48650. (a) Except as provided in subdivisions (c) and (d), 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 and
one-half cents ($0.065) for every quart, or twenty-six cents ($0.26)
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. 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.
(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).
(c) Every manufacturer of finished lubricant containing at least
70 percent rerefined base lubricant shall pay to the board an amount
equal to three cents ($0.03) for every quart or twelve cents ($0.12)
for every gallon sold or transferred in the state or imported into
the state, pursuant to the schedule established in subdivision (a).
(d) Except as provided in subdivision (c), on and after January 1,
2014, every oil manufacturer shall pay to the board an amount equal
to six cents ($0.06) for every quart or twenty-four cents ($0.24) for
every gallon of lubricating oil sold or transferred in the state or
imported into the state, pursuant to the schedule established in
subdivision (a).
48650.2. For the purposes of this chapter, the board may collect
the fees pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001) of Division 2 of the Revenue and
Taxation Code).
48650.5. (a) Any person who has made a payment pursuant to Section
48650 on lubricating oil exempted from payment pursuant to
subdivision (a) of Section 48650, and the payment was made either
directly to the board, or indirectly to a vendor from whom it was
purchased, by the adding of the amount of the payment to the price of
the lubricating oil, shall be reimbursed and repaid the amount of
the payment made on that oil, except as otherwise provided in this
section.
(b) The claimant of a refund shall present to the board a claim
supported by the original invoice showing the purchase. The claim
shall state the total amount of the lubricating oil purchased by the
claimant and the manner and the equipment in which the claimant has
used the lubricating oil. The claim shall not be under oath but shall
contain, or be accompanied by, a written declaration that it is made
under the penalty of perjury.
(c) The board, upon the presentation of the claim and the invoice,
shall pay the claimant from the payments collected under Section
48650 an amount equal to the payments collected on the lubricating
oil in respect to which the refund is claimed.
(d) Any person who willfully makes or subscribes to a claim for
refund under this section which the person does not believe to be
true and correct as to every material matter is guilty of a felony,
and upon conviction thereof shall be subject to the penalties
prescribed for perjury by the Penal Code. All applications for refund
under this section based upon the exportation of lubricating oil
from this state shall be filed with the board within the three months
after the close of the calendar month in which the lubricating oil
is exported or 13 months from the date of the purchase of the
lubricating oil, whichever is later. Any application filed after the
prescribed time shall not be considered by the board or any other
agency or officer of the state for any purpose.
(e) In lieu of the collection and refund of the payment on
lubricating oil used by a manufacturer in a manner that entitles a
purchaser to claim a refund under this section, the board may give a
credit to the manufacturer upon the filing of a return and the
determination of the amount of the fee.
(f) In lieu of the collection and refund of the payment on
lubricating oil exported by a licensed manufacturer for use outside
the state in a manner that entitles a manufacturer to claim a refund
pursuant to this section, the board may give a credit to the
distributor upon his or her payment return and the determination of
the amount of his or her payment, in accordance with such rules and
regulations as the board may prescribe.
(g) When an amount represented by a person to a customer as
constituting reimbursement for fees due under this chapter is
computed upon an amount that is not subject to that fee, or is in
excess of that fee amount due, and is actually paid by the customer
to the person, the amount so paid shall be returned by the person to
the customer, upon notification by the board or by the customer that
the excess has been ascertained. If the person fails or refuses to
return that amount, the person shall remit to the board the amount so
paid, if the amount was knowingly or mistakenly computed by the
person upon an amount that is not subject to the fee, or is in excess
of the fee due.
48650.7. In any transaction involving a total volume of oil subject
to payment pursuant to Section 48650 in excess of 10 gallons, the
invoice or other form of accounting of the transaction shall identify
the amount of the payment separately from the cost of the oil.
48651. 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 certified used oil collection center or the
industrial generator, if either of the following conditions apply:
(a) The used lubricating oil is transported by a used oil hauler
to a used oil storage facility or to a used oil transfer facility and
that used oil storage facility or used oil transfer facility causes
that oil to be transported by a used oil hauler 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 for the
purpose of producing recycled oil as defined in Section 48620.
