KRS 224.50-545: Findings -- Definitions -- Prohibitions -- Policy to encourage reuse --

Posting notice of collection sites -- Representation of used oil as new oil --

Registration of used oil collectors and recyclers.

(1) It is the finding of the General Assembly that almost nineteen (19) million gallons

of used automotive and industrial oil are generated each year in the state; that used

oil is a valuable petroleum resource which can be recycled; and that, in spite of this

potential for recycling, significant quan tities of used oil are wastefully disposed of

or improperly used by means which pollute the water, land, and air and endanger

the public health and welfare; and that the inflationary impact of increased oil costs

and an accompanying shortage of lubrication oil necessitate that waste oil be

recycled.

(2) As used in this section:

(a) "Used oil" means a petroleum based or synthetic oil such as an engine

lubricant, engine oil, motor oil, or lubricating oil for use in an internal

combustion engine, or a lubrican t for motor transmissions, gears, or axles

which through use, storage or handling has become unsuitable for its original

purpose due to the presence of impurities or loss of original properties.

(b) "Recycle" means to prepare used oil as a petroleum produc t or petroleum

product substitute by refining, rerefining, reclaiming, reprocessing, or other

means or to use used oil in a manner that substitutes for a petroleum product

or petroleum product substitute made from new oil, provided that the

preparation or use is operationally safe, environmentally sound, and complies

with all laws and regulations.

(c) "Rerefined oil" means used oil which is rerefined to remove the physical and

chemical contaminants acquired through use which by itself or when blended

with n ew oil or additives, is substantially identical or superior to new oil

intended for the same purposes, as specified by rules prescribed by the Federal

Trade Commission under Section 383(d)(1) of the Energy Policy and

Conservation Act (P.L. 94-163).

(3) No person shall collect, transport, transfer, store, recycle, use, or dispose of used oil

in any manner which endangers the public health or welfare or violates any law or

regulation.

(4) No person shall dispose of used oil by discharge into sewers, drainage systems,

surface or groundwaters, or incineration other than for energy generating purposes.

(5) The General Assembly declares that used oil shall be collected and recycled to the

maximum extent possible by means which are economically feasible and

environmentally sound in order to conserve irreplaceable petroleum resources,

preserve and enhance the quality of natural and human environments, and protect

public health and welfare.

(6) All officials of this state and any of its agencies or political subdivisi ons shall

encourage and, to the extent possible, require the procurement and purchase of

recycled oil products represented as substantially equivalent to products made from

new oil in accordance with this section whenever such products are available at

prices competitive with those of new oil produced for the same purposes.

(7) The cabinet shall encourage the establishment of voluntary used oil collection and

recycling programs and provide technical assistance to persons organizing such

programs.

(8) The cabinet shall establish a list of used oil collectors and the specific counties or

areas within the Commonwealth in which each collector has by written agreement

or contract with the cabinet agreed to serve. The cabinet shall make arrangements

with each waste oil collector for routing schedules to assure that collection tanks are

regularly served by a used oil collector.

(9) The cabinet shall notify all persons who sell automotive or industrial oils to

consumers in an amount in excess of five hundred (500) gallons per year of the used

oil collector or collectors who have agreed to serve that area and the proposed

collection and routing schedules.

(10) Upon notification that arrangements have been made to collect waste oil in that

area, any person who sells aut omotive or industrial oils to consumers in an amount

in excess of five hundred (500) gallons per year shall post at the point of purchase

durable and legible signs not less than eight and one -half (8 1/2) by eleven (11)

inches in size detailing the locations of conveniently located collection facilities.

(11) A person may represent any product made in whole or in part from used oil to be

substantially equivalent to a product made from new oil for a particular end use if

the product conforms fully with the s pecifications applicable to that product made

from new oil or if substantial equivalency has been determined in accordance with

rules prescribed by the Federal Trade Commission under Section 383(d)(1) of the

Energy Policy and Conservation Act (P.L. 94 -163). Otherwise, the product must be

represented as made from previously used oil.

(12) The cabinet shall encourage the use of labeling for oil containers to inform the user

of the importance of proper collection and disposal of used oil.

(13) No person, except a person collecting solely from sources owned and operated by

that person, shall transport more than five hundred (500) gallons of used oil

annually over public highways or maintain any storage facility that receives more

than ten thousand (10,000) gallons of used oil annually without first registering as a

used oil collector with the cabinet. A registered used oil collector shall:

(a) Transfer used oil only to another registered used oil collector, a recycler

registered with the cabinet, or a person outside the state;

(b) Provide a receipt to any person to whom used oil is transferred; maintain a

complete record of all such transactions, documented by reproducible receipts,

for two (2) years; and make available to the cabinet, upon request , all records

and copies of receipts for the purpose of review and audit;

(c) Submit an annual report to the cabinet on its activities during the calendar year

based on the records kept in accordance with this section. The report shall

state the quantities of used oil possessed at the beginning and end of the

reporting period, the total amount collected, and the amounts transferred

during the reporting period. The amounts transferred shall be itemized as to

used oil collectors, used oil recyclers, and by th e state or foreign country for

those persons outside the state.

(14) No person, except a person recycling solely from sources owned and operated by

that person, shall recycle more than five thousand (5,000) gallons of used oil

annually without first registering as a used oil recycler with the cabinet. A registered

used oil recycler shall:

(a) Provide a receipt to any person from whom used oil is received; maintain a

complete record of all such transactions, documented by reproducible receipts,

for two (2) y ears; maintain records on the quantities of used oil recycled; and

make available to the cabinet, upon request, all records and copies of receipts

for the purpose of review and audit;

(b) Submit an annual report to the cabinet on its activities during the calendar year

based upon the records kept in accordance with this section. The report shall

state the quantities of used oil possessed at the beginning and end of the

reporting period, the total amount received, and the amounts recycled during

the reportin g period. The amounts recycled shall be itemized as follows:

prepared for reuse as a petroleum product; consumed in the process of

preparing for reuse, including wastes generated; and other uses specifying

each type of use.