No. 43529 (Amendment): Section R315-15-14. DIYer Reimbursement

(Amendment)

DAR File No.: 43529
Filed: 02/14/2019 03:50:35 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

It has come to the attention of the Division of Waste Management and Radiation Control, Waste Management (Division) that several Do-It-Yourself (DIY) Used Oil Collection Centers (UOCC) were not receiving their reimbursements due to a conflict between the rule and agreements between the Division and Local Health Departments (LHD). Agreements between the Division and the LHDs require the LHDs to conduct semi-annual inspections of the DIYer UOCCs in their jurisdictions. During these inspections, the LHDs collect the used oil collection log sheets from the DIYer UOCCs. Because this was being done only twice a year, several of the DIYer UOCCs were not receiving their reimbursements because the time period for reimbursement in rule is quarterly. In order to correct this problem, the time period in this rule for reimbursements in being changed to semi-annually. The reimbursement rate for DIYer UOCCs has not increased since 1993. The Division has become aware that some DIYer UOCCs are not recycling their oil because the reimbursement rate is too low to make it worth the cost of transportation. Based on an analysis performed by the Division, it has been determined that $0.16 per gallon in 1993 dollars is equivalent to $0.25 per gallon in 2017 dollars and therefore, the Division is proposing to raise the rate to $0.25 per gallon.

Summary of the rule or change:

Subsection R315-15-14.1(a) is amended to state that the Director will pay a semi-annual recycling fee incentive instead of a quarterly fee incentive. Subsections R315-15-14.2(a) and (c) are amended to change from a quarterly to a semi-annual payment period, and provide an additional 30 days for submission of reports. Additionally, the requirement for DIYer UOCCs to submit receipts as part of their request for reimbursement was removed from this subsection. The amount of the recycling incentive payable to registered DIYer UOCCs is being raised from $0.16 per gallon to $0.25 per gallon in Subsection R315-15-14.1(b).

Statutory or constitutional authorization for this rule:

• Section 19-6-704
• Section 19-6-717

Anticipated cost or savings to:

the state budget:

Because the recycling incentive amount is being increased, the amount of money paid out of the Used Oil Collection Administration Restricted Account will increase. The highest volume of used oil that reimbursements were paid for was 474,205 gallons. This was reimbursed at the rate of $0.16 per gallon for an annual total of $75,873. The increase in the reimbursement rate to $0.25 per gallon would result in an increase in the amount of money payed out of the fund by $42,678 annually. Additionally, there are three state government entities that operate registered DIYer UOCCs and would be eligible for reimbursement at the new rate of $0.25 per gallon. These three entities make up approximately 0.69% of the total number of registered DIYer UOCCs and could potentially receive a total of approximately $295 between the three entities depending on how much used oil is collected. Amounts of used oil collected vary depending on many factors and it is not possible to determine if a DIYer UOCC will collect the same amount of used oil or more than was collected in the past.

local governments:

There are 46 local government entities that operate registered DIYer UOCCs that would be eligible for reimbursement at the new rate of $0.25 per gallon. These 46 entities make up approximately 10.6% of the total number of registered DIYer UOCCs and could potentially receive a total of approximately $4,523 between them depending on how much used oil is collected. Amounts of used oil collected vary depending on many factors and it is not possible to determine if a DIYer UOCC will collect the same amount of used oil or more than was collected in the past.

small businesses:

There are 350 small businesses that operate registered DIYer UOCCs that would be eligible for reimbursement at the new rate of $0.25 per gallon. These 350 businesses make up approximately 80.6% of the total number of registered DIYer UOCCs and could potentially receive a total of approximately $34,418 between them depending on how much used oil is collected. Amounts of used oil collected vary depending on many factors and it is not possible to determine if a DIYer UOCC will collect the same amount of used oil or more than was collected in the past.

persons other than small businesses, businesses, or local governmental entities:

It is not anticipated that these rule changes will provide any direct or indirect cost or savings to persons other than small businesses, businesses, or local government entities because the Division is only aware of the registered DIYer UOCCs that will be directly impacted as stated above.

Compliance costs for affected persons:

It is not anticipated that compliance with these rule changes will result in any increased cost of compliance for any of the regulated entities. It is anticipated that there may be a slight decrease in costs due to the change from quarterly to semi-annual submittals of requests for reimbursement.