(b) 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 subdivision (c) of Section
48662, for the purpose of producing recycled oil, as defined in
Section 48620.
48651.5. (a) Effective January 1, 2013, 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 to a recycling facility for rerefined 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) (1) To further promote the safe management of used oil, and to
review the changes in policy and program enacted by the Legislature
by Chapter 353 of the Statutes of 2009, without implying that any
further changes are necessary and warranted, the board, using
existing financial resources, shall do all of the following:
(A) Contract with a third-party consultant with recognized
expertise in life-cycle assessments to coordinate a comprehensive
life-cycle analysis of the used lubricating and industrial oil
management process, from generation through collection,
transportation, and reuse alternatives.
(B) Solicit input from representatives of all used oil
stakeholders in defining the scope and design of the life-cycle
analysis, in conducting the life-cycle analysis, and in issuing a
draft report for public review and comment.
(C) Evaluate the positive and negative impacts of the testing
requirements established in Section 25250.29 of the Health and Safety
Code, the tiered fee on lubricating oil established in Section
48650, and the tiered incentive payments established in Section
48652, on used oil collection rates.
(D) On or before January 1, 2014, submit a report to the
Legislature, in compliance with Section 9795 of the Government Code,
describing the findings of the life-cycle analysis and the evaluation
of the used oil management policies on used oil collection rates
specified in subparagraph (C) and provide any recommendations for
statutory changes that may be necessary to promote increased
collection and responsible management of used oil.
(2) All costs incurred by the board and its contractors in meeting
the requirements of this subdivision shall be covered by the
additional one-half-cent ($0.005) fee established in subdivision (a)
of Section 48650, and effective through December 31, 2013, pursuant
to subdivision (d) of Section 48650.
(c) The requirement for submitting a report pursuant to
subparagraph (D) of paragraph (1) of subdivision (b) is inoperative
on January 1, 2018.
48652. (a) Except as provided in subdivision (d), the board shall
set the recycling incentive at not less than ten cents ($0.10) per
quart. The board may set the amount at an amount higher than ten
cents ($0.10) 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) On and after January 1, 2013, the board shall set the
rerefining incentive at not less than two cents ($0.02) per gallon.
On and after January 1, 2015, the board may set the rerefining
incentive at a higher amount if the board determines that a higher
amount is necessary to promote rerefining of used lubricating 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 unless it finds that the raise will not
adversely affect funding required pursuant to Sections 48631, 48653,
and 48660.5.
(d) The board shall set the recycling incentive for used oil
generated by a certified used oil collection center and an industrial
generator at not less than four cents ($0.04) per quart. The board
may set the amount higher than four cents ($0.04), if the board
determines that a higher amount is necessary to promote the
collection and recycling of used lubricating oil from these
generators and sufficient funds are available.
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) (A) To make 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. 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 eleven million
dollars ($11,000,000), 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 the 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,
eleven million dollars ($11,000,000).
(ii) As the board finds is 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 of 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 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 act 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 ensure a used oil storage
facility or used oil transfer facility causes the used lubricating
oil to be transported, as required by subdivision (a) of Section
48651.
48655. The board may enter into a contract with the department that
will utilize the resources of the department to provide for greater
investigation and enforcement efforts for used lubricating oil
handling and storage and transfer facility operations. The department
shall assist the board in developing the used oil program and
providing assistance to local governments in removing barriers to the
establishment of used oil collection programs.
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 if 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).
48657. The board shall keep accurate books, records, and accounts
of all of its dealings, and these books, records, and accounts, and
any amounts paid into or from the fund, are subject to an annual
audit by an auditing firm selected by the board. The auditing firm or
the board shall also conduct a selective audit of entities making
payments to, or receiving payments from, the board to determine
whether payments required by Section 48650 are being paid to the
board on all lubricating oil sold in California, and that grants and
recycling incentives are being paid out properly by the board.
