£
Friday
March 4, 1994
Part V
Environmental
Protection Agency
40 CFR Parts 271 and 279
Hazardous Waste Management System;
Identification and Listing of Hazardous
Waste; Recycled Used Oil Management
Standards; Final Rule
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10550 Federal Register / Vol. 59, No. 43 / Friday, March 4, 1994, / Rules and Regulations
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Parts 271 and 279
PPA/530-2-42-011; FRL-4845-2]
Hazardous Waste Management
System; Identification and Listing of
Hazardous Waste; Recycled Used Oil
Management Standards
AGENCY: Environmental Protection
Agency.
ACTION; Final rule.
SUMMARY: On September 10,1992, EPA
exempted used oil inserted into crude
oil pipelines from the part 279 used oil
management standards. EPA is today
clarifying the existing pipeline
exemption and expanding the
exemption to other petroleum refinery
applications. Today's document clarifies
that the exemption from the used oil
management standards did not intend to
exclude used oil mixed with crude oil
or natural gas liquids (hereinafter
referred to as "crude oil") in pre-
pipeline units (e.g., stock tanks,
production separators) prior to being
introduced into the crude oil pipeline.
In addition, today's rule expands the
used oil exemption to include
transportation and/or storage of
mixtures of small amounts of used oil
(i.e., less than 1%) and crude oil that are
destined for insertion into a petroleum
refining facility process at a point prior
to crude distillation or catalytic
cracking.
Today's rule exempts from the part
279 standards, used oil that is inserted
into the petroleum refining facility
process after distillation or catalytic
cracking operations provided that the
used oil meets the used oil specification
prior to insertion.
Today's rule also exempts from the
part 279 standards used oil that
incidentally enters and is recovered
from a refinery's hydrocarbon recovery
system or wastewater treatment system
(i.e., process sewer, storm sewer, or
wastewater treatment units), if the
recovered used oil is subsequently
inserted into the petroleum refinery
process.
In addition, today's rule expands the
definition of transfer facility to allow
used oil to be held more than 24 hours
but less than 35 days prior to specified
activities.
Finally, EPA is today amending the
used oil processor standards to clarify
that a specific set of on-site
maintenance, filtering, and separation
activities were not intended to be
covered under the used oil processor
standards. EPA is also correcting errors
in regulations that appeared in the May
3,1993, Federal Register.
EFFECTIVE DATE: April 4,1994.
ADDRESSES: The regulatory docket for
this rulemaking is available for public
inspection at room 2427, U.S.
Environmental Protection Agency, 401
M 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-94-UOTA-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, 401
M Street SW., Washington, DC 20460;
Telephone (800) 424-9346 (toll free) or,
in the Washington DC, metropolitan
area at (703) 920-9810.
For information on specific aspects of
this rule, contact Ms. Eydie Pines,
telephone (202) 260-3509, U.S. EPA,
401M Street SW., Washington, DC
20460.
SUPPLEMENTARY INFORMATION: The
contents of today's preamble are listed
in the following outline:
I. Authority.
II. Background.
A. Summary of Recent Regulatory Actions
Pertaining.to Used Oil.,
1. Summary of May 20,1992, Federal
Register Notice.
2. Summary of September 10,1992,
Federal Register Notice.
3. May 3,1993, and June 17,1993
Correction Notices.
B. Summary of the 1985 Comments.
C. Summary of 1991 Comments.
HI. Analysis of New Part 279 Provisions.
A. Summary of Comments from Interested
Parties.
B. Definition of petroleum refining facility,
used oil re-refining facility.
C. Used Oil Introduced into Crude Oil
Pipelines or Petroleum Refineries.
1. Used Oil Introduced into Crude Oil
Pipelines.
2. Storage and Transportation of Mixtures
of Used Oil and Crude Oil.
3. Used Oil Inserted into the Petroleum
Refining Process without Prior Mixing
and Mixtures of Greater Than One
Percent Used Oil.
4. Used Oil Inserted Into the Petroleum
Refining Process after Crude Distillation
or Catalytic Cracking.
5. Used Oil Captured by the Refinery's
Hydrocarbon Recovery System or
Wastewater Treatment System and
Inserted into Petroleum Refining Process.
6. Stock Tank Bottoms.
D. Used Oil Transportation. Definition of
Transfer Facility.
E. Used Oil Processing by Generators and
Transfer Facilities.
1. Definition of Used Oil Processor.
(A) Reconditioning used oil before
returning it for reuse by the generator.
(B) Separating used oil from wastewater to
make wastewater acceptable for
discharge or reuse.
(C) Using oil mist collectors to remove
~ droplets of used oil from in-plant air to
make plant air suitable for continued
recirculation.
(D) Removing used oil from materials
containing or otherwise contaminated
with used oil in order to remove
excessive oil.
(E) Filtering, separating, or otherwise
reconditioning used oil before burning it
in a space heater.
F. Restrictions on transporters who are not
also processors or re-refiners and
changes to the definition of transfer
facility.
G. Tracking.
H. Correction to the Regulatory Language.
1. Requirements for enforcement authority.
2. Rebuttable Presumption.
3. Characteristic Hazardous Waste.
I. Correction to the Preamble Language.
IV. State Authorization.
V. Executive Order 12866.
VI. Paperwork Reduction Act.
VII. Regulatory Flexibility Act.
VIII. Administrative Procedure Act.
Authority
The regulations promulgated today
are issued under the authority of
sections 1004,1006, 2002(a), 3014, and
7004 of the Solid Waste Disposal Act, as
amended by the Resource Conservation
and Recovery Act, and as amended by
the Used Oil recycling Act, as amended,
42 U.S.C. 6903, 6905, 6912(a), 6935, and
6974.
II. Background
A. Summary of Recent Regulatory
Actions Pertaining to Used Oil
1. Summary of May 20,1992, Federal
Register Notice
On May 20,1992, EPA published a
final listing determination for used oils
that are destined for disposal (see 57 FR
21524). The Agency determined that
used oils destined for disposal did not
have to be listed as a hazardous waste
because used oils do not typically and
frequently meet the technical criteria for
listing a waste as hazardous. EPA gave
considerable attention, in reaching its
determination, to the current Federal
regulations that govern the management
of used oils that are disposed, including
the requirement for used oil that
exhibits a characteristic of hazardous
waste under subtitle C of RCRA.
The May 20,1992, Federal Register
notice also included a categorical
exemption from the definition of
hazardous waste in § 261.4 for non-
terne-plated used oil filters that have
been hot-drained to remove used oil.
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Federal Register / Vol. 59, No. 43 / Friday, March 4, 1994 / Rules and Regulations 10551
EPA based this exemption on data
submitted to the Agency indicating that
these filters do not typically and
frequently exhibit the toxicity
characteristic.
2. Summary of September 10,1992,
Federal Register Notice
On September 10,1992, EPA
promulgated a final listing decision for
used oils jthat are recycled and
simultaneously promulgated
management standards for used oil,
codified at 40 CFR part 279 (see 57 FR
41566). EPA determined that used oil
destined for recycling did not have to be
listed as a hazardous waste because the
used oil did not meet the technical
criteria for listing a waste as hazardous,
particularity in light of the new
management standards and other federal
requirements which control the risks
posed by improper management of used
oil. The standards cover used oil
generators, transporters, processors, re-
refiners, off-specification burners and
marketers! The standards included an
exemption from the management
standards for used oil placed directly in
a crude oil pipeline.
3. May 3, J1993, and June 17,1993
Correction Notices
On May 3,1993, EPA published
technical amendments and corrections
to the May 20,1992 and September 10,
1992, Federal Register Notices (see 58
FR 26421). On June 17,1993, EPA
corrected several errors in the May 3,
1993, notice (see 58 FR 33341).
B. Summary of the 1985 Comments
Regarding Used Oil Mixed With Crude
Oil Destined for Refineries
On November 29,1985, EPA proposed
to list all used oil as a hazardous waste
(50 FR 49248). Commenters responded
that used oil mixed with crude oil be
exempt from such regulation because
the small quantities of used oil mixed
with crude oil posed no threat to the
environment when refined with crude
oil. I
C. Summary of 1991 Comments
On September 23,1991, EPA
proposed that the two exemptions from
subtitle C requirements promulgated in
1985 (see 40 CFR 261.6(a)(3) (v)-(viii))
for oil-bearing hazardous waste and
fuels derived from these wastes, also
apply to used oils. (56 FR 48026, 48042)
EPA proposed exemptions from the
used oil management requirements
(whether or not EPA ultimately listed
used oil asia hazardous waste) for: (1)
Used oils that are reinserted as
feedstocks [at primary petroleum
refineries; and (2) fuels derived from
those used oils.
