California Department of Resources Recycling and Recovery (CalRecycle) 

Regulations: Title 14, Natural Resources--Division 7, CIWMB

Chapter 8. Used Oil Recycling Program

Article 3. Oil Manufacturers and Lubricating Oil Sellers

Section 18620. Applicability.

In addition to the general requirements of this Chapter, oil manufacturers and lubricating oil sellers  must comply with the provisions of this Article.

Note:

Note:

Authority cited: Sections 40502 and 48641, Public Resources Code.
Reference: Section 48671, Public Resources Code.


Section 18621. Oil Manufacturer Recordkeeping Requirements.

Oil manufacturers must maintain records of all industrial oil sold in California and all lubricating oil sold in California which is not exempt from payment of the fee pursuant to Section 48650 of the Public Resources Code. Records must include:

(a) The amount, in gallons, of lubricating oil sold monthly;

(b) The amount, in gallons, of industrial oil sold monthly.

(c) The amount, in gallons, of finished lubricant containing at least 70% rerefined base lubricant

(1) Oil manufacturers paying the reduced fee for finished lubricants containing rerefined base lubricant shall maintain documentation demonstrating that the oil sold meets the 70% requirement as described in Section 18622(d)(2). 

Note:

Authority cited: Sections 40502 and 48641, Public Resources Code.
Reference: Sections 48650 and 48671, Public Resources Code.


Section 18622. Oil Manufacturer Reports.

All oil manufacturers must prepare and submit to CalRecycle a report in accordance with the general requirements for reporting contained in section 18614 of this Chapter.

Each quarter, manufacturers  must submit reports which include:

(a) The amount, in gallons, of lubricating oil sold monthly in California;

(b) The amount, in gallons, of industrial oil sold monthly in California;

(c) The amount, in gallons, of finished lubricating oil containing at least 70% rerefined base oil sold monthly in California;

(d) The amount, in gallons, of finished industrial oil containing at least 70% rerefined base oil sold monthly in California;

(e) The total amount of fees due pursuant to Section 48650 of the Public Resources Code.

The total amount of fees due must be calculated by subtracting exemptions from the fee calculated based on total sales of lubricating oil.

(1) The fee calculated based on total lubricating oil sales must be calculated by the following procedure:

(A) Multiply the number of gallons of lubricating oil sold during the quarter does not contain at least 70% rerefined base lubricant by $0.24 per gallon;

(B) Multiply the number of gallons of lubricating oil sold during the quarter that contains at least 70% rerefined base oil by $0.12 per gallon.

(i) A minimum of 70% of the base oil portion of a finished lubricant must be rerefined in order to qualify for the $0.12 per gallon fee as described in Section 48650(c) of the Public Resources Code.

(ii) Oil manufacturers paying the reduced fee for finished lubricants containing rerefined base lubricant shall identify to CalRecycle what facility produced the rerefined base oil that was used in their finished lubricants.

(2) The amount of exemptions must be calculated by the following procedure?

(A) Indicate the number of gallons of oil that are exempt per PRC Section 48650(a)(1)-(5), by category;

(B) Multiply the number of exempt gallons of lubricating oil sold during the quarter that do not contain at least 70% rerefined base lubricant by $.24 per gallon;

(C) Multiply the number of exempt gallons of finished lubricating oil sold during the quarter that contains at least 70% rerefined base oil by $0.12 per gallon.

Reports must be submitted to CalRecycle on or before the last day of the month following each quarter, as defined in Section 18601 of this Chapter. For example, lubricating oil sold during the quarter commencing October 1 and ending December 31 must be reported by January 31. 

Note:

Authority cited: Sections 40502 and 48641, Public Resources Code.
Reference: Sections 48650(a) and (b) and 48671, Public Resources Code.


Section 18623. Date of Sale.

The date of sale of lubricating or industrial oil is the date of receipt by the purchaser, as evidenced by an invoice.

