BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1107
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          Date of Hearing:   June 30, 2010

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                              Cathleen Galgiani, Chair
                     SB 1107 (Kehoe) - As Amended:  May 24, 2010

           SENATE VOTE  :   22-13

           E.S. & T.M.         6-3         
                                           
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          |Ayes:|Chesbro, Davis, Feuer,    |     |                          |
          |     |Monning, Nava, Ruskin     |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Blakeslee, Miller, Smyth  |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUBJECT  :  Water quality: interceptor and trap grease.

           SUMMARY  :  Requires the State Water Resources Control Board  
          (SWRCB) before January 1, 2012, to develop, adopt, and implement  
          regulations, that include specified requirements, for a manifest  
          system to track the transportation of interceptor and trap  
          grease; requires assessing fees to cover the cost of the  
          program, creates a new fund for those fees, and describes use of  
          those funds; defines interceptor and trap grease; adds  
          violations of new provisions or regulations adopted to carry out  
          those provision as suspension or revocation of registration.   
          Specifically,  this bill  :

          1)Creates a new violation for suspension or revocation of a  
            registration by violating the Interceptor and Trap Grease  
            Transportation provisions of the Water Code that are being  
            added by this bill.

          2)Adds to the definition of "grease waste hauler" to include  
            those subject to the Interceptor and Trap Grease  
            Transportation provisions of the Water Code that are being  
            added by this bill.

          3)Creates the Interceptor and Trap Grease Transportation  
            provisions in the Water Code that apply only to a manifest  
            system for interceptor and trap grease.









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          4)Makes legislative findings and declarations as follows:

             a)   The mismanagement of interceptor and trap grease causes  
               environmental, property, and public health damage, making  
               the need to develop a manifest system for its  
               transportation, and to integrate that program into existing  
               state and local efforts to keep grease out of sewer  
               systems, storm drains, and waters of the state.

             b)   SWRCB has determined that sewer overflows or spills  
               often contain high levels of suspended solids, pathogenic  
               organisms, toxic pollutants, nutrients, oxygen demanding  
               organic compounds, oil, grease, food waste, and other  
               pollutants.  Sewer overflows may cause nuisance or  
               temporarily exceed water quality standards; if sewer  
               overflows into surface waters or ocean waters, they may  
               cause a threat to public health, affect aquatic life and  
               impair public recreational use and aesthetic enjoyment of  
               surface water.

             c)   SWRCB has adopted waste discharge requirements for  
               cities in an effort to reduce sewer overflows that include  
               the mandate that cities adopt a program to reduce fats,  
               oils, and grease (FOG) from entering their systems.

             d)   States that inappropriate transportation of interceptor  
               and trap grease has been detrimental to human health and  
               the environment, posing a threat to waters of the state;  
               that it is imperative to ensure that interceptor and trap  
               grease is delivered to an appropriate facility for  
               recycling, treatment, or disposal, in order to avoid  
               improper disposal to land, surface waters, and sewers.

          5)Defines "Interceptor and trap grease" as that grease  
            principally derived from food preparation, processing or  
            waste, and that is removed from a grease trap or grease  
            interceptor, and it does not mean inedible kitchen grease as  
            defined in the Food and Agricultural Code.

          6)Defines "interceptor and trap grease hauler" as a transporter  
            of interceptor and trap grease subject to this chapter.

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








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          8)Requires 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.

          9)Requires SWRCB to impose fees on interceptor and trap grease  
            haulers to cover the cost of implementing this program.

