Bill Text: IA HF2397 | 2015-2016 | 86th General Assembly | Introduced
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
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 gh/sc 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 biobasedhydraulic 1 4 fluids, greases, and otherindustrial lubricantsmanufactured 1 5 from soybeansin 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.316Lubricants and oilsIndustrial 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 oflubricating oil andindustrialoillubricants to 1 14 eliminate exclusion of recycled oils andany requirement that 1 15 oils be manufactured from virgin materialsany such products 1 16 composed of biobased materials. 1 17 2. Require that purchases oflubricating oil andindustrial 1 18oillubricants 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 specificoilproduct 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 apreferencebiopreferred 2 1 procurement program for procuringoilsindustrial lubricants 2 2 containing the maximum content of recycled oil or biobased 2 3 materials in biobased products. Thepreferencebiopreferred 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 therecycled oil2 10 procurement program at bidders' conferences. 2 11 c. Discussion of thepreferenceprocurement program in 2 12lubricating oil andindustrialoillubricant procurement 2 13 solicitations or invitations to bid. 2 14 d. Efforts to inform industry trade associations about the 2 15preferenceprocurement program. 2 16 4. a. Provide that when purchasinghydraulic fluids, 2 17 greases, and otherindustrial lubricants, the department or a 2 18 state agency authorized by the department to directly purchase 2 19hydraulic fluids, greases, and otherindustrial lubricants 2 20 shall give preference to purchasingbiobased hydraulic fluids, 2 21 greases, and otherindustrial 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 forhydraulic fluids, greases, and other2 30 industrial lubricants. 2 31 (2) Describing the preference requirements at bidders' 2 32 conferences in which bids for the sale ofhydraulic fluids, 2 33 greases, and otherindustrial 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 forhydraulic fluids, 3 2 greases, and otherindustrial 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) "Biobasedhydraulic fluids, greases, and other industrial 3 8 lubricants"material" meansthe 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 oilthe same as defined in section 3 15 8A.317. 3 16 (2)"Other industrial lubricants""Biobased product" means 3 17lubricants used or applied to machinerythe 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 sectionSubsection 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 otherAn 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 2lubricating oils, industrial oils, greases, and hydraulic 4 3 fluidsindustrial 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 biobasedhydraulic fluids, greases, and 4 8 otherindustrial lubricants. 4 9Hydraulic fluids, greases, and other industrialIndustrial 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 biobasedhydraulic fluids, greases, and other4 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 oflubricating 4 28 oils and industrial oilsindustrial 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 biobasedhydraulic fluids, greases, and 4 33 otherindustrial lubricants. 4 34 The state board of regents and institutions under the 4 35 control of the board purchasinghydraulic fluids, greases, and 5 1 otherindustrial lubricants shall give preference to purchasing 5 2 biobasedhydraulic fluids, greases, and otherindustrial 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 7lubricating oils, industrial oils, greases, and hydraulic 5 8 fluidsindustrial 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 biobasedhydraulic fluids, greases, and 5 13 otherindustrial lubricants. 5 14 The department when purchasinghydraulic fluids, greases, 5 15 and otherindustrial lubricants shall give preference to 5 16 purchasing biobasedhydraulic fluids, greases, and other5 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