BILL ANALYSIS Ó SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator Wieckowski, Chair 2015 - 2016 Regular Bill No: SB 778 ----------------------------------------------------------------- |Author: |Allen | ----------------------------------------------------------------- |-----------+-----------------------+-------------+----------------| |Version: |4/20/2015 |Hearing |4/29/2015 | | | |Date: | | |-----------+-----------------------+-------------+----------------| |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Joanne Roy | | | | ----------------------------------------------------------------- SUBJECT: Automotive oil source reduction ANALYSIS: Existing law: 1. Pursuant to the California Oil Recycling Enhancement Act (Act), (Public Resources Code §48600 et seq.): A. Establishes a program to encourage the recycling of used oil. B. Authorizes the Department of Resources Recycling and Recovery (CalRecycle) to award grants to and work with local governments, non-profit entities, and private companies in order to develop and advance certain developments in lubricating oil, such as oil recycling, collection, research, testing, and re-refining. C. Charges a fee on all oil sold in California to fund local curbside oil pickup programs, local collection facilities, and rebates to oil manufacturers. D. Provides that a person convicted of violating the Act is guilty of an infraction, which is punishable by a fine of not more than $100/day for each day the violation occurs. This bill: SB 778 (Allen) Page 2 of ? Requires all automotive oil sold in this state be certified by the oil manufacturer to achieve a minimum useful life of 10,000 miles on and after January 1, 2018. Background 1. Types of Oil. Oil comes in a variety - conventional motor oil, premium conventional oil, semi-synthetic, full-synthetic, or high-mileage. A. Conventional oil. This is the oil used in bulk at dealerships and is the cheapest at auto stores. It is fossil fuel oil. Conventional oil tends to break down and separate more quickly than synthetic oil [due to heat and elements]. B. Full-synthetic oil. This oil is made for high-tech engines. If these oils pass stringent special tests, it means they have superior, longer-lasting performance in critical areas, such as viscosity index and protection against engine deposits. They flow better at low temperatures and maintain peak lubrication at high temperatures. Although it is considered an excellent quality oil, synthetics are about three times as expensive as conventional oil and not always necessary for some engines. However, some engines call for synthetic only such as Corvette, BMW and Mercedes-Benz. According to Popular Mechanics, petroleum-type engine oil contains a mixture of several different types of base oil. Oil companies typically pick from a selection of five groups, each of which is produced in a different way and in different viscosities. The more expensive groups are more highly processed, in some cases with methods that produce a lubricant that can be classified as a synthetic. The full synthetics contain chemicals that may be derived from petroleum but are altered so much that they are not considered natural oil anymore. SB 778 (Allen) Page 3 of ? In general, synthetic oils have a lower environmental impact, higher vehicle performance, and can extend the time between oil changes. C. Synthetic Blend Oil. This oil is a mix of synthetic and conventional oils, which is formulated to provide protection for heavier loads and high temperatures. This generally means they are less volatile and evaporate less, which reduces oil loss. They are less expensive than full-synthetic oils. D. High-Mileage Oil. This oil is formulated for vehicles with higher mileage. They may have higher viscosities, higher dose of antiwear additives, and are formulated with seal conditioners that flow into the pores of the seals to restore their shape and increase their flexibility. High-mileage oils have ingredients to take care of older engines, like conditioners, seal swells, antioxidants, detergents and wear or friction additives. Typically they use a viscosity modifier that is durable and will not lose viscosity very easily. These oils need to stay thicker longer to protect engine parts. 2. Oil Additives. Oil is comprised of base oil package and additives. Base oil package in any oil makes up anywhere from 70 to 95% of the mix, the rest comprised of additives. Use of additives can improve and maintain oil performance. Manufacturers add in various chemicals and minerals to change how the oil works within an engine, including viscosity-index improvers, detergents, dispersants, antiwear agents, friction modifiers, pour-point depressants, antioxidants, foam inhibitors, and rust/corrosion inhibitors. For example, in high-mileage oil, the manufacturers may add a higher level of anti-wear agents, corrosion inhibitors and seal conditioners to maximize an aging engine so that it can run longer. 3. Extended-Life Oils. Many oil companies are releasing extended-life oils that are guaranteed for specific mileage listed on the bottle. For example, Mobil's most advanced fully synthetic product is SB 778 (Allen) Page 4 of ? guaranteed for 15,000 miles. The company recommends it for vehicles that are beyond their warranty period because many automakers will void the warranty if the owner does not follow the manufacturer's recommended service intervals. 