Amended in Senate March 19, 2014

Senate Bill No. 916

Introduced by Senator Correa

(Principal coauthor: Senator Block)

(Coauthor: Senator Galgiani)

January 27, 2014

An act to begin insert amend Section 25250.1 of the Health and Safety Code, to end insert 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 begin delete biosynthetic lubricants end delete begin insert lubricating oil end insert .

LEGISLATIVE COUNSEL’S DIGEST

SB 916, as amended, Correa. begin delete Biosynthetic lubricants: end delete begin insert Lubricating oil: biosynthetic lubricants: end insert procurement: sale.

begin insert

(1) Existing law authorizes the Department of Toxic Substances Control to regulate the disposal of hazardous waste, including used oil, and, for those purposes, defines “used oil” to mean oil that has been refined from crude oil, or any synthetic oil, that has been used, and, as a result of use or as a consequence of extended storage, or spillage, has been contaminated with physical or chemical impurities.

end insert begin insert

This bill would specify that synthetic oil includes oil composed of biobased feedstock for these purposes.

end insert begin delete

(1)

end delete

begin insert (2) end insert  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 begin insert , on and after January 1, 2016, end insert would require a state begin delete agency end delete begin insert agency, end insert and any person or entity contracting begin delete with, or receiving a grant from, end delete begin insert with end insert a state agency begin delete that purchases lubricating oil, on and after January 1, 2016, end delete begin insert for the supply of lubricating oil, end insert to purchase only biosynthetic lubricant that meets begin delete or exceeds end delete begin insert certain requirements, including end insert minimal standards for begin delete biodegradability, as defined end delete begin insert biodegradability end insert . The bill would require the Department of General Services, by begin delete January 31, 2016 end delete begin insert July 31, 2015 end insert , 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 begin delete or exceeds minimal standards for biodegradability, as specified end delete begin insert the specified requirements end insert .

begin delete

(2)

end delete

begin insert (3) end insert  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 begin delete specified. The end delete begin insert specified, and unless the producer of the biosynthetic lubricating oil files with the department a document by which the producer verifies that the lubricating oil meets the specified requirements. The bill would require the department to provide the producer with a unique lubricating oil biodegradability compliance number for each product self-verified by the producer. end insert

begin insert The end insert bill would authorize, on and after begin delete January 1, 2016, end delete begin insert July 1, 2015, end insert the Director of Resources Recycling and Recovery, in consultation with an advisory committee established by the bill as specified, to grant begin delete a one-year extension from end delete begin insert extensions, in increments of one year, of end insert these requirements begin insert and the state agency biosynthetic lubricant purchasing requirements described above end insert if the director finds that begin delete the end delete begin insert biosynthetic end insert lubricating oil is not commercially available. The bill would begin insert authorize a procuring agency or person to sell, no later than 12 months after January 1, 2017, or 12 months after the end of the last of all extensions granted as discussed above, lubricating oil that does not meet the specified requirements if the procuring agency or person legally possessed the lubricating oil before the latter of those dates. The bill would require the procuring agency or person to maintain records to verify that the lubricating oil was in the person’s or agency’s possession before the latter date. The bill would end insert require the department to inform local agencies and individuals of the benefits of biosynthetic lubricating oils.

begin delete

(3)

end delete

begin insert (4) end insert  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 begin insert biosynthetic end insert lubricating oil products that meet begin delete or exceed the minimal standards of biodegradability, as specified end delete begin insert the specified lubricating oil requirements end insert . 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:

SECTION 1.  

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

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

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

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

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

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

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

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

(8)  Biosynthetic lubricants have shown begin insert significant end insert GHG
reductions begin delete of as much as 88 percent, end delete as compared to similar
petroleum-based synthetic lubricating oils.

