BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1107
                                                                  Page 1

          Date of Hearing:   June 15, 2010

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                  Pedro Nava, Chair
                     SB 1107 (Kehoe) - As Amended:  May 24, 2010

           SENATE VOTE  :   22-13
           
          SUBJECT  :   Water quality: interceptor and trap grease.

           SUMMARY  :   Requires the State Water Resources Control Board  
          (SWRCB), on or before January 1, 2012, to develop, adopt, and  
          implement regulations for a manifest system to track the  
          transportation of interceptor and trap grease.  Requires the  
          SWRCB to impose a fee on interceptor and trap grease haulers  
          sufficient to cover the tracking program.  Specifically,  this  
          bill  : 

          1)Makes legislative findings about the management of grease from  
            interceptors and traps.


          2)Defines terms, including: 


             a)   "Interceptor and trap grease" as grease that is  
               principally derived from food preparation, processing, or  
               waste, and that is removed from a grease trap or grease  
               interceptor. Interceptor and trap grease does not include  
               inedible kitchen grease; 


             b)   "Interceptor and trap grease hauler" as a transporter of  
               interceptor and trap grease (hauler); and,


             c)   "Manifest system" as a system for documenting and  
               tracking the transportation of interceptor and trap grease  
               from the point of pick up to the final destination.


          3)Requires the SWRCB to impose a fee on interceptor and trap  
            grease haulers (grease hauler fee) sufficient to cover the  
            costs of implementing the requirements of this bill.  Requires  
            the SWRCB to deposit all revenues from the grease hauler fee  








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            in the Interceptor and Trap Grease Manifest Fund (Fund).   
            Authorizes the SWRCB to expend funds in the Fund, upon  
            appropriation by the Legislature, to implement the provisions  
            of this bill.


          4)Requires the SWRCB, on or before January 1, 2012, to develop,  
            adopt, and implement regulations for a manifest system to  
            track the transportation of interceptor and trap grease.   
            Requires the SWRCB, in developing the regulations, to require,  
            at a minimum, any hauler to compile, and submit quarterly to  
            the SWRCB, an interceptor and trap grease tracking document  
            that includes specified information.  Requires the SWRCB to  
            post the tracking documents on its Internet Web site for  
            access by the public.


          5)Requires a hauler to have the interceptor and trap grease  
            tracking document in their possession while transporting  
            interceptor and trap grease.  Requires a hauler to show the  
            tracking document upon demand to specified public officials,  
            including to officers of the California Highway Patrol.   
            Requires a hauler to record and maintain for three years  
            documentation of compliance with this bill.  Requires a  
            hauler, whenever any contract for the transportation of  
            interceptor and trap grease is terminated or expires, to  
            notify local officials.


          6)Prohibits, on or after January 1, 2012, a person or entity  
            from engaging in the transportation of interceptor and trap  
            grease unless that person or entity is in compliance with the  
            provisions of this bill.


          7)Provides that the provisions of this bill shall not preempt a  
            local ordinance or rule that is more stringent.


          8)Authorizes the SWRCB to consult with the Department of Food  
            and Agriculture (CDFA) and any other state agencies when  
            carrying out the provisions of this bill.


           EXISTING LAW  :








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          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 the 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.  Requires the  
               records to 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 (RWQCBs)  
               in the California Environmental Protection Agency as "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 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 that it thereby places another person in imminent  








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               danger of death or serious bodily injury, faces specified  
               fines of up to $2 million and incarceration.  

          3)Pursuant to a SWRCB order on May 2, 2006, establishes a  
            statewide waste discharge requirement for sanitary sewer  
            systems.

           FISCAL EFFECT  :  Unknown.  

           COMMENTS  :   

           Purpose of the bill  :  According to the author's office, "Grease  
          trap waste, otherwise known as brown grease, consists of fats,  
          oils and grease from food preparation, processing, or waste that  
          is removed from grease traps at restaurants and similar  
          facilities.  This grease contains various contaminants,  
          including pesticides, industrial cleaners, and animal waste.   
          Every year, hundreds of grease-trap waste haulers collect  
          millions of gallons of grease trap wastewater from restaurants  
          and transport the material on our roads, bridges and highways to  
          disposal facilities. Typically, the material is taken to  
          wastewater treatment plants for disposal, but because it is  
          often hauled across multiple jurisdictions with little to no  
          oversight, it has become increasingly difficult to track how or  
          where it is disposed.  In addition, there is concern that,  
          because of inadequate tracking and enforcement, grease trap  
          waste haulers may be illegally dumping grease trap wastewater  
          back into our sewer systems.  Inadequate oversight of grease  
          trap waste haulers threatens our bays, beaches, and waterways.   
          SB 1107 will help prevent grease-related sanitary sewer  
          overflows by ensuring that haulers dispose of brown grease  
          properly."

           Fats, oils and grease (FOG)  :   According to the SWRCB, "brown  
          grease" consists of floatable fats, oils and grease (FOG),  
          settled solids and associated wastewater retained by grease  
          interceptors and grease traps in food service establishments.   
          In other words, brown grease is restaurant food and kitchen  
          waste that is commonly washed down sinks, dishwashers or floor  
          drains.  Brown grease differs from "yellow grease," which is  
          inedible and unadulterated spent FOG removed from a food service  
          establishment.  The major source of yellow grease is deep  
          frying.  Yellow grease is often recycled, as there is a market  
          for yellow grease as an animal feed additive; for fatty acids  
          and glycerol to create surfactants, plastics, resins, textiles  








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          and cosmetics; to make soap and lubricants; and to create  
          biodiesel fuel for vehicles.  Brown grease has no such market.   
          This bill sets up a tracking system for brown grease.

