Bill Text: CA AB907 | 2009-2010 | Regular Session | Amended


Bill Title: California Oil Recycling Enhancement Act: rerefined oil.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2009-09-08 - To inactive file on motion of Senator Hancock. [AB907 Detail]

Download: California-2009-AB907-Amended.html
BILL NUMBER: AB 907	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 17, 2009
	AMENDED IN SENATE  JULY 14, 2009
	AMENDED IN ASSEMBLY  MAY 11, 2009
	AMENDED IN ASSEMBLY  MAY 4, 2009
	AMENDED IN ASSEMBLY  APRIL 14, 2009

INTRODUCED BY   Assembly Member Chesbro

                        FEBRUARY 26, 2009

   An act to amend Sections 48100, 48623,  48624,  48631,
48632, 48645, 48650, 48651, 48652, 48653, 48656, 48660, 48660.5, 
48661,  48662, 48670, 48673, 48674, 48690, and 48691 of, to add
Sections 48620.2 and 48651.5 to, and to repeal Sections 48633 and
48634 of, the Public Resources Code, relating to oil, and making an
appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 907, as amended, Chesbro. California Oil Recycling Enhancement
Act: rerefined oil.
   (1) The California Oil Recycling Enhancement Act, administered by
the California Integrated Waste Management Board, among other things,
defines terms and establishes the used oil recycling program,
consisting of a recycling incentive system, grants or loans to local
governments and nonprofit entities for specified purposes related to
used lubricating oil collection and recycling and stormwater
pollution from used oil and oil byproducts, development and
implementation of an information and education program to promote
alternatives to the illegal disposal of used oil, and a reporting,
monitoring, and enforcement program to ensure that laws relating to
used oil are properly carried out. A violation of the act is a crime.

   This bill would define the term "rerefined oil" and revise the
definition of "used oil hauler" for purposes of the act, and would
revise and recast the used oil recycling program, so that, among
other things, it would no longer provide for loans, and it would
provide for the development and implementation of an information and
education program to promote methods to reduce the amounts of used
oil generated and to promote the use of rerefined oil in automotive
and industrial lubricants. The bill would revise the purposes for
which grants under the program may be made and would authorize
 grants   contracts additionally to be made
 to   with  private entities.
   (2) The act generally requires every oil manufacturer to pay to
the board an amount equal to $0.04 for every quart, or $0.16 for
every gallon, of lubricating oil sold or transferred in the state, or
imported into the state for use in the state.
   This bill  would increase those amounts to $0.06 per quart
and $0.24 per gallon, would authorize the board to adjust the fee
annually, as specified, and  would exempt from the payment
of the fee oil sold as finished lubricant containing  at least
 70% rerefined base lubricant.
   (3) The act requires the board to pay a recycling incentive to
every industrial generator, curbside collection program, and
certified used oil collection center, for used lubricating oil if
certain conditions apply, and to an electric utility, as defined, for
certain used lubricating oil.  Existing law requires the
board to set the recycling incentive amount at not less than $0.04
per quart, and authorizes the board to set the amount at a higher
amount if the board determines that a higher amount is necessary to
promote recycling of used lubricating oil and sufficient funds are
available in the California Used Oil Recycling Fund. 
   This bill would revise the conditions applicable to used
lubricating oil that must be met before the board is required to pay
the recycling incentive, and would delete the requirement that the
board pay the recycling incentive to an electric utility for certain
used lubricating oil.
   The bill additionally would require the board to pay a rerefining
incentive to certain recycling facilities that produce rerefined base
lubricant meeting specified requirements. The bill would require the
board, on or before January 1, 2012, to consider whether to
implement additional incentives that prioritize the highest and most
beneficial uses of used lubricating oil.
   The bill would require the board  to increase the
recycling incentive to not less than $0.10 per quart and  to
set the rerefining incentive at not less than $0.02 per gallon, and
would authorize the board to increase those amounts if it determines
that a higher amount is necessary to promote the collection and
recycling of used lubricating oil or the rerefining of used
lubricating oil, as applicable, and sufficient funds are available in
the California Used Oil Recycling Fund.
   (4) The act requires the board to deposit the charges described in
(2) above, civil penalties and fines paid pursuant to the act, and
all other revenues received pursuant to the act, in the California
Used Oil Recycling Fund, part of which is continuously appropriated
to the board to pay recycling incentives, to provide a reserve for
contingencies, to make specified payments for implementation of
certain local used oil collection programs in a total amount equal to
$10,000,000 or one-half the amount remaining in the fund after
specified expenditures are made,  whichever is, greater  for
certain grants and loans  ,  and for reimbursement
for certain disposal costs of contaminated used oil.  The act
authorizes money in the fund, upon appropriation by the Legislature,
among other things, to be transferred to the Farm and Ranch Solid
Waste Cleanup and Abatement Account in the General Fund, to pay costs
associated with implementing and operating the farm and ranch solid
waste cleanup and abatement grant program.  
   This bill would increase the amount available for payments for
implementation of local used oil collection programs to $13,000,000,
thereby making an appropriation. The bill would prohibit money in the
California Used Oil Recycling Fund attributable to increasing or
adjusting the charge on oil manufacturers described in (2) above from
being transferred to the Farm and Ranch Solid Waste Cleanup and
Abatement Account.  
   The bill would recast the method by which payments for the
implementation of the local used oil collection programs are
determined. The bill would provide the total annual amounts for these
payments would equal $10,000,000 subject to certain conditions.

