SB2659 SD2.DOC

SECTION 1. Chapter 103D, Hawaii Revised Statutes, is amended by adding to part X a new section to be appropriately designed and to read as follows:

"§103D‑ Preference for recycled oil products. (a) Notwithstanding any law to the contrary, any procurement officer who purchases lubricating oil and industrial oil may purchase the oil from the seller who certifies the oil product containing the greatest percentage of recycled oil. The procurement officer may purchase an oil product containing a lower percentage of recycled oil if the specific oil product containing the greatest percentage of recycled oil is:

(1) Not available within a reasonable period of time or in quantities necessary to meet the agency's needs;

(2) Not able to meet the performance requirements or standards recommended by the equipment or vehicle manufacturer, including any warranty requirements;

(3) Available only at a cost greater than the cost of comparable virgin oil products; or

(4) Likely to breach an existing warranty that requires the purchase of virgin oil products for exclusive use in vehicles or equipment whose warranties expressly prohibit the use of products containing recycled oil.

(b) Each chief procurement officer may establish and maintain an affirmative program for procuring oils containing the maximum content of recycled oil. An affirmative program shall include:

(1) Placement of descriptions of the preference for recycled oil products in publications used to solicit bids from suppliers or vendors;

(2) Descriptions of the recycled oil procurement program at bidders' conferences;

(3) Discussion of the preference program in lubricating oil and industrial oil procurement solicitations, invitations for bids, requests for proposals, or other solicitations for offers under this chapter; and

(4) Efforts to inform trade associations about the preference program."

SECTION 2. Section 103D-1001, Hawaii Revised Statutes, is amended by adding seven new definitions to be appropriately inserted and to read as follows:

""Biodiesel" means a vegetable oil-based fuel that meets ASTM International standard D6751, "Standard Specification for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels", as amended.

"Biofuel" means fuel from non-petroleum plant or animal based sources that can be used for the generation of heat or power.

"Industrial oil" means any compressor, turbine, or bearing oil, hydraulic oil, metal working oil, or refrigeration oil.

"Lubricating oil" means any oil intended for use in an internal combustion crankcase, transmission, gearbox, or differential, or an automobile, bus, truck, vessel, plane, train, heavy equipment, or machinery powered by an internal combustion engine.

"Recycled oil" means used oil that has been prepared for reuse as a petroleum product by refining, reclaiming, reprocessing, or other means; provided that the preparation or use is operationally safe, environmentally sound, and complies with all laws, rules, and regulations.

"Soil enhancement product" means any nonchemical soil preparation, conditioner, or compost mixture designed to supplement aeration or add organic, green waste, or decaying matter to the soil; provided that the term does not include any plant fertilizer intended to stimulate or induce plant growth through chemical means.

"Virgin oil" means oil that has been refined from crude oil and that has not been used or contaminated with impurities."

SECTION 3. Section 103D-1002, Hawaii Revised Statutes, is amended by amending subsection (k) to read as follows:

"(k) [For the purposes of this section, "soil enhancement product" means any nonchemical soil preparation, conditioner, or compost mixture designed to supplement aeration or add organic, green waste, or decaying matter to the soil; provided that the term does not include any plant fertilizer intended to stimulate or induce plant growth through chemical means.] All state agencies shall include in their solicitations, when required, the soil enhancement products identified on the Hawaii products list pursuant to subsection (e)."

SECTION 4. Section 103D-1012, Hawaii Revised Statutes, is amended to read as follows:

"[[]§103D-1012[]] Biofuel preference. (a) Notwithstanding any other law to the contrary, contracts for the purchase of diesel fuel or boiler fuel shall be awarded to the lowest responsible and responsive bidders, with preference given to bids for biofuels or blends of biofuel and petroleum fuel.

(b) When purchasing fuel for use in diesel engines, the preference shall be [~~five~~] 5 cents per gallon of one hundred per cent biodiesel. For blends containing both biodiesel and petroleum-based diesel, the preference shall be applied only to the biodiesel portion of the blend.

(c) When purchasing fuel for use in boilers, the preference shall be [~~five~~] 5 cents per gallon of one hundred per cent biofuel. For blends containing both biofuel and petroleum-based boiler fuel, the preference shall be applied only to the biofuel portion of the blend.

[(d) As used in this section, "biodiesel" means a vegetable oil-based fuel that meets ASTM International standard D6751, "Standard Specification for Biodiesel (B100) Fuel Blend Stock for Distillate Fuels", as amended.

~~(e) As used in this section, "biofuel" means fuel from non-petroleum plant or animal based sources that can be used for the generation of heat or power.~~]"

SECTION 5. Chapter 103D, part XIII, Hawaii Revised

Statutes, is repealed.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on January 1, 2011.

THE SENATE	S.B. NO.	2659
TWENTY-FIFTH LEGISLATURE, 2010		S.D. 2
STATE OF HAWAII