Report Title:

Used Oil Program; Establishment



Establishes a comprehensive used oil collection and recycling program. (SD2)



S.B. NO.



S.D. 2









SECTION 1. Chapter 342J, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:


342J-A Short Title. This part shall be known as the Hawaii Used Oil Collection and Recycling Act.

342J-B Definitions. As used in this part, unless the context otherwise requires:

"Department" means the department of health.

"Fund" means the used oil collection and recycling special fund.

"Generator" means any person, by site, whose act or process produces used oil or used oil fuel or whose act first causes used oil or used oil fuel to become subject to regulation.

"Import" means to buy, bring, or accept the delivery of lubricating oil from an address, supplier, or entity outside of the State, into the State.

"Lubricating oil" includes, but is not limited to, any oil intended for use in an internal combustion engine crankcase, transmission, gearbox, or differential in an automobile, bus, truck, marine vessel, plane, train, heavy equipment, or other machinery powered by an internal combustion engine.

"Oil importer" means any person or entity who imports lubricating oil into the State.

"Quarter" means a period of three consecutive months beginning on the first calendar day of July, October, January, and April and ending on the last calendar day of September, December, March, and June.

"State" means the State of Hawaii.

"Used oil" means any oil, regardless of whether it is a hazardous waste, that has been refined from crude oil or any synthetic oil that has been used and because of such use is contaminated by physical or chemical impurities.

"Used oil collection center" means any site or facility that holds a permit to manage used oil and accepts or aggregates, and stores, used oil collected from used oil generators and individuals who generate used oil through the maintenance of their household or their personal vehicles.

342J-C Registration for oil importers; recordkeeping requirements; submittals. (a) After October 1, 2001, any person who conducts business in this State as an oil importer shall register with the department. Each oil importer who registers with the department shall notify the department of any change in address.

(b) All oil importers shall maintain at their place of business, for a minimum of three years, full and complete records relating to the importation of lubricating oil, which records document:

(1) The type, cost, and number of gallons of lubricating oil imported by the oil importer;

(2) The date of receipt of the lubricating oil; and

(3) The name, address, and phone number of the person outside of the State that is selling or providing to the oil importer the imported lubricating oil.

The department may adopt rules pursuant to chapter 91 that specify the type of records that the oil importer shall maintain. The records shall be made available, upon request, for inspection by the department.

(c) All oil importers shall submit to the department documentation, including inventory reports, that identifies for each quarter the inventory records, the number of gallons of lubricating oil imported in the State, the number of gallons sold in the State, and other information the department may require. The documentation shall be submitted on or before the ending date of each quarter.

342J-D Used oil collection and recycling special fund.

(a) The department shall establish a used oil collection and recycling special fund, into which shall be deposited:

(1) All advance assessment fees received from lubricating oil importers;

(2) All fees from permits required under this part;

(3) All penalties collected pursuant to this part;

(4) All fees placed on lubricating oil;

(5) All interest earned; and

(6) All grants or other moneys received pursuant to this part.

(b) Moneys in the fund shall be used for the management of the used oil collection and recycling program.

(c) A maximum of fifteen per cent of the revenues deposited into the fund, in any one year, shall be used by the department for administrative costs that may include, but are not limited to, implementing the fee program under this part; developing programs to prevent the improper disposal of used oil; and supporting permitting, monitoring, and enforcement activities.

342J-E Fees. (a) All oil importers shall pay to the department a fee of 5 cents for every quart, or 20 cents for every gallon, of lubricating oil that the oil importer imports into the State, for use in the State.

(b) The fee under this part shall not be collected on lubricating oil that is:

(1) Exported or sold for export outside of the State;

(2) Imported by an oil importer that:

(A) Reuses or recycles, or both, used oil for energy conversion on site; and

(B) Is in compliance with chapter 342J and its implementing rules; or

(3) Imported into the State in an amount not more than five hundred gallons per quarter per oil importer.

(c) The fee under this part is in addition to all other state, county, or municipal fees and taxes imposed on lubricating oil.

342J-F Fee payment. (a) Payment of the fee shall be made quarterly based on the inventory records of oil importers, except for those importers subject to section 342J-E(b). The fee due from oil importers shall be equal to the number of gallons of lubricating oil provided in the inventory records of that quarter multiplied by the fee of 5 cents for every quart or 20 cents for every gallon.

(b) Payment shall be made by check or money order to the "State of Hawaii, Department of Health, Solid and Hazardous Waste Branch". Each payment shall be deposited into the used oil collection and recycling special fund.

(c) All payments shall be sent to the department not later than the last day of the month following the end of the previous quarter.

342J-G Grants. (a) The department shall use moneys from the fund to develop a grants program to encourage the collection, reuse, and proper disposal of used oil. No grant may be issued for any project unless the department approves the project.

(b) The department may consider for grant assistance projects that will reduce the improper disposal of used oil, encourage the reuse of used oil, or facilitate the use of refined oil. Projects may include, but are not limited to, establishing used oil collection centers and curbside pickup; constructing infrastructure like storage and recycling or re-refining facilities; promoting market development and reuse opportunities for recovered used oil; and developing research, testing, education, and demonstration projects that promote used oil recovery, recycling, and reuse.

342J-H Reporting requirements for used oil projects. Using the forms prescribed by the department, all persons implementing used oil projects that are funded under this part shall submit to the department quarterly reports detailing, for each month, the amount of used oil collected, stored, recycled, and transported to a used oil collection center or used to generate energy. The reports shall be submitted on or before the ending date of each quarter.

342J-I Enforcement and penalties. If the director determines that any person has violated or is violating this part or any rule adopted pursuant to this part, the director may initiate an action or impose penalties for violations, or both, as set forth in sections 342J-7,

342J-8, 342J-9, 342J-10, and other applicable sections of this chapter.

342J-J Contract for administrative services. The department may contract with a third party for services that assist the department in the administration of this part.

342J-K Rulemaking. The director may adopt rules pursuant to chapter 91 that are necessary for the purposes of this part."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 3. In codifying the new part added to chapter 342J, Hawaii Revised Statutes, by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in the designation of the new sections in this Act.

SECTION 4. This Act shall take effect upon its approval.