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Used Oil

City of Tacoma settles with EPA for violating federal rules on PCBs in used oil

Release Date: 09/30/2013

Contact Information: Suzanne Skadowski, EPA Region 10 Public Affairs, 206-295-4829, skadowski.suzanne@epa.gov

(Seattle – September 30, 2013) The City of Tacoma has settled with the U.S. Environmental Protection Agency for violating federal rules on used oil contaminated with toxic polychlorinated biphenyls or PCBs.

“Today’s settlement should serve as a reminder that handling used oil requires attention to the requirements designed to prevent the distribution of PCBs,” said Edward Kowalski, Director of EPA’s enforcement program in Seattle. “Simple testing for PCBs before shipping used oil off-site helps protect people and the environment and prevents contamination of oil that can otherwise be recycled and reused.”
 
According to EPA, the City of Tacoma shipped 750 gallons of used oil contaminated with PCBs from the City’s landfill to Emerald Services, an oil recycling and reuse company. The City did not know that the used oil was contaminated with PCBs before they shipped the oil. Emerald Services found the problem during their routine oil testing and was able to trace the PCB-contaminated oil to the City’s shipment.
 
EPA discovered the violations when Emerald Services provided a waste report to EPA, as required by federal regulations, describing the PCB waste. The City’s oil shipment resulted in the PCB contamination of approximately 8,250 gallons of used oil at Emerald Services. Under federal rules, Emerald Services could not recycle the PCB-contaminated oil, and instead was required to dispose of the used oil as hazardous waste.
 
To settle the violations, the City of Tacoma has agreed to pay a $40,000 federal penalty.
 
PCBs are chemicals used in paints, industrial equipment, and cooling oil for electrical transformers. More than 1.5 billion pounds of PCBs were manufactured in the U.S. before EPA banned their production in 1978, and many PCB-containing materials are still in use today.
 
When released into the environment, PCBs remain for decades. Tests have shown that PCBs cause cancer in animals and are suspected carcinogens in humans. Concerns about human health and the persistence of PCBs in the environment led Congress to enact the Toxic Substances Control Act in 1976.
 
More about safely recycling oil:  http://www.epa.gov/osw/conserve/materials/usedoil/index.htm

Read more about the Management of Used Oil.  It is important to note that oil containing PCB’s cannot meet the definition of a Used Oil and therefore cannot be managed per 40 CFR 279.  PCB-containing oil must be handled per the TSCA (Toxic Substances Control Act) regulations of 40 CFR 761, and not the RCRA regulations of 40 CFR 239-299.  It is not managed as a hazardous waste as the 3rd paragraph of the above news release reports.

Though not a hazardous waste, a used oil is still subject to regulations governing its composition, on-site management, and off-site disposal.  Make certain you are in compliance with these regulations and everything else required by RCRA.  The cost of training is slight compared to fines like these.  Please don’t hesitate to contact me with questions about the management of used oil, hazardous waste, universal waste, and more.

North Carolina Used Oil Recycling Business and Owner Plead Guilty to Unlawful Handling of PCB-Contaminated Used Oil and Other Crimes

Benjamin Franklin Pass, 60, and P&W Waste Oil Services Inc. of Wilmington, N.C., pleaded guilty today in federal court in the Eastern District of North Carolina for violations of the Toxic Substances Control Act, as well as for making false statements and failing to pay several years of taxes, announced the Department of Justice’s Environment and Natural Resources Division and the U.S. Attorney’s Office for the Eastern District of North Carolina.  The defendants admitted to, among other things, the unlawful handling of a toxic substance that resulted in widespread contamination.
The P&W facility in Leland, N.C., included a tank farm consisting of multiple tanks ranging from 20,000 gallons to 500,000 gallons.  The facility is located approximately 500 feet to the east of the Cape Fear River and a federally recognized wetland.As part of its business operations, P&W transported, processed and marketed used oil contaminated with polychlorinated biphenyls (PCBs).  P&W received the used oil from small and large companies, such as automotive service stations, transformer repair companies and marinas.  P&W also conducted tank cleaning and waste removal.According to the charges filed in federal court in Raleigh, N.C., and information stated in open court, the defendants knowingly failed to comply with regulations covering PCB-contaminated used oil by unlawfully transporting, storing and disposing of used oil contaminated with PCBs.  Specifically, in July 2009, an employee transported waste oil containing fluid from five PCB transformers from a site in Wallace, S.C., to the P&W facility.  The investigation revealed that the waste oil was contaminated with PCB concentrations in excess of 500 parts per million.