Comments by the department head on the fiscal impact the rule may have on businesses:

These rule changes will result in more money being paid out of the Used Oil Collection Administration Restricted Account, however, this is the purpose of the fund. The money paid out will benefit the companies and agencies that operate registered DIYer UOCCs by helping to pay for the recycling of the used oil they collect. Recycling of used oil benefits the citizens of Utah by conserving resources and ensuring that the used oil does not end up contaminating the environment and having a negative effect on human health.

Alan Matheson, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Environmental Quality
Waste Management and Radiation Control, Waste ManagementRoom Second Floor
195 N 1950 W
SALT LAKE CITY, UT 84116-3097

Direct questions regarding this rule to:

• Rusty Lundberg at the above address, by phone at 801-536-4257, by FAX at 801-536-0222, or by Internet E-mail at [e-mail]
• Thomas Ball at the above address, by phone at 801-536-0251, by FAX at , or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

04/01/2019

This rule may become effective on:

04/15/2019

Authorized by:

Alan Matheson, Executive Director

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2019

FY 2020

FY 2021

State Government

$42,678

$42,678

$42,678

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$0

$0

$0

Total Fiscal Costs:

$42,678

$42,678

$42,678

Fiscal Benefits

State Government

$295

$295

$295

Local Government

$4,523

$4,523

$4,523

Small Businesses

$34,418

$34,418

$34,418

Non-Small Businesses

$3,442

$3,442

$3,442

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$42,678

$42,678

$42,678

Net Fiscal Benefits:

$0

$0

$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non - Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

There are 35 non-small businesses that operate registered Do-It-Yourself (DIY) Used Oil Collection Centers (UOCC) in Utah. For a complete listing of NAICS codes used in this analysis, please contact the agency. These businesses make up approximately 8.1% of the total number of registered DIYer UOCCs and could potentially receive a total of approximately $3,442 annually between them depending on how much used oil is collected. Amounts of used oil collected vary depending on many factors and it is not possible to determine if a DIYer UOCC will collect the same amount of used oil or more than was collected in the past.

 

The head of the Department of Environmental Quality, Alan Matheson, has reviewed and approved this fiscal analysis.

 

 

R315. Environmental Quality, Waste Management and Radiation Control, Waste Management.

R315-15. Standards for the Management of Used Oil.

R315-15-14. DIYer Reimbursement.

14.1 DIYER USED OIL COLLECTION CENTER INCENTIVE PAYMENT APPLICABILITY

(a) The Director shall pay a [quarterly]semi-annual recycling fee incentive to registered DIYer used oil collection centers and curbside programs approved by the Director for each gallon of used oil collected from DIYer used oil generators, and transported by a permitted used oil transporter to a permitted used oil processor/re-refiner, burner, registered marketer or burned in accordance with R315-15-2.4(b).

(b) All registered DIYer used oil collection centers can qualify for a recycling incentive payment of up to [$0.16]$0.25 per gallon, subject to availability of funds and the priorities of Utah Code Annotated 19-6-720.

14.2 REIMBURSEMENT PROCEDURES

In order for DIYer collection centers to qualify for the recycling incentive payment they are required to comply with the following procedures.

(a) Submit a copy of all records [and receipts ]of DIYer and farmer, as defined in R315-15-2.1(a)(4), used oil collected during [the quarter]the semi-annual collection periods of January through June and July through December for which the reimbursement is requested. These records shall be submitted within 30 days following the end of the [calendar quarter]semi-annual collection period[in which the DIYer oil was collected and for which reimbursement is requested].

(b) Reimbursements will be issued by the Director within 30 days following the report filing period.

(c) Reports received later than [30]60 days after the end of the [calendar quarter]semi-annual collection period for which reimbursement is requested will be paid during the next [quarterly ]reimbursement period.

(d) Any reimbursement requests outside the timeframe outlined in R315-15-14.2(a) will not be granted unless approved by the Director.

 

KEY: grants, registration, recycling, used oil

Date of Enactment or Last Substantive Amendment: [September 14, 2018]2019

Notice of Continuation: March 10, 2016

Authorizing, and Implemented or Interpreted Law: 19-6-704; 19-6-720

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