Commenters (mainly the primary
petroleum refining industry) stated that
if EPA chose to list used oil as
hazardous waste, the Agency should
exempt used oil that is reintroduced
into the refinery process from hazardous
waste or used oil management standards
requirements. Commenters further
stated that if EPA did not adopt this
exemption, the entire refinery process
could be subject to hazardous waste
management requirements, including
permits. Commenters stated that this
would be unwarranted because the
reintroduction of used oil into the
refining process contributes only
insignificant concentrations of metals to
the crude oil or finished petroleum
product. Other Commenters stated that
refiners that handle used oil should be
subject to the same requirements for
used oil management as are used oil re-
refiners.
Commenters from the primary
petroleum refining industry also stated
that EPA should not limit the exemption
to those instances where used oil is
inserted before fluid catalytic cracking
or distillation, since other conversion
and distillation processes in the refinery
would also remove, alter or immobilize
impurities in the oil. They asserted that
limiting the point of insertion could
foreclose the future development of
used oil recycling activities. These
commenters also stated that limiting the
insertion point could preclude refineries
from accepting DIY oil. Commenters
asserted that DIY oil might have to
undergo certain pre-processing at
refineries prior to its insertion into the
refining process. They also asserted that
under the proposed exemption, this pre-
processing would not be exempt and
would be a hazardous waste activity.
Commenters stated that these activities
are part of the refining process.
Commenters from the primary
petroleum industry further stated that
EPA should extend the exemption to
apply to used oil inserted into the
pipeline at marketing, E&P and pipeline
facilities for use in the refinery process.
They asserted that used oil recovered
from oil and gas exploration and
production is placed in pipelines and
trucks and returned to the refinery from
other petroleum facilities. Commenters
stated that the recovered oils are useful,
valuable raw materials that are
reintroduced into the crude stream for
their economic value.
HI. Analysis of New Part 279 Provisions
On September 10,1992, EPA
promulgated a final listing decision for
used oils that are recycled and
simultaneously promulgated standards
in 40 CFR part 279 for the management
of used oil under RCRA section 3014.
Under § 279.10(g) of part 279, EPA
granted an exemption for used oils
introduced directly into crude oil
pipelines from part 279 standards at the
point at which they are introduced. EPA
did not address the proposed
exemptions for used oil inserted into the
petroleum refining facility process
either prior to or after crude distillation
or catalytic cracking.
The American Petroleum Institute
filed a petition for review of the
September 10,1992, rule, on December
8,1992, raising the issue that EPA had
not addressed the proposed exemptions
for petroleum refining, production, and
transportation in the September 10,
1992, final rule. Today's rule responds
to comments and addresses outstanding
issues related to used oil and petroleum
refining facility processes.
A. Summary of Comments From
Interested forties
Today's rule was distributed in draft
form for comment to the litigants and
intervenors concerning the 1992 rule,
and other concerned members of the
regulated community, States, and
environmental groups. The primary
substantive comments received on the
draft and EPA's responses to those
comments are summarized below.
EPA received several comments from
the petroleum industry on the
exempdon from part 279 for storage and
transportation of mixtures of used oil
and crude oil that contain less than 1%
used oil and are destined for insertion
into petroleum refining process. These
commenters objected primarily to
provisions in the draft final rule limiting
the exemption to mixtures that contain
less thaji 1% used oil. The commenters
also objected to limiting the amount of
used oil that can be directly inserted
into the petroleum refining process to
1% of the crude oil process unit
throughput at any given time. EPA has
retained the 1% limit in both cases in
today's final rule for reasons discussed
in section III.B.2 of this preamble.
EPA received comments from used oil
re-refiners (i.e., "secondary" petroleum
industry—a type of used oil processor)
regarding the regulatory status of
petroleum refineries that receive used
oil from off-site and store the used oil
on-site before mixing it with crude oil.
The draft rule proposed to regulate
petroleum refining facilities as used oil
transfer facilities in these
circumstances. Commenters stated,
however, that petroleum refiners that
receive used oil from off-site pose the
same potential concerns from receipt of
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10552 Federal Register / Vol. 59, No. 43 / Friday, March 4, 1994 / Rules and Regulations
adulterated used oil and improper
storage of used oil as re-refiners and
should therefore be subject to the
requirements for used oil processor/re-
refiners prior to mixing. EPA agrees and
has revised the draft rule accordingly.
These changes are discussed in greater
detail below.
EPA also received numerous •
comments on provisions clarifying what
constitutes a used oil processor.
Provisions contained in the draft
document would have prohibited both
on- and off-site burning of used oil
generated from specified activities that
EPA is today clarifying are not subject
to the used oil processor standards.
Commenters stated that the used oil
generated from these activities would be
suitable for burning in accordance with
the part 279, subpart G standards and
that burning should not be further
restricted. In response to these
comments, EPA has decided to allow
on-site burning of the used oil generated
from these activities but has retained the
prohibition against off-site burning. The
basis for this decision is discussed in
section III.C of today's preamble.
B. Section 279.1—Definition of
Petroleum Refining Facility
Today's rule establishes a regulatory
definition for "petroleum refining
facility." EPA believes it is necessary to
define this term in order to provide a
clear distinction between what the
Agency considers to be and regulates as
primary petroleum refining facilities
and facilities that EPA considers to be
used oil re-refiners for regulatory
purposes. Under today's rule,
"petroleum refining facility" is defined
as follows:
"Petroleum refining facility" means an
establishment primarily engaged in
producing gasoline, kerosine, distillate fuel
oils, residual fuel oils, and lubricants,
through fractionation, straight distillation of
crude oil, redistillation of unfinished
petroleum derivatives, cracking or other
processes (i.e., facilities classified as SIC
2911).
A used oil re-refiner, in contrast, is a
facility that processes used oil to
produce lube base stocks and greases,
industrial fuels, asphalt extenders,
diesel like fuels, and other products.
EPA is aware that petroleum refiners
and used oil re-refiners employ similar
production processes and produce
similar products. Consequently, the
Agency has avoided defining these
facilities in terms of the process steps
employed to produce a finished product
or the type of products produced. As
defined by today's rule, petroleum
refining facilities and used oil re-
refining facilities differ primarily in the
material that constitutes the primary
initial feed to the process. In order for
a facility to be considered a petroleum
refining facility, the material fed to the
front end of the refining process must be
comprised primarily of crude oil. In
order to be considered a used oil re-
refiner, the material entering the front
end of the process must be comprised
primarily of used oil.
C. Section 279.10(g)—Used Oil
Introduced Into Crude Oil Pipelines or
Petroleum Refining Facilities
1. Section 279.10(g)(l)—Used Oil
Introduced Into Crude Oil Pipelines
The September 10,1992, final used
oil regulations provided an exemption
at § 279.10(g) from management
standards for used oil that is placed
directly into a crude oil pipeline (see 57
FR 41613). Today's rule replaces
§ 279.10(g) with § 279.10(g)(l) which
clarifies the original intent of the
pipeline exemption. Section 279.10(g) of
the September 10,1992, final rule ;
provided that "Used oil that is placed
directly into a crude oil, oil or natural
gas pipeline is subject to the
management standards of [part 279]
only prior to the point of introduction
into the pipeline. Once the used oil is
introduced to the pipeline, the material
is exempt from the requirements of [part
279]."
EPA is concerned that the phrase,
"placed directly into a crude oil or
natural gas pipeline," can be literally
interpreted to apply more narrowly than
the Agency had intended. EPA
understands that it is standard practice
to first mix small amounts of used oil,
typically less than 1%, with crude oil in
stock tanks, production separators or
other tank units that are connected via
pipeline to the petroleum refining
facility (i.e., pre-pipeline units). It was
not EPA's intent to exclude used oil that
is mixed with crude oil in these pre-
pipeline units from the § 279.10(g)
pipeline exemption. Rather, EPA
intended to include this practice within
the meaning of "direct insertion."
