BILL NUMBER: SB 916	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Correa
   (Principal coauthor: Senator Block)
   (Coauthor: Senator Galgiani)

                        JANUARY 27, 2014

   An act to add Section 12405 to, and to add Article 7.7 (commencing
with Section 10409.1) to Chapter 2 of Part 2 of Division 2 of, the
Public Contract Code, and to add Chapter 5.8 (commencing with Section
42359) to Part 3 of Division 30 of the Public Resources Code,
relating to biosynthetic lubricants.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 916, as introduced, Correa. Biosynthetic lubricants:
procurement: sale.
   (1) Existing law requires state agencies and contractors with
state agencies to purchase lubricating oil, as defined, and
industrial oil, as defined, containing the greatest percentage of
recycled oil, unless a specified certification is made. Existing law
also requires local agencies to purchase lubricating oil and
industrial oil that contains recycled oil if the product meets
specified conditions.
   This bill would require a state agency and any person or entity
contracting with, or receiving a grant from, a state agency that
purchases lubricating oil, on and after January 1, 2016, to purchase
only biosynthetic lubricant that meets or exceeds minimal standards
for biodegradability, as defined. The bill would require the
Department of General Services, by January 31, 2016, to provide
language for a state agency to include in a contract or grant
implementing these provisions. The bill would authorize a state
agency, city, county, city and county, or district to purchase
biosynthetic lubricant that meets or exceeds minimal standards for
biodegradability, as specified.
   (2) The California Oil Recycling Enhancement Act, administered by
the Department of Resources Recycling and Recovery, imposes a charge
upon the sale of lubricating oil, for deposit in the California Used
Oil Recycling Fund, and continuously appropriates money from the fund
to the department to provide, among other things, grants and
contracts to local governments, nonprofit entities, and private
entities and recycling incentives to every industrial generator,
curbside collection program, and certified used oil collection center
for collected or generated used lubricating oil. Existing law
prohibits the sale of engine oil and lubricating oil unless the
product conforms to certain specifications.
   This bill would prohibit on and after January 1, 2017, the sale of
lubricating oil in the state unless the lubricating oil meets
certain requirements, including meeting or exceeding the minimal
standards for biodegradability, as specified. The bill would
authorize, on and after January 1, 2016, the Director of Resources
Recycling and Recovery, in consultation with an advisory committee
established by the bill as specified, to grant a one-year extension
from these requirements if the director finds that the lubricating
oil is not commercially available. The bill would require the
department to inform local agencies and individuals of the benefits
of biosynthetic lubricating oils.
   (3) Existing law requires the Department of General Services, in
consultation with the California Environmental Protection Agency,
members of the public, industry, and public health and environmental
organizations, to provide state agencies with information and
assistance regarding environmentally preferable purchasing.
   This bill would require the Department of General Services to
maintain and update, on the department's Internet Web site, a list
that contains the names of lubricating oil products that meet or
exceed the minimal standards of biodegradability, as specified. The
bill would require the department to transmit a copy of this list to
the Office of the President of the University of California to
facilitate the University of California's procurement efforts.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) The United States Environmental Protection Agency (EPA) now
considers pollution from all diffuse sources, including urban
stormwater pollution, to be the most important source of
contamination in our nation's waters.
   (2) The EPA ranks urban runoff and storm sewer discharges as the
second most prevalent source of water quality impairment in our
nation's estuaries and the fourth most prevalent source of water
quality impairment in our lakes.
   (3) Although the effects of runoff on specific waters vary and are
often not fully assessed, pollutants carried by runoff are known to
have potentially harmful effects on drinking water supplies,
recreation, fisheries, and wildlife.
   (4) Among the pollutants in runoff are petroleum oil and oil
byproducts, which have been shown to contain harmful constituents,
including metals and polycyclic aromatic hydrocarbons.
   (5) Most of California's population lives in urban and coastal
areas where the water resources are highly vulnerable to, and are
often severely degraded by, urban runoff.
   (6) Polluted storm water poses risks to public health and the
ecology of local waterways.
   (7) A significant source of storm water pollution will be reduced
with the introduction of new technologies, such as biosynthetic
lubricants, that will improve water and air quality in the state and
reduce greenhouse gas (GHG) emissions.
   (8) Biosynthetic lubricants have shown GHG reductions of as much
as 88 percent, as compared to similar petroleum-based synthetic
lubricating oils.
   (9) Used motor oil is the largest volume of hazardous waste
generated in California, with approximately 150 million gallons of
motor oil purchased every year, generating over 90 million gallons of
used oil. However, only about 76 million gallons are actually
collected, and only about 10 to 12 million gallons are actually
rerefined into motor oil. Most of the used oil is shipped
out-of-state and burned as fuel, producing GHG emissions.
   (10) An estimated 14 to 16 million gallons of motor oil are
illegally dumped, ending up in rivers, streams, and lakes, degrading
drinking water supplies, and adding to storm water and coastal
pollution. The remaining gallons are lost in use, either burned in
the combustion chamber of an engine, or dripped onto streets and
parking lots, creating a "silent oil spill" of approximately 60
million gallons annually.
   (11) Technologies now exists to supply a high-performance,
biobased, biodegradable blend of lubricating oil for use in gasoline
and diesel engines in passenger cars, light-duty trucks, and vans.
These biosynthetic lubricating oils have performance qualities
similar to or superior than other synthetic lubricants, with added
environmental and public health benefits.
   (12) Independent testing shows not only that biosynthetic oils are
among the highest rated products for protecting engines and
machinery, thereby likely improving fuel efficiency, but they are
also biobased, biodegradable, and do not bioaccumulate in marine
organisms.
   (13) The United States Department of Agriculture's BioPreferred
Program, which imposes procurement preferences on federal agencies
and contractors for the purchase of biobased products, recently added
a preference for motor oil, for certain diesel and gasoline engines,
that have at least 25 percent biobased content.
   (14) Biosynthetic lubricating oils degrade more rapidly than
petroleum-based lubricants and are less toxic, thus greatly reducing
environmental and public health risks. Thus, these new technologies
will not only save the State of California and consumers money, but
will improve air and water quality and reduce GHG emissions.
   (15) Used motor oil that is recycled and rerefined into motor oil
can benefit from this new technology by blending the recycled oil
with high-performance, biobased, biodegradable products that have
greater environmental and public health benefits.
   (16) By increasing the content of biobased products in lubricating
oils, California taxpayers will benefit from lower costs of
complying with the federal Clean Water Act (33 U.S.C. Sec. 1251 et
seq.).
   (b) The Legislature further finds and declares all of the
following:
   (1) This act would implement a policy of the state to require
state agencies, when servicing fleet vehicles, to request the use of
biosynthetic lubricating oil, when available.
   (2) The use of biosynthetic lubricating oil, as provided by this
act, will further the state's policy of reducing the state fleet's
petroleum consumption and protecting the environment.
   (3) The use of biosynthetic lubricating oil, as provided by this
act, will help reduce overall petroleum consumption and aid the state
in achieving its goals of reducing GHG emissions.
   (4) Vehicles using synthetic and biosynthetic lubricating oils
require fewer oil changes, extending oil change intervals and thus
reducing the quantity of lubricating oil used over the life of the
vehicle.
   (5) While the cost of synthetic and biosynthetic lubricating oil
maybe higher than conventional motor oil, when balanced against the
longer oil change interval, using synthetic and biosynthetic oils
becomes less expensive in the long term.
   (6) The benefits of longer intervals between oil changes, the
reduced consumption of lubricating oil over the life of the vehicle,
improved fuel efficiency, the reduction in GHG emissions, and the
benefits to public health and the environment make biosynthetic
lubricating oil a cost-effective alternative to petroleum-based
lubricating oil.
  SEC. 2.  Article 7.7 (commencing with Section 10409.1) is added to
Chapter 2 of Part 2 of Division 2 of the Public Contract Code, to
read:

