PB-237 618
A TECHNICAL AND ECONOMIC STUDY OF WASTE OIL
RECOVERY
PART I: FEDERAL RESEARCH ON WASTE OIL FROM
AUTOMOBILES
TEKNEKRON, INC.
OCTOBER 1973
DISTRIBUTED BY:
National Technical Information Service
U. S. DEPARTMENT OF COMMERCE
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IBLIOGRAPHIC DATA
HEET
1. Report No.
EPA/530/SW-90C.1
PB 237 618
. Title and Subtitle
A TECHNICAL AND ECONOMIC STUDY OF WASTE OIL RECOVERY
Part I: Federal Research on Waste Oil from Automobiles
5. Report Date
October, 1973
6.
Author(s)
Peter M. Cukor, Michael John Keaton, Gregory Wilcox
6. Performing Organization Kept.
No.
Performing Organization Name and Address
Teknekron, Inc. and The Institute of Public Administration
2118 Milvia Street
Berkeley, California 94704 7 ' '
10. Project/T.slc/Work Unit No.
11. Contract/Grant No.
EPA Contract No:
68-01-1806
2. Sponsoring Organization Name and Address
13. Type of Report 8t Period
Covered
Final 1 year
14.
5. Supplementary Notes
6. Abstracts
a W-«W- .y ,
A summary of Federal Research .concerning waste oil from automobiles. J- '
Contains an annotated bibliography of publications concerning waste
oil disposal. "
17. Key Words and Document Analysis. 17o. Descriptors
Secondary Oil Recovery, Economic Analysis
17b. Identifiers/Open-Ended Terms
Waste oil re-refining, recycling, re-refining industry analysis
I7e. COSAT! Field/Group
18. Availability Statement
•O«M NTI«-SB mev. 10-T8) ENDORSED BY ANSI AND UNESCO.
19.. Security Class (This
Report)
„ ^
20. Security Class (This
Page
UNCLASSIFIED
21. No. o.f Page*
THIS FORM MAY BE REPRODUCED
UICOMM-OC
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ATTENTION
AS NOTED IN THE NTIS ANNOUNCEMENT,
PORTIONS OF THIS REPORT ARE NOT LEGIBLE,
HOWEVER, IT IS THE BEST REPRODUCTION
AVAILABLE FROM THE COPY SENT TO NTIS,
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A TECHNICAL AND ECONOMIC STUDY
OF WASTE OIL RECOVERY
Part I: Federal Research on Waste 011 from Automobiles
This report (SW-90c.l) was written by
PETER CUKOR, MICHAEL JOHN KEATON, and GREGORY WILCOX
Teknekron, Inc., arid The Institute of Public Administration
under contract no. 68-01-1806
U.S. ENVIRONMENTAL PROTECTION AGENCY
1974
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This report has been reviewed by the U.S. Environmental Protection Agency.
Its publication does not signify that the contents necessarily reflect the
views and policies of the U.S. Environmental Protection Agency, nor does
mention of commercial products constitute endorsement or recommendation
for use by the U.S. Government.
An environmental protection publication (SW-90c.l) 1n the solid waste
management series.
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Notice
The report A Technical and Economic Study of Waste 011
Recovery, prepared by Teknekron, Inc. and The Institute
of Public Administration under EPA Contract 68-01-1806,
has been published 1n three separate volumes under the
following titles:
A Technical and Economic Study of Waste Oil Recovery -
Part I: federal Research on Waste Oil From Automobiles
A Technical and Economic Study of Haste Oil Recovery -
Part II; An Investigation of Dispersed Sources of Used
Crankcase Oils
A Technical and Economic Study of Haste 011 Recovery -
Part III: Economic, Technical and InstltuttonaT
Barriers to Waste Oil Recovery
Preceding page blank
111
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TABLE OF CONTENTS
1.0 INTRODUCTION AND SUMMARY 1
1.1 Introduction 1
1.2 Summary , 1
2.0 WHITE HOUSE 7
3.0 CONGRESS ...... 9
3.1 Statutes 9
3.2 Bills 9
3.3 General Accounting Office 10
4.0 DEPARTMENT OF COMMERCE 11
5.0 DEPARTMENT OF DEFENSE 13
5.1 Background . 13
5.2 Projects 14
6.0 ENVIRONMENTAL PROTECTION AGENCY 21
6.1 Interest and Background » 21
6.2 Organization and Personnel 21
6.3 Present Programs < .23
6.4 In-House Research and Past Studies... ...28
7.0 FEDERAL TRADE COMMISSION ., / 31
7.1 Background 31
7.2 Interest. 31
7.3 Present Program 33
7.4 Organization and Key Personnel 33
8.0 GENERAL SERVICES ADMINISTRATION 35
8.1 Background .35
8.2 Interest ? 35
8.3 Projects 36
8.4 Organization and Key Personnel 36
9.0 DEPARTMENT OF THE INTERIOR 37
9.1 Background and Interest 37
9.2 Projects. 37
9.3 Organization and Key Personnel 38
t
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TABLE OF CONTENTS (continued)
10.0 POSTAL SERVICE 39
10.1 Background 39
10.2 Interests 39
10.3 Projects , 39
10.4 Organization and Key Personnel 40
11.0 DEPARTMENT OF THE TREASURY , 41
11.1 Background 41
11.2 Interest 43
11.3 Projects .43
11.4 Key Personnel — 43
12.0 DEPARTMENT OF TRANSPORTATION 45
13.0 DEPARTMENT OF AGRICULTURE 47
14.0 NATIONAL SCIENCE FOUNDATION 49
ACKNOWLEDGMENT , 51
CI TAT IONS 53
APPENDIX A: Section 104(m) of the Federal Hater Pollution Control
Act Amendments of 1972. 59
APPENDIX B: National 011 Recycling Act 61
APPENDIX C: Annotated Bibliography of Publications Concerning
Waste 011 Disposal 79
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1.0 INTRODUCTION AND SUMMARY
1.1 Introduction
As with many other problems of national Importance, concern over the
environmental effects of the disposal of used automotive crankcase oil has
spawned a variety of research projects 1n a number of agencies of the feder-
al government. In addition to the obvious participation of the Environmen-
tal Protection Agency, the Departments of Defense, Interior, Commerce and
Treasury, the General. Services Administration, the Federal Trade Commission,
the Postal Service, the White Mouse and the Congress have all been involved
to a significant degree in efforts concerned with finding solutions to the
waste oil disposal problem. Unfortunately, there 1s little coordination of
these efforts amongst the agencies involved and even within an agency there
is a tendency for inadequate communication regarding ongoing research acti-
vities. It is apparent that time and money could be utilized more efficient-
ly if those concerned with research on waste oil disposal could be made aware
of the scope and direction of similar projects 1n the various branches of
the government.
This report seeks to achieve this goal by Identifying and describing
in some detail current and recent federal Investigations related to the waste
oil problem. By drawing together disparate strands of Information concerning
waste oil research programs, 1t 1s possible both to avoid duplication of ef-
fort and to guide future strategy. Through extensive conversations with pro-
ject officers and contractors, a 11st of federal research programs concerned
with the disposition of waste oil from automobiles has been compiled. A
summary of these efforts 1s presented 1n Table 1.
Appendix C to this report consists of an annotated bibliography covering
a very wide range of publications which have resulted from federal research
efforts on used oil disposal. In addition, the bibliography contains refer-
ences to a number of reports prepared by organizations outside of the federal
government. Information contained in these reports bears directly on current
studies being carried out by federal agencies. By providing abstracts of
relevant publications, it is possible to locate and analyze efforts already
performed upon whose results broad federal policy concerning waste lube oil
disposal and future research programs can be based.
1.2 Summary
The material in this report is summarized in Table 1. Two sets of con-
clusions can be drawn by examining the entries in the table - one by reading
down the columns and the other by reading across the rows. The columns, which
represent different functional cuts at the waste oil problem, show that three
elements have received little attention by Interested federal agencies. First,
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there has been little research on the environmental Impacts of various Kaste
oil disposal practices. EPA has been the sole supporter of work In tills
area, and even Its projects have received a relatively lea level of funding.
Data on this element of the waste oil problem 1s crucial because knowledge
of the environmental damages resulting from waste oil disposal permits the
determination of the cost- effectiveness of research directed at this par-
ticular pollutant.
Second, federal research efforts have failed to analyze the economics
of today's re-refining Industry. Although there has been no lack Of economic
evaluation of new re- refining technology, no study of the existing Industry
as an economic system has been made. Obviously, any federal efforts to en-
courage recycling of waste oil cannot be effective with such an overview.
Part III of the present stufy provides the first quantitative snatysls of the
economics of the re-refining lij&stry GS It
Thirdly, little or no effort has been directed toward the establishment
of an overall national policy on waste oil -- both fno pollution control re-
source conservation viewpoints. Two modest EPA studios are the only fodoral
efforts now being made In this area. It Is hoped that this analysis of federal
waste oil research activities may be a beginning step in developing a rational
and coordinated federal policy on the dlspostton of this valuable resource.
Reading across the rows shows the activities of the many federal agencies
with an Interest in waste oil disposal. The Defense Department and the En-
vironmental Protection Agency are the leaders 1n research on this Issue. The
Military's Involvement has resulted both from Its role as the nation's largest
consumer of lube oil and producer of waste oil, and frtcn Us responsibility for
establishing quality specifications for and for actual procurement of lube oils
required by all federal agencies. Several other federal agencies are also
Involved because they, too, are large customers of lube oil. Thase groups In-
clude the General Services Administration, the Department of Agriculture and
the Postal Service. The Involvement of several other agencies has baen related
to their normal functions, such as the Treasury Department, which has interpreted
the excise tax liability of buyers and producers of lube oil and the Federal
Trade Commission, which 1s now reconsidering the labelling requlrentants for re-
refined oils. Agencies which have the potential to become major participants
1n forming new policies on waste oil, such as the Department of Cicpiarce and tha
National Science Foundation, have also revlewsd problems related to the disposal
and recovery of waste oils.
"A Technical and Economic Study of Haste 011 Recovery - Part III: An Analysis
of Economic, Technical and Institutional Barriers to Haste 011 Recovery;"
Teknekron, Inc.; EPA Contract Mo. 68-01-1806; October 1973.
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2.0 WHITE HOUSE
Just after Us creation 1n 1970*, the White House Council on Environmental
Quality (CEQ) put together an inter-agency task force to study the need for new
federal policy on waste oil disposal. However, the CEQ staff shelved the Is-
sue following a preliminary evaluation of the expected problems and probable
benefits. Since that time CEQ has done very little on waste oil and has no
plans to revive the issue in the near future.
CEQ was discouraged from developing new waste oil policy for two reasons:
product quality and environmental Impact. In the area of product quality, it
could not get adequate technical data on the quality of re-refined lube oil,
and the data that was available appeared to show that re-refined oil was fre-
quently inferior. In particular, the complete removal of additives from waste
oil seemed to be extremely difficult. As for environmental impact, CEQ could
not get any evidence that current waste oil disposal practices were causing
significant damage. With damages unclear and no promising alternative use for
waste oil, 1t was felt that compared to other pollutants waste oil did not merit
the effort required to deal with it.
Although the CEQ task force effort was scrapped, the investigation resulted
in a CEQ request to the Defense Department to look into the use and possible
procurement of reprocessed lube oil. This request eventually led to a proposal
by the Defense Supply Agency to conduct a major study of re-refined o1lz.
Staff responsibility for the Issue of waste oil disposal has shifted
several times since CEQ's creation. William MatuszesM was the staff assis-
tant in charge when the 1970 inter-agency task force was active. The FTC,
GSA, Bureau of Mines, Treasury Department, and EPA were Included 1n the dis-
cussions. Responsibility was then shifted to Eric Zausner and recently to
Steffen Plehn, who now has responsibility for the files developed during CEQ's
past waste oil investigations. Last fall, Plehn made a brief review of devel-
opments in the field, but decided that the situation had not changed enough to
warrant renewed CEQ interest. The product quality and environmental Impact
issues continue to be seen as major obstacles.
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3.0 CONGRESS
Congress 1s the source of much of the Increasing Interest 1n waste oil.
It has mandated a thorough EPA study of waste oil and has raised many of the
Issues and new policy Ideas now being widely considered. In addition, the
General Accounting Office recently began a survey of waste oil disposal prac-
tices at federal facilities.
3.1 Statutes3
The most Important recent enactment concerning research on waste oil
was the passage last fall of amendments to the Federal Water Pollution Con-
trol Act2*. Section 104(m) directs EPA to study waste oil: present disposal
practices, biological impacts, and future possibilities for use. Preliminary
results of EPA's study were reported last AprilS and final results are requir-
ed by April 15, 1974.
The waste oil study provision was written Into the law largely at the
insistence of Sen. J. Caleb Boggs (R-Del.) who had been concerned with the
issue since 19676. However, Sen. Boggs was not returned to the Senate in
the 1972 election, and the Senate lost Its leading proponent of improved waste
oil disposal practices.
3.2 Bills
In the House,, Congressman Charles A. Vanik (D-Ohio) has led the crusade
on waste oil but so far has failed to get his proposals enacted. This year
he introduced a comprehensive bill, the "National Oil Recycling Act", to con-
trol waste oil pollution and conserve resources.' A major provision of the
bill would reform the excise tax treatment of lubricating oils by abolishing
the current tax exemption enjoyed by virgin lube oil that is not used in high-
way vehicles. The bill would also change the labeling requirements for re-
refined oil imposed by the Federal Trade Commission, prohibit oil companies
from restricting their service stations from selling recycled oil, encourage
Federal procurement of recycled oil, and force all lube oil retailers to pro-
vide disposal facilities and to sell only in returnable containers.8
Many of the provisions in Vanik's bill are similar to provisions in other
bills either now pending in Congress or introduced in the past. Bills to re-
form the excise tax treatment of lube oils were introduced in the Senate this
Preceding page blank
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year by Senator Strom Thurmond (R-S.C.)9 and 1n the House by Congressman Joseph
P. Vigorlto (D-Pa.)10. These measures would allow re-refiners to be exempted
from payment of excise taxes on virgin oil that they buy to blend with their
re-refined oil". A bill to exempt lube oil, that meets certain performance
specifications, from burdensome FTC labeling regulations was Introduced by Sen.
Boggs in 1968*2. NO action was taken.
3.3 General Accounting Office
i .•
The General Accounting Office (GAO), an agency of the U. S. Congress, be-
gan an exploratory survey of waste oil disposal by federal facilities 1n July
1973. Some $25,000 will be spent to conduct, and analyze the results of, staff
visits to federal facilities In a specific region of the country. The objec*-
tive is to evaluate the need for a broader national study which would result in
a formal report to Congress. The survey will attempt to determine what 1s cur-
rently being done with waste oil and whether preferable disposal alternatives
exist. The results of the survey should be available by October, and a de-
cision on a full-scale,nation-wide review 1s expected soon thereafter.
The GAO survey grew out of the agency's past review of EPA's implementation
of the Solid Waste Disposal Act. Recent Interest 1n energy supplies and oil
imports led GAO to consider an examination of waste lube oil. The project was
undertaken on GAO's own Initiative and not at the direction of Congress.
For administrative reasons, the work will be directed from the GAO Seattle
regional office. Field Investigations will be limited to two states, Washing-
ton and Oregon, and to three federal agencies, Defense, Postal Service, and
General Services Administration. However, since the survey 1s meant to be
exploratory, other agencies and states may be Included 1f the problem or poten-
tial solutions appear to be outside the original boundaries. Of the 200 man
days alloted to the project, 150 will be spent In Seattle and 50 for the pro-
ject review 1n Washington, D. C.
J. Kevin Donohue, an Audit Manager 1n the Resource and Economic Develop-
ment Division of GAO, has overall responsibility for the waste oil disposal
survey. John McNamara 1n the Seattle regional office Is the project officer.
10
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4.0 DEPARTMENT OF COMMERCE
The Commerce Department's National Bureau of Standards (NBS) was once
active on the issue of waste oil re-refining but has done nothing on the
topic in the recent past and plans no action in the future. Twice in the last
six years, there have been tentative plans to have NBS test the quality of re-
refined oils, but neither attempt went past the talking stage, IwS no longer
has the facilities nor expertise to evaluate the quality of lubricating oils.
NBS published a letter circular in August 1950 entitled "Re-Refining Used
Crankcase Oil"13. Tne three-page report concluded that the quality of re-refined
oil depends upon the quality of new oils from which it is obtained, the extent
of deterioration, and the re-refining process. It admitted that NBS did not
have adequate test data to support any statement on the relative performance
of new and re-refined oils. The Automotive Section of NBS was abolished in
the early 1950's and the Fuel Section in 1960.
In 1967, as a result of hearings on waste oil that year , Senators Magnuson,
Muskie, and Boggs wrote to the Department of Commerce (DOC) asking that NBS
perform quality tests on re-refined oil. DOC requested $300,000 for the task
but the request was rejected by the Bureau of the Budget.
In 1970 the Federal Trade Commission (FTC) queried NBS on the quality of
re-refined oil. The FTC had promised to reconsider its labeling" restrictions
in the light of new data on product quality during its participation in a CEQ
waste oil task force11*. NBS told the FTC at that time that it wa"s unable to
supply any information.
11
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5.0 DEPARTMENT OF DEFENSE
The Defense Department has sponsored two major waste oil studies.
The first is a Defense Supply Agency program to search for ways to Increase
federal purchases of products made from used oil. The second is a series of
plans for the Navy Supply Systems Command for disposal of oily wastes at Naval
facilities. In addition, the Army Materiel Command and the Air Force are pur-
suing small independent studies of waste oil as a fuel.
o.
5.1 Background
The military's waste oil policies have a strong influence on all other
federal agencies and on much of the private market. The Defense Department
(DOD) is the nation's largest and most careful buyer of vehicle lube oil and
its largest producer of waste oil. Its specifications for lube oil quality
are followed by many state, local, and commercial fleet maintenance facilities.
Even more important, the General Services Adm1n1stration(GSA) has dele-
gated authority to the Defense Supply Agency (DSA) to procure fuel and lubri-
cants for the entire federal government*".
The military's great influence in the lube oil field has meant that its
views have a major impact -- and it has taken a very dim view of the quality
of re-refined oil. DSA buys lube oil for the military and other federal
agencies according to specifications written by the Army Materiel Command's
Coating and Chemical Laboratory at Aberdeen Proving Ground in Maryland.
These specifications exclude the use of previously used materials such as
re-refined oils on the grounds that there is no reliable information on the
quality of such oils*7. According to DSA, the small, independent firms which
typically engage in oil re-refining do not have the financial capability to
support the kind of laboratory and other testing needed to provide essential
data on quality and consistency.
DSA believes that the quality of re-refined stocks may be affected by two
factors: treatment method and waste oil composition. As for treatment method,
there is concern that the acid frequently used to remove contaminants may
also remove naturally present inhibitors and lubricating components. Re-
refiners dispute this opinion but have not been able to show convincing data
to the contrary.
The variation in the source of used oil presents an even tougher problem.
Vehicle lube oils are currently procured for the government only after they
have passed an extensive series of qualifying engine tests costing between
13 Preceding page blank
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$10,000 and $80,000. Once an oil 1s qualified, the supplier is required by
contract not to change his additive package, his refining method, or his
source of crude oil. Of course re-refiners who get their waste oil from ser-
vice stations and other scattered sources have little control over the quality
of their feedstock and have no hope of entering into such a contract. DSA
believes that most of the re-refiners could not afford even one set of quali-
fying tests, let alone a set of tests for each new batch of re-refined oil
produced.
5.2 Projects
DSA, as the central purchaser of military supplies, 1s mainly concerned
about the quality and cost of new lube products, while the Individual services
are more concerned with how to dispose of their waste oils without running
afoul of pollution regulations.
