1 / 25

Status of the Used Oil Recycling Program (Allocation for FY 04/05)

Status of the Used Oil Recycling Program (Allocation for FY 04/05). Overview of Used Oil Recycling Program (UOP) Theory and Impact of the UOP Fund New Direction of UOP based on Cal Poly Assessment Allocation for Statewide Education and Outreach ($752,000)

decima
Télécharger la présentation

Status of the Used Oil Recycling Program (Allocation for FY 04/05)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Status of the Used Oil Recycling Program (Allocation for FY 04/05)

  2. Overview of Used Oil Recycling Program (UOP) Theory and Impact of the UOP Fund New Direction of UOP based on Cal Poly Assessment Allocation for Statewide Education and Outreach ($752,000) Proposal to Increase Available Resources Objectives of Agenda Item

  3. Goals of the California Oil Recycling Enhancement (CORE) Act Implement Recycling Incentive Program Establish a network of Collection Centers for Used Oil Implement Grant Programs (5) Promote Statewide Education and Outreach activities

  4. Revenue & Total Resources • Available resources for expenditure from the Used Oil fund are generated from: • Oil manufacturer fees • Interest earned on cash in the fund • Unexpended funds from prior years (fund balance) • PRC §48653 authorizes resources available to the IWMB to be continuously appropriated • Adjust spending authority annually for certain Oil programs to meet the statutory prescribed funding formula

  5. The Statutory “Formula” • Prescribed in statute and establishes for Oil programs: • Funding order • Amount available • The statutory formula trends Used Oil fund allocations to a point where annual expenditures equal annual revenue • Attachment 3 describes the formula based on 5 categories of expenditure: • Category 1-3: Primary Expenditures • Category 4-5: Competitive grant and Education/Outreach programs

  6. UOP Fund Allocation Priorities According to Statute

  7. Example: Expenditures = Revenue(dollars in thousands)

  8. Example: Expenditures Exceed Revenue(dollars in thousands)

  9. Current Fund Status(dollars in thousands)

  10. The Statutory Formula: Annual Expenditures = Annual Revenue • UOP must operate within the amount of annual revenue collected • When allocations for expenditures equal annual revenue, the following is true: • Projected Annual Revenue – Primary Expenditures (Category 1-3) = Allocations for competitive grant/education programs (Categories 4-5) • ($20.6M - $19.0M = $1.6M) • Two important factors have affected allocations for Competitive grants and Education/Outreach programs: • Fund balance has diminished per the statutory formula; supplemental funding by the fund balance is temporary and should not be considered available on-going • Over time, the difference between annual revenue and primary costs has decreased, leaving less available for Competitive grant and Education/Outreach programs

  11. Factors Impacting Revenue and Expenditure Revenue: • Decrease in interest rate and earnings • Projected flat oil revenue • Refund and exemption claims to manufacturers Expenditure: • Increase in Administrative cost • Direct appropriations to other agencies

  12. Direction for Second Decade Cal Poly Assessment (July ’03) Transition from “getting the money out” to “Promoting Program Improvements” Analysis of recommendations led to 7 strategies

  13. Proposed Implementation Plan for Used Oil Program: Strategies Maximize Effectiveness of Used Oil Collection Infrastructure Promote Source Reduction & P2 Promote Highest & Best Use of Used Oil Enhance UOP Visibility & Image Improve Effectiveness & Efficiency of Program (streamlining) Seek Public/Private Partnerships Promote Program Improvements thru Transfer of Best Management Practices

  14. Strategy 1: Maximize Effectiveness of Used Oil Collection Center Infrastructure • Expand Certified Collection Center Program • Expand Used Oil Filter Collection Strategy 2: Promote Source Reduction and Pollution Prevention • Generate List of Policy Options for Source Reduction (oil change intervals, etc) • Education re: used oil impact on stormwater

  15. Strategy 3: Promote Highest & Best Use of Used Oil • Encourage blending of used oil, re-refining or use as asphalt flux • Re-refined Oil Use by Fleets Strategy 4: Enhance UOP Visibility • Evaluate effectiveness of existing local & statewide used oil recycling message • Spotlight programs on CIWMB website

  16. Strategy 5: Continuously Improve Effectiveness & Efficiency of Program (grant process streamlining)Strategy 6: Seek Opportunities for Public/Private PartnershipsStrategy 7: Promote Program Improvements Thru Transfer of Best Practices (conference)

  17. Statewide Education and Outreach (Category 5)

  18. Contract Concepts (Category 5) Extended Oil change: examine the feasibility of an outreach campaign as a source reduction promotion. Publication and Education Analysis: identify “best practices” and determine if regional or statewide oil recycling message is recognizable. Blending Used Oil: determine if the blending of used oil back into the crude oil refining process is marketable, environmentally friendly and economical.

  19. Statewide Education and Outreach (Category 5) Other Board Activities • Student Assistance (non UOP) • Recycled Product Trade Show

  20. Proposal to Increase Revenue Increase Revenue: • Eliminate advances on Block Grants • Verify revenue and exemption claims from oil manufacturers Decrease Expenditure: • Reevaluate the DOF audit contract • Reassess support to: • CalMax/WRAP program • Recycled Product Trade Show • Farm and Ranch grant

  21. Proposal to Increase Available Resources for the UOP (Worksheet)

  22. Request Board Approval Staff Recommends: Approval of the proposed Allocation and Contract Concepts for FY 2004/05 and direction on the proposals to increase resources for the Fund for FY 2005/06 and beyond and adopt Resolution number 2004-314.

More Related