BILL ANALYSIS                                                                                                                                                                                                    



                        SENATE FOOD and AGRICULTURE COMMITTEE
                            Senator Dean Florez, Chairman

          BILL NO:    SB 1107                   HEARING:  4/6/10
          AUTHOR:   Kehoe                       FISCAL:  Yes
          VERSION:  3/24/10                     CONSULTANT:  John Chandler  

          
                     Water quality: interceptor and trap grease.

          BACKGROUND AND EXISTING LAW

          The Food and Agriculture Code defines "interceptor and trap  
          grease" as grease principally derived from food preparation,  
          processing, or waste that is removed from a grease trap or  
          grease interceptor.  The Food and Agriculture Code defines  
          "inedible kitchen grease" as any fat or used cooking greases and  
          oils obtained from any source.

          The California Department of Food and Agriculture (CDFA) issues  
          licenses to individuals who operate rendering plants and  
          collection centers.  Additionally, a person who transports  
          inedible kitchen grease must be registered by CDFA.  The  
          registration application shall include the applicant's name and  
          address, a description of the operation, vehicles used in the  
          transportation, list of drivers, and any other information  
          deemed necessary.  The registration includes a $100 fee.  CDFA  
          has the authority to charge an additional fee of not more than  
          $300 per year per vehicle and not more than $3,000 per year per  
          registered transporter to cover the costs of administering the  
          program.

          Licensed transporters of inedible kitchen grease shall maintain  
          records for one year.  The records shall include the name and  
          address of each location from which the transporter obtained the  
          material, the quantity of material received, and the date the  
          material was obtained. 

          The State Water Resources Control Board (state board) was  
          created by the Legislature in 1967. The joint authority of water  
          allocation and water quality protection enables the state board  
          to provide comprehensive protection for California's waters.   
          The state board consists of five full-time salaried members  
          appointed to four-year terms by the governor and confirmed by  
          the Senate.

          On May 2, 2006, the state board adopted statewide waste  
          discharge requirements for sanitary sewer systems.  The Sanitary  
          Sewer Order requires public agencies that own or operate  




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          sanitary sewer systems to develop and implement sewer system  
          management plans and report all sanitary sewer overflows (SSO)  
          to the state board's online SSO database.  An SSO is any  
          overflow, spill, release, discharge or diversion of untreated or  
          partially treated wastewater from a sanitary sewer system. SSOs  
          often contain high levels of suspended solids, pathogenic  
          organisms, toxic pollutants, nutrients, oil, and grease.

          AB 2633 (Frommer) of 2004  attempted to create the Interceptor  
          Grease Transportation, Recycling and Disposal Act of 2004 to  
          manage the transportation and disposal of interceptor grease.   
          This bill was vetoed by the governor.

          AB 1333 (Frommer), Chapter 186, Statutes of 2006, made it a  
          misdemeanor to improperly dispose or incompletely remove grease  
          from traps or interceptors.

          AB 1065 (Matthews), Chapter 533, Statutes of 2005, established a  
          method for tracking inedible kitchen grease; defined  
          "interceptor grease"; separated for licensed renderers and  
          transporters; required transporters to be insured; changed the  
          suspension or revocation of a license or registration; and  
          expanded the conditions that may lead to a suspension or  
          revocation of a license or registration.

          SB 1138 (Cedillo) would create a Rendering Industry Advisory  
          Board.  This bill is currently in the Senate Food and  
          Agriculture Committee.

          PROPOSED LAW

          SB 1107 would transfer the authority for grease trap waste from  
          CDFA to the state board by establishing within the Water Code  
          the Interceptor and Trap Grease Transportation Act of 2010.   
          Specifically, the bill would do the following:

                 Move the definition of "interceptor and trap grease"  
               from the Food and Agriculture Code to the Water Code.

                 Specify that the definition of "inedible kitchen grease"  
               not include interceptor and trap grease.

                 Define "interceptor grease hauler" as a transporter of  
               interceptor and trap grease.

                 Authorize the state board to solicit and use expertise  
               from other state agencies, including the State Board of  





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               Equalization.

                 Specify that if the State Board of Equalization is  
               contracted to collect fees it be done pursuant to the Fee  
               Collection Procedures Law.

                 Require all persons transporting interceptor and trap  
               grease to register and possess valid registration issued by  
               the state board on or after January 1, 2012.  

                 Authorize the state board to impose a registration fee  
               to cover the costs of implementation and enforcement to be  
               deposited in the Interceptor and Trap Grease Fund.

                 Specify that each registration expires each year on  
               December 31.

                 Require that transporters provide proof of insurance  
               policy or surety bond of $2 million, or $1 million for  
               vehicles under 10,000 pounds gross weight to cover damages  
               of transporting grease.

                 Specify that local ordinances that are more stringent  
               shall not be preempted.

                 Require that registrations include the applicant's name  
               and address, description of operations, vehicles used in  
               transportation, list of drivers' names and license number  
               that transport interceptor grease, other information  
               required by the state board.

