BILL ANALYSIS Ó
SENATE COMMITTEE ON AGRICULTURE
Senator Cathleen Galgiani, Chair
2015 - 2016 Regular
Bill No: AB 655 Hearing Date: 7/7/15
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|Author: |Quirk |
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|Version: |7/1/15 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Anne Megaro |
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Subject: Rendering: inedible kitchen grease: registration fee:
additional fees.
SUMMARY :
This bill would add findings and declarations to the Food and
Agricultural Code in regards to the rendering industry and the
value of recycling waste animal tissue. This bill would
increase the registration fee and other additional fees charged
by the California Department of Food and Agriculture (CDFA) to
cover administrative costs associated with the transportation of
inedible kitchen grease and would authorize CDFA to raise
specified fees only upon recommendation of the Rendering
Industry Advisory Committee.
BACKGROUND AND EXISTING
LAW :
Inedible kitchen grease (IKG) is a byproduct of commercial
cooking that can be rendered into a valuable product and used
for biofuel or as an ingredient in animal feed. Typically,
restaurants will store IKG behind buildings and in alleyways
awaiting pick-up and transportation to rendering facilities.
Due to the increasing value of biofuels, IKG theft has risen
over the past several years and has proven to be a relatively
easy and profitable target for thieves.
Existing Law:
1) Creates the CDFA Inedible Kitchen Grease Program,
established in 1995, to regulate and enforce IKG laws and
work closely with local law enforcement to conduct
AB 655 (Quirk) Page 2 of ?
investigations and prevent IKG theft (Food and Agricultural
Code §19300 et seq.).
2) Requires all renderers and collection centers to apply
for and obtain a license from CDFA and requires all IKG
transporters to be registered.
3) Authorizes CDFA to charge additional fees necessary to
cover the cost of administering this program, not to exceed
$300 per year per vehicle and $3,000 per year per
registered IKG transporter.
4) Exempts an individual from 75% of the additional
administrative fee if the individual is transporting IKG
for their own personal, noncommercial use as an alternative
fuel, provided specific requirements are met.
5) Authorizes CDFA to revoke, suspend, or refuse to issue a
renderer or collection center license or transporter
registration under specified circumstances, including
previous violations of IKG transportation laws or
regulations.
6) Requires licensed renderers, collection center
operators, and registered transporters to retain specified
records reflecting sales and transportation of IKG for two
years.
7) Prohibits anyone from accepting IKG from any
unregistered transporter and from possessing any IKG that
is knowingly stolen and issues fines and/or imprisonment
for violations of these provisions.
8) Creates the Rendering Industry Advisory Board to provide
recommendations to the secretary of CDFA regarding
rendering and IKG enforcement, fees, annual budget, and
regulations (Food and Agricultural Code §19218).
PROPOSED
LAW :
This bill:
1) Adds findings and declarations to the Food and
Agricultural Code in regards to the rendering industry and
AB 655 (Quirk) Page 3 of ?
the value of recycling waste animal tissue.
2) Increases from $100 to $250 the registration fee for
transporters of IKG.
3) Increases from $3,000 to $10,000 the maximum annual fee
charged to each licensed renderer and collection center.
4) Increases, from $300 to $500 per vehicle, and from
$3,000 to $10,000 per registered transporter, the maximum
fees charged by CDFA to cover administrative costs
associated with transportation of IKG.
5) Authorizes the secretary, upon recommendation of the
Rendering Industry Advisory Board, to determine the
additional fee amounts necessary to provide the revenue
needed to administer provisions regarding renderers and the
transportation of IKG.
6) Makes technical and conforming changes.
ARGUMENTS IN SUPPORT:
According to the author, "The rendering industry is critical to
the health and safety of California. Rendering is an effective
tool in eliminating many human and animal disease pathogens,
protecting our groundwater and air resources, and greatly
reducing greenhouse gas emissions compared to other alternative
disposal options. [?] More funds are needed to maintain an
effective enforcement system for [the IKG] program."
COMMENTS :
Need for this bill. The Rendering Industry Advisory Committee
discussed at their board meeting on December 4, 2014, the need
to "select a sustainable mechanism to help support the Rendering
Enforcement Program and establish strategic priorities for
future program activities." A motion passed unanimously in
support of raising fees to support the program.
Secretary authority. This bill would authorize the secretary to
raise specified fees only upon recommendation from the Rendering
Industry Advisory Committee. In current law, the secretary's
authority to raise fees is not restricted.
AB 655 (Quirk) Page 4 of ?
Liquid gold. IKG has become a valuable commodity in the last
decade, especially in light of rising gasoline prices and
corresponding growth in the biodiesel fuel industry. Recycling
an otherwise 'grimy waste product' into a valuable feed or
biofuel resource is attractive and profitable. According to a
recent article, IKG is traded in commodity markets, and its
value has skyrocketed from $0.66 per gallon in April 2001 to
$3.68 per gallon in April 2011 ("Grease is gold; thieves get
bold." News & Observer, NC. June 1, 2011). A more recent
article published in The New Yorker states that a thief driving
down a strip-mall alleyway can collect $4,000 worth of IKG in
half an hour ("Hot Grease." The New Yorker. November 18,
2013.)
IKG theft program. According to the CDFA IKG Theft Program,
legitimate companies and restaurants are losing millions of
dollars to theft and container damage by IKG thieves. Thieves
break into storage containers and pump out the contents into a
truck, where a truckload could bring in as much as $600 at a
grease recycling center.
Environmental impact. In addition to theft concerns, the
process of rendering IKG creates harmful waste byproducts that
must be handled and disposed of properly so as not to damage or
contaminate waterways or the environment. It is unlikely that
black-market IKG thieves are equipped to handle these chemicals.
RELATED
LEGISLATION :
AB 1566 (Holden), Chapter 595, Statutes of 2014. Expands the
authorization of CDFA and California Highway Patrol employees to
enforce inedible kitchen grease laws and regulations. Extends
the sunset date for the collection of annual fees charged by
CDFA; authorizes CDFA to deny, suspend, or revoke licenses and
registrations; increases violation penalties; and makes
conforming and technical changes.
AB 2378 (Huber), Chapter 303, Statutes of 2012. Increases
maximum fines for specified crimes related to IKG theft.
Requires transporters, renderers, and collection centers to
maintain records on IKG for two years.
SB 513 (Cannella), Chapter 393, Statutes of 2011. Creates the
Rendering Industry Advisory Board, including membership and
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duties; and reauthorizes the licensing of renderers and the
collection of fees, to sunset January 1, 2016.
AB 2612 (Agriculture), Chapter 393, Statutes of 2010. This
omnibus bill, among other provisions, expands rendering
definitions of a "collection center," changes collection
centers' licensure expiration dates, and exempts collection
centers from specified fees.
AB 1249 (Galgiani), Chapter 280, Statutes of 2009. Authorizes
the transportation of dead animals to alternative facilities
during a state of emergency; extends the sunset date to January
1, 2016, for the CDFA administration fee for the Inedible
Kitchen Grease Program.
PRIOR
ACTIONS :
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|Assembly Floor: |75 - 1 |
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|Assembly Appropriations Committee: |17 - 0 |
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|Assembly Agriculture Committee: |10 - 0 |
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SUPPORT :
California Grain and Feed Association
Pacific Coast Rendering Association
OPPOSITION :
None received
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