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.