Senate BillNo. 916


Introduced by Senator Correa

(Principal coauthor: Senator Block)

(Coauthor: Senator Galgiani)

January 27, 2014


An act to add Section 12405 to, and to add Article 7.7 (commencing with Section 10409.1) to Chapter 2 of Part 2 of Division 2 of, the Public Contract Code, and to add Chapter 5.8 (commencing with Section 42359) to Part 3 of Division 30 of the Public Resources Code, relating to biosynthetic lubricants.

LEGISLATIVE COUNSEL’S DIGEST

SB 916, as introduced, Correa. Biosynthetic lubricants: procurement: sale.

(1) Existing law requires state agencies and contractors with state agencies to purchase lubricating oil, as defined, and industrial oil, as defined, containing the greatest percentage of recycled oil, unless a specified certification is made. Existing law also requires local agencies to purchase lubricating oil and industrial oil that contains recycled oil if the product meets specified conditions.

This bill would require a state agency and any person or entity contracting with, or receiving a grant from, a state agency that purchases lubricating oil, on and after January 1, 2016, to purchase only biosynthetic lubricant that meets or exceeds minimal standards for biodegradability, as defined. The bill would require the Department of General Services, by January 31, 2016, to provide language for a state agency to include in a contract or grant implementing these provisions. The bill would authorize a state agency, city, county, city and county, or district to purchase biosynthetic lubricant that meets or exceeds minimal standards for biodegradability, as specified.

(2) The California Oil Recycling Enhancement Act, administered by the Department of Resources Recycling and Recovery, imposes a charge upon the sale of lubricating oil, for deposit in the California Used Oil Recycling Fund, and continuously appropriates money from the fund to the department to provide, among other things, grants and contracts to local governments, nonprofit entities, and private entities and recycling incentives to every industrial generator, curbside collection program, and certified used oil collection center for collected or generated used lubricating oil. Existing law prohibits the sale of engine oil and lubricating oil unless the product conforms to certain specifications.

This bill would prohibit on and after January 1, 2017, the sale of lubricating oil in the state unless the lubricating oil meets certain requirements, including meeting or exceeding the minimal standards for biodegradability, as specified. The bill would authorize, on and after January 1, 2016, the Director of Resources Recycling and Recovery, in consultation with an advisory committee established by the bill as specified, to grant a one-year extension from these requirements if the director finds that the lubricating oil is not commercially available. The bill would require the department to inform local agencies and individuals of the benefits of biosynthetic lubricating oils.

(3) Existing law requires the Department of General Services, in consultation with the California Environmental Protection Agency, members of the public, industry, and public health and environmental organizations, to provide state agencies with information and assistance regarding environmentally preferable purchasing.

This bill would require the Department of General Services to maintain and update, on the department’s Internet Web site, a list that contains the names of lubricating oil products that meet or exceed the minimal standards of biodegradability, as specified. The bill would require the department to transmit a copy of this list to the Office of the President of the University of California to facilitate the University of California’s procurement efforts.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

(a) The Legislature finds and declares all of the
2following:

P3    1(1) The United States Environmental Protection Agency (EPA)
2now considers pollution from all diffuse sources, including urban
3stormwater pollution, to be the most important source of
4contamination in our nation’s waters.

5(2) The EPA ranks urban runoff and storm sewer discharges as
6the second most prevalent source of water quality impairment in
7our nation’s estuaries and the fourth most prevalent source of water
8quality impairment in our lakes.

9(3) Although the effects of runoff on specific waters vary and
10are often not fully assessed, pollutants carried by runoff are known
11to have potentially harmful effects on drinking water supplies,
12recreation, fisheries, and wildlife.

13(4) Among the pollutants in runoff are petroleum oil and oil
14byproducts, which have been shown to contain harmful
15constituents, including metals and polycyclic aromatic
16hydrocarbons.

17(5) Most of California’s population lives in urban and coastal
18areas where the water resources are highly vulnerable to, and are
19often severely degraded by, urban runoff.

