BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 628


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          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


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               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."








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          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  








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          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