-Z-J 2-007
 Wednesday
 May 20, 1992
Part III



Environmental

Protection  Agency

40 CFR Part 261
Hazardous Waste Management System;
General; Identification and Listing of
Hazardous Waste; Used Oil; Rule

-------
           Federal Register /Vol. 57. No. 98 / Wednesday, May 20,  1992 /  Rules and Regulations
21524
ENVIRONMENTAL PROTECTION
AGENCY

40 CFR Part 261
[FRL-530-Z-92-006; 4118-4]

Hazardous Waste Management
System; General; Identification and
Listing of Hazardous Waste; Used Oil

AGENCY: Environmental Protection
Agency.
ACTION: Final rule.
 SUMMARY: EPA is today promulgating a
 final listing decision for used oils based
 upon the technical criteria provided in
 the Resource Conservation and
 Recovery Act (RCRA) sections 1004 and
 3001 and in 40 CFR 261.11 (a)(l) and
 (a)(3). EPA has decided not to list used
 oils destined for disposal as hazardous
 waste based on the rinding that all used
 oils do not typically and frequently meet
 the technical criteria for listing a waste
 as hazardous waste. This rule, therefore,
 preserves the status quo for used oil
 destined for disposal. EPA today is
 promulgating a modification to the
 current exclusions from the definition of
 hazardous waste in 40 CFR 261.4 to
 provide an exemption for certain types
 of used oil filters. The Agency today is
 also providing public notice of the EPA's
 deferral on a decision whether or not to
 list residuals from the reprocessing and
 re-refining of used oil at this time.
    The Agency is not taking final action,
 at this time, on a listing determination
 and/or management standards for used
 oils that are recycled as  proposed in
 1985 and 1991. The Agency will, in the
 near future, make a final decision on
 listing of used oil destined for recycling
  and appropriate management standards
 for used oil handlers under the authority
  of RCRA section 3014. If EPA
  promulgates additional management
  standards, service station dealers may
  be eligible to qualify for the
  Comprehensive Environmental
  Response, Compensation, and Liability
  Act (CERCLA)  section 114(c) liability
  exemption. The Agency also may
  propose  standards controlling the
  burning of used oil in boilers and
  furnaces at a later date.
  EFFECTIVE DATE: June 19,1992.
  ADDRESSES: The docket for this
  rulemaking and regulatory decision is
  available for pubh'c inspection at room
  2427, U.S. Environmental Protection
  Agency, 401M Street, SW., Washington,
  DC 20460 from 9 a.m. to 4 p.m., Monday
   through Friday, except for Federal
  holidays. The docket number is F-91-
  UOLF-FFFFF. The public must make an
   appointment to review docket materials
                                        by calling (202) 260-9327. The public
                                        may copy a maximum of 100 pages from
                                        any regulatory document at no cost.
                                        Additional copies cost $.20 per page.
                                        FOR FURTHER INFORMATION CONTACT:
                                        For general information contact the
                                        RCRA Hotline, Office of Solid Waste,
                                        U.S. Environmental Protection Agency,
                                        401M Street, SW., Washington, DC
                                        20460; Telephone (800) 424-9346 (toll
                                        free) or, in the Washington, DC,
                                        metropolitan area telephone (703) 920-
                                        9810.                               ,
                                          For information on specific aspects ol
                                        this rulemaking and regulatory decision,
                                        contact Ms. Rajni D. Joglekar (202) 260-
                                        3516 or Ms. Eydie Pines (202) 260-3509,
                                        U.S. EPA, 40l M Street, SW.,
                                        Washington, DC 20460.
                                         SUPPLEMENTARY INFORMATION: The
                                         contents of today's notice are listed in
                                         the following outline:
V. Used Oil Filter Exemption
  A. Agency's Decision
  B. Response to Major Comments
VI. Used Oil Re-refining and Reprocessing
    Residuals
VII. State Authorization
  A. Applicability of Rule in Authorized
    States
  B. Effect on State Authorization
VIII. Regulatory Impact Analysis
IX. Regulatory Flexibility Act
X. Paperwork Reduction Act

I. Authority

  This regulatory decision is issued
under authority of sections 1004,1006,
2002, 3001 and 3014 of the Solid Waste
Disposal Act, as amended by the
Resource Conservation and Recovery
Act, as amended by the Hazardous and
Solid Waste Amendments, and as
 amended by the Used Oil Recycling Act,
 42 U.S.C. 6901 et. seq.
                                         I. Authority                     ,
                                         n. Background
                                           A. Regulation as a Hazardous Waste
                                           B. Used Oil Recycling Act (UORA)
                                           C. Hazardous and Solid Waste
                                             Amendments (HSWA)
                                           D. November 19,1986, Decision Not to List
                                             Used Oil
                                           E. Recent Agency Activities
                                           F. September 1991 Supplemental Notice
                                           G. Development of Comprehensive Market-
                                             Based Used Oil Recycling Program
                                         ffl. Summary of Comments Relating to Final
                                             Rule
                                           A. Listing Used Oil: Summary of Major
                                             1985 & 1991  Comments
                                           B. Oil Filters: Summary of Major 1985 &
                                             1991 Comments
                                         IV. Final Listing Determination
                                            A. General
                                            B. No List Determination for Used Oil
                                             Destined for Disposal
                                            1. Toxicity of Used Oil
                                            2. Regulations Governing the Plausible
                                             Mismanagement of Used Oil Destined for
                                             Disposal
                                            a. Overview of RCRA Subtitle C
                                             regulations applicable to used oil
                                             destined for disposal
                                            b. Applicability of RCRA Subtitle I
                                             regulations to used oil destined for
                                              disposal
                                            c. Applicability of RCRA Subtitle D
                                              regulations to used oil destined for
                                              disposal
                                             d. CERCLA reportable quantities (RQs) and
                                              used oil destined for disposal
                                             e. Toxic Substances Control Act
                                              regulations and used oil destined for
                                              disposal                          .
                                             f. Clean Water Act regulations and used oil
                                              destined for disposal
                                             g. Safe Drinking Water Act regulations and
                                              used oil destined for disposal
                                             h. Coast Guard regulations and used oil
                                              destined for disposal
                                             i. Department of Transportation regulations
                                              and used oil destined for disposal
                                             j. Summary of no list decision for used oil
                                              destined for disposal
                                             C. Response to Major Comments
 II. Background
 A. Regulation as a Hazardous Waste

    On December 18,1978, EPA initially
 proposed guidelines and regulations for
 the management of hazardous wastes as
 well as specific rules for the
 identification and listing of hazardous
 wastes under section 3001 of the
 Resource Conservation and Recovery
 Act (RCRA) (43 FR 58946). At that time,
 EPA proposed to list waste lubricating
 oil and waste hydraulic and cutting oil1
 as hazardous wastes on the basis of
 their toxicity. In addition, the Agency
 proposed recycling regulations to
 regulate (1) the incineration or burning
  of used lubricating, hydraulic,
  transformer, transmission, or cutting oil
  that was hazardous and (2) the use of
  waste oils in a manner that constituted
  disposal.2
    In the May 19,1980, regulations (45 FR
  33084), EPA decided to defer
  promulgation of the recycling
  regulations for waste oils in  order to
  consider fully whether waste- and use-
  specific standards may be implemented
  in lieu of imposing the full set of Subtitle
  C regulations on potentially recoverable
  and valuable materials. At the same
  time, EPA deferred the listing of waste
  oil that is destined for disposal so that
  the entire waste oil issue could be
  addressed at one time. Under the May
  19,1980, regulations, however, any
    1 The term "waste oil" includes both used and
   unused oils that may no longer be used for their
   original purpose.
    2 "Use in a manner constituting disposal" means
   the plapement of hazardous waste directly onto the
   land in a manner constituting disposal or the use of
   the solid waste to produce products that are applied
   to or placed on the land or are otherwise contained
   in products that are applied to or placed on the land
   now codified at 40 CFR 261.2[c)(l).

-------
                fWeralRegister / Vol.  57, No. 98 / Wednesday, May 20,  1992 / Rules and Regulations
I   waste oil exhibiting one of the
I   characteristics of hazardous waste
•   (ignitability, corrosivity, reactivity, and
•   toxicity) that was disposed, or
•   accumulated, stored, or treated prior to
|   disposal, became regulated as a
     hazardous waste subject to all
     applicable Subtitle C regulations.
     B. Used Oil Recycling Act (UORA)
       In an effort to encourage the recycling
     of used oil, and in recognition of the
     potential hazards posed by its
     mismanagement, Congress passed the
     Used Oil Recycling Act (UORA) on
     October 15,1980  (Pub. L. 96-^63). UORA
     defined used oil as  "any oil which has
     been refined from crude oil, used, and as
     a result of such use, contaminated by
     physical or chemical impurities." Among
     other provisions,  UORA required the
     Agency to make a determination as to
     the hazardousness of used oil and report
     the findings to Congress with a detailed
     statement of the data and other
     information upon which the
     determination was based. In addition,
     the Agency was to establish
     performance standards and other   '
     requirements under section 7 of UORA
     as "may be necessary to protect the
     public health and  the environment from
     hazards associated with recycled oil" as
     long as such regulations "do not
     discourage the recovery or recycling of
    used oil." These statutory provisions
    originally were added as section 3012 of
    RCRA by the UORA and subsequently
    were amended and redesignated as
    section 3014 of RCRA under the
    Hazardous and Solid Waste
    Amendments of 1984.
     In January 1981,  EPA submitted to
    Congress the used oil report mandated
    by section 8 of the UORA.3 In the report,
    EPA indicated its intention to list both
    used oil and unused waste oil as
    hazardous under section 3001 of RCRA
    based on the presence of a number of
    toxicants in crude  or refined oil [e.g.,
    benzene, naphthalene, and phenols), as
    well as the presence  of contaminants in
    used oil as a result of use (e.g., lead,
    chromium,  and cadmium). In addition,
    the report cited the environmental and
    human health threats posed by these
    used oils and unused waste oils,
    including the potential threat of
    rendering ground water non-potable
    through contamination.