“Enforcing our environmental laws is essential to protecting the health of North Carolina’s residents and their natural resources,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.  “PCBs are well known to pose substantial risks to human health and the environment and must be handled responsibly and lawfully.  We will continue to vigorously prosecute those who ignore the laws Congress enacted in order to protect the people and the environment from coming into contact with this toxic substance.”

“This disregard of environmental protections resulted in significant contamination,” said U.S. Attorney for the Eastern District of North Carolina Thomas G. Walker.  “The defendant’s conduct placed an economic burden on the United States and an unreasonable risk to the health and safety of the citizens of North Carolina.”

Despite knowledge of the investigation into the defendants’ illegal handling of PCB-contaminated used oil, Pass and an employee of P&W (at Pass’ direction) continued to unlawfully dilute the contaminated used oil.  The mishandling of the PCB-contaminated used oil resulted in the wide-spread contamination at the site and other sites, resulting in millions of dollars in cleanup costs.

PCBs pose such an unreasonable risk of injury to human health and the environment that effective Jan. 1, 1978, Congress banned the production of PCBs and mandated that no person may distribute in commerce, or use any PCBs other than in a totally enclosed manner, and directed the U.S. Environmental Protection Agency (EPA) to promulgate rules phasing out the manufacture of PCBs and regulating their disposal.

As part of the plea agreements, Pass agreed to pay $538,587, plus interest, in restitution to the Internal Revenue Service.  P&W agreed to pay restitution in the amount of $19 million as compensation to Colonial Oil and International Paper for the costs associated with the storage and proper disposal of PCB-contaminated used oil as well as any monetary losses associated with the illegal handling, storage and transportation of toxic substances.  P&W also agreed to a five-year term of probation and to take remedial action to address the environmental contamination at its facility in eastern North Carolina and other leased property in eastern North Carolina, including but not limited to, the proper treatment and/or disposal of PCB-contaminated waste oil.

Currently, efforts are underway to clean up the contamination at P&W’s facility in Leland, N.C., which has been designated a Superfund site by the EPA.  Superfund is the name given to the federal environmental program established to clean up the nation’s uncontrolled hazardous waste sites.

“The license to run a business is not a license to avoid paying taxes,” said Richard Weber, Chief, Internal Revenue Service (IRS) Criminal Investigation. “IRS Criminal Investigation provides financial investigative expertise in our work with our law enforcement partners.  As today’s announcement shows, our skills support a wide range of investigations.  Pass’ plea demonstrates the strength of our collective efforts to enforce the law and ensure public trust.”

“The defendant’s failure to notify EPA of the presence and intentional dilution of PCB-contaminated fuel oil not only posed a risk to public health and the environment, but also demonstrated the level of disregard for the laws that were designed to protect us.” said Maureen O’Mara, Special Agent in Charge of Environmental Protection Agency’s (EPA) criminal enforcement office in Atlanta.  “Today’s guilty plea sends a clear message that the government will prosecute those who recklessly endanger the health of our communities and environment by ignoring the law.”

The defendants entered their plea before U.S. District Judge James C. Dever III of the Eastern District of North Carolina.

U.S. Attorney Walker and Acting Assistant Attorney General Dreher praised the efforts of the EPA’s Criminal Investigation Division and the IRS’s Office of Criminal Investigations and the U.S. Coast Guard’s Criminal Investigative Services for their diligent work in the investigation of this matter.  Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina and Trial Attorney Shennie Patel of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division are the prosecutors in charge of the case.

The Used Oil regulations under the Resource Conservation and Recovery Act (RCRA) allow generators of certain wastes to manage them under a set of standards that are more relaxed than those for hazardous waste, the Used Oil Standard at 40 CFR 279.  This is allowed even if the Used Oil exhibits the characteristics of a hazardous waste:  Ignitability, Corrosivity, Reactivity, & Toxicity.  However, per 40 CFR 279.10(i) the Used Oil Regulations are not applicable if the waste contains PCBs at concentrations of 50 ppm or greater.  Wastes with PCB concentrations above the 50 ppm threshold may not dilute the waste in order to lower its concentration (as in this case) unless the dilution is specifically allowed at 40 CFR 761.