48650. (a) Except as provided in subdivisions (c) and (d), 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 and
one-half cents ($0.065) for every quart, or twenty-six cents ($0.26)
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. 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.
(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).
(c) Every manufacturer of finished lubricant containing at least
70 percent rerefined base lubricant shall pay to the board an amount
equal to three cents ($0.03) for every quart or twelve cents ($0.12)
for every gallon sold or transferred in the state or imported into
the state, pursuant to the schedule established in subdivision (a).
(d) Except as provided in subdivision (c), on and after January 1,
2014, every oil manufacturer shall pay to the board an amount equal
to six cents ($0.06) for every quart or twenty-four cents ($0.24) for
every gallon of lubricating oil sold or transferred in the state or
imported into the state, pursuant to the schedule established in
subdivision (a).
48650.2. For the purposes of this chapter, the board may collect
the fees pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001) of Division 2 of the Revenue and
Taxation Code).
48650.5. (a) Any person who has made a payment pursuant to Section
48650 on lubricating oil exempted from payment pursuant to
subdivision (a) of Section 48650, and the payment was made either
directly to the board, or indirectly to a vendor from whom it was
purchased, by the adding of the amount of the payment to the price of
the lubricating oil, shall be reimbursed and repaid the amount of
the payment made on that oil, except as otherwise provided in this
section.
(b) The claimant of a refund shall present to the board a claim
supported by the original invoice showing the purchase. The claim
shall state the total amount of the lubricating oil purchased by the
claimant and the manner and the equipment in which the claimant has
used the lubricating oil. The claim shall not be under oath but shall
contain, or be accompanied by, a written declaration that it is made
under the penalty of perjury.
(c) The board, upon the presentation of the claim and the invoice,
shall pay the claimant from the payments collected under Section
48650 an amount equal to the payments collected on the lubricating
oil in respect to which the refund is claimed.
(d) Any person who willfully makes or subscribes to a claim for
refund under this section which the person does not believe to be
true and correct as to every material matter is guilty of a felony,
and upon conviction thereof shall be subject to the penalties
prescribed for perjury by the Penal Code. All applications for refund
under this section based upon the exportation of lubricating oil
from this state shall be filed with the board within the three months
after the close of the calendar month in which the lubricating oil
is exported or 13 months from the date of the purchase of the
lubricating oil, whichever is later. Any application filed after the
prescribed time shall not be considered by the board or any other
agency or officer of the state for any purpose.
(e) In lieu of the collection and refund of the payment on
lubricating oil used by a manufacturer in a manner that entitles a
purchaser to claim a refund under this section, the board may give a
credit to the manufacturer upon the filing of a return and the
determination of the amount of the fee.
(f) In lieu of the collection and refund of the payment on
lubricating oil exported by a licensed manufacturer for use outside
the state in a manner that entitles a manufacturer to claim a refund
pursuant to this section, the board may give a credit to the
distributor upon his or her payment return and the determination of
the amount of his or her payment, in accordance with such rules and
regulations as the board may prescribe.
(g) When an amount represented by a person to a customer as
constituting reimbursement for fees due under this chapter is
computed upon an amount that is not subject to that fee, or is in
excess of that fee amount due, and is actually paid by the customer
to the person, the amount so paid shall be returned by the person to
the customer, upon notification by the board or by the customer that
the excess has been ascertained. If the person fails or refuses to
return that amount, the person shall remit to the board the amount so
paid, if the amount was knowingly or mistakenly computed by the
person upon an amount that is not subject to the fee, or is in excess
of the fee due.
48650.7. In any transaction involving a total volume of oil subject
to payment pursuant to Section 48650 in excess of 10 gallons, the
invoice or other form of accounting of the transaction shall identify
the amount of the payment separately from the cost of the oil.
48651. 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 certified used oil collection center or the
industrial generator, if either of the following conditions apply:
(a) The used lubricating oil is transported by a used oil hauler
to a used oil storage facility or to a used oil transfer facility and
that used oil storage facility or used oil transfer facility causes
that oil to be transported by a used oil hauler 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 for the
purpose of producing recycled oil as defined in Section 48620.