          10)Requires SWRCB, in developing required regulations, at a  
            minimum to do all of the following:

             a)   Requires transporters of interceptor and trap grease to  
               comply with SWRCB's tracking document and submit legible  
               copy(s) on a quarterly basis to SWRCB.  Requires SWRCB to  
               post tracking documents on its internet site for public  
               access.

             b)   Requires the tracking document to have all of the  
               following:

               i)     Name and location of each location from which the  
                 transporter obtained interceptor and trap grease;

               ii)    The quality of interceptor and trap grease obtained  
                 at each location;

               iii)   The date on which the interceptor and trap grease is  
                 obtained;

               iv)    The location and date of the final disposition of  
                 the interceptor and trap grease; and,

               v)     The amount deposited and the end use of the  
                 interceptor and trap grease.

             c)   Requires the tracking document be in the possession of  
               the transporter while transporting the interceptor and trap  
               grease and made available upon demand by any SWRCB  
               representative, California Highway Patrol Officer, peace  
               offer, or any local public officer designated by the SWRCB.

             d)   Authorizes public owned treatment facilities to accept  
               interceptor and trap grease.

          11)Requires every transporter of interceptor and trap grease to  








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            record and maintain for three years, documentation of  
            compliance with this chapter.

          12)Requires transporters of interceptor and trap grease, upon  
            the termination of the hauling contract, to notify local  
            officials overseeing the applicable program for FOG, for the  
            county in which the product was collected.

          13)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 chapter.

          14)This chapter shall not preempt a local ordinance or rule that  
            is more stringent that this chapter.

          15)Creates the Interceptor and Trap Grease Manifest Fund (Fund)  
            and requires the SWRCB to deposit all fees collected under  
            this chapter into that Fund, and limits their use to the  
            implementation of this chapter, upon appropriation by the  
            Legislature.

          16)Permits SWRCB to consult with the California Department of  
            Food & Agriculture (CDFA) and any other state agencies, as  
            appropriate, to carry out the provisions of this chapter.

           EXISTING LAW  requires transporters of inedible kitchen grease  
          (IKG) to register with CDFA and pay specified fees; registrants  
          are required to provide, among other requirements, all driver's  
          names and license numbers; permits CDFA to refuse to issue  
          registration to any applicant, to suspend or revoke a  
          registration based upon a violation of this chapter or if they  
          have engaged, added, or abetted another person in a violation of  
          this chapter or of the federal Water Pollution Act, the  
          Porter-Cologne Water Quality Control Act, Fish and Game Code,  
          commercial weight limits, or commercial vehicles hours of  
          service.  (Food and Agricultural Code (FAC) Sections 19312 and  
          19314)

          Establishes SWRCB and regional water quality control boards in  
          the California Environmental Protection Agency as "the principal  
          state agencies with primary responsibility for the coordination  
          and control of water quality."   Makes it unlawful for any  
          person to knowingly or negligently introduce into a sewer system  
          or into a publicly-owned treatment works any pollutant or  








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          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.   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 danger of death or serious bodily injury, faces  
          specified fines of up to $2 million and incarceration.  (Water  
          Code Sections 13100 et. seq.)



          Defines IKG as any fat or used cooking greases and oils obtained  
          from any source.  Requires, as a condition of registration, that  
          applicants demonstrate the ability to respond to damages  
          resulting from hauling of IKG, cover public liability and  
          provide proof of insurance or surety bond of not less than $2  
          million, unless operating only one vehicle, then not less than  
          $1 million, when the vehicle gross weight rating is not more  
          than 10,000 pounds.  Requires renderers and transporters of IKG  
          to maintain records for two years of all IKG, its source, date  
          purchased and who handled it, and for one year the name,  
          address, quality and date of each location from which the  
          transporter obtained the IKG.  (FAC Sections 19310 and 19303)

          Makes it a crime for any person to cause or maliciously  
          discharge, dump, release, place, drop, pour, or otherwise  
          deposit, any substance capable of causing substantial damage or  
          harm to the operation of a public sewer sanitary facility, or to  
          deposit in commercial quantities any other substance, into a  
          manhole, cleanout, or other sanitary sewer facility, not  
          intended for use as a point of deposit for sewage, which is  
          connected to a public sanitary sewer system, without possessing  
          a written authorization.  Provides that any violations of this  
          section shall be punished by imprisonment in the county jail for  
          not more than one year, or by a fine of up to $25,000, or by  
          both a fine and imprisonment.  If the conviction is for a second  
          or subsequent violation, the punishment shall be imprisonment in  
          the county jail for not more than one year, or imprisonment in  
          the state prison for 16, 20, or 24 months, and by a fine of not  
          less than $5,000 or more than $25,000.  (Penal Code Section  
          374.2)








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           FISCAL EFFECT  :  Legislative Counsel has keyed this bill  
          "fiscal."

