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

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Used Oil Re-Refining Study to Address Energy Policy Act of 2005 Section 1838 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 U.S. Department of Energy i 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 U.S. Department of Energy ii 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 U.S. Department of Energy iii 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
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