Though not regulated as a hazardous waste, the Used Oil Standard is a part of the RCRA regulations and does contain its own specific requirements to ensure compliance.  It is just one of the topics I cover thoroughly at my Hazardous Waste Personnel Training Seminars, Onsite Training, and Web-Based Training.

Mixtures of Hazardous Waste and Used Oil

The regulations of the US EPA at 40 CFR 279 allow for the regulation of a waste as a Used Oil provided it is:

  • Petroleum-based or synthetic,
  • Used, and;
  • As a result of its use is contaminated by chemical or physical impurities.
  • In addition, US EPA presumes Used Oil will be recycled.

A solid waste meeting the above criteria may be managed as a Used Oil even if it exhibits any of the characteristics of a hazardous waste:  Ignitability, Corrosivity, Reactivity, or Toxicity but not if it is a listed hazardous waste.  Read more about The Management of Used Oil.

What about mixtures of Used Oil and hazardous waste?  How will the resulting mixture be regulated?  The answers to those questions are the goal of this article.

There are two general situations where a Used Oil may become mixed with a hazardous waste:

  1. Combination takes place during use before the point of generation.  This typically is not considered to be mixing of separate wastestreams and is not subject to regulation as such.  However, as the generator you must determine if the waste meets the definition of a Used Oil at the point of generation.  For example, if anhydrous ammonia becomes mixed with your Used Oil as part of a refrigeration system before the point of generation the combined waste may still be managed as a Used Oil as long as it meets the definition of Used Oil at 40 CFR 279 and summarized above.
  2. The combination (intentional or unintentional) takes place after the point of generation.  The combination of two or more distinct wastestreams (in this situation Used Oil and a hazardous waste) puts the burden on you as the generator to first determine if the mixing is allowed by regulation and secondly determine the regulatory status of the resulting mixture.  Your determination must consider the regulations of your state.

Is the mixing allowed?

To determine if the mixing is allowed at all you must answer the following two questions:

  1. Is the mixing considered treatment by dilution and therefore prohibited under the Land Disposal Restrictions (LDR) of 40 CFR 268?  As we will see later however, the mixing of Used Oil and some hazardous waste may not be subject to the LDR.
  2. Does the mixing meet the definition of Hazardous Waste Treatment at 40 CFR 260.10?  If so, the mixing may require a permit though there are many examples where a generator is allowed to treat hazardous waste onsite without a permit.

What is the regulatory status of the mixture?

  • The mixture of Used Oil and a waste that is hazardous solely for the characteristic of Ignitability may be managed as a Used Oil as long as the mixture does not exhibit the characteristic of Ignitability.  The option to manage the mixture as a Used Oil remains even if the mixture exhibits other hazardous characteristics such as Toxicity for lead (D008) which may have been present in the Used Oil before mixing.  If the characteristic for Ignitability is exhibited by the mixture, then it may not be managed as a Used Oil and must be managed as a hazardous waste [40 CFR 279.10(b)(2)(iii)].
  • The mixture of Used Oil and a characteristic hazardous waste (other than an Ignitable-only referred to above) may be managed as a Used Oil only if the mixture does not exhibit any hazardous waste characteristics.  If any hazardous waste characteristic is exhibited by the mixture (example:  the Toxicity characteristic for lead [D008] is present in the Used Oil) the waste must be managed as a hazardous waste [40 CFR 279.10(b)(2)(ii)].
  • The mixture of a Used Oil and a listed hazardous waste can be tricky.  The simple answer is that the mixing of any listed hazardous waste and Used Oil will result in a mixture that must be managed as a listed hazardous waste [40 CFR 279.10(b)(1)].
  • However 40 CFR 279.10(b)(2)(ii) indicates that a mixture of an ICR-Only Listed Waste and a Used Oil may be managed as a Used Oil provided the mixture does not exhibit any hazardous waste characteristic.  Notice that this citation is the same one that allows you to manage the mixture of Used Oil and a characteristic hazardous waste as Used Oil provided the mixture does not exhibit any characteristic of hazardous waste.  This includes those characteristics of hazardous waste that may have been present in the Used Oil before mixing.  I advise extreme caution before exercising this option, I will explain further below.