Because used oil is typically inserted
into the petroleum pipeline through
these pre-pipeline units, to exclude
these units from the pipeline exemption
would effectively render the exemption
meaningless. Clearly this was not EPA's
intent. Today's rule revises the language
of the exemption to clarify that used oil
may be inserted into the pipeline via
pre-pipeline units (which contain crude
oil) exempt from the requirements of
part 279. It should be noted here that
the § 279.10(g)(l) pipeline exemption
established by today's rule is limited to
pipelines that convey crude oil from off-
site locations to the petroleum refining
facility. The exemption does not apply
to pipelines that convey crude oil from
one on-site location within a petroleum
refinery to another. If such on-site
piping contains used oil, it is exempt
only if it qualifies under
§§ 279.10(g)(2)-(5) discussed below.
Also, if processing of the used oil is
performed prior to mixing with crude
oil in these pre-pipeline units, such
processing remains subject to the part
279, subpart F standards for used oil
processors and re-refiners. Used oil that
is generated and stored at the pipeline
is subject to the used oil generator
standards prior to mixing with crude
oil. Used oil that is transported to the
pipeline and immediately mixed with
crude oil or stored for less than 24 hours
prior to such mixing is subject to all
Subpart E transporter standards except
for § 279.45 which applies to transfer
facilities. Used oil that is transported to
and subsequently stored at the pipeline
for more than 24 hours and less than 35
days prior to mixing with crude oil is
subject to all the part 279, subpart E
transporter/transfer facility
requirements.
2. Section 279.10(g)(2)—Storage and
Transportation of Mixtures of Used Oil
and Crude Oil
Section 279.10(g)(2) of today's rule
expands the used oil management
standard exemption to include: (1)
Mixtures of used oil and crude oil
containing less than 1% used oil that
are being stored at the petroleum
refining facility or in discrete units
remotely located from the pipeline, as
long as the mixture is destined for the
refinery and inserted prior to crude
distillation or catalytic cracking; and (2)
mixtures of used oil and crude oil
containing less than 1% used oil that
are being transported (via truck, rail, or
vessel) to the petroleum refinery or the
pipeline for insertion into the petroleum
refining process prior to crude
distillation or catalytic cracking. The
former exemption provided at
§ 279.10(g) did not apply either to
mixtures of used oil and crude oil that
are stored at the petroleum refinery or
in remotely located units, or to the
transportation of mixtures of used oil
and crude oil. The previous, more
narrow exemption was based on the
assumption that used oil was placed
directly into the pipeline (or into units
directly connected to the pipeline as
previously discussed). EPA assumed
that the mixing of used oil and crude oil
occurred at the point at which used oil
was inserted into the pipeline. EPA has
since learned, however, that mixing
frequently occurs at exploration and
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4> 1994 / Rules and Regulations
10553
production sites that are remotely
located from the pipeline or the
petroleum refinery.
For example, used oil generated
during on,- and off-shore drilling
activities (e.g. from compressors, trucks
and otherlheavy equipment) is routinely
mixed with crude oil in units (e.g.
production separators, seagoing vessels,
stock tanks, etc.) located at the
exploration and production site and
then transported, as a mixture, to the
pipeline or petroleum refining facility.
Depending on the location of the
drilling activities, the mixture of used
oil and crude oil may need to be
transported (by vessel, truck, rail, etc.)
to a separate location for introduction
into the pipeline or the petroleum
refining facility, hi the case of off-shore
drilling sites for example, conveyance of
the mixture may involve multiple
modes of transportation (i.e., from the
off-shore platform to land by vessel or
pipeline and then to the crude oil
pipeline by land-based transport).
Today's exemption covers all modes of
transportation of mixtures of used oil
and crude or natural gas liquids, as long
as the mixture contains less than 1%
used oil and is destined for insertion
into a petroleum refining facility
process at a point prior to crude
distillation or catalytic cracking. In
addition, today's exemption covers
storage of mixtures of used oil and
crude oil, [provided that the mixture
contains less than 1% used oil and is
inserted into a petroleum refining
facility process prior to crude
distillation or catalytic cracking.
Used oil that is generated at
exploration and production sites
continues |to be subject to used oil
generator standards prior to being mixed
with crude oil such that it is exempt
under today's rule. Used oil that is
generated joff-site and transported to or .
stored at an exploration and production
site is subject to the transporter and
transfer facility standards, as applicable,
up until the point at which the used oil
is mixed with crude oil such that it is
exempt under § 279.10(g)(2).
EPA is Exempting mixtures of used oil
and crude [oil held in discrete units at
a refinery or at remote locations because
the Agency understands that the amount
of used oil contained in these mixtures
is extremely small relative to the large
quantities |of crude oil. hi developing
today's rule, EPA held numerous
discussions with petroleum refinery
industry representatives regarding the
maximumjamount of used oil contained
in mixtures of used oil and crude oil
that are destined for insertion into a
petroleum; refining process prior to
crude distillation or catalytic cracking.
Industry representatives repeatedly
informed the Agency that used oil
constitutes less than 1% of these
mixtures, hi gathering information for
today's rule, EPA held conference calls
with representatives from a number of
petroleum refining companies (e.g.,
Mobil Oil Corporation and Phillips
Petroleum Inc.,). The Agency also
conducted several site visits, including
visits to an Amoco refinery in Whiting,
Indiana and a Mobil Oil Corporation
refinery in Paulsboro, New Jersey. In
each case, EPA was informed that used
oil does not currently, and will not
comprise greater than 1% of the crude
oil/used oil mixture because of the sheer
volumes of crude oil that are
continuously being produced and
processed relative to the amount of used
oil that is generated at production sites
or refineries. This recent information is
consistent with comments submitted in
response to the 1985 Used Oil Proposed
Rule in which Exxon Company, USA
stated that the average percentage of
used oil in refinery feed stock streams
is less than 0.02% and Texaco, Inc.,
indicated that used oil would constitute
no more than 0.01% of the refinery
input.
EPA does not believe it is necessary
to apply the used oil management
standards to the less than 1% fraction of
used oil that is being held temporarily
in discrete units or transported from
those units to the pipeline or the
petroleum refinery for recycling as part
of a mixture that is composed
overwhelmingly of crude oil. In essence,
because of the high ratio of crude oil to
used oil, EPA considers the mixture to
be equivalent to crude oil for regulatory
purposes. EPA's part 279 standards
were designed to control those
particular risks associated with the
management of used oil (e.g.,
uncontrolled burning, improper storage
practices by used oil handlers) pursuant
to section 3014 of RCRA.
The reason for EPA's imposition of a
1% limit on the amount of used oil
contained hi mixtures of used oil and
crude oil being stored or transported to
a crude oil pipeline or petroleum
refinery prior to insertion into the
refining process is that, while we have
determined that the small amounts of
used oil that are being added to crude
oil under current practices pose no
incremental risk over normal crude oil,
we have not evaluated whether larger
amounts of used oil also pose no
incremental risk. Given the information
provided to EPA by the petroleum
refining industry regarding the inherent
limitations on the amount of used oil
that is or should be contained in
mixtures of used oil and crude oil (i.e.,
less than 1%), and given that EPA has
received no information, either recently,
or in response to previous ralemakings ,
that provides basis for an alternative
limit, (he Agency sees no point in
imposing a higher cap. Imposition of a
higher cap could have the effect of
encouraging mixing of used oil with
crude oil that would not otherwise
occur during the normal course of
petroleum refining operations. Such an
incentive might lead to increased
incremental risk from management of
large amounts of used oil, exempt from
the pail 279 standards, at petroleum
refineries. EPA also concluded that a
less precise limit (i.e., "de minimis" or
"small amounts"), as was suggested by
some commenters from the petroleum
refining industry, would needlessly
cause uncertainty, given that EPA was
told repeatedly that amounts currently
introduced are far less than 1%.
3. Section 279.10(g)(3)—Used Oil
Inserted Into the Petroleum Refining
Process Without Prior Mixing and
Mixtures of Greater Than One Percent
Used Oil
As previously stated, under today's
rule, mixtures of used oil and crude oil
containing less than 1% used oil that
are transported to or stored at a
petroleium refinery, and are introduced
prior to crude distillation or catalytic
cracking, are exempt from part 279
standards under § 279.10(g)(2). It is
EPA's 'understanding, based on
information received from petroleum
industry representatives, that used oil
can potentially be inserted directly into
the petroleum refining process prior to
crude distillation or catalytic cracking
without either: (1) Mixing the used oil
with cmde oil feedstocks, or (2) pre-
processing of the used oil to ensure that
any contaminants in the used oil will
not interfere with the refining process
(e.g., contaminants fouling a catalyst,
etc.). Based on this, understanding,
today's, exemption also applies to used
oil that is introduced directly into the
petroleum refining process at a point
prior to crude distillation or catalytic
cracking as long as the used oil
comprises less than 1% of the crude oil
feed to a petroleum refining facility
process unit at any given time. Again,
because of the high ratio of crude oil to
used oil, EPA considers these mixtures
to be equivalent to crude oil for
regulatory purposes. Therefore, the
Agency believes that this activity would
pose no significant increase hi risk.
