1. 1 Goals of the California Oil Recycling Enhancement (CORE) Act Implement Recycling Incentive Program Implement Recycling Incentive Program Establish a network of Collection Centers for Used Oil Establish a network of Collection Centers for Used Oil Implement Grant Programs (5) Implement Grant Programs (5) Promote Statewide Education and Outreach activities Promote Statewide Education and Outreach activities

2. 2 Revenue & Total Resources Available resources for expenditure from the Used Oil fund are generated from: 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 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

3. 3 The Statutory “Formula” Statute establishes program and directs funding: Statute establishes program and directs funding:  Funding order  Amount available Formula trends to a point where annual expenditures equal annual revenue Formula trends to a point where annual expenditures equal annual revenue Attachment 3 based on 5 categories of expenditure: Attachment 3 based on 5 categories of expenditure:  Category 1-3:Primary Expenditures  Category 4-5:Competitive grant and Education & Outreach

4. 4 UOP Fund Allocation Priorities According to Statute Category 1 $.16/gal recycling incentive $.16/gal recycling incentive DTSC investigation DTSC investigation Program/Board Administration Program/Board Administration Reserve Reserve Category 2 Block Grants Block Grants Category 3 Budget Act Farm and Ranch Farm and Ranch DTSC enforcement DTSC enforcement Contaminated Oil Payments Contaminated Oil Payments Program/Board Administration Program/Board Administration OEHHA direct OEHHA direct CalEPA Direct CalEPA Direct Category 4 Competitive Grants (60% annually-two year cycle) Non-profit Non-profit Research, Testing and Demonstration Research, Testing and Demonstration Category 5 Statewide education and outreach

5. 5 Factors Impacting Revenue and Expenditure Revenue: Decrease in interest rate and earnings Decrease in interest rate and earnings Projected flat oil revenue Projected flat oil revenue Refund and exemption claims to manufacturers Refund and exemption claims to manufacturersExpenditure: Increase in Administrative cost Increase in Administrative cost Direct appropriations to other agencies Direct appropriations to other agencies

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