Tires, Money, Rules, etc., April 2001

Tires – Keep on Trucking

Late last year, the California legislature made significant changes to the California Tire Fee and used tire management programs.  These issues were dealt in detail in our November 2000 newsletter.  As part of the law enacted in late 2000, the regulating agency, California Integrated Waste Management Board (CIWMB) has developed new forms for dealers to report used tires generated at their facility.

To dispose of used tires, a generator is required to complete a used tire manifest at the time of each pickup.  This requirement has been in effect since 1995.  However, now CIWMB requires that the manifest be summarized and reported quarterly on a special form provided by CIWMB.  A sample copy of the form is enclosed and can be utilized as necessary.  The completed form must be sent to the CIWMB address in Sacramento on a quarterly basis.  CSI emphasizes that there is a serious need to ensure that all tire disposal is undertaken under a manifest.  Dealers who have not been diligent in obtaining a manifest must do so now or face penalties.

The dealers must note that the California Tire Fee must be submitted on an annual basis on a return provided by the Board of Equalization.

Every new car dealership (with a reseller ID) has been registered automatically by the BOE for the California Tire Fee.  If the dealership does not receive a return by the end of January 2002, the state BOE can be contacted at (916) 327-4208 for a copy of the return.

Money – About $1000

We always thought that there was a limit to the taxes the government can collect, but it seems there is no limit on the ways and means the agencies use to collect them.  Case in point.  Recently a dealership received a bill from a local regulating agency under the “Consolidated Unified Program Invoice” for $2240.  The dealership compared the bill to last year’s bill and found that the bill had gone up by 30%.  Realizing that the hazardous material inventory and the hazardous waste stored at the dealership had not increased by 30%, the dealership asked CSI to get to the bottom of it!

Apparently, an inspector from the local fire department had visited the facility and conducted a hazardous materials inventory update to the inventory submitted by the dealership.  The hazardous material inventory, as recorded by the fire department, must include all items above 55 gallons or 200 cu. ft. in volume.  The soap drum, welding gases, gloss dressing etc. were all counted by the inspector along with bulk oil and waste oil at the facility.  Erroneously, the inspector also counted the used oil filters.  To resolve the matter and bring the bill down by about $1000, the dealership dropped the inventory levels of car soap and high gloss dressing below 55 gallons and reduced the welding gases inventory to below 200 cu. ft.  The only items that remain above the 55-gallon threshold were new oil, waste oil and waste coolant.  While this just-in-time strategy may work for one, it may not work for all.  The lesson in this exercise is that the dealership should take a close look at its inventory.  Reducing the high gloss dressing below 55 gallons might well be worth it.

Money – About $2000

The used oil generated at the dealership during the normal course of business can bring $0.16 per gallon if the dealership becomes part of the California Used Oil Certification Program.

If the dealership generates 12,000 gallons a year, the dealership can collect $1920 from the state by becoming a Certified Collection Center under the program.  CSI can assist the dealership in completing the application to become a Center.  As part of becoming a Center, the dealership must do the following:

  • Accept oil from public at no charge and offer $0.16/G to them. The fear that unsightly homeless in pajamas will show up with a gallon of used oil in your drive is unfounded.  No dealership on the program has seen them in the drive with oil.
  • If taking oil from the public contaminates your oil, the state will reimburse you for incremental costs for disposal due to contamination presuming the source of contamination was public oil.
  • You must place an advertisement in your coupon mailer or sales advertisement twice a year advertising that you are a “Used Oil Recycling Center” and accept used oil. The ad is easy to place and believe us, the “tree huggers” love them.
  • Every quarter, the dealership must file a claim stating the gallons of waste oil generated at the facility. The dealership must do so promptly as the state will ding your claim if the claim is filed late.
  • The dealership should not take more than 20 gallons of oil a day from the public and not more than 5 gallons a day from one single person.
  • The dealership must post a sign on the driveway. The sign is provided by the state for free.

There are some minor details to cover, like the state can drop-in to see how the program is working at your dealership (unannounced).  If the dealership is interested in getting on the program, please give CSI a call.  Of note, if the dealership wishes to get “Off” the program it can be done simply by writing a letter to the state.

Federal Ergonomic Rule To Dustbin

The Federal ergonomic rule for the industry was in the making for ten years and it took Congress two days to toss them into the dustbin.  The rules could have impacted 102 million workers at over 6.1 million worksites.

The brawl over ergonomics began soon after President Bush took office.  The house vote to kill the job safety rules, issued in final days of Clinton administration, was 233 to 206 largely along party lines.  The Senate rammed in with an action within a single day.  The repeal legislation went to President Bush where it was eagerly signed.

It was a classic labor management brawl.  AFL-CIO President Sweeney said, “The voice of injured workers were not heard in the halls of Congress.  They were drowned out by predatory demands of corporate greed.”  While the National Coalition on Ergonomics represented by 51 industry groups stated “If OSHA is not checked, no job in America will be unaffected.”