Used oil that is inserted directly into
the petroleum refining process (at a
volume of less than 1% of the crude oil
process; unit feed at any given time) is
considered mixed, and therefore exempt
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10554 Federal Register / Vol. 59, No. 43 / Friday, March 4, 1994 / Rules and Regulations
from part 279, at the point at which it
enters the process. This exemption
applies both to used oil generated at the
petroleum refining facility where the
used oil is being inserted, and to used
oil generated off-site that is collected
and transported to the petroleum
refining facility for insertion into the
refining process prior to crude
distillation or catalytic cracking.
Used oil that is inserted into the
petroleum refining process without first
being mixed with crude oil feedstocks
(e.g. in crude oil stock tanks) is subject
to part 279 standards prior to insertion.
Used oil that is generated on-site and
then stored without prior mixing and
used oil generated on-site that
constitutes greater than 1% of a mixture
of used and crude oil continues to be
subject to the part 279, subpart C
standards for generators. With the
exception of used oil that is exempt
from the part 279 standards because it
constitutes less than 1% of a mixture of
used oil and crude oil, used oil that is
generated off-site and then transported
to or stored at a petroleum refining
facility, continues to be subject to the
applicable part 279 requirements i.e., to
the requirements for used oil
transporters and transfer facilities while
being transported and to the
requirements for used oil processors
upon receipt at the petroleum refining
facility. Petroleum refining facilities that
receive used oil from off-site for direct
insertion into the petroleum refining
process are subject to the used oil
processor standards from the point at
which they receive the used oil up until
the point at which the used oil is
inserted into the petroleum refining
process. Finally, it is important to
reiterate that the exemptions provided
under both §§ 279.10(g)(2) and
279.10(g)(3) of today's rule apply at the
point of mixing and only to mixtures
that contain less than 1% of used oil.
Although petroleum industry
representatives have raised concerns
that a 1% limit on the amount of used
oil that can be inserted directly into the
petroleum refining process may be
technology limiting, EPA has not
received any information that would
support this position, nor has the
Agency received information to support
an alternative level. The Agency
believes that by limiting the amount of
used oil that can be introduced directly
into the refining process exempt from
the used oil processing standards, it can
better ensure against mixing only to
avoid compliance with the part 279
processing standards. If information
becomes available that the 1% limit is
inhibiting used oil recycling, the
Agency will consider whether any
change to the rules is necessary.
In the draft rule, EPA proposed to
regulate petroleum refining facilities
that receive used oil from off-site as
used oil transfer facilities prior to
mixing. However, EPA agrees with
comments on the draft rule that
petroleum refining facilities that receive
used oil from off-site pose the same
potential concerns associated with
receipt of adulterated used oil and
improper storage of used oil as used oil
re-refiners. Petroleum refining facilities
that receive used oil from off-site may
not have adequate information to ensure
that the used oil has not not been
improperly mixed with listed hazardous
waste. Also, the volumes of used oil that
may be managed require adequate
planning for dealing with emergency
releases. EPA has therefore revised the
final rule to provide that petroleum
refining facilities that receive and store
used oil from off-site are subject to.the
used oil processor standards prior to
mixing. The principal effect of this
change is that petroleum refiners that
receive used oil from off-site must
prepare a waste analysis plan to ensure
that the used oil has not been mixed
with hazardous waste and must
maintain an operating record to
document compliance with the waste
analysis plan. In addition, such
refineries will have to adopt or amend
emergency contingency plans to address
used oil in accordance with § 279.52 of
the used oil management standards.
4. Section 279.10(g)(4)—Used Oil
Inserted Into the Petroleum Refining
Process After Crude Distillation or
Catalytic Cracking
Under § 279.10(g)(4) of today's rule,
used oil that is inserted into the
petroleum refining process after crude
distillation or catalytic cracking is
exempt from the part 279 standards
provided that the used oil meets the
used oil specification prior to insertion.
Used oil remains subject to part 279
standards up until its actual insertion
into the petroleum refining process. As
previously discussed, used oil generated
on-site must be stored according to part
279, subpart C standards for used oil
generators. Used oil generated off-site
must be transported according to the
part 279, subpart E standards'for
transporters and transfer facilities and
stored according to the part 279, subpart
F standards for used oil processor/re-
refiners.
EPA's use of the terms "before" and
"after" crude distillation or catalytic
cracking is intended to distinguish
between the initial part of the petroleum
refining process where crude oil is the
primary feedstock and is refined by
undergoing crude distillation or
catalytic cracking and the latter part of
the petroleum refining process where
crude oil residuals constitute the
primary feed, and coke and asphalt are
the primary products. Refinery
processes that occur after crude
distillation or catalytic cracking do not
provide refining to the same extent as
that which occurs as a result of crude
distillation or catalytic cracking. Crude
distillation or catalytic cracking is
expressly designed to remove, alter, or
otherwise immobilize contaminants in
the normal course of the refining
process. EPA has insufficient
information on post-crude distillation or
catalytic cracking units identified by
commenters (e.g., asphalt towers,
petroleum cokers), and is concerned
about the possible environmental effects
(e.g., air emissions, transfer of
inorganics to asphalt or petroleum coke)
of placing large amounts of off-
specification used oil into the petroleum
refining process without passing
through the crude distillation or
catalytic cracking units. In contrast, on-
specification used oil may be burned in
the same manner as virgin petroleum
fuel in other situations, therefore it
makes little sense to restrict its use as
a feedstock to the petroleum coker (or in
any other process "after" crude
distillation or catalytic cracking).
It should be noted that if off-
specification used oil is inserted into
petroleum refining processes after crude
distillation or catalytic cracking (e.g., a
coker), the facility would be subject to
the used oil processing requirements in
part 279, subpart F. In addition,
petroleum refining facilities that wish to
insert on-specification used oil into the •
refining process after crude distillation
or catalytic cracking and that are the
first to claim that the used oil is on-
specification (whether generated at the
refinery, or at an off-site location),
would be defined as marketers subject
to the requirements for used oil
marketers found in part 279, subpart H.
5. Section 279.10(g)(5)—Used Oil
Captured by the Refinery's Hydrocarbon
Recovery System or Wastewater
Treatment System and Inserted Into
Petroleum Refining Process
Section 279.10(g)(5) of today's rule
exempts from the part 279 standards
used oil that incidentally enters and is
recovered from a petroleum refining
facility's hydrocarbon recovery system
or its wastewater treatment system (e.g.,
process sewer, storm sewer, or
wastewater treatment units), if the
recovered used oil is subsequently
inserted into the petroleum refining
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'. Federal Register / Vol. 59, No. 43 / Friday, March 4, 1994 / Rules and Regulations 10555
process. Oil (that may contain small
amounts of used oil) that has been
recovered from a refining facility's
hydrocarbon recovery or wastewater
treatment system is typically used as a
feedstock in petroleum refining to
produce more petroleum products. EPA
understands that used oil, generated
from routine refinery process operations
and that incidentally enters a refinery's
recovery lor wastewater treatment
system (e.g., drips, leaks, and spills from
compressors, valves, and pumps),
represents a small portion of the total oil
that enters (and is then recovered from)
the recovery or wastewater treatment
system. Thus, the oil recovered from the
system is; more properly characterized
as crude feedstock than used oil.
Providedjthe used oil is inserted into
the petroleum refining process, EPA
believes that regulation under part 279
standards is unwarranted. This
exemption from the part 279 standards
does not extend to used oil which is
intentionally introduced into a
petroleum refinery's recovery or
wastewater treatment system (e.g.,
pouring collected used oil into any part
of the hydrocarbon recovery system,
storm or process sewer system or into
wastewater treatment units). Used oil
may not be introduced to the refinery's
hydrocarbon recovery or wastewater
treatment system as a way to avoid
meeting the conditions specified in
§ 279.lO(gK4).