    C. Hazardous and Solid Waste
   Amendments (HSWA)
     On November 8,1984, the Hazardous
   and Solid Waste Amendments (HSWA)
   to RCRA were signed into law. In
   addition to many other requirements,
   HSWA reemphasized that the protection
   of human health and the environment
   was to be of primary concern in the
   regulation of hazardous waste. Specific
   to used oil, the Administrator was
   required to "promulgate regulation *  * *
   as may be necessary to protect human
   health and the environment from
   hazards associated with recycled oil. In
   developing such regulations, the
   Administrator shall conduct an analysis
   of the economic impact of the
   regulations on the oil recycling industry.
   The Administrator shall ensure that
   such regulations do not discourage the
  recovery or recycling of used oil
  consistent with the protection of human
  health and the environment." (Emphasis
  added to highlight HSWA language
  amending RCRA § 3014(a) (see section
  242, Pub. L. 98-616).}
 :   HSWA required EPA to propose
  whether to identify or list used
  automobile and truck crankcase oil by
  November 8,1985, and to make a final
  determination as to whether to identify
  or list any or all used oils by November
  8,1986. On November 29,1985 (50 FR
  49258), EPA proposed to list all used oils
  as hazardous waste, including
  petroleum-derived and synthetic oils,
  based on the presence of toxic
  constituents at levels of concern during
  and after use. Also on November 29,
  1985, the Agency proposed management
  standards for recycled used oil (50 FR
 49212) and issued final regulations,
 incorporated at 40 CFR part 266, subpart
 E, prohibiting the burning .of off-
 specification used oil fuels 4 in non-
 industrial boilers and furnaces (50 FR
 49164). Marketers of used oil fuel and
 industrial burners of off-specification
 fuel are required to notify EPA of their
 activities and to comply with certain
 administrative requirements. Used oils
 that meet the used oil fuel specification
 are exempt from most of the 40 CFR part
 266, subpart E regulations.
   On March 10,1986 (51 FR 8206), the
 Agency published a supplemental notice
 requesting comments on additional
 aspects of the proposed listing of used
 oil as hazardous. In particular,
 commenters to the November 29,1985,
 proposal suggested that EPA consider a
 regulatory option of only listing used oil
 as a hazardous waste when disposed,
 while promulgating special management
 standards for used oil that is recycled.
   The supplemental notice also contained
   a request for comments on additional
   issues related to the "mixture rule" (40
   CFR 261.3(a)(2)(iv)), on test methods for
   determining halogen levels in used oils,
   and on new data on the composition of
   used oil and used oil processing
   residuals.
      Report to Congress: Listing of Waste Oil as a
   Hazardous Waste Pursuant to section [81(21, Pub L
   96-163; U.S. EPA, 1991.
  4 Used Oil that exceeds any of the following
specification levels is considered to be "off-
specification" used oil fuel under 40 CFR 266.40(e):
Arsenic—5 ppm, Cadmium—2 ppm, Chromium—10
ppm, Lead—100 ppin, Flash Point	100 °F
minimum, Total Halogens—4,000 ppm.
  D. November 19,1986, Decision Not To
  List Recycled Used Oil

    On November 19,1986, EPA issued a
  decision not to list as a hazardous waste
  used oil that is recycled (51 FR 41900).
  At that time, it was the Agency's belief
  that the stigmatic effects associated
  with a hazardous waste listing might
  discourage the recycling of used oil,
  thereby resulting in increased disposal
  of used oil in uncontrolled manners.
  EPA stated that several residues,
  wastewaters, and sludges associated
  with the recycling of used oil may be
  evaluated to determine if a hazardous
  waste listing for these residuals was
  necessary, even if used oil was not
  listed as a hazardous waste. EPA also
  outlined a plan that included making a
  determination of whether or not to list,
  as a hazardous waste, used oil that is
  disposed and promulgation of special
  management standards for recycled oil.
    EPA's decision not to list used oil as a
  hazardous waste based on the potential
  stigmatic effects was challenged by the
  Hazardous Waste Treatment Council,
  the Association of Petroleum Re-
  refiners, and the Natural Resources
  Defense Council. The petitioners
  claimed that (1) the language of RCRA
  indicated that in determining whether to
  list used oil as a hazardous waste, EPA
  may consider technical characteristics
  of hazardous waste, but not the
  "stigma" that a hazardous listing might
 involve, and (2) that Congress intended
 EPA to consider the effects of listing on
 the recycled oil industry only after the
 initial listing decision.
   On October 7,1988, the Court of
 Appeals for the District of Columbia
 found that EPA acted contrary to law in
 its determination not to  list used oil
 under RCRA § 3001 based on the
 stigmatic effects. (See Hazardous Waste
 Treatment Council v. EPA, 861 F.2d 270
 (D.C. Cir. 1988) [HWTC I].) The court
 ruled that EPA must determine whether
 to list any used oils based on the
 technical criteria for waste listings
 specified in the statute and in EPA's
 implementing regulations.

E. Recent Agency Activities
  After the 1988 court decision, EPA
began to reevaluate its basis for making
a listing determination for used oil. EPA
reviewed the  statute, the 1985 proposed