      Article 7.7.  Biosynthetic Lubricant Procurement


   10409.1.  The following definitions govern the construction of
this article:
   (a) "ASTM" means the American Society for Testing and Materials.
   (b) "Biobased content" means the amount of biobased carbon within
a biosynthetic lubricant, expressed as a percent of total weight
(mass) of the organic carbon within the product, as determined by
using the ASTM D6866-12 (standard test methods for determining the
biobased content of solid, liquid, and gaseous samples using
radiocarbon analysis), as that test method read on January 1, 2013.
   (c) "Biobased product" means a product that is any of the
following:
   (1) Composed, in whole or in significant part, of biological
products, including renewable agricultural materials, algae, and
forestry materials.
   (2) An intermediate ingredient or feedstock material or compound
made in whole or in significant part from biological products,
including renewable agricultural materials, including plant, animal,
and marine materials, including algae, or forestry materials, that
are subsequently used to make a more complex compound or product.
   (d) (1) "Biodegradable" means a substance that meets one of the
following requirements, under the conditions specified in paragraph
(2):
   (A) The substance can demonstrate the removal of at least 70
percent of dissolved organic carbon.
   (B) The substance produces at least 60 percent theoretical carbon
dioxide.
   (C) The substance consumes at least 60 percent of the theoretical
oxygen demand.
   (2) The substance meets the requirements specified in paragraph
(1) within 28 days of use, as determined under one of the following
test methods, as those test methods read on January 1, 2013:
   (A) OECD Test No. 301 A-F.
   (B) OECD Test No. 306.
   (C) OECD Test No. 310.
   (D) ASTM D5862-2006 standard test method.
   (E) ASTM D7373-2007 standard test method
   (e) "Biosynthetic lubricant" means a lubricating oil that contains
a biobased product.
   (f) "Lubricating oil" means oil intended for use in an internal
combustion gasoline or diesel engine used in passenger cars,
light-duty trucks, or vans.
    (g) "Minimal standards for biodegradability" means that the
amount of biobased content within the lubricating oil is not less
than 25 percent and that the biobased content is biodegradable.
    (h) "OECD" means the Organisation for Economic Co-operation and
Development.
   (i) "Procuring agency" means any state agency or any person or
entity contracting with, or receiving a grant from, that agency.
   10409.2.  (a) (1) On and after January 1, 2016, every procuring
agency that purchases lubricating oil shall only purchase
biosynthetic lubricant that meets or exceeds minimal standards for
biodegradability.
   (2) Before January 31, 2016, the Department of General Services
shall provide language for a state agency to include in a contract or
grant that implements the provisions of this subdivision.
   (b) On and after January 1, 2017, every procuring agency shall
purchase lubricating oil from a seller that is in compliance with
Section 42359.1 of the Public Resources Code.
   10409.3.  Notwithstanding any other law, when procuring
lubricating oil for gasoline or diesel engines used in passenger
cars, light trucks, and vans, a state agency, city, county, city and
county, and district, including a school district and a community
college district, may purchase biosynthetic lubricants that have a
biobased content that meets or exceeds minimal standards for
biodegradability.
  SEC. 3.  Section 12405 is added to the Public Contract Code, to
read:
   12405.  (a) The Department of General Services shall maintain and
update, on the department's "Buying Green" Internet Web site, a list
that contains the names of lubricating oil products that meet or
exceed the minimal standards for biodegradability, as defined in
Section 10409.1.
   (b) The Department of General Services shall transmit a copy of
the list described in subdivision (a) to the Office of the President
of the University of California to facilitate the University of
California's procurement efforts.
  SEC. 4.  Chapter 5.8 (commencing with Section 42359) is added to
Part 3 of Division 30 of the Public Resources Code, to read:
      CHAPTER 5.8.  BIOSYNTHETIC LUBRICANT


