BILL ANALYSIS                                                                                                                                                                                                    







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          |Hearing Date:June 10, 2002     |Bill No:AB                |
          |                               |2474                      |
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                    SENATE COMMITTEE ON BUSINESS AND PROFESSIONS
                             Senator Liz Figueroa, Chair

                       Bill No:        AB 2474Author:Simitian
                        As Amended:May 14, 2002  Fiscal:  Yes

          
          SUBJECT:  Automotive products.
          
          SUMMARY:  Requires engine coolant or antifreeze being sold  
          in this state, containing more than 10% ethylene glycol  
          (substance used as antifreeze), to have Denatonium Benzoate  
          (a bittering agent), or another equivalent bittering agent,  
          added to the mixture to render it unpalatable for humans or  
          animals. 

          Existing law:

          1)Requires the Department of Food and Agriculture to  
            establish specifications for engine coolants or  
            antifreeze that promote public safety in the operation of  
            motor vehicles.

          2)Specifies that "automotive product" means engine coolant  
            or antifreeze, prediluted engine coolant or prediluted  
            antifreeze.

          3)Specifies that "engine coolant" means any substance,  
            regardless of its origin, intended to be used in a  
            cooling system of a combustion engine to provide  
            protection against freezing, overheating, and corrosion  
            of the cooling system.

          This bill:

          1)Requires any engine coolant or antifreeze manufactured  
            after January 1, 2003, and sold in this state after July  
            1, 2003, that contains more than 10% ethylene glycol,  
            shall include Denatonium Benzoate at a minimum of 30  






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            parts per million as a bittering agent within the product  
            so as to render it unpalatable.

          2)Allows for another aversive agent to be used if it meets  
            or exceeds the degree of aversion of Denatonium Benzoate.

          3)Provides that a manufacturer or packager of a product  
            requiring the inclusion of a bittering agent shall  
            certify in writing, to the Division of Measurement  
            Standards of the Department of Food and Agriculture, the  
            trade name, scientific name, and active ingredients of  
            the employed bittering agent, no later than 30 days after  
            the bittering agent has been added.


          4)Specifies that those who manufacture, distribute or sell  
            this automotive product would not be liable for the  
            injury, death or property damage that could result from  
            the inclusion of the bittering agent, with specified  
            limitations. 

          FISCAL EFFECT:  According to the May 8, 2002, analysis of  
          the Assembly Appropriations Committee, there are minor  
          absorbable costs to the Department of Food and Agriculture  
          to process the required certifications from manufacturers  
          or packagers of the automotive product.

          COMMENTS:
          
          1.Purpose.  According to the author, ethylene glycol is  
            extremely toxic and has a natural sweet taste.  The sweet  
            taste has been the cause of many accidental poisonings of  
            children and animals.  Requiring Denatonium Benzoate, or  
            an equivalent bittering agent, to be added to any product  
            using more than 10% of ethylene glycol, will prevent such  
            a product from being ingested by humans and animals in  
            the future.  As indicated by the author, this bill is  
            similar to a 10-year old Oregon law that has successfully  
            discouraged children and pets from drinking the  
            softdrink-colored antifreeze at a cost of only $0.02 to  
            $0.03 per gallon.

          2.Background.  The California Poison Control Services  
            reported that in 2000, there were 66 accidental poisons  
            resulting from the ingestion of antifreeze by children  
            age 12 and under.  As indicated by the author, it is  






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            estimated that 90,000 animals die each year from  
            ingesting ethylene glycol-based antifreeze.  Thirteen  
            California Pet Emergency Clinics were recently surveyed  
            and reported 136 cases of ethylene glycol poisoning - all  
            but 29 died.  Two teaspoons of antifreeze can kill a  
            child, with permanent liver and kidney problems resulting  
            from the ingestion of only one teaspoon.  Half a cup of  
            antifreeze would kill any human being. 

          Aversive agents are currently used in a number of household  
            products, including pesticides, to deter ingestion.   
            Denatonium Benzoate is a generic chemical considered to  
            be the most bitter substance known and studies have shown  
            it to be an effective substance to prevent or mitigate  
            large volume ingestion of products.  This chemical is  
            currently required to be added to ethylene glycol based  
            antifreeze in England, Japan and Australia.  

          According to the International Engineering Society for  
            Advancing Mobility Land Sea Air and Space (SAE),  
            Denatonium Benzoate posses no serious problems to the  
            environment or ground water.  No serious problems have  
            been identified or reported in the use of this product as  
            a bittering agent to ethylene glycol.  Additionally, the  
            SAE asserts that Denatonium Benzoate is not likely to  
            enter ground water as a result of accidental spilling or  
            disposal on soil.  The SAE reports that the bittering  
            agent bonds with the soil preventing it from migrating  
            and is broken down by various soil organisms.  The SAE  
            also reports that the specified bittering agent degrades  
            photochemically in water and also is destroyed by  
            chlorine used in water treatment plants.  The Food and  
            Drug Administration and the Environmental Protection  
            Agency also recognize Denatonium Benzoate for its low  
            toxicity to mammals, birds and fish and its ability to  
            biodegrade. 