(b) 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 subdivision (c) of Section
48662, for the purpose of producing recycled oil, as defined in
Section 48620.
48651.5. (a) Effective January 1, 2013, 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 to a recycling facility for rerefined 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) (1) To further promote the safe management of used oil, and to
review the changes in policy and program enacted by the Legislature
by Chapter 353 of the Statutes of 2009, without implying that any
further changes are necessary and warranted, the board, using
existing financial resources, shall do all of the following:
(A) Contract with a third-party consultant with recognized
expertise in life-cycle assessments to coordinate a comprehensive
life-cycle analysis of the used lubricating and industrial oil
management process, from generation through collection,
transportation, and reuse alternatives.
(B) Solicit input from representatives of all used oil
stakeholders in defining the scope and design of the life-cycle
analysis, in conducting the life-cycle analysis, and in issuing a
draft report for public review and comment.
(C) Evaluate the positive and negative impacts of the testing
requirements established in Section 25250.29 of the Health and Safety
Code, the tiered fee on lubricating oil established in Section
48650, and the tiered incentive payments established in Section
48652, on used oil collection rates.
(D) On or before January 1, 2014, submit a report to the
Legislature, in compliance with Section 9795 of the Government Code,
describing the findings of the life-cycle analysis and the evaluation
of the used oil management policies on used oil collection rates
specified in subparagraph (C) and provide any recommendations for
statutory changes that may be necessary to promote increased
collection and responsible management of used oil.
(2) All costs incurred by the board and its contractors in meeting
the requirements of this subdivision shall be covered by the
additional one-half-cent ($0.005) fee established in subdivision (a)
of Section 48650, and effective through December 31, 2013, pursuant
to subdivision (d) of Section 48650.
(c) The requirement for submitting a report pursuant to
subparagraph (D) of paragraph (1) of subdivision (b) is inoperative
on January 1, 2018.
48652. (a) Except as provided in subdivision (d), the board shall
set the recycling incentive at not less than ten cents ($0.10) per
quart. The board may set the amount at an amount higher than ten
cents ($0.10) 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) On and after January 1, 2013, the board shall set the
rerefining incentive at not less than two cents ($0.02) per gallon.
On and after January 1, 2015, the board may set the rerefining
incentive at a higher amount if the board determines that a higher
amount is necessary to promote rerefining of used lubricating 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 unless it finds that the raise will not
adversely affect funding required pursuant to Sections 48631, 48653,
and 48660.5.
(d) The board shall set the recycling incentive for used oil
generated by a certified used oil collection center and an industrial
generator at not less than four cents ($0.04) per quart. The board
may set the amount higher than four cents ($0.04), if the board
determines that a higher amount is necessary to promote the
collection and recycling of used lubricating oil from these
generators and sufficient funds are available.
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) (A) To make 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. 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 eleven million
dollars ($11,000,000), 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 the 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,
eleven million dollars ($11,000,000).
(ii) As the board finds is 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 of 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 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 act 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 ensure a used oil storage
facility or used oil transfer facility causes the used lubricating
oil to be transported, as required by subdivision (a) of Section
48651.
48655. The board may enter into a contract with the department that
will utilize the resources of the department to provide for greater
investigation and enforcement efforts for used lubricating oil
handling and storage and transfer facility operations. The department
shall assist the board in developing the used oil program and
providing assistance to local governments in removing barriers to the
establishment of used oil collection programs.
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 if 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).
48657. The board shall keep accurate books, records, and accounts
of all of its dealings, and these books, records, and accounts, and
any amounts paid into or from the fund, are subject to an annual
audit by an auditing firm selected by the board. The auditing firm or
the board shall also conduct a selective audit of entities making
payments to, or receiving payments from, the board to determine
whether payments required by Section 48650 are being paid to the
board on all lubricating oil sold in California, and that grants and
recycling incentives are being paid out properly by the board.
