HF 2397 (LSB 5455HV (3) 86)

HOUSE FILE 2397

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO HSB 555)

A BILL FOR

An Act relating to the purchasing preference requirements for the purchase of industrial lubricants by state agencies and community colleges.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8A.311, subsection 14, paragraph b, Code 2016, is amended to read as follows:
   b.  The procurement by state agencies of biobased hydraulic fluids, greases, and other industrial lubricants manufactured from soybeans in accordance with the requirements of section 8A.316.
    Sec. 2.  Section 8A.316, Code 2016, is amended to read as follows:
   8A.316  Lubricants and oils Industrial lubricants —— preferences.
   The department shall do all of the following:
   1.  Develop its procedures and specifications for the purchase of lubricating oil and industrial oil lubricants to eliminate exclusion of recycled oils and any requirement that oils be manufactured from virgin materials any such products composed of biobased materials.
   2.  Require that purchases of lubricating oil and industrial oil lubricants be made from the seller whose oil product contains the greatest percentage of recycled oil or biobased materials, unless one of the following circumstances regarding a specific oil product containing recycled oil or biobased materials exists:
   a.  The product is not available within a reasonable period of time or in quantities necessary or in container sizes appropriate to meet a state agency’s needs.
   b.  The product does not meet the performance requirements or standards recommended by the equipment or vehicle manufacturer, including any warranty requirements.
   c.  The product is available only at a cost greater than one hundred five percent of the cost of comparable virgin oil or nonbiobased products on a life cycle cost basis, taking into account the frequency of oil changes or drain intervals, fuel economy benefits, engine durability, and other performance benefits of the specific product.
   3.  Establish and maintain a preference biopreferred procurement program for procuring oils industrial lubricants containing the maximum content of recycled oil or biobased materials in biobased products. The preference biopreferred procurement program shall include but is not limited to all of the following:
   a.  The inclusion of the preferences for recycled oil or biobased products in publications used to solicit bids from suppliers.
   b.  The provision of a description of the recycled oil procurement program at bidders’ conferences.
   c.  Discussion of the preference procurement program in lubricating oil and industrial oil lubricant procurement solicitations or invitations to bid.
   d.  Efforts to inform industry trade associations about the preference procurement program.
   4.  a.  Provide that when purchasing hydraulic fluids, greases, and other industrial lubricants, the department or a state agency authorized by the department to directly purchase hydraulic fluids, greases, and other industrial lubricants shall give preference to purchasing biobased hydraulic fluids, greases, and other industrial lubricants manufactured from recycled oil or biobased products, with additional preference given to biobased products derived from soybeans.
   b.  Provide for the implementation of requirements necessary in order to carry out this subsection by the department or state agency making the purchase, which shall include all of the following:
   (1)  Including the preference requirements in publications used to solicit bids for hydraulic fluids, greases, and other industrial lubricants.
   (2)  Describing the preference requirements at bidders’ conferences in which bids for the sale of hydraulic fluids, greases, and other industrial lubricants are sought by the department or authorized state agency.
   (3)  Discussing the preference requirements in procurement solicitations or invitations to bid for hydraulic fluids, greases, and other industrial lubricants.
   (4)  Informing industry trade associations about the preference requirements.
   c.  As used in this subsection, unless the context otherwise requires:
   (1)  “Biobased hydraulic fluids, greases, and other industrial lubricants” material” means the same as defined by the United States department of agriculture, if the department has adopted such a definition. If the United States department of agriculture has not adopted a definition,  “biobased hydraulic fluids, greases, and other industrial lubricants” means hydraulic fluids, greases, and other lubricants containing a minimum of fifty-one percent soybean oil the same as defined in section 8A.317.
   (2)  “Other industrial lubricants” “Biobased product” means lubricants used or applied to machinery the same as defined by the United States department of agriculture.
   (3)  “Industrial lubricant” means industrial oil, automotive engine oil, and any other lubricating oil used or applied to machinery. 
    Sec. 3.  Section 8A.317, subsection 3, Code 2016, is amended to read as follows:
   3.  This section Subsection 2 does not apply to a biobased product which is subject to requirements for procurement in another provision of this chapter including but not limited to any of the following:
