SF 2990

as introduced - 89th Legislature (2015 - 2016) Posted on 03/22/2016 09:08am

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.

[239.772] LUBRICATING OIL RENEWABLE CONTENT.

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms
have the meanings given.

(b) "ASTM" means the American Society for Testing and Materials.

(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. The product 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.

(d) "Biodegradable" means:

(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:

(i) OECD Test No. 301 A-F;

(ii) OECD Test No. 306;

(iii) OECD Test No. 310;

(iv) ASTM D5864-2006 standard test method; or

(v) ASTM D7373-2007 standard test method; and

(2) the substance:

(i) can demonstrate the removal of at least 70 percent of dissolved organic carbon;

(ii) produces at least 60 percent theoretical carbon dioxide; or

(iii) consumes at least 60 percent of the theoretical oxygen demand.

(e) "Renewable lubricating oil" means lubricating oil that consists of a biobased
content.

(f) "Lubricating oil" means oil intended for use in passenger cars, light-duty trucks,
or vans.

(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.

(h) "OECD" means the Organization for Economic Co-operation and Development.

Subd. 2.

Renewable lubricating oil requirements.

(a) A person shall not sell
lubricating oil in this state unless the lubricating oil meets the following requirements:

(1) the lubricating oil meets or exceeds the minimal federal standards for
biodegradability; and

(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.

(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.

(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
inadequate manufacturing infrastructure for renewable lubricating oil does not exist and
would negatively impact renewable lubricating oil quality and cause economic disruption.

Subd. 3.

Exemptions.

(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 a calendar year in this state do not exceed $1,000,000.

(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 a calendar year.

(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.

EFFECTIVE DATE.

This section is effective January 1, 2020.