Used Oil Management and Beneficial Reuse Options to Address Section 1: Energy Savings from Lubricating Oil Public Law 115-345 Report to Congress December 2020 United States Department of Energy Washington, DC 20585 Department of Energy | December 2020 Disclaimer This document was prepared as an account of work sponsored by the United States Government. While this document is believed to contain correct information, neither the United States Government nor any agency thereof, nor any of their contractors or subcontractors, nor any of their employees, makes any warranty, express or implied, or assumes any legal responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by its trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof, or its contractors or subcontractors. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof, or its contractors or subcontractors. Used Oil Management and Beneficial Reuse Options | Page ii Message from the Secretary This Congressional Report, pursuant to Public Law 115-345, updates the Used Oil Re-refining Update of the 2006 Used Oil Re-refining Study to Address Energy Policy Act of 2005, Section 1838, and addresses efforts underway at the U.S. Department of Energy, in cooperation with the U.S. Environmental Protection Agency and the Director of the Office of Management and Budget. This report also provides a coordinated Federal strategy to increase the beneficial reuse of used lubricating oil. Pursuant to statutory requirements, this report is being provided to the following Members of Congress: • The Honorable Michael R. Pence President of the Senate • The Honorable Nancy Pelosi Speaker of the House of Representatives • The Honorable Lisa Murkowski Chairman, Senate Committee on Energy and Natural Resources • The Honorable Joe Manchin Ranking Member, Senate Committee on Energy and Natural Resources • The Honorable Eddie Bernice Johnson Chairwoman, House Committee on Science, Space and Technology • The Honorable Frank Lucas Ranking Member, House Committee on Science, Space and Technology • The Honorable Frank Pallone Chairman, House Committee on Energy and Commerce • The Honorable Greg Walden Ranking Member, House Committee on Energy and Commerce • The Honorable Richard Shelby Chairman, Senate Committee on Appropriations • The Honorable Patrick Leahy Vice Chairman, Senate Committee on Appropriations • The Honorable Lamar Alexander Chairman, Subcommittee on Energy and Water Development Senate Committee on Appropriations • The Honorable Dianne Feinstein Ranking Member, Subcommittee on Energy and Water Development Senate Committee on Appropriations • The Honorable Nita M. Lowey Chairwoman, House Committee on Appropriations • The Honorable Kay Granger Ranking Member, House Committee on Appropriations • The Honorable Marcy Kaptur Chairwoman, Subcommittee on Energy and Water Development, and Related Agencies House Committee on Appropriations • The Honorable Mike Simpson Ranking Member, Subcommittee on Energy and Water Development, and Related Agencies House Committee on Appropriations If you have any questions or need additional information, please contact Mr. Shawn Affolter, Deputy Assistant Secretary for Senate Affairs or Mr. Christopher J. Morris, Deputy Assistant Secretary for House Affairs, Office of Congressional and Intergovernmental Affairs, at (202) 586-5450, or Ms. Katie Donley, Deputy Director of External Coordination, Office of the Chief Financial Officer, at (202) 586-0176. Sincerely, Dan Brouillette Department of Energy | December 2020 List of Acronyms ACC American Chemistry Council AEO2019 Annual Energy Outlook 2019 AOCA Automotive Oil Change Association API American Petroleum Institute ASTM American Society for Testing and Materials ATIEL Association Technique de l'Industrie Européenne des Lubrifiants Bbl Barrel BOD Biological Oxygen Demand Btu British Thermal Unit CAA Clean Air Act CAFE Corporate Average Fuel Economy CERCLA Comprehensive Environmental Response, Compensation, and Liability Act CFR Code of Federal Regulations CISWI Commercial and Industrial Solid Waste Incineration CO Carbon Monoxide CONOU Consorzio Nazionale per la Gestione CPG Comprehensive Procurement Guideline CWT Centralized Waste Treatment DIFM Do-It-For-Me DIY Do-It-Yourself DOE U.S. Department of Energy DOT U.S. Department of Transportation EHC Environmental Handling Charge EIA U.S. Energy Information Administration EISA Energy Independence and Security Act EO Executive Order EPA U.S. Environmental Protection Agency EPR Extended Producer Responsibility EU European Union EV Electric Vehicle