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2011 WMDA Legislative Agenda Update

As th e 2011 session nears, your legislative committee will have recently met to plan our legislative agenda. As you read this it is not too late to call the office with your own input and we would welcome hearing from you. Please keep in mind that you are our most valuable asset in Annapolis and we encourage any level of participation in the legislative process. Would you like to have breakfast with a few dealers and your Delegate or Senator? Would you like a personal meeting with your Delegate or Senator and your lobbyist in Annapolis? We can help you – just let us know.

We want to keep you current on a Federal issue that, if it becomes law, will certainly affect anyone in the repair business. The EPA is considering the reclassification of used oil as a “solid waste” which would preclude most large generation facilities from using it as an alternative fuel. It would also halt the use in shop heaters. Given the market disruption this would cause in the entire used oil recycling system, SSDA-AT and many other aftermarket associations are working to convince EPA that this is a mistake. As a Chesapeake Bay-State inhabitant, please take a look at the following Fact Sheet to get a better understanding of what this means.

EPA’s Proposed Solid Waste Rule
EPA is proposing to define all off-specification used oil as a solid waste.  Under the Clean Air Act, solid waste cannot be recycled as fuel; it must be burned in an incinerator.  This rule would devastate the used oil recycling system and would decrease, not increase, the protection of the environment.

Current Used Oil Recycling System
Existing EPA regulations ensure the safe collection and recycling of used oil.  Approximately 780 million gallons of used oil is used as fuel annually in accordance with these regulations.  No problem has been identified with the current recycling system.  

In establishing its current used oil regulations, EPA was careful to avoid creating barriers to recycling.  EPA recognized that if recycling was difficult more used oil would be discarded down the drain or on the ground.  Thus, under current law both on and off-specification used oil can be recycled through use as fuel in boilers, industrial furnaces, and space heaters.  For example, approximately 113 million gallons is used for heating purposes by approximately 100,000 small businesses across the U.S. in used oil fired space heaters. 

Current law includes incentives for persons to collect used oil from do-it-yourself (DIY) oil changers.  One incentive allows both on and off-specification used oil that is collected from households to be used as fuel in space heaters.  This provision allows automotive maintenance facilities to collect DIY oil without incurring the cost of testing it.  Another incentive is an exemption from Superfund liability for service station dealers that collect used oil from the public and send it to recyclers. 

Impact on Used Oil Collection
If off-specification used oil cannot be recycled as fuel, then automotive maintenance facilities will have to test any used oil they collect from the public to determine if it meets specification.  As practical matter, no small business is going to be willing to either incur the cost of testing the oil or of sending any off-specification oil to an incinerator.  As a result, automotive maintenance facilities across the country will stop accepting DIY used oil and much of the used oil that for many years has been safely burned for heat in industrial furnaces, industrial boilers, utility boilers, and space heaters could end up being improperly disposed of on the ground or down the drain.  In addition, service stations will lose their Superfund liability exemption.

Used oil from just one oil change can contaminate 1 million gallons of fresh water – a year’s supply for 50 people.  EPA should be doing all it can to increase the amount of used oil flowing into the legitimate recycling system instead of creating barriers to recycling.

If you would like to discuss this issue in more detail please contact the office.


For further information contact:

Kirk McCauley
Director of Member Relations

301-390-0900 or 1-800-492-0329 ext. 114
email: kmccauley@wmda.net

 



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