BILL ANALYSIS Ó
AB 628
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Date of Hearing: April 28, 2015
ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
Luis Alejo, Chair
AB 628
(Bloom) - As Introduced February 24, 2015
SUBJECT: Used oil
SUMMARY: Includes all synthetic oil within the state definition
of used oil.
EXISTING LAW:
1)Establishes management standards for used oil including:
a) Defines "used oil" and "recycled oil" as oils that meet
specified characteristics including flashpoint and
contaminant levels;
b) Establishes transportation, testing and storage
requirements for used oil; and,
c) Requires testing of each truckload of used oil before it
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is shipped to a transfer facility, recycling facility or a
facility located out-of-state. Requires that the used oil
not have a flashpoint of more than 100 degrees Fahrenheit,
a concentration of polychlorinated biphenyls of more than
five parts per million (ppm), and a concentration of under
1000 ppm of halogens.
2)Pursuant to the California Oil Recycling Enhancement Act,
rerefined oil must currently meet the following criteria:
a) Have a lubricant base stock or oil base that has been
derived from used oil;
b) Be capable of meeting the Physical and Compositional
Properties, in addition to the Contaminants and
Toxicological Properties, as defined under the American
Society for Testing and Materials standard; and,
c) Have had its producer provide a purchaser of that base
stock with information that certifies that the rerefined
base stock is rerefined oil.
3)Provides that used oil means any oil that has been refined
from crude oil, or any synthetic oil that has been used and as
a result of such use is contaminated by physical or chemical
impurities pursuant to federal regulation (40 CFR Part 279).
FISCAL EFFECT: Non fiscal.
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COMMENTS:
Need for the bill: According to the author, "Varying
interpretations of state and federal law related to the
treatment of used oil are creating unintended barriers to
expanding the market for recycling of high quality biosynthetic
motor oils. Many companies have spent years developing
bio-based, biosynthetic motor oils for use in automobiles.
Independent testing not only shows biosynthetic motor oils to be
among the highest rated products for protecting engines and
machinery, they also are bio-based, biodegradable, nontoxic, and
do not bio-accumulate in marine organisms? AB 628 seeks to
update and clarify existing law surrounding the regulation of
these blended used oils."
According to the United States Environmental Protection Agency
(US EPA), "Used oil is any oil that has been refined from crude
oil or any synthetic oil that has been used and as a result of
such use is contaminated by physical or chemical impurities.
Simply put, used oil is exactly what its name implies-any
petroleum-based or synthetic oil that has been used."
Management of used oil in California: The California Oil
Recycling Enhancement Act, which is administered by the
California Department of Resources Recycling and Recovery
(CalRecycle), is a law designed to discourage the illegal
disposal of used oil. This law requires oil manufacturers to pay
to CalRecycle a $0.24/gallon fee. Registered industrial
generators, curbside collection programs, and certified
collection centers are eligible to receive an incentive payment
from CalRecycle.
Rerefined oil products are subject to the same refining,
compounding, and performance standards applied to virgin oil
products. American Petroleum Institute (API)-licensed rerefined
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oils must pass the same cold-start, pump ability,
rust-corrosion, engine-wear, and high-temperature viscosity
tests that virgin oils do. The American Petroleum Institute and
American Automobile Manufacturers Association have developed the
Engine Oil Licensing Certification System to ensure all engine
oils consistently meet performance specifications
There are two rerefineries in the U.S. that produce the base
oil; Evergreen Oil in California and Safety-Kleen in Illinois.
Unocal, Chevron, Safety-Kleen, Coast Oil, Rosemead Oil, and
Lyondell are the major oil blenders. Typically, an oil blender
will purchase base stock from the rerefinery and combine it with
an additive package to meet specific performance requirements.
Rerefined oil comes in a variety of blends, suitable for
different types of gas and diesel engines.
Disagreement over the US EPA definition of used oil: In
response to a request for clarification by the sponsors of AB
628, the US EPA Office of Resource Conservation and Recovery
reported that, "While our 1997 policy regarding vegetable and
animals oil addressed only those oils derived solely from plant
or animal sources, that policy did not envision those situation
where such oil would be mixed with conventional motor oils prior
to use. We believe that such formulations, once used, could be
regulated as used oil under part 279, because the resulting used
oil still fits within the used oil definition. We do not
believe the definition of used oil precluded third use of
additives in oil formulations."
Arguments in support: A coalition of clean technology firms
supporting the addition to the current definition of used oil
argue, "AB 628 will update and clarify state law relating to the
management of used oil, thus removing any legal confusion and
barriers to expanding environmentally preferred and superior
performing lubricants in the California market?. Clarifying the
definition of "used oil" will create a level playing field in
the marketplace by reaffirming and clarifying that all synthetic
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oils, including biosynthetic oils and synthetic oil blends, may
be recycled as "used oil"."
Arguments in opposition: The oil rerefiner Safety-Kleen has
objected to AB 628 and asserts that, "AB 628 directly conflicts
with the long-standing federal statutory lase under the
Resources Conservation and Recovery Act (RCRA) and, as a result,
jeopardizes the state's used oil recycling program."
Prior legislation:
SB 916 (Correa) 2014. Would have provided definitions similar to
AB 628 for biosynthetic oil. AB 916 was subsequently amended to
deal with firearms and was held in the Assembly Public Safety
Committee.
REGISTERED SUPPORT / OPPOSITION:
Support:
Alternative Fuels Advocates, LLC
Biosynthetic Technologies
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Biotechnology Industry Association
California Yellow Cab
Dynamic Green Products
EcoShift Consulting
Green
Green Earth Technologies
Redwood Innovation Partners
Strategic Ocean Solution
The Westly Group
T2e Energy
Opposition:
Safety-Kleen
Analysis Prepared by:Bob Fredenburg / E.S. & T.M. / (916)
319-3965