Bill Text: IA HF2397 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act relating to the purchasing preference requirements for the purchase of industrial lubricants by state agencies and community colleges. (Formerly HSB 555)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2016-03-11 - Rereferred to Commerce. H.J. 456. [HF2397 Detail]

Download: Iowa-2015-HF2397-Introduced.html

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House File 2397 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON COMMERCE

                                 (SUCCESSOR TO HSB 555)

                                      A BILL FOR

  1 An Act relating to the purchasing preference requirements for
  2    the purchase of industrial lubricants by state agencies and
  3    community colleges.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5455HV (3) 86
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PAG LIN



  1  1    Section 1.  Section 8A.311, subsection 14, paragraph b, Code
  1  2 2016, is amended to read as follows:
  1  3    b.  The procurement by state agencies of biobased hydraulic
  1  4 fluids, greases, and other industrial lubricants manufactured
  1  5 from soybeans in accordance with the requirements of section
  1  6 8A.316.
  1  7    Sec. 2.  Section 8A.316, Code 2016, is amended to read as
  1  8 follows:
  1  9    8A.316  Lubricants and oils Industrial lubricants ====
  1 10 preferences.
  1 11    The department shall do all of the following:
  1 12    1.  Develop its procedures and specifications for the
  1 13 purchase of lubricating oil and industrial oil lubricants to
  1 14 eliminate exclusion of recycled oils and any requirement that
  1 15 oils be manufactured from virgin materials any such products
  1 16 composed of biobased materials.
  1 17    2.  Require that purchases of lubricating oil and industrial
  1 18 oil lubricants be made from the seller whose oil product
  1 19 contains the greatest percentage of recycled oil or biobased
  1 20 materials, unless one of the following circumstances regarding
  1 21 a specific oil product containing recycled oil or biobased
  1 22 materials exists:
  1 23    a.  The product is not available within a reasonable period
  1 24 of time or in quantities necessary or in container sizes
  1 25 appropriate to meet a state agency's needs.
  1 26    b.  The product does not meet the performance requirements or
  1 27 standards recommended by the equipment or vehicle manufacturer,
  1 28 including any warranty requirements.
  1 29    c.  The product is available only at a cost greater than one
  1 30 hundred five percent of the cost of comparable virgin oil or
  1 31 nonbiobased products on a life cycle cost basis, taking into
  1 32 account the frequency of oil changes or drain intervals, fuel
  1 33 economy benefits, engine durability, and other performance
  1 34 benefits of the specific product.
  1 35    3.  Establish and maintain a preference biopreferred
  2  1 procurement program for procuring oils industrial lubricants
  2  2  containing the maximum content of recycled oil or biobased
  2  3 materials in biobased products. The preference biopreferred
  2  4 procurement program shall include but is not limited to all of
  2  5 the following:
  2  6    a.  The inclusion of the preferences for recycled oil or
  2  7  biobased products in publications used to solicit bids from
  2  8 suppliers.
  2  9    b.  The provision of a description of the recycled oil
  2 10  procurement program at bidders' conferences.
  2 11    c.  Discussion of the preference procurement program in
  2 12 lubricating oil and industrial oil lubricant procurement
  2 13 solicitations or invitations to bid.
  2 14    d.  Efforts to inform industry trade associations about the
  2 15 preference procurement program.
  2 16    4.  a.  Provide that when purchasing hydraulic fluids,
  2 17 greases, and other industrial lubricants, the department or a
  2 18 state agency authorized by the department to directly purchase
  2 19 hydraulic fluids, greases, and other industrial lubricants
  2 20 shall give preference to purchasing biobased hydraulic fluids,
  2 21 greases, and other industrial lubricants manufactured from