(1) Products from Waste 011: DSA
In September of 1972, DSA Issued Its proposal for a research effort on
waste oil disposal, "Waste 011 Recycling Study"i°. The proposal and a back-
ground report were prepared at the request of Deputy Assistant Secretary of
Defense for Health and Environment, John A. Busterud. Although Busterud re-
portedly liked the proposal, he left to join the Council on Environmental
Quality before any action could be taken. The proposal then went to the
Department of the Army for evaluation in early 1973, but has not yet been
either approved or disapproved.
The proposal makes the following recommendations:
- Take steps to acquaint members of the re-refining Industry with
various petroleum products procured by the government that are not restricted
to virgin base stocks.
- Initiate research to determine the physical characteristics of waste
oil generated by vehicles operating on unleaded gasoline and low-ash oil;
choose a military Installation to demonstrate the feasibility of utilizing
the crankcase drainings as a heating fuel.
- Start a study to develop specifications for an automotive lubricating
oil containing available re-refined stocks.
DSA itself proposed to do the first task and has already contacted
lube oil re-refiners. On the other hand, the DSA proposal gives, the U. S.
Army Materiel Command (USAMC) the primary responsibility for the remaining
two tasks because the USAMC has both the final authority to write motor
oil specifications and the laboratory facilities to do the necessary technical
work. Although the proposed DSA study tasks have not been formally approved
14
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and assiqned, the USAMC has begun preliminary work on the project under its
general research authority in this area.
The first task recommendation, procurement of unrestricted re-refined
products, is thouqht to be a short term way of assisting the beleagured re-
refining industry. DSA points out that of the 210 lube products handled by
the Defense Fuel Supply Center (DFSC), about 200 do not prohibit the use of
re-refined materials. The DSA suggests that the re-refiners' lack of knowledge
of quality requirements and procurement procedures may be a problem and that
a single education program is the answer. Nevertheless, DSA also acknowledges
that nearly half of the volume of lube oils procured by DFSC are restricted
to virgin stock. Therefore such procurement cannot be a long-term solution
to waste oil problems however much it may assist individual re-refiners.
The second task recommendation, an investigation of non-metallic waste
oils, is an attempt to evaluate the use of waste oil as fuel from the stand-
point of expected changes in oil composition over the next few years. DSA
suggests that planned environmental restrictions on lead in gasoline and
likely environmental restrictions on metallic additives to lube oil will
produce ashless oil that can be burned without causing air pollution. The
DSA proposal recommends that performance of lead-free gasoline and low ash
content lube oils be demonstrated at a particular military installation,
that the resulting waste oil be blended with fuel oil, and that the emissions
and burner operation of the mixture be monitored.
The last task recommendation, development of military specifications for
re-refined lube oils, is the most difficult and DSA has requested extra re-
sources to carry it out. The proposal calls for a three-year effort, three
full-time personnel5 and an additional $150,000 per year for laboratory sup-
port and engine testing.
In carrying out the study, DSA plans to identify all re-refiners and col-
lect re-refined base stock samples from their USAMC laboratory analysis. The
analysis is to determine the physical characteristics and quality variations
of re-refined oils now on the market. The variations in batches resulting from
different waste oil sources, treatment methods, and seasonal changes will be
of special interest. It is proposed that the Bureau of Mines help in the work.
Once allowable parameters for re-refined oils' are established, the USAMC will
attempt to develop simple laboratory tests for monitoring lube oil character-
istics so that consistency can be assured. Appropriate additive packages will
be combined with the re-refined st.ocks and performance will be measured with
a series of engine tests. If 100 percent re-refined oils are found to be un-
qualifiable, the USAMC will test various blends of virgin oil and re-refined
oil until a qualifying mixture can be specified. Finally, it is proposed that
a military installation demonstrate the performance of the newly specified oils
over a 12-month trial period.
Mr. Harry Ammlunq, Director of the USAMC1s Coating and Chemical Laboratory
in Aberdeen, Maryland, would have overall responsibility for the parts of the
15
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DSA project involving fuel tests of ashless waste oil and specifications for
re-refined oil. Mr. Charles F. Schwartz and Mr, E. LePera of Aberdeen would
have the chief operational responsibility. Mr. Jan B. Reltman, of DSA's Field
Support Division, drafted the original DSA proposal with the assistance of Dr.
John A. Krynitsky of the Defense Fuel Supply Center's Office of Technical Ser-
vices.
(2) Waste Oil as Fuel: AMC Coating and Chemical Laboratory
The Army Materiel Command has its own ongoing project involving waste
oil disposal. Since September 1972, the USAMC's Coating and Chemical Labor-
atory has burned 40,000 gallons of waste oil as fuel using a 5% - 10% blend
with No. 2 virgin fuel oil The project is a small, informal one requiring
no funds. Stack emissions have been measured before and after introduction
of waste oil. Although no numerical data has been released as a result of
the test, USAMC has found neither excessive emissions nor boiler fouling.
Staff from nearby Edgewood Arsenal are helping to monitor emissions. The
USAMC is now considering a recommendation that other Army Installations use
this method of disposal.
The USAMC's study of waste oil as fuel began largely as the result of
an order in 1972 from the USAMC's Troop Support Division which banned ground
dumping, Including the use of waste oil for dust control. Disposal was limit-
ed either to selling, paying for collection, or burning. Open burning is not
allowed and there have not been enough Incinerators to destroy the waste oil.
Moreover, in many areas re-refiners could not readily be found to collect it.
As a result, waste oil has been collecting at Army posts, camps, and stations
across the country.
In an attempt to control the unwanted stockpiling of waste oil, USAMC
has informed all Army facilities of the location of nearby re-refiners. If
this proves inadequate, USAMC plans to meet with the Association of Petroleum
e- efiners to see what can be done to increase collection services. In the
meantime, the Army has collected data on waste oil types, quantities, and lo-
cations at its installations, but has not analyzed the information. It is
hoping that the USAMC tests of waste oil for fuel will provide a way to re-
duce its increasing waste oil stockpiles.
(3) Elimination of Waste Oil Generation: USAMC Army Fuels and
Lubricants Laboratory
The Army Materiel Command 1s trying yet another solution for waste oil
disposal problems: non-generation. The USAMC's Army Fuels and Lubricants
Laboratory in San Antonio, Texas, 1s running tests to determine the feasibil-
ity of eliminating automobile oil changes entirely. The project is costing
in the neighborhood of $50,000 and will be completed by the end of 1973.
The first phase, lab tests, were begun early this year and have been comple-
ted. The second phase, "fleet testing", will start in fall 1973. In this
phase, military jeeps will be driven 20,000 miles with sealed crankcases.
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The Army's rationale for the program is that the deterioration of lube
oil can theoretically be counterbalanced by the quality, frequency, and
amounts of make-up oil added to replace the old lube oil burned in the engine.
If enough fresh, high quality lube oil can be put 1n the crankcase to dilute
the dirty used oil, then the overall quality of the lubricant can be kept at
an acceptable level. However, the only way to provide enough room for the
amounts of new oil required 1s to Increase the burning of oil 1n the engine ~
contrary to the usual objective of decreasing engine oil burning. The Army
estimates that an average engine 1n good condition and using clean fuels would
need to burn up about a quart of oil every 1100 miles to allow enough new oil
to be added. It warns, however, that under more typical conditions, the burn
rate would have to be higher since service station fuel 1s not particularly
clean and fuel contaminants are a major cause of lube oil deterioration.
The Army Fuels and Lubricants Laboratory argues that the automobile en-
gine may be an excellent incinerator for used lube oil. Since the Army feels
that the most practical use of waste oil may be as fuel anyway, 1t reasons
that expensive handling can be eliminated by recovering the fuel value
within the automobile engine. An attempt will be made to compare the air
pollution and other environmental Impacts of this burning method with other
more conventional methods. The Army Laboratory will also investigate what
this approach implies for engine design and wasteful increased burning of
fresh new oil.
The project leader is Sidney Lestz, Manager of the Laboratory's Fuels and
Lubricants Engineering Section. Roy D. Quillian directs the Laboratory and
reports to Harry L. Ammlung, Director of the Army's Coating and Chemical
Laboratory in Aberdeen, Maryland. The USAMC's Fuels and Lubricants Laboratory
uses facilities owned by the Southwest Research Institute.
(4) Disposal of Oily Wastes: Navy
In March 1972, the Research and Development Branch of the Naval Supply
Systems Command (NASUP) let a contract for $275,000 to Esso Research and
Engineering Company to develop plans for disposal of all oily wastes at nine
major Navy terminal complexes^, including Marine Corps facilities. Used motor
vehicle lubricants are included, but represent only a small percentage of total
Navy oily wastes. NASUP estimates that with the Esso plan,98% of oily waste
will be reclaimed as fuel20, the remaining 2% going to landfill. All research
is now completed and reports were due in by June 25, 1973. The Navy hopes
to receive an appropriation in fiscal 1975 for construction funds to implement
the plans.
At each of the nine locations,Esso1s scope of work required these tasks:
- An estimation of the quantity, quality and location of all oily
wastes, both ashore and afloat.
- Explicit consideration of a wide range of solutions and designation
of the most cost-effective.
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- Design of an implementable area-wide system for collection, proces-
sing and sale of oily waste for fuel.
- Finding ways to have private industry solve the problem, or short
of that, to have other government agencies cooperate; as a last resort the
Navy would go into the disposal business by itself.
Although the plans have all been completed and many have been submit-
ted for approval, revisions will be needed to take Into account recently an-
nounced base closings, such as the operations shift from Long Beach to San
Diego. It is not anticipated that the revisions will significantly retard
Implementation since the adjustments will be relatively minor and can be made
while reviews are proceeding.
The impetus for the Navy oily waste program goes back to 1970. In June
of that year Congress passed the Water Pollution Control Act calling for a
cessation of oil dumping at sea. In a November NATO meeting, the U. S. in-
troduced, and won, a resolution that by mid-decade all NATO nations should ach-
ieve a complete halt of international discharges Into the sea. The only alter-
native was development of extensive shore facilities to dispose of the oil.
The federal project officer for the Esso study 1s Donald H. Jermain of
NASUP's Research and Development Branch. Commander Joseph D'Em1d1o, Director
of the Navy's Environmental Protection Division, has overall responsibility
for Navy waste disposal activities.
(5) Waste Oil as Fuel: A1r Force
The Air Force has awarded two waste oil research contracts to Esso
Research and Engineering Company. The first contract is for $39,000 and
calls for Esso to perform a paper study of alternative techniques that the
Air Force might use in disposing of waste petroleum, oils, and lubricants
(POL's)21. The study is to be completed by the end of October and the final
report released soon thereafter. The second contract is for $41,000 and
provides for actual field testing of one of the alternative techniques being
analyzed in the first contract: use of POL's as fuel". It 1s to be com-
pleted by the end of August 1973.
The objective of the first study 1s to Identify alternative POL dis-
posal techniques and to recommend criteria that Air Force installations, in
different circumstances, can use 1n choosing among these techniques. The
criteria will include the amounts and kinds of POl's generated, nearness of
the installation to purchasers, local air quality and so forth. The Air
Force has some data on the kinds and amounts of POL's generated at its bases
and has supplied the information to Esso. Esso will analyze this data
along with available disposal technology and make specific recommendations on
optimal disposal approaches at specific facilities. Esso has a general pre-
ference for fuel uses but project supervisors feel that their technical review
is capable of catching any biases in this direction.
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The objective of the second study is to test the feasibility of burn-
ing POL's as fuel, blended either with fuel oil or natural pas. Both heavy
and light POL's are to be tested, but waste crankcase oil has been excluded
from the experiments on the grounds that there is already sufficient experi-
mental data on its use as fuel. Solvents, contaminated fuels, and synthetic
aircraft oils will be the primary focus. The short-term nature of the study
will not allow burner fouling or air pollution to be studied extensively.
Instead, blending ratios, fuel concentrations, and similar process variables
will be examined.
The two contracts are being monitored by the Air Force Weapons Laboratory
at Kirtland Air Force Base, New Mexico. Kirtland has service-wide responsi-
bility for environmental engineering and research development. Lt. Ronald
H. Kroop, an environmental engineer in the Environics Branch of the Laboratory,
is the project officer for both studies.
At Air Force Headquarters in Washington, Col. Herbert I. Bell, Chief of
the Air Force Environmental Protection Group, has overall responsibility for
supervising waste oil disposal research and policy development. Col. John
Thompson, an environmental engineer, has the chief staff responsibility.
The second Esso contract on fuel uses came as a direct request from this group.
Air Force Headquarters indicates that waste oil is currently building up
at the service's bases because opportunities for disposal have diminished.
Waste oil disposal practices vary widely from base to base, but none presently
participate in any "closed-loop" re-refining system. Some of the oil 1s still
being used for dust control. Headquarters is doubtful that either fuel use
or fuel recycling to lube oil will provide a long-term solution to waste oil
disposal. Instead, it believes that reprocessing of waste oil to other petro-
leum products, such as the diesel fuel produced by NORCO23, is the best solu-
tion. Futhermore, it believes that the Air Force should be part of a much
larger national system of waste oil collection and reprocessing.
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6.0 ENVIRONMENTAL PROTECTION AGENCY
6.1 Interest and Background
The Environmental Protection Agency (EPA) is the most active*organiza-
tion in the federal government's search for solutions to the waste oil
problem. EPA's interest is motivated by three concerns:
- Pollutioncaused by waste oil disposal
Most of the waste oil generated in this country is dumped
either in sewers or on the ground, and both methods cause
severe water pollution. On the other hand, incineration
or use as a fuel is likely to cause significant air pollution.
- Pollution caused by waste oil treatment
Re-refininq of waste oil and other treatment techniques
result in ground and water pollution from acid sludges,
spent clay, and other process residuals. Air pollution
by noxious odors can also be a problem.
- Resource conservation
Dwindling petroleum reserves and higher petroleum explora-
tion costs make dead-end disposal of waste oil an increasingly
short-sighted approach.
EPA's interest in waste oil has been both broadened and focused by recent
amendments to the Federal Water Pollution Control Act24. The agency is called
upon to report to Congress within eighteen months on a variety of waste oil
issues. Several of these issues have not been emphasized in past EPA re-
search, and a number of projects have recently been funded to yield the
required information.
6.2 Organization and Personnel
The Office of the Administrator has assigned the Office of Research and
Development (OR&D) the job of formulating EPA waste oil policy, producing
the waste oil study mandated by Congress and of coordinating the additional
EPA research needed to produce the study report. Kurt .Jakobson of the Office
of Environmental Engineering will gather and evaluate data required by Wate>r
21 Preceding page blank
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Pollutions Act, Section 104(m), subparagraph A, the generation, nature, col-
lection, disposal, and uses of waste oil. Dr. David Nyquist of the Office
of Environmental Sciences will provide the Information required by subpara-
qraph B, long-term, chronic biological effects of waste oil in the environ-
ment. John A.Jaksch of the Implementation Research Division is responsible
for subparagraph C on markets, federal procurement, and economic and legal
factors.
Since other EPA units have an Interest, and expertise, 1n waste oil pro-
blems, a working group has been formed to coordinate their Inputs. In addi-
tion to the previously mentioned officials, the working group membership
includes Dr. Peter Lederman of OR&D's National Environmental Research Center
in Cincinnati; Thomas D. Clark of the Office of Solid Waste Management Pro-
grams; Cheryl Wasserman of the Office of Planning and Evaluation; Richard Hess
and Donald Walters of the Office of A1r and Water Progrems; Kenneth Woodcock
and Henry Stetlna of the Office of Enforcement and General Counsel; and William
Holmberg of the Office of Regional Liaison. Jakobson 1s chairman of the work-
ing group.
EPA's National Environmental Research Center in Cincinnati (NERC) is a
technical arm of the Office of Research and Development and has funded tech-
nical studies of waste oil reclamation processes for several years. Dr. Peter
Lederman, Director of the Center's Edison Water Quality Research Laboratory
in New Jersey is supervising these activities. He will contribute to the
working group 1n the area of waste oil generation and collection, and in the
area of re-refining and fuel oil technology. Leo McCarthy, also of the Edison
Lab, will report on the biological effects of waste oil burning.
The Office of Solid Waste Management Programs' Division of Resource Re-
covery has an interest in waste oil as a resource that can be recycled. Dr.
John H. Skinner, Chief of the Division's Resource Recovery Analysis Branch,
assigned Thomas D. Clark to supervise projects dealing with this Issue.
The Office of Planning and Evaluation is interested in waste oil from
the viewpoint of policy development and prospective legislation. Ms. Cheryl
Wasserman, a member of the working group* works in the Policy Planning Divi-
sion.
The Office of A1r and Water Programs' Division of 011 and Hazardous
Materials,under Kenneth E. Biglane,has an Interest in waste oil as a poten-
tial water pollutant. Richard Hess 1s responsible for developing regulations,
and operating programs, to prevent and mitigate the effects of oil spills.
Donald Walters, in the Office of Air Programs, will advise the working group
on the air pollution effects of waste oil burning.
The Office of Enforcement and General Counsel 1s to comment on pos-
sible enforcement actions that would result from any new legislation recom-
mended. It will also assist 1n the Interpretations of any existing legis-
lation that regulates waste oils. Kenneth Woodcock 1s assisted 1n this
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responsibility by Henry Stetina who will interpret state and local waste
oil laws for the working group.
William Holmberg, Office of Regional Liaison, will review the work-
ing group's work and study recommendations from the perspective of EPA's
regional offices to ensure that plans are administratively feasible.
6.3 Present Programs
EPA has stepped up its research efforts on waste oil and changed its
focus in response to Congress's call for an EPA report. EPA has shifted its
efforts from basic technical studies to practical evaluations of alternative
comprehensive disposal strategies. In the past the agency has emphasized
development of pollution-free disposal and treatment processes, whereas pre-
sently waste oil economics and federal policy options have become major con-
cerns.
Most of EPA's research projects are being pursued under contracts let
by the Office of Research and Development. The present study, however, is
funded by the Office of Solid Waste Management Programs. The other EPA
research projects are discussed below.
(1) Technology for Reprocessing to Fuel and Diesel Oil: NORCO
EPA's biggest investment in development of waste oil technology
has been the NORCO study. In 1969 the National Oil Recovery Corporation
(NORCO), a small company in Bayonne, New Jersey,, received a $338,000 grant
from EPA to develop a low pollution process for turning waste oil into
useful petroleum products other than lube oils, particularly low sulfur
heating oil and diesel fuel. The project was completed in 1971 and produced
a report entitled, "Conversion of Crankcase Waste Oil Into Useful Products"25.
Soon afterward, EPA gave $352,000 more to NORCO for further research, this
time in the form of a two-year contract26.
Although NORCO scored some successes In the Initial research project, a
number of problems remained. The vacuum distillation process being evaluated
produced No. 2 and No. 4 fuel oils that were low in sulfur and metals. It
also produced some marketable lube stocks. Some experts, however, regard
the technology as relatively antiquated2?„ The method avoided the use of
acid and therefore eliminated the need for acid sludge disposals but not all
disposal problems were solved. Residual metals proved particularly hard to
get rid of. When the grant expired, NORCO predicted that new and added
equipment developed with the aid of continued EPA funding would result in
90 percent recovery of waste oil at lower cost without creating residual
waste problems.
EPA has specified the following tasks in its current contract:
- Develop a treatment process unit to remove suspended colloidal and
dissolved organic and metallic compounds either from the feedstock prior to
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processing or from the products after processing 1n order to upgrade product
quality. Higher level (No. 1 and No. 2) burner fuel 1s sought.
- Design and develop specifications for a bottom's Incinerator or develop
product outlets for the high metals content bottoms In order to preclude the
discharge into the environment of these toxic materials.
