SEPA
                  Si«t«*
               Environmental Protection
              O«'C« of
              Solid
                                  R«toon««
DIRECTIVE NUMBER: 9^90.00-2
TITLE: Used Oil Recycling Act of 1980 (P.L. 96-1*63)
     (PIG-81-5)
                APPROVAL DATE: ii-H»-8o
                EFFECTIVE DATE: ii-iU-8o
                ORIGINATING OFFICE: Office of Solid Waste
                II FINAL
                D DRAFT
                  STATUS:
             t  J
    A- Pending OMB approval
[  ]  B- Pending AA-OSWER approval
[  ]  C- For review 4/or comment
                             [  ]  D- In development or circulating
                REFERENCE (other documenti):       headquarters
'E    DIRECTIVE    DIRECTIVE    D

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                            unnco oUtcs environments! Protection Aoency
                                  Washington. DC 20460
                 QSWER Directive Initiation Request
                                   1. Directive Number
                                     91*90.00-2
                                  2. Originator Information
      Name of Contact Person
       James Michael
     Mail Code
     WH-563
Office
     osw
Telephone Code
(202) 382-2231
      3. Title
       Used Oil Recycling Act  of 1980 (P.L. 96-1*63)  (PIG-Sl-5)
      4. Summary of Directive (include brief statement of purpose)
       Memo answers the following':  How will the Used Oil Recycling Act of 1980
       (P.L. 96-1*63) affect the Subtitle D State solid waste management plans?
      5. Keywords
                   plan/Used Qil
      6a. Does This Directive Supersede Previous Directive(s)?
      b. Does It Supplement Previous Directive(s)?
                                            No
                                          X  No
                      Yes   What directive (number, title)
                      Yes   'What directive (number, title)
      7. Draft Level
          A - Signed by AA/DAA
8 - Signed by Office Director
       C - For Review & Comment
         D - In Development
8. Document to be distributed to States by Headquarters?


Yes
X

No
This Request Meets OSWER Directives System Format Standards.
9. Signature of Lead Office Directives Coordinator
10. Name and Title of Approving Official
Steffen Plehn, Deputy Assistant
Administrator, Solid Waste
Date
Date
ll/ll*/8o
     EPA Form 1315-17 (Rev. 5-87) Previous editions are obsolete.
   OSWER           OSWER               OSWER               O
VE    DIRECTIVE         DIRECTIVE        DIRECTIVE

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                                                     PIC 81  5
             UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                        WASHINGTON, D.C. 20460
                              CV ' : :;>=Q              PIG-81-5

MEMORANDUM

SUBJECT:  Used Oil  Recycling Act of 1980  (P.L. 96-^63)
FROM:
          Steffen W. Plehn
          Deputy Assistant
            for Solid Waste
TO:
          R. Sarah Compton
          Deputy Assistant
            for Water Enforcement

          PIGS Addressees
Issue

     How will the Used Oil Recycling Act of 1980 (P.L. 96-U63)
affect the Subtitle D State solid waste management plans?

Discus sion

     On October 15, 1980, the "Used Oil Recycling Act of 1980"
(P.L. 96-U63) was enacted.  This Act, which amends the Solid
Waste Disposal Act, includes provisions which:
        Define the terms "used oil;" "recycled oil;"
        "lubricating oil;" and "re-refined oil."

        Direct the Federal Trade Commission (FTC) to
        remove and prevent any biased labeling require-
        ments on re-refined oil.

        Provide for the establishment of discretionary
        oil recycling programs within the existing State
        solid v&ate management planning process under
        Subtitle D of RCRA.

        Provide for technical assistance to the States
        to address issues regarding oil recycling.

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                               -2-
         Require  the  EPA  to develop standards for the
         recycling  of used oil and to determine vhether used
         oil  is subject to the hazardous vaste requirements
         under Subtitle C of RCRA.

         Require  the  EPA, in cooperation with the Department
         of Energy  (DOE), Federal Trade Commission (FTC),
         and  the  Department of Commerce (DOC), to study the
         environmental concerns and the collection cycle of
         used oil and to analyze the supply and demand in the
         used oil industry.  In addition, the comparison of
         energy savings associated with the re-refining of oil
         and  the  development of policies at the Federal, State
         and  local  levels to encourage the recycling of used
         oil  are  to be addressed.

     Since the passage of the "Used Oil Recycling Act of 1980"
many questions have been raised concerning the impact of this
Act on the Subtitle  C and Subtitle D programs.   The majority of
these questions have been in regard to the discretionary plan
(Subtitle D) provisions relating to recycled oil.  Section U003(b)
provides that any State plan submitted under Subtitle D may in-
clude, at the State's option, provisions to carry out each of
the following:

    "(l)  Encouragement to the maximum extent feasible and
     consistent with the protection of the public health and
     the environment, of the use of recycled oil in all appro-
     priate areas of State and local government.

     (2)  Encouragement of persons contracting with the State
     to use recycled oil to the maximum extent  feasible,  con-
     sistent with protection of the public health and the en-
     vironment •
     (3)
Informing the public of the uses  of  recycled  oil.
          Establishment and implementation of a program (includ-
     ing any necessary licensing of persons and including the
     use, where appropriate, of manifests) to assure  that used
     oil is collected, transported, treated, stored,  reused
     and disposed of, in a manner which does not present a
     hazard^ to the public health or environment."

     Section l*008(f) further provides that the Administrator
may make grants to States, which have a State plan approved
under Section U007, or which have submitted a State plan	
for appToval under such section, where such- plan- includes
the discretionary provisions for recycled oil described above  in
Section 4003(b).  These grants would be for the purpose of assist-
ing the States in carrying out the discretionary provisions but
could not be used for construction or for the acquisition of  land
or equipment.

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                            •   -3-


     Finally, there are authorized to be appropriated $5,000,000
 for  fiscal year  1982 and $5,000,000 for fiscal year 1933.  No
 funds are authorized for fiscal year 198l, and funds for fiscal
 years 1982 and 1983 have.not yet been appropriated.

 Decision

     To obtain approval under  Section 1*007, State plans need not
 include the discretionary provisions of Section 1*003 (b).
 However, to be eligible for possible financial assistance in
 carrying out the discretionary provisions, the State solid
 waste management plan, including the discretionary provisions,
 must be approved under Section 1*007, or must have been submitted
 for approval.

     States considering the submission of a discretionary plan
 for recycled oil must do so in accordance with Section U003(b).
 The discretionary provisions must be incorporated into the State
 solid waste management plan which is to be developed pursuant to
 Section if002(b).  Subpart D of 1*0 CFR Part 256, "Guidelines for
 for Development and Implementation of State Solid Waste Management
 Plans" sets forth additional requirements and recommendations for
 developing and implementing resource conservation and recovery
 programs.  The deadline for submission of State plans for approval
 under Section 1*007 is January 31, 198l.   States may subsequently
 amend their plans' to include these discretionary provisions (See
 UO CFR 256.03).

     Should funds be appropriated for such grants in fiscal year 1982
 or fiscal year 1983, States meeting the eligibility requirements may
apply for financial assistance to carry out the discretionary provision;
We intend to address this  program in the "Guidance for the Develop-
 ment of State Work Programs for Fiscal Year 1982 under the Resource Con-
 servation and Recovery Act  (RCRA)."

     Further questions should be directed to:   Mr. James Michael
 (WH-563), State Programs Branch, State Programs and Resource Re-
 covery Division, Office of  Solid Waste;  telephone (202) 755-91^5.

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