           COMMENTS  :  Interceptor and trap grease, also referred to as  
          "brown grease," is a by-product of food preparation and can be  
          generated by restaurants, caterers, food processors, and  
          homeowners.  Brown grease, coming from food and kitchen waste,  
          is commonly washed down sinks, dishwashers or floor drains; it  
          consists of FOG and can be collected in grease traps along with  
          water and solids.  These products are collected by registered  
          haulers and disposed through a variety of methods - rendering  
          plants, recycling or biofuel centers, landfills and publicly  
          owned treatment works (POTW).  Brown grease differs from "yellow  
          grease," which is inedible and unadulterated spent FOG removed  
          from a food service establishments.  The major source of yellow  
          grease comes from deep frying.  Yellow grease is a marketable  
          commodity and is typically recycled as an animal feed additive;  
          for fatty acids and glycerol to create surfactants, plastics,  
          resins, textiles and cosmetics; to make soap and lubricants;  
          and, to create biodiesel fuel for vehicles.  Brown grease has no  
          such marketability.

          According to the Author, because this material is often hauled  
          across multiple jurisdictions with little or no oversight, it  
          has become increasingly difficult to track how and where it is  
          disposed.  Further, because of inadequate tracking and  
          enforcement, grease trap haulers may be illegally dumping it  
          back into our sewer systems.  This threatens our bays, beaches  
          and waterways.  California communities are continuously  
          threatened by sewage system overflows caused by grease.   
          According to a May 2009 SWRCB report, since 2006, 19% of all  
          sanitation overflows were caused by grease deposition.  Further,  
          the California District Attorneys Association issued a report in  
          2004 that states between 2001 and the issuance of the report, 15  
          counties reported prosecuting 27 grease hauler's and that brown  
          grease is a major problem because it threatens our natural  
          resources, our health, and the cost of its remediation  
          dissipates precious tax dollars.  Since those prosecutions, few  
          others have followed.

          According to the California Association of Sanitation Districts,  
          while 19% of sanitary sewer overflows are caused by grease, very  
          few are the results of illegal grease dumping.  Almost all of  
          the overflows are caused by FOGs coming from residences.  The  








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          association members find that the increased legal action taken  
          by city and district attorneys has reduced illegal dumping and  
          the occurrences are infrequent.  They state that "grease haulers  
          are not the cause of spills."

          The Sponsors state that CDFA's primary focus is on yellow grease  
          and they do not currently have a tracking process for the final  
          disposition of brown grease, which contains mostly wastewater  
          and is typically disposed of at wastewater treatment facilities.  
           Further, that SWRCB oversees the sanitary sewer overflow  
          program and wastewater treatment facilities, it is the  
          appropriate agency for tracking the disposal of brown grease.   
          SB 1107 provides a narrow authority to SWRCB to track brown  
          grease, while CDFA's authority to regulate both brown and yellow  
          grease remains in statute.

          Other supporters state that according to the U.S. Environmental  
          Protection Agency, the Office of Water recently reported that  
          FOG caused 80% of sewer spills throughout the United States.   
          They state that SB 1107 provides for "sound policy" by mandating  
          a public tracking system from cradle to grave.  This will  
          enforce the clear directive of Governor Schwarzenegger's 2004  
          veto message of AB 1333 (Frommer).