20(6) Polluted storm water poses risks to public health and the
21ecology of local waterways.

22(7) A significant source of storm water pollution will be reduced
23with the introduction of new technologies, such as biosynthetic
24lubricants, that will improve water and air quality in the state and
25reduce greenhouse gas (GHG) emissions.

26(8) Biosynthetic lubricants have shown GHG reductions of as
27much as 88 percent, as compared to similar petroleum-based
28synthetic lubricating oils.

29(9) Used motor oil is the largest volume of hazardous waste
30generated in California, with approximately 150 million gallons
31of motor oil purchased every year, generating over 90 million
32gallons of used oil. However, only about 76 million gallons are
33actually collected, and only about 10 to 12 million gallons are
34actually rerefined into motor oil. Most of the used oil is shipped
35out-of-state and burned as fuel, producing GHG emissions.

36(10) An estimated 14 to 16 million gallons of motor oil are
37illegally dumped, ending up in rivers, streams, and lakes, degrading
38drinking water supplies, and adding to storm water and coastal
39pollution. The remaining gallons are lost in use, either burned in
40the combustion chamber of an engine, or dripped onto streets and
P4    1parking lots, creating a “silent oil spill” of approximately 60 million
2gallons annually.

3(11) Technologies now exists to supply a high-performance,
4biobased, biodegradable blend of lubricating oil for use in gasoline
5and diesel engines in passenger cars, light-duty trucks, and vans.
6These biosynthetic lubricating oils have performance qualities
7similar to or superior than other synthetic lubricants, with added
8environmental and public health benefits.

9(12) Independent testing shows not only that biosynthetic oils
10are among the highest rated products for protecting engines and
11machinery, thereby likely improving fuel efficiency, but they are
12also biobased, biodegradable, and do not bioaccumulate in marine
13organisms.

14(13) The United States Department of Agriculture’s BioPreferred
15Program, which imposes procurement preferences on federal
16agencies and contractors for the purchase of biobased products,
17recently added a preference for motor oil, for certain diesel and
18gasoline engines, that have at least 25 percent biobased content.

19(14) Biosynthetic lubricating oils degrade more rapidly than
20petroleum-based lubricants and are less toxic, thus greatly reducing
21environmental and public health risks. Thus, these new
22technologies will not only save the State of California and
23consumers money, but will improve air and water quality and
24reduce GHG emissions.

25(15) Used motor oil that is recycled and rerefined into motor
26oil can benefit from this new technology by blending the recycled
27oil with high-performance, biobased, biodegradable products that
28have greater environmental and public health benefits.

29(16) By increasing the content of biobased products in
30lubricating oils, California taxpayers will benefit from lower costs
31of complying with the federal Clean Water Act (33 U.S.C. Sec.
321251 et seq.).

33(b) The Legislature further finds and declares all of the
34following:

35(1) This act would implement a policy of the state to require
36state agencies, when servicing fleet vehicles, to request the use of
37biosynthetic lubricating oil, when available.

38(2) The use of biosynthetic lubricating oil, as provided by this
39act, will further the state’s policy of reducing the state fleet’s
40petroleum consumption and protecting the environment.

P5    1(3) The use of biosynthetic lubricating oil, as provided by this
2act, will help reduce overall petroleum consumption and aid the
3state in achieving its goals of reducing GHG emissions.

4(4) Vehicles using synthetic and biosynthetic lubricating oils
5require fewer oil changes, extending oil change intervals and thus
6reducing the quantity of lubricating oil used over the life of the
7vehicle.

8(5) While the cost of synthetic and biosynthetic lubricating oil
9maybe higher than conventional motor oil, when balanced against
10the longer oil change interval, using synthetic and biosynthetic
11oils becomes less expensive in the long term.

12(6) The benefits of longer intervals between oil changes, the
13reduced consumption of lubricating oil over the life of the vehicle,
14improved fuel efficiency, the reduction in GHG emissions, and
15the benefits to public health and the environment make biosynthetic
16lubricating oil a cost-effective alternative to petroleum-based
17lubricating oil.