48650. (a) Except as provided in subdivisions (c) and (d), 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 and
one-half cents ($0.065) for every quart, or twenty-six cents ($0.26)
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. 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.
(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).
(c) Every manufacturer of finished lubricant containing at least
70 percent rerefined base lubricant shall pay to the board an amount
equal to three cents ($0.03) for every quart or twelve cents ($0.12)
for every gallon sold or transferred in the state or imported into
the state, pursuant to the schedule established in subdivision (a).
(d) Except as provided in subdivision (c), on and after January 1,
2014, every oil manufacturer shall pay to the board an amount equal
to six cents ($0.06) for every quart or twenty-four cents ($0.24) for
every gallon of lubricating oil sold or transferred in the state or
imported into the state, pursuant to the schedule established in
subdivision (a).
48650.2. For the purposes of this chapter, the board may collect
the fees pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001) of Division 2 of the Revenue and
Taxation Code).
48650.5. (a) Any person who has made a payment pursuant to Section
48650 on lubricating oil exempted from payment pursuant to
subdivision (a) of Section 48650, and the payment was made either
directly to the board, or indirectly to a vendor from whom it was
purchased, by the adding of the amount of the payment to the price of
the lubricating oil, shall be reimbursed and repaid the amount of
the payment made on that oil, except as otherwise provided in this
section.
(b) The claimant of a refund shall present to the board a claim
supported by the original invoice showing the purchase. The claim
shall state the total amount of the lubricating oil purchased by the
claimant and the manner and the equipment in which the claimant has
used the lubricating oil. The claim shall not be under oath but shall
contain, or be accompanied by, a written declaration that it is made
under the penalty of perjury.
(c) The board, upon the presentation of the claim and the invoice,
shall pay the claimant from the payments collected under Section
48650 an amount equal to the payments collected on the lubricating
oil in respect to which the refund is claimed.
(d) Any person who willfully makes or subscribes to a claim for
refund under this section which the person does not believe to be
true and correct as to every material matter is guilty of a felony,
and upon conviction thereof shall be subject to the penalties
prescribed for perjury by the Penal Code. All applications for refund
under this section based upon the exportation of lubricating oil
from this state shall be filed with the board within the three months
after the close of the calendar month in which the lubricating oil
is exported or 13 months from the date of the purchase of the
lubricating oil, whichever is later. Any application filed after the
prescribed time shall not be considered by the board or any other
agency or officer of the state for any purpose.
(e) In lieu of the collection and refund of the payment on
lubricating oil used by a manufacturer in a manner that entitles a
purchaser to claim a refund under this section, the board may give a
credit to the manufacturer upon the filing of a return and the
determination of the amount of the fee.
(f) In lieu of the collection and refund of the payment on
lubricating oil exported by a licensed manufacturer for use outside
the state in a manner that entitles a manufacturer to claim a refund
pursuant to this section, the board may give a credit to the
distributor upon his or her payment return and the determination of
the amount of his or her payment, in accordance with such rules and
regulations as the board may prescribe.
(g) When an amount represented by a person to a customer as
constituting reimbursement for fees due under this chapter is
computed upon an amount that is not subject to that fee, or is in
excess of that fee amount due, and is actually paid by the customer
to the person, the amount so paid shall be returned by the person to
the customer, upon notification by the board or by the customer that
the excess has been ascertained. If the person fails or refuses to
return that amount, the person shall remit to the board the amount so
paid, if the amount was knowingly or mistakenly computed by the
person upon an amount that is not subject to the fee, or is in excess
of the fee due.
48650.7. In any transaction involving a total volume of oil subject
to payment pursuant to Section 48650 in excess of 10 gallons, the
invoice or other form of accounting of the transaction shall identify
the amount of the payment separately from the cost of the oil.
48651. 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 certified used oil collection center or the
industrial generator, if either of the following conditions apply:
(a) The used lubricating oil is transported by a used oil hauler
to a used oil storage facility or to a used oil transfer facility and
that used oil storage facility or used oil transfer facility causes
that oil to be transported by a used oil hauler 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 for the
purpose of producing recycled oil as defined in Section 48620.
