USED OIL RECYCLING AMENDMENT TO SUPERFUND REAUTHORIZATION LEGISLATION [Section 101(b) of H.R. 2005] House Passed-Version (b) HAZARDOUS SUBSTANCES. Section 101(a)(14)(C) of CERCLA is amended by inserting after "Congress" the following: "and not including used oil that is listed or identified as a hazardous waste under the Solid Waste Disposal Act if such used oil (i) is treated, managed, or recycled in such a way as to remove or render harmless the hazardous constituents contained in such oil or such used oil does not contain hazardous constituents, and (ii) such used oil is in compliance with a final rule promulgated by the Administrator, which rule shall authorize the Administrator to order any corrective action necessary for any release of used oil". Senate-Passed Version No provision Suggested House-Senate Compromise (b) HAZARDOUS SUBSTANCES. - Section 101(a)(14)(C) of CERCLA is amended by inserting after "Congress" the following: "and not including 'recycled oil' as defined and regulated by the final rules promulgated by the Administrator under section 3014 of the Solid Waste Disposal Act", Comments The condition that the used oil be "treated, managed, or recycled in such a way as to remove or render harmless the hazardous constituents" is unnecessary. - - Virgin products often contain contaminants, including some constituents considered of concern to EPA in its used oil proposals issued on November 29, 1985 (e.g., benzene and toluene). - On November 29, 1985, EPA issued a final rule prohibiting the burning in non-industrial boilers of used oil that does not meet speciification levels for certain hazardous contaminants and flash point. 50 Fed. Reg. 49,164. In the preamble to its final burning rule, the Agency said: ... EPA identified typical contaminants of used oil and 50 Fed. Reg. 49,181. -- Used oil with hazardous constituents below the specification levels can be sold to and burned in non-industrial boilers (e.g., apartment and office buildings) without regulation. EPA believes the specification is "protective under virtually all circumstances." 50 Fed. Reg. 49,180. EPA's regulatory definition of "used oil" excludes used oil that is intentionally mixed with hazardous wastes. Such mixtures are regulated as RCRA subtitle C hazardous wastes and not as used oil. -- EPA's November 29, 1985 proposal to establish management standards for recycled used oil is designed to minimize health and environmental risks. The requirement that EPA's final used oil rule "authorize the Administrator to order any corrective action necessary for any releases of used oil" is redundant. -- Adequate authority exists under RCRA for EPA to respond to releases of used oil that pose threats to human health and the environment (e.g., section 7003). -- If used oil is not listed as a RCRA subtitle C hazardous waste, it is subject to regulation as a "regulated substance" under RCRA subtitle I. Subtitle I directs EPA to promulgate regulations for the detection, prevention, and correction of releases from underground stoorage tanks. A pending amendment (section 205) to H.R. 2005 would provide for additional response authorities for clean-ups of releases from certain underground storage tanks. EPA's proposed management standards for recycled used oil include requirements for used oil tanks that are leaking. The proposed compromise continues the exclusion from Superfund authorities only for that used oil that is recycled according to EPA rules. - EPA's used oil proposals find that land disposal and road oiling are environmentally-unacceptable ways to recycle used oil. - - EPA's proposed regulatory definition of "recycled oil" excludes used oil intentionally mixed with hazardous wastes. --The condition that the Superfund exclusion applies only to used oil that is properly recycled creates a powerful incentive for more used oil to enter the used oil management system. SSDA SERVICE STATION DEALERS OF AMERICA SSDA Position Paper One of the least publicized, but most dangerous environmental hazards of recent times is caused by the uncontrolled dumping of waste motor oil by do-it-yourself, (DIY) oil-changers. Major oil companies have encouraged the DIY'ers by adopting a two-tier marketing program which allows non-service stations to offer motor oil to the public at less than half a service station's "wholesale" cost. Do-it-yourselfers now account for over 70% of the motor oil sold in the United States, and in 1985 they purchasca 575 of the 821 million gallons of oil sold. Of this 575 million gallons, 162 million gallons were burned or leaked, leaving 412 million gallons of used oil to be disposed of. While service stations recycle virtually all of their used oil, which is exempted from the Hazardous Waste Act, DIY'ers recycle only 148 of this used motor oil, which in 1985 amounted to 57 million gallons out of the 412 million gallons disposed of. Of the 57 million gallons recycled by DIY'ers,, 37 million gallons were handled by service stations. Used oil recycling by service stations will cease if used oil is declared a hazardous waste, thus subjecting recycling activity to the costs of compliance with RCRA regulations. More importantly, used oil recycling would then be subject to the potential liabilities under CERCLA (Superfund). The risk of liability for upstream recycling activities over which service station dealers have no control over, creates a legal climate too dangerous for used oil recycling activities to continue. The economics of used oil recycling, a marginally profitable activity, will also be destroyed by listing used oil as a hazardous waste. Projected hikes in garage liability insurance alone will eat up any profits, destroying any incentive for service stations to continue to provide oil change services, or accept DIY motor oil for recycling. The net result will be an increase in pollution due to increased market share and dumping by DIY'ers. The problem arises because 40% of the DIY used oil will be dumped directly onto the ground or into the sewage systems, a total of 165 million gallons this year. Another 87 million gallons will be placed in trash cans, and then taken to a landfill, where it too will end up in the groundwater. Burning as fuel oil and other miscellaneous uses account for the disposition of the balance of used oil. Although off-shore spills receive all the publicity, the fact is that 62% of all petroleum-related pollution in the United States is due to used motor oil, most of which ends up in our oceans. As a result of this problem, states such as Maryland have passed legislation to encourage do-it-yourselfers to return used motor oil to designated recycling centers. Maryland has imposed a $200 penalty for dumping used oil in other than an approved collection center for a first offense, and $1,000 fine and 30 days in jail for a second offense. Such New York law mandates that service stations must accept DIY oil. laws will be challenged as unconstitutional should used oil be listed as a hazardous waste. A DOE study indicates that 72% of the oil purchased by DIY'ers would be recycled if the place where the motor oil was purchased had collection facilities for used oil. The amount of recycling facilities continues to dwindle as major oil companies demolish existing facilities in favor of gas-only operations. The Service Station Dealers of America (SSDA) believes that sound environmental policy should seek to increase the amount of "backyard mechanic oil brought into the recycling system, as DIY'ers dump more oil than all other segments of the motor oil market sell. SSDA is very interested in working with Members of Congress interested in developing such a sound policy. Unfortunately, the listing of used oil as a hazardous waste would end any hopes of implementing such a policy. |