- Conduct studies to determine the quality of products produced.
- Conduct various plant runs to obtain systems design and operating
data.
In all, three different re-refining approaches are being evaluated:
straight vacuum distillation, solvent extraction followed by distillation,
and hydrotreating.
The NORCO project is being carried out under the supervision of EPA's
Edison Water Quality Laboratory, a division of the National Environmental
Research Center 1n Cincinnati. Richard Keppler, a research and development
representative in EPA's Region I office (Boston), is the project officer.
The contract is to be completed by the end of January 1974.
(2) Systems for Collection and Reprocessing to Fuel 011: MES
In June 1972, EPA granted the Maryland Environmental Service (MES)
$140,000 for development of a comprehensive collection and treatment plan
to solve the state's waste oil problems. Maryland contributed $50,000 of
its own funds and contracted with Environmental Quality System, Inc. (EQSI)
of Rockville, Maryland, to perform most of the research. In July 1973,
EPA made an additional $42,000 grant to MES to find out how to get rid of
solid residuals 1n bottoms. MES will contribute about $8,000 of its own
money.
Once plans are completed, MES will consider several options. It may
attempt to interest private industry in an area-wide franchise or it may
itself build a pilot waste oil processing plant. Such a plant would require
about $1 million in state funds and federal assistance. In any case, MES
hopes to implement the collection part of the plan as soon as possible.
The original grant proposal to EPA28 lists the following objectives:
f>
- Perform a state of the art review and analysis of existing techno-
logy for reclaiming, reprocessing, and re-refining waste oils.
- Provide a management program for collection and handling of waste
oil. The program should specify the number of trucks, the collection net-
work, pickup and delivery scheduling and storage points.
- Provide a preliminary financing plan with alternative methods of
24
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financing and management.
- Perform preliminary engineering and prepare plans and specifications
for the waste oil recovery system 1n the State of Maryland, such that detail-
ed plans and specifications may be finalized and construction may proceed
Immediately.
By December 1972, EQSI had spent more than $40,000, completed the re-
search for the first objective, and released a report, "Maste Oil Recovery
Practices, State of the Art81.
Although the Maryland system 1s to study production of both lube oils
and heating fuel, MES has decided to emphasize fuel oil production from waste
oil rather than lube oil re-refining. An earlier Maryland report, "Used 011s,
A Waste or a Resource?"^? favored the recycling approach but for several rea-
sons MES, in 1972, decided against the approach. First, MES felt that it
could not easily assure a demand for lube oil products for the state buys
fuel oil for its buildings but has no motor pools to provide a market for
automobile lube oils. Second, MES realized that the wider latitude in
acceptability of fuel oil quality would reduce the need to control feedstocks
and therefore would be likely to result in more oil being reprocessed and
less being dumped in the environment. Third, the still unresolved technical
problems involved in producing lube oil made it appear advisable to begin
with the easier task of making fuel oil. Finally, MES hoped to avoid con-
flicts with lube oil producers by settling for a product that they felt would
pose less competition as the fuel oil produced will be only a small percen-
tage of total fuel oil presently purchased.
Dr. Peter Lederman, Director of NERC's Edison Water Quality Research
Laboratory, is the Federal Project Officer for the Maryland Studies.
Michael T. Long, Chief of Administrative Services, has monitored waste oil
research for the MES but his responsibilities have recently been taken over
by J. Carl Uhrmacher, MES Baltimore Regional Engineer. All system plans are
expected by the end of September 1 973, and the bottoms research is expected
to be completed by the end of 1974.
(3) Blending Waste Oil for Fuel: GCA
In April 1972, the GCA Corporation, under a $29,500 contract with EPA,
began an exploration of the economic and technical feasibility of using
waste automobile oil for firing municipal incinerators^0. Then in May 1973,
EPA let a $50,000 contract to GCA for a study of the technical, economic,
and environmental issues raised by using waste oil as a blended fuel oil,
particularly in steam power plants^!.
GCA's report of its first contract study concluded that the physical
and combustion properties of automotive waste oils make them quite suitable
as an auxiliary fuel in municipal incinerators^. Using waste oil in this
way was found to reduce combustible air pollutants and excessive residue
25
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that result from wet or low heat-value refuse.
In reaching these conclusions, GCA reviewed the physical and chemical
properties of waste oU to determine Us suitability as a fuel oil. It used
a combustion model of a refuse bed to estimate the quantities of waste oil
needed, and evaluated alternative techniques for Injecting the waste oil Into
the incinerator. It also assessed monitoring and control techniques, stor-
age and fuel systems, capital and operating costs. A1r pollution Impacts
were examined, but only lead concentrations around the Incinerator were
considered.
The second GCA contract -- on power plant fuel oil — calls for a report
on these issues:
- Collection and analysis of Information on potential Industrial de-
mand, especially by steam power plants, for blended waste oil.
- Estimates of downtime and repair costs connected with use of different
grades of pretreated waste oil 1n varying proportions with ordinary fuel oil
of varying grades.
- Estimates of the profitability of pretreatment operations under
varying assumptions as to Input prices, output prices, and type of treatment.
- The effect of environmental restrictions on the economics and tech-
nology of pretreatment operations and power plants.
Richard Keppler was the EPA project officer for the first GCA contract
and Dr. John A. Jaksch, an operations research analyst in the Office of
Research and Development, is the project officer for the second GCA contract.
The report from the first contract was released 1n February 1973 and the re-
port from the second is due the end of January 1974.
(4) Systems for Collection and Reprocessing to Lube Oil: Teknekron
In March 1973, EPA let a $58,000 contract to Teknekron, Inc. of
Berkeley, California for a project entitled, "A Technical and Economic Study
of Waste Oil Recovery"33. Teknekron and its subcontractor, the Institute
of Public Administration, will Investigate the feasibility of setting up
"closed loop" oil disposal and reprocurement systems, with special attention
to opportunities at federal facilities.
According to the scope of work, Teknekron and IPA will:
- Report on current federal waste oil research programs and provide
a waste oil disposal bibliography.
- Investigate dispersed generation of waste oil as a result of back-
yard, user-performed oil changes.
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- Describe and evaluate the Internal economics of the wfistgroll re-
refining Industry.
- Investigate the feasibility of establishing a "closed-loop" recycling
system that could be demonstrated at a federal Installation.
The Teknekron project Is being supervised by Thomas D. Clark of EPA's
Office of Solid Waste Management Programs. The study is to last six months,
and the final report 1s scheduled to be completed by the end of Pecember.
(5) Waste Oil Generation and the Technology, Economics, and
Environmental Impacts of Re-Ref1n1ng: Recon Systems
In June 1973, EPA let a $40,000 contract to Recon Systems, Inc. and
Response Analysis Corporation for a joint effort to develop additional
Information on waste oil recycl1ng34. The firms have two major objectives:
1) to describe and evaluate waste oil re-ref1n1ng processes and their
environmental impacts and 2) to measure the magnitude of the waste oil
problem by developing a material balance survey program for selected major
waste oil generation areas. Response Analysis Corporation will have a
major role in developing the survey program.
According to the contract's statement of work, the study will Include
four primary tasks:
1. An assessment of current waste oil disposal techniques and
all potential refining and re-refining processes for all types
of waste oils. This 1s to Include Information on feedstocks,
products, processes, environmental Impacts, and economics.
2. A technical assessment of waste oil processes with recommendations
for further work.
3. An environmental assessment of waste discharges from the waste oil
processes examined, taking into account aesthetic damages and local,
state, and federal regulations.
4. A preliminary material balance national survey program for major
generation areas. The survey is to include the types, quantities,
sources, and disposal practices for waste oil generated. Besides
the survey plan, a "best" material balance is to be described.
The Recon study is being supervised by Leo McCarthy of EPA's Edison
Water Quality Laboratory. The study is to be completed by mid-October and
the final report released soon thereafter. It is anticipated that impleme-
tatlon of the national survey developed and tested under this contract may
require further expenditures for contract research.
(6) Federal Policy on Waste Oil: ELI
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The Environmental Law Institute (ELI) of Washington, D.C., began a
ten-month EPA research contract in July 1973 on the legal aspects of incen-t
tiveapproaches to pollution control^. Some part, possibly about half, of
the $60,500 allotted to the entire effort will be focused on the specific
problem of federal policies to control waste oil.
The scope of work requires:
- A comparative analysis of waste oil policies of industrial nations.
- A summary and evaluation of statutes, regulations, pending legis-
lation, and proposals 1n subject areas related to waste oil.
- The identification and evaluation of broad alternative legal approaches
to waste oil problems.
- A detailed description of the more feasible approaches, including
the groundwork for statutory language.
Dr. Fred H. Able will be the EPA project officer. The Final Report is
due in July 1974, but 1t is hoped that most of the findings will be available
for inclusion in EPA's waste oil report to Congress in April 1974.
6.4 In-House Research and Past Studies
Part of the waste oil study mandated by Congress is to deal with the
long-term, chronic biological effects of waste oil, and EPA has initiated
in-house experimental research to provide the needed data. Testing of the
effects of waste oil on aquatic life will be carried out at two locations.
Research on freshwater life will take place at EPA's Natural Water Quality
Laboratory in Duluth, Minnesota, and research on salt water life at EPA's
National Marine Water Quality Laboratory in Narragansett, Rhode Island.
The research projects will measure the impacts of waste oil, crude oil,
and refined oils. Although the entire project is to last one year, from
July 1973 to June 1974, the first half of the study will be devoted entirely
to waste oil. This 1s so that the results will be ready by January 1974
and available for inclusion 1n the EPA waste oil report to Congress.
Each of the National Water Quality Labs will devote about $40,000 to
biological waste oil research 1n fiscal 1974. \
Steven F. Hedtke, a research aquatic biologist at the Duluth Lab, will
supervise freshwater tests, while Stanley Heggre at the Narragansett Lab
will supervise marine tests. Both report to Dr. David Nyquist of EPA's
Office of Environmental Sciences 1n Washington, D'.C.
28
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Several past EPA studies have dealt with ground disposal of waste oil.
In October of 1972 the EPA's Edison Research Laboratory investigated the
runoff from dirt roads treated with waste oil to suppress dust". The study
indicated that some 70 percent of the oil leaves the roadway on dust parti-
cles or in water runoff. Almost all the remaining 30 percent volatilizes
and is biodeqraded.
In addition, in December 1972 EPA completed a study of disposal of oily
waste by soil cultivation^'. The experiment in Deer Park, Texas, used soil
microorganisms in an effort to determine how fast waste oil would decompose
in landfill areas. At prevailing local soil and climate conditions, it was
found that about one half pound of oil per cubic foot of soil would decompose
each month without fertilizers.
In 1967, the Federal Water Pollution Control Administration funded
a waste oil project, a demonstration of the caustic-base re-refining process38.
The objective was to demonstrate a process for eliminating water pollution
by waste oil re-refining plants. The project showed that the operating
problems would not be much different than with the more typical atid-clay
treatments and that sludge disposal would still be a major difficulty.
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7.0 FEDERAL TRADE COMMISSION
The Federal Trade Commission (FTC) will soon consider softening the
burdensome labeling requirements it has placed on waste oil products. FTC
staff are preparing recommendations to be presented to the full Commission
by December 1973 on the use of the word "recycled" in product labels.
7.1 Background
In 1958, the FTC ruled that the sale of reclaimed or re-refined
lubricating oil without an indication of previous use was misleading and
deceptive. It ordered that "any lubricating oil...composed in whole or
in part of oil which has been reclaimed or in any manner processed from
previously used oil be labeled with a clear and conspicuous statement to
that effect on the container."3"
In an attempt to comply with the FTC order, the Double Eagle Refining
Co., one of the respondents^, submitted label samples which included state-
ments on the side of the container that the oil had been "scientifically
RE-REFINED from previously used oil". The FTC approved this method of
compliance in I960, but in 1961 rescinded its approval because the state-
ment of prior use was on the side rather than on the front of the container.
The hearing examiner supported the re-refiner's position, but in 1964 the
Commission overruled his decision and ordered that the statement be "on the
front panels of the container".4*
In addition to requiring front labeling, the FTC in the same year also
promulgated a Trade Regulation Rule requiring a statement of "previous use"
and also restricting the use of the word "re-refined". It prohibited the
use of the term "re-refined" to describe "previously used lube oil unless
the physical and chemical contaminants acquired through previous use had been
removed by the refining process".42
Although there are no satisfactory estimates of the impact of the FTC
orders, some observers feel that it has been a major cause of the progres-
sive collapse of the re-refining industry and, in turn, of increasing en-
vironmental oil pollution.43 others have argued that the entire area of
consumer response to terms like "recycled" is unknown.44
7.2 Interest
The FTC's interest in reconsidering its waste oil labeling rules
31 Preceding page blank
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steins largely from the impact of the National Environmental Policy Act of
1969 (NEPA). NEPA requires all federal agencies to report, and take into
account, the environmental impacts of major actions. NEPA of course only
applies to future major trade decisions with significant environmental
consequences. In an effort to rationalize and systematize the FTC's new
environmental responsibilities, the staff has initiated an effort to come
up with general recommendations for changes in policy, particularly in the
area of recycling of waste materials. The staff has decided, moreover, that
the development of such policies calls for a reconsideration of past label-
ing rulings for previously used lube oil — although not actually required
by NEPA.
NEPA will expand the FTC's waste oil concerns in at least two direc-
tions: product quality and environmental impact. In its earlier labeling
decisions, the FTC argued that product quality and performance was not the
issue in its charges of deceptive trade.^5 The Commission felt that man-
datory labeling could be completely justified on the basis that oonsumers
are known to prefer new oil and tend to mistake reprocessed oil for new
oil unless it is clearly labeled as reprocessed.^ NEPA, however, requires
the FTC to consider all alternatives including product quality. The Commis-
sion must consider whether the environmental damage from disposal alternatives
to reuse, e.g. dumping, may be too high a price to pay for its labeling rules.
Although the rule deals with traditional deception and takes cognizance of
apparent consumer preferences, it may also lead misinformed consumers to
reject high quality recycled oil. With potential markets constricted in this
way, re-refining is likely to be replaced by other more damaging waste oil
disposal practices. The actual quality of recycled oil, rather than its or-
igin, this becomes a crucial factor in a NEPA-required balance of costs and
benefits.
As for environmental impact, NEPA will require the FTC to predict both
the abatement or creation of pollution and the consumption or conservation
of resources resulting from rulings on recycled products. Both these tasks
and the assessment of product quality require technical expertise that is in
short supply at the FTC. The Commission staff will of necessity rely heavi-
ly on technical assistance from other federal agencies.
NEPA has affected the FTC's interest in waste oil in yet another way
through its creation of the Council on Environmental Quality (CFQ). FTC
participated during early 1970 in CEQ's task force on waste oil disposal.4'
Although the CEQ effort did not result in any major federal policy change,
the FTC agreed at the time to reconsider its recycled oil labeling require-
ments should it appear that the oil could equal the quality of acceptable
virgin oil.48 However, a check by the FTC of several federal aqencies, in-
cluding the Bureau of Mines, reinforced its past finding that reprocessed
oil was inferior.
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7.3 Present Program
FTC staff members are now preparing recommendations for changes in .
labeling of products made from used materials, including reprocessed oil.
In December 1972, the staff prepared a draft of a proposed guide for
the use of the word "recycled" in product labels. The guide would attempt
to restrict use of this designation to products which perform at least as
well as comparable products made from virgin material. Issues still to be
resolved include: the conditions under which labeling should be imposed,
the location of labels showing past use, the information to be provided on
the label, the percentage of used material needed to qualify a product as
"recycled", and the use of similar words such as "recyclable", "reusable",
and "refillable".
Since the FTC draft was prepared, the Commission has received comments
from interested agencies, including EPA, Bureau of Mines, CEQ, and 6SA,
and also from consumer groups, Congressional committees, and marketing
experts. FTC's staff plans to have a final draft and a report before the
full Commission between September and December 1973. Nevertheless, even
with immediate favorable action it is unlikely that the new labeling rule
would be in effect before mid-1974.
Several problems threaten to slow action on the prooosed changes.
Considerable time and manpower will be required to conform with NF.PA report-
ing requirements. Only one FTC employee has been assigned to the project
and he has not been able to devote full time to this effort. Further", since
the quality of recycled oil is still in dispute, the FTC may decide against
permitting the use of the word "recycled" on the label. Finally, the release
of EPA's definitive report to Congress on waste oil due in April 1974, may
cause the FTC to delay the decision on labeling requirements.
7.4 Organization and Key Personnel
Recommendations for changes in FTC policy on recycled materials
are being carried out in the Bureau of Consumer Protection under the
direction of William Dixon, Assistant Director of Rules and Guides.
Raymond Rhine is the attorney in charge of the project to consider
"recycling" labels.
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8.0 GENERAL SERVICES ADMINISTRATION
The General Services Administration (GSA) has recently taken .a re-
newed interest in waste lube oil as a potentially saleable or recyclable
commodity. It has completed a survey of waste oil generated by GSA
vehicles and is expecting to eventually extend the survey to the entire
Federal Government.
8.1 Background
GSA operates about 65,000 motor vehicles, the largest fleet after
the Postal Service and the Defense Department. In contrast to these agencies,
however, most of the servicing of GSA vehicles is done by service stations
under government contract, and it is doubtful that the waste lube oils gen-
erated by them can be claimed by the U. S. Government. Of the 98 motor pools
run by GSA, the great majority use such contracts. Moreover, many auto-
mobiles are leased by GSA and the drainings from such vehicles are even
less likely to be legitimately claimed as Federal property.
Although GSA currently purchases no products made from used lube oil,
the agency is active in a number of programs to procure supplies made
from other used materials. The Federal Supply Service has set standards
for the amount of post consumer paper waste included in 77 paper products
it procures. Government toilet paper, for example, contains 50 percent
recycled paper. GSA also reclaims platinum and silver from sparkplugs used
in aircraft and heavy military vehicles. The silver and platinum is
supplied back to sparkplug manufacturers as raw material.
8.2 Interest
Although GSA is the government's central purchaser for most goods,
the agency has delegated the responsibility for procurement of lube oils
to the Defense Supply Agency (DSA). Its interest in waste oil is there-
fore not in possible purchases of waste oil products such as re-refined
lube oils. Rather, it would like to find ways to turn disposal of waste oil
from a debit to a credit item. Recent fuel shortages have made GSA partic-
ularly interested in the possibility of using waste oil as a blended fuel
oil.
GSA would be willing to subsidize improved waste oil reclamation
through a special government purchase program for waste oil products but
35 Preceding page blank
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it is restricted by its legal mandate to purchase products of a given quality
at least cost. The agency would need special Congressional authorization
and funds to support such a subsidy. This approach has a precedent in the
new federal statute on noise pollution.50 This law allows GSA to pay 125%
of normal retail price cost for products that have received a low noise
certification from EPA.
8.3 Projects
In June 1973, GSA completed a small survey of the generation of waste
oil from those of its vehicles serviced at the agency's own facilities. No
special funds were committed to the project. Questionnaires were sent
out to GSA motor pools by the Federal Supply Service's Office of Motor
Equipment, Transportation, and Public Utilities. Data from the survey is
still being interpreted and reviewed.
Information collected in the survey included:
- Number of vehicles in each fleet
- Number of vehicles serviced in-house
- Quantity of waste oil generated in-house over six months
- Method of waste oil storage
- Method of disposal
- Estimated cost of disposal
- Income from waste oil sales
8.4 Organization and Key Personnel
Andrew Kauders, Executive Director for Environmental Affairs, has
the overall responsibility for GSA environmental programs. His office has
agency-wide responsibility to monitor environmental programs, ensure
compliance with environmental legislation, and initiate new environmental
projects. William S. Eckert, Director of the Federal Supply Service's
Property Rehabilitation Division, designed the waste oil survey and has
overall responsibility for the rehabilitation, reclamation and recycling
of Federally-owned property. Mr. Eckert is assisted in the waste oil
survey by Mr. Michael Dee, Assistant Director.