18

SEC. 2.  

Article 7.7 (commencing with Section 10409.1) is
19added to Chapter 2 of Part 2 of Division 2 of the Public Contract
20Code
, to read:

21 

22Article 7.7.  Biosynthetic Lubricant Procurement
23

 

24

10409.1.  

The following definitions govern the construction of
25this article:

26(a) “ASTM” means the American Society for Testing and
27Materials.

28(b) “Biobased content” means the amount of biobased carbon
29within a biosynthetic lubricant, expressed as a percent of total
30weight (mass) of the organic carbon within the product, as
31determined by using the ASTM D6866-12 (standard test methods
32for determining the biobased content of solid, liquid, and gaseous
33samples using radiocarbon analysis), as that test method read on
34January 1, 2013.

35(c) “Biobased product” means a product that is any of the
36following:

37(1) Composed, in whole or in significant part, of biological
38products, including renewable agricultural materials, algae, and
39forestry materials.

P6    1(2) An intermediate ingredient or feedstock material or
2compound made in whole or in significant part from biological
3products, including renewable agricultural materials, including
4plant, animal, and marine materials, including algae, or forestry
5materials, that are subsequently used to make a more complex
6compound or product.

7(d) (1) “Biodegradable” means a substance that meets one of
8the following requirements, under the conditions specified in
9paragraph (2):

10(A) The substance can demonstrate the removal of at least 70
11percent of dissolved organic carbon.

12(B) The substance produces at least 60 percent theoretical carbon
13dioxide.

14(C) The substance consumes at least 60 percent of the theoretical
15oxygen demand.

16(2) The substance meets the requirements specified in paragraph
17(1) within 28 days of use, as determined under one of the following
18test methods, as those test methods read on January 1, 2013:

19(A) OECD Test No. 301 A-F.

20(B) OECD Test No. 306.

21(C) OECD Test No. 310.

22(D) ASTM D5862-2006 standard test method.

23(E) ASTM D7373-2007 standard test method

24(e) “Biosynthetic lubricant” means a lubricating oil that contains
25a biobased product.

26(f) “Lubricating oil” means oil intended for use in an internal
27combustion gasoline or diesel engine used in passenger cars,
28light-duty trucks, or vans.

29 (g) “Minimal standards for biodegradability” means that the
30amount of biobased content within the lubricating oil is not less
31than 25 percent and that the biobased content is biodegradable.

32 (h) “OECD” means the Organisation for Economic Co-operation
33and Development.

34(i) “Procuring agency” means any state agency or any person
35or entity contracting with, or receiving a grant from, that agency.

36

10409.2.  

(a) (1) On and after January 1, 2016, every procuring
37agency that purchases lubricating oil shall only purchase
38biosynthetic lubricant that meets or exceeds minimal standards for
39biodegradability.

P7    1(2) Before January 31, 2016, the Department of General Services
2shall provide language for a state agency to include in a contract
3or grant that implements the provisions of this subdivision.

4(b) On and after January 1, 2017, every procuring agency shall
5purchase lubricating oil from a seller that is in compliance with
6Section 42359.1 of the Public Resources Code.

7

10409.3.  

Notwithstanding any other law, when procuring
8lubricating oil for gasoline or diesel engines used in passenger
9cars, light trucks, and vans, a state agency, city, county, city and
10county, and district, including a school district and a community
11college district, may purchase biosynthetic lubricants that have a
12biobased content that meets or exceeds minimal standards for
13biodegradability.

14

SEC. 3.  

Section 12405 is added to the Public Contract Code,
15to read:

16

12405.  

(a) The Department of General Services shall maintain
17and update, on the department’s “Buying Green” Internet Web
18site, a list that contains the names of lubricating oil products that
19meet or exceed the minimal standards for biodegradability, as
20defined in Section 10409.1.

21(b) The Department of General Services shall transmit a copy
22of the list described in subdivision (a) to the Office of the President
23of the University of California to facilitate the University of
24California’s procurement efforts.

25

SEC. 4.  

