AB1325 - Lubricants and waste oil: producer responsibility.

Amended IN Assembly March 24, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 1325 Introduced by Assembly Member Flora Michelle Rodriguez February 21, 2025 An act to amend Section 30234 of the Public Resources Code, relating to coastal resources. add Section 42042 to, to add Article 11 (commencing with Section 48692) to Chapter 4 of Part 7 of Division 30 of, and to add Chapter 4.5 (commencing with Section 48695) to Part 7 of Division 30 of, the Public Resources Code, relating to solid waste. LEGISLATIVE COUNSEL'S DIGEST AB 1325, as amended, Flora Michelle Rodriguez. California Coastal Act of 1976: commercial fishing and recreational boating. Lubricants and waste oil: producer responsibility. (1) Under existing law, as part of the hazardous waste control laws, the Department of Toxic Substances Control (DTSC) generally regulates the management and handling of hazardous waste and hazardous materials. Existing law authorizes a public agency, as defined, to operate a household hazardous waste collection facility under permit from DTSC. The California Integrated Waste Management Act of 1989, which is administered by the Department of Resources Recycling and Recovery (CalRecycle), requires a city and a county to prepare and submit to CalRecycle a countywide integrated waste management plan. The act requires the plan to include a household hazardous waste element that identifies a program in each city and county for the safe collection, recycling, treatment, and disposal of hazardous wastes that are generated by households. The California Oil Recycling Enhancement Act, administered by CalRecycle, establishes a used oil recycling program to promote and develop alternatives to illegal disposal of used oil. The act imposes a charge for every gallon of lubricating oil sold or transferred in the state, or imported into the state for use in the state, as specified. The act requires these charges to be deposited into the California Used Oil Recycling Fund, which is continuously appropriated to, among others, pay recycling incentives and to implement local used oil collection programs, as provided. This bill would make the act, as amended by this bill, inoperative upon the completion of specified conditions, including that CalRecycle submits a letter to the relevant committees of the Legislature indicating that specified conditions have been met and that CalRecycle is prepared to implement a lubricant and waste oil responsibility program as discussed below. This bill would create a producer responsibility program for lubricants and waste oil and require a producer responsibility organization (PRO) to provide a convenient collection and management system for covered products at no cost to residents or local governments. The bill would define “covered product” to mean a petroleum-based automotive product and other related products, as specified. The bill would require a producer of a covered product to register with the PRO, which would be required to develop and implement a producer responsibility plan for the collection, transportation, and the safe and proper management of covered products. The bill would require CalRecycle, in coordination with DTSC, to adopt regulations to implement the program with an effective date no earlier than July 1, 2028. This bill would require the PRO, within 12 months of the effective date of the regulations, to submit a product responsibility plan to CalRecycle. The bill would require the plan to include specified elements, including a funding mechanism that provides sufficient funding to carry out the plan. The bill would require, within 6 months of receipt of the plan, CalRecycle, in collaboration with DTSC, to approve, approve in part, or disapprove the plan, as specified. The bill would require CalRecycle to notify the PRO of its decision. If CalRecycle does not approve the plan in full, then the bill would require CalRecycle to specify the reasons for disapproval or identify the portions of the partially approved plan that do not comply with the program, as applicable. The bill would require the PRO to submit a revised plan if its plan is not fully approved. The bill would conditionally approve a plan if CalRecycle does not approve, approve in part, or disapprove a plan within one year of receipt of the plan. This bill would require the PRO to implement its plan within 90 days of approval. The bill would require the plan to be fully funded in a manner that equitably distributes the plan’s costs among participant producers, as specified. The bill would require the PRO to reimburse local jurisdictions for costs associated with collecting illegally dumped covered products and for providing a convenient collection system for covered products if the PRO’s plan relies on local jurisdictions to collect or manage covered products. This bill would require the PRO to prepare and submit to CalRecycle an annual report describing the activities carried out pursuant to the plan. The bill would require the PRO to retain specified documents, annually audit its accounting books, and make documents available to CalRecycle for review, as specified. The bill would require all reports and records provided to CalRecycle pursuant to the program to be provided under the penalty of perjury. By expanding the scope of a crime, the bill would impose a state-mandated local program. This bill would require a participant producer, through the PRO, to pay CalRecycle, on an unspecified schedule, an annual administrative charge, as determined by CalRecycle and DTSC. The bill would require the charge be set at an amount that is adequate to cover CalRecycle’s and DTSC’s actual and reasonable costs of administering and enforcing the program. The bill would provide for the imposition of administrative civil penalties on producers and other specified persons who violate the program. The bill would establish the Lubricant and Waste Oil Producer Responsibility Fund in the State Treasury and would require the administrative charges collected by CalRecycle to be deposited into that fund for expenditure by CalRecycle, upon appropriation by the Legislature, to cover CalRecycle’s cost to implement the program. The bill would also establish the Lubricant and Waste Oil Penalty Account in the Lubricant and Waste Oil Producer Responsibility Fund and would require that the civil penalties collected by CalRecycle pursuant to the program be deposited into that account, for expenditure by CalRecycle, upon appropriation by the Legislature, for activities related to the collection, reuse, and recycling of covered products, grants for related purposes, and the administration and enforcement of the program. (2) Existing law, the Plastic Pollution Prevention and Packaging Producer Responsibility Act, establishes a