BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  SB 1107
          Author:   Kehoe (D)
          Amended:  4/26/10
          Vote:     21

           
           SENATE FOOD AND AGRICULTURE COMMITTEE  :  3-1, 4/6/10
          AYES:  Florez, Hancock, Wolk
          NOES:  Hollingsworth
          NO VOTE RECOREDED:  Maldonado 

           SENATE ENV. QUALITY COMMITTEE  :  4-2, 4/19/10
          AYES:  Simitian, Corbett, Lowenthal, Pavley
          NOES:  Runner, Strickland
          NO VOTE RECORDED:  Hancock

           SENATE APPROPRIATIONS COMMITTEE  :  7-3, 5/3/10
          AYES:  Kehoe, Corbett, Leno, Price, Wolk, Wyland, Yee
          NOES:  Cox, Denham, Walters
          NO VOTE RECORDED:  Alquist


           SUBJECT  :    Water quality:  interceptor and trap grease

           SOURCE  :     San Diego Coastkeeper


           DIGEST  :    This bill enacts the Interceptor and Trap Grease  
          Transportation Act of 2010 which prohibits on and after  
          January 1, 2012, any person or entity from engaging in the  
          transportation of interceptor and trap grease, unless that  
          person or entity is registered with, and possesses a valid  
          registration certificate issued by State Water Resources  
                                                           CONTINUED





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          Control Board, as specified.

           ANALYSIS  :    

           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:

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

             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  







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                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.

             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.  

             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 to the SWRCB's  database.   
                These overflows are defined as any overflow, spill,  
                release, discharge or diversion of untreated or  
                partially treated wastewater from a sanitary sewer  
                system, and often contain high levels of suspended  
                solids, pathogenic organisms, toxic pollutants,  
                nutrients, oil, and grease.

          This bill:

          1. Establishes the Interceptor and Trap Grease  
             Transportation Act to be overseen by the SWRCB:







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

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

          4. 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.

          5. 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.

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

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

          8. Makes findings and declarations regarding the management  
             of ITG.

           Background
           
           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 percent  







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          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.

          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), a similar bill,  
          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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

                          Fiscal Impact (in thousands)

           Major Provisions                     2010-11     2011-12     
           2012-13          Fund
           
          Water Board enforcement       $390      $830$2,130      
          Special *

          * New special fund - Interceptor and Trap Grease Fund.  
          Fully offset by fee revenues.

          According to the Senate Appropriations Committee analysis,  
          the SWRCB estimates that it's ongoing costs to implement  
          the program, including auditing haulers and enforcing the  
          bills provisions, will be over $2 million per year, once  







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          the program is fully operational. Under the bill, those  
          costs would be paid for with fees charged to waste haulers.  
           The SWRCB estimates that there are about 350 haulers that  
          would be subject to the requirements of the bill. Annual  
          fees are estimated to be about $6,000 per year.

           SUPPORT  :   (Verified  5/4/10)

          San Diego Coastkeeper (source)
          Association of California Water Agencies
          California Coastkeeper Alliance
          Clean Water Action
          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  :    (Verified  5/4/10)

          California Grain and Feed Association
          City of Camarillo
          Pacific Coast Rendering Association

           ARGUMENTS IN SUPPORT  :    Supporters of this bill 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. 

           ARGUMENTS IN OPPOSITION  :    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 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.   







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          Moving one element of this program to SWRCB will 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.


          TSM:do  5/4/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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