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Committee backs doubling used-oil recycling fee to shore up collection fund

House Natural Resources, Agriculture and Environment Committee · January 23, 2026
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Summary

The committee adopted a substitute and passed HB 37 out after lawmakers heard that the used-oil recycling fund has been underfunded for decades; the bill raises the per-quart fee from $0.04 to $0.08 and authorizes the division to set fees in the future.

Representative Thomas Chu introduced the first-substitute to HB 37 after work by the interim Natural Resources Committee. Ted Sonnenburg, the newly appointed director of the Division of Waste Management and Radiation Control, told the committee the used-oil fund has relied on subsidies in recent fiscal years and that a statutory recycling fee of $0.04 per quart has not been changed since 1973. The bill would raise the fee to $0.08 per quart and give the division authority to adjust future fees if necessary.

Sonnenburg outlined how the funds pay collection‑center incentives (currently $0.25 per gallon), support local health-department inspections (every six months), public education and grants to collection centers. He and the sponsor said the change is intended to maintain collection infrastructure and prevent costly environmental cleanup from improper disposal.

The committee adopted substitute #1 and then voted to pass HB 37 (first substitute) with a favorable recommendation. No recorded public opposition appeared during committee testimony. The sponsor waived further remarks and the committee approved the measure to move forward.