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ECAR Fact Sheet for Indiana
Used Oil
Regulations
Self-Audit Checklist
Best Management Practices
Contacts
Related ECAR Fact Sheets
Other Relevant Resources
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The following fact sheet was prepared by the ECAR Center staff. Once prepared, each ECAR Center fact sheet undergoes a review process with the applicable state environmental agency(ies). You can check on the status of the review process here. Please read the disclaimer on the status page. While we have tried to present a summary of the essential information on this topic, you should be aware that other items, such as local regulations, may apply to you.
What You Need to Know
Used oil is not inherently hazardous, but if it contains certain additives, or if it has become contaminated with other solvents, it can fall under the hazardous waste rules.
The term used oil includes any petroleum-based or synthetic oil that has been used, such as engine oil, sludge from used oil tanks, transmission fluid, refrigeration oil, compressor oil, hydraulic fluid, etc. As oil circulates through a car's engine, it may become contaminated with heavy metals, including lead. High concentrations
of lead may make used oil a hazardous waste. Oil may also become contaminated through contact with gasoline, which could make the used oil a hazardous waste due to benzene contamination and/or flammability. In addition, oil can also become
contaminated with products of incomplete combustion, which contain a number of known carcinogens.
You can avoid the burden of treating used oil as a hazardous waste:
- If you do not contaminate it with other fluids, and
- If you handle and store it properly, and send it to an approved used oil processor by a certified transporter.
This fact sheet will tell you what you need to do to avoid problems with used oil.
The Indiana Department of Environmental Management (IDEM) has prepared a guidance document to help auto recyclers manage used oil. Much of that information is included in the fact sheet below. You can access the link to IDEM's Compliance Manual for Auto Salvage Facilities under Other Relevant Resources.
The federal Environmental Protection Agency (EPA) views used oil as a marketable product that can be sent off-site for recycling. However, EPA also recognizes that if used oil is not properly handled, it can cause significant environmental damage. For these reasons, used oil has special rules that don't apply to some other materials. These rules deal with the storage of oil, cleanup of spills and transport of oil off-site.
The state of Indiana has adopted the federal used oil management standards. In addition, the state has implemented a stricter provision regarding mixtures of used oil with characteristic hazardous waste, and, does not allow used oil as a dust suppressant.
Used oil is not regulated as a hazardous waste if it is recycled or burned as a fuel. This means that your used oil, if not mixed or contaminated with hazardous waste, can be managed under the used oil regulations (see link below). Some examples of used oil include used engine oil, lubricating oil, gear oil, transmission fluid and hydraulic fluid.
Mixtures of Used Oil. All mixtures of used oil with characteristic hazardous waste are subject to management under the state's hazardous waste rules. This is different from the federal rule.
Burning Used Oil as Fuel. Burning used oil for disposal is illegal. However, the following kinds of used oils that may be burned in space heaters:
- Any used oil from do-it-yourself oil changers who generate used oil as a household waste;
- On-specification
oil form any source that meets the following criteria:
- Flash point 100 degrees Fahrenheit minimum
- Arsenic 5 parts per million (PPM) maximum
- Cadmium 2 ppm maximum
- Chromium 10 ppm maximum
- Lead 100 ppm maximum
- Total halogens 4000 ppm maximum
- PCB 2 ppm maximum
- Off-specification used oil provided that the heater burns only used oil that the owner or operator generates, the heater is designed for a maximum capacity of not more than 0.5 million BTU per hour the combustion gases from the heater are vented to the outside.
If your business burns used oil for energy recovery, check with your state or local air quality division to inquire about air quality requirements, and check with state building code personnel to inquire about building codes for the installation and use of the burner.
Used Oil Management. As a used oil generator, you must ensure that used oil is properly managed by a recycling or disposal company. The best way to manage used oil is to send it off-site to a recycling company. The regulations encourage different recycling options such as reconditioning, refining, reusing or burning for energy recovery. See the link to used oil management companies under Other Relevant Resources.
Uses of Used Oil. It is illegal to dispose of used oil improperly. Note the following important restrictions:
- Do not discharge used oil to sewers, drainage ditches, septic tanks, or streams.
- Do not dispose of used oil in landfills or mix used oil with wastes that will be disposed of in landfills.
- Do not mix used oil with gasoline or cleaning solvents. The resulting mixture may be a hazardous waste. This classification brings into effect a lot of additional regulations.
- Do not use used oil for road oiling, dust control, weed control or for similar purposes.
Storage of Used Oil. Used oil must be stored in tanks or containers (including DOT approved drums) that are in good condition. This means:
- No severe rusting;
- No bulging or major dents; and
- No visible leaks.