   (5) The act prohibits a used oil collection center from being
eligible for the payment of recycling incentives until the board has
certified the center. Certification eligibility includes compliance
with public notice and operational requirements. The act requires a
center to reapply for certification every 2 years.
   This bill instead would require a center to reapply for
certification every 4 years and would revise the certification
eligibility requirements.
   (6) Under the act, if the board finds that a shipment of used oil
from a certified used oil collection center or a curbside collection
program is contaminated by hazardous material and other specified
requirements are met, the board, upon application of the center or
program, is required to reimburse the center or program for the
additional disposal cost of the used oil, subject to eligibility
requirements and payment limitations.
   This bill would include uncertified publicly funded used oil
collection centers in small rural counties in those entities eligible
to receive that reimbursement, and would modify the eligibility
requirements and payment limitations.
   (7) The act imposes certification requirements for used oil
recycling facilities.
   This bill also would impose certification requirements on
rerefiners of used oil. The bill would require certain out-of-state
recycling facilities to make specified certifications of compliance
with certain federal and state laws, thereby imposing a
state-mandated local program, by creating a new crime.
   (8) The act imposes reporting requirements on industrial
generators of used lubricating oil, used oil collection centers, and
curbside collection programs, to be eligible for payment of a
recycling incentive.
   This bill would revise those reporting requirements.
   (9) This bill would make other related changes to the act.
   (10) Because a violation of the act is a crime, the bill would
impose a state-mandated local program by, among other things,
bringing rerefiners of used lubricating oil within the ambit of the
act.
   (11) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation:  yes   no
 . Fiscal committee: yes. State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 48100 of the Public Resources Code is amended
to read:
   48100.  (a) The Legislature hereby finds and declares that illegal
disposal of solid waste on property owned by innocent parties is a
longstanding problem needing attention and that grants provided under
this chapter will support the cleanup of farm and ranch property.
   (b) The board shall establish a farm and ranch solid waste cleanup
and abatement grant program for the purposes of cleaning up and
abating the effects of illegally disposed solid waste pursuant to
this chapter.
   (c) (1) The Farm and Ranch Solid Waste Cleanup and Abatement
Account is hereby created in the General Fund and may be expended by
the board, upon appropriation by the Legislature in the annual Budget
Act, for the purposes of this chapter.
   (2) The following funds shall be deposited into the account:
   (A) Money appropriated by the Legislature from the Integrated
Waste Management Fund or the California Used Oil Recycling Fund to
the board for the grant program, or from the California Tire
Recycling Management Fund to the board for the purposes set forth in
paragraph (10) of subdivision (b) of Section 42889.
   (B) Notwithstanding Section 16475 of the Government Code, any
interest earned on the money in the account.
   (3) The board may expend the money in the account for both of the
following purposes:
   (A) To pay the costs of implementing this chapter, which costs
shall not exceed 7 percent of the funds available for the grant
program.
   (B) To make payments for grants authorized by this chapter.
   (4) Upon authorization by the Legislature in the annual Budget
Act, the sum of all funds transferred into the account from other
funds or accounts shall not exceed one million dollars ($1,000,000)
annually. 
   (5) Except as provided in paragraph (2) of subdivision (c) of
Section 48653 and notwithstanding any other provision of law,

    (5)     Notwithstanding   any
other provision of law,  the grant program shall be funded from
the following funds:
   (A) The Integrated Waste Management Fund.
   (B) The California Tire Recycling Management Fund, for the
purposes set forth in paragraph (10) of subdivision (b) of Section
42889.
   (C) The California Used Oil Recycling Fund.
   (d) For purposes of this chapter, the following definitions shall
apply:
   (1) "Native American tribe" has the same meaning as tribe, as
defined in subdivision (b) of Section 44201.
   (2) "Public entity" means a city, county, or resource conservation
district.
  SEC. 2.  Section 48620.2 is added to the Public Resources Code, to
read:
   48620.2.  "Rerefined oil" means a lubricant base stock or oil base
that has been derived from used oil and meets all the following
criteria:
   (a) Processed using a series of mechanical or chemical methods, or
both, including, but not limited to, vacuum distillation, followed
by solvent refining or hydrotreating.
   (b) Capable of meeting the Physical and Compositional Properties,
in addition to the Contaminants and Toxicological Properties, as
defined under the American Society for Testing and Materials (ASTM)
D6074-99 standard.
   (c) Processed into a material that has a quality level suitable
for use in a finished lubricant.
  SEC. 3.  Section 48623 of the Public Resources Code is amended to
read:
   48623.  "Used oil hauler" means a hazardous waste hauler
registered pursuant to Chapter 6.5 (commencing with Section 25100) of
Division 20 of the Health and Safety Code who  transports
used oil to a used oil recycling facility certified pursuant to
Article 7 (commencing with Section 48660), to a used oil storage
facility, to a used oil transfer facility, or to an out-of-state
recycling facility registered with the board to be operating in
substantial compliance with Part 279 (commencing with Section 279.1)
of Title 40 of the Code of Federal Regulations.  
transports used oil to a used oil recycling facility that is
certified or registered with the board   pursuant to Section
48662, to a used oil storage facility, or to a used oil transfer
facility.
   SEC. 4.    Section 48624 of the   Public
Resources Code   is amended to read: 
   48624.  "Used oil recycling facility" means a facility 
which   that  is issued a hazardous waste
facilities permit or grant of interim status by the department
pursuant to Section 25200 or 25200.5 of the Health and Safety Code to
convert used oil into recycled oil  or an out-of-state facility
operating in substantial compliance with Part 279 (commencing with
Section 279.1) of Title 40 of the Code of Federal Regulations for the
purposes of recycling used oil  .
   SEC. 4.   SEC. 5.   Section 48631 of the
Public Resources Code is amended to read:
   48631.  The used oil recycling program shall include, but is not
limited to, all of the following:
   (a) A recycling incentive system as described in Article 6
(commencing with Section 48650). 
   (b) Public and private partnership, including, but not limited to,
grants and contracts, between the board and local governments,
nonprofit entities, and private entities for the purposes specified