-------
rule, and the many comments received
on the proposed rule. Those comments
indicated numerous concerns with the
proposed listing approach. One of the
most frequent concerns voiced by
commenters was related to the quality
and "representativeness" of the data
used by EPA to characterize used oils in
1985. Numerous commenters indicated
that "their oils" were not represented by
the data and, if they were represented,
those oils were characterized after being
mixed with other more contaminated
oils or with other hazardous wastes.
Many commenters submitted data
demonstrating that the used oils they
generate, particularly industrial used
 oils, did not contain high levels of
 toxicants of concern.
   In addition, the Agency recognized
 that much of the  information  in the 1985
 used oil composition data is several
 years old, as most of the information
 was collected prior to 1985. Since the
 time of that data gathering effort, the
 composition of used automotive  oil may
 have been affected by the phase-down
 of lead in gasoline. The Agency also
 recognized the need to collect analytical
 data addressing specific classes of used
 oils as collected and stored at the point
 of generation (i.e., at the generator's
 facility).               ,
    Finally, the toxicity characteristic
  extraction procedure (EP) (45 FR 33119,
 May 19,1980) identified certain used oils
  as hazardous. Due to the possibility of
  changes in used oil composition
  described above and promulgation of
  the new toxicity characteristic (TC) rule
  (55 FR 11798, March 29,1990), the
  Agency recognized that additional data
  to characterize the toxicity of used oil
  was needed prior to making a final
  hazardous waste listing determination.
  F. September 1991 Supplemental Notice
     On September 23,1991, EPA published
  a Supplemental Notice of Proposed
  Rulemaking (56 FR 48000). The 1991
  Supplemental Notice presented
  supplemental information gathered by
  EPA and provided to EPA by individuals
  commenting on previous notices on the
  listing of used oil and used oil
  management standards. As discussed
   above, numerous commenters on the
   1985 proposal to list used oil as a
   hazardous waste contended that the
   broad listing of all used oils would
   unfairly subject them to stringent
   regulation because their used oils are
   not hazardous. Based on those
   comments, the Agency has collected a
   variety of additional information
   regarding various types of used oil,  the
   management of these used oils, and the
   potential health and environmental
    effects posed when these used oils are
mismanaged. The 1991 Supplemental
Notice presented this new information
to the public and requested comment on
the information, particularly on the issue
of whether and how the information
suggests new concerns that EPA should
consider in deciding whether to finalize
all  or part of its 1985 proposal to list
used oil as a hazardous waste.
  In addition, the 1991 Supplemental
Notice expanded upon the November 29,
1985, proposal (50 FR 49258) to list used
oils as hazardous and a March 10,1986,
Supplemental Notice (51 FR 8206) by
discussing regulatory alternatives not
previously presented in the Federal
Register. Based on the public comments
received relative to these two notices,
 the Agency investigated several
 important aspects of used oil regulation.
 For these aspects, the Agency identified
 alternative approaches that were not
 presented explicitly in the earlier
 notices. Those alternatives were
 presented in the 1991 Supplemental
 Notice.     '               .
    The  1991 Supplemental Notice also
 discussed the Agency's proposal to
 amend 40 CFR 261.32 by adding four
 waste  streams from the processing and
 re-refining of used oil to the list of
 hazardous wastes from specific sources.
 The Agency noted its intention to
 include these residuals in the definition
  of used oil in its November  29,1985,
  proposal to list used oil as hazardous.
  The wastes from the processing and re-
  refining of used oil, which are more fully
  described later, include process
  residuals from the gravitational or
  mechanical separation of solids, water,
  and oil; spent polishing media used to
  finish used oil; distillation bottoms; and
  treatment residues from primary
  wastewater treatment.
    The 1991 Supplemental Notice also
  included a description of several
  approaches the Agency was considering
  for the used oil management standards
  (in addition to, or in place of, those
  proposed in 1985).
   G. Development of Comprehensive,
  Market-Based Used Oil Recylcling
  Program
     In  developing management standards,
   EPA's efforts will be focused on
   avoiding any damage to existing
   recycling markets for used oil consistent
   with protection of human health and the
    environment. At the same time,
   however, the Agency is interested in
    obtaining the optimal level of used oil
    recycling. In the Agency's 1991
    Supplemental Notice, EPA identified
    several innovative market-based
    approaches that it was considering  in
    the process of developing a used oil
    management program that would be
based on a melding of its authorities
under RCRA and the Toxic Substances
Control Act (TSCA).   .
  EPA has devoted considerable
resources toward the development of
alternative market-based management
programs. The Agency's preliminary
examination indicates that there are
important linkages between possible
section 3014 management standards and
the design of alternative incentive
systems. In general, management
standards that impose significant costs
on used oil handlers may hamper the
effectiveness of market-based programs
because they discourage recycling and
 create unintended opportunities for
 fraud. Furthermore, management
 standards that are compatible with a
 particular market-based program (or no
 program at all) may be incompatible
 with other plausible alternative
 programs. The Agency believes that the
 success of any market-based program
 could be significantly affected by the
 design of incentive-compatible
 management standards.
   Accordingly, when EPA issues its  '
 rulemaking on recycled used oil, it will
 address the issue of market based
 approaches. In doing so, the Agency will
 consider how market-based approaches
 to used oil recycling can complement
 management standards, promote
  environmentally responsive behavior
  and minimize compliance costs.
  III. Summary of Comments Relating to
  Final Rule
  A. Listing Used Oil: Summary of Major
  1985 & 1991 Comments-
    Many comments were received on the
  various aspects of the proposed listing
  of used oil. Most commenters opposed
  the listing of used oil as a hazardous
  waste. The reasons given included that
  EPA's sampling was unrepresentative
  and flawed, that used oil is no more
  hazardous than virgin oil, and the belier
  that the levels of constituents EPA found
  in used oils do not present a threat to
  human health. A large number of
   commenters challenged the scope of the
   listing and provided a number of
   examples where certain used oils should
   not be included in the listing because
   they do not contain the hazardous
   constituents of concern at
   concentrations exceeding health-based
   levels that would cause the used oil to
   be listed.
     On November 29,1985 (50 FR 49239),
   EPA proposed to list all used oils as
   hazardous waste, including petroleum-
   derived and synthetic oils, based on the
   presence.of toxic constituents at levels
   of concern as a result of use or

-------
            Federal Register / Vol. 57. No. 98 / Wednesday. May 20, 1992 / Rules and Regulations     2152?
  adulteration after use. A sampling and
  analysis effort was undertaken by EPA
  in 1989 and 1990 to characterize specific
  categories of used oil to determine
  whether these used oils were hazardous
  at the point of generation. EPA's study
  was undertaken to address comments
  received in response to the November
  1985 proposal to list all used oils
  wherein commenters claimed that
  certain types of used oil were not
  hazardous at the point of generation but
  rather were adulterated subsequent to
  use,
   A number of commenters responded
  that "their" oil (such as electrical
  insulating or metalworking oil) did not
  contain toxic constituents of concerns,
  as demonstrated by EPA's  own data,
  and therefore, should not be listed as
 hazardous waste. Other commenters
 stated that used oil containing toxic
 constituents would be adequately
 regulated by the existing characteristics
 framework, such as the TC. These
 commenters believed that used oil
 exhibiting the TC and destined for
 disposal would be regulated as
 hazardous waste, while used oil  not
 exhibiting the TC should not be
 regulated under any circumstances.
   Some commenters proposed that only
 those used oils that contain certain toxic
 constituents, such as lead, arsenic,
 cadmium, chromium, 1,1,1-
 trichloroethane, tricholorethylene,
 tetrachloroethylene, toluene, and
 naphthalene, should be included in the
 listing. One  commenter indicated that
 storage tank data rather than point of
 generation data should be used to make
 a listing determination since most of the
 used oil management occurs after
 storage. Some commenters asserted that
 EPA's concern is not with used oil itself
 but the mixing of used oil with other
 constituents that may render the  used
 oil hazardous only because  of post-use
 adulteration. Therefore, instead of
 listing all used oils,  commenters
 recommended that EPA should list used
 oils as hazardous only if other
 substances have been added after the
 oil's initial use.
  The Supplemental Notice  of
 September 23,1991 (56 FR 448041],
 presented three options for identifying
 used oil as a hazardous waste. Option
 One was to list all used oils as proposed
 on November 29,1985  (50 FR 49239).
 Option Two  was to list categories of
 used oil that were found to be "typically
 and frequently" hazardous because of
 the presence of lead, polyaromatic
 hydrocarbons (PAHs), arsenic,
 cadmium, chromium, and benzene.
 Option Three was to not list used oils as
hazardous, but rely on management
  standards developed under RCRA
  § 3014 to control mismanagement of
  used oil. The commenters
  overwhelmingly supported Option
  Three, not to list used oil as a hazardous
  waste, but rely on management
  standards.
   A few commenters stated that as a
  result of EPA's program to phase down
  lead in gasoline, lead concentations in
  used oil have declined. In addition,
  some commenters claimed that EPA's
  analyses of used oil were based on too
  few samples and that these samples
  were unrepresentative of actual
  conditions. Some  commenters expressed
  a reluctance to have EPA list used oil as
  a hazardous waste, but urged EPA, if
  used oil is to be listed, to list only those
  used oils that are  disposed and not list
  used oils that are recycled.
   A few commenters supported the
 proposal to list all used oils as
 hazardous waste.  They stated that used
  oil has been historically mismanaged
 and presents a threat to human health
 and the environment.

 B. Oil Filters: Summary of Major 1985
 and 1991 Comments
   Many comments were received on the
 various issues raised by EPA concerning
 used oil filters. In response to the
 November 1985 proposal to list all used
 oil as hazardous waste, EPA received
 many comments on the effect of such a
 listing on used oil filters. Commenters to
 the 1985 rule  stated that used oil filters
 would contain used oil and, thus, would
 be classified-as hazardous waste under
 the mixture rule at 40 CFR
 261.3(a)(2)(iv). Further,  commenters
 stated that, due to  the weight of used oil
 filters, small service  stations and
 automobile repair shops would exceed
 the conditionally exempt small quantity
 generator defintion because they would
 generate greater than 100 kg of
 hazardous waste in a calendar month.
 Commenters suggested that EPA
 exclude used oil filters from the
 definition of hazardous waste. Many
 suggested that EPA require that used oil
 filters be drained prior to disposal and
 pass the "Paint Filter Test"  (SW-846
 Method 9095) to qualify for such an
 exclusion.
  A few commenters on the 1985
 proposal expressed concern with any
 exclusion from the  definition of
 hazardous waste for used oil filters.
 These commenters stated that used oil
 filters, particularly large filters, could
 contain significant  quantities of oil.
Further, these commenters pointed out
that contaminants and toxic        '   •
constitutents may be  concentrated in oil
filters. The commenters suggested that
EPA conduct additional studies on the
  environmental and human health risks
  associated with the disposal of used oil
  filters.
    In September 1991, EPA proposed to
  exempt, used oil filters from the
  definition of hazardous waste if the
  filter has been crushed or drained. Thus,
  such filters would not have to be
  managed as a hazardous waste, even if
  individual filters exhibited a hazardous
  characteristic.
    Most of the commenters supported
  EPA's proposal to exclude from the
  definition of hazardous waste (40 CFR
  261.4(b)) used oil filters that have been
  drained and crushed. Commenters to the
  September 23,1991 proposal raised the
  following two concerns regarding the
  proposed exemption:
    1. Draining and crushing are not the
  only acceptable technologies for
  removing used oil from filters and may
  not be the best technologies.
    2. Used oil filters do not exhibit the
  toxicity characteristic and should be
  exempt from Subtitle C regulation.
   Some commenters suggested that
  draining used oil filters for 24 hours was
  sufficient and that after this time, period,
  crushing was not necessary. This
 position was supported by some
 commenters that indicated that the cost
 of a crusher ranges from  $1,000 to
 $10,000, which could be prohibitive for
 smaller service stations.  One commenter
 submitted data on 31 used oil filters
 from trucks using gasoline (5 filters) and
 diesel (26 filters), which had been
 gravity drained for four to twenty hours.
 The data indicate that none of the filters
 exhibited the TC.
   Those commenters that did not
 support the exclusion stated that oil
 filters can contain significant quantities
 of used oil that draining alone will not
 remove. The  commenters disagreed as
 to what constitutes proper "draining and
 crushing." Commenters disagreed as to
 what constitutes adequate draining and
 whether crushing should be done in
 addition to draining. Some commenters
 requested that the Agency develop
 specifications for crushing. Other
 commenters stated that draining alone is
 not sufficient, but should  be followed by
 crushing/dismantling and followed by
 recycling. Their rationale  was that even
 after draining, filters contain 3 to 4
 ounces of used oil and thus, 12 million
 gallons of used oil would be disposed of
 in Subtitle D landfills annually. Those
 commenters that did not support a
 blanket exclusion for used oil filters
generally stated that the generator
 should test the filter with  the TCLP.
Based on the results of the test, the
generator should handle the filters