OSHA Log Revisited

As part of the safety program, CSI staff routinely reviews the OSHA Log 200 at the dealership.  However, the log is, often not up to date or complete.  OSHA Log is one of the few things an OSHA inspector will demand on a priority basis and can fine the dealership if the log is incomplete.  In order to assist your human resources department keep on top of the log, here are the Top Fifteen (with no disrespect to David Letterman):

  1. Maintain a separate log for each year. Do not carry one-year log to another even if there were no injuries at your dealership.  If you need a blank log, please call our office.
  2. For column A, use year followed by the number of the incident, i.e., 0101, 0102…etc.
  3. Record injuries within 6 days of the injury being recordable. Mostly this would be within 6 days of the employers’ knowledge of the injury.
  4. If you have a satellite location, such as a bodyshop, with whom you maintain a common log; the log must be updated and sent to the satellite location within 6 days even if the injury occurred at the main location.
  5. For full time employees, only count 5 days/week for lost time/modified duty days the first full shift after the date of injury. For part time employees, only count 2 days/week.
  6. Post OSHA Log February 1 to March 1, for the preceding year at a location where notices to employees are customarily posted. DO NOT post the entire log but only the portions following the dotted line of the final page.
  7. Keep Log 200 on file for 5 years. If you acquired a business, then you must acquire the logs for the past 5 years as well.
  8. If you have more than one page, bring totals forward and sign and date each page.
  9. If you have no recordable injuries or illnesses, post the log by putting “0” in appropriate places. If a block does not have a check mark or a number, it must have a “0”.
  10. Keep occupational injuries separate from occupational illnesses.
  11. All stress claims must go in illness section under “Other”.
  12. Lost time/modified duty days can be put in pencil, updated weekly and in “ink” when the case is closed.
  13. Keep “Employers First Report Of Injury” with the log.
  14. When totaling, add ‘check marks’ and ‘numbers’, both need to be totaled.
  15. List diagnosis in a specific manner, i.e., foreign body rt. eye, lac. left forearm, etc.

Underground Tank Owners, Few or New?

It seems that the state just cannot give up the idea of adding new regulations to underground storage tank no matter how new, or how few.  The new regulations pertain to under-dispenser containment and enhanced leak detection.

If the facility is within 1000 feet of a public drinking well, under-dispenser containment is needed by July 1, 2001 for tanks that are installed after July 1, 1987.  The state will not inform the business of the drinking well situation, but it is up to the dealership to determine that.  We at CSI can determine the distances from a public well for you.  All other facilities, i.e., that are located more than 1000 feet from a drinking well, must have under-dispenser containment by December 31, 2003.

The second rule applies to enhanced leak detection for facilities with single walled tanks and within 1000 feet of a public drinking water well.  The 18-month notice to place enhanced leak detection begins when the state notifies the facility to install an enhanced leak detection system.

Lastly, the rule on secondary containment testing.  All secondary containment systems installed prior to January 1, 2001 must have periodic secondary containment testing every 36 months.  The initial test must be performed by January 1, 2003.  All secondary containment systems installed after January 1, 2001 must be tested at installation, 6 months after installation, and every 36 months after.

(Ref:  CCR§23, Chapter 16 and Senate Bill 989(Chapter 812 of 1999)).

Requirements for Automotive Air Conditioning

California Bureau of Automotive Repair (BAR) has adopted regulations requiring air conditioning repair shops to purchase certain equipment on a mandatory basis.

This rule applies to all repair dealers that are performing service of repairs to motor vehicles air conditioning system, which involves evacuation, full or partial recharge of the air conditioning system.  The dealerships are required to have all repair, measuring, testing and refrigerant recovery equipment and current reference manuals to service or repair the system.  The equipment includes items such as refrigerant identification equipment that meets or exceeds current Society of Automotive Engineers (S.A.E.) standard J1771.  The dealership must have refrigerant leak detection equipment and recovery equipment that meets or exceeds current standards.  Also the dealership is required to have low and high pressure guages for the purposes of measuring pressure in a mobile air conditioning system and an air conditioning system vacuum pump which when connected to a sealed automotive system is capable of reducing the pressure to 29.5 Hg.  Also, required is a thermometer for testing air conditioning equipment.

To add on top of all this, the automotive repair dealership must have an identifier to check the refrigerant for contamination.  While the dealership can purchase all this equipment from a manufacturer or supplier of technical equipment, it is important that the dealership realize that the contaminated freon can not be purged into the atmosphere or disposed into the dumpster.  The dealership must undertake proper disposal of the contaminated freon.  Also, the dealership should be careful not to let its equipment or tools get contaminated by the contaminated freon.  CSI is informed that there are haulers in the LA basin that can collect reasonable quantities of contaminated freon for a fee of up to $5/lb.

BAR rules, 3366 and 3351.6 are very specific and should be followed by dealership staff for every service of repair involving refrigeration system.  Incomplete documentation on the Repair Orders can bring significant penalties from BAR.

Download:  April 2001 Newsletter

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