[Recycled Oil]                     --[SW-883]

                          STATEMENT OF
                        GARY N. DIETRICH
            ASSOCIATE DEPUTY ASSISTANT ADMINISTRATOR
                        FOR SOLID WASTE
          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                            BEFORE THE
           SUBCOMMITTEE ON TRANSPORTATION AND COMMERCE
                              OF THE
            COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS
                        UNITED STATES SENATE
                            May 5, 1980


     Mr. Chairman, I am Gary Dietrich, Associate Deputy Assistant

Administrator for Solid Waste of the U.S.  Environmental Protection

Agency.  I thank you for the opportunity to present EPA's views

on S. 2412, a bill to amend the Resource Conservation and Recovery

Act to further encourage the use of recycled oil.  This hearing

is timely because EPA is currently in the process of considering

appropriate regulation of waste oil as a hazardous waste under

Subtitle C of the Resource Conservation and Recovery Act.  The

provisions of this bill should be considered in that overall

context.

     EPA supports the recovery and reuse of used oil.  We

believe that the discarding and disposal of used oil should be

discouraged.  Waste oil represents a valuable resource "because,

with appropriate treatment, it can be recycled as a lubricating

oil.  It also can be burned as a fuel.  In either case, two

important objectives are served:

     a)  The use of virgin petroleum' products is replaced by

         the amount of oil recycled.

     b)  Potential environmental hazards from improper disposal

         of used oil are reduced or eliminated.
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     In my statement, I will focuss on the scope and nature of

the waste oil problem,  the options EPA is considering for dealing

with that problem,  and the specific provisions of this bill to

encourage recycling.

Used Oil Quantities and Collection

     EPA estimates that there are 1.4 billion gallons of used and

waste oil generated annually.  About half of this is used auto-

mobile crankcase oil, and the other half is used industrial

oils.  Of this total, we estimate that 700 million gallons are

burned as fuel, 100 million gallons are re-refined or reclaimed,

200 million gallons are used for road oiling or similar purposes

and 400 million gallons are disposed of either indiscriminantly

or with garbage and trash.

     The collection of used automotive and some used industrial

oil for disposal,  use or recycle is carried out "by an estimated

5,000 small collectors.  We believe that much of the used

industrial oil is burned as a fuel directly by the generator

on-site with or without reprocessing.

Environmental Problem

     Used oil presents an environmental problem "because it is

usually highly contaminated.  Also the oil, itself, can

pollute the environment, particularly when discharged into

surface waters.  A variety of contaminants are added during its
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use.  Automotive crankcase oil is contaminated with lead from

gasoline.  Industrial oils are contaminated with a variety of

materials, but we have very incomplete data on the nature and

degree of this contamination.



                             (2)

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     A large number and variety of chemical additives are added



to oils to improve their performance and extend their useful  life.



Although they serve beneficial purposes during use, they constitute



contaminants in used oil.  We have an incomplete inventory of



these additives and their importance as contaminants in used  oil.



     Perhaps the worst feature of used oil is the fact that it



is typically mixed when it is collected, transported and stored



prior to being ra-used, recycled or disposed.  In this mixing



process, a variety of toxic solvents, PCB's and other toxic



matarials are frequently mixed into used oil.  The results are

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heterogeneous mixtures that can and frequently do contain some



very hazardous materials.  Indeed,  the worst cases of environ-



mental damages associated with used oil resulted from indiscritni-



nant mixing:  dioxin-contaminated used oil employed as a dust



suppressant on a horse arena in Missouri, killing many horses



and threatening humsin life; PCB,-contaminated used oil that has



killed cattle; and road oiling with used oil in Texas which



contained a highly toxic solvent.  It is largely the propensity



for used oil to be a carrier for a variety of highly toxic



solvents, PCB's^and other materials that causes EPA to be



concerned about used oil and to presume that used oil is a



hazardous waste.  We are also concerned about the lead in
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used oil, and here, also, the mixing o'f used oil results in



all used oil being suspected o'f containing lead.  I£ automotive



crankcase oil were segregated from other used oil, our concern



about lead contamination of used oil could be focused on
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crankcase oil and,  further, crankcase oil exclusive of that



derived from diesel-engine fleets.  Although we do not have a



great deal of data on the other contaminants of used oil—



particularly those picked up in industrial oil and those derived



from additives—we believe that the mixing of used oil has the



effect of spreading these contaminants throughout most used oil.



