Used Oil Re-refi ning Study to Address Energy Policy Act of 2005

121 Pages·2006·1.34 MB·English

U.S. Department of Energy • Offi ce of Fossil Energy
Used Oil Re-refi ning Study to Address
Energy Policy Act of 2005
Section 1838
July 2006

Used Oil Re-refining Study to Address
Energy Policy Act of 2005
Section 1838

Office of Oil and Natural Gas
Office of Fossil Energy
U.S. Department of Energy

Used Oil Re-refining Study to Address Energy Policy Act of 2005 Section 1838

Table of Contents
1 Executive Summary...........................................................................................1-1
1.1 Methodology..............................................................................................1-1
1.2 Executive Summary Roadmap..................................................................1-1
1.3 Worldwide Lube Oil Demand Perspective and Used Oil Management
Practices....................................................................................................1-2
1.4 Stakeholders in the U.S. Used Oil Business.............................................1-3
1.5 Energy and Environmental Impacts...........................................................1-4
1.6 Existing Federal and State Regulations Dealing with Used Oils...............1-5
1.7 Reusing a Valuable Resource...................................................................1-6
1.8 Specific Steps That Could be Taken to Improve Collections and
Increase Re-refining and Other Beneficial Re-use of Used Oils...............1-7
1.8.1 Utilize Information Exchange Processes to Encourage Progress
on Used Oil Management and Recycling..................................................1-7
1.8.2 Encourage States to Adopt Used Oil Management Standards .......1-8
1.8.3 Space Heaters.................................................................................1-8
1.9 Comments on Emerging Trends................................................................1-8
1.9.1 Impacts of Bio-Based Lube Products...............................................1-8
1.9.2 Possible Limitations on the Re-use of Re-refined Oils in Motor
Oil Blends..................................................................................................1-9
2 Worldwide Lube Oil Demand..............................................................................2-1
3 Worldwide Used Oil Management Practices......................................................3-1
3.1 Observations on Worldwide Used Oil Programs.......................................3-2
4 Used Oil Business Stakeholders........................................................................4-1
4.1 DIY and DIFM Consumers........................................................................4-1
4.2 Collectors / Transporters...........................................................................4-2
4.3 Used Oil Processors..................................................................................4-2
4.4 Used Oil Re-refiners..................................................................................4-2
4.5 Used Oil Burners.......................................................................................4-4
4.6 Appendices................................................................................................4-4
5 Analysis of Used Oil Disposition.........................................................................5-1
5.1 DIY / DIFM Volume Trends Update...........................................................5-2
6 Government Role in Used Oil Management.......................................................6-1
6.1 Federal Programs......................................................................................6-1
6.1.1 Federal Environmental Regulations Dealing With Used Oil............6-1
6.1.2 Executive Orders Applicable to Executive Branch Agencies...........6-2
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Used Oil Re-refining Study to Address Energy Policy Act of 2005 Section 1838

6.2 State Programs .........................................................................................6-3
6.2.1 Elements of State Programs............................................................6-3
6.2.2 State Legislation..............................................................................6-4
6.2.3 Superfund Liability...........................................................................6-4
7 Energy and Environmental Impacts of Re-Refining Used Oils...........................7-1
7.1 Supplemental References.........................................................................7-1
7.2 Energy Impacts.........................................................................................7-2
7.2.1 Key Characteristics of Petroleum Base Oils....................................7-2
7.2.2 System Analysis..............................................................................7-4
7.2.3 Impact of Synthetics........................................................................7-5
7.2.4 Scoping Analysis of Current Market Value of Base Oils..................7-6
7.3 Environmental Impacts..............................................................................7-7
7.3.1 2004 California EPA/University of California (Berkeley) Study........7-9
7.3.2 2001 Sofres Report.......................................................................7-11
7.3.3 February 2005 IFEU Study............................................................7-12
7.3.4 Caution in Translating Results from Europe to the United States.7-13
7.3.5 1995 Entropy Study.......................................................................7-14
7.3.6 Summary.......................................................................................7-14
7.4 Space Heaters.........................................................................................7-15
7.4.1 Vermont Used Oil Study................................................................7-17
7.5 Source Reduction......................................................................................7-17
8 Specific Steps That Could be Taken to Improve Collections and
Increase Re-refining and Other Beneficial Re-use of Used Oils........................8-1
9 Appendix ..........................................................................................................9-1
9.1 Key Stakeholders Involved with Used Oil Management in the
United States ............................................................................................9-1
9.1.1 Generators......................................................................................9-3
9.1.2 DIY Oil Change Group ....................................................................9-3
9.1.3 DIFM Oil Change Group..................................................................9-3
9.1.4 Collectors / Transporters.................................................................9-5
9.1.5 Used Oil Processors........................................................................9-6
9.1.6 Used Oil Re-refiners & Re-refining Economics...............................9-7
9.1.7 Used Oil Burners...........................................................................9-11
9.1.8 Simplified Flow Schematic.............................................................9-11
9.1.9 Oil Consumed in Operation...........................................................9-13
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Used Oil Re-refining Study to Address Energy Policy Act of 2005 Section 1838