          AB 1333 (Formmer), of 2004, required a manifest system be  
          developed by CDFA.  This bill was vetoed by the Governor and in  
          his veto message he directed CDFA to develop a manifest system,  
          under their existing authority.  CDFA proceeded through the  
          regulatory process, which ended when POTW would not agree to the  
          requirement of validating what was disposed of in their plants.   
          CDFA recently released a new rule-making package relating to the  
          management and tracking of FOG, which is currently undergoing  
          public comment.  CDFA's proposal for the tracking and management  
          of FOG, effective January 1, 2012, requires vehicles used to  
          transport the contents of any FOG to have a Global Positioning  
          System (GPS) installed, and 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.

          There remains disagreement over the benefits of a GPS versus a  








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          manifest system.  Supporters of SB 1107 don't believe tracking a  
          vehicle will provide enforcement agencies with the information  
          of the volumes of FOG that has been picked up, transported and  
          disposed of, in order to know if all of it has been properly  
          disposed of or if some have been put back into an interceptor or  
          grease trap, or illegally dumped.  CDFA believes the GPS will  
          provide evidence of illegal disposal by tracking the movement of  
          the vehicles.  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.  The committee may  
          wish to consider if a manifest system should be required?
          
          Currently, there is no communication between POTW and CDFA when  
          a grease spill occurs.  The committee may wish to consider if a  
          Memorandum of Understanding or Agreement should be developed  
          between CDFA and POTWs to notify CDFA of any sewer spillages  
          caused by grease?  This may assist CDFA in its enforcement  
          effort.

           PENDING LEGISLATION  :  

          AB 2612 (Agriculture), among other things, will expand the  
          definition of a "collection center" to include a "pet food  
          processor," will change the license expiration date from a year  
          of issuance to December 31 of each year, and will exempt a  
          "collection center" from registration as a transporter of IKG if  
          they are licensed as a collection center in accordance with this  
          chapter.

          SB 25 (Padilla) will specify that "renderer" and "rendering" do  
          not include facilities or activities that are already licensed  
          by the Department of Resources Recovery and Recycling. 

          SB 1138 (Cedillo) will create a Rendering Industry Advisory  
          Board with the authority to advise CDFA regarding its rendering  
          program.

           RELATED LEGISLATION  :

          AB 2981 (Agriculture), Chapter 535, Statutes of 2002.  Omnibus  
          language cleanup that dealt with various agricultural issues,  
          including, expanding the definition of a transporter for  








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          inedible kitchen grease and rendering to include those engaged  
          in similar activities.

          AB 1071 (Matthews), Chapter 929, Statutes of 2004.  Expanded the  
          use of commercial feed inspection funds to include research and  
          education until 2010;  extended the sunsets to 2011 for the  
          licensing of renderers and collection centers and the  
          registration of transporters of inedible kitchen grease and  
          collection centers; permitted the use of rendered products in  
          accordance with the United States Food and Drug Administration  
          rules and regulations; and, required a registrant to notify a  
          county health officer when a contract is terminated or expires.

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

          AB 2823 (Strom-Martin), Chapter 533, Statutes of 2002.  Rewrote  
          the California Organic Food Act to conform to NOP.  Broadened  
          the regulatory authority for CDFA and the Department of Health  
          Services to use of the word "organic" on a label and for  
          enforcement of processed food, pet food, nonfood plants and  
          cosmetics.  Additionally, changed the fee structure and  
          registration requirements for organic producers and processors,  
          including retailers.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
            San Diego Coastkeeper (sponsor)
          Association of California Water Agencies (ACWA)
          California Association of Environmental Health Administrators
          California Coastkeeper Alliance
          City of San Jose
            Clean Water Action
          Coastal Environmental Rights Foundation
          East Bay Municipal Utility District
          El Dorado Irrigation District
            Heal the Bay








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          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
          Department of Finance
          Pacific Coast Rendering Association


           Analysis Prepared by  :    Jim Collin / AGRI. / (916) 319-2084