For the purposes of the exemption in
today's nile, the examples cited in the
existing cle minimis wastewater
exclusion (§ 279.10(f)) provide guidance
on what types of releases to a refinery's
hydrocarbon recovery or wastewater
treatment system would be considered
"routine" or "incidental". The
exemption is intended to cover losses
from drippage, minor spillage, etc., that
cannot bej reasonably avoided. For
example, jused oil that has been
collected ifrom equipment or vehicle
maintenance activities and intentionally
introduced into a refinery's wastewater
treatment; system would not be exempt
under § 279.1(g)(5) from the part 279
standards once recovered. Similarly,
used oil that is generated off-site and is
brought to the refinery may not be
added to any portion of the refinery's
wastewater treatment system (i.e.,
process sewer, storm sewer, or
wastewater treatment units), and still be
exempt under § 279.10(g)(5) once
recovered; such oil is clearly not
"incidentally captured" by the
refinery'sjwastewater treatment system.
In fact, unless specifically exempted
under § 279.10(g)(2) or § 279.10(g)(3) of
today's rule, this type of activity would
meet the definition of used oil
processing under the existing used oil
management standards (see 40 CFR
279.1). :
Today's rule does not preclude
intentional introduction of used oil in to
the facility's recovered oil tanks. EPA is
aware that used oil from both on- and
off-site is often added directly to the
petroleum refining facility's recovered
oil tanks. Mixtures of used oil and
recovered oil that contain greater than
1% used oil are regulated as used oil.
Mixtures of used oil and recovered oil
that contain less than 1% used oil and
are inserted into the petroleum refining
process prior to crude distillation or
catalytic cracking are exempt from the
part 279 used oil management standards
under § 279.10(g)(2). Mixtures of used
oil and recovered oil that contain less
than 1% used oil and are inserted into
the petroleum refining process after
crude distillation or catalytic cracking
are exempt from the part 279 standards
(under § 279.10(g)(4)) only if the used
oil meets the used oil specification prior
to mixing with recovered oil.
6. Section 279.10(g)(6)—Stock Tank
Bottoms
Section 279.10(g)(6) of today's rule
exempts tank bottoms from stock tanks
containing exempt mixtures of used oil
and crude oil from the part 279
standards. Like the actual mixtures of
used oil and crude oil, the bottoms from
these mixtures are expected to contain
insignificant amounts of used oil.
Therefore, the Agency does not believe
that the bottoms from tanks (or other
units) containing mixtures of used oil
and crude oil should be subject to the
used oil management standards. The
tank bottoms are subject to all other
applicable requirements, i.e., the
§ 262.11 requirement to determine if
they are hazardous waste.
D. Used Oil Transportation
Section 279.1—Definition of Transfer
Facility
Today's rule revises the definition of
transfer facility to allow used oil to be
held at a location (i.e., a transfer facility)
temporarily prior to activities that are
not subject to the processor standards as
a result of today's rulemaking. In the
September 10,1992 final rule, a transfer
facility was defined as a transportation-
related facility where shipments of used
oil are held for more than 24 hours but
less than 35 days during the normal
course of transportation. Today's rule
expands that definition to allow used oil
to be held for more than 24 hours but
less than 35 days during the normal
course of transportation or prior to an
activity performed pursuant to
§ 279.20(b)(2). Under the amended
definition, as discussed below in section
F of this preamble, a site to which used
oil from oil-bearing electrical
transformers is transported for filtering
prior to reuse would be considered a
transfer facility under today's definition.
E. Section 279.20(b)(2)(ii)—Used Oil
Processing by Generators and Transfer
Facilities
Since the promulgation of the
September 10,1992, Used Oil
Management Standards, a number of
parties have raised concerns regarding
the definition of used oil processor and
the types of activities that are covered
by that definition. The commenters are
concerned that a broad construction of
the teirm processor inappropriately
includes a number of very basic on-site
generator activities that the Agency did
not intend to regulate under the used oil
processor standards (e.g.
reconditioning/maintenance to extend
the life of used oil, separation of used
oil from wastewater discharge, etc.).
EPA agrees that activities such as these,
when performed by the generator, were
not intended to be covered under the
used oil processor standards because
used oil processing is not their primary
purpose, as explained below in greater
detail. In fact, too broad an
interpretation of the processor
definition may discourage
environmentally beneficial recycling
and waste minimization activities by
imposing an unwarranted regulatory
burden on owners and operators that
EPA did not intend to regulate as used
oil processors.
Therefore, today's rule revises the
used oil management regulations to
clarify the Agency's intent regarding the
definition of a used oil processor by
specifying those on-site maintenance,
filtering, and separation activities that
are not, and were not intended to be
subject to the used oil processing
standards. Under today's rule,
generators 1 who only handle used oil in
a manner specified under
§ 279.20(b)(2)(ii) are not processors
provided that the used oil is generated
on-site and is not being sent directly off:
site to a burner of on- or off-
specification used oil fuel. (Section
279.2CI(b)(2)(ii) also applies to collection
i A used oil generator is any person, by site,
whose act or process produces used oil or whose
act first causes used oil to become subject to
regulations. For example, generators include all
persons and businesses who produce used oil
through commercial or industrial operations and
vehicle (services, including government agencies,
and/or persons and businesses who collect used oil
from households and "do-it-yourself oil changes.
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10556 Federal Register / Vol. 59, No. 43 / Friday, March 4, 1994 /Rules andRegulations
centers and aggregation points since
these entities are regulated as
generators.)
Activities that EPA did not intend to
include under the definition of used oil
processor are described below. EPA
does not believe that the activities
identified in § 279.20(b)(2)(ii) should be
subject to the used oil processor
standards because used oil processing is
not the primary purpose of these
activities i.e., the primary purpose of
these activities is not to produce from
used oil or to make it more amenable for
the production of used oil derived
products, and the Agency does not
expect these limited activities will pose
the same kinds of environmental
problems that may occur at processor
facilities. Instead, in these cases, the act
of mixing, filtering, separating, draining
etc., used oil by the generator
constitutes a basic step that is incidental
or ancillary to a primary activity which
is distinct from used oil processing. It is
important to note, however, that owners
or operators who generate used oil as a
result of any of the activities specified
in § 279.20(b)(2Xii) are considered used
oil generators and are subject to the
generator standards in subpart C.
EPA is allowing on-site but not off-
site burning of used oil generated from
designated on-site activities because the
Agency believes that this approach best
enables EPA to strike a reasonable
balance between encouraging beneficial
on-site reuse and recycling activities
that should pose very limited risks, on
one hand, and ensuring that activities
undertaken primarily to make used oil
more amenable for burning (i.e., used oil
processing) are adequately controlled
under the more stringent used oil
processing standards.
The definition of a used oil processor
is based on the purpose for which used
oil is being filtered, separated, or
otherwise reconditioned (i.e., whether
the activity is designed to produce used
oil derived products or to make used oil
more amenable for the production of
used oil derived products). The Agency
is concerned that in situations where
used oil is being filtered, separated or
otherwise reconditioned and then sent
to off-site burners, the purpose of the
activity may prove difficult to discern
and that consequently, § 279.20(b)(2)(ii)
provisions may be used as a means to
avoid compliance with the used oil
processor standards (i.e., by persons
who claim not to be used oil processors
under the § 279.20(b)(2)(ii) provisions
but whose primary purpose is to make
the used oil more suitable for burning).
Therefore, EPA believes it is necessary
to adopt an objective measure of the
purpose of the activity. The Agency
believes that a prohibition against
sending used oil generated from
specified on-site activities to off-site
burners provides the most practical and
effective way to ensure that activities
undertaken only to make used oil more
amenable for burning are subject to the
used oil processor standards.
1. Definition of Used Oil Processor
(A) Reconditioning used oil before
returning it for reuse by the generator.
Under today's rule facility owners or
operators who clean, separate, or
otherwise recondition used oil
generated on-site and then reuse it are
not considered used oil processors,
provided that the reconditioned used oil
is being reused by the owner or operator
who generated it. Examples of activities
covered under this category include
filtering of metalworking fluids for
reuse, and filtering and then replacing
oil from oil-bearing transformers and
turbines during routine maintenance.
Most manufacturing facilities have in
place central filtration systems designed
to remove contaminants from and
extend the life of water-soluble metal
working fluids (e.g., lubricants and
coolants), used in machining, _
and boring equipment. These filtration
systems are on-site systems that filter
chips, metal fines, dirt, water, and other
contaminants from cutting fluids,
drawing lubricants and coolants used in
machining operations. The filtration of
these extraneous materials is designed
to extend the life of the reusable
coolants and lubricants and is
incidental to the production process.
