Recycled Oil Preference

Requires government procurement to give preference to recycled
oils in the procurement process.

THE SENATE                              S.B. NO.           1464
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that petroleum is the
 2 major source of energy for Hawaii and will likely continue to be
 3 Hawaii's major energy source for many years.  While Hawaii has
 4 and always will continue to seek alternative sources of energy
 5 that safeguard our fragile and unique island environment the
 6 legislature realizes that the use of oil products will dominate
 7 the State's energy resources in the foreseeable future.
 8 Therefore, it remains in the State of Hawaii's best interest, as
 9 stated in the public procurement code in section 103D-1005,
10 Hawaii Revised Statutes, "to encourage the use of recycled
11 products, contracts shall be awarded to the lowest responsible
12 and responsive bidders, with preference being given to the
13 products containing recycled material."  Section 103D-1005(b),
14 Hawaii Revised Statutes, requires state purchasing agencies and
15 encourages county purchasing agencies to, "apply preference to
16 the purchase of products with recycled content before purchasing
17 products without any recycled content."  That subsection also
18 requires, "to the maximum extent economically feasible, the
19 purchase of materials that may be recycled or reused when

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 1 discarded, and to avoid the purchase of products deemed
 2 environmentally harmful."
 3      Sharing the concerns expressed in the previous provisions of
 4 the Hawaii Revised Statutes, other states such as Washington,
 5 Oregon, and California have already passed legislation that
 6 specifically requires state and county purchasing agencies to
 7 procure lubricating or industrial oil from the seller whose oil
 8 product contains the greater percentage of recycled oil.
 9      The purpose of this Act is to continue previous legislative
10 mandates to promote the use of recycled products by state and
11 county agencies.  Requiring that public contracts be awarded only
12 to vendors whose oil product contains the greatest percentage of
13 recycled oil will continue to protect our fragile environment.
14      SECTION 2.  Chapter 103D, Hawaii Revised Statutes, is
15 amended by adding a new part to be appropriately designated and
16 to read as follows:
18                         RECYCLED CONTENT
19      103D-A  Short title.  This part shall be referred to as the
20 "Recycled Oil Act".
21      103D-B  Definitions.  As used in this part:
22      "Industrial oil" means any compressor, turbine, or bearing
23 oil, hydraulic oil, metal working oil or refrigeration oil.

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                                     S.B. NO.           1464

 1      "Lubricating oil" means any oil intended for use in an
 2 internal combustion crankcase, transmission, gearbox or
 3 differential or an automobile, bus, truck, vessel, plane, train,
 4 heavy equipment, or machinery powered by an internal combustion
 5 engine.
 6      "Procuring agency" means any state or county agency or any
 7 person contracting with that agency in respect to work performed
 8 under a contract for lubricating oil, industrial oil or involves
 9 the use of lubricating oil or industrial oil.
10      "Recycled oil" means used oil that has been prepared for
11 reuse as a petroleum product by refining, reclaiming,
12 reprocessing or other means provided that the preparation or use
13 is operationally safe, environmentally sound and complies with
14 all laws, rules, and regulations.
15      "Virgin oil" means oil which has been refined from crude oil
16 and which has not been used or contaminated with impurities.
17      103D-C  Preference for oil products with greater recycled
18 content.  Notwithstanding any law to the contrary, any
19 procurement officer that purchases lubricating oil and industrial
20 oil under this chapter shall purchase the oil from the seller who
21 certifies the oil product containing the greatest percentage of
22 recycled oil.  The procurement office may purchase an oil product
23 containing a lower percentage of unrecycled oil provided that the

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 1 specific oil product containing recycled oil is:
 2      (1)  Not available within a reasonable period of time or in
 3           quantities necessary to meet an agency's needs;
 4      (2)  Not able to meet the performance requirements or
 5           standards recommended by the equipment or vehicle
 6           manufacturer, including any warranty requirements;
 7      (3)  Available only at a cost greater than the cost of
 8           comparable virgin oil products; or
 9      (4)  Likely to breach an existing warranty that requires the
10           purchase of virgin oil products for exclusive use in
11           vehicles whose warranties expressly prohibit the use of
12           products containing recycled oil.
13      103D-D  Affirmative program for procuring oils with
14 recycled content.(a)  Each chief procurement officer shall
15 establish and maintain an affirmative program for procuring oils
16 containing the maximum content of recycled oil.
17      (b)  An affirmative program shall include:
18      (1)  Placement of descriptions of the preference of recycled
19           oil products in publications used to solicit bids from
20           suppliers or vendors;
21      (2)  Descriptions of the recycled oil procurement program at
22           the bidders' conferences;
23      (3)  Discussion of the preference program in lubricating oil

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                                     S.B. NO.           1464

 1           and industrial oil procurement solicitations,
 2           invitations for bids, requests for proposals, or other
 3           solicitations for offers under this chapter; and
 4      (4)  Efforts to inform trade associations about the
 5           preference program."
 6      SECTION 3.  In codifying the new sections added by section 2
 7 of this Act, the revisor of statutes shall substitute appropriate
 8 section numbers for the letters used in the new sections
 9 designated in this Act.
10      SECTION 4.  New statutory material is underscored.
11      SECTION 5.  This Act shall take effect upon its approval.
13                              INTRODUCED BY:______________________