GEIR Groupement Européen de l’Industrie de la Régénération GWP Global Warming Potential HAP Hazardous Air Pollutants H.R. House Resolution HSFO High Sulfur Fuel Oil IC Internal Combustion IFEU Institut für Energie- und Umweltforschung GmbH IMO International Marine Organization ISO International Organization for Standardization LCA Life Cycle Analysis Used Oil Management and Beneficial Reuse Options | Page v MARPOL International Convention for the Prevention of Pollution from Ships, 1973, 73/78 as modified by the Protocol of 1978 (MARPOL: Marine Pollution) MBPD Thousand Barrels Per Day MDO Marine Diesel Oil MJ Megajoule MM Million MMBtu Million British Thermal Unit MMG Million Gallons MMGPY Million Gallons Per Year MPG Miles Per Gallon NESHAP National Emission Standards for Hazardous Air Pollutants NGO Non-Governmental Organization NHx Reduced Inorganic Nitrogen NHTSA National Highway Traffic and Safety Administration NOLN National Oil Lube News NORA National Oil Recyclers Association NOx Nitrous Oxides NREL National Renewable Energy Laboratory NUOMAAC National Used Oil Material and Antifreeze Advisory Council OEM Original Equipment Manufacturer OPEC Organization of the Petroleum Exporting Countries OSWRO Off-site Waste Recovery Operations P.L. Public Law PCB Polychlorinated Biphenyl PFO Processed Fuel Oil PM Particulate Matter PPM Parts Per Million RCRA Resource Conservation and Recovery Act RES Rock Energy Systems RFO Recycled Fuel Oil RMAN Recovered Materials Advisory Notice RRBO Re-refined Base Oil RRF Resource Recovery Facility SAE Society of Automotive Engineers SECA Sulfur Emission Control Area SO2 Sulfur Dioxide SPCC Spill Prevention Control and Countermeasures SSDE Service Station Dealer Exemption SUV Sport Utility Vehicle Tcf Trillion Cubic Feet TSCA Toxic Substances Control Act UAE United Arab Emirates UEIL Union of the European Lubricants Industry UK United Kingdom UL Underwriters Laboratories UMO Used Motor Oil U.S. United States UOMS Used Oil Management Standards UORC Used Oil Refining Coalition VGO Vacuum Gas Oil VMT Vehicle Miles Traveled WFD Waste Framework Directive wt. Weight WTI West Texas Intermediate Department of Energy | December 2020 Executive Summary On December 21, 2018, Congress approved Public Law (P.L.) 115-345 directing the Secretary of Energy, in cooperation with the Administrator of the U.S. Environmental Protection Agency (EPA) and the Director of the Office of Management and Budget (OMB), to review and update a report on the energy and environmental benefits of the re-refining of used lubricating oil that had been prepared pursuant to Section 1838 of the Energy Policy Act of 2005. That report,1 titled “Used Oil Re-refining Study to Address Energy Policy Act of 2005, Section 1838,” dated July 2006, was “a study of the energy and environmental benefits of the re-refining of used lubricating oil… including recommendations of specific steps that can be taken to improve collections of used lubricating oil and increase re-refining and other beneficial re-use of such oil.” P.L. 115-345 directed the U.S. Department of Energy (DOE) to consult with relevant Federal, State and local agencies and affected industry and stakeholder groups, to update data that was used in preparing the 2006 report, and prepare and submit to Congress a coordinated Federal strategy to increase the beneficial reuse of used lubricating oil that is consistent with national policy as established pursuant to Section 2 of the Used Oil Recycling Act of 1980 (P.L. 96-463). Further, P.L. 115-345 stipulates that the strategy was to address measures needed to (a) increase the responsible collection of used oil, (b) disseminate public information concerning sustainable reuse options for used oil, and (c) promote sustainable reuse of used oil by Federal agencies, recipients of Federal grant funds, entities contracting with the Federal Government and the general public. This document is the updated report prepared by DOE in response to P.L. 115-345. To gather the information needed to prepare this document, DOE met on multiple occasions with representatives of key stakeholder groups within the used oil sector to gather input on the status of the industry. In addition, DOE held a public meeting on October 16, 2019, at DOE offices in Washington, DC, to engage a wider variety of stakeholders and gather additional input (see Appendix H for a list of attendees). The meeting included 73 individuals from more than 50 organizations and companies in attendance either in-person or via WebEx. The information gathered, together