9.1.10 Characteristics of Used Oils........................................................9-13
9.2 Processing Technology...........................................................................9-14
9.3 Used Oils Re-refining and Processing Plants..........................................9-17
9.4 European Used Oil Management Statistics.............................................9-18
9.5 Automotive Oil Change Association Green Recycler Program...............9-21
9.6 Executive Orders Dealing with Used Oils................................................9-22
9.6.1 RCRA 6002...................................................................................9-22
9.6.2 Executive Order 13101..................................................................9-28
9.6.3 Executive Order 13149..................................................................9-40
9.7 Example of State Used Oil Management Legislation..............................9-45
9.8 Highlights of Key Federal Statutes and Regulations that Relate to
Management of Used Oil.........................................................................9-58
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Used Oil Re-refining Study to Address Energy Policy Act of 2005 Section 1838

List of Tables
Table 1: 2002 Total Lubricants Demand by Region................................................2-1
Table 2: U.S. Lube Oil Demand by Type.................................................................2-2
Table 3: Features of Used Oil Management Programs in Selected Countries........3-2
Table 4: Used Oil Disposition (1995 Data)..............................................................5-1
Table 5: Used Oil Combustion Mechanisms...........................................................5-2
Table 6: Improperly Disposed of Used Oil Volumes................................................5-3
Table 7: Energy Savings for Re-refining vs. Burning of Used Oils..........................7-5
Table 8: Market Value of Base Oils and Petroleum Products.................................7-6
Table 9: Listing of Common Additives in Used Oils.................................................7-8
Table 10: Environmental Impact Characteristics for Used Oil Re-use Options.........7-9
Table 11: Ratios of Impact Characteristics for Used Oil Combustion Compared
to Re-refining ..........................................................................................7-10
Table 12: Energy Savings for Re-refining vs. Burning of Used Oils........................7-16
Table 13: Used Oil / Re-refining Stakeholders Meeting Attendees/Participants.......9-2
Table 14: Sales of Motor Oils: DIY vs. DIFM Trends.................................................9-4
Table 15: Re-refining Plant Investment Cost Range.................................................9-9
Table 16: Re-refining Economics ...........................................................................9-10
Table 17: Used Oil Re-refining and Processing Plants ..........................................9-17
Table 18: European Waste Oil Collection Statistics by Country..............................9-18
Table 19: European Used Oil Re-refining/Processing Operational Name Plate
Capacity...................................................................................................9-19
Table 20: European Standard Base Oil Qualities: Virgin vs. Re-refined Stocks.....9-20
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Used Oil Re-refining Study to Address Energy Policy Act of 2005 Section 1838

List of Figures
Figure 1: Total Reported Sales of U.S. Lubricants 1997–2004................................2-2

Figure 2: Relationship Between Crude and Base Oil Prices..................................9-10
Figure 3: Used Oil Flow Diagram............................................................................9-12
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Used Oil Re-refining Study to Address Energy Policy Act of 2005 Section 1838

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