     All uses, recycling and disposal of used oil have the



potential of polluting the environment,  but the nature and degree



of this pollution varies.  The disposal of used oil can result in



the leaching or draining of the oil or its contaminants into  *



surface and ground waters.  Similar potential exists with respect



to used oil that is used as a road oil or in other applications



on the land.  The burning of used oil can result in air emissions



of lead, other metals and incompletely burned organic contaminants.



The reclaiming, re-refining and reprocessing of used oil can



generate highly contaminated sludges, residues and wastewater



and air discharges.  The storage and transportation of used oil



can be attended by leakage and spills into the environment.  They



can also be attended by indiscriminant dumping into the environment,



Although the environmental impacts from individual use, recycling



and disposal operations can vary in degree and sometimes can be



very substantial, the aggregate impact- from the ultimate disposi-



tion of 1.4 billion gallons of used oil each year probably spell



our greatest concerns about used oil.
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Environmental Control of Used Oil

     EPA believes it has jurisdiction under  Subtitle  C of the

Resource Conservation and Recovery Act to regulate  used oil as

a hazardous waste and to regulate the disposal  as well as the

re-use and recycling of this material.   Indeed,  in  our proposed

regulations published December 18/  1978,  we  listed  several used

oils as hazardous waste and proposed to regulate the  disposal,

use-on-the-land and burning-as-a-fuel of  these  oils.   We did

not propose to regulate the reclaiming,  re-refining or other

recycling of these oils, but we. indicated that  we might,  in the

future, regulate these uses.  The Agency  received a very large


number of comments on these proposals.  We had  hoped  to complete

our consideration of these comments and our  further analysis of

the used oil problem in order to include  regulation of used oil

in the final and interim final Subtitle C hazardous waste regula-

tions that are being announced today.  The used oil problem is very

complex, however, and we simply have not  been able  to complete our

work on this matter.  We are, however,  planning to  list and regulate

used oil as a hazardous waste in an amendment to our  hazardous

waste regulations sometime in the fall of this  year.

     As I have mentioned, the used oil problem  is complex and

we believe it merits a special, tailored  set of hazardous waste

management regulations.  We do- not believe it should  be managed

under the same requirements as most other hazardous wastes.  We

feel this way for several reasons.  First, used oil is a resource.
                              s
It can be used and recycled.  Disposal should be discouraged.
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In order to promote the use and recycling of used oil,  while,



at the same time,  controlling its potential  to pollute  the



environment, special regulations are required.   Secondly, because



of the large number of generators of waste oil—366,000—most of



whom are small service stations, garages and other businesses,



because of the number of transporters—5,000—and because of the



unknown but believed large numbers of users  of used oil,  we do



not feel that the highly sophisticated and complex manifest



tracking system of the Subtitle C program is well-suited and



wholly necessary to deal with this problem.   Finally, we believe



that the environmental impacts associated with the use  and recycling



of used oil are different and peculiar to this type of  material.



The requirements of the hazardous waste management regulations are



designed primarily to deal with the long-term containment and



destruction or treatment of wastes and are not always optimal to



deal with use and recycling.



     Against this backdrop of general findings, we have carefully



reviewed the used oil problem and have come  to some tentative



findings with respect to environmental regulation.  These are:



     -  We believe that reclaiming and re-refining of used oil



        should be encouraged but should be regulated.   It is



        important to assure that used oil is delivered  to and



        safely stored at recycling facilities, and it is



        important to control  the waste discharges from these



        facilities.
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        We believe that the burning of waste oil as a fuel should



        be encouraged and can be accomplished in an environmentally



        safe way.  But this use also must be regulated to insure



        environmental protection.  Some types of burning should



        be prohibited or restricted while other types should be



        allowed but controlled.



        We believe that the use of used oil for road oiling,



        dust suppression, pesticide carriers and other land



        applications should be virtually prohibited.



     -  We believe that disposal of used oil should be discouraged



        and, where practiced, should be regulated as any other



        hazardous waste.



        Finally, we believe that the collection, transportation



        and storage of used oil should be regulated but in a



        manner that does not impose a large amount of reporting



        and recordkeeping on generators.



We are working with these concepts in formulating a final regu-



lation to be promulgated this fall under the Subtitle C hazardous



waste management program.



Comments on S. 2412



     EPA agrees with the basic intent., of the bill but has a



number of concerns with its specific provision.