    (b)     Grants   and contracts
between the board and local governments, and contracts between the
board and private entities for the purposes specified  in
Section 48632.
   (c) Development and implementation of an information and education
program to promote safe and proper used oil collection and treatment
methods, methods to reduce used oil generation, and advances in new
and existing technologies, including, but not limited to, use of
rerefined oil in automotive and industrial lubricants.
   (d) A reporting, monitoring, and enforcement program to ensure
that all statutes and regulations relating to used oil are properly
carried out.
   SEC. 5.   SEC. 6.   Section 48632 of the
Public Resources Code is amended to read:
   48632.  The board may, pursuant to subdivision (b) of Section
 48631, issue grants to or contract with local governments,
nonprofit entities, and private entities, for any of the following
purposes:   48631, issue grants to and contract with
local government, and contract with private entities, with priority
given to grant projects that promote partnerships between local
governments and private entities, for any of the following purposes:

   (a) Providing and maintaining collection and recycling
opportunities for used lubricating oil and filters that are in
addition to those included in the local used oil collection programs
adopted pursuant to Article 10 (commencing with Section 48690).
   (b) Research, testing, and demonstration projects for in-service
uses, collection technologies, and end-of-life used oil management.
   (c) Developing uses and markets for low environmental impact
products resulting from the recycling of used oil, including, but not
limited to, promoting the manufacture of rerefined lubricating oil.
   (d) Product advancements and developments in lubricating oil
resulting from, but not limited to, new requirements or technologies
in fuel efficiency and performance, synthetic or biobased lubricants,
alternative fuels, and methods to extend lubricating oil life.
   (e) Education and mitigation projects relating to stormwater
pollution and its impacts on receiving waters, soils, and oceans.
   (f) A local government shall not receive a grant or contract
pursuant to this section for any purpose identified in subdivision
(e) unless the local government certifies that it has a stormwater
management program that is approved by the appropriate California
regional water quality control board and that the project approved
for funding under subdivision (e) is consistent with that approved
stormwater management program.
   (g) An information and education program pursuant to subdivision
(c) of Section 48631.
   SEC. 6.   SEC. 7.  Section 48633 of the
Public Resources Code is repealed.
   SEC. 7.   SEC. 8.   Section 48634 of the
Public Resources Code is repealed.
   SEC. 8.   SEC. 9.   Section 48645 of the
Public Resources Code is amended to read:
   48645.  Except for payments made to local governments pursuant to
paragraph (3) of subdivision (a) of Section 48653, final approval of
applicant and project eligibility standards, scoring and evaluation
processes, and awarding of grants under this chapter shall be made in
a public meeting of, and pursuant to a vote of, the board.
   SEC. 9.   SEC. 10.   Section 48650 of
the Public Resources Code is amended to read:
   48650.  (a) Every oil manufacturer shall pay to the board, on or
before the last day of the month following each quarter, an amount
equal to  six cents ($0.06)   four cents ($0.04)
 for every quart, or  twenty-four cents ($0.24)
  sixteen cents ($0.16)  for every gallon, of
lubricating oil sold or transferred in the state, or imported into
the state for use in the state in that quarter. For lubricating oil
sold by weight, a weight to volume conversion factor of 7.5 pounds
per gallon shall be used to determine the fee.  The board may
adjust the fee not more than once annually to reflect increases or
decreases in the cost-of-living index during the prior fiscal year as
measured by the California Consumer Price Index issued by the
Department of Industrial Relations or a successor agency. 
Except as provided in subdivision (b), no payment is required for oil
that meets any of the following:
   (1) Oil for which a payment has already been made to the board
pursuant to this section.
   (2) Oil exported or sold for export from the state.
   (3) Oil sold for use in vessels operated in interstate or foreign
commerce.
   (4) Oil imported into the state in the engine crankcase,
transmission, gear box, or differential of an automobile, bus, truck,
vessel, plane, train, or heavy equipment or machinery.
   (5) Bulk oil imported into, transferred in, or sold in the state
to a motor carrier, as defined in Section 408 of the Vehicle Code,
and used in a vehicle designated in subdivisions (a) and (b) of
Section 34500 of the Vehicle Code.
   (6) The oil otherwise subject to payment pursuant to this
subdivision has a volume of five gallons or less.
   (7) Oil sold as a finished lubricant containing  at least
 70 percent rerefined base lubricant.
   (b) If oil exempted from payment pursuant to subdivision (a) is
subsequently sold or transferred for use, or is used, in this state,
and the use does not qualify for exemption pursuant to subdivision
(a), the entity that sells, transfers, or uses the oil for a purpose
that is not exempt from payment, shall make the payment specified in
subdivision (a).
   SEC. 10.   SEC. 11.   Section 48651 of
the Public Resources Code is amended to read:
   48651.  (a) The board shall pay a recycling incentive pursuant to
subdivision (a) of Section 48652 to every industrial generator,
curbside collection program, and certified used oil collection
center, for used lubricating oil collected from the public or
generated by the industrial generator, if either of the following
conditions apply:
   (1) The used lubricating oil is transported by a used oil hauler
to a used oil storage facility or to a used oil transfer facility.
   (2) The used lubricating oil is transported by a used oil hauler
directly to an in-state used oil recycling facility that is certified
pursuant to subdivision (a) of Section 48662, or to an out-of-state
used oil recycling facility registered pursuant to subdivision (b) of
Section 48662 or certified pursuant to  paragraph (2) of 
subdivision (c) of Section 48662.
   (b) A used oil storage facility or a used oil transfer facility
that accepts used oil pursuant to paragraph (1) of subdivision (a)
shall cause that oil to be transported by a used oil hauler to
 a   an in-state  used oil recycling
facility  that is  certified pursuant to subdivision (a) of
Section 48662 or to an out-of-state used oil recycling facility
registered pursuant to subdivision (b) of Section 48662 or certified
pursuant to  paragraph (2) of  subdivision (c) of Section
48662.
   SEC. 11.   SEC. 12.   Section 48651.5 is
added to the Public Resources Code, to read: 
   48651.5.  (a) The board, with regard to promoting the recycling of
used lubricating oil into rerefined oil, shall pay a rerefining
incentive pursuant to subdivision (b) of Section 48652 if all of the