Chapter 5.8 (commencing with Section 42359) is added
26to Part 3 of Division 30 of the Public Resources Code, to read:

27 

28Chapter  5.8. Biosynthetic Lubricant
29

 

30

42359.  

The following definitions govern the construction of
31this chapter:

32(a) “ASTM” means the American Society for Testing and
33Materials.

34(b) “Biobased content” means the amount of biobased carbon
35within a biosynthetic lubricant, expressed as a percent of total
36weight (mass) of the organic carbon within the product, as
37determined by using the ASTM D6866-12 (standard test methods
38for determining the biobased content of solid, liquid, and gaseous
39samples using radiocarbon analysis), as that test method read on
40January 1, 2013.

P8    1(c) “Biobased product” means a product that is any of the
2following:

3(1) Composed, in whole or in significant part, of biological
4products, including renewable agricultural materials, algae, and
5forestry materials.

6(2) An intermediate ingredient or feedstock material or
7compound made in whole or in significant part from biological
8products, including renewable agricultural materials, including
9plant, animal, and marine materials, including algae, or forestry
10materials, that are subsequently used to make a more complex
11compound or product.

12(d) (1) “Biodegradable” means a substance that meets one of
13the following requirements, under the conditions specified in
14paragraph (2):

15(A) The substance can demonstrate the removal of at least 70
16percent of dissolved organic carbon.

17(B) The substance produces at least 60 percent theoretical carbon
18dioxide.

19(C) The substance consumes at least 60 percent of the theoretical
20oxygen demand.

21(2) The substance meets the requirements specified in paragraph
22(1) within 28 days of use, as determined under one of the following
23test methods, as those test methods read on January 1, 2013:

24(A) OECD Test No. 301 A-F.

25(B) OECD Test No. 306.

26(C) OECD Test No. 310.

27(D) ASTM D5862-2006 standard test method.

28(E) ASTM D7373-2007 standard test method.

29(e) “Biosynthetic lubricant” means a lubricating oil that contains
30a biobased product.

31(f) “Lubricating oil” means oil intended for use in an internal
32combustion gasoline or diesel engine used in passenger cars,
33light-duty trucks, or vans.

34(g) “Minimal standards for biodegradability” means that the
35amount of biobased content within the lubricating oil is not less
36than 25 percent and that the biobased content is biodegradable.

37(h) “OECD” means the Organisation for Economic Co-operation
38and Development.

39

42359.1.  

Notwithstanding Article 7 (commencing with Section
4013460) of Chapter 14 of Division 5 of the Business and Professions
P9    1Code, on and after January 1, 2017, a person shall not sell
2lubricating oil in the state unless the lubricating oil does both of
3the following:

4(a) Meets or exceeds minimal standards for biodegradability,
5as defined in Section 42359.

6(b) Is at the time of the sale certified for use by the American
7Petroleum Institute’s Engine Oil Licensing Certification System.

8

42359.2.  

On and after January 1, 2016, the director, in
9consultation with the advisory committee established pursuant to
10Section 42359.3, may grant a one-year delay of the requirements
11imposed pursuant to Section 42359.1 if the director finds that the
12lubricating oil is not commercially available in the state. In
13deciding whether to grant or deny an extension, the director shall
14consider, but shall not be bound by, the recommendation of the
15advisory committee.

16

42359.3.  

The director shall establish an advisory committee
17of nine members appointed by the director. The advisory
18committee, based upon information submitted to the committee
19by lubricating oil manufacturers, wholesalers, and retailers, shall
20consider and recommend approval or denial of a delay pursuant
21to Section 42359.2. The advisory committee shall include
22representation from the petroleum industry, biosynthetic fuel and
23oil industry, automobile manufacturers and servicing industry,
24local government storm water management agencies, and public
25interest groups.

26

42359.4.  

The department, through the use of social media, shall
27inform local agencies and individuals of the benefits of biosynthetic
28lubricating oils and encourage the use of biosynthetic lubricants
29for their fleets or vehicles.



O

    99