PETITION OF:

SECTION 1. Chapter 21 of the General Laws is hereby amended by striking out section 52A and inserting in place thereof the following section:—
Section 52A. As used in this section, the following words shall, unless the context requires otherwise, have the following meanings:—
(1) Definitions.
“Automotive oil”, any oil, which has been refined from crude or synthetic oil, that is sold in packages or containers containing less than fifty-five (55) gallons and classified for use in an internal combustion engine, crankcase, transmission, gear box, or differential, including that for an automobile, bus, truck, boat, lawnmower, or household power equipment.
“Collection center” or “Used oil collection center”, a location or facility that collects used oil pursuant to this section.
“Department”, the Department of Environmental Protection.
“First time seller”, the first commercial entity to deliver, transport, or sell automotive oil to any wholesaler, distributor, or retailer in Massachusetts.
“Fund”, the Used Oil Recycling Fund created by this section.
“Marina”, any entity whose primary business involves servicing powered watercraft or selling marine equipment and supplies, including automotive oil intended for use in boats.
“On-site installer”, any business conducting on-site automotive oil changes for individuals, including, but not limited to, quick oil change centers, service stations, and automotive service establishments.
“Recycle”, reclaiming, reprocessing, re-refining, or otherwise preparing used oil so that it may be burned for energy recovery or reused as a petroleum product in accordance with state and federal regulations. Recycle does not include burning for energy recovery in space heaters. This definition is not intended to amend or supersede the definition of recycling in 310 CMR 16.00.
“Recycling incentive payment”, the amount of money paid by the Department of Revenue from the Transaction Account to used oil collection centers for used oil that is recycled off the site of a used oil collection center. The amount of the recycling incentive payment shall be as follows:
(a) for used oil collection centers that are not on-site installers or marinas, five (5) cents per quart of used oil recycled off-site. The Department may adjust this amount to ensure the solvency of the Fund.
(b) for used oil collection centers that are on-site installers or marinas, an amount not to exceed five (5) cents per quart of the used oil recycled off-site. The amount is to be determined by the Department.
“Retailer”, a business, other than an on-site installer or a marina, that sells automotive oil.
“Transaction Account”, the Used Oil Transaction Account created by this section.
“Used oil”, any automotive oil which becomes unsuitable for its original purpose due to loss of original properties or presence of impurities.
(2) Used Oil Transaction Account.
(a) There shall be established a Used Oil Transaction Account administered by the Department of Revenue.
(i) The first time seller to sell automotive oil in Massachusetts shall pay into the Transaction Account five (5) cents per quart of automotive oil sold in Massachusetts.
(ii) Payments by first time sellers of automotive oil into the Transaction Account shall begin six months after the effective date of this section, and shall occur monthly thereafter.
(iii) The Department of Revenue shall make recycling incentive payments to collection centers from the Transaction Account beginning six (6) months after payments by first time sellers into the Transaction Account, and thereafter on a quarterly basis.
(iv) Collection centers may present claims to the Department of Revenue for reimbursement of the costs associated with the disposal of contaminated oil. Such claims shall be paid by the Department of Revenue from the Transaction Account, subject to the approval of the Department.
(v) The Department of Revenue shall maintain a balance in the Transaction Account in an amount equal to three (3) times the monthly average of the first six (6) months of payments made from the Transaction Account to collection centers.
(3) Used Oil Recycling Fund.
(a) There shall be established a Used Oil Recycling Fund administered by the Department of Revenue.
(i) Any amounts in excess of the Transaction Account balance shall be transferred from the Transaction Account to the Fund by the Department of Revenue. Such transfers shall commence six (6) months after payments by first time sellers into the Transaction Account, and shall occur quarterly thereafter, following payment of recycling incentive payments to collection centers.
(ii) Any fines or penalties collected for violations of this section shall be credited to the Fund.
(b) Amounts deposited in the Fund shall be used for the following purposes:
(i) grants, loans, or other financial assistance to a city, town, county or other public or private entity pursuant to subsection 5;
(ii) public education programs concerning the proper handling, recycling, and management of used oil, including maintaining the toll-free telephone number described in subsection 5;
(iii) signs required pursuant to subsection 6;
(iv) used oil disposal, pursuant to subsection 7(e); or
(v) payment of costs incurred by the Department and the Department of Revenue for the administration of this section.
(4) Powers and duties of the Department of Revenue.
(a) The Department of Revenue shall be responsible for administering the Transaction Account and the Fund. Administration shall include collecting five (5) cents per quart payment from first-time sellers, transferring monies from the Transaction Account to the Fund, paying recycling incentive payments to collection centers, and paying for administrative expenses incurred under this section.
(b) Within six (6) months of the effective date of this section, the Department of Revenue shall establish procedures or requirements for the proper administration of the Transaction Account and the Fund and to otherwise carry out its duties under this section.
(c) The Department of Revenue shall ensure the propriety of claims made by collection centers for recycling incentive payments, and may promulgate regulations, in consultation with the Department, to require collection centers to maintain records of used oil collected and recycled, to prepare for the auditing of such records, and to make other provisions as necessary to ensure the propriety of such claims.
(d) The Department of Revenue shall supply the Department with information necessary for the report required pursuant to subsection 5(a)(viii).
(5) Powers and duties of the Department of Environmental Protection.