Many of the used oil regulations relate to good housekeeping practices. As a used oil generator, you must:
- Label all storage containers or tanks with the words "Used Oil;"
- Store used oil in containers or tanks in good condition;
- If there is a leak of used oil: stop the leak, contain it, clean it up and properly manage the cleanup materials;
- Use a transporter with an EPA identification number to ship used oil off-site.
Used Oil Spill Prevention. If you handle oil or oil products at your facility, you may be subject to the Spill Prevention Control and Countermeasure (SPCC) regulations. These regulations require that companies prevent and contain discharges of oil or petroleum products.
In determining whether these regulations apply, you must consider the capacity of your tanks and containers and not the actual amount of oil stored. You should be aware that the definition of oil is very broad and includes heating oil, crude oil, mineral oil, gasoline and diesel fuel. If you are subject to the SPCC rules, you must provide secondary containment for oil or petroleum product storage units to contain any releases. You must also prepare a written SPCC plan that describes all measures taken at your facility to prevent and control a release of oil or petroleum products.
The SPCC plan must be written within six months after you begin storing oil and it must be updated every three years, or whenever significant changes in oil storage occur. The SPCC plan must be signed by your management and certified by a professional engineer. You management must review and sign the plan every three years, even when there are no changes. The SPCC plan must be kept on-site and be available for review.
Oil Spills. If a spill occurs, you must perform the following cleanup steps:
- Stop the release;
- Contain the released used oil;
- Clean up and properly manage the released used oil and other materials; and
- If necessary, repair or replace any leaking used oil storage containers or tanks prior to returning them to service.
- Notify the Department Spill Hotline by calling 1-888-233-7745.
Links to the Regulations. Use the following links to view the regulations pertaining to used oil storage and management.
Indiana Used Oil Management Regulations (Article 13)
When an inspector comes to your facility, there are certain things he or she checks to see if you are in compliance with environmental regulations. It makes good sense for you to think ahead and perform a "self-audit" and catch and correct problems before they result in penalties. Also, there are some compliance incentives associated with self-audits (see Audit Policy Page).
Use the following list to audit your used oil storage areas and management procedures.
- Is used oil stored in drums, tanks or other containers that are in good condition? Open containers, and rusting or leaking containers cannot be used for oil storage.
- Are used oil storage containers and tanks properly labeled? All used oil storage tanks must be labeled "Used Oil." If underground tanks are used, then the fill pipes should be labeled.
- Is the area around the used oil storage containers free of releases? Releases must be stopped and the released material cleaned up and managed properly. If a release of used oil occurs, it must be contained and reported to the Department of Environmental Management.
- Do you have a SPCC plan? Verify whether your facility is subject to the SPCC rules. If so, maintain your plan, update it every three years and keep on-site for review.
- Is used oil transported to a recovery facility by a certified transporter? Check your records and verify that all shipments of used oil were removed from your property by a state certified transporter.
- Is solvent or other materials mixed with used oil? Verify that there are separate, clearly labeled containers for each type of material, and that used oil is not mixed with solvents and other materials.
Best Management Practices (BMPs)
Most regulations tell you what you have to do to be in compliance, but they don't explain how to do it. That's where "best management practices" come into play. BMPs are proven methods that help you to get into compliance and stay there. The following BMPs are recommended for used oil storage areas and management procedures.
- Train your employees on the proper methods for handling used oil.
- Do not contaminate used oil with even small amounts of gasoline, brake cleaner, carburetor cleaner, or other solvents. Even small amounts of solvents turn recyclable oil into a hazardous waste.
- Keep storage containers closed when not actively adding or removing material.
- When storing drums keep an aisle space between drums to allow for inspection for leaks and damage.
- Install secondary containment to prevent the release of used oil to the environment.
- Inspect containers and secondary containment structures on a weekly basis to be certain that they are in good condition. Keep written records of these inspections for at least 3 years.
- Try to prevent spills when dismantling vehicles. If spills do occur, clean up with rags. After wringing out the saturated rag into the used oil drum, you can have the rags laundered.
- Avoid using absorbents for oil spills unless there is a threat of the spill spreading to soil or water. Oily absorbents must be evaluated prior to disposal to determine whether they are hazardous or nonhazardous.
- Before contracting a transporter for your used oil, make sure to check for the transporter's state certification.
- Get receipts for used oil shipments and store them in your records for at least 3 years.
- For more information, contact the Indiana Department of Environmental Management (IDEM) at 800-451-6027 or 317-232-8603.
- Report spills and environmental emergencies immediately to IDEM by telephone at 1-888-233-7745.
- Submit a pollution complaint online through the IDEM Pollution Complaints Clearinghouse.