    48651.5.   (a)     Beginning July
1, 2010, the board, with regard to promoting rerefined oil, shall pay
a rerefining incentive pursuant to subdivision (b) of Section 48652
to a recycling facility for rerefined lubricating oil produced from
used oil if all of the  following conditions are met:
   (1) The facility is an in-state or out-of-state recycling facility
that is certified in accordance with subdivision (c) of Section
48662 and produces rerefined base lubricant meeting the
specifications of rerefined oil as defined in Section 48620.2.
   (2) The used oil was generated and collected within the state and
prior to treatment or processing has been tested to meet the
definition of used oil as specified in paragraph (1) of subdivision
(a) of Section 25250.1 of the Health and Safety Code.
   (3) The facility submits to the board a completed used oil
rerefining incentive payment claim in the form and manner that the
board may prescribe.
   (b) To further promote the safe management of used oil, the board,
using existing financial resources, shall identify and evaluate the
most environmentally beneficial uses of used  lubricating
 oil. On or before January 1, 2012, the board shall consider
whether to implement additional incentives  pursuant to this
section  that prioritize the highest and most beneficial
uses of used  lubricating  oil.
   SEC. 12.   SEC. 13.   Section 48652 of
the Public Resources Code is amended to read:
   48652.  (a) The board shall set the recycling incentive at not
less than  ten cents ($0.10)   four cents
($0.04)  per quart. The board may set the amount at an amount
higher than  ten cents ($0.10)   four cents
($0.04)  if the board determines that a higher amount is
necessary to promote the collection and recycling of used lubricating
oil and sufficient funds are available in the fund.
   (b) The board shall set the rerefining incentive at not less than
two cents ($0.02) per gallon. The board may set the amount at an
amount higher than two cents ($0.02) per gallon if the board
determines that a higher amount is necessary to promote 
rerefining of used lubricating   rerefined  oil and
sufficient funds are available in the fund.
   (c) The board shall not change the amount of an incentive paid
pursuant to this section until at least one year has passed since the
amount was last set. The amount of an incentive paid by the board
shall remain at the previous amount for one month after setting the
incentive at a different amount. The board shall not raise the amount
of an incentive paid or implement other incentive options pursuant
to subdivision (b) of Section 48651.5 unless it finds that the raise
will not adversely affect funding required pursuant to Sections
48631, 48653, and 48660.5.
   SEC. 13.   SEC. 14.   Section 48653 of
the Public Resources Code is amended to read:
   48653.  The board shall deposit all amounts paid pursuant to
Section 48650 by manufacturers, civil penalties, and fines paid
pursuant to this chapter, and all other revenues received pursuant to
this chapter into the California Used Oil Recycling Fund, which is
hereby created in the State Treasury. Notwithstanding Section 13340
of the Government Code, the money in the fund is to be appropriated
solely as follows:
   (a) Continuously appropriated to the board for expenditure for the
following purposes:
   (1) To pay recycling incentives pursuant to Section 48651.
   (2) To provide a reserve for contingencies, as may be available
after making other payments required by this section, in an amount
not to exceed one million dollars ($1,000,000).
   (3)  To make   (A)     To
make advance  payments for the implementation of local used oil
collection programs adopted pursuant to Article 10 (commencing with
Section 48690) to cities, based on the city's population, and
counties, based on the population of the unincorporated area of
 the county. Notwithstanding subdivision (b) of Section
48656, the total annual amount shall equal thirteen million dollars
($13,000,000), except that the board may issue the payments as
follows, if sufficient funds are not available in the fund: 

