunities for used
lubricating oil collection, which are in addition to those included
in the local used oil collection programs adopted pursuant to Article
10 (commencing with Section 48690).
   (b) To nonprofit entities for projects, which may include one or
more of the following programs or activities:
   (1) Establishing used lubricating oil collection centers.
   (2) Providing containers and other materials and supplies that the
public can utilize in an environmentally sound manner to store used
lubricating oil for pickup or return to a used oil collection center.

   (3) Obtaining equipment and establishing procedures to comply with
federal, state, and local law regarding the collection, handling,
and storage of used oil.
   (c) Research, testing, and demonstration projects for collection
technologies and to develop uses for products resulting from the
recycling of used oil.
  SEC. 4.  Section 48651 of the Public Resources Code is amended to
read:
   48651.  (a) The board shall pay a recycling incentive to every
industrial generator, curbside collection program, and certified used
oil collection center, for used lubricating oil collected from the
public, or generated by the certified used oil collection center or
the industrial generator, and transported by a used oil hauler to the
facilities specified in Section 48623.
   (b) The board shall pay a recycling incentive to an electric
utility, as defined in Section 25108, for used lubricating oil
generated and used by the electric utility for electrical generation
if the electric utility's use of the used lubricating oil meets the
requirements of subparagraph (C) of paragraph (2) of subdivision (d)
of Section 25143.2 of the Health and Safety Code and the used oil is
in compliance with the standards for recycled oil established in
paragraph (3) of subdivision (a) of Section 25250.1 of the Health and
Safety Code.
   (c) A person or entity that generates used industrial oil or a
used oil storage facility or a used oil transfer facility that
accepts used oil shall cause that oil to be transported by a used oil
hauler to a certified used oil recycling facility or an out-of-state
recycling facility registered with the Environmental Protection
Agency and operating in substantial compliance with applicable
regulatory standards of the state in which the recycling facility is
located.
  SEC. 5.  Section 48656 of the Public Resources Code is amended to
read:
   48656.  After all of the expenditures pursuant to Section 48653
have been made, notwithstanding paragraph (4) of subdivision (a) of
Section 48653, the balance remaining in the fund shall be available
to the board for expenditure solely for the implementation of
subdivisions (b) and (c) of Section 48631 and Sections 48632 and
48660.5.  The board shall not expend more than two hundred thousand
dollars ($200,000) to implement Section 48660.5 and at least 40
percent of the money remaining in the fund shall be expended for the
purposes of subdivision (a) of Section 48632, at least 10 percent
shall be expended for the purposes of subdivision (b) of Section
48632, at least 20 percent shall be expended for the purposes of
subdivision (c) of Section 48631, and at least 10, but not more than
15, percent shall be expended for the purposes of subdivision (c) of
Section 48632.
  SEC. 6.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
   Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.