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9.0 DEPARTMENT OF THE INTERIOR
The Interior Department's Bureau of Mines 1s currently carrying out
the first steps of a major technical study of processes to re-refine waste
oil. It is hoping to get increased funding 1n the next several years so
that it can proceed with full-scale engine testing. A report on progress
to date is expected in the next few months.
9.1 Background and Interest
The Bureau of Mines' Interest 1n the waste oil problem stems from Its
long experience with petroleum refining problems and from the opportuni-
ties offered by the Bureau's large testing laboratories.
Consistent with these interests, the Bureau believes that two major
obstacles must be overcome before used oil can be successfully re-refined in-
to lube oil. First, the technology of the re-refiner must be upgraded to
produce a lube oil that meets requirements of modern automobile engines and
military specifications. Second, the re-refiner must ge given a greater
profit incentive to process the large amounts of used oil presently being
dumped or disposed of in damaging ways. In this connection, the Bureau has
come out in support of the legislation offered by Congressman Vantk to en-
courage oil recycling.^l
Although some observers have questioned whether re-refining technology
is at the heart of the waste oil problem, Bureau of Mines studies have shown
that present re-refining processes produce oil that has lost much of its
lubricity and oxidation stability. Therefore, there does appear to be room
for improvement in this area.
9.2 Projects
The Bureau of Mines is proceeding with the initial laboratory work
described in its April 1972 proposal, "An Issue Paper About...Waste Oil
Recycling." The proposal calls for an extensive $1:5 million five-year
research effort to develop and demonstrate methods of waste oil re-refining.
The project is to use the technical facilities at the Bureau's Bartlesville
Energy Research Center in Oklahoma. The Bureau received $125,000 in
fiscal 1973 for laboratory work, but this was only a little more than half
the amount requested in the Bureau's proposal for the first year of opera-
tions. 52 Large scale pilot testing of processes and engine testing of pro-
37
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ducts were not granted funds. The Bureau has asked for $350,000 for fiscal
1974 but expects to receive about the same amount as In fiscal 1973.
Even before the Bureau of Mines began this specific project, 1t had
looked into related Issues. It had collected samples of waste oil and
examined the contaminants, particularly wear metals. Some samples of re-
cycled oils from existing re-refiners were also collected and analyzed using
bench scale tests.
The Bureau's present program objective 1s the development of an effi-
cient method for reclaiming waste lubricating oils. The objective is to be
met through performance of the following tasks:
- Bench-Scale Quality Evaluation Tests. Improvements will be sought
in some of the tests and in methods for categorizing the quality of lube
oils.
- Bench-Scale Refining Operations. Three re-refining techniques are
to be evaluated 1n the laboratory:acTd extraction, caustic-based extraction,
and solvent extraction.
- Pilot-Scale Operations. The most effective processing technique will
be demonstrated 1n a pilot plant.
- Engine Testing. The re-refined lube oil products will be put through
the full sequence of engine tests needed to demonstrate quality.
The Bureau has been able to proceed with the proposed evaluation of add
and caustic-based extraction, but has not been able to test the propane sol-
vent method because Information from Industrial users has been Inadequate.53
The Bartlesville Center has evaluated commercially available processes and
has used crankcase oil from Its own automobile fleet as a feedstock.
The Bureau of Mines Indicates that 1t has found a particular solvent
extraction process that has good prospects of meeting the need for improved
technology. It 1s presently engaged in testing the quality of products made
with the process, and has been reluctant to divulge technical data before
tests are completed.
9.3 Organization and Key Personnel
Mr. Richard M. Goodlng, a petroleum chemist in the Bureau's Washington
area office and C. C. Ward, Research Supervisor at the Bartlesvllle facility,
are the Bureau's staff chiefly responsible for waste oil studies.
38
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10.0 POSTAL SERVICE
The Postal Service is the Federal Government's greatest non-military
generator of used automotive lube oils. It has long-standing general guide-
lines for non-pollution disposal of waste oil8 but has no plans for further
study or policy changes in this area.
10.1 Background
The Postal Service's 100,000 vehicles produce an estimated 650,000
gallons of used oil each year. Most of the oil is collected at the Service's
311 Vehicle Maintenance Facilities (VMF's). More than two-thirds of these
facilities service between 300 and 1400 vehicles and store used oil 1n under-
ground tanks until it can be sold or given away. Smaller VMp's store oil 1n
55 gallon drums until it is picked up, and very small facilities use
commercial service stations.
Postal Service Methods Handbook M2, "Vehicle Maintenance Facilities",
sets guidelines for the disposal of used oil. Although the guidelines were
once mandatory, decentralization within the Service has given local managers
the final decision.54 The guidelines simply provide that VMF's enter Into
local annual contracts with companies who will pick up the waste oil. The
Postal Service believes that since most of the scavengers appear not to be
re-refiners, the oil collected is eventually used for fuel.55
10.2 Interests
The Postal Service would like to get rid of its waste oil at the least
possible cost consistent with protection of the environment. Although most
VMF's at one time were able .to sell waste oil, almost all now must arrange
to give it away and sometimes they must pay to have it collected. The Postal
Service is certain that none of its facilities arbitrarily dump waste oil,
but beyond this there appears to be little hard data on the generation,
distribution, or ultimate disposition of used vehicle oils. In part, this
is a reflection of thorough decentralization in the Postal Service.
10.3 Projects
Currently there are no Postal Service projects on waste oil and none
are being planned. However, the Central Regional Office (Chicago) recently
39
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considered the offer of a local re-refiner to reprocess vehicle oil for re-
use by delivery vehicles. Although the price offered would be cheaper than
virgin lube oils, the Postal Service 1s worried about the quality of the oil.
It does not question the technical feasibility of re-refining but 1s doubtful
that the Service could adequately police the Integrity of the re-refiners.
The stakes in terms of possible engine damage are high, and the Postal Service
sees it as unlikely that it could colltct damages if the re-refined oil should
cause problems.
The Postal Service, like GSA, buys gasoline and oil through Defense
Supply Agency (DSA) contracts. These Invariably specify lube oil made only
from virgin crude. However, the Postal Service 1s not prevented by these
contracts from participation In "closed-loop" systems like the one offered
by the Chicago re-refiner.
o
10.4 Organization and Key Personnel
Mr. Carl Myers, the Director of the Office of Fleet Maintenance,
Bureau of Customer Services, 1s responsible for setting waste oil guidelines
in the Postal Service. Merton Culver, Fleet Maintenance Management Officer,
has major operational responsibility.
40
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11.0 DEPARTMENT OF THE TREASURY
The Treasury Department Interprets statutes that Impose excise taxes
on lube oil. Although Treasury has expressed disapproval of the tax loop-
holes for Industrial lube oils which Congress enacted 1n 1965, 1t has no plans
to request statutory changes. Nor does the department have any plans to
reconsider Its 1965 tax decisions that were unfavorable to the re-refining
Industry.
11.1 Background
Before 1965, the Treasury Department taxed lubricating oil fiiade
from crude petroleum at a rate of 6$ per gallon. Re-refined or reclaimed
oil was exempt on the grounds that this excise tax had already been paid when
the oil was new. Typically, however, re-feffners would not market 100%
recycled oil but would blend it 1n some ratio with virgin oil 1n order to
meet certain viscosity requirements. Since the excise tax had to be paid
on the new oil used for such blending, a gallon of the re-refiners' product
was subject to taxation. The amount of the tax was proportional to the vol-
ume of virgin oil used in blending. Nevertheless, the blended oil itself
was not subject to tax.5° The 6
-------
In sum, waste oil re-refiners kept their tax advantage on automobile
lube oils but lost 1t on all other lube oils. Purchasers have to pay the
excise tax Initially 1f they buy virgin lube oil, but can get the tax refund-
ed by the federal government at the end of the year by showing that the oil
was not used 1n highway vehicles. This gives virgin lube oil used Industrial-
ly the same tax exempt status previously enjoyed only by re-refined oil.59
Several questions about the tax liability Of blended oils remained
after the Excise Tax Reduction Act was passed. Since most of the re-refiners'
lube products are blended, these questions were particularly Important to
the Industry. Nevertheless* Treasury Department rulings have all been against
the Interests of the re-refiners or re-refining.
The Issues were:
1) Are re-refiners exempt from paying the excise tax, I.e. do they de-
serve a refund as an off-highway user when they buy virgin oil to blend with
their re-refined oil?
2) Are the off-highway purchasers of blended re-refined lube oil due a
Treasury payment for that part of the oil bought which 1s virgin lube oil and
carries the excise tax?
3) Is lube oil manufactured from a mixture of virgin crude oil and used
oil subject to the 64 excise tax even though the law exempts previously used
oil from the tax?
The Treasury Department decided that re-refiners do not qualify as an
off-highway user and therefore are Ineligible for a tax rebate on virgin oil
they buy for blending.60 Re-refiners who blend, for example, 1n a 50-50
ratio must pass on the 6$ tax to their customers. I.e., at 34 a gallon. This
would not be a serious problem 1f customers could 1n turn collect from Treas-
ury either a 64 a gallon payment or at least a 3< a gallon payment to cover
the excise tax carried by the new oil mixed 1n with the re-refined oil. Un-
fortunately for the re-refiners, Treasury also ruled that industrial buyers
of blended recycled lube oil could not collect a refund since the product
they purchased was not taxable.** THe" effect was that blended re-refined
oil not only has lost Us 34 a gallon tax advantage, it is now 34 more ex-
pensive relative to virgin ollbecause all opportunities to get a Treasury
excise tax refund are lost 1n the blending operation. The non-highway user
pays no excise tax for virgin oil, but continues to pay 34 a gallon tax on
blended oil.
Finally, Treasury ruled that the Introduction of used oil into the pro-
cess of refining virgin crude oil did not thereby make the product "a mere
blend or mixture" and exempt 1t from the excise tax as a blended oil using
re-refined oils.62
42
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11.2 Interest
The Treasury Department would be happy to repeal the cumbersome lube
oil tax refund provision. However, this preference comes out of a desire
for simplicity 1n the tax code rather than concern for the re-ref1n1ng In-
dustry or the environment. Treasury feels that the re-reflnlng Industry 1s
basically a dying Industry and that special tax concessions will be In-
effective.
The Treasury Department suggested to the Association of Petroleum Re-
Refiners (APR) that their customers might be allowed a refund 1f the re-
refiners would report the exact percentage of virgin oil 1n their blended
lube oil. Treasury found APR Industries unwilling to disclose the amount
of virgin taxed oil used and nothing came of Us suggestion.
11.3 Projects
No activity on lube oil taxation 1s planned or recommended fey Treasury.
11.4 Key Personnel
John Copeland in Treasury's Tax Policy Division is responsible for over-
seeing excise taxes on lube oils.
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12.0 DEPARTMENT OF TRANSPORTATION
The Department of Transportation (DOT) cooperated with the Department
of Interior to publish 1n February 1968, "011 Pollution", a special study
requested by President Johnson. The report covered the general topic of
water pollution by oil and other hazardous substances but emphasized major
Industrial sources and spills. It did, however, briefly mention the problem
of waste oils from service stations, the first time auto lube wastes were
recognized by the Federal Government as a significant source of pollution.
DOT currently has an active Coast Guard program to prevent and control
oil spills on navigable waters. However, the agency 1s not doing anything
1n the area of waste oil from motor vehicles.
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13.0 DEPARTMENT OF AGRICULTURE
The U.S. Department of Agriculture (USDA) has no waste oil research
projects at present, nor are any planned. However, the department operates
and maintains the federal government's fourth largest vehicle fleet, 30,000
units, ranging from cars to large trucks.
The Forest Service manages USDA's largest fleet, some 13,600 vehicles,
and operates 500 pieces of construction equipment. The Soil Conservation
Service operates about 11,000 vehicles, the Animal/Plant Health Inspection
Service, 2,400, and the Agriculture Research Service, 2,700. Pick-up trucks
are the backbone of all USDA fleets. They account for almost 26,000 of the
30,000 total.
Nearly all the maintenance of USDA vehicles 1s carried out by commercial
service facilities. Only the Forest Service services any of its own vehicles
and even the Forest Service uses commercial servicing for three .quarters of
its vehicles. Fleet managers report that when the Forest Service changes
oil in Its own vehicles during repair or yearly preventative maintenance,
1t uses the same commercially available scavenger pick-up services used by
service stations. Only when construction equipment is used in remote areas
1s 1t likely that waste oil will be dumped on the ground. Although the crank-
cases of such vehicles are relatively large, few vehicles are ever serviced
at any one location at the same time, hence 1t is expected that the small
volumes of waste oil dumped on the ground can be naturally degraded without
environmental damage.
There are currently no department-wide guidelines on waste oil disposal
procedures except a general requirement that vehicles be serviced safely
1n accordance with manufacturers' specifications.
K.H. Boyer, Assistant Director for Telecommunication, Transportation,
and Physical Security (Office of Plant and Operations), has responsibility
for department policy on maintenance and management of USDA vehicles. Oliver
Broadway has chief responsibility for vehicle maintenance within the Forest
Service.
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14.0 NATIONAL SCIENCE FOUNDATION
The National Science Foundation (NSF) has no current research 1n waste
lube oil disposal and has no plans to allocate funds to such research. How-
ever, NSF 1s carrying on studies 1n related areas and has Interests and an
organizational framework which could easily encompass waste oil research.
NSF 1s funding studies 1n the field of waste management strategies,
an activity carried on in NSF's Division of Environmental Systems and
Resources. This 1s one of the operating divisions of the Applied Research
Directorate. The Applied Research Directorate 1n turn 1s the unit set up
to administer the RANN program (Research Applied to National Needs), a
major NSF effort to support practical research with a significant rear-
term benefit to the nation.
Edward H. Bryan is a program manager for Regional Environmental Systems
within the Division of Environmental Systems and Resources. Waste management
strategies are his particular concern.
49
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ACKNOWLEDGMENT
Teknekron, Inc. and The Institute of Public Adminis-
tration wishes to acknowledge the Resource Recovery
Division, Office of Solid Waste Management Programs,
U.S. Environmental Protection Agency, for support of
this study. In particular we are grateful to Dr.
John H. Skinner, Acting Deputy Director, Resource
Recovery Division and to the Project Officers, Messrs.
Thomas D. Clark and Laurence B. McEwen for their
guidance and assistance in the performance of this
research.
si Preceding page blank
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CITATIONS
1. Under the National Environmental Policy Act of 1969, signed January 1, 1970.
2. See p. 14.
3. For tax laws on waste oil re-ref1n1nq, see Section 2.10, "Treasury Depart-
ment" .
4. "Federal Water Pollution Control Act Amendments of 1972", PL 92-500,33
USC 1151, 86 Stat. 816, October 18, 1972. See Appendix A for full
language.
5. "Waste 011 Study, Preliminary Report to Congress", April, 1973.
6. Sen. Boggs chaired an entire day of waste oil hearings on June 9, 1967,
before the Subcommittee on A1r and Water Pollution of the Senate Public
Works Committee (p.261 of Water Pollution - 1967, Part I)
7. HR 5902, Introduced March 20, 1973; referred to Ways and Means Committee.
Remarks, March 14, 1973 (Congressional Record E1543). This 1s an Iden-
tical bill to the one Vanlk Introduced June 14, 1972; remarks, June 14,
1972 (Congressional Record E6208). Vanlk had Introduced earlier, less
sophisticated legislation to reform lube oil excise taxes on December 2,
1971, (HR 12015) and on January 18. 1972 (HR 12433).
8. See Appendix B for full language.
9. S 409, Introduced Jan. 16, 1973, Identical to a bill Thurmond Introduced
March 21, 1972. Remarks, March 21, 1972 (Congressional Record S4314).
10. HR 4421, introduced Feb. 20, 1973. This bill and the Thurmond bill are
Identical to the bill Vanlk first Introduced 1n January 1972.
11. The current Vanik bill, in contrast, would abolish the excise tax exemp-
tion on off-highway virgin lube oil, rather than extend 1t to purchases
by re-refiners.
•
12. S 3890, introduced July 26, 1968 by Sen. Boqgs, co-sponsored by Sens.
Muskie and Randolf, referred to the Commerce Committee.
13. LC-990, superseding LC-360.
14. See footnote #4.
53 Preceding page blank
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15. See FTC, p. 33.
16. About 2 percent of all lube and industrial oils and qreases sold annually
in the U.S. are procured by the federal government. Most of these pro-
ducts are centrally purchased for all federal agencies by the Defense
Supply Aqency through its Defense Fuel Supply Center (DFSC). During fis-
cal 1971, DFSC procured 23,900,000 gallons of motor oils.
17, "Waste Oil Recycling Study", DSA, September 1972, p. 1. MIL-L-46152
(engine oil) requires virgin oil regardless of the performance of
competing re-refined oil.
18. DSA, Cameron Station, Alexandria, VA. 22314, contact: Jan Reitman, Field
Support Division. ;
19. San Diego, Norfolk, Pearl Harbor, Puget Sound, Oakland, Long leach, Guam,
Jacksonville and Charleston. Facilities in these areas account for about
90% of the Navy fuel handled.
20. The Navy originally intended to look for "new products" to use oily wastes
as raw material. After contacting major oil companies and universities
with strong petroleum Interests, the idea was dismissed as a waste of time.
21, "POL Disposal Techniques" , U.S. Air Force Contract No. F29601-73-C-0047,
with Esso Research and Engineering, Linden, New Jersey, January 23, 1973.
22. "Reuse of Waste POL's", U.S. Air Force Contract No. F29601-73-C-0101,
with Esso Research and Engineering Company, Linden, New Jersey, May 1, 1973.
23. For explanation of EPA's NORCO project, see Section 6.0, p. 23.
24. See note #4, p. 53 and Appendix A.
25. National Oil Recovery Corporation, March 1971, Project #15080 DBO, EPA
Water Quality Office.
26. "Recycling Waste Oils Into Direct Fuels and Other Petroleum Products",
EPA Contract No. 68-01-0177, March 7, 1972.
27. American Petroleum Institute, "Waste 011 Roundup....No. 1", p.5.
28. "Oil Recovery Program", December 7, 1971.
29. Wilfred H. Shield, Jr., Chief, Solid Waste Services*, Maryland Environmental
Service, and Walter A. Miles, Head, Monitoring and Surveillance Section,
Division of Solid Waste Management, Maryland Department of Mental Hygiene.
April 1971.
30. "Study of Waste Auto Lubricants as Incinerator Fuel", EPA Contract No.
68-01-0186, with GCA Corporation, Bedford, Massachusetts, April 19, 1972.
54
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31. "A Study of the Economic, Technical, and Environmental Factors Affecting
Reuse of Waste 011 as a Blended Fuel 011", EPA Contract No. 68-01-1859,
May 17, 1973.
32. "Study of Waste Automotive Lubricating 011 as an Auxiliary Fuel to Improve
the Municipal Incinerator Combustion Process", by 6CA Corporation, Bedford,
Massachusetts, February 1973.
33. "Technical and Economic Study of Waste 011 Recovery", EPA contract
No. 68-01-1806, with Teknekron, Inc., Berkeley, California, March 26,
1973.
34. "Develop Information on Waste Oil Recycling", EPA Contract No. 68-01-1870,
with Recon Systems, Inc., Princeton, New Jersey, June 18, 1973.
35. "The Legal Aspects of Incentive Approaches to Pollution Control", EPA
Contract No. 68-01-2203, Washington, D.C., June 28, 1973.