   42359.  The following definitions govern the construction of this
chapter:
   (a) "ASTM" means the American Society for Testing and Materials.
   (b) "Biobased content" means the amount of biobased carbon within
a biosynthetic lubricant, expressed as a percent of total weight
(mass) of the organic carbon within the product, as determined by
using the ASTM D6866-12 (standard test methods for determining the
biobased content of solid, liquid, and gaseous samples using
radiocarbon analysis), as that test method read on January 1, 2013.
   (c) "Biobased product" means a product that is any of the
following:
   (1) Composed, in whole or in significant part, of biological
products, including renewable agricultural materials, algae, and
forestry materials.
   (2) An intermediate ingredient or feedstock material or compound
made in whole or in significant part from biological products,
including renewable agricultural materials, including plant, animal,
and marine materials, including algae, or forestry materials, that
are subsequently used to make a more complex compound or product.
   (d) (1) "Biodegradable" means a substance that meets one of the
following requirements, under the conditions specified in paragraph
(2):
   (A) The substance can demonstrate the removal of at least 70
percent of dissolved organic carbon.
   (B) The substance produces at least 60 percent theoretical carbon
dioxide.
   (C) The substance consumes at least 60 percent of the theoretical
oxygen demand.
   (2) The substance meets the requirements specified in paragraph
(1) within 28 days of use, as determined under one of the following
test methods, as those test methods read on January 1, 2013:
   (A) OECD Test No. 301 A-F.
   (B) OECD Test No. 306.
   (C) OECD Test No. 310.
   (D) ASTM D5862-2006 standard test method.
   (E) ASTM D7373-2007 standard test method.
   (e) "Biosynthetic lubricant" means a lubricating oil that contains
a biobased product.
   (f) "Lubricating oil" means oil intended for use in an internal
combustion gasoline or diesel engine used in passenger cars,
light-duty trucks, or vans.
   (g) "Minimal standards for biodegradability" means that the amount
of biobased content within the lubricating oil is not less than 25
percent and that the biobased content is biodegradable.
   (h) "OECD" means the Organisation for Economic Co-operation and
Development.
   42359.1.  Notwithstanding Article 7 (commencing with Section
13460) of Chapter 14 of Division 5 of the Business and Professions
Code, on and after January 1, 2017, a person shall not sell
lubricating oil in the state unless the lubricating oil does both of
the following:
   (a) Meets or exceeds minimal standards for biodegradability, as
defined in Section 42359.
   (b) Is at the time of the sale certified for use by the American
Petroleum Institute's Engine Oil Licensing Certification System.
   42359.2.  On and after January 1, 2016, the director, in
consultation with the advisory committee established pursuant to
Section 42359.3, may grant a one-year delay of the requirements
imposed pursuant to Section 42359.1 if the director finds that the
lubricating oil is not commercially available in the state. In
deciding whether to grant or deny an extension, the director shall
consider, but shall not be bound by, the recommendation of the
advisory committee.
   42359.3.  The director shall establish an advisory committee of
nine members appointed by the director. The advisory committee, based
upon information submitted to the committee by lubricating oil
manufacturers, wholesalers, and retailers, shall consider and
recommend approval or denial of a delay pursuant to Section 42359.2.
The advisory committee shall include representation from the
petroleum industry, biosynthetic fuel and oil industry, automobile
manufacturers and servicing industry, local government storm water
management agencies, and public interest groups.
   42359.4.  The department, through the use of social media, shall
inform local agencies and individuals of the benefits of biosynthetic
lubricating oils and encourage the use of biosynthetic lubricants
for their fleets or vehicles.