                 Authorize the state board to suspend, deny, revoke, or  
               refuse to issue a registration at any time if the applicant  
               disposed of interceptor grease at an unapproved facility;  
               reintroduced grease into a sanitary sewer or storm drain  
               without authority; commingled interceptor grease with other  
               forms of liquid waste; failed to maintain and submit  
               required tracking reports; failed to fully pump all grease,  
               water, greasy liquid, and solids from the grease  
               interceptor or trap; took interceptor and trap grease from  
               an unregistered hauler; or violated or aided any violation  
               of statute, regulation, or order relating to interceptor  
               and trap grease.

                 Require that vehicles transporting interceptor and trap  
               grease display the name of the owner in letters not less  
               than two inches high.





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                 Require that registered interceptor and trap grease  
               haulers transport the interceptor grease only to registered  
               facilities.

                 Establish procedures for registrant appeals of  
               suspensions, revocations, or non-renewal decisions of the  
               state board.

                 Require that interceptor and trap grease haulers compile  
               a tracking document submitted to the state board quarterly,  
               which would be available on the state board website for  
               public access.

                 Require that the quarterly tracking document include at  
               a minimum: name and address of each location interceptor  
               and trap grease was obtained, quantity of interceptor  
               grease obtained from each location, location of final  
               disposition of interceptor grease, amount deposited, and  
               the end use of interceptor grease, if known.

                 Require that interceptor and trap grease haulers have  
               the tracking document in their possession while  
               transporting the grease and available for inspection upon  
               demand by any peace officer or any officer designated by  
               the state board.

                 Require that transporters notify local officials of the  
               termination or expiration of a transportation contract.

                 Authorize the state board to contract out portions of  
               the program to an unspecified entity.

          
          COMMENTS

          1.Proponents state that SB 1107 is needed to address the  
            pervasive problem of interceptor grease entering our sewers,  
            causing clogs resulting in sewage spills.  In a May 2009  
            report, the state board reported that since 2006 19% of all  
            reported sanitary sewer overflows were caused by grease  
            deposition. Sewage spills can contaminate the public water  
            supply, endanger public health in water recreational areas,  
            and damage the environment. In 2004, the California District  
            Attorneys Association authored a report entitled  "Grease: The  
            Prosecutors' Perspective," which concludes that a major cause  
            of sewer spills that contaminate drinking water supplies and  





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            pollute rivers, streams, and coastal waters is the improper  
            handling and disposing of grease from commercial  
            establishments.  The improper management of fat, oil, and  
            grease wastes causes environmental and public health damage.   
            There is a need to develop a comprehensive statewide program  
            to prevent damage from improper management of these wastes and  
            to integrate this program with existing local efforts to keep  
            grease out of our sewer systems. 

            In the governor's veto message for AB 2633, he instructed CDFA  
            to review and upgrade its existing system to improve the  
            tracking and enforcement of laws governing disposal of  
            restaurant grease.  It has been five years since the  
            governor's message, and the department has yet to implement  
            regulations on an improved tracking system.

          2.Opponents state the problem of illegal dumping of interceptor  
            grease into the sewer system is currently illegal and a  
            violation of the Food and Agriculture Code, Vehicle Code,  
            Penal Code, and Water Code.  Opponents state that if the  
            illegal dumping of interceptor grease is widespread the state  
            board would be able to cite those violators under current law.  
             

            Further, opponents feel that the current regulatory system  
            provides a comprehensive approach, regulating renderers, dead  
            animal haulers, and kitchen grease transporters including  
            interceptor grease haulers.  Moving one element of this  
            program to the state board would create challenges, including  
            the need to train additional state employees with little  
            expertise in the grease hauling industry, increase in  
            regulatory costs, and potential reduction in effectiveness of  
            the existing program.

          3.Currently, renderers and transporters of inedible kitchen  
            grease are licensed by CDFA.  The licensed renderers are  
            required to keep records for inedible kitchen grease.  SB 1107  
            would establish a new program under the state board for the  
            interceptor and trap grease transportation portion of the CDFA  
            program.  With two programs monitoring the transport of  
            grease, the committee may wish to consider whether or not a  
            new program should be created to deal with interceptor grease  
            under a different agency instead of just expanding the current  
            program.

          4.On page 8, line 27, there appears to be a technical error.   
            The committee may wish to consider amending the (b) to (c) to  





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            conform with the rest of the section.

          5.SB 1107 establishes the "Interceptor and Trap Grease Penalty  
            Fund;" however, it authorizes the board to expend money from  
            the "Interceptor and Trap Grease Fund."  This appears to be a  
            drafting error.  The committee may wish to consider deleting  
            the word "Penalty" from the established fund for clarity.

          6.The last provision of this bill authorizes the board to  
            contract out portions of the tracking program to an  
            unspecified entity.  The committee may wish to consider if  
            this entity should be identified.

          7.The Senate Rules Committee has doubled referred this bill to  
            the Senate Environmental Quality Committee as the second  
            committee of referral.  Therefore, if this measure is approved  
            by this committee, the motion should include an action to  
            re-refer the bill to the Senate Committee on Environmental  
            Quality.

          SUPPORT
          
          California Coastkeeper Alliance
          Coastal Environmental Rights Foundation
          Heal the Bay
          Orange County Coastkeeper
          Russian Riverkeeper
          San Diego Coastkeeper
          San Francisco Baykeeper
          Sierra Club California

          OPPOSITION
          
          California Grain and Feed Association
          Pacific Coast Rendering Association