Note:

Authority cited: Sections 40502 and 48641, Public Resources Code.
Reference: Section 48650, Public Resources Code.


Section 18624. Payment of Manufacturers’ Fees to CalRecycle.

(a) All payments made pursuant to Sections 48650(a), (b), (c) and (d) of the Public Resources Code must accompany the report submitted pursuant to Section 18622 of this Chapter. Payments received after the due date of this report shall be deemed late.

(1) If a payment is deemed late, interest shall be added to the amount due pursuant to the procedures of Section 55061(a) of the Revenue and Taxation Code.

(2) If a late payment is found to have been occasioned by negligence or intentional disregard of the Act or this Chapter, a penalty of 10 percent of the amount due shall be added, plus interest as provided in subsection (1).

(b) All payments must be reported and recorded in currency of the United States of America ("U.S. dollars"). All payments to CalRecycle must be made in U.S. dollars and made by either check, draft, money order or cashier's check payable to the State of California, Department of Resources Recycling and Recovery or an entity designated by CalRecycle to collect payments. 

Note:

Authority cited: Sections 40502 and 48641, Public Resources Code.
Reference: Sections 48650(a) and (b) and 48671, Public Resources Code.


Section 18625. Lubricating Oil Seller Requirements.

(a) Lubricating oil sellers must inform their customers that the fee has been paid by one of the following methods:

(1) A sales invoice or a contract which clearly states that the fee is included in the invoiced or contracted amount;

(2) Documentation showing that the fee has been paid to CalRecycle.

(b) Lubricating oil sellers shall provide the following information to their customers for each sale that is one hundred (100) gallons or greater in volume:

(1) The name of the entity that paid the initial oil fee to CalRecycle for the volume of oil that is being sold; and

(2) The year and quarter in which the initial fee was paid to CalRecycle. 

Note:

Authority cited: Sections 40502 and 48641, Public Resources Code.
Reference: Section 48650(a) and (b), Public Resources Code.


Article 3.1. Exemptions

Section 18626. Certification.

(a) Scope and Applicability. All sales or transfers of lubricating oil in the state by an oil manufacturer are subject to the oil recycling fee unless exempted.

(b) Exemption from Responsibility for the Oil Recycling Program Fee. A seller is exempt from responsibility for the oil recycling fee when the purchaser certifies in writing, in a timely manner, to the seller that the lubricating oil purchased will be used in an exempt manner as provided in PRC section 48650. To be considered timely, an exemption certification shall be given:

(1) At any time before the seller bills the purchaser for the lubricating oil; or

(2) At any time within the seller's normal billing and payment cycle; or

(3) Any time at or prior to delivery of the subject oil to the purchaser.

Exemption certification is valid until there is a change in the use of the oil as described in the certification. The purchaser is responsible for submitting a revised exemption certification prior to any change in use of the oil purchased.

(c) Liability for the Fee for Other Uses.

If a purchaser certifies in writing to a seller that the lubricating oil purchased will be used in an exempt manner, as provided in PRC section 48650 (b), and instead uses the lubricating oil in some other manner which is not exempt, the purchaser shall be liable for payment of the oil recycling fee as if the purchaser were the first person or entity to take title to the lubricating oil for sale, use, or transfer in this state. The fee will apply at the time of the sale, use or transfer by the purchaser.

(d) Form of Exemption Certifications.

(1) All purchasers qualifying for an exemption must provide certification as follows:

(A) the name and address of the purchaser;

(B) the purchaser's CalRecycle oil manufacturer registration number;

1. if the purchaser is not required to hold an oil manufacturer registration number, a statement to that effect and the reasons;

(C) a description of the lubricating oil purchases associated with the certification, including the number of gallons;

(D) a statement describing the exempt use of the lubricating oil pursuant to the exemptions described in PRC section 48650(b);

(E) date;

(F) signature of the purchaser.