The Land Disposal Restrictions:

The LDR prohibits the dilution of a hazardous waste in order to render it non-hazardous.  However, the Used Oil standard at 40 CFR 279.10(b)(2) indicates that mixtures of a Used Oil and some forms of hazardous waste are not subject to the LDR if the mixture does not exhibit any characteristics of hazardous waste; the two types of hazardous waste not subject to the LDR when mixed with Used Oil are:

  1. Hazardous waste that solely exhibit one or more of the hazardous waste characteristics, and;
  2. ICR-Only Listed Waste.

If the mixture is eligible to be managed as a Used Oil, then it is not subject to the Land Disposal Restrictions of 40 CFR 268  – or parts 260-266, 270, & 124 – which means no further treatment is required before disposal.

Why I Advise Extreme Caution Before Exercising the Option of Mixing Used Oil with ICR-Only Listed Waste:

  1. First and foremost, this is my interpretation of the regulations and though it seems clear to me it may not be as clear to your boss, your Used Oil recycler, or the EPA inspector.  Also I could be flat-out wrong, it happens.
  2. Secondly you have to decide if interpreting the regulations in this way would benefit you at all.  If the benefit is minimal it might not be worth all the hassle of having to constantly justify your position.
  3. From the perspective of a Best Management Practice it is a good idea to keep wastestreams separate and manage them according to their applicable regulations.
  4. And finally, this interpretation is based on the Federal regulations of the US EPA.  You must determine the regulations of your state if it is authorized to implement the hazardous waste program (all but Iowa, Alaska, and Puerto Rico are).  I have spoken to two states and one regional office on this issue:
    • Illinois EPA thought it might be allowed, but did not think it was a good idea.
    • US EPA Region V did not come out and say I was wrong but gave me a list of reasons why it is a bad idea and why they strongly discourage mixing of wastestreams.
    • Maryland Department of Environment referred me to their state regulations that expressly forbid the mixing of an ICR-Only Listed Waste and a Used Oil [COMAR 26.13.10.05(E)]

As always, the determination of a wastes status is up to you as the generator.  The management of that waste in compliance with the regulations depends upon your initial determination; so make your decision with care.  Please don’t hesitate to contact me with any questions.

Listed Hazardous Waste and Used Oil at a Conditionally Exempt Small Quantity Generator of Hazardous Waste

In a previous article I discussed the Used Oil Management Standard of the US EPA found at 40 CFR 279.  It allows you to manage a Used Oil according to a reduced regulatory burden even if it has the characteristics of a hazardous waste:

Characteristic Hazardous Waste:

  • D001 for Ignitability
  • D002 for Corrosivity
  • D003 for Reactivity
  • D004 – D043 for Toxicity

WITH ONE EXCEPTION you may not manage your waste according to the Used Oil Standard if any of the following are true:

  1. The Used Oil is determined to be a listed hazardous waste per 40 CFR 261, Subpart D.  See below for guidance on how you may rebut the presumption of your Used Oil being a listed hazardous waste.
  2. The Used Oil has been mixed with a Listed Waste.
  3. The Used Oil has been mixed with a characteristic hazardous waste and the resulting mixture exhibits any of the characteristics of a hazardous waste.  However, if a D001 Ignitable hazardous waste is mixed with a Used Oil it may still be managed as a Used Oil even if the resulting mixture exhibits the characteristic of Ignitability.

Read more about Mixtures of Used Oil and Hazardous Waste.

The exception referred to above applies to a Conditionally Exempt Small Quantity Generator (CESQG) of hazardous waste.  What this means is that a CESQG may mix any hazardous waste (listed or characteristic) with a Used Oil and manage the resulting mixture as a Used Oil (fb 14627).  This exception is not available to Large Quantity Generators and Small Quantity Generators of hazardous waste.

If the mixture contains >1,000 ppm total halogens, then it is subject to the Rebuttable Presumption regulations of the Used Oil Standard.  In this case the Presumption may be rebutted by the demonstration that the mixture is an excluded CESQG Used Oil mixture subject to §261.5(j) and §279.10(b)(3).

