State of California Raises Oil Recycle Fee
California Oil Recycling Enhancement Act
What is the oil recycling enhancement act?
The California Oil Recycling Enhancement Act, which is administered by the California Integrated Waste Management Board, is a law designed to discourage the illegal disposal of used oil. This law requires oil manufacturers to pay to the Board $0.16 for each gallon of lubricating oil sold in California. Registered industrial generators, curbside collection programs, and certified collection centers are eligible to receive $0.16 for each gallon of used lubricating oil recycled.
In September 2009, Governor Schwarzenegger signed Senate Bill (SB) 546 (Lowenthal) making significant changes to the California Oil Recycling Enhancement Act. The bill restructures the lubricating oil recycling fee and the used oil recycling incentive payment system, streamlines the used oil grant programs, promotes the production and use of re-refined oil, makes changes to the used oil certified collection center program, and makes various changes to the handling and management of used oil.
Below is a short summary of the information provided by the State of California regarding Fee Collection and Payments For Recycle Incentives.For more information, please visit http://www.calrecycle.ca.gov/usedOil/PolicyLaw/default.htm.
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.
