California Department of Resources Recycling and Recovery (CalRecycle) 

Used Oil Recycling Program

Key Elements of Senate Bill  546 (Lowenthal)

Amendment Highlights

In October 2009, Senate Bill (SB) 546 made significant changes to the California Oil Recycling Enhancement Act.  The amendment highlights are summarized below:

Public Resources Code, Sections 48600-48691

  • Grant Programs
    • Used Oil Block Grants
      • Streamlines the Block Grant program to a payment program.
      • Increases the total amount available from $10 million to $11 million annually.
      • Allocates $1 million to filter collection and recycling programs.
      • Provides for supplemental distributions of revenue o that no more than $1 million is left unspent annually.
    • Used Oil Competitive Grants
      • Combines three independent grant programs into one program.
      • Removes statutory imposed funding levels.
      • Promotes public/private partnerships and expands project opportunities to improve effectiveness of statewide programs.
  • Fee Collection and Incentive Payments
    • Fee Collection.
      • Increases amount of fee paid by manufactures from $0.16/gallon to $0.26/gallon through December 31, 2013 for new lubricating oil sold in California.
      • On and after January 1, 2014, decreases the fee to $0.24/gallon.
      • The additional $0.02/gallon fee established through December 31, 2013 covers the cost of an independent life-cycle analysis of the used oil management process; a report to the Legislature is due on or before January 1, 2014.
      • Establishes a reduced manufacturer fee of $0.12/gallon for the sale of re-refined oil in California containing at least 70 percent re-refined base lubricant.
    • Recycling Incentive Payment
      • Increases the incentive paid to Certified Collection Centers (CCCs) and curbside collection operators from $0.16/gallon to $0.40/gallon for Do-It-Yourself oil collection.
      • Maintains the current incentive payment of $0.16/gallon to CCCs for used oil generated by the CCC or by the industrial generator.
    • Re-refining Incentive Payment
      • Establishes a re-refining incentive of $0.02/gallon paid to certified re-refiners beginning January 1, 2013 for re-refined base lubricant produced from used oil; used oil must be generated and collected in California.
  • Certified Collection Centers (CCCs) Requirements
    • Changes recertification period from two years to four years.
    • Eliminates the requirement of a CCC to offer the $0.40/gallon recycling incentive to the public for its used oil, but maintains the requirement that a CCC pay it upon request of the individual.
    • Clarifies that CCCs must accept used oil during the hours the entity is open for business.
  • Facility Certification and Registration Requirements
    • Establishes certification requirements (to determine re-refining incentive eligibility) for re-refining facilities located within California and out of state; the applicable requirements for certification are subject to review and/or inspection by the Department of Toxic Substances Control (DTSC).
    • Establishes registration and reporting requirements for out-of-state recycling facilities that receive California used oil under the Act; utilization of "registered" facilities for out-of-state shipments ensures that a CCC, curbside collection program, or industrial generator remains eligible for recycling incentive payments.

Health and Safety Code, Sections 25250.29-25250.30

  • Out-of-State Testing
    • Requires testing of each truckload of used oil before it is shipped to a transfer facility, recycling facility, or other facility located out-of-state.
    • Exempts used oil that consists exclusively of used oil accepted by a used oil collection center from the public, or that is transported to an out-of-state facility that has registered with CalRecycle and that has entered into an agreement with DTSC; the scope shall stipulate the testing and testing-related reporting requirements equivalent for a California facility.
    • Authorizes DTSC to conduct any inspections the department deems necessary to ensure an out-of-state facility complies with terms of the testing and reporting requirements.

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Last updated: January 11, 2011
Used Oil Recycling Program,
Contact: (916) 341-6457