(b) 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 subdivision (c) of Section
48662, for the purpose of producing recycled oil, as defined in
Section 48620.
48651.5. (a) Effective January 1, 2013, 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 to a recycling facility for rerefined 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) (1) To further promote the safe management of used oil, and to
review the changes in policy and program enacted by the Legislature
by Chapter 353 of the Statutes of 2009, without implying that any
further changes are necessary and warranted, the board, using
existing financial resources, shall do all of the following:
(A) Contract with a third-party consultant with recognized
expertise in life-cycle assessments to coordinate a comprehensive
life-cycle analysis of the used lubricating and industrial oil
management process, from generation through collection,
transportation, and reuse alternatives.
(B) Solicit input from representatives of all used oil
stakeholders in defining the scope and design of the life-cycle
analysis, in conducting the life-cycle analysis, and in issuing a
draft report for public review and comment.
(C) Evaluate the positive and negative impacts of the testing
requirements established in Section 25250.29 of the Health and Safety
Code, the tiered fee on lubricating oil established in Section
48650, and the tiered incentive payments established in Section
48652, on used oil collection rates.
(D) On or before January 1, 2014, submit a report to the
Legislature, in compliance with Section 9795 of the Government Code,
describing the findings of the life-cycle analysis and the evaluation
of the used oil management policies on used oil collection rates
specified in subparagraph (C) and provide any recommendations for
statutory changes that may be necessary to promote increased
collection and responsible management of used oil.
(2) All costs incurred by the board and its contractors in meeting
the requirements of this subdivision shall be covered by the
additional one-half-cent ($0.005) fee established in subdivision (a)
of Section 48650, and effective through December 31, 2013, pursuant
to subdivision (d) of Section 48650.
(c) The requirement for submitting a report pursuant to
subparagraph (D) of paragraph (1) of subdivision (b) is inoperative
on January 1, 2018.
48652. (a) Except as provided in subdivision (d), the board shall
set the recycling incentive at not less than ten cents ($0.10) per
quart. The board may set the amount at an amount higher than ten
cents ($0.10) 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) On and after January 1, 2013, the board shall set the
rerefining incentive at not less than two cents ($0.02) per gallon.
On and after January 1, 2015, the board may set the rerefining
incentive at a higher amount if the board determines that a higher
amount is necessary to promote rerefining of used lubricating 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 unless it finds that the raise will not
adversely affect funding required pursuant to Sections 48631, 48653,
and 48660.5.
(d) The board shall set the recycling incentive for used oil
generated by a certified used oil collection center and an industrial
generator at not less than four cents ($0.04) per quart. The board
may set the amount higher than four cents ($0.04), if the board
determines that a higher amount is necessary to promote the
collection and recycling of used lubricating oil from these
generators and sufficient funds are available.
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) (A) To make 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. 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 eleven million
dollars ($11,000,000), 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 the 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,
eleven million dollars ($11,000,000).
(ii) As the board finds is 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 of 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 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 act 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 ensure a used oil storage
facility or used oil transfer facility causes the used lubricating
oil to be transported, as required by subdivision (a) of Section
48651.
48655. The board may enter into a contract with the department that
will utilize the resources of the department to provide for greater
investigation and enforcement efforts for used lubricating oil
handling and storage and transfer facility operations. The department
shall assist the board in developing the used oil program and
providing assistance to local governments in removing barriers to the
establishment of used oil collection programs.
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 if 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).
48657. The board shall keep accurate books, records, and accounts
of all of its dealings, and these books, records, and accounts, and
any amounts paid into or from the fund, are subject to an annual
audit by an auditing firm selected by the board. The auditing firm or
the board shall also conduct a selective audit of entities making
payments to, or receiving payments from, the board to determine
whether payments required by Section 48650 are being paid to the
board on all lubricating oil sold in California, and that grants and
recycling incentives are being paid out properly by the board.