   (A) (i) One-half of the amount that remains in the fund after the
expenditures are made pursuant to paragraphs (1) and (2) and
subdivision (b).  
   (ii) The board may utilize additional amounts from the fund up to,
but not exceeding, thirteen million dollars ($13,000,000). 

   (B) Pursuant to paragraph (2) of subdivision (d) of Section 48691,
it is the intent of this paragraph that at least three million
dollars ($3,000,000) be made available specifically for used oil
filter collection and recycling programs. 
    (C)     Payments shall
be determined by multiplying the total annual amount by the fraction
equal to the population of cities and counties that are eligible for
payments pursuant to Section 48690, divided by the population of the
state. The board shall use the latest population estimates of the
state generated by the Population Research Unit of the Department of
Finance in making the calculations required by this paragraph.
  the county. Payment shall be determined by multiplying
the total annual amount by the fraction equal to the population of
cities and counties that are eligible for payments pursuant to
Section 48690, divided by the population of the state. The board
shall use the latest population estimates of  the state
generated by the Population Research Unit of the Department of
Finance in making the calculations required by this paragraph.
Notwithstanding subdivision (b) of Section 48656, the total annual
amount shall equal ten million dollars ($10,000,000) subject to
subparagraph (B).  
   (B) If sufficient funds are not available to initially issue full
funding pursuant to subparagraph (A), the board shall provide funding
as follows:  
   (i) For purposes set forth in this paragraph, one-half of the
amount that remains in the fund after the expenditures are made
pursuant to paragraphs (1) and (2) and subdivision (b). The board may
utilize additional amounts from the fund up to, but not exceeding,
ten million dollars ($10,000,000).  
   (ii) As fiscally appropriate, for the purposes set forth in
Section 48656. The board shall give priority to the distribution of
funding in clause (i) for the purposes set forth in this paragraph.
 