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

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

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

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

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

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

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

(16)  By increasing the content of biobased products in
lubricating oils, California taxpayers will benefit from lower costs
of complying with the federal Clean Water Act (33 U.S.C. Sec.
1251 et seq.).

begin insert

(17) Biobased feedstocks, which are used in the production of
food, and biosynthetic lubricating oils are composed of some of
the same biobased materials. Although motor lubricating oils
represent a small percentage of the total motor fuel volume, the
state should promote the use of sustainable biosynthetic lubricating
oils and make sure that its use minimizes any potential negative
impacts on food security.

end insert

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

begin insert

(1) Current law requires state agencies to reduce their vehicle
fleets’ consumption of petroleum products, including through the
use of synthetic motor oils.

end insert begin insert

(2) The State Petroleum Reduction Plan identifies the use of
synthetic motor oil and extending the intervals between oil changes
as a way to reduce the state fleet’s consumption of petroleum.

end insert begin delete

(1)

end delete

begin insert (3) end insert  This act would implement a policy of the state to require
state agencies, when servicing fleet vehicles, to begin delete request the end delete use begin delete of end delete
biosynthetic lubricating oil begin insert that meets certain standards end insert , when
available.

begin delete

(2)

end delete

begin insert (4) end insert  The use of biosynthetic lubricating oil, as provided by this
act, will further the state’s policy of reducing the state fleet’s
petroleum consumption and protecting the environment.

begin delete

(3)

end delete

begin insert (5) end insert  The use of biosynthetic lubricating oil, as provided by this
act, will help reduce overall petroleum consumption and aid the
state in achieving its goals of reducing GHG emissions.

begin delete

(4)

end delete

begin insert (6) end insert  Vehicles using synthetic and biosynthetic lubricating oils
require fewer oil changes, extending oil change begin delete intervals end delete begin insert intervals, end insert
and thus reducing the quantity of lubricating oil used over the begin delete life
of the vehicle end delete begin insert lives of those vehicles end insert .

begin delete

(5)

end delete

begin insert (7) end insert  While the begin insert initial end insert cost of synthetic and biosynthetic
lubricating oil begin delete maybe end delete begin insert may be end insert higher than conventional motor oil,
when balanced against the longer oil change interval, using
synthetic and biosynthetic oils becomes less expensive in the long
term.

begin delete

(6)

end delete

begin insert (8) end insert  The benefits of longer intervals between oil changes, the
reduced consumption of lubricating oil over the life of the vehicle,
improved fuel efficiency, the reduction in GHG emissions, and
the benefits to public health and the environment make biosynthetic
lubricating oil a cost-effective alternative to petroleum-based
lubricating oil.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 25250.1 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

25250.1.  

(a) As used in this article, the following terms have
the following meaning:

(1) (A) “Used oil” means all of the following:

(i) Oil that has been refined from crude oil, or begin delete any end delete begin insert a end insert synthetic
oil, begin insert including oil composed of biobased feedstock, end insert that has been
used, and, as a result of use or as a consequence of extended
storage, or spillage, has been contaminated with physical or
chemical impurities.

(ii) Material that is subject to regulation as used oil under Part
279 (commencing with Section 279.1) of Subchapter I of Chapter
1 of Title 40 of the Code of Federal Regulations.

(B) Examples of used oil are spent lubricating fluids that have
been removed from an engine crankcase, transmission, gearbox,
or differential of an automobile, bus, truck, vessel, plane, heavy
equipment, or machinery powered by an internal combustion
engine; industrial oils, including compressor, turbine, and bearing
oil; hydraulic oil; metalworking oil; refrigeration oil; and railroad
drainings.

(C) “Used oil” does not include any of the following:

(i) Oil that has a flashpoint below 100 degrees Fahrenheit or
that has been mixed with hazardous waste, other than minimal
amounts of vehicle fuel.

(ii) (I) Wastewater, the discharge of which is subject to
regulation under either Section 307(b) (33 U.S.C. Sec. 1317(b))
or Section 402 (33 U.S.C. Sec. 1342) of the federal Clean Water
Act (33 U.S.C. Sec. 1251 et seq.), including wastewaters at
facilities that have eliminated the discharge of wastewater,
contaminated with de minimis quantities of used oil.

(II) For purposes of this clause, “de minimis quantities of used
oil” are small spills, leaks, or drippings from pumps, machinery,
pipes, and other similar equipment during normal operations, or
small amounts of oil lost to the wastewater treatment system during
washing or draining operations.

(III) This exception does not apply if the used oil is discarded
as a result of abnormal manufacturing operations resulting in
substantial leaks, spills, or other releases or to used oil recovered
from wastewaters.

