BILL ANALYSIS Ó AB 628 Page 1 ASSEMBLY THIRD READING AB 628 (Bloom) As Introduced February 24, 2015 Majority vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | |----------------+------+---------------------+---------------------| |Environmental |6-1 |Alejo, Dahle, |Gallagher | |Safety | |Gonzalez, Gray, | | | | |McCarty, Ting | | ------------------------------------------------------------------- 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 is shipped to a transfer facility, recycling facility or a AB 628 Page 2 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. FISCAL EFFECT: None 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." AB 628 Page 3 According to the United States Environmental Protection Agency (U.S. 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." There are two rerefineries in the U.S. that produce the base oil by Safety-Kleen in California and 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 U.S. EPA definition of used oil: In response to a request for clarification by the sponsors of this bill, the U.S. 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." Prior legislation: SB 916 (Correa) of 2014 would have provided definitions similar to this bill for biosynthetic oil. AB 916 was subsequently amended AB 628 Page 4 to deal with firearms and was held in the Assembly Public Safety Committee. Analysis Prepared by: Bob Fredenburg / E.S. & T.M. / (916) 319-3965 FN: 0000221