HF 3125

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 03/24/2016 04:30pm

A bill for an act
relating to renewable resources; establishing a renewable standard for certain
lubricating oils; proposing coding for new law in Minnesota Statutes, chapter 239.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [239.772] LUBRICATING OIL RENEWABLE CONTENT.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given.
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new text begin (b) "ASTM" means the American Society for Testing and Materials.
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new text begin (c) "Biobased content" means the amount of biobased carbon within a lubricating
oil, expressed as a percent of total weight of the organic carbon within the product, as
determined by using the ASTM D6866-12, the 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. Biobased content may be: (1) composed, in whole
or in significant part, of biological products, including renewable agricultural materials,
algae, or forestry materials; or (2) an intermediate ingredient or feedstock material or
compound made in whole or in significant part from biological products, including
renewable agricultural materials; plant, animal, or marine materials; algae; or forestry
materials, that are subsequently used to make a more complex compound or product.
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new text begin (d) "Biodegradable" means:
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new text begin (1) a substance that, within 28 days of use, meets one of the requirements under
clause (2), as determined under one of the following test methods, as those test methods
read on January 1, 2013:
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new text begin (i) OECD Test No. 301 A-F;
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new text begin (ii) OECD Test No. 306;
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new text begin (iii) OECD Test No. 310;
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new text begin (iv) ASTM D5864-2006 standard test method; or
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new text begin (v) ASTM D7373-2007 standard test method; and
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new text begin (2) the substance:
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new text begin (i) can demonstrate the removal of at least 70 percent of dissolved organic carbon;
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new text begin (ii) produces at least 60 percent theoretical carbon dioxide; or
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new text begin (iii) consumes at least 60 percent of the theoretical oxygen demand.
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new text begin (e) "Renewable lubricating oil" means lubricating oil that consists of a biobased
content.
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new text begin (f) "Lubricating oil" means oil intended for use in passenger cars, light-duty trucks,
or vans.
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new text begin (g) "Minimal federal standards for biodegradability" means that the amount of
biobased content within the lubricating oil is not less than 25 percent and the biobased
content is biodegradable.
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new text begin (h) "OECD" means the Organization for Economic Co-operation and Development.
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new text begin Subd. 2. new text end

new text begin Renewable lubricating oil requirements. new text end

new text begin (a) A person shall not sell
lubricating oil in this state unless the lubricating oil meets the following requirements:
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new text begin (1) the lubricating oil meets or exceeds the minimal federal standards for
biodegradability; and
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new text begin (2) at the time of the sale, the lubricating oil is certified to meet current automotive
industry standards by the American Petroleum Institute's Engine Oil Licensing and
Certification System or another comparable certification program.
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new text begin (b) The commissioner of commerce shall determine the market price of lubricating
oil and the market price of renewable lubricating oil at various locations throughout the
region. The commissioner shall report market price differences to the governor. The
report must also include an analysis of the life-cycle of renewable lubricating oil and
other lubricating oil and oil-drain intervals, fuel economy benefits, engine durability, and
other performance benefits of renewable lubricating oil and other lubricating oil. The
governor, after consultation with the commissioners of commerce and agriculture, may
by executive order reduce the minimum requirement for biobased content in renewable
lubricating oils to a lower percentage than is required under the minimal federal standards
for biodegradability if a price disparity reported by the commissioner is likely to cause
economic hardship to retailers of renewable lubricating oil in the state. Any adjustment
must be for a specified period of time, after which the percentage of renewable lubricating
oil shall return to the amount required under this subdivision. The governor shall not
reduce the renewable lubricating oil mandate to less than five percent.
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new text begin (c) The commissioner of commerce may temporarily suspend the renewable
lubricating oil minimum content requirement under this subdivision if the commissioner
determines that a sufficient supply of renewable lubricating oil is not available or adequate
manufacturing infrastructure for renewable lubricating oil does not exist and would
negatively impact renewable lubricating oil quality and cause economic disruption.
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new text begin Subd. 3. new text end

new text begin Exemptions. new text end

new text begin (a) A lubricating oil manufacturer is exempt from the
renewable lubricating oil minimum requirements under subdivision 2 if the manufacturer's
gross sales of all lubricating oil in the previous calendar year in this state do not exceed
$1,000,000.
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new text begin (b) A specialty lubricating oil is exempt from subdivision 2 if the gross sales of the
specialty lubricating oil do not exceed $100,000 in the previous calendar year.
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new text begin (c) A lubricating oil is exempt from subdivision 2 until January 1, 2022, if that
product was on the premises of a retail outlet for point-of-sale purchases by July 1, 2019.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
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