So, can a CESQG combine all of its hazardous waste (listed and characteristic) with its Used Oil and manage the resulting mixture according to the reduced regulatory requirements of the Used Oil Standard?  Yes.  Do I recommend this practice?  No.  Your State Agency and your Used Oil recycler may not be too crazy about it either.  In the final, it is your decision and responsibility as the generator of the waste to determine the applicable regulations and to comply with them.  My training, both US EPA Hazardous Waste Personnel and US DOT HazMat Employee, will help you to identify the applicable regulations and what you must do to maintain compliance.

The Management of Used Oil

If you generate a waste oil as a by-product of your operations (i.e., a generator of Used Oil) you may be able to take advantage of the relaxed regulatory requirements of the U.S. Environmental Protection Agency (USEPA) and those of your state for the management of this waste as a Used Oil.  In addition to less restrictions for on-site handling the used oil regulations of the US EPA at 40 CFR 279 provide used oil generators with additional options for transportation and recycling.

Daniels Training Services, Inc.

815.821.1550

Info@DanielsTraining.com

https://dev.danielstraining.com/

Definition of Used Oil:

A used oil is defined by regulation as, “Any oil that has been refined from crude oil, or any synthetic oil, that has been used and as a result of such use is contaminated by physical or chemical impurities.”  It is worth some repetition in order to emphasize the most important conditions of this definition, a used oil must be…

  1. Refined from crude oil or any synthetic oil; it cannot be a vegetable or animal oil/grease,
  2. Used or unused; and;
  3. Contaminated as a result of its use by physical or chemical impurities (i.e., is too spent or too dirty for continued use).

Refer to Table 1 for further description of what can and cannot be regulated as a used oil.

Table 1:

A Used Oil may be…

A Used Oil Cannot be…

Motor oils

Fuel product storage tank bottoms

Greases

Fuel product spill cleanup material

Emulsions

Unused or virgin oil

Coolants

Animal and vegetable oils and grease

Heating media

Antifreeze

Brake fluids

Materials used as cleaning agents

Transmission fluids

Materials used only for their solvent properties

Other hydraulic fluids

 An oil containing >1,000 ppm total halogens

Electrical insulating oils

Metalworking fluids

Refrigeration oils

If your used oil meets the above definition, then it may be managed per the used oil regulations even if it meets the definition of a characteristic hazardous waste.  You may not, however, use the used oil option if it contains a listed hazardous waste.  Table 2 contains a summary of characteristic and listed hazardous waste.

Table 2:

Characteristic Hazardous Waste

Listed Hazardous Waste

Description

Waste Codes

Description

Waste Codes

Ignitable

D001

Non-Specific Sources

F001 – F039

Corrosive

D002

Specific Sources

K001 – K181

Reactive

D003

Discarded commercial chemical products, off-specification species, container residues, and spill residues thereof (Acute).

P001 – P205

Toxic

D004 – D043

Discarded commercial chemical products, off-specification species, container residues, and spill residues thereof (Toxic).

U001 – U411

Applicability of Used Oil Regulations:

Used oil in IBC
Proper identification on a used oil container.

Even if the above definition is met, there are some instances where you may not be able to take advantage of the used oil option.  The used oil regulations are designed to encourage recycling but also protect the environment; this requires the exclusion of some waste from management as a used oil.

First, it is assumed that all used oil generated will be recycled instead of disposed as a waste.  This allows you as the generator to comply with the used oil regulations regardless if a transporter, processor, or other handler down the line decides to dispose of it as a waste instead of recycle.  In that case the burden of complying with the applicable hazardous waste regulations lies with the handler who chooses disposal over recycling and does not impact your handling of it as a used oil.

One way your oil may be ineligible for management as a used oil is because of something known as the “Rebuttable Presumption”.  It works like this:  at some point prior to recycling your used oil must be sampled and analyzed to determine its total halogen content (fluorine, chlorine, bromine, iodine, or astatine) by the transporter, processor, re-refiner,transfer facility, or other handler – a generator may perform the analysis but it is not required.  If the results of this test indicate the total halogen content is >1,000 ppm, then the used oil is presumed to contain a spent chlorinated solvent and to be a listed hazardous waste from a non-specific source with the waste codes of either F001 or F002 (see Table 2).  This presumption, known as the “Rebuttable Presumption”, precludes the waste’s management as a used oil unless you as the generator are able to do one of the following:

  1. Find an exemption/exclusion from the “Rebuttable Presumption”.
  2. Rebut the presumption by demonstrating the oil does not contain a listed hazardous waste.