-------
21528
           Federal Register / Vol. 57. No.  98 / Wednesday, May 20. 1992 / Rules  and Regulations
accordingly, unless the filter will be
reclaimed.
IV. Final Listing Determination
A. General
  EPA regulations, based on RCRA
sections 1004(5) and 3001, at 40 CFR
281.11 set forth the technical criteria to
determine whether a solid waste should
be listed as a hazardous waste. EPA
used the technical criteria in 40 CFR
281.11 (a)(l) and (a)(3) in making today's
used oil listing determinations.
Subsection (a)(l) of 40 CFR 261.11
allows the Administrator to list a waste
as hazardous if the waste exhibits  any
of the characteristics of hazardous
waste. According to 40 CFR 261.11(a)(3),
a waste shall be listed as hazardous if it
"contains any of the toxic constituents
listed in appendix Vin and, after
considering the following factors, the
Administrator concludes that the waste
is capable of posing a substantial
 present or potential hazard to human
 health or the environment when
 improperly treated, stored, transported
 or disposed of, or otherwise managed.
 * * *" The factors to be considered in
 making this determination include
 toxicity, fate and transport, mobility and
 persistence, and bioaccumulation
 potential of the constitutents in the
 waste, as well as plausible
 mismanagement scenarios (40 CFR
 261.11(a)(3)(vii)) and other federal and
 state regulatory actions with respect to
 the waste (40 CFR 261.11(a)(3)(x)).
   In making a listing determination for
 used oil destined for disposal, EPA gave
 considerable attention to the current
 federal regulations governing used oils.
 EPA evaluated the technical criteria for
 listing in light of the current regulatory
 structure controlling the management of
 used oils and concluded that any
 plausible mismanagement of used oil
  that is destined for disposal is
  addressed by current requirements.
    As implied in Option Three of 1991
  Supplemental Notice, EPA preserved its
  ability to maintain the status quo if the
  Agency's analysis of existing regulations
  showed that actions have been taken to
  control the mismanagement of used oil.
  EPA finds that the current regulatory
  structure controlling the management of
  used oil destined for disposal provides
  adequate controls so that used oil will
  not pose a substantial threat to human
  health or the environment.
    Current regulations governing the
  management of used oils destined for
  disposal include: Those of EPA and the
  U.S. Coast Guard for oil discharges into
  navigable waters; U.S. Department of
  Transportation requirements; EPA
  regulations for polychlorinated
biphenyls (PCBs) under the Toxic
Substances Control Act, hazardous
waste characteristics applying to used
oil that is disposed under RCRA,
underground storage tank requirements
(UST) under RCRA; Underground
Injection Control (UIC) permits under
the Safe Drinking Water Act; Spill
Prevention, Control and
Countermeasures (SPCC) plans  and
National Pollutant Discharge
Elimination System (NPDES) storm
water regulations under the Clean
Water Act; and the phase down of lead
in gasoline under the Clean Air Act. In
combination, application of these
controls imposed by EPA and other
federal agencies prevent the
mismanagement of used oil to such an
extent that used oil destined for disposal
is unlikely to pose a substantial present
or potential hazard to human health and
the environment.
   EPA  also recognizes that several
 states regulate used oil as a hazardous
waste,  and some states regulate it as a
 special waste. Several states ban the
 disposal of used oil in municipal solid
 waste landfills (MSWLFs). A used oil
 handler must comply with all state
 requirements applicable to used oil in
 his/her state, in addition to any Federal
 requirements that apply.
 B. No List Determination for Used Oil
 Destined for Disposal
    In making the no list determination for
 used oil that is destined for disposal,
 EPA used the technical criteria
 discussed in Section IV.A.
 1. Toxicity of Used Oil
    In the 1991 Supplemental Notice, EPA
 proposed to expand the basis for listing
 gasoline-powered engine crankcase
 used oil to reflect the presence of three
 toxic polynuclear aromatic
 hydrocarbons (PAHs): Benzo(a]pyrene,
 benzo(bjfluoranthene, and
 benzo(k)fluoranthene. EPA based this
  expansion on the analysis of two
  samples of automotive crankcase used
  oil analyzed for benzo(k)fluoranthene
  and four samples of automotive
  crankcase used oil analyzed for
  benzo(a)pyrene and
  benzo(b)fluoranthene. With respect to
  the presence of PAHs in used oil, EPA
  believes that the current regulatory
  structure can control the
  mismanagement of recycled used oil
  containing toxic PAHs.
    Based on the 1989/90 sampling and
  analysis effort the Agency tentatively
  determined that a high proportion of
  used oils from gasoline-powered engine
  exhibited the TC for lead and benzene.
  Other categories of used oil did not
  exhibit the TC in such a high proportion
and, in fact, did not meet the criteria for
listing since they did not contain
constituents of concern (constituents of
the TC) at levels that could pose a risk
to human health and the environment.
The phase down of lead in gasoline
under the Clean Air Act has resulted in
subsequent reduction in lead
concentrations in used oil. In addition,
in accordance with the Clean Air
Amendments, additional phase downs
are scheduled to occur, thus further
reducing the lead concentration. The
lowered lead concentrations in used oil
reduce the potential for harm to human
health and the environment from
mismanagement.
2. Regulations Governing the Plausible
Mismanagement of Used Oil Destined
for Disposal
   Regulatory programs currently in
place control used oil generators,
transporters, collectors and recyclers.
 Since  1985, EPA has promulgated
 several regulatory programs that
 directly affect the management of used
 oil destined for disposal (e.g., the TC,
 the UST program, the MSWLF rule, the
 NPDES Storm Water program, and the
 Land Disposal Restrictions (LDRs). Also,
 several other regulatory programs that
 were in place even prior to 1985
 continue to control some used oil
 management practices (e.g., U.S.
 Department of Transportation (DOT)
 shipping and handling requirements).
 After assessing the extent and potential
 success of current regulatory programs
 and their effect on the disposal of used
 oil, the Agency believes that the existing
 network of regulations provides
 protection from plausible disposal
 mismanagement scenerios, as discussed
  below.
    a. Overview of RCRA subtitle C
  regulations applicable to used oil
  destined for disposal. Used oils
  exhibiting one or more of the
  characteristics of hazardous waste and
  which are destined for disposal continue
  to be regulated as hazardous wastes in
  accordance with all applicable subtitle
  C regulations, except when stored in
  RCRA subtitle I underground storage
  tanks as discussed in subsection b. of
  this section. Mixtures of used oils and
  listed hazardous wastes are listed
  hazardous wastes, and used oil mixed
  with a characteristic hazardous waste
  must be managed as a hazardous waste
   if it still exhibits a characteristic.5 Such
    6 It should be noted that mixing characteristic
  hazardous waste with another material to render
  the waste nonhazardous constitutes treatment of
  hazardous waste subject to applicable standards
  under 40 CFR parts 264-265 and 270, and the
                                 Continued