Today's rule clarifies that this type of
filtration activity is not subject to the
used oil processing standards when the
generator reuses the filtered oil.
Similarly, during regularly scheduled
maintenance of oil-bearing transformers
and turbines, the oil in the electrical
equipment is removed so that repairs/
maintenance can be performed. In some
instances, the oil is filtered prior to
replacement. The filtering of the used
oil is done to extend the life of the used
oil, not because the oil is no longer
useful, and is therefore ancillary to the
equipment repair and maintenance.
While, under today's rule, the owner or
operator would not be considered a
processor in these cases, the draining of
the used oil from the transformer
constitutes generation of used oil so that
the facility would be considered a used
oil generator.
The Agency is aware that not all used
transformer oil is drained and filtered in
the field. Instead, the oil-bearing
electrical equipment may be transported
to a central location where the oil is
removed, filtered, and replaced. Or, the
used oil may be removed from the
transformers or turbines in the field and
then transported separately in a tanker
truck to a central location where it is
filtered and put back into electrical
equipment. Under today's rule, in cases
where electrical equipment containing
used oil is transported to a central
location, the transporter of the oil
bearing electrical equipment would not
be considered a used oil transporter.
However, the owner or operator would
become a generator at the point at which
the used oil is drained from the
equipment (i.e., at the site where the oil
is drained and filtered).
In cases where the used oil is
removed from the transformers or
turbines in the field and then
transported separately in a tanker truck
to a central location for filtering prior to
replacement into electrical equipment,
the owner or operator would become a
generator in the field (i.e., at the point
at which the used oil is drained). The
person who then transports the used oil
would also be considered a used oil
transporter subject to the transporter
standards. In these cases, the location at
which the used oil is filtered would be
considered a used oil transfer facility
subject to the transfer facility standards
in § 279.45, provided that the used oil-
is stored at the site for more than 24
hours and less than 35 days. If the used
oil is filtered within 24 hours of being
drained (i.e., during transport) only the
part 279 standards for used oil
transporters would apply. This filtering
activity should not raise the kind of
environmental concerns that would be
present at used oil processors;
essentially, the filtering is incidental to
the transportation and storage and
should not change a facility's regulatory
status. As discussed in more detail
below, today's rule provides that
transporters of used oil that is removed
from electrical transformers and
turbines and filtered by the transporter
or at a transfer facility prior to being
returned to the same use are not subject
to the processor or re-refiner
requirements in subpart F. In
accordance with § 279.10(e), once the
used oil has been reclaimed to the point
where it is ready for reuse without
further processing, it is not subject to
regulation as used oil.
(B) Separating used oil from
wastewater to make wastewater
acceptable for discharge or reuse.
Today's rule clarifies that oil/water
separation activities designed to make
wastewater acceptable for discharge or
reuse are not subject to the used oil
processor standards. Facilities often use
oil/water separators to remove oil
(which may contain used oil) from oil/
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Federal Register / Vol. 59, No. 43 / Friday, March 4, 1994 / Rules and Regulations
10557
water mixtures collected from the
facility's storm sewer, process sewer,
sumps and other wastewater
containment areas. These separation
systems use chemical and physical
methods to break the oil/water emulsion
and recover oil from the wastewater in
order to make the wastewater or storm
water acceptable for discharge or reuse
in compliance with local, state and
federal regulations.
This type of pretreatment of
wastewater containing oil is designed
primarily to ensure that the wastewater
meets established limits for water
discharge to streams and POTWs, and
not to produce used oil derived
products or to make used oil more
amenable for the production of used oil
derived products. This type of oil/water
separation activity is therefore not
subject to the used oil processor
standards as clarified under today's
rule. It should be noted, however, that
any used oil recovered from separator
units would be subject to the used oil
generator standards. It is also important
to note that this provision applies only
to used oil; that is generated on-site. The
provision would apply, for example, to
simple oil 'water separation activities
conducted, (for purposes of wastewater
discharge) ;by a used oil processor on
wastewater which has been generated
by that processor. However, persons
who perform oil/water separation
activities on oily wastewater received
from off-site would be considered used
oil processors.
1C) Using oil mist collectors to remove
droplets of used oil from in-plant air to
make plant air suitable for continued
recirculation. As clarified under today's
rule, the act of removing used oil from
ambient air in the workplace is not
subject to the used oil processor
standards. |At manufacturing facilities,
droplets of used oil from machining
operations,1 are often dispersed into in-
plant air. Oil mist collectors physically
remove the small droplets of oil present
in the ambient air. This activity is not
subject to the used oil processing
standards because it is intended
primarily to make plant air suitable for
continued recirculation and not to
produce products from used oil or to
make it more amenable for the
production of used oil derived products.
However, the oil removed from oil mist
collectors is subject to the used oil
generator standards.
(D) Removing used oil from materials
containing or otherwise contaminated
with used oil in order to remove
excessive oil. Under § 279.10(c) of the
used oil standards, materials containing
or otherwise contaminated with used oil
from which the used oil has been
properly drained or removed to the
extent possible such that no visible
signs of free-flowing oil remain in or on
the material are not used oil except
when burned for energy recovery.
Today's rule clarifies that the Agency
does not consider the removal of used
oil from materials containing or
contaminated with used oil in order to
remove excess oil in accordance with
§ 279.10(c) to be used oil processing.
The production of used oil derived
products is clearly not the primary
reason for removing used oil from
materials containing or contaminated
with used oil. Instead, the activity is
conducted primarily to clean the
materials (e.g., machine tools, scrap
metal, etc.) prior to reuse, recycling, or
disposal and is therefore not subject to
the used oil processing standards as
clarified by today's rule. However, in
removing the used oil from the
materials, the owner or operator
becomes a used oil generator subject to
the Subpart C used oil generator
standards.
(E) Filtering, separating, or otherwise
reconditioning used oil before burning it
in a space heater. Under § 279.23 of the
used oil standards, used oil may be
burned in a used oil-fired space heater
under specified conditions, and
provided that the space heater burns
only used oil that the owner or operator
generates and/or used oil obtained from
household DIY oil changers. Prior to
burning, the used oil must often be
filtered to remove impurities. Today's
rule clarifies that filtering of used oil for
the purpose of removing contaminants
prior to burning the used oil in a space
heater is not considered processing of
used oil.
EPA provided a regulatory exemption
from the used oil burning standards for
generators who burn used oil in on-site
space heaters (in accordance with
§ 279.23) because the Agency believes
that burning of small amounts of used
oil in space heaters poses insignificant
risks due to the small volume of used oil
burned (see 50 FR 49194, Nov. 29,
1985). The Agency believes that,
because of the small volumes of used oil
involved, filtering, separating, or
otherwise reconditioning used oil that is
generated on-site prior to burning it in
a space heater would also not pose
significant risk. Therefore, although the
purpose of the filtering activity in this
case is to make the used oil more
amenable for burning, because of the
small amounts of used oil being filtered
for this purpose, the Agency does not
believe that imposition of the used oil
processor standards is warranted. EPA
is therefore adding a regulatory
clarification (§ 279.20(b)(2)(ii)(F)) that
the used oil processor standards do not
apply to filtering of used oil prior to
burning it in a space heater, provided
that the) used oil is generated on-site or
obtained from households or "do-it-
yourself oil changes.
F. Section 279.41—Restrictions on
transporters who are not also processors
or re-refiners and changes to the
definition of transfer facility.
Today's rule amends § 279.41 to
provide that transporters of used oil that
is removed from oil-bearing
transformers and turbines and filtered
by a transporter or at a transfer facility
before being returned to its original use
are not subject to the used oil processor -
and re-refiner requirements. As
previously discussed, during routine
maintenance of oil-bearing transformers
and turbines (or similar equipment), the
oil in the electrical equipment is
removed so that repairs/ maintenance
can be performed. In some cases, the
used oil is removed from the
transfoirmers or turbines in the field and
then transported separately in a tanker
truck (subject to the used oil transporter
standards) to a central location where it
is filtered and put back into electrical
equipment. As discussed above, under
today's rule the filtering of the used oil
would mot be considered used oil
processing provided that the filtered oil
is reused in the same or similar manner.