   (C) Pursuant to paragraph (2) of subdivision (d) of Section 48691,
it is the intent of this paragraph that at least one million dollars
($1,000,000) be made available specifically for used oil filter
collection and recycling programs. 
   (4) To implement Section 48660.5, in an amount not to exceed two
hundred thousand dollars ($200,000) annually.
   (5) For expenditures pursuant to Section 48656.
   (b) The money in the fund may be expended by the board for the
administration of this chapter and by the department for inspections
and reports pursuant to Section 48661, only upon appropriation by the
Legislature in the annual Budget Act.
   (c)  (1)     Except as
provided in paragraph (2), the   The  money in the
fund may be transferred to the Farm and Ranch Solid Waste Cleanup and
Abatement Account in the General Fund, upon appropriation by the
Legislature in the annual Budget Act, to pay the costs associated
with implementing and operating the Farm and Ranch Solid Waste
Cleanup and Abatement Grant Program established pursuant to Chapter
2.5 (commencing with Section 48100). 
   (2) The money in the fund attributable to a charge increase or
adjustment made or authorized in an amendment to subdivision (a) of
Section 48650 by the measure adding this paragraph shall not be
transferred to the Farm and Ranch Solid Waste Cleanup and Abatement
Account.
   (d) Appropriations to the board to pay the costs necessary to
administer this chapter shall not exceed three million dollars
($3,000,000) annually.
   (e) The Legislature hereby finds and declares its intent that
three hundred fifty thousand dollars ($350,000) should be annually
appropriated from the California Used Oil Recycling Fund in the
annual Budget Act to the board, commencing with fiscal year 2010-11,
for the purposes of Section 48655 and to conduct those investigations
and enforcement actions necessary to implement subdivision (b) of
Section 48651.
   SEC. 14.   SEC. 15.   Section 48656 of
the Public Resources Code is amended to read:
   48656.  After all of the expenditures pursuant to Section 48653
have been made, notwithstanding paragraph (5) of subdivision (a) of
Section 48653, the balance remaining in the fund shall be available
to the board for the following purposes:
   (a) The implementation of subdivisions (b) and (c) of Section
48631 and Section 48651.5, subject to both of the following
requirements:
   (1) The allocation of funds to implement subdivisions (b) and (c)
of Section 48631 shall be at the discretion of the board to be
determined annually in a public meeting and pursuant to a vote of the
board.
   (2) The board shall pay rerefining incentives pursuant to Section
48651.5 provided sufficient funds are available in the fund.
   (b) Annual revenues left unspent in excess of one million dollars
($1,000,000) shall be allocated pursuant to paragraph (3) of
subdivision (a) of Section 48653 for local collection programs
adopted pursuant to Article 10 (commencing with Section 48690).
   SEC. 15.   SEC. 16.   Section 48660 of
the Public Resources Code is amended to read:
   48660.  (a) No used oil collection center shall be eligible for
the payment of recycling incentives until the board has certified
that the center is in compliance with the requirements in subdivision
(b). Before certification, the board may require the center to
submit any information that the board determines is necessary to find
that the center is in compliance with those requirements. A center
shall reapply for certification every four years. The board may
cancel the certification of a center if the board finds that the
center is not, or has not been, in compliance with subdivision (b).
The board may withhold the payment of recycling incentives for used
lubricating oil collected by a center if the board finds that the
center was not in compliance with subdivision (b) during the time in
which the used lubricating oil was collected.
   (b) To be eligible for certification by the board and for the
payment of recycling incentives, the used oil collection center shall
do all of the following:
   (1) Accept used lubricating oil from the public at no charge
during the hours that the entity operating as the center is open for
business.
   (2) Pay to a person, at his or her request, an amount equal to the
recycling incentive that the center will receive for used
lubricating oil brought to the center in containers by the person.
Nothing in this chapter prohibits a person from donating used
lubricating oil to a center. The recycling incentive may be in the
form of a credit that may be applied toward the purchase of goods or
services offered by the center, as determined by the board. The
credit shall be in the form of a voucher or coupon with a value of at
least twice the incentive amount to be paid pursuant to Section
48652 and have no other limits for use, unless prescribed by the
board.
   (3) Provide information to the board for informing the public of
the center's acceptance of used lubricating oil.
   (4) Provide notice to the public of the center's acceptance of
used lubricating oil from the public through periodic advertising in
local media and onsite signs that meet the following requirements:
   (A) Onsite signs shall be of a design and specification prescribed
by the board and shall state that the center is certified by the
state and collects used oil from the public at no charge.
   (B) A certified center shall post an exterior sign of a design and
specification prescribed by the board in a location that is easily
visible from a public street. In addition, the certified center shall
post an informational sign of a design and specification prescribed
by the board so that it is easily readable from the location where
the used oil is received from the public.
   (C) If local zoning ordinances prevent signs of a size consistent
with this paragraph, the exterior symbolic sign shall be of the
maximum allowable size.
   (c) Notwithstanding subdivision (b), a used oil collection center
may refuse to accept used lubricating oil that has been contaminated
in a manner other than that which would occur through normal use.
   (d) Notwithstanding subdivision (b), a used oil collection center
shall not knowingly accept used lubricating oil for which a payment
has not been made pursuant to Section 48650.
   SEC. 16.   SEC. 17.   Section 48660.5 of
the Public Resources Code is amended to read:
   48660.5.  (a) If the board finds that a shipment of used oil from
a certified used oil collection center, curbside collection program,
or an uncertified publicly funded used oil collection center in a
small rural county is contaminated by hazardous materials in excess
of that which generally occurs in normal use, which renders the used
oil infeasible for recycling, and requires that the used oil be
destroyed at a substantially higher cost than the cost generally to
recycle used oil, the board shall, upon application by the used oil
collection center or curbside collection program, reimburse the
center or program for the additional disposal cost, subject to the
eligibility requirements of subdivision (b), except as provided in
subdivision (c).

(b) A certified used oil collection center, curbside collection
program, or an uncertified publicly funded used oil collection center
in a small rural county is eligible for reimbursement only if it
demonstrates to the satisfaction of the board all of the following,
except that paragraph (1) does not apply to  a  
an uncertified  publicly funded used oil collection center in a
small rural county:
   (1) The center or program has established procedures to ensure
that the used oil it generates and accepts from the public will not
be mixed with other hazardous wastes, especially halogen-contaminated
and polychlorinated biphenyl-contaminated wastes. These procedures
shall include, but not be limited to, instructing the public and
employees that used oil shall not be mixed with other hazardous
waste. The board shall not require a center or program to test used
oil received from the public as part of these procedures.
   (2) The shipment contains not more than five gallons or pounds of
contaminants combined, based on the contaminant concentrations and
the total volume or weight of the shipment.
   (c) In a calendar year, a  certified  used oil collection
center, curbside collection program, or uncertified publicly funded
used oil collection center in a small rural county shall be
reimbursed for not more than one shipment and for not more than five
thousand dollars ($5,000) in disposal costs, for halogen-contaminated
waste or not more than the actual net additional costs of disposing
of polychlorinated biphenyl-contaminated wastes, subject to the
availability of funds pursuant to  Section 48656 
 paragraph (4) of subdivision (a) of Section 48653  .
   SEC. 18.    Section 48661 of the   Public
Resources Code   is amended to read: 
   48661.  (a)  On and after July 1, 1992, the department
  The Department of Toxic Substances Control  shall
annually inspect used oil recycling facilities  located in this
state  .
   (b) Within 135 days following inspection, the  department
  Department of Toxic Substances Control  shall
submit a report to the board, describing all of the following:
   (1) Any violations of Chapter 6.5 (commencing with Section 25100)
of Division 20 of the Health and Safety Code.
   (2) Any corrective actions ordered or agreed to by the department.

