BILL ANALYSIS                                                                                                                                                                                                    



                                                               SB 1107
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    SB 1107           
           AUTHOR:     Kehoe
           AMENDED:    April 8, 2010
           FISCAL:     Yes               HEARING DATE:     April 19, 2010
           URGENCY:    No                CONSULTANT:       Caroll  
           Mortensen
            
           SUBJECT  :    WATER QUALITY:  INTERCEPTOR AND TRAP 
                       GREASE

            SUMMARY  :    
           
            Existing law  :

           1)Pursuant to the Food and Agriculture Code:

              a)   Defines "inedible kitchen grease" as any fat or used  
                cooking greases and oils obtained from any source.

              b)   Establishes standards for transporters of inedible  
                kitchen grease including a registration system and  
                tracking system. 

              c)   Establishes a registration fee of $100 for  
                transporters and grants authority to California  
                Department of Food and Agriculture (CDFA) 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.

              d)   Requires licensed transporters of inedible kitchen  
                grease to maintain records for two years.  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.

           2)Under the Porter-Cologne Water Quality Control Act:









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              a)   Establishes the State Water Resources Control Board  
                (SWRCB) and regional water quality control boards  
                (RWQCBs) in the California Environmental Protection  
                Agency, which must be "the principal state agencies with  
                primary responsibility for the coordination and control  
                of water quality".  (Water Code 13000 et seq.).

              b)   Provides that it is unlawful for any person to  
                knowingly or negligently introduce into a sewer system or  
                into a publicly-owned treatment works any pollutant or  
                hazardous substance that the person knew or reasonably  
                should have known could cause personal injury or property  
                damage, or to introduce any pollutant or hazardous  
                substance into a sewer system or into a publicly-owned  
                treatment works, except in accordance with any applicable  
                pretreatment requirements, which pollutant or hazardous  
                substance causes the treatment works to violate waste  
                discharge requirements.  (13387).

              c)   Provides that any person who knowingly introduces a  
                hazardous substance into a sewer, as specified, and who  
                knows at the time that the person thereby places another  
                person in imminent danger of death or serious bodily  
                injury, on the first offense it must be punishable by a  
                fine of not more than $250,000 or imprisonment in the  
                state prison for not more than 15 years, or both.  A  
                second or subsequent offense will be punishable by a fine  
                of not more than $500,000 or imprisonment in the state  
                prison of not more than 30 years, or both.  If the crime  
                is committed by an organization, on the first offense it  
                must be subject to a fine of not more than $1 million.  A  
                second or subsequent offense must be punishable by a fine  
                of not more than $2 million.  (13387 (d)(1)).

              d)   Pursuant to a SWRCB order on May 2, 2006, established  
                a statewide waste discharge requirement for sanitary  
                sewer systems.  The Sanitary Sewer Order requires public  
                agencies that own or operate sanitary sewer systems to  
                develop and implement sewer system management plans and  
                report all sanitary sewer overflows (SSO) to the SWRCB's  
                SSO database.  An SSO is any overflow, spill, release,  
                discharge or diversion of untreated or partially treated  









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                wastewater from a sanitary sewer system. SSOs often  
                contain high levels of suspended solids, pathogenic  
                organisms, toxic pollutants, nutrients, oil, and grease.

            This bill  establishes the Interceptor and Trap Grease  
           Transportation Act to be overseen by SWRCB that:

           1)Defines Interceptor and Trap Grease (ITG) as grease from  
             food preparation, processing or waste that does not include  
             inedible kitchen grease (yellow grease).

           2)Establishes a registration process for ITG haulers including  
             specified performance requirements and payment of a fee by  
             ITG haulers.

           3)Requires ITG haulers to maintain and submit to SWRCB an ITG  
             waste tracking document, as prescribed by SWRCB, which  
             accounts for the amounts and locations of ITG that is picked  
             up and its final disposition.

           4)Authorizes SWRCB 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.

           5)Establishes the ITG Fund to receive the fees paid by the ITG  
             haulers and to be used by SWRCB to implement these new  
             requirements. 

           6)Makes conforming changes to the Food and Agriculture Code  
             and the Public Resources Code.

           7)Makes findings and declarations regarding the management of  
             ITG.










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            COMMENTS :

            1)Purpose of Bill  .  According to the author, "Inadequate  
             oversight of grease trap waste haulers threatens our bays,  
             beaches, and water ways.  California communities are  
             continuously threatened by sewer system overflows caused by  
             grease."  Every year, hundred of grease waste haulers  
             collect millions of gallons of grease trap waste from  
             restaurants and other sources.  However, current law does  
             not require haulers to indicate where they finally dispose  
             of the waste.

             Currently, renderers and transporters of inedible kitchen  
             grease are licensed by CDFA.  The licensed renderers are  
             required to keep records for inedible kitchen grease, but  
             not information on the final disposition.