-------
              federal Register / Vol.  57,  No. 98 /.Wednesday. May-20. 1992  /  Rules  and. Regulations    21529
   mixtures must be managed in
   accordance with all applicable subtitle
   C regulations. Those generators
   identified in 40 CFR 262.34s and storers
   of hazardous used oil destined for
   disposal are subject to the tank system
   requirements at subpart J of parts 264
   and 265. Used oils are also subject to the
   corrective action requirements of RCRA
   subtitle C, including sections 3004(u) and
   3008(h), which apply to solid waste
   management units at RCRA treatment,
   storage, or disposal facilities.
     Further, if used oil exhibits a
   characteristic  of hazardous waste and is
   destined for disposal, facilities that store
   such used oil are subject to the tank
   system requirements at 40 CFR parts 264
   or 265, subparts  J. These requirements
   are designed to prevent ground water
   contamination and other releases to the
   environment and include requirements
  for daily inspection,  tank integrity, and
  secondary containment. If used oil
  destined for disposal exhibiting a
  characteristic of hazardous waste is
  stored for greater than 90 days, the
  facility must be permitted under RCRA
  as a hazardous waste storage facility.
    It is important to note that used oils
  exhibiting the characteristic of EP
  toxicity (prior to  its revision] currently
  are prohibited from land disposal unless
  they meet the applicable treatment
  standards. Treatment standards for
  these wastes were promulgated with the
  Third Third rulemaking on June 1,1990
  (55 FR 22520). Used oils exhibiting the
  new TC, but not the characteristic of EP
  toxicity are not currently prohibited
  from land disposal, even if the
  constituent causing the waste to exhibit
  the TC is also controlled by the EP. LDR
  treatment standards for the newly
  identified TC wastes  (including the 26
  newly listed organic constituents) are
  scheduled to be promulgated by April
  1993. Used oil which is mixed with a
  listed hazardous waste must meet the
  LDR standard for the  listed waste.
I   b. Applicability of RCRA subtitle I
I  regulations to used oil destined for
I  disposal. For USTs located at permitted
  hazardous waste  facilities  subject to  .
  section 3004(u)  of RCRA, the subtitle C
  corrective action  statutory authorities
I  supersede subtitle I corrective action
I  requirements to avoid overlap in
I  regulatory authority (see 40 CFR 280.60).
I  For facilities without a final HSWA
I  permit, subtitle  I corrective action
I notification requirements of section 3010 of RCRA.
I For example, mixing spent mineral spirits used as a
I solvent (exhibiting the characteristic of ignitability
I or toxicity) with used oil to render the mineral
I spirits nonhazardous constitutes treatment.
  6 This regulation identifies regulated generators
I by quantity of waste generated duration of time
I accumulated.                '  ,  .• .    ,
  standards will apply to releases from all
  petroleum and hazardous substance
  USTs. UST corrective actions underway
  at a facility having interim status under
  RCRA subtitle C may be subject to
  review by permit writers during the
  development of the final HSWA permit.
  These ongoing corrective action
  activities may be incorporated into the
  facility's final RCRA permit (53 FR
  37176).           •
    As discussed in the September 1991
  supplemental proposal, EPA presumes
  that used oil stored in underground
  storage tanks is destined for recycling
  and currently exempt from subtitle C (40
  CFR 261.6(a)(3)(iii)); thus such tanks are
  subject to subtitle I. The Agency
  continues to believe that the subtitle I
  standards are sufficient to protect
  human health and the environment from
  the potential releases of used oil from
  USTs. In conclusion, the Agency
  continues to view subtitle I as
  applicable to used oil, with the
  exceptions noted in the preceding
 paragraph where RCRA subtitle C
 authority is in place.
   c. Applicability of RCRA subtitle D
 regulations to used  oil destined for
 disposal. Nonhazardous used oil may be
 disposed of in an industrial solid waste
 landfill or a MSWLF. EPA recently
 promulgated final disposal criteria for
 MSWLFs (October 9,1991, 56 FR 50978).
 The revised criteria were promulgated at
 40 CFR part 258 and included location
 restrictions, faciltiy  design and
 operating criteria, ground-water
 monitoring requirements, corrective
 action requirements, financial assurance
 requirements, and closure and  post-
 closure care requirements. In addition,
 many states have design and operating
 requirements governing industrial non-
 hazardous waste landfills.
   d. CERCLA reportable quantitites
 (RQs) and used oil destined from
 disposal. Any waste identified  as a
 hazardous waste (either by listing or by
 characteristic) under RCRA generally
 becomes a hazardous substance under
 CERCLA. Such designation subjects the
 hazardous waste to the section 103
 reporting requirements for releases,
 equal to or exceeding the assigned
 reportable quantity (RQ) of that
 hazardous substance. In addition,
 constituents in the used oil that are not
 defined as hazardous waste under
 RCRA may be designated hazardous
 substances under CERCLA (see 40 CFR
 part 302). Therefore,  in accordance with
 § 302.6(b) concerning mixtures or
 solutions, immediate notification is
required when an RQ or more of any of
the hazardous substances are released.
    e. Toxic Substances Control Act
  regulations and used oil destined for
  disposal. Section 6(e) of the Toxic
  Substances Control Act (TSCA)
  mandates that EPA control the
  manufacture (including import), use,
  processing, distribution in commerce,
  and disposal of PCBs. Because of the
  potential hazards posed by the
  uncontrolled use and disposal of PCBs,
  EPA has established a comprehensive
  program to control PCBs from
  manufacture to disposal. A primary use
  of PCBs, a viscous oil, was as an
  insulating material for electrical
  equipment (dielectric). PCBs were
  almost always mixed with mineral  oil,
  silicone, or other oily materials when
  used as insulating material. TSCA
  regulations prohibit the use of waste oils
  (including used oils) containing PCBs for
  dust suppression. Prohibited.uses
  include, but are not limited to, use in
  road oiling, use in general dust control,
  use as a pesticide or herbicide carrier,
  and use as a rust preventative on pipes
  (40 CFR 761.20(d)). Used oil applied for
  dust suppression must meet the
  requirements of both RCRA and  TSCA.7
   Further, a release of 1 pound of PCBs
  into the environment must be reported
  immediately to the National Response
  Center in accordance with section 103(c)
  of CERCLA. Further, under the TSCA
 PCB Spill Cleanup Policy, any spill of
 material containing 50 ppm or greater
 PCBs into sewers, drinking water,
 surface water, grazing lands, or
 vegetable gardens must be reported
 immediately (40 CFR part 761, subpart
 G). If a used oil contains PCBs, the most
 stringent, applicable reporting
 requirement must be followed.
   /. Clean Water Act regualtions and
 used oil destined for disposal. In
 addition to the UST requirements
 discussed above, the storage of used oil
 at many petroleum-related storage
 facilities is subject to SPCC regulations.8
 Under section 311(j)(i)(c) of the Clean
 Water Act, EPA established the SPCC.
 program (38 FR 34165, December 11,
 1973) to protect surface waters and
 adjoining shorelines from petroleum  and
  7 Congress banned the use of any hazardous
waste as a dust suppressant under RCRA § 3004(1).
Therefore, as noted above, any used oil that
exhibits one or more of the characteristics (other
than the characteristic of ignitability) of hazardous
waste is banned from use as a dust suppressant.
  s The SPCC regulations (40 CFR 112) currently
apply to on-shore and off-shore non-transportation
related facilities that have the potential to discharge
oil into navigable waterways and have underground
storage tank capacities greater than 42,000 gallons
or aboveground storage tank capacities of more
than 660 gallons in a single tank or an aggregate of
greater than 1,320 gallons.