   a.  Soybean-based ink as provided in section 8A.315.
   b.  Degradable loose foam packing material manufactured from grain starches or other renewable resources as provided in section 8A.315.
   c.  A biobased hydraulic fluid, grease, or other An industrial lubricant as provided in section 8A.316.
    Sec. 4.  Section 216B.3, subsection 17, Code 2016, is amended to read as follows:
   17.  Comply with the requirements for the purchase of lubricating oils, industrial oils, greases, and hydraulic fluids industrial lubricants as established pursuant to section 8A.316.
    Sec. 5.  Section 260C.19B, Code 2016, is amended to read as follows:
   260C.19B  Purchase of biobased hydraulic fluids, greases, and other industrial lubricants.
   Hydraulic fluids, greases, and other industrial Industrial lubricants purchased by or used under the direction of the board of directors to provide services to a merged area shall be purchased in compliance with the preference requirements for purchasing biobased hydraulic fluids, greases, and other industrial lubricants as provided pursuant to section 8A.316.
    Sec. 6.  Section 262.9, subsection 7, Code 2016, is amended to read as follows:
   7.  Purchase and use recycled printing and writing paper, with the exception of specialized paper when no recyclable product is available, in accordance with the schedule established in section 8A.315; establish a wastepaper recycling program for all institutions governed by the board in accordance with recommendations made by the department of natural resources and the requirements of section 8A.329; shall, in accordance with the requirements of section 8A.311, require product content statements and compliance with requirements regarding procurement specifications; and shall comply with the requirements for the purchase of lubricating oils and industrial oils industrial lubricants as established pursuant to section 8A.316.
    Sec. 7.  Section 262.25B, Code 2016, is amended to read as follows:
   262.25B  Purchase of biobased hydraulic fluids, greases, and other industrial lubricants.
   The state board of regents and institutions under the control of the board purchasing hydraulic fluids, greases, and other industrial lubricants shall give preference to purchasing biobased hydraulic fluids, greases, and other industrial lubricants as provided in section 8A.316.
    Sec. 8.  Section 307.21, subsection 2, paragraph d, Code 2016, is amended to read as follows:
   d.  Comply with the requirements for the purchase of lubricating oils, industrial oils, greases, and hydraulic fluids industrial lubricants as established pursuant to section 8A.316.
    Sec. 9.  Section 904.312B, Code 2016, is amended to read as follows:
   904.312B  Purchase of biobased hydraulic fluids, greases, and other industrial lubricants.
   The department when purchasing hydraulic fluids, greases, and other industrial lubricants shall give preference to purchasing biobased hydraulic fluids, greases, and other industrial lubricants as provided in section 8A.316.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill makes changes relating to the requirement that the department of administrative services (DAS) establish a preference for the purchase of industrial lubricants by state agencies and community colleges.
   Current Code section 8A.316 requires DAS to develop procedures for purchasing lubricating oil without excluding recycled oils in such products and to require purchases of lubricating oil made from the greatest percentage of recycled oil, unless the product is unavailable, does not meet performance requirements, or is available only at a cost greater than 105 percent of the cost of nonrecycled products. Current Code section 8A.316 also requires DAS to establish a preference for purchasing hydraulic fluids, greases, and other industrial lubricants made from soybeans.
   The bill removes all references to the terms “lubricating oil and industrial oil” and “hydraulic fluids, greases, and other industrial lubricants” and uniformly applies the term “industrial lubricants”, which the bill defines as industrial oil, automotive engine oil, and any other lubricating oil used or applied to machinery. The bill makes conforming amendments relating to this terminology change.
   The bill requires DAS to develop procedures for purchasing industrial lubricants without the exclusion of recycled oils and products composed of biobased materials, as defined in the bill, and to require purchases of industrial lubricants that contain the greatest percentage of recycled oil or biobased materials. The bill modifies the exception for purchasing products that are only available at a cost greater than 105 percent of the cost of comparable products to provide that the comparison is on a life cycle cost basis, as described in the bill. The bill also modifies the requirement that DAS establish and maintain a procurement program for procuring industrial lubricants containing the maximum content of recycled oil or biobased materials in biobased products, with additional preference given to biobased products derived from soybeans, rather than the current law requirement that they contain soybean oil.