             This bill establishes a new program under SWRCB for the  
             interceptor and trap grease (not the yellow or kitchen  
             grease) management portion of the waste stream.

            2)Background  . 

               a)   Grease is the Word Again?   As shown by the legislative  
                history below, the management of grease has been under  
                scrutiny for quite some time. Unfortunately, even with  
                Legislative and Administration direction, there remains a  
                loophole in the tracking of this waste stream.   
                Especially the grease from interceptors and traps which  
                does not have the strong market for reuse and recycling  
                for biodiesel and other products that the yellow or  
                kitchen grease does.

                Interceptor and trap grease or "Brown Grease" is the  
                by-product collected in the restaurant/food establishment  
                setting that ends up down the drain through the sink,  
                dishwasher or restaurant floor.  Examples include, food  
                scraps in the dishwasher, residue on the floors, fats,  
                oils, grease, grit and other kitchen waste.  (Interceptor  
                grease differs from "yellow grease", which is a  
                by-product of cooking oil.  Generally, yellow grease has  
                value and can be sold, is placed in barrels behind the  
                restaurant and can be recycled into products, such as  









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                bio-diesel.) 

               b)   Scope of the Problem  .  Interceptor grease entering  
                sewers is a pervasive problem, causing clogs and  
                resulting in sewage spills.  Grease in sewers is a major  
                cause of sewer spills on our streets and into our bays  
                and beaches. In a May 2009 report, SWRCB 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 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.

               c)   Current Program  .  CDFA currently oversees the  
                transportation of grease, however that program lacks a  
                tracking system that mandates that haulers demonstrate  
                where they finally deposit or dispose of what they pick  
                up. Thus leaving a loophole in tracking the final  
                destination.

                In 2004 with the veto of AB 2633 (Frommer), the Governor  
                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 CDFA has yet to  
                implement regulations on an improved tracking system.

                VETOED    DATE: 09/29/2004

                To the Members of the California State Assembly:   I am  
                returning
                Assembly Bill 2633 without my signature.

                I appreciate the environmental damage that can be caused  
                by the









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                inappropriate handling, transport and disposal of grease,  
                including
                how this product can foul our land, rivers, and oceans.   
                The
                California Department of Food and Agriculture has a  
                system of
                regulating grease hauling while the Integrated Waste  
                Management Board
                regulates waste.  We have existing regulatory authority  
                to address
                this issue.  I am directing the Department of Food and  
                Agriculture in
                coordination with the Integrated Waste Management Board  
                to review
                and upgrade its existing system to improve the tracking  
                and
                enforcement of laws governing disposal and transportation  
                of
                restaurant grease.

                The author has been working diligently on this issue;  
                however there has been no improvement in the situation.   
                The approach in SB 1107 establishes a system for  
                management and tracking of interceptor and trap grease  
                that mirrors the CDFA system.  Under this bill, CDFA  
                would retain its program over the kitchen or yellow  
                grease and SWRCB would oversee the interceptor and trap  
                grease.  SWRCB has jurisdiction over water quality and  
                has programs and standards in place to assist with the  
                management of grease through its Fats, Oils and Greases  
                (FOG) program.

            3)Support and Opposition Arguments  .  Supporters of the measure  
             contend that the current system is lacking and that a system  
             that places oversight with an agency with jurisdiction over  
             quality is necessary.  They cite that the situations with  
             sewer spills and the resulting environmental contamination  
             and threat to public health are not improving and action  
             must be taken. 

             Opponents state the problem of illegal dumping of  
             interceptor grease into the sewer system is currently  
             illegal and a violation of current law.  They argue that if  









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             the illegal dumping of interceptor grease is widespread,  
             SWRCB would be able to cite those violators under current  
             law.  They also 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 SWRCB 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.
            
           4)Related Legislation  .

              a)   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.

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

              c)   AB 1065 (Matthews) Chapter 533, Statutes of 2005,  
                established a method for tracking inedible kitchen  
                grease; defined "interceptor grease"; 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.

              d)   SB 1138 (Cedillo) would create a Rendering Industry  
                Advisory Board.  This bill is set for hearing in the  
                Committee on April 19, 2010.

            5)Previous Committee  .  SB 1107 was approved by the Senate Food  
             and Agriculture Committee on April 6, 2010 (3-1).
            
           SOURCE  :        San Diego Coastkeeper
            
           SUPPORT  :  California Coastkeeper Alliance
                          Clean Water Action









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                          Coastal Environmental Rights Foundation
                          East Bay Municipal Utility District
                          Heal the Bay
                          Liquid Environmental Solutions
                          Orange County Coastkeeper
                          Russian Riverkeeper
                          San Francisco Baykeeper
                          Sierra Club California
            
           OPPOSITION :    California Grain and Feed Association
                          Pacific Coast Rendering Association