           FOG and the environment  :  According to the Sacramento District  
          Attorney, the illegal disposal of restaurant grease is a  
          significant statewide problem that can damage publically owned  
          sewage treatment facilities, cause expensive sewer back-ups and  
          lead to environmental damage, including water pollution.  In  
          2004, the California District Attorneys Association authored a  
          report entitled, "Grease:  The Prosecutors' Perspective," which  
          claims that a major cause of sewer spills that contaminate  
          drinking water supplies and pollute rivers, streams, and coastal  
          waters is the improper handling and disposal of grease from  
          commercial establishments.  The report notes that the disposal  
          of FOG interferes with the operation of sewage pumping stations  
          resulting in increased maintenance costs for publically owned  
          treatment works.  Grease from food preparation establishments  
          that enters public sewer systems contains various contaminants,  
          including pesticides, industrial cleaners, and animal waste.   
          The report observes that DAs have prosecuted waste haulers who  
          were found to be illegally dumping grease that had been taken  
          out of legitimate restaurant grease traps and interceptors.  

          In a May 2009, the SWRCB reported that over the time period  
          between 2006 and 2009, 19% of all reported sanitary sewer  
          overflows (public entities) were caused by FOG.  Also, over that  
          same time period, 14% of all private lateral sewage discharges  
          (private entities) were caused by FOG.

           Current FOG transportation program  :  The CDFA currently  
          regulates the transportation of FOG.  With his veto of AB 2633  
          (Frommer, 2004), the Governor acknowledged the environmental  
          damage that can be caused by the inappropriate handling,  
          transport and disposal of grease by saying "this product can  
          foul our land, rivers, and oceans."  He then directed the CDFA,  
          in coordination with the Integrated Waste Management Board, to  
          review and upgrade its existing grease hauling system to improve  
          the tracking and enforcement of laws governing disposal and  
          transportation of restaurant grease.

           Recent CDFA regulations on FOG  :  The CDFA recently released a  
          rule making package relating to the management of FOG, which is  
          currently undergoing public comment.  CDFA's proposal for  
          improving the tracking and management of interceptor or trap  








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          grease requires, effective January 1, 2012, vehicles used to  
          transport the contents of any grease traps or grease  
          interceptors to have a Global Positioning System (GPS)  
          installed, turned on at all times the vehicle is in operation,  
          and fully functioning.  The GPS device must record and save the  
          location of the hauler not less than every two minutes and  
          record the distance between stopping points.  The regulation  
          requires the owner/operator of the vehicle to keep all records  
          generated by the GPS for at least one year and to make the  
          records available immediately to CDFA personnel upon request.

           SWRCB Sanitary Sewer Overflow Reduction program  :  According to  
          the SWRCB, a sanitary sewer overflow (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.  SSOs pollute  
          surface and ground waters, threaten public health, adversely  
          affect aquatic life, and impair the recreational use and  
          aesthetic enjoyment of surface waters.  Typical consequences of  
          SSOs include the closure of beaches and other recreational  
          areas, inundated properties, and polluted rivers and streams.  

          To provide a consistent, statewide regulatory approach to  
          address SSOs, the SWRCB adopted Statewide General Waste  
          Discharge Requirements for Sanitary Sewer Systems, Water Quality  
          Order No. 2006-0003 (Sanitary Sewer Order) on May 2, 2006.  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 SSOs to the State Water  
          Board's online SSO database.

          Under SB 1107, CDFA would retain its program over yellow grease  
          and the SWRCB would oversee the tracking and monitoring of  
          interceptor and trap grease.

           Support and opposition  :  Supporters argue that the situation  
          with sewer spills due to FOG contamination and the resultant  
          environmental contamination and public health threat is not  
          improving.  They contend that CDFA's regulatory authority is  
          focused on "inedible kitchen grease," or yellow grease, and  
          currently lacks a process for tracking the final disposal of  
          brown grease.  They argue that since the SWRCB oversees the  
          Sanitary Sewer Overflow program and wastewater facilities, it is  
          the appropriate agency to track the disposal of brown grease.   








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          Under SB 1107, CDFA will continue to regulate yellow and brown  
          grease, but the SWRCB would be given narrow authority to  
          establish a manifest system for brown grease.  Supporters  
          contend that this will close the loop and ensure that the  
          appropriate agency has oversight over brown grease.

          Opponents argue that CDFA currently administers a comprehensive  
          program regulating kitchen grease transporters, including those  
          who handle interceptor trap grease.  They contend that the  
          problem of illegal dumping of interceptor grease into the sewer  
          system is a violation of current law and that if illegal dumping  
          of interceptor grease is widespread; SWRCB would be able to cite  
          those violators.  They contend that moving one element of the  
          current grease hauler regulatory program to the SWRCB would  
          create challenges, including a duplication of efforts, the need  
          to train additional state employees, an increase in regulatory  
          compliance costs, and potential reduction in the effectiveness  
          of the existing program.

           Related legislation :

          1)AB 2633 (Frommer, 2004) would have created 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.

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

          3)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.

          4)SB 1138 (Cedillo, 2010) would create a Rendering Industry  
            Advisory Board.  This bill is set for hearing by the Assembly  
            Agriculture Committee on June 16, 2010.

           Double referral to the Assembly Committee on Agriculture  :   
          Should this measure be approved by this Committee, the do-pass  
          motion must include the action to re-refer the bill to the  
          Assembly Committee on Agriculture.  








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           REGISTERED SUPPORT / OPPOSITION  :

           Support: 
           
            San Diego Coastkeeper (sponsor)
          Association of California Water Agencies (ACWA)
          California Association of Environmental Health Administrators
          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 Diego Audubon Society
          San Francisco Baykeeper
          Sierra Club California

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


           Analysis Prepared by  :    Shannon McKinney / E.S. & T.M. / (916)  
          319-3965