(iii) Used oil re-refining distillation bottoms that are used as
feedstock to manufacture asphalt products.

(iv) Oil that contains polychlorinated biphenyls (PCBs) at a
concentration of 5 ppm or greater.

(v) (I) Oil containing more than begin delete 1000 end delete begin insert 1,000 end insert ppm total halogens,
which shall be presumed to be a hazardous waste because it has
been mixed with halogenated hazardous waste listed in Subpart D
(commencing with Section 261.30) of Part 261 of Subchapter I of
Chapter 1 of Title 40 of the Code of Federal Regulations.

(II) A person may rebut the presumption specified in subclause
(I) by demonstrating that the used oil does not contain hazardous
waste, including, but not limited to, in the manner specified in
subclause (III).

(III) The presumption specified in subclause (I) is rebutted if it
is demonstrated that the used oil that is the source of total halogens
at a concentration of more than begin delete 1000 end delete begin insert 1,000 end insert ppm is solely either
household waste, as defined in Section 261.4(b)(1) of Title 40 of
the Code of Federal Regulations, or is collected from conditionally
exempt small quantity generators, as defined in Section 261.5 of
Title 40 of the Code of Federal Regulations. Nothing in this
subclause authorizes begin delete any end delete begin insert a end insert person to violate the prohibition
specified in Section 25250.7.

(2) “Board” means the begin delete California Integrated Waste Management
Board end delete begin insert Department of Resources Recovery and Recycling end insert .

(3) (A) “Recycled oil” means any oil that meets all of the
following requirements specified in clauses (i) to (iii), inclusive:

(i) Is produced either solely from used oil, or is produced solely
from used oil that has been mixed with one or more contaminated
petroleum products or oily wastes, other than wastes listed as
hazardous under the federal act, provided that if the resultant
mixture is subject to regulation as a hazardous waste under Section
279.10(b)(2) of Title 40 of the Code of Federal Regulations, the
mixture is managed as a hazardous waste in accordance with all
applicable hazardous waste regulations, and the recycled oil
produced from the mixture is not subject to regulation as a
hazardous waste under Section 279.10(b)(2) of Title 40 of the
Code of Federal Regulations. If the oily wastes with which the
used oil is mixed were recovered from a unit treating hazardous
wastes that are not oily wastes, these recovered oily wastes are not
excluded from being considered as oily wastes for purposes of this
section or Section 25250.7.

(ii) The recycled oil meets one of the following requirements:

(I) The recycled oil is produced by a generator lawfully recycling
its oil.

(II) The recycled oil is produced at a used oil recycling facility
that is authorized to operate pursuant to Section 25200 or 25200.5
solely by means of one or more processes specifically authorized
by the department. The department begin delete may end delete begin insert shall end insert not authorize a used
oil recycling facility to use a process in which used oil is mixed
with one or more contaminated petroleum products or oily wastes
unless the department determines that the process to be authorized
for mixing used oil with those products or wastes will not
substantially contribute to the achievement of compliance with the
specifications of subparagraph (B).

(III) The recycled oil is produced in another state, and the used
oil recycling facility where the recycled oil is produced, and the
process by which the recycled oil is produced, are authorized by
the agency authorized to implement the federal act in that state.

(iii) Has been prepared for reuse and meets all of the following
standards:

(I) The oil meets the standards of purity set forth in subparagraph
(B).

(II) If the oil was produced by a generator lawfully recycling
its oil or the oil is lawfully produced in another state, the oil is not
hazardous pursuant to the criteria adopted by the department
pursuant to Section 25141 for any characteristic or constituent
other than those listed in subparagraph (B).

(III) The oil is not mixed with any waste listed as a hazardous
waste in Part 261 (commencing with Section 261.1) of Subchapter
I of Chapter 1 of Title 40 of the Code of Federal Regulations.

(IV) The oil is not subject to regulation as a hazardous waste
under the federal act.

(V) If the oil was produced lawfully at a used oil recycling
facility in this state, the oil is not hazardous pursuant to any
characteristic or constituent for which the department has made
the finding required by subparagraph (B) of paragraph (2) of
subdivision (a) of Section 25250.19, except for one of the
characteristics or constituents identified in the standards of purity
set forth in subparagraph (B).