4. Automotive Oil Changes. Changing the oil in a motor vehicle is necessary to protect the engine, keeping vital engine parts well lubricated so that they do not overheat. An engine cannot function without it and going too long between oil changes can cause permanent damage to an engine over time. Depending on the vehicle, the intervals for required oil changes vary. For example, many newer models require an oil change at least every 5,000 miles; some require every 15,000 miles. Oil change information is located in a vehicle owner's manual and many automakers post their manuals online. Automaker oil change recommendations differ depending on driving conditions as well as car make, model and year. According to car manufacturers, for driving conditions considered "severe" (e.g. extensive idling or stop and go traffic; extreme weather or humidity; repeated short-distance trips of less than five miles; or towing a trailer or hauling heavy materials), the oil should be changed more frequently or at shorter mileage intervals than for conditions considered normal. In addition, some automakers have installed oil life monitors in their vehicles with varying capabilities - the basic versions are maintenance reminders based on mileage while the more advanced systems take information from various sensors throughout the vehicle and use an algorithm to predict the life of the oil. These systems are calibrated to work with the factory-recommended oil. Although these systems take the guess work out of knowing when the next oil service should be, many people have preconceived notions about oil change intervals such as all cars need the oil changed every 3,000 miles. 5. Used Oil. A. Used Oil in California. SB 778 (Allen) Page 5 of ? According to CalRecycle, in 2005, the latest year for which statistics are available, approximately 153.5 million gallons of used oil is generated annually. 59% of that oil was recycled. B. Used Oil Can Harm the Environment. According to CalRecycle, can contain such contaminants as lead, magnesium, copper, zinc, chromium, arsenic, chloride, cadmium, and chlorinated compounds. Used motor oil poses a great risk to the environment - oil poured down drains or onto the ground can work its way into ground and surface waters causing serious pollution because it is insoluble, persistent and contains heavy metal and toxic chemicals. Used oil that is not recycled often finds its way into California's waterways - lakes, streams, and ocean - via the stormwater system. Used oil in waterways threatens fish, waterfowl, insects, and aquatic life. One gallon of used oil can foul the taste of 1 million gallons of water. Federal reports indicate that used motor oil accounts for more than 40% of the total oil pollution in the nation's harbors and waterways. Comments 1. Purpose of Bill. According to the author, "Every major motor oil brand offers higher quality, synthetic oils that are better for engines, and are far more environmentally friendly than conventional oils. Higher quality oils reduce waste and pollution and, if used more widely, can increase gas mileage in vehicles equivalent to taking a half a million cars off the road in California. Yet only 20% of the oil sold in the state is of this higher quality. SB 778 requires all motor oil sold in the State to meet quality standards which will be measurably better for vehicles and the environment than conventional oils. "Many drivers spend 2-3% more on gasoline because lower quality motor oil causes a decrease in gas mileage. This poor quality oil also requires drivers to change their oil 2 - 3 times more often compared to higher quality synthetic oil, at SB 778 (Allen) Page 6 of ? recommended intervals of 3,000 - 5,000 miles, costing consumers more and producing an unnecessary amount of oil waste. Low quality motor oil can also cause increased engine wear, costing drivers hundreds of dollars in unneeded repairs. "The high frequency of oil changes caused by low quality motor oil makes used motor oil one of the largest hazardous waste streams in California. Over 115 million gallons of motor oil are sold in the state each year; and only half of it is recycled with the other half ending up in the waste stream, polluting our waterways and ocean, or burning off, causing air pollution. Also, according [to] the Petroleum Quality Institute of America, some of the motor oil on store shelves is of such poor quality that it could potentially damage a car's engine. In fact, six states have banned motor oil that is not quality certified, brands such as Black Knight, Lube State and MaxiGuard MG. "Higher quality oils provide a greater level of protection for an engine, protect the engine longer, are better for the environment, and are already offered by every major motor oil brand, effectively protect engines from wear with oil change intervals at 15,000 miles or longer." 2. Does the Proposed Solution Match the Problem? The author states, "Roughly 40% of motor oil can never be collected for recycling because it is lost in use, either burned in the combustion chamber or dripped onto streets and parking lots. This presents a serious environmental problem because traditional motor oil is insoluble and contains heavy metals and toxic chemicals. This toxic-laden oil makes its way into lakes, streams, and oceans via the stormwater system and endangers fish, waterfowl, insects, and other aquatic life. " This bill requires all automotive oil sold in California to meet a 10,000 mile interval standard by 2018. The intent of the bill is to reduce the amount of used oil that is generated by elongating the useful lifespan of automotive oil in cars. A. Notion of Every 3,000 Miles. SB 778 (Allen) Page 7 of ? Regardless of the quality of the motor oil being put into the car, reduction of the amount of used oil generated more directly correlates to the quantity of oil consumed. It is not uncommon for people to believe that a car should have its oil changed every 3,000 miles. In 2011, CalRecycle found that nearly half of California drivers were still changing their oil at 3,000 mile intervals or sooner. This long-held notion can result in unnecessary oil changes as well as more used oil to dispose. A question arises as to whether changing the specifications in motor oil sold will reduce the actual amount of oil consumed. B. Educating the Vehicle Owner. Oil change information is in the maintenance section of a vehicle owner's manual. Also, many automakers