BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 778 (Allen) - Automotive oil source reduction.
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|Version: April 20, 2015 |Policy Vote: E.Q. 4 - 1 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: May 11, 2015 |Consultant: Marie Liu |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: SB 778 would require that, by January 1, 2018, all
automotive oil sold in the state be certified by the oil
manufacturer to achieve a minimum useful life of 10,000 miles.
Fiscal
Impact: Unknown costs, possibly in the hundreds of thousands of
dollars, from the General Fund and various special funds for
increased automotive oil costs for the state's automotive fleet.
Background: Under the existing California Oil Recycling Enhancement Act
(PRC §48600 et seq.), the Department of Resources Recycling and
Recovery (CalRecycle) is authorized to develop and advance
developments in lubricating oil, such as oil recycling,
collection, research, testing, and re-refining. This program
also provides financial support to local curbside oil pickup
programs, local collection facilities, and rebates to oil
SB 778 (Allen) Page 1 of
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manufactures with fees assessed on all oil sold in California.
Proposed Law:
This bill would require that all automotive oil sold in the
state after January 1, 2018 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.
The oil would also be required to meet current automotive
industry standards.
Staff
Comments: This bill requires an oil manufacturer to "certify"
its minimum life. However, the bill is silent as to whom the oil
manufacturer is certifying to. According the author's office,
the intent of this bill is to require the certification be done
by the American Petroleum Institute (API). According to API's
website, "API's Engine Oil Licensing and Certification system
(EOLCS) is a voluntary licensing and certification program that
authorizes engine oil marketers who meet specified requirements
to use the API Engine Oil Quality Marks." Staff recommends that
this intent be clarified. In the absence of such amendments, the
bill could be interpreted to require CalRecycle to develop a
certification process for automotive oil. CalRecycle would be
the responsible agency because this bill is written as a change
to the California Oil Recycling Enhancement Act which is
administered by CalRecycle.
Staff notes that, as discussed by the Environmental Quality
Committee, the Department of Food and Agriculture maintains and
enforces minimum quality specifications for most petroleum and
automotive products under its Petroleum Products Program.
This bill would also likely impact the cost to maintain the
state's automotive fleet. To achieve the mileage standard under
this bill, oil manufacturers will have to move towards
synthetic-blend oils or full-synthetic oil. While these oils
have a longer useful life, full-synthetic oils are about three
times as expensive as conventional oil. At least some of the
higher oil costs could be offset by less frequent oil changes;
however, staff notes that DGS follows manufacturers recommended
replacement intervals so the long-term benefits of
full-synthetic oil required by this bill will only be achieved
SB 778 (Allen) Page 2 of
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if it is consistent with the vehicle's maintenance schedule.
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