  2 22 recycled oil or biobased products, with additional preference
  2 23 given to biobased products derived from soybeans.
  2 24    b.  Provide for the implementation of requirements necessary
  2 25 in order to carry out this subsection by the department or
  2 26 state agency making the purchase, which shall include all of
  2 27 the following:
  2 28    (1)  Including the preference requirements in publications
  2 29 used to solicit bids for hydraulic fluids, greases, and other
  2 30  industrial lubricants.
  2 31    (2)  Describing the preference requirements at bidders'
  2 32 conferences in which bids for the sale of hydraulic fluids,
  2 33 greases, and other industrial lubricants are sought by the
  2 34 department or authorized state agency.
  2 35    (3)  Discussing the preference requirements in procurement
  3  1 solicitations or invitations to bid for hydraulic fluids,
  3  2 greases, and other industrial lubricants.
  3  3    (4)  Informing industry trade associations about the
  3  4 preference requirements.
  3  5    c.  As used in this subsection, unless the context otherwise
  3  6 requires:
  3  7    (1)  "Biobased hydraulic fluids, greases, and other industrial
  3  8 lubricants" material" means the same as defined by the United
  3  9 States department of agriculture, if the department has
  3 10 adopted such a definition. If the United States department of
  3 11 agriculture has not adopted a definition,  "biobased hydraulic
  3 12 fluids, greases, and other industrial lubricants" means hydraulic
  3 13 fluids, greases, and other lubricants containing a minimum of
  3 14 fifty=one percent soybean oil the same as defined in section
  3 15 8A.317.
  3 16    (2)  "Other industrial lubricants" "Biobased product" means
  3 17 lubricants used or applied to machinery the same as defined by
  3 18 the United States department of agriculture.
  3 19    (3)  "Industrial lubricant" means industrial oil, automotive
  3 20 engine oil, and any other lubricating oil used or applied to
  3 21 machinery. 
  3 22    Sec. 3.  Section 8A.317, subsection 3, Code 2016, is amended
  3 23 to read as follows:
  3 24    3.  This section Subsection 2 does not apply to a biobased
  3 25 product which is subject to requirements for procurement in
  3 26 another provision of this chapter including but not limited to
  3 27 any of the following:
  3 28    a.  Soybean=based ink as provided in section 8A.315.
  3 29    b.  Degradable loose foam packing material manufactured
  3 30 from grain starches or other renewable resources as provided
  3 31 in section 8A.315.
  3 32    c.  A biobased hydraulic fluid, grease, or other An
  3 33  industrial lubricant as provided in section 8A.316.
  3 34    Sec. 4.  Section 216B.3, subsection 17, Code 2016, is amended
  3 35 to read as follows:
  4  1    17.  Comply with the requirements for the purchase of
  4  2 lubricating oils, industrial oils, greases, and hydraulic
  4  3 fluids industrial lubricants as established pursuant to section
  4  4 8A.316.
  4  5    Sec. 5.  Section 260C.19B, Code 2016, is amended to read as
  4  6 follows:
  4  7    260C.19B  Purchase of biobased hydraulic fluids, greases, and
  4  8 other industrial lubricants.
  4  9    Hydraulic fluids, greases, and other industrial Industrial
  4 10  lubricants purchased by or used under the direction of the
  4 11 board of directors to provide services to a merged area shall
  4 12 be purchased in compliance with the preference requirements
  4 13 for purchasing biobased hydraulic fluids, greases, and other
  4 14  industrial lubricants as provided pursuant to section 8A.316.
  4 15    Sec. 6.  Section 262.9, subsection 7, Code 2016, is amended
  4 16 to read as follows:
  4 17    7.  Purchase and use recycled printing and writing paper,
  4 18 with the exception of specialized paper when no recyclable
  4 19 product is available, in accordance with the schedule
  4 20 established in section 8A.315; establish a wastepaper
  4 21 recycling program for all institutions governed by the board
  4 22 in accordance with recommendations made by the department of
  4 23 natural resources and the requirements of section 8A.329;
  4 24 shall, in accordance with the requirements of section 8A.311,