(B) The following standards of purity are in effect for recycled
oil, in liquid form, unless the department, by regulation, establishes
more stringent standards:

(i) Flashpoint: minimum standards set by the American Society
for Testing and Materials for the recycled products. However,
recycled oil to be burned for energy recovery shall have a minimum
flashpoint of 100 degrees Fahrenheit.

(ii) Total lead: 50 mg/kg or less.

(iii) Total arsenic: 5 mg/kg or less.

(iv) Total chromium: 10 mg/kg or less.

(v) Total cadmium: 2 mg/kg or less.

(vi) Total halogens: 3000 mg/kg or less. However, recycled oil
shall be demonstrated by testing to contain not more than 1000
mg/kg total halogens listed in Appendix VIII of Part 261
(commencing with Section 261.1) of Subchapter I of Chapter 1 of
Title 40 of the Code of Federal Regulations.

(vii) Total polychlorinated biphenyls (PCBs): less than 2 mg/kg.

(C) Compliance with the specifications of subparagraph (B) or
with the requirements of clauses (iv) and (v) of subparagraph begin delete (B) end delete
begin insert (C) end insert of paragraph (1) shall not be met by blending or diluting used
oil with crude or virgin oil, or with a contaminated petroleum
product or oily waste, except as provided in subclause (II) of clause
(ii) of subparagraph (A), and shall be determined in accordance
with the procedures for identification and listing of hazardous
waste adopted in regulations by the department. Persons authorized
by the department to recycle oil shall maintain records of volumes
and characteristics of incoming used oil and outgoing recycled oil
and documentation concerning the recycling technology utilized
to demonstrate to the satisfaction of the department or other
enforcement agencies that the recycling has been achieved in
compliance with this subdivision.

(D) This paragraph does not apply to oil that is to be disposed
of or used in a manner constituting disposal.

(4) “Used oil recycling facility” means a facility that reprocesses
or re-refines used oil.

(5) “Used oil storage facility” means a storage facility, as
defined in subdivision (b) of Section 25123.3, that stores used oil.

(6) “Used oil transfer facility” means a transfer facility, as
defined in subdivision (a) of Section 25123.3, that meets the
qualifications to be a storage facility, for purposes of Section
25123.3.

(7) (A) For purposes of this section and Section 25250.7 only,
“contaminated petroleum product” means a product that meets all
of the following conditions:

(i) It is a hydrocarbon product whose original intended purpose
was to be used as a fuel, lubricant, or solvent.

(ii) It has not been used for its original intended purpose.

(iii) It is not listed in Subpart D (commencing with Section
251.30) of Part 261 of Subchapter I of Chapter 1 of Title 40 of the
Code of Federal Regulations.

(iv) It has not been mixed with a hazardous waste other than
another contaminated petroleum product.

(B) Nothing in this section or Section 25250.7 shall be construed
to affect the exemptions in Section 25250.3, or to subject
contaminated petroleum products that are not hazardous waste to
any requirements of this chapter.

(b) Unless otherwise specified, used oil that meets either of the
following conditions is not subject to regulation by the department:

(1) The used oil has not been treated by the generator of the
used oil, the generator claims the used oil is exempt from regulation
by the department, and the used oil meets all of the following
conditions:

(A) The used oil meets the standards set forth in subparagraph
(B) of paragraph (3) of subdivision (a).

(B) The used oil is not hazardous pursuant to the criteria adopted
by the department pursuant to Section 25141 for any characteristic
or constituent other than those listed in subparagraph (B) of
paragraph (3) of subdivision (a).

(C) The used oil is not mixed with any waste listed as a
hazardous waste in Part 261 (commencing with Section 261.1) of
Subchapter I of Chapter 1 of Title 40 of the Code of Federal
Regulations.

(D) The used oil is not subject to regulation as either hazardous
waste or used oil under the federal act.

(E) The generator of the used oil has complied with the
notification requirements of subdivision (c) and the testing and
recordkeeping requirements of Section 25250.19.

(F) The used oil is not disposed of or used in a manner
constituting disposal.

(2) The used oil meets all the requirements for recycled oil
specified in paragraph (3) of subdivision (a), the requirements of
subdivision (c), and the requirements of Section 25250.19.