-------
21530
Federal Register  /  Vol. 57. No. 98 / Wednesday. May 20, 1992 / Rules and Regulations
other oil contamination.9 Facilities
subject to the regulations each prepare
and maintain an SPCC plan, which
includes provisions for appropriate
containment or diversionary structures
to prevent discharged oil from reaching
surface waters and adjoining shorelines.
A major goal of the SPCC plan is to
ensure that SPCC-regulated storage
tanks and storage areas are designed to
protect against releases of petroleum
and other oils to navigable waters and
adjoining shorelines. "Oil", when used
in relation to Section 311 of the Federal
Water Pollution Control Act, means oil
of any kind or in any form, including,
but not limited to, petroleum, fuel oil,
sludge, oil refuse, and oil mixed with
wastes other than dredged spoil.
Concerning used oil, releases of oil to
navigable waters that (1) cause a sheen
to appear on the surface, (2) violate
applicable water quality standards, or
(3) cause a sludge or emulsion to be
desposited beneath the surface of the
water or upon adjoining shorelines, are
reportable under 40 CFR Part 110. EPA
 believes  that a significant number of
 used oil storage facilities will store used
 oil in tanks or containers prior to
 disposal. The Agency also believes that
 the SPCC requirements are designed to
 provide a sufficient level of protection to
 human health and the environment from
 potential releases of used oil to
 navigable water and adjoining
 shorelines.
   Used oil generators, storage, and
 disposal facilities may be subject to the
 storm water regulations (55 FR 47990,
 November 16,1990) promulgated under
 the Clean Water Act. The NPDES storm
 water regulations at 40 CFR 122.26
 provide  an additional layer of
 environmental protection against used
 oil disposal by industrial facilities at
 locations where runoff due to storm
 events results in releases of used oil-
 contaminated runoff to waters of the
 United States. Under these regulations,
 facilities with point source discharges of
 "storm water associated with industrial
 activity" to the waters of the United
 States, including discharges  through
 municipal separate storm sewer systems
  that ultimately reach the waters of the
  United States, must apply for a National
  Pollution Discharge Elimination System
  (NPDES) permit. "Storm water discharge
  associated with industrial activity" is
    » On October 22.1991 (58 FR 54612), EPA
  proposed revisions to the 40 CFR part 112
  requirements. The proposed rule addresses a
  number of issues, including the mandatory nature of
  most of the requirements, the required procedures
  for completion of SPCC Plans, and the addition of a
  facility notification provision. If adopted, these
  changes would improve the SPCC program's control
  of potent!tl releases of used oil.
                             defined to include runoff, snowmelt
                             runoff, and surface water runoff that is
                             discharged and is directly related to
                             manufacturing, processing, or raw
                             materials storage at an industrial facility
                             (40 CFR 122.26(b)(14)).
                               The storm water regulations
                             specifically apply to active and inactive
                             landfills, land application units, and
                             open dumps that receive or have
                             received any industrial wastes [i.e.,
                             waste from any of the categories of
                             facilities identified under 40 CFR
                             122.26(b)(14) (i) to (xi)). The storm water
                             regulations apply to those facilities that
                             are subject to both subtitles C and D of
                             RCRA. Commercial or retail outlets such
                             as service stations  or quick lube shops
                             are currently excluded from  CWA
                             permit requirements  unless EPA or a
                             State designates a particular facility for
                             permitting under section 402(p)(2)(E) of
                             the Clean Water Act.
                                g. Safe Drinking Water Act
                             regulations and used oil destined for
                              disposal. The Underground Injection
                              Control (UIC) regulations at 40 CFR
                              parts 144 through 148 were promulgated
                              pursuant to part C of the Safe Drinking
                              Water Act and, to the extent that the
                              regulations address hazardous waste,
                              RCRA. The UIC program regulates the
                              underground injection of all fluids
                              through wells. Under 40 CFR 144.12, "No
                              owner or operator shall construct,
                              operate, maintain, convert, plug,
                              abandon, or conduct any injection
                              activity in a manner that allows the
                              movement of any fluid containing any
                              contaminant into underground sources
                              of drinking water, if the presence of that
                              contaminant may cause a violation of
                              any primary drinking water regulation
                              under 40 CFR part 142 or may otherwise
                              adversely affect the health of persons."
                                 While EPA believes it is unlikely, and
                              not practical technically, for large
                              volumes of used oil to be disposed into
                              injection wells, there are cases where
                              used oil may be mixed with other fluids
                               (i.e., wastewaters or oil and gas
                               exploration and production wastes) and
                               injected into UIC wells. If the presence
                               of used oil or any constituent causes the
                               injected fluid to be  hazardous, any well
                               injecting below an underground source
                               of drinking water (USDW) must be
                               permitted for hazardous waste injection.
                               Any other well injecting a hazardous
                               waste into or above a USDW is banned,
                               and must be properly plugged and
                               abandoned.
                                 Finally, as a further measure of
                               protection, under 40 CFR part 148 the ....
                               injection of hazardous wastes for which
                               LDR treatment standards have been
                               promulgated is prohibited unless the
                               waste has been treated to meet  the
applicable standards in 40 CFR part 268
or an exemption has been granted based
on a petition submitted under 40 CFR
part 148, subpart C.
  h. Coast Guard regulations and used
oil destined for disposal. Releases of
used oil to navigable waters and
shipboard management of used oil are
governed by Coast Guard regulations
promulgated pursuant to MARPOL 73/
78.10 Of primary importance to used oil
is the regulation of bilge  slop generated
on-board ships. Bilge slop is a residual
liquid that collects through leakage,
seepage, or drainage in the holds of
ships and consists primarily of water
mixed with a small amount of oil. The
regulations  prohibit the unrestricted
discharge of oil or oily mixtures into the
sea and require that ships either retain
bilge slop on board or separate the oil
and water and retain the oil on board
until the slop and oil can be discharged
 at a licensed shore side reception
 facility. Ships more than 12 nautical
 miles from  land may only discharge oil
 or oily mixtures where the undiluted oil
 concentration is less than 100 ppm,
 provided the ship is not located in an
 ecologically sensitive area. Ships within
 12 nautical miles of land may not
 discharge oil or oily mixtures unless the
 undiluted oil concentration is less than
 15 ppm. The regulations also address the
 on shore management of bilge water at
 port reception facilities.
   i. Department of Transportation
 regulations and used oil destined for  .
 disposal. The U.S. Department of
 Transportation (DOT) regulates the
 transportation of hazardous materials in
 commerce under the authority of the
 Hazardous Materials Transportation
 Act (HMTA) (49 CFR parts 171 to 179).
 Used oil is classified as a hazardous
 material if it meets the definition of
 combustible liquid (flash point below
 200 °F, but equal to or greater than 100
 °F) or flammable liquid (flash point
 below 100 °F). Used oil generators
  (shippers) and transporters of DOT
  hazardous materials have to  comply
  with any and all applicable DOT
  regulations for identification and
  classification, packaging, marking,
    10 In 1973, the International Conference on
  Marine Pollution adopted the International       _
  Convention for the Prevention of Pollution by Ships,!
  1973. This Convention was subsequently modified  I
  by the Protocol of 1978, adopted by the International
  Conference on Tanker Safety and Pollution
  Prevention. The 1973 Convention, as modified by
  the 1978 protocol, is known as MARPOL 73/78.
  MARPOL 73/78 is an international agreement
  designed to address the problem of marine pollutioH
  from ships on a global scale. It contains five
  Annexes, each of which addresses a. different type
  of marine pollution. Annex I addresses oil-pollution!
  and is currently in effect internationally..

-------
             Federal Register  /  Vol. 57, No.  98 / Wednesday, May 20, 1992  /  Rules  and  Regulations    21531
  labeling, and shipping papers. In
  addition, used oil transporters (carriers)
  have to comply with any and all
  applicable DOT regulations for
  placarding, use of shipping papers,
  recordkeeping, reporting, and incident
  response. Used oil that is a hazardous
  waste and is destined for disposal is
  subject to those DOT regulations,
  referenced at 40 CFR part 262, subpart
  Li.                 ....
    j. Summary of no list decision for used
  oil destined for disposal. For the reasons
  discussed above, EPA believes that the
  potential scenarios under which used oil
  may be released to the environment are
  adequately controlled under existing
  regulations. According to current
  estimates, a relatively small portion of
  the used oil generated is disposed (80
  million gallons compared to over 800
  million gallons being recycled by
  burning for energy recovery and re-
  refining per year). Based on the existing
  regulations, EPA determined that it was
  not necessary to categorically list used
  oil destined for disposal, but instead will
  rely on the comprehensive set of
  existing regulatory controls, particularly
  the hazardous waste characteristics.
    Although the Agency proposed to list
  certain used oils in the September 1991
  supplemental proposal, most gasoline-
  powered engine oils already exhibit the
 I TC, and listing these used oils would not
 I affect the way these used oils must be
 I managed. In other words, the existing
  characteristics will adequately capture
 I hazardous used oils under Subtitle C
 I without a hazardous waste listing. In
 I addition, EPA believes that the current
 I regulatory framework can control the
 I mismanagement of used oil containing
 I toxic PAHs destined for disposal.
 I Therefore, EPA has determined that
 1 used oil from gasoline-powered engine
 Icrankcases need not be listed as a
 I hazardous waste to ensure its proper
•management. As for other used oils, the
I data collected in support of the 1991
 •supplemental notice continues to
 •support the conclusion that such oils are
•not typically and frequently hazardous.
[Those oils which may pose a threat on
•disposal are addressed by the current
•regulatory framework, including the
•hazardous waste characteristics!
|C. Response to Major Comments
   Most commenters supported a no list
•decision for used oil destined for
•disposal, as existing regulations,
•especially the TC rule, are adequately
•protective. These comments were
pummarized in section III.A., and
 responses were incorporated in the
 preceding preamble section. A small
 number of commenters favored listing
 all or some used oil destined for
 disposal as hazardous waste. These
 commenters cited past mismanagement
 of used oil as a primary reason for the
 necessity of a listing action. EPA
 believes, however, that the
 mismanagement incidents cited by EPA
 in the September 1991 notice occurred
 before implementation of major
 rulemakings governing storage of used
 oil. EPA believes, upon reevaluation,
 that the protective nature of these
 regulations is sufficient to guard against
 mismanagement of used oil until the
 Agency issues a hazardous waste listing
 determination for recycled used oil or
 promulgates additional management
 standards under RCRA section 3014.
   In light of the public comments
 received regarding listing of gasoline-
 powered engine crankcase oils as
 proposed in Option 2, EPA believes that
 existing regulations prevent
 mismanagement of these and other used
 oils destined for disposal.