(a) Subject to appropriation from the Fund, the Department shall:
(i) award grants, loans, or other financial assistance to cities, towns, counties, or other public or private entities for the establishment of used oil collection centers at publicly or privately owned locations, including, but not limited to, fire stations, police barracks, public works and county garages, solid waste management facilities, marinas, and docks;
(ii) award grants, loans, or other financial assistance to cities, towns, counties, or other public or private entities that offer curbside collection of used oil from households. The reasonable costs of collection containers and tanks, truck retro-fitting, and similar costs associated with the curbside collection of used oil shall be eligible for reimbursement from the Fund;
(iii) Provide technical assistance to used oil collection centers or other public or private entities as to the proper handling, recycling, or management of used oil;
(iv) Establish and maintain a toll-free telephone number to provide information about the proper handling, recycling and management of used oil, and about the locations and operating hours of used oil collection centers and other used oil collection programs within Massachusetts;
(v) Develop public education programs concerning the proper handling, recycling, and management of used oil;
(vi) Develop and provide signs to businesses for the collection of used oil pursuant to subsection 6;
(vii) At least once every other year beginning three (3) years after the effective date of this section submit a report to the clerks of the House of Representatives and the Senate, the Joint Committee on Natural Resources and Agriculture, the House Ways and Means Committee, and the Senate Ways and Means Committee. The report shall include:
(A) the total amount of payments made into the Transaction Account;
(B) the total amounts expended from the Transaction Account and the Fund;
(C) the number of gallons of used oil collected by collection centers;
(D) costs incurred by collection centers;
(E) an evaluation of the effectiveness of recycling incentive payments as a financial incentive for collection centers and individuals.
(b) The Department shall promulgate regulations to implement the following responsibilities within six (6) months of the effective date of this section:
(i) establish criteria for awarding grants, loans, and other financial assistance pursuant to this subsection;
(ii) establish the amount of the recycling incentive payments that can be claimed by businesses and government entities collecting used oil; and
(iii) establish procedures for the authorization of collection centers and standards for their proper management and operation, including provisions for the transfer of collection responsibility under subsection 6.
(6) Requirements for Retailers, On-site Installers, Public Entities, and Marinas.
(a) Retailers selling at least two hundred (200) gallons of automotive oil annually, onsite installers, and marinas shall comply with the requirements for used oil collection centers set forth in subsection 7.
(i) Retailers selling at least two hundred (200) gallons of automotive oil annually and on-site installers may contract their collection responsibility to another used oil collection center within a reasonable distance. The distance shall be established by the Department.
(ii) Marinas may contract their collection responsibility to another marina that is a used oil collection center within a reasonable distance. The distance shall be established by the Department.
(b) Retailers selling less than two hundred (200) gallons of automotive oil annually and public entities are not required to collect used oil from individuals. The retailers and public entities that choose to collect used oil shall comply with the requirements for used oil collection centers in subsection 7.
(c) Retailers selling less than two hundred (200) gallons of automotive oil annually that choose not to collect used oil, as well as those businesses contracting their collection responsibility pursuant to subsection (6)(a)(i) and (6)(a)(ii), shall post signs in prominent locations indicating where used oil can be returned.
(d) Any other entity that collects used oil shall comply with requirements for used oil collection centers.
(7) Used Oil Collection Centers.
(a) Used oil collection centers, except for marinas, shall accept used oil from individuals in quantities not to exceed five (5) gallons, per individual, per day, at no charge.
(b) A used oil collection center that is a marina shall accept used oil, from individuals that use that marina, in quantities not to exceed five (5) gallons, per individual, per day, at no charge.
(c) Used oil collection centers shall:
(i) Comply with standards required by the Department and the Department of Revenue.
(ii) Post signs in prominent locations.
(iii) Maintain records of the amount of used oil collected and recycled.
(iv) Upon request, provide information concerning the collection of used oil to the Department and the Department of Revenue.
(d) All used oil collection centers may, on a quarterly basis, submit claims to the Department of Revenue for recycling incentive payments.
(i) A used oil collection center that is a retailer shall pay each individual five (5) cents per quart upon the return of used oil. The retailer shall provide such a payment regardless of whether the retailer claims recycling incentive payments from the Transaction Account. Nothing in this section prohibits any person from donating used oil to a collection center.
(ii) A used oil collection center that is an on-site installer, marina, or public entity that submits claims for recycling incentive payments shall pay individuals five (5) cents per quart upon the return of used oil. Nothing in this section prohibits any person from donating used oil to a collection center.
(e) Not more than once per year, collection centers may submit claims to the Department for reimbursement of costs, not to exceed five thousand ($5,000) dollars, associated with the disposal of used oil that is contaminated with substances that render it unrecyclable, provided that:
(i) The owner, operator, or lessor of the used oil collection center or an employee of the owner, operator, or lessor did not contaminate the used oil collected with any substance that made the used oil unsuitable for recycling;
(ii) The owner, operator, or lessor of the collection center, or an employee of the owner, operator, or lessor, did not accept used oil that the owner, operator, or lessor knows, or should have known, contains substances that made the oil unsuitable for recycling.
For purposes of this section, the owner, operator, or lessor of a used oil collection center may presume that a quantity of less than five (5) gallons used oil accepted at any one time from any individual does not contain a substance that renders it unrecyclable, provided that the owner or operator acts in good faith, and provided that the used oil collection center is in compliance with requirements for collection centers.
(iii) Total expenditures for the reimbursement of costs may be limited by the Department based on gross revenues of the Fund.
(8) Penalties.
Any person who violates any provision of subsection 7(a), (b), or (d) shall be liable for a fine not to exceed one hundred ($100) dollars per quart of used oil that is the subject of the violation.
Any person who violates any provision of subsection 7(c) or any regulation adopted under authority granted by this section shall be liable for a fine not to exceed two hundred fifty ($250) dollars per violation.
Any penalties or fines imposed on collection centers for violations of subsection 7(a), (b), (c), or (d) shall be deposited into the Fund.
Local boards of health, the Department, and the Department of Revenue may enforce this section, may impose civil administrative penalties or fines, and may report violations to the Office of the Attorney General