   (3) Progress by the facility in correcting violations identified
in previous inspections.
   (c) In the report required by subdivision (b), the 
department   Department of Toxic Substances Control
 shall specifically state whether any of the following occurred:

   (1) The  department   Department of Toxic
Substances Control  has identified violations of subdivision (c)
of Section 25250.1 of the Health and Safety Code regarding
achievement of minimum standards of purity for recycled oil.
   (2) The  department   Department of Toxic
Substances Control  has identified violations of regulations
requiring financial responsibility assurance for liability, closure,
and postclosure obligations.
   (3) Where prior contamination has been identified, the facility
has an approved corrective action plan and has not been found to be
in violation of its requirements.
   (4) The  department   Department of Toxic
Substances Control  has identified violations that meet the
criteria for class 1 violations, as defined in Section 66260.10 of
Title 22 of the California Code of Regulations.
   SEC. 17.   SEC. 19.   Section 48662 of
the Public Resources Code is amended to read:
   48662.  (a) The board shall certify or recertify any used oil
recycling facility located in this state for which the board has
received a report from the  department  
Department of Toxic Substances Control  pursuant to Section
48661, unless the board determines that the facility is engaged in a
repeating or recurring pattern of noncompliance that poses a
significant threat to public health and safety or the environment.
   (b) Except as provided in paragraph (2) of subdivision (c), the
board shall require an out-of-state recycling facility, that receives
used oil from a California generator to which a recycling incentive
may be paid, to register with the board, declaring, under penalty of
perjury, that the facility is operating in substantial compliance
with Part 279 (commencing with Section 279.1) of Title 40 of the Code
of Federal Regulations.  An out-of-state recycling facility
registering with the board pursuant to this subdivision shall, upon
request, provide the board or the Department of Toxic Substances
Control with a copy of any inspection report or any other enforcement
related documents issued for the facility by the agency responsible
for enforcing Part 279 (commencing with Section 279.1) of Title 40 of
the Code of Federal Regulations at the facility. 
   (c) The board shall certify or recertify a rerefiner of used oil
for which the board has received a report from the department that
the facility meets either of the following requirements:
   (1) The used oil recycling facility located in this state is
certified pursuant to subdivision (a) and produces rerefined base
lubricant meeting the specifications as defined in Section 48620.2.
   (2) The used oil recycling facility is an out-of-state facility
that has demonstrated to the satisfaction of the department all of
the following:
   (A) The facility substantially meets the requirements in Part 279
(commencing with Section 279.1) of Title 40 of the Code of Federal
Regulations.
   (B) The facility produces rerefined base lubricant meeting the
specifications as defined in Section 48620.2.
   (C) The facility meets California standards for used oil handling,
waste classification, and disposal specified in Section____ of the
Health and Safety Code.
   (d) An out-of-state facility that seeks certification shall
annually certify in writing to the board, under penalty of perjury,
that the facility substantially meets the requirements in paragraph
(2) of subdivision (c).
   (e) Paragraph (2) of subdivision (c) does not require the
department to inspect or prohibit the department from inspecting an
out-of-state facility to determine whether the department is
satisfied that the facility substantially meets the requirements for
certification.
   (f) As a condition of demonstrating compliance pursuant to
paragraph (2) of subdivision (c), a facility shall enter into an
agreement with the department pursuant to Section 25201.9 of the
Health and Safety Code to pay the department's full expenses of
conducting the review and any inspection costs the department may
incur in determining whether the facility meets the requirements for
certification.
   (g) If the board denies certification to a facility subject to
subdivision (a) or (c), the board may subsequently certify the
facility if it determines that the facility meets the standards for
certification.
   SEC. 18.   SEC. 20.   Section 48670 of
the Public Resources Code is amended to read:
   48670.  (a) To be eligible for payment of a recycling incentive,
an industrial generator of used lubricating oil, a used oil
collection center, or a curbside collection program shall report to
the board, for each quarter, based on the following reporting
limitations and requirements:
   (1) The amount of lubricating oil purchased and the amount of used
lubricating oil that is transported to a certified  in-state
 used oil recycling facility, to a used oil storage facility
 or   ,  to a used oil transfer facility,
or  that is transported  to an out-of-state
recycling facility registered with the board to be operating
in substantial compliance with Part 279 (commencing with Section
279.1) of Title 40 of the Code of Federal Regulations.  
facility registered pursuant to subdivision (b) of Section 48662 or
certified pursuant to paragraph (2  ) of subdivision (c) of
Section 48662. 
   (2) The amount of used lubricating oil collected from the public,
for use in determining the recycling incentive payment, that is
transported to a certified  in-state  used oil recycling
facility, to a used oil storage facility,  or  to a
used oil transfer facility, or  that is transported to an
out-of-state recycling facility registered with the board to be
operating in substantial compliance with Part 279 (commencing with
Section 279.1) of Title 40 of the Code of Federal Regulations.
However, a certified collection center with   to an
out-of-state used oil recycling facility registered pursuant to
subdivision (b) of Section 48662 or certified pursuant to paragraph
(2) of subdivision (c) of Section 48662. However, a certified
collection center with  service bays located in a small rural
county shall be eligible for a recycling incentive based on 60
percent of the total oil recycled by collecting used oil from the
public and servicing motor vehicles. If the center documents, in the