 V. Used Oil Filter Exemption

 A. Agency Decision

   EPA is today finalizing the proposed
 exemption for used oil filters at 40 CFR
 261.4(b)(13) which identifies solid
 wastes that are not hazardous wastes.
 Today's rule reduces the burden on
 generators to make a hazardous waste,
 determination in a case where EPA has
 sufficient data to provide a categorical
 exemption. This exemption is limited to
 non-terne-plated lx used oil filters
 which have been drained to remove
 used oil. Terne-plated used oil filters are
 not included in the exemption because
 the terne plating makes the filter exhibit
 the characteristic of toxicity for lead. As
 a practical matter, if an oil filter is
 picked up by hand or lifted by
 machinery and used oil immediately
 drips or runs from the filter, the filter
 should not be considered to be drained.
   Under current RCRA subtitle C
 regulations, if a generator is intending to
 dispose of a used oil filter, the generator
 is  required to determine whether the
 used oil filter exhibits any of the
 characteristics of hazardous waste. This
 determination can be made either by
 testing or by applying the generator's
 knowledge of the waste or process that
 generated the waste. EPA issued
 guidance on this issue through a
 memo 12 which states that the TCLP can
 be performed on oil filters by crushing,
 grinding, or cutting the filter and its
 contents until the pieces are smaller
 than one centimeter and will pass
 through a 9.5 mm standard sieve. If the
 filter exhibits any of the characteristics
 of hazardous waste, the generator must
 manage it in accordance with subtitle C
 requirements.
   Oil filters are used in two categories "
 of vehicles, light duty and heavy duty.
 Light duty vehicles  include automobiles,
 passenger vans, and light duty trucks, •'•
 such as small pickup trucks. Heavy duty"
 oil vehicles include buses and
 commercial trucks,  such as dump trucks,
 tractor-trailers, mining,  or construction v
 vehicles. Oil filters may be classified
 into  two broad  categories of cartridge or
 spin-on types.13 The Filter
 Manufacturers Council (FMC)
 conducted toxicity characteristics
 testing on 35 light duty and 11 heavy
 duty spin-on oil filters. Prior to the study
 being undertaken, EPA reviewed FMC's
 sampling and analysis methodology.
   In the FMC study, the spin-on filters
 were removed from engines at operating
 temperatures and either the anti-drain
 back valves or the filter dome end was
 punctured. Then, the filters were
 allowed to gravity drain for a 12-hour
 period. According to FMC, hot-draining
 used oil filters for 12 hours is standard
 industry practice. For spin-on oil filters
 from light-duty vehicles, the study found
 that none of the 35 filters exhibited the
 TC, although lead, chromium, cadmium,
 and benzene were detected. For spin-on
 oil filters from heavy-duty vehicles, the
 study determined that 5  of the 11 filters
 exhibited the TC for lead. These were
 also the five filters that were terne-
 plated. Terne, an alloy of lead and tin,
 would account for the high
 concentrations of lead found, 12.0-74.5
 mg/1 in the waste extract. A blank
 (unused) terne-plated oil filter had a
 TCLP lead concentration of 30. mg/1.
 The remaining six oil filters from heavy
 duty vehicles did not exhibit the TC.
 FMC later clarified their comments by
 writing that it is not possible to identify
 any categories of filters or of end uses of
 filters (e.g., by engine type, engine  class,
 end use application,  filter size, visual
 inspection of filters, etc.) which
 comprise exclusively terne-coated
 filters.
  A 1990 study conducted by the Iowa
 Waste Reduction Center at the
  1" Terne is an alloy of tin and lead.
  12 The memorandum, dated October 30,1990, is
from Sylvia Lowrance, Director of the Office of
Solid Waste, to Robert L. Duprey, Director of the
Hazardous Waste Management Division in EPA
Region VIII, and addresses regulatory
determinations on used oil filters.
  13 Cartridge filters are typically a replaceable
pleated paper filter media formed in a cylinder
around a perforated metal centertube. Metal end
caps and nitrile rubber grommets are used to
prevent flow around the filter media. Spin-on filters
are essentially cartridge niters that are assembled
into a filter can or body.

-------
University of Northern Iowa showed
that 44 percent to 55 percent of the used
oil could be removed through draining
and about 88 percent could be removed
through compaction. One commenter
demonstrated, through TCLP analysis,
that light-duty used'automotive oil filters
from which used oil is removed by
pressurized air are nonhazardous. As
much as 8 ounces of used oil can be
removed in seconds by using this
method, according to  this commenter.
  Based on the data submitted, non-
terne-plated, hot-drained14 used oil
filters do not typically and frequently
exhibit the TC. The source of the hazard
exhibited by the non-terne-plated used
oil filters is the used oil they contain
prior to being drained; thus, as much of
 the oil as possible should be removed.
EPA has determined that non-terne-
 plated used oil filters that have been
 hot-drained of used oil for a minimum of
 12 hours after puncturing either the anti-
 drain back valve or the dome end do not
 appear to exhibit the TC. EPA is thus
 recommending a minimum 12-hour hot-
 drain time for punctured or pierced used
 oil filters, but is not adopting a
 regulatory standard in order to allow for
 the development of alternate used oil
 removal techniques.  Similarly, hot-
 drained and crushed filters, or
 dismantled and drained filters do not
 appear to exhibit the TC. In addition,
 light-duty automotive used oil filters that
 have been subjected to air pressure for
 oil removal do not appear to exhibit the
 TC.
    Terne-plated oil filters are not
 included in the exemption; therefore, a
 hazardous waste determination must be
 made prior to disposal in a landfill. EPA
 received inadequate data to make a
  determination on other types of filters,
  such as fuel filters, transmission oil
  filters, or specialty filters (such as cloth
  railroad oil filters). Since there is a lack
  of quantitative data on these types of
  filters, they are not included in the scope
  of the exemption being finalized today.
    The Agency is recommending that the
  recyclable used oil and other recyclable
  elements of  the oil filter, such as the
  canister, gasket, and filter paper, be
  separated and recycled. EPA is therefore
  requiring that filters qualifying for the
  exemption first have the used oil
  removed using one  of the following
  gravity hot-draining methods:
    (1) Puncturing the filter anti-drain
  back valve or the filter dome end and
  hot-draining;
     (2) Hot-draining and crushing;
     (3) Dismantling and hot-draining; or
  [4] Any other equivalent hot-draining
method which will remove used oil.
Then, once the used oil is removed, it
can be recycled (as can the scrap metal).
  Finally, EPA encourages
manufacturers of terne-plated filters to
pursue source reduction alternatives to
terne plating. EPA encourages
generators to recycle used oil and used
oil filters. In choosing the used oil
removal technique, it is important to
ensure that the operation is compatible
with the ultimate recycling procedure.
For example, if the filters are destined
for a smelter, hot-draining and crushing
may be appropriate. However, if the
filters will be separated into their
component parts (e.g., used oil, metal,
and filtration media) and recycled
separately, puncturing and gravity hot-
draining may be more appropriate since
crushing may hinder the separation of
the metal from the filtration media. EPA
 also encourages steel mills and scrap
metal recyclers to accept used oil filters,
 from which oil has been removed, as a
 solid waste for scrap feed in steel
 production.
     14 "Hot-drained" means that the oil filter is
   drained near engine operating temperature and
   above room temperature (i.e., 60 °F).
 B. Response to Major Comments
   As discussed above, EPA received
 data that indicate that most oil filters .
 from which used oil is removed do not
 exhibit a characteristic of hazardous
 waste, including toxicity. The Agency is
 not concerned about the volume of used
 oil remaining in the filters subsequent to
 draining because, according to
 commenter-submitted data, the filters
 hot-drained for at least 12 hours do not
 appear to be hazardous. EPA has
 responded to  commenters advocating
 various methods of oil removal by
 promulgating  an exemption for filters
 from which used oil has been removed
  through gravity hot-draining after
  puncturing the filter, hot-draining and
  crushing,' or dismantling and draining.
  Examples of oil removal methods
  include flushing of oil filters with
  pressurized air to drain used oil from oil
  filters, and spinning of the oil-soaked
  filter paper media removed from oil
  filters to remove residual oil. Based on
  the limited data available, it appears
  that both of these methods adequately
  remove used oil in order to make oil
  filters nonhazardous. No technical
  specifications or performance standards
  for crushing oil filters have been
  developed, although such specifications
  were requested, because inadequate
  TCLP data were received to support
   development of a standard for crushed
   filters. No correlation between crushing
   force or crushed filter height and TCLP
   results could be made from the available
   data. Moreover, crushing specifications
   could restrict the development of
alternative crusher designs and other oil
removal techniques. Supporters of the
proposed exemption contended that due
to analytical data used, filters that have
been drained for 12 or 24 hours of free
oil will not pose any significant hazards
when disposed of as nonhazardous
waste. Although the comments supplied
by the one commenter indicated that
draining for as little as four hours may
produce a nonhazardous truck filter,
EPA had inadequate data to conclude
that a four-hour hot-drain would be
adequate for all used  oil filters.
VI. Used Oil Re-Refining and
Reprocessing Residuals
   In the September 23,1991,
 Supplemental Notice  of Proposed
 Rulemaking (56 FR 48027), EPA
 proposed to list as hazardous waste four
 residuals from the reprocessing and re-
 refining of used oil. EPA's consideration
 of separate listings stemmed from the
 November 1985 proposal to list all  used
 oil as hazardous waste and the
 collection of additional data on
 residuals between 1986 and 1988.
   The specific wastes resulting from the
 reprocessing and re-refining of used oil
 that were proposed for listing as
 hazardous in the September 1991 notice
 are:
 K152;—Process residuals from the
   gravitational or mechanical
   separation of solids, water, and oil for
   the reprocessing or re-refining of used
   oil, including filter residues, tank
   bottoms, pretreatment sludges, and
    centrifuge sludges
  K153—Spent polishing media from the
    finishing of used oil in the
    reprocessing or re-refining process,
    including spent clay compounds and
    spent catalysts
  K154—Distillation bottons from the
    reprocessing or re-refining of used oil
  K155—Treatment residues from oil/
    water/solids separation in the
    primary treatment of wastewaters
    from the reprocessing and re-refining
    of used oil
    EPA received a number of comments
   on these proposed listings. Based on
   data and comment received in response
   to the proposal, EPA has  determined
   that further study is required to
   adequately characterize residuals from
   reprocessing and re-refining of used oil
   and is today deferring a decision on its
   1991 proposal to list these wastes.
     EPA's proposed listing was based on
   data gathered from recycling facilities ir
   1985 and 1986. Commenters stated that
   recycling practices  and processes had
   changed significantly in the intervening |
   five to six years. These commenters

-------
            Federal  Register / Vol. 57, No. 98 / Wednesday, May  20, 1992 / Rules and Regulations     21533
 cited that discontinued use of the acid-
 clay treatment process and the
 reduction of toxic constituents in the
 residuals.
   EPA will continue to evaluate data for
 residuals from the reprocessing and re-
 refining of used oil. EPA will evaluate
 the management practices employed at
 facilities that generate these residuals to
 determine whether such practices pose a
 threat to human health and the
 environment.