have put their manuals online. In addition, CalRecycle has an easily accessible, interactive webpage to see how often one should change the oil for a car based on the make, model, and year of the car. Many cars nowadays require a minimum oil change of every 5,000 or 7,500 miles. Ford Motor Company recommends oil changes for many of its new vehicles at 10,000 miles. Some cars commonly seen on the road require an oil change every 15,000 miles. However, if a person does not read the owner's manual or check online for the manufacturer recommendation, and habitually changes the oil every 3,000 miles, how much impact will setting a minimum standard of 10,000 miles for oil have? According to CalRecycle, "[c]hanging motor oil according to the manufacturer specifications would reduce motor-oil demand in California by about 10 million gallons a year." (Jerry Hirsch, "State hopes to break car owners' habit of changing oil too often," Los Angeles Times, December 15, 2011). A question arises as to whether the goal of reducing the amount of used oil generated can be more effectively achieved through the education of vehicle owners rather SB 778 (Allen) Page 8 of ? than requiring a minimum standard on oil sold. 3. Possible Unintended Consequences: A. Potential Voiding of Car's Warranty. Most vehicles sold include warranties by the manufacturers, dealerships, and/or insurance companies. A warranty is an agreement between the manufacturer, dealership, or insurance company and the customer that should something break, malfunction, or otherwise go wrong with the vehicle within a certain period of time or miles driven, then the manufacturer, dealership, or insurance company will repair or replace the component at no additional cost to the customer. Usually, such agreements require the customer to regularly maintain the vehicle like changing the oil on specified intervals such as every 5,000 miles. It may be possible that the owner accidentally voids the warranty if he/she follows the mileage on the bottle of the lubricant oil rather than as prescribed by the vehicle manual or warranty agreement. B. The Infrequently Driven Vehicle. For a "weekend" vehicle or one that is driven for low miles, oil maintenance may not directly correlate with the owner's manual and maintenance may have to occur more than expected. Over time, oil becomes contaminated by gases that blow by the pistons - the longer the oil sits with that contamination, the more it degrades. So, regardless of the oil, which would have a useful life of 10,000 miles, the oil change interval would likely have to occur more frequently in the case of a "weekend" car. It is questionable whether this bill would have an effect on reducing the amount of oil used for such vehicles. 4. Is the California Oil Recycling Enhancement Act the Right Place? This bill requires, on and after 2018, all automotive oil sold in this state to be certified by the oil manufacturer to achieve a minimum useful life of 10,000 miles when used in accordance with the automobile manufacturers' recommendations and must meet current automotive industry standards. SB 778 (Allen) Page 9 of ? SB 778 proposes to place this requirement in the California Oil Recycling Enhancement Act, which is located in the Public Resources Code. The act establishes a program to encourage the recycling of used oil and authorizes CalRecycle to award grants to and work with local governments and other entities to develop and make environmental advancements for the end of the lifecycle of oil. Within the Petroleum Products Program, the California Department of Food and Agriculture maintains and enforces the minimum quality specification for most petroleum and automotive products sold in the state, as well as regulates the advertising and labeling of these products. Standards for lubricating oils are located in the Business and Professions Code §13460 et seq. This bill places mandates on automotive oil at the beginning of the lifecycle, what must go into the car, and the level of performance required for the use of the product. To keep consistency with existing law dealing with this type of product, the author may wish to consider moving the provisions of this bill to the Business and Professions Code relating to standards for lubricating oils. Related/Prior Legislation SB 916 (Correa) (2014) would have specified that synthetic oil included oil composed of biobased feedstock for the purposes of regulating disposal and recycling of used oil; would have prohibited on and after January 1, 2017, the sale of lubricating oil in the state unless the lubricating oil met certain requirements, including meeting or exceeding minimal standards for biodegradability. (NOTE: SB 916 was subsequently amended to address firearms). SB 546 (Lowenthal), Chapter 353, Statutes of 2009, made broad changes to the Act to encourage the best re-use of used oil and reduce air pollution from the use of used oil, including: raising the fee paid by lubricating oil manufacturers from $0.16 to $0.26 per gallon; increasing the incentives paid for recycling used oil; increasing the testing requirements for used oil transporters; and, requiring a life-cycle analysis of used oil. SB 778 (Allen) Page 10 of ? SOURCE: Californians Against Waste SUPPORT: American Logistics Company American Lung Association Blue River Advisors California Coastal Coalition California League of Conservation Voters Clean Green Technologies Coalition for Clean Air Coastal Environmental Rights Foundation Colorado Ocean Coalition Environment California Friends of the River LivBlue Marine Watch International Mission Blue/Sylvia Earle Alliance Napa Recycling & Waste Services Roost LA Sierra Club California Solazyme, Inc. StopWaste Strategic Ocean Solutions Surfrider Foundation T2e Energy The TerraMar Project Turtle Island Restoration Network West Marin Environmental Action Committee Wholly H2O Wildcoast OPPOSITION: None on file -- END --