36. Freestone, F.J., "Runoff of Oils from Rural Roads Treated to Suppress
Dust", EPA Report 0EPA-R2-72-054, October 1972.
37. "Oily Waste Disposal by Soil Cultivation Process", EPA-R2-72-110*
December 1972.
38. "Final Progress Report on Water Pollution Control Demonstration Grant
No. WPD-174-01-67" by Villanova University.
39. 54 FTC 1026-1034, Sayler Refining Co., Inc. et al., and 54 FTC 1035-1042,
Frank A. Kerran et al., doing business as Double Eagle Refining Co.,
February 14, 1958.
40. The FTC has ruled on 16 lube oil labeling cases, of which 6 have ended
in appelate court decisions, Including 54 FTC 1035-1042.
41. 66 FTC 1039-1068, Double Eagle Lubricants, Inc., et al., October 22,
1964. The opinion does not require a statement of "previous use" rather
than "re-refined" as some reports of FTC lube oil actions have asserted.
(See "Waste Oil Practice, State of the Art", EQSI.) The ruling does,
. however, expand on the 1958 order by prohibiting re-refiners from repre-
senting that their lube oil "composed 1n whole or 1n part of oil that has
been manufactured, reprocessed, or re-refined from oil that has been
previously used for lubricating purposes, has been manufactured from oil
that has not been previously used". Since, if the lube oil were composed
only in part of used oil, it would be manufactured from oil that had not
been previously used, the ruling appears to prevent re-refineHes from
making truthful statements about virgin stock used in these.products,
e.g. in blending. Although this issue has never been brought before the
Commission, FTC staff have told industry representatives that they would
55
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support requests to Indicate blending on product labels.
42. Deceptive Advertising and Labellnq of Previously Used Lubricating 011,
16 CFR 406.5, 29 F.R. 11650o August 14, 1964. The term "re-refined"
is not entirely prohibited under this regulation. However, the Commission
restricted its use because 1t found that the term could be misleading.
To some consumers 1t might Imply a virgin oil which had been refined more
than once. Even when put on notice that the oil had been previously used,
many consumers would be led to believe that the oil had been restored to its
original condition by a complete refining process.
43. "The labeling requirement knocked the bottom out of the re-refined oil
market...because the label suggested low quality, consumers assumed it
to be an inferior product, the demand for used oil consequently dropped
sharply; the re-refiners and reprocessors had tb lower their manufactur-
ing costs so they could still make a profit." Wilfred H. Shields, Walter
A. Miles, "Used 011s: A Waste or a Resource", April 1971, p. 9.
44. Edward F. Morrison, Staff Assistant to Congressman Charles A. Vanlk
(D-Oh1o).
45. "The complaint does not question the quality of respondent's oil",
66 FTC 1039.
46. 16 CFR 406.2(a). This view was upheld by the U.S. Court of Appeals,
10th Circuit, in approving the FTC's cease and desist order, frank A.
Kerran v. Federal Trade Commission. 265 F2d 246 (1959).
47. See p. 32.
48. Although the FTC argued that quality was not an issue in its original
used oil labeling orders, during Its considerations it was persuaded by
technical evidence that much of the lube oil made from used oil was
indeed inferior.
49. Under Section 7 of the Vanlk oil recycling bm, HR 5902, all recycled
oils, defined as oils identical or superior to new oil Intended for the
same purpose, would carry the label "Recycled Oil", and EPA would set
regulations requiring container labels that advise the purchaser to re-
cycle the oil or dispose of 1t 1n an otherwise proper manner. See
Appendix B.
50. Noise Control Act of 1972, enacted October 27, 1972.
51. See p. 37.
52. $228,000 was requested for the first fiscal year.
53. Specifically, information from the Institute Francais du Petrole (IFP).
4
56
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54. The guidelines will soon be republlshed to reflect their non-mandatory
nature. The title and number are not yet determined.
55. A preliminary investigation of this supposition indicates that waste oil
may frequently be used for space heating fuel in small industries, or, 1n
the warmer climates of the nation, may be sold for re-refining feedstocks.
56. 26 CFR 48.4091-2 (b)(11-111), "Manufacturers on whom taxes are Imposed
do not include "any person who merely cleans, renovates, or refines used
or waste lubricating oil, or any person who merely blends or mixes one or
more taxable oils with used or waste lubricating oil that has been cleaned,
renovated, or refined." Section 314.40(d)(3) of Treasury Regulation 44.
57. Amendments to the Internal Revenue Code, 1954, PL 89-44, June 21, 1965.
58. By adding a new Section 6424 to the Internal Revenue Code of 1954.
59. Although the tax changes were damaging to re-refiners, it appears that
Congress did not intentionally set out to burden the industry. Instead,
the Administration and Congress were 1n a mood to cut taxes 1n 1965.
President Johnson's bill would have repealed all excise taxes on lube
oils. The House agreed to drop the tax on off-highway use on the grounds
that 1) the Highway Trust Fund was 1n special need of more revenue and 2)
that some tax advantage was needed to keep the re-refining industry
alive. The Senate disagreed with both the President and House and kept
the full lube tax, arguing that 1t was needed by the re-refiners. The
House views prevailed in conference committee with, It 1s reported, very
little or no pressure from competing virgin oil producers or Industrial
users. Senate Report No. 324, p. 26, June 14, 1965 and House Report No.
433, p. 21, May 28, 1965.
60. Rev. Rul. 68-108.
61. Rev. Rul. 68-108. It is customary tax code theory that if a taxable good
1s used in making another taxable good, the initial tax is forgiven. In
this case, however, no tax 1s paid on the second good, i.e. blended re-
refined lube oil, and so the first tax, I.e. on virgin lube oil for blend-
Ing, was not forgiven.
62. Rev. Rul. 57-204. This decision 1s not strictly an anti-re-refiners de-
cision although it may be an ant1-re-ref1n1ng decision. It 1s anticipated
that a decision that allowed an exemption would have spurred the major oil
refiners to Include some used oil 1n their crude oil processing 1n order
to escape the excise tax on lube oil products. This might have resulted
in greater recycling of waste oil - though how much is uncertain since
the volume percentage in the final product from waste oil would have been
minute. It 1s more certain that such an exemption would thereby lose
their tax edge in the highway market 1n addition to losing 1t in the off-
highway industrial market.
57
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63. Stat. 823, PL 92-500, October 18, 1972.
58
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APPENDIX A
SECTION 104(m) OF THE FEDERAL MATER POLLUTION CONTROL ACT AMENDMENTS OF 197263
"(m) (1) The Administrator shall, in an effort to prevent degradation
of the environment from the disposal of waste oil, conduct a study of (A)
the generation of used engine, machine, cooling, and similar waste oil,
including quantities generated, the nature and quality of such oil, present
collecting methods and disposal practices, and alternate uses of such oil;
(B) the long-term, chronic biological effects of the disposal of such waste
oil; and (C) the potential market for such oils, including the economic and
legal factors relating to the sale of products made from such oils, the level
of subsidy, if any, needed to encourage the purchase by public and private
nonprofit agencies of products from such oil, and the practicability of
Federal procurement, on a priority basis, of products made from such oil. In
conducting such study, the Administrator shall consult with affected indus-
tries and other persons.
"(2) The Administrator shall report the preliminary results of such study
to Congress within six months after the date of enactment of the Federal Water
Pollution Control Act Amendments of 1972, and shall submit a final report to
Congress within 18 months after such date of enactment."
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APPENDIX B
NATIONAL OIL RECYCLING ACT
61 Preceding page blank
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93o CONGRESS
IST SESSION
IN THE HOUSE OF REPRESENTATIVES
MARCH 20,1973
Mr. VANIK introduced the following bill; which was referred to the Committee
on Wnys and Means
A BILL
To provide for the recycling of used oil and for other purposes.
1 Be it enacted bfl the. Senate and House of Reprcsenta-
2 twcA of the United Slates of America in Congress assembled,
3 Thnt this Act may he cited ns the "National Oil Recycling
4 Acl".
5 PURPOSES
6 $K(\ '2. Congress finds that hundreds of millions of gal-
7 Ions of nsed oil are hcing wasted each j'car, and are heing
8 disjioscd of in ways which pollute the waters, air, and land
9 of (he United States. For the purposes of—
10 (1) protecting the health and welfare of the people
11 of the United Slates;
63 Preceding page blank
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2
1 (2) restoring, preserving, and enhancing the Ka-
li (ion's environment; and
'.'> (3) conserving oil for the national defense; Con-
4 gress declares that to the greatest extent possible consist-
") cn( with (his Act and other Federal law, used oil shall
<> be recycled.
7 DKPINITION.S
8 SKC. .'». For 1 he purposes of this Act—
9 (1) the term "used oil" means nil oil which has
10 through use been contaminated b)* physical or chemical
11 impurities which have not been removed by subsequent
12 re-refining or other processing;
13 (2) the term "recycled oil" means used oil which
14 has been re-refined or otherwise processed to remove
l-r) the physical and chemical contaminants acquired through
Hi use, which by itself or when blended with new oil or
17 additives is substantially identical or superior to new oil
18 intended for the snme purposes;
19 (3) the tcnn "new oil" means nil oil which has
20 been refined from virgin oil and may or may not contain
21 additives, but has never been used. The term "new
22 oil" does not include "used oil" and "recycled oil" de-
•<
23 fined in subsections 3(1) and 3(2);
24 (4) the term "lubricating oil" means all oil rcgard-
25 less of origin, which-
64
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1 (A) is suitable for use as a lubricant, or
2 (B) hj sold for use as a lubricant;
3 (5) the term "hydraulic oil" means all oil which
4 is used primarily to transmit power or pressure, but
•r> which mny also serve lubricating and other functions;
^ (0) the term "cutting oil" means all oil which is
? used primarily in cut-ting, milling, and machining oper-
^ ations (including forging, drawing, rolling, shearing,
9 punching, and stamping), but which may also serve
W lubricating and other functions;
11 (7) tbe term "fuel oil" means all oil which has
^ been refined, re-refined, or otherwise processed for the
!•'' purpose of being burned to'produce heat;
3 I (8) the term "automotive oil" means all oil, in-
13 eluding lubricating oil and hydraulic oil, which is used
1<> in automobiles, trucks, buses, motorcycles, and all other
17 motor vehicles which travel on roads and highways;
38 . (J)) the lerm ''industrial oil'' means all oil exclusive
11' of virgin oil. fuel oil, oils used for cooking and medicinal
20 purposes, and automobile oil. Industrial oil includes, hut
21 is not limited to, lubricating oil, hydraulic oil. and cut-
2*2 ting oil when such oils are not automotive oils;
2:1 (10) the term "used oil collector" means any per-
24 son who controls a system which functions to retrieve
65
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4
1 or collect used oil for sale or transfer to oil recycling
- facilities,-or for other methods of disposal;
X (11) the term "used oil recycler" means any person
4 who re-refines or otherwise processes used oil to remove
5 its physical and chemical contaminants.
6 TAX PROVISIONS
7 SKC. 4. (a) The Internal Revenue Code of 1954, Sub-.
8 part B—Lubricating Oil, is amended to rend as follows:
9 "SEC. 4091. IMPOSITION OF TAX.
10 "There is hereby imposed on lubricating, hydraulic,
11 and cutting oils (other than recycled oils) which are sold
12 in the United States by the manufacturer or producer a tax
l;' of 6 cents per gallon, to be paid by the manufacturer or
^ producer.
ir> "SEC. 4092. DEFINITIONS.
lfi "(a) CKRTAIX VKXDF.KS CONSIDERED AS MANHFAC-
^ TUKKRS.—For the purposes of this snbpart, a vendee who
^ has purchased lubricating, hydraulic, or cutting oils free of
19 tax under section 4093 shall be considered the manufacturer
20 or producer of such oils.
21 " (b) LUBRICATING OIL.—The term 'lubricating oil'
22 means all oil regardless of origin, which—
"'** " (1) is suitable for use as a lubricant, or
" (2) is sold for use as a lubricant.
(.
2;) " (c) HYDRAULIC OIL.—The term 'hydraulic oil' means
66
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I all oil which is used primarily to transmit power or pressure,
2 hut which may also servo luhricating and other functions.
3 "(d) CUTTING OIL.—The term 'cutting oil' means all
4 oil which is used primarily in cutting, milling, and maehin-
5 ing operations (including forging, drawing, rolling, shear-
6 ing, punching, and stamping), hut which may also serve
7 luhricating and other functions.
8 "(c) RECYCLED OIL.—The term 'recycled oil' means
9 used oil which has hcen re-refined or otherwise processed
10 to remove the physical and chemical contaminants acquired
11 through use, which hy itself or when hlendud with new oil
12 or additives is substantially identical or superior to new oil
13 intended for the same purposes.
14 "SEC. 4093. EXEMPTION OF SALES TO PRODUCERS.
15 "Under regulations prescribed hy the Secretary or his
16 delegate, no tax shall he imposed under this suhpart upon
17 lubricating, hydraulic, or cutting oils sold to a manufao-
18 hirer or producer of such oils for resale hy him."
19 (b) Section 4094 of the Internal Revenue Code of
20 H)f>4 (Suhpart 15—Lubricating Oil, cross reference) is herc-
21 by repealed.
22 (c) Section 6424 of the Internal Revenue Code of
23 H'54 (providing ofT-highway users of lubricating oils with
^
•_>4 a tax refund of 6 cents per gallon) is hereby repealed.
67
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6
1 KtyUKKAL. KNCOUltAOUMKNT OF TJIK USE OF KKCYrLEU Olb
- Sue. f>. All Federal officials shall act within their author?
3 ity to encourage the use of recycled oil. Such action includes*
4 hut is not limited to—
"> (1) procuring recycled automotive and industrial
f> oils for all military and nonmilitary Federal uses, when?
7 ever such recycled oils are available at prices competitive
8 with those of new oil produced for the same purposes;
9 (2) requiring all persons contracting with the Fed*
W eral Government to use recycled oil in performing such
U contracts, whenever recycled oils are available at prices
12 competitive with those of new oil produced for the same.
!•* purposes;
H (3) f educating the Government and private sectors*
15 of the economy as to the merits of recycled oil, and
1(> (he need, for its use in order to reduce the drain on
17 the Nation's oil reserves and minimize the disposal of,
•18 used oil in ways harmful to the environment;
19 (4) - where necessary, assisting and encouraging-
20 the development of performance standards and speci-
21 fications, and systematic and economical testing pro-.
22 cedures to facilitate the comparison of recycled oil with
23 new oil.
24 STATE REGULATION AND KXCOUHAOKMKNT
25 SEC. 6. (a) This Act shall in no way preempt State,
2^ regulation of recycled oil or used oil disposal whenever
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7
1 such regulation provides for stricter control of recycled oil
2 or used oil thnn provided for by Federal law.
3 (b) The States should encourage the use of recycled
4 oil in order to accomplish the purposes of this Act. In order
5 to qualify for Federal grants under section 12 of this Act,
6 States shall adopt lows, regulations, and administrative ma-
7 chincry which shall provide for, but not be limited to—
8 (1) requiring that used oil collectors obtain State
9 permits prior to engaging in used oil collecting activities.
10 Such permits shall require as a minimum information
11 pertaining to methods for collecting, storing, transferring,
12 and disposing of used oil, as well a,s the identity of used
13 oil sources, purchasers, transferees, and disposal sites;
14 (2) requiring that used oil rccyclers obtain State
15 permits prior to engaging in recycling operations. Such
16 operating permits shall require as a minimum information
17 identifying—
18 (A ) the sources and quantities of used oil to be
19 acquired for recycling;
20 (B) the recycling facility's plant size and op-
21 crating capacity;
22 (0) the specific recycling technologies to be
23 utilized;
24 (1)) the quantities and grades of recycled oil to
-•*» be produced; and
69
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8
1 (E) the methods of disposing of the waste
2 byproducts;
3 (3) when recycled oil is available at prices com-
4 petitive with new oil, using recycled oil for all automotive
") and industrial uses of the State government, and requir-
0' ing all parties contracting with the State to use recycled
7 oil in the performance of such contracts;
8 (4) regulating the retail sales of automobile oil not
9 covered by section 8 of this Act so as to encourage the
1U recycling of used oil;
11 • (5) prohibiting the use of used oil as fuel oil or for
12 the oiling of State roads, unless such oil has been pro.c-
13 essed to meet the minimum standards for such uses
14 established by Federal and State pollution control laws;
15 (6) educating the public and private sectors of the
10' State as to the merits of recycled oil, and the need for its
17 use in order to reduce the drain on the nation's oil re-
18 serves and minimize the disposal of used oil in ways
19 harmful to the environment.
20 LABELING OF OIL
21 SEC. 7. (a) All recycled oil shall bear on the front
22 panel of the container in which such oil is packaged for sale
23 the inscription "RECYCLED OIL" clearly and prominently
24 placed. All automotive and industrial oil, both.new and rc-
70
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9
1 cycled, slwll War OH the container in which such oil is sold
2 the inscription "It is in the national interest to recycle this
3 product after use."
4 (b) The Administrator of the Environmental Protection
5 Agency shall promulgate regulations requiring nil containers
G of automotive and industrial oil, both new and recycled, to
7 bear labels relating to tho proper disposal of such oils after
8 use.
9 RETAIL SALES OF AUTOMOTIVE OIL
10 SEC. 8. (a) Automotive oil packaged for sale for self-
11 service or carry away by the consumer shall be sold in reseal-
12 able containers capable of holding used oil without spillage.
13 (b) All persons making resealable container sales shall
14 collect a customer deposit of SO. 10 per resealable container
15 regardless of size. This deposit shall be refunded upon return
16 of the container, either containing used oil or empty.
17 (c) All persons who sell automotive oils shall maintain
18 used oil collection facilities on (heir premises. Such facilities
19 shall—
20 (1) be of suflicient si/e and capacity to handle all
21 customer returns of used oil and used oil containers; and
22 (2) be serviced on a regular basis by used oil col-
23 lectors who dispose of such used oil in a manner not in
24 contravention to this Act.
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10
1 RESTRICTIVE CONTRACTS I'ROKIIUTKD
2 SKC. 9. (a) It sliiill be unlawful for nriy person to enter
3 into any contract or agreement where the intent of such
4 contract or agreement is to discourage the recycling of used
0 oil.
6 (I)) Violations of subsection (a) are subject to a fine
7 of 850,000 for each violation thereof, or imprisonment for
8 a term not to exceed one year, or both.
v.
9 RECORDS
10 SKC. 10. (n) Users of more than 100 gallons of industrial
11 oil per year shall maintain complete records of—
12 (1) the quantities and types of all oils purchased
!•* for industrial use;
14 (2) the quantities and types of all industrial oils
15 consumed during use; and
16 (3) the quantities and types of all industrial oils
1? disposed of after use—
1& (A) by in-house recycling;
19 (B) by delivery to or pickup by used oil col-
2° lectors or used oil recyclers; or
21 (C) by any other method of disposal.
22 (b) Used oil recyclers shall maintain complete records
23 of-
•^ (1) the quantities and types of all used oil ac-
25 quired;
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11
1 (2) the quantities and types of all new oil acquired
2 for use in blending recycled oil;
3 (3) the quantities, types, and sources of sale or
4 other disposal of all recycled oil produced; and
5 (4) the quantities, types, and places of disposal of
6 all waste byproduct generated in the recycling process.
? (c) Used oil collectors shall maintain complete records
8 of-
*
9 (1) the quantities and types of used oil collected;
10 and
11 (2) the quantities and types of used oil-^-
12 (A) delivered to recyclers; and
13 (B) otherwise disposed (including the place
14 of disposal).