  4 25 require product content statements and compliance with
  4 26 requirements regarding procurement specifications; and shall
  4 27 comply with the requirements for the purchase of lubricating
  4 28 oils and industrial oils industrial lubricants as established
  4 29 pursuant to section 8A.316.
  4 30    Sec. 7.  Section 262.25B, Code 2016, is amended to read as
  4 31 follows:
  4 32    262.25B  Purchase of biobased hydraulic fluids, greases, and
  4 33 other industrial lubricants.
  4 34    The state board of regents and institutions under the
  4 35 control of the board purchasing hydraulic fluids, greases, and
  5  1 other industrial lubricants shall give preference to purchasing
  5  2 biobased hydraulic fluids, greases, and other industrial
  5  3 lubricants as provided in section 8A.316.
  5  4    Sec. 8.  Section 307.21, subsection 2, paragraph d, Code
  5  5 2016, is amended to read as follows:
  5  6    d.  Comply with the requirements for the purchase of
  5  7 lubricating oils, industrial oils, greases, and hydraulic
  5  8 fluids industrial lubricants as established pursuant to section
  5  9 8A.316.
  5 10    Sec. 9.  Section 904.312B, Code 2016, is amended to read as
  5 11 follows:
  5 12    904.312B  Purchase of biobased hydraulic fluids, greases, and
  5 13 other industrial lubricants.
  5 14    The department when purchasing hydraulic fluids, greases,
  5 15 and other industrial lubricants shall give preference to
  5 16 purchasing biobased hydraulic fluids, greases, and other
  5 17  industrial lubricants as provided in section 8A.316.
  5 18                           EXPLANATION
  5 19 The inclusion of this explanation does not constitute agreement with
  5 20 the explanation's substance by the members of the general assembly.
  5 21    This bill makes changes relating to the requirement that
  5 22 the department of administrative services (DAS) establish a
  5 23 preference for the purchase of industrial lubricants by state
  5 24 agencies and community colleges.
  5 25    Current Code section 8A.316 requires DAS to develop
  5 26 procedures for purchasing lubricating oil without excluding
  5 27 recycled oils in such products and to require purchases
  5 28 of lubricating oil made from the greatest percentage of
  5 29 recycled oil, unless the product is unavailable, does not
  5 30 meet performance requirements, or is available only at a cost
  5 31 greater than 105 percent of the cost of nonrecycled products.
  5 32 Current Code section 8A.316 also requires DAS to establish a
  5 33 preference for purchasing hydraulic fluids, greases, and other
  5 34 industrial lubricants made from soybeans.
  5 35    The bill removes all references to the terms "lubricating
  6  1 oil and industrial oil" and "hydraulic fluids, greases, and
  6  2 other industrial lubricants" and uniformly applies the term
  6  3 "industrial lubricants", which the bill defines as industrial
  6  4 oil, automotive engine oil, and any other lubricating oil used
  6  5 or applied to machinery. The bill makes conforming amendments
  6  6 relating to this terminology change.
  6  7    The bill requires DAS to develop procedures for purchasing
  6  8 industrial lubricants without the exclusion of recycled oils
  6  9 and products composed of biobased materials, as defined in the
  6 10 bill, and to require purchases of industrial lubricants that
  6 11 contain the greatest percentage of recycled oil or biobased
  6 12 materials. The bill modifies the exception for purchasing
  6 13 products that are only available at a cost greater than 105
  6 14 percent of the cost of comparable products to provide that
  6 15 the comparison is on a life cycle cost basis, as described in
  6 16 the bill. The bill also modifies the requirement that DAS
  6 17 establish and maintain a procurement program for procuring
  6 18 industrial lubricants containing the maximum content of
  6 19 recycled oil or biobased materials in biobased products, with
  6 20 additional preference given to biobased products derived from
  6 21 soybeans, rather than the current law requirement that they
  6 22 contain soybean oil.
       LSB 5455HV (3) 86
       gh/sc