(e) "Qualified" Fee Exemption Certifications.

Purchasers may issue "qualified" fee exemption certifications if a portion of the total oil purchased is to be used in an exempt manner. In these cases, a pruchase order must be attached to the CalRecycle fee exemption certification. Each purchase order must indicate that the oil is purchased for exempt use. If a purchase order does not so specify, it will be presumed that the oil purchased is to be used in a nonexempt manner, and is subject to the fee.

(f) Untimely Exemption Certification.

An exemption certification which is not issued in a timely manner is not retroactive, and will not relieve the seller of the responsibility for the fee, unless the seller presents satisfactory evidence that (1) the specific oil was used in an exempt manner or (2) that the fee was paid to the state by the purchaser.

(g) Good Faith.

A seller will be presumed to have been issued a certification in good faith in the absence of evidence to the contrary. A seller will not be relieved of the responsibility for the oil recycling fee if it knew, or should have known, that the lubricating oil would not be used by the purchaser in an exempt manner.

(h) Penalties for Improper Use of an Exemption Certification.

Civil penalties, as described in Public Resources Code (PRC) section 48680, may be assessed if there is unauthorized issuance or use of an exemption certification.

Note:

Authority cited: Sections 40502 and 48641, Public Resources Code.
Reference: Sections 48650 and 48680, Public Resources Code.


Section 18626.99. Repealed.


Section 18627. Refund of Lubricating Oil Payment.

(a) Any person who has made the lubricating oil payment on oil which is later sold or used for an exempt purpose pursuant to PRC section 48650, may request a refund. For this chapter, an exempt purpose shall include lubricating oil that is subsequently sold to an agency of the Federal Government and on which the payment was not made by that agency. The request for a refund must include the information in Section 18613 of this chapter as well as the following information:

(1) The volume of oil that the refund is being requested for, including the volumes of both rerefined lubricating oil and non-rerefined lubricationg oil;

(2) The total dollar amount of the refund being requested;

(3) Proof that the person filing the refund claim has paid the fee on the oil that is on the refund claim;

(4) Proof that the oil is fee exempt and that the fee was not applied to subsequent sales, if applicable; and

(5) The name of the individual(s) who paid the initial fee to CalRecycle, and which quarter and year that the fee was paid, per Section 18625(b) of this Chapter, for claims based on purchases of one hundred (100) gallons or greater of lubricating oil.

(b) Refund claims for oil other than oil exported from the state must be submitted to CalRecycle within three (3) years of the initial purchase of the oil by the person that is submitting the claim. If the refund is for oil that is exported from the state, the claim must be submitted to CalRecycle within the three months after the close of the calendar month in which the lubricating oil is exported or thirteen (13) months from the date of the purchase of the lubricating oil, whichever is later.

(c) CalRecycle may withhold or adjust payments for refund claims that are improper, illegible, or incomplete or otherwise deficient.  If a payment claim is denied or adjusted, CalRecycle will notify the claimant within ten (10 days of the denial or adjustment and provide the reasons for its determination.

(d) A claimant may appeal CalRecycle’s determination in writing within thirty (30) calendar days of the date of the denial notification.  Any appeal received by CalRecycle after thirty (30) calendar days from the date of the denial notification shall be denied without consideration of the appeal.

(1) A written appeal shall include, at minimum, the following information:

(A) Business entity name and location;

(B) the reporting period for which the claim was submitted;

(C) An explanation of why the adjustment or denial was in error; and

(D) Any other relevant documentation in support of the appeal.

(2) CalRecycle may consider the reasons for payment denial or payment adjustment, and any relevant information presented by the applicant or CalRecycle staff. CalRecycle will notify the applicant of its determination, in writing, within twenty (20) calendar days of its receipt of the appeal.  

Note:

Authority cited: Sections 40502 and 48641, Public Resources Code.
Reference: Sections 48650(a) and (b), 48671 and 48680, Public Resources Code.

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