15 (d) .Records required to be kept by this section or any
16 other provision of this Act shall be kept in accordance with
17 regulations promulgated by the Secretary of the Treasury,
18 the Secretary of Commerce, and the Administrator of the Kn-
19 vironmental Protection Agency.
20 w HI'OUTS
21 SKC. 11. The Administrator of the Environmental 1'ro-
22 tcction Agency shall make reports to Congress no later than
23 March 31 of each year, such reports containing, but not lim-
24 iled to, the following information—
73
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12
1 (1) the amount of automotive and industrial oil sold
2 throughout the United States each year;
3 (2) the amount of used oil recycled each year;
4 (:•{) the significance of used oil as a contributor to
>f> water pollution and other environmental problems; and
G (4) the problems of the oil recycling industry (in-
7 eluding new technological requirements mid necessity for
8 tax incentives).
9 MANDATORY LICENSING
10 SKC. 12. Whenever the Administrator of the Environ-
11 mental Protection Agency determines—
^ (1) thut-
1:5 (A) in implementing the provisions of this Act,
14 a United States patent right not otherwise available
15 is necessary to enable any person to comply with
16 this Act; and
17 (B) there are no reasonable alternative methods
18 to accomplish this Act's purposes; and
I9 (2) that the inavailability of such patent right may
20 result in a substantial lessening of competition or fl.
21 tendency to create a monopoly in any line of the Nation's
22 commerce, the Administrator, through the Attorney
23 General, may so certify to a district court of the United
24 States, which may order the person owning the patent
25 to license it on such reasonable terms as the court, after
26 hearing, may determine.
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13
Reproduced from
best available copy.
1 1'KNAl/riRK AND KNFOKCEMKNT
2 SKO. 1)J. (a) Violations of section 4 shall he punished
•'* as provided for by the Internal Revenue Code of 1954 (MS
4 amended). Violations of section 9 (Restrictive Contracts
•r> Prohibited) shall he punished as provided for in section 9.
(' Any person violating any provision of this Act which docs
^ not provide for specific penalties or punishment thereunder
^ shall be subject to a civil fine not. to exceed $25,000 for each
"* violation, or ho guilty of a misdemeanor punishable by six
•^ months in a Federal penitentiary for each violation, or both.
J1 (b) It shall be the duly of the United Slates Allonicv
\ f %• •
lwl (leneral and his representatives, United States attorneys, to
ll{ prosecute, violations of this Act: In (he event that the Fed-
eral (lovernment fails to fulfill its duty of enforcement under
this Act, any citizen may bring an action in his or her name
' to enforce this Act without regard to any amount of alleged
' damnjres.
CKANTS AND AI'I'l.'OI'IMATIONS
r>
IS
SKC. 14. (a) There is herebv authorized to lie appro-
j>riated for the fiscal year ending June ol), 1974, and for
each succeeding fiscal year. -s25.OOO.OtlO for grants to the
Slates to assist them in fulfilling the purposes and provisions
of this Act. The Adni'misiralor of the Knvironmenlal Pro-
lection Agency shall make1 allotments to tlie Stales, noi to
%) •*
exceed 10 cents per capita for any Slate based on the
75
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14
1 latest national census, when he has determined that they
2 arc in compliance \viih this Act. The Administrator may
:? prescribe regulations, pursuant to this Act, governing the
4 expenditure of the allotments.
;> (h) There is hereby aulhorixed to he appropriated
(> for the fiscal year ending June 30, 1974, and for each
' succeeding fiscal year through the fiscal year ending June 30,
8 1977, $10,000,000 for the development of new processes
9 and technology to he used in the economical and ecological
10 recycling of used oil. The Administrator of the Environ-
mental Protection Agency may make grants of this money,
1 *)
pursuant to regulations and requirements he shall adopt.
1 'I
to private parties, or use this money within the Environ-
11 mental Protection Agency for the above purpose?.
]f> (c) There is hereby authorized to he appropriated for
1C the fiscal year ending June 30, 1974, and for each succeeding
17 fiscal year, through the fiscal year ending June 30, 1977,
18 $5,000,000 for the development of standards and testing
1'J methods to facilitate the comparison of recycled oil with new
20 oil. The Secretary of Commerce may make grants of this
21 money, pursuant to regulations and requirements he shall
'2'2 adopt, to private parties, or use this money within the De-
2'» partmcnl of Commerce for the above purposes.
2t KKKKCTiVK DATE
-•"' Sue. 1f>. Section J) (llestriclive Contracts Prohibited) of
-(i this Ad isclTcclivc immediately upon this Act becoming law.
76
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Section 4 (Tax Provisions) of this Act becomes effective on the first day
of the calendar quarter following the day this Act becomes law. All other
provisions of this Act become effective ninety days after this Act becomes
law.
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APPENDIX C
ANNOTATED BIBLIOGRAPHY OF PUBLICATIONS
CONCERNING WASTE OIL DISPOSAL
79 Preceding page blank
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American Petroleum Institute, Engine Service Classifications and Guide
to Crankcase Oil Selection, API Publication #1509, Washington, D.C.,
January 1971.
This pamphlet discusses why the engine service classification was
developed and the basis of the classification system. API gives a
definition for each classification category.
American Petroleum Institute, Farm Equipment Lubrication-Questions/
Answers. API Publication #1507, Washington, D.C.
American Petroleum Institute, Final Report of the Task Force On Used
Oil Disposal. API Publication No. 4036, Washington, D.C., May 1970.
The Task Force recommended that the burning of used auto lubricating
oils, blended with residual fuel oil, be encouraged as an effective
way to deal with disposal problems. It also recommended 1) that ser-
vice stations continue to contract with scavengers for waste oil
pick-up (or that major suppliers attempt to enter annual contracts
for regional pick-up), 2) that contracts between oil companies
and service stations require non-polluting disposal, and 3) that the
API should provide information and support for state legislation which
assumes safe, cheap, non-polluting, and non-disruptive disposal.
API's Task Force conducted a survey of service stations and examined
five burning tests by major oil producers. Although burner fouling
occurred in the burning tests, API recommended that waste oil be
burned in a 25% blend.
American Petroleum Institute, How to Sell Motor Oil. API Publication
#1508, 1972.
Marketing and salesmanship techniques for the service station
attendant are described.
American Petroleum Institute, Know Your Motor Oil. API Publication #1507,
April 1971.
Engine demands and motor oil characteristics are simply discussed.
Criteria for choosing oil and determing oil change frequency are given.
Preceding page blank
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American Petroleum Institute, Lubricant Service Designations for
Automotive Manual Transmissions, API Publication No. 1560, 1972.
The API-GL series Is described for different engine designs and
operating conditions.
American Petroleum Institute, Lubrication of Earth Moving and Other
Heavy Duty Equipment. API Publication #1578, Washington, D. C.
American Petroleum Institute, Manual on Disposal of Refinery Wastes,
First Edition, Washington, D.C., 1969.
A loose-leaf binder contains technical alternatives for disposing
of liquid wastes from references.
American Petroleum Institute, The Migration of Petroleum Products in
, Soil and Groundwater, Principles and Countermeasures. Publication No. 4149,
Washington, D.C., January 1973„
The booklet describes fire hazards and safety procedures; water
contamination hazards; spill control and recovery; detection and
analysis techniques; biological degradations of petroleum; and
actual incidents of oil migration.
American Petroleum Institute, Motor Oil Guide. API Publication #1551,
1972.
The guide discusses the same issues covered by Know Your Motor Oil
but in a more thorough, less popularized way. it discusses engine
lubricating functions of motor oil, engine design, the lubrication
system, contamination, driving habits, additives, and oil classifi-
cation systems.
American Petroleum Institute, Petroleum Facts & Figures 1971, and 1972
Annual Statistical Review. Washington, D.C
Statistics are reported for crude production, refining, transportation,
marketing, use, prices, and taxes.
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American Petroleum Institute, Committee on Disposal of Waste Products,
Division of Marketing, Waste Oil Roundup... No. 1 and Waste Oil Roundup...
No. 2. API Publication No. 1582, Washington, D.C., September 1972 and
April 1973.
These reports are an attempt by the API to provide a clearinghouse
for new developments and findings on waste oil collection and disposal.
The first Roundup reports data on the magnitude of the waste oil
problem, disposal methods, collection, research on technical solutions,
and legislation. The second Issue reports comments made on the first
issue, repeats much of its data, and adds new Information on waste oil
research. The Roundups announce that the API's Committee on Disposal
of Waste Products has a program to develop non-polluting disposal
techniques for using waste oil 1n refinery feedstocks or for blending
with heavy heating oil.
American Petroleum Institute, Why Change Motor Oil and When, API
Publication No. 1576, 1972.
This is a slide show and accompanying script which describe what
happens when motor oil is not changed periodically.
American Society for Testing and Materials, ASTM Research Report D2;1002,
Revised January 1971.
The ASTM here establishes the test methods and performance characteristics
for various grades of lube oil, and also technically describes each
of the grades.
Armour Research Foundation, Separation and Characterization of Add Sludge,
Report No. ARF-3859-3, April 19, 1962.
The report done for the Association of Petroleum Re-Refiners concludes
that one half the acid sludge from re-refining operations is organic,
including equal parts of lube oil, polymers, and asphalt. Solids
are largely lead, barium sulfates, and carbon. A boiling paraffin
solvent was found best for extracting the oil and polymers. The report
represents the third phase of a three-phase project for APR.
Armour Research Foundation, Study of Re-Refining Waste Disposal, Report
No. ARF-3829-7, May 19, *^
The report done for the Association of Petroleum Re-Refiners examines
solvent extraction processes in an effort to avoid the acid sludge
residue resulting from re-refining techniques. Phenol was the most
effective sludge extraction solvent found, but it did not extract all
ash components. Some work on acid sludge disposal and separation was
also reported.
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Armour Research Foundation, Study of Re-Refining Haste Disposal Problem.
Report No. ARF-3829-6, AprTTT, 1961." "
This report presents a bibliography of material relevant to Armour's
study of non-acid re-refining methods for the Association of Petroleum
te-Refiners.
Armour Research Foundation, Study of Re-Ref1n1ng Waste Disposal. by
R. E. Putscher, Report No. ARF-3808-5, January 29, 1960.
The study for the Petroleum Re-tef1ners Association examined ways of
eliminating or minimizing the acid sludge disposal problems by non-
acid methods of treatment. Crankcase drainings from different parts of
the country were found to be uniform 1n composition. Evaluation of
several chemical flocculents and solvent predpitants showed no obvious
preferred choice.
Arthur D. Little, Study of Waste Oil Disposal Practices in Massachusetts,
Report to the Commonwealth of Massachusetts, Division of Water
Pollution Control, Report No. C-70698, Cambridge, Mass., January 1969.
The study was commissioned to provide a basis for future waste oil
program planning in the state. The scope included: annual quantities
generated, geographic distribution, types of sources, amounts disposed
of by various methods, disposal practices of collectors and reprocessors,
cost of reprocessing to fuel, and long-term trends. Among other findings,
the study reported that 42% of automobile waste oil becomes a probable
pollutant (1% dumped in sewer, 18% fate unknown, and 23% dumped on
ground) and 22% becomes a potential pollutant (11% road oil, 8% taken
from state, and 2% farm use). Some 37% appeared to be reclaimed as
fuel oil, more as lube oil.
Ash, David, "Used Motor Oil-Any Good?", Argosy, Vol.364, No. 4, April 1967.
The author presents a well-argued and well-researched commentary on
some of the major institutional issues surroundlsng recycling of waste
oil. He notes the resistance of the major oil companies to re-refiners
and speculates on economic motives that might Induce such resistance.
Examples of major fleets using re-refined oil are provided and the difficul
ties of oil disposal alternatives to re-refining are described. The
author cites testimonials for recycled oil by lube experts, briefly
reports the technical problems encountered in re-refining, and evaluates
two major critiques of recycled oil. He rejects the allegation that
lube oil wears out but at least partially accepts the idea that the
quality of re-refined service station waste oil can vary widely.
He suggests the buyer look for the APR emblem label.
84
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Barclay and Company, Inc., Barclay Waste 011 Burner, Product Bulletin,
New York.
The process described will Incinerate waste oil.
Bernard, Harold/'Embroiled in 01?, EPA, Agriculture and Marine Pollution
Control Branch, Division of Applied Sciences and Technology, reprinted
in the Proceedings of the Joint ERA-API Conference on Prevention and
Control of Oil Spills. Washington, D.C.. June 15-17, 1971. pp. 91-96.
This oft-quoted paper on waste oil disposal discusses the fate of
used automotive crankcase oil and concludes that about 500 million
gallons each year go into the environment. Burning tests produce mixed
results; although some tests showed 3 to 1 dilution with virgin fuel
would be adequate, other tests showed burner clogging. The vacuum
distillation experience of NORCO (g.v.) was presented. The paper does
not go into detail in any one area, but it raises many of the Important
issues in waste oil disposal.
Bethea, S. R., et.al., A Modern Technique for Automotive Haste Oil Re-
Refining - DistiTTation Plus HydrotreatiTig submitted for Publication
in HPI.
Bonnifay, Pierre and Durtiau, Robert, A New Process for Reclaiming Spent
Lubricating Oils,Institute Frangais du Petrole, New York, New York,
September 1972, also published as Report No. F&L-72-51, National
Petroleum Re-Refiners Association, September 1972.
A process developed by the French Petroleum Institute 1s described
for propane clarification of spent lube oils prior to conventional
acid/clay treating. The IFP process lowers but does not eliminate
the amounts of acid and clay needed, improves oxldative stability of
reclaimed oil, and lowers ash content. The authors claim that product
quality is constant, yields are higher, and plant investment is low.
Technical information given is inadequate for experimental replication
of the IFP process.
Booth, G. T., The Oil Company's Partner in Proper Service Station Waste 011
Disposal - The Collector and Re-Refiner. Paper # F&L-72-46, National
Petroleum Refiners Association, Washington, D.C., September 1972.
Booth reports a study showing that manufacturers of second and third
grade lube oils sometimes abuse the API/SAE quality rating system.
He also reports a Bureau of Mines plan to establish regional waste oil
collection centers nationwide to provide recycled oil for federal
purchase.
85
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Bowen, D.H. Michael, "Waste Lube 011 Pose Disposal Dilemma", Environmental
Science and Technology. Vol. 6, No. 1, p. 25, American Chemical Society,
Washington, D.C., January 1972.
The article reviews much of the waste oil research carried on up to
publication date. It concludes that reprocessing may be the best
answer but that the new technology required would add costs to an
industry already under severe economic pressure. API and A.D. Little
waste oil disposal surveys (q.v.) are summarized. Scavenger operations
and obstacles to re-ref1n1ng are Indicated: tax burdens, Increasing
additives, and residual disposal. The NORCO and IFP processes for re-
refining are discussed and the API's recommendation to use waste oil
for fuel Is reviewed.
Bunker, John, "From Pollutant to Resource", Christian Science Monitor.
July 25, 1973.
Standard data on waste oil generation and on EPA research efforts is
given. Although a generally accurate overview, some assertions are
questionable.
Burhenne, W.E. and Irwin, W.A., "A Model Waste 011 Disposal Program 1n
The Federal Republic of Germany," Ecology Law Quarterly. School of Law,
University of California, Berkeley, California, Vol. 1, No. 3, Summer
1971.
The article is a detailed description of the 1968 Waste Oil Law 1n
West Germany. The law established a complicated, but nonetheless
effective, bureaucratic and economic structure to regulate disposal
of waste oil. The government taxes all oil brought Into the country
and then uses these funds to support a subsidy Incentive system for
proper disposal of waste oil. A small payment 1s allowed for Incinera-
tion, a larger sum for use as fuel oil, and an even larger sum for re-
refining to lube oil. The authors note some of the law's defects, sug-
gest improvements, compare the actions of other European countries, and
comment on the dangers of arbitrary disposal of waste oil to the environ-
ment.
Bylinski, Gene, "Metallic Menaces 1n the Environment," Fortune, January
1971.
The dangers of metals as non-degradable pollutants 1s discussed. Ex-
pected federal restrictions on metallic pollutants can be expected to
hinder plans to dispose of waste oil by burning 1t as fuel.
Byrne, J., Presentation of the API Committee on Disposal of Waste^Products;
National Petroleum Refiners Association 197Z Fuels and Lubricants Meeting,
New York, New York, September 14, 1972.
86
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"California Project Turning Sump to Soil," 011 and Gas Journal. 58,
September 11, 1972.
Christiansen, F.A., Clingan, W.W., Hartmann, L.M., Engines Like Ash!ess
Detergents, Society of Automotive Engineers, June 1962.
Commander, J.C., Nonradioactive Waste Oil Disposal Study, Idaho Nuclear
Corporation, prepared for U.S.AEC, Idaho Operations Office, under
contract No. AT(10-1)-1230, Idaho, February 1971.
The report reviews applicable regulations and standards, estimates
the volume and character of waste oil generated, describes collection
and storage techniques, and discusses disposal alternatives. Cost
trade-off studies and environmental Impact statements are included.
The analysis concludes that commercial reclamation is economically
unattractive due to disadvantageous tax and labeling laws and that
waste oil should be used for surface treatment of unpaved roads.
Conner, Michael J., "Project of a Small New Jersey Company Could Cut
Oil Pollution of U. S. Waters," Wall Street Journal, February 7, 1973,
p. 10.
EPA's research at the National Oil Recovery Corporation (NORCO) is
discussed. The article gives economics and production data on the firm
and comments on the decline of the re-refining industry. It describes
EPA's major financial support for NORCO, implies that the results of
the first phase were not what was hoped for. However, it quotes rosy
predictions of future successes made by both the firm's owners and by
EPA officials.
Cornell, Howland, Hayes and Merryfield, Seattle Area Oil Waste Disposal
Facility Study, Seattle, Washington, August 1969.
Crittenden, A.M., Re-Refining Lubricating Oils for Railroads, American
Society of Lubricating Engineers 15th Annual Meeting, Cincinnati, Ohio,
April 1960.
Cruikshank, Major Charles B., Oil Re-Ref1ning--Its Importance to the USAF
Economy, Research paper submitted to the faculty of the Air Command
and Staff School of the Air University, Historical Research Center,
• Maxwell AFB, Alabama, October 1949.
"Current Developments", Environmental Reporter, Vol.2, Nos. 1, 40, 43,
50, Bureau of National Affairs, May 1, 1971 - April 30, 1972.
Miscellaneous Congressional and Administration actions on waste oil
are reported.
87
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Cutler, Edward Taylor, "Reusing Oil", Environment, Vol. 14, No. 3, p.55,
a letter to the editors, April 1972.
The letter comments on the A.D. Little and API waste oil reports (q.v.)
and suggests that re-refining to lube oil is too difficult while
blending for fuel oil is too polluting. Instead he argues for reprocessing
used oil to fuel oil using a new method developed by the author's firm,
Pilot Research and Development Corp., Merlon Station, Pennsylvania.
Delos, J.W., Techniques of Haste Oil Handling - Automotive Operations,
24th ASLE Annual Meeting, Philadelphia, Pal, May 1969.
Del sky, Richard, "011 Pollution In Sewers?" New York Post. December 26, 1970.
Commissioner of Water Resources, Maurice Feldman, says gas stations
probably will have to begin accounting for all their used oil. The
possibility of oil build-up and explosions in the sewers is reported.
See also, "Gas Stations Found Dumping Waste 011 in Sewer Systems,"
loc. cit.
Dotson, D., etal.,Land Spreading; A Conserving and Non-Polluting Method
of Disposing of Oil Wastes, August 1970.
Ebrey, 6.O., "Re-Refining of Used Mineral Oils by Treatment with Activated
Clay and Heat," Lubrication Engineering. December 1950.
Environmental Law Institute, "The Legal Aspects to Incentive Approach
to Pollution Control", EPA Contract No. 68-01-2203, Washington, D.C.,
June 28, 1973.
