Special Topics in Environmental Management

Are You a Used Oil Generator?

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.


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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.


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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.

See tomorrow’s Advisor for more on used oil generator requirements.

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