A used oil generator is any person, by site, who produces used oil or causes used oil to become subject to regulation. Generators include all persons who produce used oil through commercial or industrial operations and vehicle services.

Storage Requirements

The rules state that generators must not store used oil in units other than tanks, containers, or units regulated under 40 CFR 264 or 40 CFR 265 (40 CFR 279.22(a)). (Tanks include both aboveground storage tanks (ASTs) and underground storage tanks (USTs)). According to EPA, this does not mean that the ASTs or containers must meet the respective container and tank requirements of 40 CFR 264 or 40 CFR 265, just that storage in those regulated containers and tanks is allowed. However, used oil cannot be stored in another type of unit (e.g., a surface impoundment) unless it is a permitted hazardous waste unit. The determination as to which storage units must be used for mixtures of used oil and hazardous waste is based on whether the used oil mixture is to be managed as a used oil or as a hazardous waste. Under the used oil storage rules for generators, the options are as follows:

  • Used oil or used oil mixtures managed as used oil can be stored in tanks or containers that either are or are not regulated under 40 CFR 264 or 40 CFR 265.
  • Used oil mixtures managed as hazardous waste must be stored in tanks or containers that comply with 40 CFR 264 or 40 CFR 265.
  • Units other than tanks or containers that store used oil or any used oil mixture must be permitted under 40 CFR 270 and the units must meet specific standards of 40 CFR 264 or 40 CFR 265.

Generators must ensure that all containers and ASTs are free of any visible spills or leaks as well as structural damage or deterioration. All ASTs or containers that are used must be in good condition and be properly labeled as “used oil.” Fill pipes that transfer used oil into USTs must be marked clearly with the words “used oil.”

If used oil is stored in a UST, that UST would have to comply with the standards for USTs, including those at 40 CFR 280.

Release Response

Upon discovering an oil release from an AST or container, the following procedures should be followed:

  • Stop the release
  • Contain the released used oil
  • Clean up and manage properly the released used oil and other materials
  • If necessary to prevent future releases, repair or replace any leaking used oil storage containers or tanks before returning them to service.

This requirement applies only when there is a release to the environment. This does not include releases within contained areas such as concrete floors or impervious containment areas, unless the releases go beyond the contained areas. It does not apply to releases from USTs subject to the release response and corrective action regulations of 40 CFR 280.

Generators that store used oil in ASTs or in certain USTs must develop and implement a Spill Prevention, Control, and Countermeasure (SPCC) Plan (40 CFR 112) and comply with the applicable AST and UST requirements concerning releases.

Off-Site Shipments

Generators must use a transporter that has an EPA ID number, except:

  • When transporting oil that the generator has generated to a collection center or aggregation point for recycling, provided that:
  • The used oil is transported in a vehicle owned by either the generator or by an employee of the generator.
  • The generator ships no more than 55 gallons of used oil at any one time.
  • The used oil collection center is registered, licensed, permitted, or recognized by the state, county, or municipality to manage used oil.
  • The aggregation point is owned or operated by the generator.
  • When the used oil is being reclaimed under a contractual agreement (known as a “tolling agreement”) under which reclaimed oil is returned by the processor/rerefiner to the generator for use as a lubricant, cutting oil, or coolant, provided that the tolling agreement indicates:
  • The type of used oil and the frequency of shipments,
  • That the vehicle used to transport the used oil to and from the processor/rerefiner is owned and operated by the processor/rerefiner, and
  • That reclaimed oil will be returned to the generator.

Burning in Space Heaters

Generators may burn used oil in used oil-fired space heaters provided that:

  • The heater burns only used oil that the owner or operator generates or used oil received from household do-it-yourself (DIY) used oil generators.
  • The heater is designed to have a maximum capacity of not more than 0.5 million British thermal units per hour.
  • The combustion gases from the heater are vented to the ambient air.

Used Oil Handler Activities

A generator’s used oil activities may subject the generator to the responsibilities of one or more other used oil handler categories. These requirements would be in addition to those required of generators. Other handler categories and the activities that would subject the generator to these additional requirements are:

  • Generators who transport used oil (except for self-transportation to collection centers or to aggregation points as discussed in this section) must comply with the transporter requirements are the following:
  • Processors/Rerefiners. Generators who process or rerefine used oil will be deemed to be processors/rerefiners. However, generators who engage in the following activities will not be deemed to be processors, provided that the used oil is generated on-site and is not being sent off-site to a burner of specification or off-specification used oil fuel:
  • Filtering, cleaning, or otherwise reconditioning used oil before returning it for reuse by the generator,
  • Separating used oil from wastewater to make wastewater acceptable for discharge or reuse,
  • Using mist collectors to remove droplets of used oil from workplace air,
  • Removing used oil from materials contaminated with used oil, and
  • Reconditioning used oil before burning in a space heater.

Burners

Generators who burn off-specification used oil for energy recovery, except under the on-site space heater provisions, must to follow the requirements for burners.

Marketers

Generators who direct shipments of off-specification used oil from their facility to a used oil burner, or first claim that the used oil to be burned is specification used oil, must comply with rules for marketers.

Used Oil Filters

Used oil filters do not have to be managed as hazardous waste provided the oil is drained from them, the filter is not mixed with a listed hazardous waste, and the filter is not plated with terne (an alloy of tin and lead). These “nonterne” used oil filters must be properly drained in order to fit into the exemption. To qualify for this exemption, EPA requires that filters be “gravity hot-drained” by one of the following methods:

  • Puncturing the filter anti-drain back valve or the filter dome end and hot-draining
  • Hot-draining and crushing
  • Dismantling and hot-draining
  • Any other equivalent hot-draining method that will remove the used oil

“Hot drained” means that the used oil filter is drained near engine-operating temperature. To adequately remove the majority of the oil, EPA recommends draining the filter for 12 hours.

Note: It is often difficult to differentiate between terne and nonterne filters. The generator of a used oil filter may have to contact the manufacturer to find out if the filter is terne or nonterne. Note also that some states have different draining standards and that some states regulate used oil filters as a hazardous waste.

For more information or assistance with your Environmental and Health & Safety regulatory compliance needs, contact Ralph Carito at Total Environmental & Safety, LLC (Total) at rcarito@TotalEnviron.com or 908-442-8599.