producer responsibility program designed to ensure that producers of single-use packaging and food service ware covered by that program take responsibility for the costs associated with the end-of-life management of that material and ensure that the material is recyclable or compostable. The act requires producers, either individually or through participation in a producer responsibility organization, to have an approved plan that, among other things, describe how the producer or organization will comply with the act. This bill would exempt a product from the act if the product is included in an approved product responsibility plan pursuant to the lubricant and waste oil producer responsibility program, discussed above. (3) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. The California Coastal Act of 1976 provides for the planning and regulation of development within the coastal zone, as defined. The act requires facilities serving the commercial fishing and recreational boating industries to be protected and, where feasible, upgraded, and prohibits existing commercial fishing and recreational boating harbor space from being reduced unless the demand for those facilities no longer exists or adequate substitute space has been provided. This bill would make nonsubstantive changes to the latter provision. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO YES Local Program: NO YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 42042 is added to the Public Resources Code, to read: 42042. This chapter does not apply to a covered product if the covered product is included in an approved producer responsibility plan pursuant to the Lubricant and Waste Oil Producer Responsibility Act of 2025 (Chapter 4.5 (commencing with Section 48695) of Part 7). SEC. 2. Article 11 (commencing with Section 48692) is added to Chapter 4 of Part 7 of Division 30 of the Public Resources Code, to read: Article 11. Operation 48692. This chapter shall become inoperative when all the following are met: (a) The board has adopted regulations pursuant to Section 48695.02. (b) The board has approved a producer responsibility plan, as defined by Section 48695.04, for the purposes of Chapter 4.5 (commencing with Section 48695). (c) The board has provided notice to the producer responsibility organization of its intent to send the letter described in subdivision (d) at least 90 days before sending the letter. (d) The board has submitted to the relevant committees of the Legislature, in conformance with Section 9795 of the Government Code, a letter indicating that the conditions in subdivisions (a) to (c), inclusive, have been met, that the board is prepared to implement Chapter 4.5 (commencing with Section 48695), and that the producer responsibility organization is prepared to implement the producer responsibility plan. The board shall post the letter on its internet website. SEC. 3. Chapter 4.5 (commencing with Section 48695) is added to Part 7 of Division 30 of the Public Resources Code, to read: CHAPTER 4.5. Lubricant and Waste Oil Producer Responsibility Act of 2025 Article 1. General Provisions and Definitions 48695. (a) This chapter shall be known, and may be cited, as the Lubricant and Waste Oil Producer Responsibility Act of 2025. (b) The purpose of this chapter is to provide for the safe and proper management of used oil, automotive fluids, lubricant products, and the packaging containing these products, which is costly for California’s local governments, and may cause significant damage to the environment when managed improperly. 48695.02. (a) (1) Except as provided in Section 48695.30, CalRecycle, in coordination with DTSC, shall adopt, amend, or repeal, in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), regulations to implement this chapter. CalRecycle shall not adopt regulations pursuant to this section with an effective date earlier than January 1, 2028. (2) As part of the regulations, CalRecycle shall establish methodologies to determine a baseline amount of covered products improperly disposed of or dumped and to measure progress towards meeting the performance-based standards in Section 48695.32. (b) On or before January 1, 2028, DTSC shall establish and post on its internet website a list of covered products. (c) On or before January 1, 2028, CalRecycle shall approve one producer responsibility organization that meets the requirements of this chapter. (d) When CalRecycle updates its material characterization study pursuant to subdivision (d) of Section 42355.51 in 2028, CalRecycle shall also include the following information: (1) The amount of covered products being improperly disposed of or dumped. (2) The amount of covered products being properly collected and managed through a hazardous waste facility. 48695.04. For purposes of this chapter, the following definitions apply: (a) (1) “Approved plan” means a producer responsibility plan that has been approved by CalRecycle pursuant to Section 48695.30 and that has not been revoked by CalRecycle pursuant to Section 48695.64. (2) A conditionally approved plan is an approved plan, except as used in Section 48695.30. (3) A partially approved plan is not an approved plan. (b) “Brand” means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer. (c) “CalRecycle” means the Department of Resources Recycling and Recovery. (d) “Consumer” means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity. (e) “Contact information” means a name, physical address, mailing address, email address, and phone number. (f) (1) “Covered product” means a petroleum-based automotive product and other related products, including, but not limited to, antifreeze, engine additives, engine oils, fuel additives, greases, marine lubricants, transmission and gear oils, two-cycle oils, and other fluids commercially available to a nonbusiness consumer. (2) “Covered product” includes the packaging for any covered product. (g) “DTSC” means the Department of Toxic Substances Control. (h) “Importer” means either of the following: (1) A person qualifying as an importer of record for purposes of Section 1484(a)(2)(B) of Title 19 of the United States Code with regard to the import of a covered product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States. (2) A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state. (i) “Participant producer” means a producer that is registered with the producer responsibility organization. (j) (1) “Producer” means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product into the state under the person’s own name or brand. (2) If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner or exclusive licensee of a brand under which the covered product is sold or distributed into the state. For purposes of this subdivision, an exclusive li [Text truncated for display. Full text available on Congress.gov.]