H.F. 2397 Section 1. Section 8A.311, subsection 14, paragraph b, Code 1 2016, is amended to read as follows: 2 b. The procurement by state agencies of biobased hydraulic 3 fluids, greases, and other industrial lubricants manufactured 4 from soybeans in accordance with the requirements of section 5 8A.316 . 6 Sec. 2. Section 8A.316, Code 2016, is amended to read as 7 follows: 8 8A.316 Lubricants and oils Industrial lubricants —— 9 preferences. 10 The department shall do all of the following: 11 1. Develop its procedures and specifications for the 12 purchase of lubricating oil and industrial oil lubricants to 13 eliminate exclusion of recycled oils and any requirement that 14 oils be manufactured from virgin materials any such products 15 composed of biobased materials . 16 2. Require that purchases of lubricating oil and industrial 17 oil lubricants be made from the seller whose oil product 18 contains the greatest percentage of recycled oil or biobased 19 materials , unless one of the following circumstances regarding 20 a specific oil product containing recycled oil or biobased 21 materials exists: 22 a. The product is not available within a reasonable period 23 of time or in quantities necessary or in container sizes 24 appropriate to meet a state agency’s needs. 25 b. The product does not meet the performance requirements or 26 standards recommended by the equipment or vehicle manufacturer, 27 including any warranty requirements. 28 c. The product is available only at a cost greater than one 29 hundred five percent of the cost of comparable virgin oil or 30 nonbiobased products on a life cycle cost basis, taking into 31 account the frequency of oil changes or drain intervals, fuel 32 economy benefits, engine durability, and other performance 33 benefits of the specific product . 34 3. Establish and maintain a preference biopreferred 35 -1- LSB 5455HV (3) 86 gh/sc 1/ 6

H.F. 2397 procurement program for procuring oils industrial lubricants 1 containing the maximum content of recycled oil or biobased 2 materials in biobased products . The preference biopreferred 3 procurement program shall include but is not limited to all of 4 the following: 5 a. The inclusion of the preferences for recycled oil or 6 biobased products in publications used to solicit bids from 7 suppliers. 8 b. The provision of a description of the recycled oil 9 procurement program at bidders’ conferences. 10 c. Discussion of the preference procurement program in 11 lubricating oil and industrial oil lubricant procurement 12 solicitations or invitations to bid. 13 d. Efforts to inform industry trade associations about the 14 preference procurement program. 15 4. a. Provide that when purchasing hydraulic fluids, 16 greases, and other industrial lubricants, the department or a 17 state agency authorized by the department to directly purchase 18 hydraulic fluids, greases, and other industrial lubricants 19 shall give preference to purchasing biobased hydraulic fluids, 20 greases, and other industrial lubricants manufactured from 21 recycled oil or biobased products, with additional preference 22 given to biobased products derived from soybeans. 23 b. Provide for the implementation of requirements necessary 24 in order to carry out this subsection by the department or 25 state agency making the purchase, which shall include all of 26 the following: 27 (1) Including the preference requirements in publications 28 used to solicit bids for hydraulic fluids, greases, and other 29 industrial lubricants. 30 (2) Describing the preference requirements at bidders’ 31 conferences in which bids for the sale of hydraulic fluids, 32 greases, and other industrial lubricants are sought by the 33 department or authorized state agency. 34 (3) Discussing the preference requirements in procurement 35 -2- LSB 5455HV (3) 86 gh/sc 2/ 6

H.F. 2397 solicitations or invitations to bid for hydraulic fluids, 1 greases, and other industrial lubricants. 2 (4) Informing industry trade associations about the 3 preference requirements. 4 c. As used in this subsection , unless the context otherwise 5 requires: 6 (1) “Biobased hydraulic fluids, greases, and other industrial 7 lubricants” material” means the same as defined by the United 8 States department of agriculture, if the department has 9 adopted such a definition. If the United States department of 10 agriculture has not adopted a definition, “biobased hydraulic 11 fluids, greases, and other industrial lubricants” means hydraulic 12 fluids, greases, and other lubricants containing a minimum of 13 fifty-one percent soybean oil the same as defined in section 14 8A.317 . 15 (2) “Other industrial lubricants” “Biobased product” means 16 lubricants used or applied to machinery the same as defined by 17 the United States department of agriculture . 18 (3) “Industrial lubricant” means industrial oil, automotive 19 engine oil, and any other lubricating oil used or applied to 20 machinery. 21 Sec. 3. Section 8A.317, subsection 3, Code 2016, is amended 22 to read as follows: 23 3. This section Subsection 2 does not apply to a biobased 24 product which is subject to requirements for procurement in 25 another provision of this chapter including but not limited to 26 any of the following: 27 a. Soybean-based ink as provided in section 8A.315 . 28 b. Degradable loose foam packing material manufactured 29 from grain starches or other renewable resources as provided 30 in section 8A.315 . 31 c. A biobased hydraulic fluid, grease, or other An 32 industrial lubricant as provided in section 8A.316 . 33 Sec. 4. Section 216B.3, subsection 17, Code 2016, is amended 34 to read as follows: 35 -3- LSB 5455HV (3) 86 gh/sc 3/ 6