A second way your oil may be ineligible for the used oil option is if it has been mixed with a characteristic hazardous waste and the resulting mixture exhibits any of the characteristics of a hazardous waste; an exception to this exists for a waste that is hazardous solely for the characteristic of ignitability.  If an ignitable hazardous waste is mixed with a used oil the resulting mixture may be managed as a used oil as long as it doesn’t display the characteristic of ignitability.

And, of course, the mixture of an oil with any listed hazardous waste precludes its management as a used oil.

See Table 2 for a summary of characteristic and listed hazardous waste.

Contact me with any questions you may have about the generation, identification, management, and disposal of hazardous waste

Daniels Training Services, Inc.

815.821.1550

Info@DanielsTraining.com

https://dev.danielstraining.com/

Requirements for Management of Used Oil:

The used oil regulations contain specific requirements for generators, they include:

  • Label containers, above-ground tanks, and underground tank fill pipes as “Used Oil”.  This is very important, labeling as “Waste Oil”, “Bad Oil”, “Oil for Recycling”, etc. is frequently cited as a violation by the US EPA.  Pennsylvania is the only State that identifies this waste as “Waste Oil”.
  • Maintain used oil containers and tanks in good condition with no leaking.
  • If a leak or spill occurs, promptly clean it up with dry methods and dispose of any waste properly.
  • Also, you should…
    • Comply with your State’s applicable requirements for the storage of flammable, combustible, and hazardous materials.
    • Comply with the US EPA Spill Prevention, Control and Countermeasure (SPCC) regulations of the Clean Water Act if your on-site storage of all oil is above threshold amounts.

Transportation of Used Oil:

The used oil transporter you select must comply with the following:

  • Have a US EPA identification number.  It may also require a State solid waste transportation license, check with your State.
  • Meet all applicable regulations of the US DOT for the transportation of hazardous materials.
  • Comply with the used oil regulations (Federal and State) applicable to used oil transporters.

There is a special arrangement you may be able to make with your transporter known as the tolling arrangement that removes the requirement for the transporter to have a US EPA identification number.   To be eligible for the tolling arrangement the used oil must be reclaimed under a contractual agreement where the reclaimed oil is returned by the processor or re-refiner to the generator for use as a lubricant, cutting oil or coolant.

Management Options for Used Oil:

A used oil generator also has some options available that make the management and disposal of used oil even easier and possibly a net benefit:

  1. You may self-transport up to 55 gallons of your own used oil to a registered used oil collection center or between your facilities to a central aggregation point.  You may also transport used oil collected from household do-it-yourselfers or small farmers (those who generate an average of <25 gal/month of used oil in a calendar year) to your facility or an aggregation point.  In either case, the transportation must be in a company or employee-owned vehicle.Self-transport of used oil
  2. You may filter, clean, or otherwise recondition used oil for reuse on-site.
  3. You may burn used oil on-site in a space heater if all of the following conditions are met:
    • Maximum design capacity of the heater is ≤500,000 BTU”s/hour.
    • Combustion gases are vented to the outside.
    • Sources of used oil are limited to:  on-site generation or other locations owned by the company (you can use self-transportation to aggregate volumes) or receive directly (without a middle-man or used oil marketer) from household do-it-yourselfers or small farmers.

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Prohibitions on the Management of Used Oil:

Used oil may not be…

  • Managed in surface impoundments or waste piles unless permitted.
  • Used as a dust suppressant.
  • Burned in a non-exempt boiler or space heater (see above).

Conclusion:

Used oil is a type of waste the USEPA believes can be managed in a way that protects human health and the environment without resorting to full regulation as a hazardous waste under the Resource Conservation and Recovery Act (RCRA).  For this reason the used oil regulations were created.  Make certain that you comply with the relaxed regulatory requirements and take advantage of the options available to you as a generator of used oil.