Pub. 5 2016-2017 Issue 3

28 San Diego Dealer DEALER ALERT OLD RULES RELAXED & NEW RULES ADDED (CALIFORNIA ONLY) By Sam Celly, BChE MChE, JD CSPs LLP TO MIX OR NOT TO MIX – OLD RULE RELAXED SEPARATIONOF PAPER&METAL: In 2016, California EPA started to enforce hazardous waste regulations regarding used oil filters. While crushedmetal oil filters could be recycled as scrapmetal, paper cartridge filters and metal oil filters (with free flowing used oil upon puncture) were to be disposed of as hazardous waste. Dealers started to separate the two types of oil filters and dispose of them as two different streams. HAULERS TO THE RESCUE: The big hazardous waste haulers for the automotive industry have stated that they will collect mixed paper and metal filters, albeit for a higher fee (see table below). Also, mixed oil filters will be collected under a CA Uniform Hazardous Waste Manifest. DISPOSAL PAPERWORK, COSTS & FEES: Paperwork involves time, and other costs must be kept in mind if you switch over from the scrap metal to the mixed filter disposal regime. They are as follows: • Manifest: Dealers are required to complete a California Uniform Hazardous Waste Manifest. http://www.dtsc.ca.gov/IDManifest/ upload/HWM_Manifest_SupCAManInstr.pdf • Costs & Logistical Issues: * These costs will vary depending upon location of dealer, volume of waste generated, and buying power of dealership. ** See https://www.dtsc.ca.gov/PollutionPrevention/SB14/SB14_Intro.cfm. SUMMARY: Separation of paper and metal oil filters adds to labor costs, however it can be worthwhile as scrap metal has lower disposal costs and fewer regulatory requirements. Varying designs of oil filters among auto manufacturers also impact disposal costs and strategy. CA TOW TRUCK RECORDKEEPING REGULATIONS – OLD RULE RELAXED TOW TRUCK REGULATIONS: In 2016, Assembly Bill 1222 was enacted to protect dealers from bandit tow truck operators. The regu- lations required auto dealers to keep records of towed vehicles (make, model, and license plateORVINnumber), the towcompany’s identification, and the tow truck driver’s name and the driver’s license number. Dealers fumed at this regulation, especially when tow truck drivers delivered vehicles after hours, which made obtaining information from the company a headache. In certain cases, the tow truck drivers simply refused to provide their license information. AB 2167 COMES TOTHERESCUE: The new law, effective January 1, 2017, eases the requirements for the dealership to obtain tow truck company and driver information. SUMMARY: The dealership should train staff to obtain information from tow truck operators under the new regulation as listed above. PUNCTURED OR CRUSHED METAL-SCRAP (No paper or trans filters allowed) PAPERORMIXED (PAPER&METAL) FILTERS Disposal Cost of $50-70/drum* Can Be Stored on Site for 1 year Normal Bill of Lading Required No Manifest Fee No Generator Fee No SB14 Report Obligations Shop staff must be trained to classify filters Disposal Cost of $100-150/drum* Must Be Disposed of in 90 days Haz. Waste Manifest Required (6 pages) Manifest Fee of $7.50 (if non-recycled) Haz. Waste Gen. Fee >5 tons/year SB14 reports required for facilities that generate haz. waste in excess of 12 tons/year** OLD LAW (AB 1222) NEW LAW (AB 2167) ID Requirements: Obtain tow truck driver’s name and driver’s license number. After-Hours Delivery By Tow Truck Company: After-hours delivery required the dealer to contact the tow truck company. If no tow truck ID was left in the vehicle, it was a bit of a wild goose chase. IDRequirements: Other forms of ID, such as government issued ID, AAA Motor Club ID, or Police Garage ID are acceptable. After-Hours Delivery ByTowTruck Company: After-hours is defined as the period when the service depart- ment is closed. The new law allows the dealer to document the date and time the vehicle was first observed on premises and that reasonable effort was made to reach the tow truck company.