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F I S C A L I M P A C T R E P O R T

SPONSOR McCoy

DATE TYPED 2/19/05

HB 482/aHBIC

SHORT TITLE Bittering Agent in Antifreeze

SB

ANALYST Wilson

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

See Narrative

Relates to SB 497

SOURCES OF INFORMATION

LFC Files

Responses Received From

Environment Department (ED)

Department of Agriculture (DOA)

Administrative Office of the Courts (AOC)

SUMMARY

Synopsis of HBIC Amendment

The House Business and Industry Committee amendment to HB 482 does the following:

•

Changes the label requirement and makes it a petty misdemeanor to violate the

provisions of the bill.

•

Requires a bittering agent to be added to engine coolant in addition to antifreeze.

•

The bittering agent is raised to include denatonium benzoate at a minimum of

fifty parts per million so as to render it unpalatable.

•

Extends liability protection to anyone following the provisions of this law to any

situation where there is damage to the environment or natural resources of eco-

nomic loss.

•

Clarifies that the limitation of liability does not apply to the extent

liability pro-

House Bill 482/aHBIC -- Page 2

vided in this bill does not apply to a particular liability to the extent that the cause

of that liability is unrelated to the inclusion of a bittering agent.

•

Provides that any political subdivision of the State must follow the provisions of

this bill with respect to retail containers less than 55 gallons of engine coolant or

antifreeze.

Synopsis of Original Bill

House Bill 482 will require the addition of denatonium benzoate to antifreeze as a bittering agent

to discourage ingestion. Concentrations of 30 parts per million are considered adequate to make

it unpalatable. This bill requires labeling of bittered antifreeze with labels indicating such in

English and Spanish.

Significant Issues

Pets, especially dogs, are enticed to drink spilled or abandoned antifreeze because of its sweet

taste. Animals have also been deliberately poisoned with antifreeze. Children may be similarly

enticed. With the addition of a bittering agent, such as denatonium benzoate, proponents believe

fewer lives would be lost.

Denatonium benzoate additive is not a hazardous substance; therefore it would not be a hazard-

ous waste when discarded. Likewise, antifreeze with ethylene glycol is not considered a hazard-

ous substance. It only becomes a hazardous waste when discarded if it has accumulated hazard-

ous metals such as cadmium, chromium or lead during its operational lifetime.

The DOA notes that when requiring the addition of a compound to any product, the risk is al-

ways present that it will change other specifications of the substance. It is highly unlikely that

any compound introduced at the exceedingly small level of 30 parts per million, will negatively

affect any other antifreeze specification. The allowance of other “aversive agents” does however

open the door for compounds or quantities that could negatively affect overall product specifica-

tions. Only antifreeze manufacturers can make the determination as to what level of other “aver-

sive agents” would negatively affect overall specification.

The American Medical Association, the National Safety Council, the American Academy of

Veterinary and Comparative Toxicology, and the American Journal of Public Health have all

adopted resolutions or policy statements supporting the inclusion of a bittering agent in hazard-

ous products.

FISCAL IMPLICATIONS

If a state agency is going to be responsible for testing for the presence of these compounds, in-

strumentation must be acquired to perform the analyses. Oregon and California have researched

this problem, and have concluded that use of a high performance liquid chromatograph, mass

spectrometer is the best, if not only satisfactory way to test for denatonium benzoate at this level.

The approximate cost for one of these instruments is $100,000.

House Bill 482/aHBIC -- Page 3

ADMINISTRATIVE IMPLICATIONS

The bill does not identify the state agency responsible for testing the product. This agency will

acquire additional duties.

RELATIONSHIP

There is considerable overlap between HB 482 and SB 497. While both bills require the intro-

duction of a bittering agent in antifreeze, SB 497 expands the introduction to all engine coolants.

SB 497 allows for alternatives to denatonium benzoate, but HB 482 does not.

SB 497 prohibits local governments from continuing any prohibitions they may have in effect for

retail (i.e., less than 55-gallon) containers of coolant that are different from the provision in the

bill, but HB482 does not.

Finally, SB 497 does not require labeling of commercial containers of bittered coolants. HB 482

does, and requires that such labeling be in English and Spanish.

OTHER SUBSTANTIVE ISSUES

The Petroleum Products Standards Act, Chapter 57, Article 19, Sections 25 through 37 NMSA

1978, establishes standards for petroleum products in New Mexico. By definition, antifreeze is

considered a petroleum product and is therefore regulated under the act. Section 57-19-29 Qual-

ity Standards, requires petroleum products to meet the most current specifications established by

the American Society for Testing and Materials (ASTM), therefore antifreeze must comply with

the requirements set forth in ASTM D 3306, Standard Specification for Ethylene Glycol base

Engine Coolant for Automobile and Light Duty Service.

ALTERNATIVES

The DOA suggests the following:

Insert language in the bill, which clearly states the addition of any bittering agent shall

not change the specification for ethylene glycol-based antifreeze as established in the

most current edition of ASTM D 3306, Standard Specification for Ethylene Glycol base

Engine Coolant for Automobile and Light Duty Service. This will allow for the introduc-

tion of sufficient bittering agent to make the product unpalatable, without changing the

performance specifications of the product.

DW/sb