(c) Used oil recycling facilities and generators lawfully recycling
their own used oil that are the first to claim that recycled oil meets
the requirements specified in paragraph (2) of subdivision (b) shall
maintain an operating log and copies of certification forms, as
specified in Section 25250.19. Any person who generates used
oil, and who claims that the used oil is exempt from regulation
pursuant to paragraph (1) of subdivision (b), shall notify the
department, in writing, of that claim and shall comply with the
testing and recordkeeping requirements of Section 25250.19 begin delete prior
to end delete begin insert before end insert its reuse. In any action to enforce this article, the burden
is on the generator or recycling facility, whichever first claimed
that the used oil or recycled oil meets the standards and criteria,
and on the transporter or the user of the used oil or recycled oil,
whichever has possession, to prove that the oil meets those
standards and criteria.

(d) Used oil shall be managed in accordance with the
requirements of this chapter and any additional applicable
requirements of Part 279 (commencing with Section 279.1) of
Subchapter I of Chapter 1 of Title 40 of the Code of Federal
Regulations.

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

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

 

Article 7.7.  Biosynthetic Lubricant Procurement

 

10409.1.  

The following definitions govern the construction of
this article:

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

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

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

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

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

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

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

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

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

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

(A) OECD Test No. 301 A-F.

(B) OECD Test No. 306.

(C) OECD Test No. 310.

(D) ASTM begin delete D5862-2006 end delete begin insert D5864-2006 end insert standard test method.

(E) ASTM D7373-2007 standard test method begin insert . end insert

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

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

begin delete

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

end delete begin delete

(h)

end delete

begin insert (g) end insert begin insert   end insert “OECD” means the Organisation for Economic
Co-operation and Development.

begin delete

(i)

end delete

begin insert (h) end insert begin insert   end insert “Procuring agency” means any state agency or any person
or entity contracting begin delete with, or receiving a grant from, end delete begin insert with end insert that
agency begin insert for the supply of lubricating oil to the state end insert .

10409.2.  

(a)  begin delete (1) end delete begin delete   end delete begin delete On end delete begin insert Except as provided in Section 42359.3 of
the Public Resources Code, on end insert and after January 1, 2016, every
procuring agency that purchases lubricating oil shall only purchase
biosynthetic lubricant that meets begin delete or exceeds minimal standards for
biodegradability end delete begin insert the requirements of Section 42359.1 of the Public
Resources Code end insert .

begin delete

(2)

end delete

begin insert (b) end insert  Before begin delete January 31, 2016, end delete begin insert July 31, 2015, end insert the Department of
General Services shall provide language for a state agency to
include in a contract or grant that implements the provisions of
this subdivision.

begin delete

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

end delete

10409.3.  

Notwithstanding any other law, when procuring
lubricating oil for gasoline or diesel engines used in passenger
cars, begin delete light end delete begin insert light-duty end insert trucks, and vans, a state agency, city, county,
city and county, and district, including a school district and a
community college district, may purchase biosynthetic begin delete lubricants
that have a biobased content that meets or exceeds minimal
standards for biodegradability end delete begin insert lubricating oil that is in compliance
with Section 42359.1 of the Public Resources Code end insert .

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

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

12405.  

(a) The Department of General Services shall maintain
and update, on the department’s “Buying Green” Internet Web
site, a list that contains the names of begin insert biosynthetic end insert lubricating oil
products that meet begin delete or exceed the minimal standards for
biodegradability, as defined in Section 10409.1 end delete begin insert the requirements
of Section 42359.1 of the Public Resources Code end insert .

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

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

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

 

Chapter  5.8. Biosynthetic Lubricant

 

42359.  

The following definitions govern the construction of
this chapter:

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

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

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

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

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

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

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

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

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

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

(A) OECD Test No. 301 A-F.

(B) OECD Test No. 306.

(C) OECD Test No. 310.

(D) ASTM begin delete D5862-2006 end delete begin insert D5864-2006 end insert standard test method.

(E) ASTM D7373-2007 standard test method.

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

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

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

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

42359.1.  

