BILL ANALYSIS Ó
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: SB 778 Hearing Date: January
11, 2016
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|Author: |Allen |
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|Version: |January 4, 2016 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Mark Mendoza |
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Subject: Automotive repair: oil changes: notification to
customers.
SUMMARY: Requires that, when an automotive repair dealer recommends the
date or mileage for the next oil change, the automotive repair
dealer follow the oil drain interval specified in the
maintenance schedule of the vehicle's owner's manual when making
that recommendation to the customer verbally, in the form of a
window sticker, through settings in a vehicle's oil sensor, or
any other means, as specified.
Existing law:
1) Establishes the Automotive Repair Act and the Bureau of
Automotive Repair (BAR) under the supervision and control of
the Director of the Department of Consumer Affairs (DCA).
(Business and Professions Code (BPC) § 9880 et seq.)
2) Regulates the business of automotive repair and makes it
unlawful for any person to be an automotive repair dealer
unless registered with the BAR. (BPC § 9880-9889.68)
3) Defines the "repair of motor vehicles" to mean all
maintenance of, and repairs to, motor vehicles, except the
following services: (BPC § 9880.1(e))
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a) Repairing tires;
b) Changing tires;
c) Lubricating vehicles;
d) Installing light bulbs, batteries, windshield wiper
blades, and other minor accessories;
e) Cleaning, adjusting, and replacing spark plugs;
f) Replacing fan belts, oil, and air filters; and
g) Other minor services the Director of DCA determines to
be customarily performed by a gasoline service station.
1) Defines an "automotive repair dealer" as a person who engages
in the business of repairing or diagnosing malfunctions of
motor vehicles for compensation.
(BPC § 9880.1(a))
2) States that the Director shall not designate a service as
minor if the Director of DCA finds that performance of the
service requires mechanical expertise, has given rise to a
high incidence of fraud or deceptive practices or involves a
part of the vehicle essential to its safe operation. (BPC §
9880.1(e))
3) Pursuant to The California Oil Recycling Enhancement Act:
(Public Resources Code § 48600 et seq.):
a) Establishes a program to encourage the recycling of used
oil.
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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
California Oil Recycling Enhancement 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:
1) Makes numerous findings and declarations regarding the use of
automotive oil in California, the development of oil quality
and engine technology, and the goal of reducing the use of
automotive oil in California.
2) Requires, prior to performing any work, an automotive repair
dealer to notify a customer purchasing an oil change of the
recommended oil drain interval, oil grade, and viscosity
specified in the maintenance schedule of the vehicle's
owner's manual.
3) Requires that, if an automotive repair dealer recommends the
date or mileage for the next oil change, the automotive
repair dealer will follow the oil drain interval specified in
the maintenance schedule of the vehicle's owner's manual when
making that recommendation to the customer verbally, in the
form of a window sticker, through settings in a vehicle's oil
sensor, or any other means, as specified.
4) Authorizes a customer to choose a different drain interval
used for purposes of
Item #3, above, if a customer purchases oil for the oil change
that has a recommended drain interval different from the oil
drain interval specified in the maintenance schedule of the
vehicle's owner manual.
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FISCAL
EFFECT: Unknown. This bill has been keyed fiscal by
Legislative Counsel.
COMMENTS:
1. Purpose. The Californians Against Waste is the Sponsor of
the bill. According to the Author, "Oil chemistry and engine
technology have evolved over the past 5 decades, with
lubricants that can last up to 15,000 miles. In fact, most
cars today call for an oil change at 7,500 or more miles.
However, a 2012 survey by CalRecycle shows that almost 10
million Californians change their motor oil every 3,000 miles
or less. This is partly because of the ingrained myth that
all vehicles must have their oil changed every 3000 miles,
but it is also because some automotive repair shops still
recommend, through window stickers and other means, that
drivers have their oil changed every 3,000 miles. Ensuring
that auto repair dealers follow the manufacturer's
recommendations when listing the date or mileage for the
customer's next oil change will reduce the amount of oil
waste generated and save consumers dollars."
2. Types of Oil. Oil comes in a variety of types - conventional
motor oil, premium conventional oil, semi-synthetic,
full-synthetic, or high-mileage.
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].
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
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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.
In general, synthetic oils have a lower environmental impact,
higher vehicle performance, and can extend the time between
oil changes.
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.
High-Mileage Oil. This oil is formulated for vehicles with
higher mileage. They may have higher viscosities, higher
dose of anti-wear 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.
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 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
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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. Used Oil in California. 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 percent of that oil was recycled.
Used Oil Can Harm the Environment. According to CalRecycle,
used oil can contain such contaminants as lead, magnesium,
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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 percent of the total oil
pollution in the nation's harbors and waterways.
6. 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 today 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.
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).
Prior to the January 4, 2016 amendments, this bill faced a
policy concern in the Senate Committee on Environmental
Quality about whether educating the vehicle owner was a more
effective way to reduce oil waste. With the new amendments,
the bill addresses the concerns and explicitly requires the
automotive repair dealer to notify the customer of the
recommended oil change interval listed in the vehicle's
owner's manual and change the oil at that interval, unless
otherwise specified.
7. Ongoing Litigation. Currently, the California Attorney
General, on behalf of BAR, filed an accusation against
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numerous Jiffy Lube stations across the state. The
accusation lists various causes for discipline including
failure to provide a copy of the signed estimate, departure
from trade standards, fraud, false and misleading records,
unfair competition, and untrue and misleading statements.
8. 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.
( Status : This bill was amended to address firearms).
SB 546 (Lowenthal, Chapter 353, Statutes of 2009) made broad
changes to the California Oil Recycling Enhancement 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.
9. Policy Issue : Should all facilities that provide oil changes
be included in this bill? As amended, the bill only covers
licensed automotive repair dealers (e.g. Jiffy Lube) and not
quick lube/oil shops (e.g. such as Oil Changer) that solely
provide oil changes.
Current law exempts independent shops from registering with
BAR because an oil change service is considered a minor
service, as are tires and battery services (BPC § 9880.1(e)).
Namely, these quick lube/oil businesses will not be impacted
because they are not regulated by BAR. If the bill is
attempting to reduce the use of automotive oil, and make
customers more aware of when an oil change should be made,
the Author may wish to revise some of the language used in
Section 2 of the bill.
However, it should be noted that AB 873 (Jones), which is
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currently in this Committee, may achieve the goal of
including all oil change services under BAR oversight if
passed by the Legislature and signed by the Governor. AB 873
is sponsored by the Department of Consumer Affairs and seeks
to update what is considered a major and minor service under
BAR. If AB 873 is passed, it is possible that oil changes
may be considered a major service since performance of the
service has given rise to a high incidence of fraud or
deceptive practices (e.g. ongoing litigation with Attorney
General and Jiffy Lube). By re-categorizing oil changes as a
major repair, BAR would be able to take action against all
facilities that oversell oil services.
10.Arguments in Support. According to CALPIRG , "bringing oil
change shop recommendations in line with automaker
recommendations for oil change intervals would protect
consumers from this [unnecessary and costly oil changes]
deceptive and misleading practice."
SUPPORT AND OPPOSITION:
Support:
Californians Against Waste (Sponsor)
CALPIRG
Opposition:
None on file as of January 6, 2016.
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