H.F. 2397 17. Comply with the requirements for the purchase of 1 lubricating oils, industrial oils, greases, and hydraulic 2 fluids industrial lubricants as established pursuant to section 3 8A.316 . 4 Sec. 5. Section 260C.19B, Code 2016, is amended to read as 5 follows: 6 260C.19B Purchase of biobased hydraulic fluids, greases, and 7 other industrial lubricants. 8 Hydraulic fluids, greases, and other industrial Industrial 9 lubricants purchased by or used under the direction of the 10 board of directors to provide services to a merged area shall 11 be purchased in compliance with the preference requirements 12 for purchasing biobased hydraulic fluids, greases, and other 13 industrial lubricants as provided pursuant to section 8A.316 . 14 Sec. 6. Section 262.9, subsection 7, Code 2016, is amended 15 to read as follows: 16 7. Purchase and use recycled printing and writing paper, 17 with the exception of specialized paper when no recyclable 18 product is available, in accordance with the schedule 19 established in section 8A.315 ; establish a wastepaper 20 recycling program for all institutions governed by the board 21 in accordance with recommendations made by the department of 22 natural resources and the requirements of section 8A.329 ; 23 shall, in accordance with the requirements of section 8A.311 , 24 require product content statements and compliance with 25 requirements regarding procurement specifications; and shall 26 comply with the requirements for the purchase of lubricating 27 oils and industrial oils industrial lubricants as established 28 pursuant to section 8A.316 . 29 Sec. 7. Section 262.25B, Code 2016, is amended to read as 30 follows: 31 262.25B Purchase of biobased hydraulic fluids, greases, and 32 other industrial lubricants. 33 The state board of regents and institutions under the 34 control of the board purchasing hydraulic fluids, greases, and 35 -4- LSB 5455HV (3) 86 gh/sc 4/ 6

H.F. 2397 other industrial lubricants shall give preference to purchasing 1 biobased hydraulic fluids, greases, and other industrial 2 lubricants as provided in section 8A.316 . 3 Sec. 8. Section 307.21, subsection 2, paragraph d, Code 4 2016, is amended to read as follows: 5 d. Comply with the requirements for the purchase of 6 lubricating oils, industrial oils, greases, and hydraulic 7 fluids industrial lubricants as established pursuant to section 8 8A.316 . 9 Sec. 9. Section 904.312B, Code 2016, is amended to read as 10 follows: 11 904.312B Purchase of biobased hydraulic fluids, greases, and 12 other industrial lubricants. 13 The department when purchasing hydraulic fluids, greases, 14 and other industrial lubricants shall give preference to 15 purchasing biobased hydraulic fluids, greases, and other 16 industrial lubricants as provided in section 8A.316 . 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill makes changes relating to the requirement that 21 the department of administrative services (DAS) establish a 22 preference for the purchase of industrial lubricants by state 23 agencies and community colleges. 24 Current Code section 8A.316 requires DAS to develop 25 procedures for purchasing lubricating oil without excluding 26 recycled oils in such products and to require purchases 27 of lubricating oil made from the greatest percentage of 28 recycled oil, unless the product is unavailable, does not 29 meet performance requirements, or is available only at a cost 30 greater than 105 percent of the cost of nonrecycled products. 31 Current Code section 8A.316 also requires DAS to establish a 32 preference for purchasing hydraulic fluids, greases, and other 33 industrial lubricants made from soybeans. 34 The bill removes all references to the terms “lubricating 35 -5- LSB 5455HV (3) 86 gh/sc 5/ 6

H.F. 2397 oil and industrial oil” and “hydraulic fluids, greases, and 1 other industrial lubricants” and uniformly applies the term 2 “industrial lubricants”, which the bill defines as industrial 3 oil, automotive engine oil, and any other lubricating oil used 4 or applied to machinery. The bill makes conforming amendments 5 relating to this terminology change. 6 The bill requires DAS to develop procedures for purchasing 7 industrial lubricants without the exclusion of recycled oils 8 and products composed of biobased materials, as defined in the 9 bill, and to require purchases of industrial lubricants that 10 contain the greatest percentage of recycled oil or biobased 11 materials. The bill modifies the exception for purchasing 12 products that are only available at a cost greater than 105 13 percent of the cost of comparable products to provide that 14 the comparison is on a life cycle cost basis, as described in 15 the bill. The bill also modifies the requirement that DAS 16 establish and maintain a procurement program for procuring 17 industrial lubricants containing the maximum content of 18 recycled oil or biobased materials in biobased products, with 19 additional preference given to biobased products derived from 20 soybeans, rather than the current law requirement that they 21 contain soybean oil. 22 -6- LSB 5455HV (3) 86 gh/sc 6/ 6