          3.Previous Legislation.  AB 1550 (O'Connell), vetoed by the  
            Governor in 1993, was substantially similar to this bill.  
             In the veto message, Governor Wilson said that the bill  
            failed to demonstrate its overall effectiveness, and it  
            was premature for the State of California to require  
            manufacturers to add bittering agents to products before  
            these substances are fully evaluated and determined to be  
            effective.







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          4.Arguments in Support.  The  California Veterinary Medical  
            Association  has taken a support position on the bill and  
            indicates that their veterinarians see numerous cases of  
            accidental poisonings each year due to antifreeze  
            consumption, which they believe could be potentially  
            alleviated with the introduction of a bittering agent  
            into the product.  Numerous other supporters of the bill  
            believe that this bill is an important step in attempting  
            to stave off the unnecessary incidents of accidental  
            poisonings and untimely deaths of both children and  
            animals by merely rendering the ethylene glycol  
            "unpalatable." 

          5.Arguments in Opposition.  Opponents, including  General  
            Motors Corporation  and the  Automotive Aftermarket  
            Industry Association  , maintain that there is insufficient  
            conclusive evidence that Denatonium Benzoate is not  
            harmful to the environment, and that it is not clear that  
            this bittering agent will deter children from ingesting  
            ethylene glycol antifreeze.  They claim that there are  
            studies and reports that have found that this chemical is  
            not biodegradable and is likely to remain in the  
            wastewater and could leach through the soil.   These  
            studies and reports have not been cited nor provided to  
            this Committee for verification.)   

          6.Oppose Unless Amended.  There are two large recycle  
            companies that have requested that the bill be amended to  
            protect them from liability for release of Denatonium  
            Benzoate or other aversive agents into the environment.   
            The amendments proposed appear to exempt them from  
            liability for any past and future damage that may occur  
            to the environment for the inclusion of the aversive  
            agent in antifreeze, even if improperly handled and  
            released by the recycler.  The author indicates that he  
            is working with the opposition to possibly address their  
            concerns.   However since this bill is double-referred to  
            the Senate Judiciary Committee, the liability issue can  
            be effectively addressed in that Committee.
           
          The  Alliance of Automobile Manufacturers  is opposed unless  
            the bill is amended to limit its application to coolant  
            or antifreeze that is produced and sold for household use  
            only, and to clarify the liability language so that they  
            are not held liable for any damage to the environment  
            that may result from the use of Denatonium Benzoate. 






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          The  California Alliance for Consumer Protection  is opposed  
            and suggests that the bill be amended to make all aspects  
            of creating and producing the bittering agent, as well as  
            putting it into the solution an option, with  
            participation being rewarded with an accelerated tax  
            credit on the equipment and supplies needed to comply  
            with this act. 

          7.Request for Amendment Deleting Immunity from Liability  
            Provision.   The Consumer Attorneys of California  support  
            the inclusion of  Denatonium Benzoate as a bittering  
            agent in antifreeze and coolants but do not believe the  
            immunity provision in the bill is necessary.  They argue  
            that manufacturers should comply with the bittering agent  
            requirement because it can save lives and that the  
            probability of being sued for compliance is really  
            minimal (they are aware of no litigation on this issue in  
            other states).  They also argue that the manufacturers'  
            "fear of liability" is bad precedent and unneeded and  
            that they do not deserve special protection in this  
            instance. 

          NOTE:  Double-referral to Senate Judiciary Committee
          
          SUPPORT AND OPPOSITION:
          
          Support:   Doris Day Animal League (Co-Sponsor)
          Lauren Ward of Cupertino, California (Co-Sponsor) 
          California Integrated Waste Management Board
          California Medical Association
          California Veterinary Medical Association
          Physicians Committee for Responsible Medicine
          Sierra Club California
          Office of the District Attorney, County of Ventura
          The Humane Society of the United States
          California Federation for Animal Legislation
          The National Humane Education Society
          Animal Legal Defense Fund
          Action for Animals Network
          Contra Costa Humane Society
          The Fund for Animals
          People for the Ethical Treatment of Animals
          Animal Legislative Action Network






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          Association of Veterinarians for Animal Rights
          Action for Animals 

           Opposition:     General Motors Corporation
           Alliance of Automobile Manufacturers
           Automotive Aftermarket Industry Association
           ROMIC Environmental Technologies Corporation
           DeMenno/Kerdoon
           Consumer Attorneys of California
           The California Alliance for Consumer Protection

          Consultant:Bill Gage