 VII. State Authorization

 A. Applicability of Rule in Authorized
 States
   Under section 3006 of RCRA, EPA
 may authorize qualified States to
 administer and enforce the RCRA
 program within the State. (See 40 CFR
 part 271 for the standards and  .
 requirements for authorization.)
 Following authorization, EPA retains
 enforcement authority under sections
 3008, 30013, and 7003 of RCRA, although
 authorized States have primary
 enforcement responsibility.
   Prior to HSWA, a State with final
 authorization administered its
 hazardous waste program entirely in
 lieu of EPA administering the Federal
 program in that State. The Federal
| requirements no longer applied in the
 authorized State, and EPA could not
I issue permits for any facilities in the
 State which the State was  authorized to
 permit. When new, more stringent •
 Federal requirements were promulgated
 or enacted, the State was obliged to
 enact equivalent authority within
 specified time frames. New Federal
 requirements did not take effect in an
I authorized State until the State adopted
| the  requirements as State law.
   In contrast, under section 3006(g) of
I RCRA, 42 U.S.C. 6926(g), new
I requirements and prohibitions imposed
Iby the HSWA take effect in authorized
• States at the same time that they take
•effect in nonauthorized States. EPA is
Idirected to carry out those requirements
land prohibitions in authorized States,
•including the issuance of permits, until
Ithe  State is granted authorization to do
Iso. However, any authorized State
[requirement that is more stringent than
 L HSWA requirement that is less
 stringent than the Federal program for
 vhich the State was authorized remains
|authorized and in effect under State law.
   Today's rule is promulgated pursuant
[to section 3001(g) of RCRA, a provision
 added by HSWA, and pursuant to
 [section 3001(b)(l) of RCRA, a non-
 ISWA provision. This rule revises and
 larrows the scope of definition of
 hazardous waste to exclude non-terne-
 plated used oil filters that have been
gravity hot-drained of used oil through
puncturing the filter anti-drain back
valve or the filter dome end and hot-
draining, hot-draining and crushing,
dismantling and hot-dfcaining, or any
other equivalent hot-draining method
which will remove used oil. The
exemption from the definition of
hazardous waste being finalized today
for used oil filters narrows the scope of
the TC rule promulgated pursuant to
HSWA authority as well as the
characteristic of EP toxicity regulation
promulgated under non-HSWA
authority. To avoid any confusion
regarding the status of used oil filters,
EPA considers the exemption to be a
HSWA rule, since it, in part, exempts
wastes from a HSWA-promulgated rule.

B. Effect on State Authorizations
  Authorized States are only required to
modify their programs when EPA
promulgates Federal standards that are
more stringent or broader in scope than
the existing Federal standards. Section
3009 or RCRA allows States to impose
standards more stringent than those in
the Federal program. For those Federal
program changes that are less stringent
or reduce  the scope of the Federal
program, States are not required to
modify their programs. See 40 CFR
271.1(k). The standard promulgated
today is less stringent than or reduces
the scope  of the existing Federal
requirements. This provision appears in
40 CFR 261.4(b)(13]. Therefore,
authorized States would not be required
to modify  their programs to adopt
requirements equivalent to or
substantially equivalent to the provision
listed above.
  Because the rule is promulgated
pursuant to HSWA, a State which
chooses to submit a program
modification may apply to receive either
interim or final authorization under
section 3006(g)(2) or 3006(b),
respectively, on the basis of
requirements that are substantially
equivalent or equivalent to EPA's.  The
procedures and schedule for State
program modifications  for either interim
or final authorization are described in 40
CFR 271.21. It should be noted that all
HSWA interim authorizations will
expire January 1,1993. (See 40 CFR
271.24(c).)
  States with authorized RCRA,
programs may already have
requirements similar to those in today's
rule. These State regulations have not
been assessed against the Federal
regulations being promulgated today to
determine whether they meet the tests
for authorization. Thus, a State is not
authorized to implement these
requirements in lieu of EPA until the
 State program modification is approved.
 Of course, States with existing
 standards may continue to administer
 and enforce their standards as a matter
 of State law. In authorized States with
 more stringent regulations, EPA will
 continue to enforce the State's more
 stringent regulations. In implementing
 the Federal program, EPA will work
 with States under cooperative
 agreements to minimize duplication of
 efforts. In many cases, EPA will be able
 to defer to the States in their efforts to
 implement their programs, rather than
 take separate actions under Federal
 authority.
  States that submit'their official
 applications for final authorization less
 than 12 months after the effective date
 of these standards are not required to
 include standards equivalent to these
 standards in their application. However,
 the State must modify its program by the
 deadlines set forth in 40 CFR 271.21(e).
 States that submit official applications
 for final authorization 12  months after
 the effective date of these standards
 must include standards equivalent to
 these standards in their application. 40
 CFR 271.3 sets forth the requirements a
 State must meet when submitting its
 final authorization package.

 VIII. Regulatory Impact Analysis

  Today's decision not to list used oil
 managed for disposal as a hazardous
 waste does not impose any new
 regulatory compliance requirements or
 costs on used oil generators or handlers.
 Although a regulatory impact analysis
 under Executive Order 12291 is therefore
 not required to support this decision,
 this section of today's preamble briefly
 summarizes  the Agency's cost and
 general impact analysis for the
 previously proposed listing option being
 considered prior to today's rulemaking.
  Costs of listing disposed used oil  were
 evaluated in the Economic Impact
 Screening Analysis  Section of the
 September 1991 Supplemental Notice
 preamble under the two headings of
 "ban on land, disposal," and "ban on
road oiling." with annual  cost estimates
 of $16.3 and $7.4 million, respectively  (56
 FR 48068-69).
  Costs of the land disposal ban (listing
 of disposed oil) are relatively low for
 two reasons. First, relatively little used
 oil is formally "land managed" in
recognized landfills, and it was assumed
in estimating costs that both household
DIY oil and non-household oil illegally
 dumped by either small or large quantity
generators would not be controlled
under the subtitle C management
requirement. In addition, in the
September 1991 cost analysis, it was

-------
21534     Federal Register / Vol. 57, No. 98 / Wednesday, May 20, 1992 / Rules and Regulations
assumed as a best estimate that 75
percent of the land-disposed oil subject
to the listing would be diverted to
recycling at relatively low cost, with
only the remaining 25 percent being
managed at higher cost in a cement kiln
or equivalent Subtitle G technology.
  For road oiling, it was similarly
assumed that the oil could be readily
diverted to other recycling at virtually
no additional cost (the cost of the ban
being attributable to the higher cost of
substitute dust suppression agents such
as calcium chloride).
  Recycling would have been promoted
somewhat by the listing of used oil
destined for disposal because disposal
would be much more costly than
recycling options. On the other hand,
there would also be a perverse incentive
towards illegal dumping and other
improper land disposal outlets as land
disposal became more costly.
IX. Regulatory Flexibility Act
  The agency certifies that, within the
scope of the Regulatory Flexibility Act,
today's decision will not have a
significant impact on a substantial
number of small entities. The regulation
imposes np new regulatory or economic
requirements on small business.

X. Paperwork Reduction Act

  This notice contains no information
collection requirements, and therefore
imposes no new paperwork burden.

List of Subjects in 40 CFR Part 261

  Hazardous waste, Recycling.
  Dated: May 1,1992.
F. Henry Habicht, II,
Deputy Administrator.

  For the reasons set forth in the
preamble, title 40 part 261 of the Code of
Federal Regulations is amended as
follows:

PART 261—IDENTIFICATION AND
LISTING OF HAZARDOUS WASTE

  1. The authority citation for part 261
continues to read as follows:
  Authority: 42 U.S.C. 6905, 6912fa), 6921 and
6922.                 -••-..-

  3. Section 261.4 is amended by adding
paragraph (b)(15) to read as follows:

§261.4  Exclusions
*    *    ft    *    *.

  [b] * * *
  (15) Non-terne plated used oil filters
that are not mixed with waste listed in
subpart C of this part if these oil filters
have been gravity hot-drained using one
of the following methods:
  (i) Puncturing the filter anti-drain back
valve or the filter dome end and hot-
draining;
  (ii) Hot-draining and crushing;
  (iii) Dismantling and hot-draining; or
  (iv) Any other equivalent hot-draining
method which will remove used oil.
*****

[FR Doc. 92-11385 Filed 5-19-92; 8:45 am]
BILLING CODE 6560-SO-M

-------