The contract provides $60,000, a part of which will be devoted to study
of alternative federal policies on waste oil control.
Environmental Quality Systems, Inc., Waste Oil Recovery Practices State
of the Art, (1972), prepared for State of Maryland, Maryland Environmental
Service and U.S. Environmental Protection Agency, Washington, D.C.,
December 1972.
This report completes the first objective described in the MES grant
1 application to EPA (q.v.). Although there are some errors, 1t is the
best data compilation on this Issue now available. Its chapters cover
these issues: sources and amounts of waste oils in Maryland, national
waste oil projections, physical and chemical characteristics of waste
oils, present versus future oil characteristics, properties of recovered
products, trends in oil use, survey of existing laws and regulations,
lube oil base stocks, physical and chemical processes for re-refining
waste oils, review of patent literature, direct and indirect waste oil
disposal techniques. There is a good technical bibiography
of the report, p. 169.
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Esso Research and Engineering Company, POL Disposal Techniques. U.S. A1r
Force Contract No. F29601-73-C-0047, Linden, New Jersey, January 23, 1973.
The contract is for $39,000 and calls for Esso to perform a paper
study of alternative techniques that the Air Force might use 1n disposing
of waste petroleum, oils, and lubricants (POL's).
Esso Research and Engineering Company, Research on Oily Wastes, by R.H.
Salvesan ^t-iL., Government Research Laboratory, prepared under contract
No. N00600-72-C-0761 for the U.S. Navy, Naval Supply Systems Command,
R&D Branch, Final reports due June 25, 1973.
Nine reports on major Navy Terminal complexes describe systems for
collection and use of oily wastes as fuel.
Esso Research and Engineering Company, Waste Oil Reprocessing, by Gilford
A. Chappell, Government Research Laboratory, Project 72-5, prepared for
the Division of Water Pollution Control, Water Resources Commission,
Commonwealth of Massachusetts, January 1973.
Esso studied the technical problems of using waste oil as fuel oil
for Massachusetts. It performed combustion tests, precipitation tests,
and distillation experiments. The combustion trials showed severe fouling
of the heat exchange tubes. Sludge precipitation was less effective
than distillation in removing metals but offered fewer problems 1n
residual disposal.
"Fact Book," National Petroleum News. Mid-May 1972, p. 136.
Farrington, John W. and Quinn, James G., "Petroleum Hydrocarbons and Fatty
Acids in Sewage Effluents," Woods Hole Oceanographic Institution
Contribution No. 2812.
Fritsch, Albert J., "Waste Oil Disposal: Time for Change," Environmental
Action, January 20, 1973, p. 3-5.
This article presents fresh information on waste oil disposal alternatives.
It discusses metallic contaminants in waste oil, describes military
attitudes toward recycled oil, and mentions Sweden's recycling program.
A two-fold mechanism is suggested to resolve waste oil problems: 1) a means
of collecting, storing, and reprocessing waste oil and 2) incentives and
regulations to deal with individual consumers. A federal subsidy program
is recommended.
89
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GCA Corporation, A Study of the Economic,Technical, and Environmental
Factors Affecting Reuse of Waste Oil as a Blended Fuel Oil, EPA Contract
No. 68-01-1859, May 17, 1973.
The contract specifies that GCA will focus on use of waste oil as a
fuel for power plants.
GCA Corporation, Study of Haste Automotive Lubricating Oil as an Auxiliary
Fuel to Improve the Municipal Incineration Combustion Process, Environmental
Protection Agency Contract No.68-01-6l86, EPA Contracts Management
Division, Washington Contract Operations, April 19, 1972.
The contract report concludes that the physical and chemical properties
of automotive waste oil make it suitable as an auxiliary fuel in
municipal incinerators. It is found to reduce combustible air pollutants
and excessive residues that result from the burning of wet or low heat
value refuse.
Gallapoulos, N. E., Projected Lubricant Requirements of Engines Operating
with Lead Free Gasoline. Society of Automotive Engineers, June l§71.
"Gas Stations Found Dumping Waste Oil in Sewer System", New York Times,
December 26, 1970.
EPA's investigation Into waste oil dumping by service stations is
reported. Neil Fabricant, assistant administrator for legal services,
threatened prosecution for such polluters. See also Loetterle, op. clt.
Gruse, W.A., Motor Oils, Performance and Evaluations. Reinhold Publishing
Company, New York, 1967.
Goetsch, H.C., Address To: The Association of Petroleum Re-Refiners,
St. Louis, Missouri, July 26, 1972.
The Vanik bill, HR 15502 (q.v.), is the occasion for the APR meeting
and the topic of this paper. The author offers amendments to strengthen
the bill: the labeling section should be replaced with a provision for
a uniform classification section for lube oil quality; virgin
oils should be taxed and the funds used to abate oil pollution, e.g.,
by developing ways to deal with re-refininq wastes; and the federal
government should develop understandable quality specifications for
lube oil testing and educate consumers on how to buy oil.
Hartung, H. D., Economic Recovery of Waste Lubricating Oils, 30th
International Water Conference of Engineers Society of Western
Pennsylvania, Pittsburgh, October 28-30, 1969.
90
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"HECO Waste Oil Burning Due for Pollution Ruling," Honolulu Advertiser,
December 17, 1972.
Harvey, James, "General Motors Recycles Over Million Gallons of Waste
Industrial Oils", Congressional Record, June 7, 1972, E6030-E6031.
Congressman Harvey of Michigan discusses the program of GM's Steering
Gear Division to install a "closed loop" system for recycling more than
one million gallons of industrial oils each year.
"Hawaii Utility Has Good Result Burning Waste Oil," Platt's Oil gram
News Service, Vol. 50, No. 220, November 14, 1972.
"Hearing Scheduled on Waste Oil in Harbor," Argus-Citizen. Dorchester,
Massachusetts, September 14, 1972.
Herschel, W.H., Anderson, A.H., "Reclamation of Used Petroleum Lubricating
Oils," National Bureau of Standards Technological Papers, Vol. 17, No. 223,
October 1922.
Humble Oil Company, "Lubetest DG-2C", Product Bulletin.
"Is Lube-Oil Reclaiming Being Abandoned Because of Economic Unfeas1b1l1ty?"
Oil and Gas Journal, December 13, 1971.
Jack, R. W., "Laboratory Engine Specification Test for Crankcase Oil - I",
Lubrication, Vol. 55, No. 8, Texaco, Inc., New York, New York, 1969.
The background, purpose, and significance of most common crankcase
lubricant specification engine tests are discussed, and a brief
description of each test procedure is provided.
Jackson, Howard E., "Re-Refined Oil for Private Airplanes", Aero Magazine,
Vol. 3, No. 3, May/June 1970.
The article claims that many private pilots, flying school operators, and
mechanics prefer re-refined lube oil because it gives longer engine life
at considerable savings. The evidence is personal rather than survey
data, and most individuals are not adequately identified. The author
argues that the oil is improved by being processed three times: in the
original refining, in the engine, and by the re-refiner. Weaker parts of
the oil are seen to be destroyed leaving lube oil superior to that
originally sold. Favorable engine tests by Analysts, Inc. (Oakland,
California) are reported. However, resistance to re-refined oil by
major aviation fuel dealers because of variability of re-refined feedstocks
is also indicated.
91
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Kalichevsky, V.A., Modern Methods of Refining Lubricating Oils, Relnhold
Publishing Company, Ifew York. 1938.
Levine, Alan, The Recycling of Waste 011, unpublished paper, Environmental
Law Seminar, Georgetown University Law School, Mr. Fabrikant, December 21,
1972.
The paper reviews the generation of waste oil, the decline of the re-
refining industry, views of the API, and the Vanlk bill (q.v.)
Loetterle, Fred, "Use of Sewers for Oil Dumping Probed", New York Dally
News, December 26, 1970.
The start of a New York City EPA investigation of gas stations' use of
sewers for waste oil dumping Is reported. The study was begun after
the Metropolitan Waste 011 Dealers Association estimated that 20% of the
city's service stations were Illegally dumping. One year earlier,
service stations had begun to pay for collection of waste oil they
had previously been able to sell. Increased use of additives was blamed
for the switch.
"Low Cost System Readies Waste 011 for Boilers", Power, August 1972.
The Carrier Corporation 1s using waste Industrial lube oil as fuel oil
at its plant in Syracuse, New York. Only settling to remove water 1s
performed before bu riling. Carrier then blends this oil with No. 5
or No. 6 fuel oil 1n proportions up to 2535.
Lowther, H.V., Lube Effects with Unleaded Gasolines. API Proceedings,
May 12-14, 1971, San Francisco, California.
Removal of lead from gasoline causes rusting of engine parts, and in-
creases varnish deposits. Exhaust valve recession frequently occurs
but the effect on oil oxidation and thickening is ambiguous.
"Lube Oil Refining Rebounds", Chemical Engineering, September 9, >968,
pp. 54-56.
Lubrizol Corporation, Fuel and Lubricant Test Capabilities, January 1972.
This loose-leaf binder contains descriptions and uses of the various
engine tests used to evaluate lube oil.
92
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Lubrizol Corporation, Modern Automotive LubHcants-1972, by P. A. Asseff.
This pamphlet gives a relatively non-technical description of types
of vehicle lube oil and engine tests used to evaluate lube oil.
M/PF, Re-Refined Motor Oil - Market and Supply, M/PF Research Report No.
713-485C, August 1971.
This 15 page report for the Texas American Oil Company identifies
quantities and major suppliers 6f used oil in the Ft. Worth-Houston
Area and quantities and major purchaser of waste oil 1n the same area.
It concludes that there is some opportunity for expansion of sales with
different labeling approaches, e.g., use of the term, "recycled".
Mallatt, R.C., Grutsch, J.F., Simons, H.F., "Incinerate Sludge and
Caustic", Hydrocarbon Processing, May 1970.
Maryland Environmental Service, Oil Recovery Program, Application for
Environmental Protection Agency Research, Development and Demonstration
Grant, State of Maryland, December 7, 1971.
MES received $140,000 to develop a comprehensive collection and treatment
plan to solve the state's waste oil problems. The grant proposal states
four objectives: 1) a state-of-the-art review of existing waste oil
recovery technology, 2) a management program for waste oil collection
and handling, 3) a financing plan, 4) preliminary engineering and
preparation of plans for a state-wide waste oil recovery system. See
also "Environmental Quality Systems, Inc.", op.cit.
Massachusetts Hazardous Waste Board, Hazardous Waste Regulations.
Division of Water Pollution Control, Boston, Mass., Publication 6672, August
1972.
The regulations permit the Division to control collection and disposal
activities through licensing of waste collection and disposal firms. The
intent of the licensing is to promote reclaiming of wastes insofar as
practical. Where this is not possible, incineration, neutralization
or other processes eliminating the wastes from the environment are
preferred. Where such alternate disposal is not available, selected
sanitary landfill sites are being approved for sludge and solid wastes.
Regulations promulgated under G.L. Chap. 21, sees. 52, 57, and 58.
McCrone Associates, Bibliographical Study of Re-Refining Used Lubricating
Oil, by Richard E. Putscher, Project MA-1982, Oct. 9, 1970.
This work for the Association of Petroleum Re-Refiners updates the
technical non-acid waste oil treatment bibliography prepared by R. E.
Putscher for Armour in April 1961.
93
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McCrone Associates, Study of Problems of Refining Lubricating Oil Drainings,
Project MA-1982, May 11, 1971.
This short study for the Association of Petroleum Re-Refiners was
funded in an effort to find technical means of dealing with recycling
problems caused by the growing variety of additives and additive products
found in waste oil. Two process problems were studied: the thermal
effects of pre-distilling the oil prior to sulfuric acid treatment,
and the nature of the materials causing filter press plugging. Half
of the total research effort went into screening non-acid flocculents to
precipitate these suspended materials in used oils.
McMahon, Thomas C., "Can the Waste Lube 011 Problem Be Solved?", Yankee
Oilman, December 1972.
The Director of the Massachusetts Division of Water Pollution Control
summarized the status of the Division's programs to abate waste lube
oil problems. The author notes that re-refining firms operate under
special burdens and that none now exist in New England. The state's
research programs on treatment technology (Esso Research and Engineering),
biological degradation (Tyco Laboratories), and statewide waste oil
generation (A.D. Little) are reported. The author describes the state's
new hazardous waste regulations and the state's joint plans with EPA
to locate a waste oil collection facility at Braintree.
Millar, F. W., "Under the Hood," Chemistry, Vol. 44, No. 6, June 1971.
Modrock, E., "Treated Fuel 011 Reduces Deposit Build Up," Maintenance
Engineers, 1970.
National Academy of Sciences and National Academy of Engineering, Water
Quality Criteria 1972, prepared by the Committee on Water Quality
Criteria, 1973.
National Academy of Sciences and National Academy of Engineering,
Research Needs in Water Quality Criteria, Report of the Committee on
Water Quality Criteria, Environmental Studies Board, 1973.
National Oil Recovery Corporation, "Conversion of Crankcase Waste Oil into
Useful Products," EPA WPCR Series 15080 DBO, March 1971.
This EPA technical publication issued by the Office of Water Quality
describes NORCO's progress in developing and demonstrating a simplified
technique for reprocessing spent automobile crankcase oils. The objective
was to produce useful non-lube petroleum products such as low sulfur
fuel oil and diesel fuels, without producing residues which cause water
pollution. The product goals specified were substantially achieved but
the disposal of residual "bottoms" remained a problem. A $
Federal grant financed the research.
94
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National Oil Recovery Corporation, Recycling of Haste Oils Into Diesel Fuels
and Other Petroleum Products, Environmental Protection Agency Contract No.
68-01-0177, EPA Contracts Management Division, RID Procurement Section A,
March 7, 1972.
The $352,000 contract calls for further work by NORCO. The objectives are to
Improve the quality of fuel oil produced, solve the "bottoms" residual problem,
determine the quality of products, and obtain more systems design and operating
data.
National Petroleum Refiners Association, A New Process for Reclaiming Spent Lub-
ricating Oils. Report No. F & L-72-51, September 197Z.
"Oil on Troubled Waters", Government Executive. February 1970, p. 24.
• A standard account of the waste oil problem, tax discrimination, and FTC
labeling laws is provided.
"Oil Purification! Filtration and Reclamation," Lubrication, Vol. 33, No. 1,
January 1947, p. 1-12.
Olcott, William, "Motor Oil Sales Flow from Stations to Mass Merchandisers,"
National Petroleum News, July 1971.
This article is the source of the frequently cited figure that the service
stations'share of the 600 million gallon/year auto lube market has slipped
from 70% in 1961 to about 45% today. Some 30% of new auto lube oil 1s now
sold through mass marketers such as discount houses, and the percentage is
expected to rise to 40% or more 1n the 70's. In addition,major suppliers
who have traditionally shunned this market are increasingly selling directly
to such distributors. Various other changes 1n the auto lube oil market are
discussed: do-it-yourself oil changes, smaller cars, longer drain periods,
increasing car numbers, improving oil quality, non-leaded gasoline, rise of
multigrade oil, and the trend to racing oil.
Pollack, Jack M., "Change Your Oil, Mister?", True. June 1952.
This is an interesting expose of the prejudiced economic treatment accorded
re-refined oil, even this long ago. Although the article is quite old, issues
described are the same ones being fought today -- such as quality consistency
and supposed bias on the part of major oil companies and the military.
Porcello, Joseph A., "Allied Used Up Old Auto Oil," Syracuse Herald American,
January 1972.
Recon, Inc., Study to Obtain and Develop Information on Waste Oil Recycling, EPA
Contract 68-01-1870, Princeton, New Jersey, March 1, 1973.
The contract calls for Recon to 1) assess waste oil disposal techniques, 2)
evaluate existing technology for waste oil processing, 3) determine the en-
vironmental impacts of various processes, and 4) perform a national material
balance on waste oil and recommend improvements.
95
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"Recycled Fuel," Quincy Patriot Ledger, Quincy, Massachusetts, October 7, 1972.
"Refining of Motor Oils," Lubrication. December 1946.
Reitze., Arnold W. Jr., Environmental Law, Second Edition, "Lubricating 011," by
Jeffrey E. Howard and Dennis P. Koehler, J.D.'s the National Law Center,
George Washington University, June 1972, p. 79.
;- This appendix to Chapter 2 provides a survey of waste lube oil disposal Issues:
air and water pollution, effect of retailing, and the recycling Industry and
its problems. Much of the Information has been used 1n statements drafted for
Congressman Charles A. Vanlk (q.vj.
Rek. L., Combustion of 01} or Gas in Fluidlzed Beds, Proceedings 2nd Internation-
al Conference on Fluldlzed Bed Combustion, Publication #AP-109, EPA.
Schilling, A., Motor Oils and Engine Lubrication. 2nd Ed.t England, Scientific
Publications Ltd., 1968.
"The Schuylkill 011 Swamp: Ecology Gone Haywire," The Philadelphia Inquirer,
Philadelphia, Pa., July 10, 1972. "
Seidl, H.C.. "Evaluation of Reclaimed Oil," History HQ OCAMA. Oklahoma City.
Oklahoma. FY 1948. Historical Research Center, Maxwell AFB, Alabama, July -
December 1948.
Shell Oil Company, Notes of Disposal of Refinery Wastes by Biological Action
in Soil, Deer Park, Texas.
Shields, Wilfred H. Jr.. and Miles, Walter A., Used Oils - a Waste? or a Resource?,
Solid Waste Services, Maryland Department of National Resources, and Division
of Solid Waste Management, Maryland Department of Mental Health and Hygiene,
April 1971.
This is a forthright report of the authors' personal study of waste oil disposal.
It estimates the amounts and sources of waste oil discarded, describes the kinds
of changes that result, and accuses the Federal government of bringing about
the decline in recycling through unfavorable tax and labeling decisions. It
strongly criticizes the API for underestimating the oil pollution problem.
Finally, the report recommends that waste auto oil be recycled to lube oil, that
waste industrial oil be used as fuel, and that the state establish a major system
for recovery of waste oil. This last recommendation led to the current MES re-
search with Environmental Quality Systems, Inc. (q.v.)
96
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Smalheer, C.V., and Smith, Kennedy, Lubricant Additives, Lez1us-H1les Co.,
Cleveland, Ohio, 1967.
Lubrizol Corporation, a major additive manufacturer distributes this technical
work on the chemistry and application of additives and the testing and evalua-
tions of lubricants.
Society of Automotive Engineers, Crankcase Oil Viscosity Classification. J 300a
April 1967, editorial change, October 1972.
The SAE specifies a recommended practice for classifying lube oils according
to viscosity: 5W, 10W, and so forth.
Society of Automotive Engineers, Engine Oil Performance and Engine Service
Classifications, J 183a, April T57T '.
In this "Recommended Practice" document the SAE updates and promulgates engine
lube oil catagories, SA through SE, and CA through CD. It gives API engine
service descriptions, ASTM engine oil descriptions, and primary performance
criteria for each catagory (grade).
Society of Automotive Engineers, Engine Tests for Evaluating Engine Oils, J 304a,
June 1971.
In this "Information Report", the SAE describes some of the more widely used
engine tests for evaluation of lubricants.
Society of Automotive Engineers, Physical and Chemical Properties of Crankcase
Oils, J 357, August 1969, editorial change, June 1971.
This SAE "Information Report" discusses a number of the physical and chemical
properties of new and used crankcase oils. Standardized test methods are
also listed.
"Spectrum," Environment. January/February 1972, p. 26.
Summarizes article by Bowen, Environmental Science and Technology (q.v.).
"Squeezing Pure Lube from Waste Oils", Chemical Engineering, by B. Cross, June 11,
1962, pp. 126-128. .
