ECAR Fact Sheet for Colorado
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 insoluble, persistent and may contain toxic chemicals and heavy metals. If spilled on the ground, poured down storm drains or disposed of with trash, it can pollute surface water or groundwater. 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.

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.

Regulations

The Colorado Department of Public Health and Environment (CDPHE) has adopted the federal used oil regulations. Colorado utilizes the “used oil mixture rule,” which allows a mixture of used oil and a hazardous waste that exhibits a characteristic of hazardous waste to be regulated as used oil, provided the resulting mixture does not exhibit hazardous waste characteristics.

However, if the state determines that the mixture was made to “avoid” having to treat the mixture as a hazardous waste, it will be considered “treatment” of the hazardous waste and therefore, require a hazardous waste permit.

In the state of Colorado, used oil is not regulated as a hazardous waste if it is recycled or burned as a fuel. This means that your used oil 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.

Burning Used Oil as Fuel. You 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 used oil generators;
• The heater is designed to have a maximum capacity of not more than 0.5 million Btu per hour; and
• The combustion gases from the heater are vented to the ambient air.

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.

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.

Colorado’s Division of Oil and Public Safety regulates aboveground petroleum storage tanks with capacity between 660 gallons and 39,999 gallons and underground storage tanks with capacity greater than or equal to 110 gallons.

As a used oil generator, you must:

• Label all storage containers or tanks with the words "Used Oil;"
• Label fill pipes used to transfer used oil into underground storage 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.

Transportating Used Oil. Used oil recyclers that transport your used oil must have an EPA Identification Number. You may self-transport up to 55 gallons of used oil in your own vehicle to an approved collection center or an aggregation point owned by your company without obtaining an EPA Identification Number as a used oil transporter.

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:

1. Stop the release;
2. Contain the released used oil;
3. Clean up and properly manage the released used oil and other materials; and
4. If necessary, repair or replace any leaking used oil storage containers or tanks prior to returning them to service.
5. At minimum, call the Colorado 24-hour Emergency Spill/Release Reporting Line at 877-518-5608 and the Local Emergency Planning Committee at 303-273-1622, immediately or within 24-hours. Refer to the Spill Response Fact Sheet to determine your reporting requirements.

Links to the Regulations. Use the following links to view the regulations pertaining to used oil storage and management.

Colorado Management Standards for Used Oil Generators

Colorado Storage Tank Regulations (7 CCR 1101)

Federal Standards for the Management of Used Oil

Technical Standards And Corrective Action Requirements For Owners And Operators Of Underground Storage Tanks (UST), Code of Federal Regulations, 40 CFR Part 280

Self-Audit Checklist

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.

1. 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.
2. 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 “Used Oil.”
3. 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, at minimum, it must be contained and reported to the CDPHE and the Local Emergency Planning Committee, immediately or within 24-hours. Refer to the Spill Response Fact Sheet to determine your reporting requirements.
4. 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.
5. 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. 
6. 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.

Contacts

1. For more information, contact the Colorado Department of Health and Environment’s technical assistance line at 303-692-3320, or toll-free at 888-569-1831, if outside of the 303 area code.
2. To report a spill or leak, at minimum, call the Colorado 24-hour Emergency Spill/Release Reporting Line at 877-518-5608 and the Local Emergency Planning Committee at 303-273-1622, immediately or within 24-hours. Refer to the Spill Response Fact Sheet to determine your reporting requirements.
3. To report an environmental incident or complaint, contact the nearest regional office.

Related ECAR Fact Sheets

1. Used Oil Filters.
2. Hazardous Waste.
3. Spill Response Fact Sheet

Other Relevant Resources

1. Colorado Used Oil Generators Checklist
2. Colorado Used Oil Transporter Checklist
3. Colorado's Automotive Salvage Yard Waste Management Practices

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