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ECAR Fact Sheet for Michigan
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

Some examples of used oil include used engine oil, lubricating oil, transmission fluid, brake fluid and hydraulic fluid.

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
  • Send it to an approved used oil recycler or processor by a registered transporter, or meet all the burning requirements and use it as fuel on-site. The regulations encourage different recycling options such as reconditioning, refining, reusing or burning for energy recovery.

This fact sheet will tell you what you need to do with used oil stored in aboveground storage containers.


Regulations

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.

In the state of Michigan, petroleum-based oils must be recycled. Other used oils are assumed to be recycled. If used oil is not recycled, the generator will need to determine if the used oil is a hazardous waste. Used oil is assumed not to be a hazardous waste unless it is mixed with a listed hazardous waste, or contains more than 1,000 ppmw total halogens – determined by a test for chlorine, bromine, fluorine, and iodine content. Used oil that is not regulated as a hazardous waste is managed under the used oil and liquid industrial waste regulations (see link below).

You must also ensure that used oil is properly managed. To ship used oil off-site, you must obtain and utilize a site identification number assigned by the Michigan Waste and Hazardous Materials Division (WHMD). A list of permitted and registered liquid industrial waste haulers and recyclers is on the Internet. Most haulers will do a simple test before picking up the waste oil. Submit waste manifests as required.

If the hauler picks up the waste oil using a consolidated manifest, obtain a receipt that documents the:

  • transporter’s company name;
  • driver’s signature;
  • date of pickup;
  • type and quantity of waste removed;
  • consolidated manifest number; and the
  • designation facility.

Keep the receipts, waste manifests, and test results or any other documentation used to characterize the oil for at least 3 years from waste shipment.

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.

Waste oil can be burned in a waste oil heater to provide heat in the winter. A DEQ Air Quality Division permit to burn used oil is not required, provided that the space heater meets all of these state requirements:

    • The fuel burning equipment must have a rated heat input capacity of not more than 500,000 BTU/hour.
    • The unit is vented to the outdoors so you do not breathe the fumes.
    • The fuel burning equipment is used only for space heating, service water heating or indirect heating.
    • Only waste oil products generated "on-site" may be converted to heat energy.
    • Only waste oil can be used in the burner, never toxic waste like solvents, paints or antifreeze.
    • Clean and maintain the burner according to the manufacturer’s directions.
    • Make sure you have all the required permits from the local and state fire marshal.

Storage of Used Oil. 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. This means:
    • No severe rusting;
    • No bulging or major dents; and
    • No visible leaks.;
  • Keep containers closed except when adding or removing waste oils.
  • Protect the containers from exposure to the weather, vandals, fire, and physical damage.
  • Use a transporter with an EPA identification number to ship used oil off-site.
  • If there is a leak of used oil: stop the leak, contain it, clean it up and properly manage the cleanup materials

Used Oil Spill Prevention. Companies are required to prevent and contain discharges of oil or petroleum products. You should be aware that the definition of oil in these regulations is very broad and includes petroleum and synthetic oils, heating oil, crude oil, mineral oil, gasoline and diesel fuel.

If you handle oil or oil products at your facility, you may be subject to the federal Spill Prevention Control and Countermeasure (SPCC) if you have a total above-ground storage capacity of 1,320 gallons of all oil. If you have a single aboveground storage tank with 660 gallon capacity or 1320 gallons or more aboveground storage capacity, you would also be subject to Michigan’s Part 5 rules. In determining whether these regulations apply, you must consider the capacity of your tanks and containers and not the actual amount of oil stored. Containers less than 55 gallons are not counted toward the SPCC threshold amount. If you are subject to the SPCC rules, you must provide secondary containment for oil 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. New facilities that become operational after February 18, 2005 must prepare and implement a SPCC Plan before beginning operation. The SPCC must be reviewed and updated every five years, or whenever significant changes in oil storage occur. The SPCC plan must be signed by your management and certified by a professional engineer. The SPCC plan must be kept on-site and be available for review. A facility in compliance with the SPCC regulations would be in compliance with the state Part 5 rules for oils when the following conditions are also met:

  • Facility has surveillance measures to detect releases from reaching surface water and groundwater
  • Use and indoor storage areas are designed, constructed, maintained, and operated to prevent releases from reaching sewers, drains, or waters of the state
  • Submit within 30 days a copy of the SPCC plan when requested by MDEQ, local emergency planning committee, or local health department
  • Report releases as required (see below)

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. Report release if required (see below). The Part 5 rules require reporting of 50 pounds onto the ground, and any amount to waters that causes sheen, oil films, foams, turbidity, color, solids, or deposits in the receiving waterbody.

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

Michigan’s Natural Resources and Environmental Protection (Act 451), Part 111 regarding Hazardous Waste Management and administrative rules

Federal EPA Standards for Used Oil

Michigan’s Natural Resources and Environmental Protection (Act 451), Part 121 regarding Liquid Industrial Waste

Michigan’s Natural Resources and Environmental Protection (Act 451), Part 167 regarding Used Oil Recycling


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.
  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, it must be contained and reported immediately to the DEQ.
  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.
  7. How are oil containers managed? Plastic bottles that have not been completely drained of oil are not recyclable. To prepare them for recycling, drain them overnight on an oil bottle draining rack. Empty oil containers not recycled may be added to the trash.

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.
  • Make sure to use a registered transporter.
  • Get receipts for used oil shipments and store them in your records for at least 3 years.

Contacts

  1. For more information about used oil or Part 5 rule requirements, contact MDEQ’s Environmental Assistance Center at 1-800-662-9278.
  2. To find out if your facility requires a SPCC, contact EPA Region V Oil Program Barbara Carr at 312-886-7187.
  3. For reporting spills/releases and pollution emergencies:
    • If into groundwater and surface water, notify the MDEQ immediately by calling 1-800-292-4706 and 911
    • If into surface water, also call National Response Center at 800-424-8802
    • Written follow-up report is required under Part 5 rules.

Related ECAR Fact Sheets

  1. Used Oil Filters.
  2. Hazardous Waste.

Other Relevant Resources

  1. MDEQ Common Used Oil Violations
  2. MDEQ Used Oil guidance
  3. SPCC information
  4. MDEQ Release reporting
  5. Recycled Materials Market Directory Oils and Solvents Category for list of recyclers

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