     First, we are concerned that the objectives of the bill



do not reflect the beneficial use of used oil as a fuel.  We have



information that indicates that burning of waste oil as a fuel



is and can be a competitive and appropriate use of used oil,  as
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compared to reclaiming and re-refining,  from the standpoint of


economics as well as conservation of resources.   Section 9001


of the bill fails to recognize this.  As previously mentioned,


use of used oil as a fuel can have environmental impacts,  as


can reclaiming and re-refining,  but we believe these impacts


can be adequately controlled. We recognize that  re—refining . of


used oil for re-use as a lubricant produces a. high.er level of


conservation because it produces a material that,  after


use, can be recycled once again and perhaps several additional


times.  Thus,  re-refining is to be preferred.   However, we also
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recognize that many generators will prefer to burn their used


oil, as a fuel in on-site boilers.   If air emissions are controlled,


this use should not be discouraged.


     Secondly, we believe that most of the provisions of the


bill are alraady provided in the Resource Conservation and


Recovery Act and therefore can be implemented under the current


authority.  Certainly, those provisions of the bill related to


regulation of used oil for purposes of protecting human health


and the environment—principally Sections 9003 (a) (2) (B) and


9005 (b) (5)—are already covered by ,existing authority.  Also,


we believe that many of the provisions of the bill for encouraging


the use and recycling of used oil caJi be accomplished under RCRA.


Section 6002 of RCRA requires Federal agencies to produce products


containing the highest practicable percentage of recovered materials,


and it requires EPA to issue guidelines to encourage and assist
                              (8)

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agencies in carrying out that mandate.   EPA has the authority under


Section 6002 to issue guidelines for use of re-refined oil.  Because


of the Section 6002 mandate, the Department of Defense has already


initiated a program to use increased amounts of re-rafined oil.


The existing authority of Section 6002  seems to be ideally suited


to achieve the objective of §9003 (a)  (2)  (B)  of this bill.


     Thirdly, we are not pursuaded that a new State grant program


is necessary to adequately deal with the used oil problem..  We do


support the concept of aggressive State programs, both to implement


environmental protection requirements and to foster tlie beneficial
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use and recycling of used oil.  We believe that the first of these


objectives can and will be served under the current authorities of


RCRA which provide for authorizing the  States to implement the


hazardous waste management program under Subtitle C and further


provides for Federal grant support to the States to assist them


in this effort.  With respect to the second objective, we believe


that carefully designed regulations and guidelines under current


RCRA authorities can suffice to promote the beneficial use and


recycling of used oil.  Thus by regulation, we believe that we


can set the framework that favors use and recycling and penaits


the private sector to accomplish this  objective without Federal


assistance through State grants.


     We do believe that Section 9003 (b) (1) of the bill, which


requires the labeling of virgin oil to  encourage users to conserve


used oil, has considerable merit and would support enactment of


this provision.  We would point out that EPA already "has a very
                               (9)

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similar mandate under the Energy Policy and Conservation Act,



P.L. 94-163.  Section 383 (d)  (2)  of that Act requires EPA to



prescribe labeling standards applicable to containers of new,



used, and recycled oil relating to proper disposal after use.



However, the timing of this action is predicated on completion



of certain still pending action by the National Bureau of Standards.



     We further believe that Section 9003 (a) (2)  (A) of the bill,



which requires EPA to assure the fitness of recycled or re-refined



oil for intended uses, has considerable merit.  We note that



Section 383(c) and (d) of the Energy Policy and Conservation Act



has a similar provision which requires the National Bureau of



Standards to develop test procedures for determining the



"substantial equivalency" of re-refined and reprocessed used oil



with new oil and further requires the Federal Trade Commission



to promulgate those test procedures, together with labeling



standards, to affect notification to consumers about the equiva-



lency of the reprocessed or re-refined products.  We understand



that implementing a "substantial equivalency standard" presents



some very difficult technical and judgmental problems and believe



that a fitness test is preferable and more readily implemented.



We hasten to point out that Section 9003 (a) (2) (A) would add



a new activity to EPA's many programs-"-an activity with which we



have no experience.  If it is the wisdom of the Congress that



EPA perform this function, we undoubtedly would have to seek



help from the National Bureau of Standards and would have to



gear up.  However, EPA does not seek out this activity.  Based on
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past experience, we do not believe we could meet the statutory

deadline of six months.

     Finally, we do not feel qualified to comment on Section 9004

of the bill and will defer to others to comment  on its merits.

     In summary, instead of supporting this legislation at this

time, we would like to continue to work with this Committee in

implementing the current authorities of RCRA to  deal with the

wise regulation of used oil from the standpoint  of bot-h environ-

mental protection and resource conservation.  As I have already

mentioned, we are moving to use the current authorities of RCRA

to deal with this matter.

     Again, I appreciate the opportunity to provide ttiis statement

and I shall be happy to answer any questions you might have.
                                                        yo 1984
                                                        SW-883
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