And, in. these cases (i.e., where the used
oil is removed from the equipment and
transported to a separate location for
filtering), the location at which the oil
is filtered would be considered a
transfer facility provided that the used
oil is stored for more than 24 hours and
less than 35 days. If, as sometimes
occurs, the used oil is filtered within 24
hours of being stored at the central
location (i.e., during transport) the only
applicable standards would be the part
279 standards for used oil transporters
(i.e., the § 279.45 requirements for used
oil storage at transfer facilities would
not apply).
Section 279.41(c) of today's rule
provider conforming changes to the
used oil transportation standards to
allow transporters or transfer facilities
to filter the used oil without being
subject to the used oil processor
standards. It should be clearly noted,
however, that if the used oil is stored at .
a site for more than 35 days, greater
environmental concerns may be present,
so the site would no longer be
considered a transfer facility and the
processor standards would apply.
In addition, this rule expands the
definition of transfer facility to allow
used oil to be held at a location (i.e., a
transfer facility) temporarily prior to
activities that are exempt from or
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10558 Federal Register / Vol. 59, No. 43 / Friday, March 4, 1994 / Rules and Regulations
performed pursuant to the part 279
standards as a result of today's
rulemaking. Under today's revised
definition, used oil can be held at a
transfer facility for more than 24 hours
but less than 35 days prior to an activity
and performed pursuant to
§ 279.20(b)(2). As a result of this change,
a site where used oil that has been
drained from oil-bearing transformers
and turbines is held for more than 24
hours and less than 35 days prior to
being filtered for reuse would be
considered a transfer facility.
G. Section 279.46— Tracking Today's
rule revises the § 279.46 tracking
requirements as they apply to rail
transporters. Under amended § 279.46, a
signature is not required on records of
acceptance or records of delivery of
used oil shipments that are exchanged
between rail transporters. The Agency is
making this change in response to
comments submitted by the railroad
industry regarding the impracticability
of requiring signed receipts when used
oil is transferred from one rail
transporter to another. EPA is aware that
rail cars are typically transferred from
one railroad company to another
without the face-to-face contact that
occurs in, for example, the motor carrier
industry. The Agency also recognizes
that, unlike non-rail transporters,
railroads rely on sophisticated
electronic tracking and information
systems for recording rail-to-rail transfer
of cargo. Given these unique
circumstances, and in light of the fact
that 40 CFR 263.20(f) regulations for
hazardous waste transporters do not
include signature requirements for
intermediate rail carriers, EPA agrees
that the signature requirements are
unduly burdensome and unnecessary
when applied to intermediate used oil
rail transporters. EPA is therefore
revising the used oil regulations to
eliminate the § 279.46 signature
requirements between intermediate rail
carriers.
H. Corrections to the Regulatory
Language
1. Requirements for Enforcement
Authority
The Agency published a correction
notice on May 3,1993, which amended
several sections of the part 279 used oil
management standards that were
originally promulgated on September
10,1992. In the May 3,1993, correction
notice, EPA incorrectly amended
regulatory § 271.16, that addressed the
requirements for States to have adequate
criminal enforcement authority for
hazardous waste. EPA amended the
regulation to include enforcement
authority for used oil handlers that
manage used oil incorrectly, but EPA
inadvertently deleted from § 271.16
enforcement authority for the improper
management of hazardous waste.
Therefore, today's rule corrects this
section to include enforcement
authority for the improper management
of both hazardous waste and used oil.
2. Rebuttable Presumption
The final used oil regulations
published on September 10,1992, allow
persons to rebut the presumption that
used oil containing more than 1,000
ppm total halogens is a hazardous waste
by using an analytical method from
SW-846, Third Edition, to show that the
used oil does not contain hazardous
waste. In the regulations, the Agency
provided information on the cost of
SW-846, Edition III and how to obtain
it. However, the Agency misquoted the
cost of the document. The actual cost
was $319.00 rather than $110.00 as
quoted throughout the September 10,
1992, regulations. To avoid having to
amend the regulations as a result of
future changes in the cost of the
document, the Agency is deleting
reference to the cost of SW-846, Edition
III from the used oil regulations.
3. Characteristic Hazardous Waste
Today's rule revises § 279.10(b)(2)(iii)
by deleting reference to the listing status
(under part 261, subpart D) of a
hazardous waste that is mixed with
used oil. This change is necessary to
correct a contradiction in the
regulations regarding applicability of
the used oil management standards to
mixtures of used oil and hazardous
waste that is listed in subpart D solely
because it exhibits one or more of the
characteristics of hazardous waste
identified in subpart C. In technical
corrections to the used oil management
standards published on May 3,1993, (57
FR 26420), EPA amended § 279.10(b)(2)
to correct an error in the September 10,
1992, standards regarding how these
mixtures are regulated. At that time,
conforming changes should have been,
but were not made to § 279.10(b)(2)(iii).
As amended by today's rule,
§ 279.10(b)(2)(iii) correctly provides that
mixtures of used oil and hazardous
waste that solely exhibits one or more
hazardous waste characteristic and
mixtures of used oil and hazardous
waste that is listed in subpart D solely
because it exhibits one or more subpart
C hazardous characteristics are
regulated as used oil if the mixture is of
used oil and a waste which is hazardous
solely because it exhibits the
characteristic of ignitability and the
resultant mixture does not exhibit the"
characteristic of ignitability.
IV. State Authorization
As explained in the preamble to the
May 3,1993, Technical Correction to
the September 10,1992, rule, EPA is
treating the majority of the final used oil
management standards in the same
manner as "non-HSWA" Subtitle C
requirements. The used oil management
standards became effective on March 8,
1993, only in those States and
Territories that do not have RCRA base
program authorization and on Indian
lands. States are required to revise their
Subtitle C base programs to adopt the
new used oil requirements (including
those promulgated in today's rule) by
July 1,1994, or by July 1,1995, if a
statutory change is necessary. See 58 FR
26420 and 57 FR 41605.
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 of 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). Except for the amendments
made to § 279.20(b), the standards
promulgated today are less stringent
than or reduce the scope of the existing
Federal requirements. The amendments
made to § 279.20(b) merely provide
clarification of the existing used oil
regulations and are therefore not
considered to be less stringent than the
current Federal program. Therefore,
with the exception of the provisions
added at § 279.20(b)(2)(i), authorized
States would not be required to modify
their programs to adopt requirements
equivalent to or substantially equivalent
to the provision listed above.
V. Executive Order 12866
Under Executive Order 12866, 58 FR
51735 (October 4,1993) the Agency
must determine whether the regulatory
action is "significant" and therefore
subject to OMB review and the
requirements of the Executive Order.
The Order defines "significant
regulatory action" as one that is likely
to result in a rule that may: (1) Have an
annual effect on the economy of $100
million or more or adversely affect in a
material way the economy, a sector of
the economy, productivity, competition,
jobs, the environment, public health or
safety, or State, local, or tribal
governments or communities;
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(2) Create a serious inconsistency or
otherwise interfere with an action taken
or planned by another agency;
(3) Materially alter the budgetary
impact of entitlements, grants, user fees,
or loan programs or the rights and
obligations of recipient thereof; or
(4) Raise novel legal or policy issues
arising out of legal mandates, the
President's priorities, or the principles
set forth in the "Executive Order."
OMB has exempted this regulatory
action from E.0.12866 review.
VI. Paperwork Reduction Act
The reporting and recordkeeping
requirements of part 279 have been
approved by OMB and generally
assigned ithe control number 2050-0124
(See 58 FR 34374 (June 25,1993)),
which remains in effect. As today's rule
does not impose any new such
requiremjents, a separate information
collection request was not prepared.
VII. Regulatory Flexibility Act
Today's rule does not impose any new
regulatory requirements, and indeed,
decreases the costs of compliance for a
number of facilities. I therefore certify
that today's rule will not have a
significant impact or a substantial
number of small entities.
VIII. Administrative Procedures Act
Today's rule takes final action on
EPA's 1985 and 1991 proposals to
exempt used oil inserted into primary
refining processes from the used oil
management standards. EPA did not
address these issues in its September 10,
1992, final rule, and therefore those
proposals remained outstanding until
today's rule. Since these issues were
fully addressed in those proposals,
further public comment on today's rule
is unnecessary. The other changes being
made in today's rule either correct
errors or clarify the language contained
in the September 10,1992 rule. No
comment is necessary on these
provision's.
List of Subjects
40 CFR Part 271
Environmental protection,
Administrative practice and procedure,
Confidential business information,
Hazardous materials transportation,
Hazardous waste, Indians—lands,
Intergovernmental relations, Penalties,
Reporting and recordkeeping
requirements, Water pollution control,
Water supply.