Notwithstanding Article 7 (commencing with Section
13460) of Chapter 14 of Division 5 of the Business and Professions
Code, on and after January 1, 2017, a person shall not sell
lubricating oil in the state unless the begin insert producer of the end insert lubricating
oil begin delete does both end delete begin insert has filed with the department a document by which
the producer verifies compliance with subdivisions (a) to (c),
inclusive, in accordance with Section 42359.2 and the lubricating
oil complies with all end insert of the following:

(a)  begin delete Meets end delete begin insert It is a biosynthetic lubricant and meets end insert or exceeds
minimal standards for biodegradability, as defined in Section
42359.

(b)  begin delete Is end delete begin insert It is end insert at the time of the sale certified for use by the
American Petroleum Institute’s Engine Oil begin insert and end insert Licensing
Certification System.

begin insert

(c) (1) It is, at the time of sale and based on a life-cycle
analysis, certified by a third party sustainable biomaterials
certification entity to be both of the following:

end insert begin insert

(A) Produced without causing higher greenhouse gas or criteria
pollutant emissions than comparable petroleum-based lubricant.

end insert begin insert

(B) Produced without having significant negative impacts on
food security.

end insert begin insert

(2) If the department has reason to believe that either of the
certifications provided pursuant to paragraph (1) is not
scientifically conclusive, the director may require another third
party sustainable biomaterials certification entity to reexamine
the certification.

end insert

begin insert

begin insert 42359.2. end insert   

(a) A producer of biosynthetic lubricating oil that is
intended for sale in the state, at least 90 days before its initial sale,
shall file with the department a document by which the producer
verifies that the lubricating oil is in compliance with subdivisions
(a) to (c), inclusive, of Section 42359.1. The department shall
acknowledge receipt of this self-verification by providing the
producer with a unique lubricating oil biodegradability compliance
number for each product self-verified by the producer. By
acknowledging receipt of self-verification of compliance, the
department shall not be deemed to be ensuring the veracity of the
information provided by the producer.

(b) A producer of lubricating oil shall verify that the biosynthetic
lubricating oil is in compliance with Section 42359.1 each time
the lubricating oil is recertified by the American Petroleum
Institute’s Engine Oil and Licensing Certification System.

end insert

begin delete 42359.2. end delete
begin insert 42359.3. end insert   

On and after begin delete January 1, 2016, end delete begin insert July 1, 2015, end insert the
director, in consultation with the advisory committee established
pursuant to Section begin delete 42359.3 end delete begin insert 42359.4 end insert , may grant begin delete a end delete one-year begin delete delay end delete
begin insert delays end insert of the requirements imposed pursuant to Section 42359.1
begin insert and Section 10409.2 of the Public Contract Code end insert if the director
finds that the begin insert biosynthetic end insert lubricating oil is not commercially
available in the state. In deciding whether to grant or deny an
extension, the director shall consider, but shall not be bound by,
the recommendation of the advisory committee.

begin delete 42359.3. end delete
begin insert 42359.4. end insert   

The director shall establish an advisory committee
of nine members appointed by the director. The advisory
committee, based upon information submitted to the committee
by lubricating oil manufacturers, wholesalers, and retailers, shall
consider and recommend approval or denial of a delay pursuant
to Section begin delete 42359.2 end delete begin insert 42359.3 end insert . The advisory committee shall include
representation from the petroleum industry, biosynthetic begin delete fuel and end delete
oil industry, automobile manufacturers and servicing industry,
local government stormwater management agencies, and public
interest groups.

begin insert

begin insert 42359.5. end insert   

A procuring agency or person subject to the
provisions of this article may sell, no later than 12 months after
the date specified in Section 42359.1, or no later than 12 months
after the end of the last of all extensions granted by the director
pursuant to Section 42359.3, whichever is the later, lubricating
oil that does not meet the standards of Section 42359.1 if the
procuring agency or person legally possessed the lubricating oil
before the last of these dates. A procuring agency or person that,
after the last of these dates, sells lubricating oil that does not meet
the standards of Section 42359.1 shall maintain records for review
by the department to verify that the lubricating oil sold was in
legal possession of the seller before those dates.

end insert

begin delete 42359.4. end delete
begin insert 42359.6. end insert   

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

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CORRECTIONS:

Text--Pages 4, 5, 14, 16, 17, and 18.

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