A process flowsheet is provided for the operations of Motor Oils Refining Co.,
a re-refiner in Illinois.
97
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Streets, R.E., a letter to Mr. H. Paul Butz, Chief of the FTC's Division of
Trade Regulation Rules, File 959, June 5, 1964.
Streets, the Chief of the Army Material Command's Power Sources Section,
writes to support the FTC's proposed Trade Regulation Rule (q.v.). He
states that the variability in the charge stock makes adequate process
control in re-refining impossible and that earlier engine tests have shown
available re-refined oils to be very inferior. Streets also indicates that
control specifications proposed by the re-refiners would not be adequate to
assure quality and that routine performance tests using actual equipment are
the only real guarantee of high quality.
Supta, N.P. and Gairola, V.K. "Use of Waste Engine 011 as Fuel,"
Chemical Engineering World. Vol. 7, No. 6, June 1972.
Swain, J.W., Disposal of Spent Industrial Lubricants, Paper #FL-72-4T, September
1972, National Petroleum Refiners Association, Washington, D.C.
This seven page non-technical commentary briefly surveys disposal alternatives
for industrial lubricants. The author concludes that disposal can be Improved
if the oil user reduces his usage and separates types of waste oil during
collection. He recommends reprocessing for use as lubricants, metal working
fluids, or fuel.
Swain, John W., Jr., Reclaiming, Re-Refining, and Uses of Waste Oil. American
Society of Lubrication Engineers, Annual Meeting, Chicago, Illinois, April 29,
1973.
The disposal alternatives for waste industrial and crankcase oils is discussed.
Contaminants in both types are enumerated. The paper describes provisions of
several new Michigan laws which require industries to report on their waste
generation, which license and control waste oil scavengers, and which permit
citizen suits against polluters. Purchase, collection, mixing, reprocessing
and product alternatives for used oils are reviewed.
"Swarf Crushing and Oil Reclamation Plant," Environmental Science and Technology,
September 22, 1967, p. 387.
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Teknekron, Inc. "Technical and Economic Study of Waste 011 Recovery",
EPA Contract No. 68-01-1806, Berkeley, California, March 26, 1973.
This contract for $58,000 calls for Teknekron and Its subcontractor,
The Institute of Public Administration, to Investigate the feasibility
of closed-loop oil recycling systems, the economics of the re-refining
industry, consumer waste oil disposal, and federal research efforts 1n
waste auto lube oil disposal.
Thurmond, Strom, "The Need for Recycling of 011", Congressional Record,
January 16, 1973, p. S66.
Remarks were made on the introduction of S 409, a bill to amend the excise
tax code to encourage reuse of waste oil. Thurmond discusses the genera-
tion of waste oil, its environmental impact, and federal obstacles to
recycling.
Tyco Laboratories, Biological Degradation of Haste 011 Sludge, contract
report for Massachusetts Water Resources Commission, 1971.
U.S. Congress, 93rd, 1st Session, HR 5902: National Oil Recycling Act, a
Bill to Provide for the Recycling of Used Oil and for Other Purposes,
House Committee on Ways and Means, introducted March 20, 1973 by Charles
P. Vanlk (D-Ohio).
Identical bill to Vanik's bill, HR 15502, Introduced June 14, 1972.
U.S. Congress, 93rd, 1st Session, s 409,"A Bill to Amend the Internal Re-
venue Code of 1959 to Encourage the Use of Recycled Oil", Senate Finance
Committee, introduced January 16, 1973, by Strom Thurmond (R-S.C.).
This bill is identical to a bill introduced March 21, 1972 with remarks
by Senator Thurmond (q.v.). It and a bill by Congressman Vigarito (q.v.)
are identical to the bill Congressman Vanik first introduced in January
1972. All these measures would allow re-refiners to be exempted from
payment of excise taxes on virgin oil that they blend with their re-refined
oil.
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U.S. Congress, 92nd, 2nd Session, HR 15502: Natural 011 Recycling Act, a
Bill to Provide for the Recycling of Used 011 and for Other Purposes,
House Committee on Mays and Means, Introduced June 14, 1972 by Charles A.
Vanik (D-Oh1o).
A major provision of the bill would reform the excise tax treatment of
lubricating oils by abolishing the current tax exemption enjoyed by virgin
lube oil that 1s not used 1n highway vehicles. The bill would also change
the labeling requirements for re-refined oil imposed by the Federal Trade
Commission, prohibit oil companies from restricting their service stations
from selling recycled oil, encourage Federal procurement of recycled oil,
and force all lube oil retailers to provide disposal facilities and to
sell oil only in returnable containers.
U.S. Congress, 92nd, 2nd Session, House. Ways and Means Committee, Subcommittee
on Natural Resources, March 20 and 21, 1972.
A statement of Belton Williams, President of the Association of Petroleum
Re-Refiners, asks for restitution of the6$/gallon excise tax on virgin
industrial oil. He supports S 409 by Senator Thurmond.
U.S. Congress, 92nd, 1st Session, Joint Economics Subcommittee on Fiscal
Policy, The Economics of Recycling Haste Materials. Hearings, November 8 and
9, 1971, esp. p. 179.
Witnesses testified from the National Association of Secondary Materials
(NASMI), the American Paper Institute, the National Commission on Materials
Policy, New York EPA, Resources for the Future, and the U.S. EPA. The
Association of Petroleum Re-Refiners (APR) submitted a statement decrying the
pollution damage of waste oil and the pollution hazards of burning 1t. The
APR further asked for statutory changes 1n the excise tax treatment of lubri-
cants, including a new provision allowing re-refiners to collect a refund on
virgin oil purchased for blending.
U.S. Congress, 90th, 1st Session, Senate Public Works Subcommittee on Air and
Water Pollution, Water Pollution - 1967 (Part 1). Hearings on Si591 and S1604,
June 7, 8, and 9, 1967.
Hearings chaired by J. Caleb Boggs (R-Del.) examined the automotive oil pollu-
tion problems arising from the Excise Tax Reduction Act of 1965. Testifying
were James M. Quigley, Commissioner of the Federal Water Pollution Control
Administration; Harold L. Jacobs, Vice Chairman, Delaware Water and Air Resources
Commission; Alfred E. Peloquin, Executive Secretary, New England Interstate Water
Pollution Control Commission; P.N. Gammelgard, Vice President, Conservation and
Manufacturing, American Petroleum Institute; and H.K. Robertson, President,
Association of Petroleum Re-Refiners, accompanied by V.I. Worthington, Executive
Director. The API produced survey figures to show that service stations are
adequately serviced by waste oil collections. The APR showed increasing economic
failures among Its member firms and argued that Federal tax and labeling require-
ments were to blame.
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U.S. Congress, 89th, 1st Session, Senate, Excise Tax Reduction Act of 1965.
Report No. 324, to accompy HR 8371, Committee on Finance, June 14. 1965.
The Senate disagreed with lube oil excise tax reductions prepared both by
President Johnson and the House on the grounds that the tax was needed to
keep the re-refiners alive. It also removed the House provision that
assigned lube oil taxes to the Highway Trust Fund.
U.S. Congress, 89th, 1st Session, House, Excise Tax Reduction Act of 1965,
Report No. 433, to accompany HR 8371, Committee on Ways and Means, May 28,
1965.
President Johnson's bill would have repealed all excise taxes on lube oils.
The House agreed to drop the tax on off-highway uses (through a refund pro-
cedure) but kept the tax on highway oil on the grounds that 1) the Highway
Trust Fund was in need of more revenue and 2) that some tax advantage was
needed to keep the re-refining industry alive.
U.S. Department of Commerce, Letter Circular LC-990, National Bureau of Stan-
dards, August 1950.
The three-page report concludes that the quality of re-refined oil depends on
the quality of new oils from which it is obtained, the extent of deterioration,
and the re-refining process. No performance test data is given.
U.S. Department of Commerce, "Sales of Lubricating and Industrial Oils and
Greases, 1969," Bureau of the Census, Current Industrial Reports. Series MA-29C
(69)-l, January 7, 1971, and MH-29C(71)-1, October 1972.
U.S. Department of Commerce, "Sales of Lubricating and Industrial Oils and
Greases, 1967," Bureau of the Census, Current Industrial Reports, November 21,
1968.
U.S. Department of Commerce, "Sales of Lubricating and Industrial Oils and
Greases, 1965," Bureau of the Census, Current Industrial Reports, September 7,
1966.
U.S. Department of Commerce, "Sales of Lubricating and Industrial Oils and
Greases, 1965," Bureau of the Census, Current Industrial Reports, September 7,
1965.
U.S. Department of Commerce, "Sales of Lubricating and Industrial Oils and
Greases, 1962, Bureau of the Census, Current Industrial Reports, October 14,
1963.
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U.S. Department of the Interior, Additives in Re-Refined Oilsby Atomic Ab-
sorption, study conducted by the Bureau of Mines, Bartlesville Energy
Research Center, concerning metal content of some re-refined oils, February
22, 1972.
U.S. Department of the Interior, The Cost of Clean Mater and Its Economic Impact.
Vol. 1 of FWPCA Reports of 1968 and 1969.
U.S. Department of the Interior, The Cost of Clean Mater. Petroleum Refining.
Vol. Ill, Industrial Waste Profile No. 5, FWPCA Publication No. I.W.P.-5.
U.S. Department of the Interior, An Issue Support Paper About.... Waste Oil
Recycling, Bureau of Mines, April 1972.
An extensive five year research effort to develop and demonstrate methods of
waste oil re-refining is proposed. The program is to use the technical
facilities at the Bureau's Bartlesville Energy Research Center in Oklahoma.
U.S. Department of the Interior, Petrochemical Plant Effluent Treatment
Practices, FWPCA Report 12020, February 1970."
U.S. Department of the Interior, Water Quality Criteria. Report of the National
Technical Advisory Committee to the Secretary, FWPCA, 1968.
U.S. Department of the Interior and U.S. Department of Transportation, Oil
Pollution. A Report to the President, February 1968.
The ocean pollution impact of oil spills and other hazardous substances is
emphasized. Waste oils from gasoline service stations is mentioned as an
important source for the first time.
U.S. Department of the Treasury, Section 4091 - Imposition of Tax, Reserve
Ruling 57-204, p. 371.
The Treasury ruled that the introduction of used oil into the process of
refining virgin crude oil does not thereby make the product "a mere blend or
mixture" of mixable and non-taxable oils that is tax exempt under section
314.40 (d) (3) of Regulations 44.
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U.S. Department of the Treasury, Section 6424 - Lubricating 011 Not Used in
Highway Motor Vehicles. Reserve Ruling 68-108, p. 561.
The Treasury Department ruled on two issues. It decided that re-refiners
do not qualify as off-highway users and therefore are Ineligible for a tax
refund on virgin oil purchased for blending. It also decided that Industrial
buyers of blended re-refined lube oil could not collect a refund either since
the product purchased is nontaxable.
U.S. Environmental Protection Agency, The Impact of Q11.Y Materials on Activated
Sludge System. Hydroscience, Inc., EPA Report No. 12050 DSH 03/71, 1971.
The 110 page report studied the effect of a variety of compounds on small
scale continuous activated sludge systems. Batch studies to determine bio-
degradability and the effect of emulsification and temperature on the rate
of biological reaction were also conducted.
U.S. Environmental Protection Agency, Ocean Disposal of Barge Delivered Liquid
and Solid Waste from U.S. Coastal Cities. EPA Publication No. SW-19c, 1971.
This 119 page report by the Dillingham Corporation provides a baseline survey
of ocean waste disposal. Included is a discussion of current marine disposal
operations, environmental effects of barging wastes to sea, monitoring of
marine waste disposal operations, and institutional factors and recommendations.
Some passing references are made to the role of waste oil.
U.S. Environmental Protection Agency, Oily Waste Disposal by Soil Cultivation
Process, Office of Research and Monitoring, EPA-R2-72-110, December 1972.
The study in Deer Park, Texas, showed that soil microorganisms can decompose
oily wastes in landfills. The rate of decomposition was about one half
pound per cubic foot of soil each month without fertilizers, double with
fertilizers.
U.S. Environmental Protection Agency, Run off of Oils from Rural Roads Treated
to Suppress Dust. EPA Report EPA-R2-72-054, October 1972.
The study indicates that some seventy percent of the oil leaves the roadway
on dust particles or in water runoff. Most of the remaining thirty percent
volatilizes and is biodeqraded.
U.S. Environmental Protection Agency, Waste Oil Study. Preliminary Report to
Congress, April 1973.
This report fulfills the 6 month report requirements of section 104(m) of the
Federal Water Pollution Control Act Amendments of 1972. It covers quantities
of waste oil separated, physical and chemical characteristics of waste oils,
present methods of collection and disposal, biological effects of waste oil,
and economic and legal aspects of waste oil policy. The report includes little
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information on long-term biological effects, economics of reprocessing,
disposition of home users, research efforts by other federal agencies, or
institutional/policy factors.
U.S. Executive Office of the President, "Petroleum Refineries," The Economic
Impact of Pollution Control. Council on Environmental Quality, Department
of Commerce, Environmental Protection Agency, March 1972, pp. 263-73.
U.S. Federal Trade Commission, In Re Double Eagle Refining Co.. 54 FTC 1035
(1958).
In its original early decisions, the FTC ruled that Double Eagle and other
lube oil re-refiners must 1) not represent, contrary to fact, that Its lube
oil is refined other than from previously used oil and 2) not advertise Its
products without disclosing prior use of the oil to the purchaser, Including
"a clear and conspicuous statement to that effect on the container."
U.S. Federal Trade Commission, In Re Double Eagle Lubricants. 66 FTC 1039 (1964).
In its later decisions on labeling of re-refined lube oil, the FTC argued that
disclosure of prior use had to be on the "front panel or front panels of the
container." The decision imposed no new restrictions on the use of the word,
"re-refined". The FTC claimed that its decisions were made without regard to
the quality of the respondents' lube oil product.
U.S. Federal Trade Commission, a letter of Congressman Charles A. Vanik regarding
waste oil, by Miles W. K1rkpatr1ck, Chairman, August 19, 1971.
Chairman Kirkpatrick explains that the FTC's Trade Regulation Rule on re-refined
lube oil (q.v.) is not premised on the quality of such oil, but on the public's
preference for virgin oil. However, he proceeds to acknowledge that, based on
many submissions, the FTC believes re-refined oil to be of inferior quality and
that the labeling rule would be reconsidered 1f valid evidence showed that it
could compete in quality with virgin oil.
U.S. Federal Trade Commission, Trade Regulation Rule Relating Deceptive Advertising
and Labeling of Previously Used Lubricating Oil, effective September 1, 1965.
The FTC labeling rule repeated the regulation announced in In^Re Double Eagle
Lubricants (q.v.) but also required clear disclosure of "Previous Use" and
restricted the use of the word "re-refined". The Trade Regulation Rule can be
found at 16 CFR 406.
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U.S. Statutes, 89th, 1st Session, Excise Tax Reduction Act of 1965. Vol. 79,
Public Law 89-44, June 21, 1965, p. I3b tK
Title II, Manufacturers Excise Tax, Imposes a s1x-cent-a-gallon tax on lube
oils (sec. 4091 of the Internal Revenue Code of 1954) and then sets up a
tax refund procedure for lube oil used for off-highway purposes (sec. 6424).
The law's provisions and associated Treasury regulations can be found at 26
CFR 48.4091 and 26 CFR 48.4218.
"Used Lube Oil... oh just throw it away," U.S. 011 Week. January 1971, p. 3.
Some new information is added to a review of points made in Bernard
and the API Final Report (q.v.). A New York City survey of service station
waste oil disposal is discussed. The Wisconsin Petroleum Association reports
that waste oils foul sewage treatment plants. The Nebraska Petroleum Market-
ers Association reports that a survey of state jobbers shows collection costs
up to 10$ a gallon and one third the jobbers supplying fanners who use waste
oil for dust control, hog oiling, tank heaters, and weed control.
"Used Lube Oil Present a Slippery Problem," Rodale's Environmental Action
Bulletin. Vol. 9, No. 6, April 17, 1971.
Points made in "Used Lube Oil", U.S. Oil Week, (q.v.) are repeated. In addition,
the article suggests that readers patronize only service stations with adequate
waste oil collection and that they write to the API, the APR, and the FTC about
the need for better ways to dispose of waste oil.
Vanlk, Charles A., "Natural Oil Recycling Act," Congressional Record, June 14,
1972, E6208-E6210.
Vanik comments on his bill, HR 15502, introduced the same day. He discusses
waste oil generation, water pollution, air pollution, mass marketing of auto
lube oil, and impediments to economic recycling operations. Finally, he
describes the provisions of his bill.
Vanlk, Charles A., "011 Recycling," Congressional Record. December 2, 1971,
E 12927-E12929.
Vanik makes points repeated in later Congressional Record remarks. He proposes
to allow re-refiners to label their product "recycled oil" and introduces a
bill, HR 12015, which would make re-refiners eligible for the off-highway six-
cents-a-gallon tax refund.
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Vanik, Charles A. "Oil Recycling Act of 1973". Congressional Record. March 14,
1973, E 1543-E 1545.
Vanik comments upon his bill, HR 5902, introduced March 20, 1973. He repeats
many of the points he made upon the introduction of an identical bill 1n 1972,
but drops the description of the bill's provisions and adds some data on waste
oil generation and on fuel oil shortages.
Villanova University, Final Progress Report on Water Pollution Control Demonstra-
tion Project Grant No. WPD-17'
Control Administration, 1968.
tion Project Grant No. WPD-174-01-67, submitted to Federal Water Pollution
A re-refining process using dehydration and caustic treating is described.
The process uses less acid than traditional methods and reduces acid sludge
disposal problems. There is, however, some question about the economic feasi-
bility of the process.
Wadt, W.F., The Outlook for Lubricating 011s, Enjay Chemical Co., March 1971.
Walter C. McCrone Associates, Inc. Pounds of Combustion Products Per 10,000
Gallons of Draining^, Chicago, 111., July 15, 1970.•
A chart frequently circulated by the Association of Petroleum Re-Refiners shows
that 1,000 pounds of metal oxide wastes are released when 10,000 gallons of
waste motor oils are burned. Fourteen different metals were found in the resi-
due, a large portion of which would normally occur as air pollution.
"What Price Lube-Oil Reclaiming?" Oil and Gas Journal. April 26, 1954.
"What to Do with Drained Oil," National Petroleum News, November 1970, p. 6.
API's Final Report of the Task Force on Used Oil Disposal (q.v.) is summarized.
Wiley, Morris A. ."Environmental Aspects of the Oil Spill Problem" Paper No. 1661,
Environmental Protection Department, Texaco, Inc., June 1972.
Wisconsin Department of Natural Resources, Drain Oil Disposal in Wisconsin.
Technical Bulletin No. 63, Madison, Wisconsin, 1973.
A survey of service station drain oil disposal was carried out by petroleum
inspectors of the Department of Resources in 1971. The results indicate that
service stations handle from 55 to 65 percent of the oil drained from cnankcases
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in Wisconsin. Of this, 97.6 percent is reused, and 2.4 percent wasted.
Worthington, VernonT., Despite Talk of Recycling. Government Still Discriminates
Against Recycling of Lubricating Oil..., Association of Petroleum Re-Refiners,
or
The memorandum emphatically proclaims the APR's complaints to the President,
Congress, FTC, and pollution control agencies. It cites figures and statements
on environmental damage, economic obstacles, and the pollution dangers of burning.
An adequate profit margin is requested but no particular program of changes is
advocated. Quoted in toto in U.S. Congress, Economics of Recycling Waste Materi-
.flli, (q.v.).
Zeldin, Marvin, "Audubon Black Paper #1 - Oil Pollution," Audubon Magazine, May
1971.
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