40 CFR Plart 279
Petroleum, Recycling, Reporting and
recordkeeping requirements, Used oil.
Dated: February 25,1994.
Carol M. Browner,
Administrator.
For the reasons set out in the
preamble, title 40, chapter I of the Code
of Federal Regulations is amended as
follows:
PART 271—REQUIREMENTS FOR
AUTHORIZATION OF STATE
HAZARDOUS WASTE PROGRAMS
1. The authority citation for part 271
continues to read as follows:
Authority: 42 U.S.C. 6905,6912(a), and
6926.
2. Section 271.161s amended by
revising paragraph (a)(3)(ii) to read as
follows:
§271.16 Requirements for enforcement
authority.
i * * *
(a)
(3) * * *
(ii) Criminal remedies shall be
obtainable against any person who
knowingly transports any hazardous
waste to an unpermitted facility; who
treats, stores, or disposes of hazardous
waste without a permit; who knowingly
transports, treats, stores, disposes,
recycles, causes to be transported, or
otherwise handles any used oil
regulated by EPA under section 3014 of
RCRA that is not listed or identified as
a hazardous waste under the state's
hazardous waste program in violation of
standards or regulations for
management of such used oil; or who
makes any false statement, or
representation in any application, label,
manifest, record, report, permit or other
document filed, maintained, or used for
purposes of program compliance
(including compliance with any
standards or regulations for used oil
regulated by EPA under section 3014 of
RCRA that is not listed or identified as
hazardous waste). Criminal fines shall
be recoverable in at least the amount of
$10,000 per day for each violation, and
imprisonment for at least six months
shall be available.
PART 279—STANDARDS FOR THE
MANAGEMENT OF USED OIL
3. The authority citation for part 279
continues to read as follows:
Authority: Sections 1006, 2002(a), 3001
through 3007, 3010, 3014, and 7004 of the
Solid Waste Disposal Act, as amended (42
U.S.C. 6905, 6912(a), 6921 through 6927,
6930, 6934, and 6974); and sections 101(37)
and 114(c) of CERCLA (42 U.S.C. 9601(37)
and 9614(c)).
4. In § 279.1 the definition of
"Petroleum refining facility" is added in
alphabetical order and'the definition of
"Used oil .transfer facility" is revised to
read as follows:
§279.1 Definitions.
* * * * *
Petroleum refining facility means an
establishment primarily engaged in
producing gasoline, kerosine, distillate
fuel o:ils, residual fuel oils, and
lubricants, through fractionation,
straight distillation of crude oil,
redistillation of unfinished petroleum
derivatives, cracking or other processes
(i.e., facilities classified as SIC 2911).
* 5fc * * *
Used oil transfer facility means any
transportation related facility including
loading docks, parking areas, storage
areas and other areas where shipments
of used oil are held for more than 24
hours and not longer than 35 days
during the normal course of
transportation or prior to an activity
performed pursuant to § 279.20(b)(2).
Transfer facilities that store used oil for
more than 35 days are subject to
regulation under subpart F of this part.
§279.10 [Amended]
5. Section 279.10(b)(l)(ii) is amended
by removing the phrase "for the cost of
$110.00."
6. Section 279.10 is amended by
revising paragraphs (b)(2)(iii) and (g) to
read as follows:
§279.10 Applicability.
*!**-**
(b)" * *
(2P * *
(iii) Regulation as used oil under this
part, if the mixture is of used oil and a
waste which is hazardous solely
because it exhibits the characteristic of
ignitability (e.g., ignitable-only mineral
spirits), provided that the resultant
mixture does not exhibit the
characteristic of ignitability under
§ 261.21 of this chapter.
* jt * * - *
(g) Used oil introduced into crude oil
pipelines or a petroleum refining
facility. (1) Used oil mixed with crude
oil or natural gas liquids (e.g., in a
production separator or crude oil stock
tank) for insertion into a crude oil
pipeline is exempt from the
requirements of this part. The used oil
is subject to the requirements of this
part prior to the mixing of used oil with
crude oil or natural gas liquids.
(2) Mixtures of used oil and crude oil
or natural gas liquids containing less
than 1% used oil that are being stored
or transported to a crude oil pipeline or
petroleum refining facility for insertion
into the refining process at a point prior
to crude distillation or catalytic cracking
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10560 Federal Register / Vol. 59, No. 43 / Friday, March 4, 1994 / Rules and Regulations
are exempt from the requirements of
this part.
(3) Used oil that is inserted into the
petroleum refining facility process
before crude distillation or catalytic
cracking without prior mixing with
crude oil is exempt from the
requirements of this part provided that
the used oil constitutes less than 1% of
the crude oil feed to any petroleum
refining facility process unit at any
given time. Prior to insertion into the
petroleum refining facility process, the
used oil is subject to the requirements
of this part.
(4) Except as provided in paragraph
(g)(5) of this section, used oil that is
introduced into a petroleum refining
facility process after crude distillation
or catalytic cracking is exempt from the
requirements of this part only if the
used oil meets the specification of
§ 279.11. Prior to insertion into the
petroleum refining facility process, the
used oil is subject to the requirements
ofthispart.
(5) Used oil that is incidentally
captured by a hydrocarbon recovery
system or wastewater treatment system
as part of routine process operations at
a petroleum refining facility and
inserted into the petroleum refining
facility process is exempt from the
requirements of this part. This
exemption does not extend to used oil
which is intentionally introduced into a
hydrocarbon recovery system (e.g., by
pouring collected used oil into the
waste water treatment system).
(6) Tank bottoms from stock tanks
containing exempt mixtures of used oil
and crude oil or natural gas liquids are
exempt from the requirements of this
part.
*****
7. Section 279.20 is amended by
revising paragraph (b)(2) to read as
follows:
§279.20 Applicability.
(b)* * *
(2) (i) Except as provided in paragraph
(b)(2)(ii) of this section, generators who
process or re-refine used oil must also
comply with subpart F of this part.
(ii) Generators who perform the
following activities are not processors
provided that the used oil is generated
on-site and is not being sent off-site to
a burner of on- or off-specification used
oil fuel.
(A) Filtering, cleaning, or otherwise
reconditioning used oil before returning
it for reuse by the generator;
(B) Separating used oil from
wastewater generated on-site to make
the wastewater acceptable for discharge
or reuse pursuant to section 402 or
section 307(b) of the Clean Water Act or
other applicable Federal or state
regulations governing the management
or discharge of wastewaters;
(C) Using oil mist collectors to remove
small droplets of used oil from in-plant
air to make plant air suitable for
continued recirculation;
(D) Draining or otherwise removing
used oil from materials containing or
otherwise contaminated with used oil in
order to remove excessive oil to the
extent possible pursuant to § 279.10(c);
or
(E) Filtering, separating or otherwise
reconditioning used oil before burning it
in a space heater pursuant to § 279.23.
* * * * *
8. Section 279.41 is amended by
adding paragraph (c) to read as follows:
§ 279.41 Restrictions on transporters who
are not also processors or re-refiners.
*****
(c) Transporters of used oil that is
removed from oil bearing electrical
transformers and turbines and filtered
by the transporter or at a transfer facility
prior to being returned to its original use
are not subject to the processor/re-
refiner requirements in subpart F of this
part.
§279.44 [Amended]
9. Section 279.44(c) introductory text
is amended by removing the phrase "for
the cost of $110.00."
10. Section 279.46 is amended by
revising paragraphs (a)(5) and (b)(5) to
read as follows:
§279.46 Tracking.
*****
(a) * * *
(5) (i) Except as provided in paragraph
• (a)(5)(ii) of this section, the signature,
dated upon receipt of the used oil, of a
representative of the generator,
transporter, or processor/re-refiner who
provided the used"oil for transport.
(ii) Intermediate rail transporters are
not required to sign the record of
acceptance.
(b)* * *
(5) (i) Except as provided in paragraph
(b)(5)(ii) of this section, the signature,
dated upon receipt of the used oil, of a
representative of the receiving facility or
transporter.
(ii) Intermediate rail transporters are
not required to sign the record of
delivery.
§279.53 [Amended]
11. Section 279.53(c) introductory text
is amended by removing the phrase "for
the cost of $110.00."
§279.63 [Amended]
12. Section 279.63(c) is amended by
removing the phrase "for the cost of
$110.00."
[FR Doc. 94-4818 Filed 3-3-94; 8:45 am]
BILLING CODE 6560-50-P
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