form prescribed by the board, that the portion that resulted from
public collection exceeds 60 percent of the total oil recycled, the
center shall be eligible for the incentive payment based on the
actual amount of used oil accepted from the public and recycled.
   (b)  (1)    The reports shall be submitted on or
before the 45th day following each quarter, in the form and manner
that the board may prescribe, and shall include copies of manifests
or modified manifest receipts from used oil haulers. 
   (2) The copies of manifest or modified manifest receipts required
by paragraph (1) shall be signed by the generator of the used oil and
shall specify the receiving used oil facility. 
   (c) The board may delegate to the executive officer of the board
the authority to accept reports submitted after the 45th day and to
reduce, eliminate, or approve the amount of incentive fee to be paid
due to the late submission of the report. The board may provide, by
regulation, for a longer reporting period for industrial generators
that generate less than 1,000 gallons of used oil annually.
   SEC. 19.   SEC. 21.   Section 48673 of
the Public Resources Code is amended to read:
   48673.  (a) A used oil recycling facility issued a permit by the
department to produce recycled oil, as defined in Section 25250.1 of
the Health and Safety Code, and an out-of-state recycling facility
that is either registered with the board pursuant to  paragraph
(2) of  subdivision (b) of Section 48662 or certified by the
board pursuant to subdivision (c) of Section 48662, shall report to
the board for each quarter the  amount of California used oil
received and the resultant amount of recycled oil produced.
  amount of California   used oil received and
the methods and amounts recycled in disposition. 
   (b) A facility subject to this section shall provide estimates,
where feasible, of the amount that is used lubricating oil and the
amount that is used industrial oil.
   (c) The reports required by this section shall be submitted on or
before the last day of the month following each quarter, in the form
and manner that the board may prescribe.
   SEC. 20.   SEC. 22.   Section 48674 of
the Public Resources Code is amended to read:
   48674.  After receiving payments pursuant to paragraph (3) of
subdivision (a) of Section 48653, each local government shall submit
an annual report to the board, in the manner specified by the board,
that includes any amendments to the local used oil collection program
adopted pursuant to Section 48690, a description of all measures
taken to implement the program, and a description of how payments
were expended.
   SEC. 21.   SEC. 23.   Section 48690 of
the Public Resources Code is amended to read:
   48690.  A local government is eligible for a payment pursuant to
paragraph (3) of subdivision (a) of Section 48653, if it develops and
submits a local used oil collection program to the board pursuant to
Section 48691 and files a report pursuant to Section 48674. The
board shall make a payment to every local government that submits a
program and files a report unless the board finds that the program or
its implementation does not comply with criteria contained in this
article. The board may make a payment to another entity that will
implement the program of a local government in lieu of making a
payment to that local government with the concurrence of that local
government. A payment issued by the board pursuant to this section
may take the form of an advance payment. If a local government does
not implement a used oil collection program or chooses not to accept
the payment pursuant to paragraph (3) of subdivision (a) of Section
48653, the board may allocate that local government's payment to
another local government that commits to implementing a used oil
collection program pursuant to Section 48691 and serving the
residents of the nonparticipating local government provided that any
program implemented within the boundaries of the nonparticipating
jurisdiction is approved by the nonparticipating jurisdiction.
   SEC. 22.   SEC. 24.   Section 48691 of
the Public Resources Code is amended to read:
   48691.  (a) A local used oil collection program shall provide for
used lubricating oil collection by either of the following or a
combination of the two:
   (1) Ensuring that at least one certified used oil collection
center is available for every 100,000 residents not served by
curbside used oil collection, that accepts oil from the public at no
charge,  at least 20 hours each week, on four days each week,
of which three hours each week are outside the weekday hours of 8
a.m. through 5:30 p.m.   during the hours the center is
open for business. 
   (2) Providing used oil curbside collection at least once a month.
   (b) A local used oil collection program shall include a public
education program that informs the public of locally available used
oil recycling opportunities.
   (c) A local government may implement its used oil collection
program in conjunction with other similar programs in order to
improve used oil recycling efficiency.
   (d) A local government that has implemented the used oil
collection and education elements of subdivisions (a) and (b) may
also include, in the local used oil collection program one or both of
the following:
   (1) Provisions for the mitigation and the collection of oil and
oil byproducts, including other solid waste that may be mixed with
oil or oil byproducts from stormwater runoff, including devices to
capture that stormwater runoff, such as the use of storm drain inlet
filter devices. A local government shall not receive a payment
pursuant to Section 48690 for the purposes identified pursuant to
this paragraph unless the local government certifies that it has a
stormwater management program that is approved by the appropriate
California regional water quality control board and that the
provisions in the local used oil collection program approved for
funding under this paragraph are consistent with that approved
stormwater management program.
   (2) A used oil filter collection and recycling program.
   SEC. 23.   SEC. 25.   No reimbursement
is required by this act pursuant to Section 6 of Article XIII B of
the California Constitution because the only costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.
                                                    ____ CORRECTIONS
Text--Page 21.
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