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If your business produces used oil, the federal requirements in 40 CFR Part 279, Subpart C are fairly simple.
Store the oil in tanks or containers that are in good condition. Label them "Used Oil." Stop, contain and clean up any leaks or spills. When the oil leaves your property, use a transporter with an EPA identification numberA number EPA or the state agency assigns to a facility that handles regulated waste. Used oil transporters must have one. Most generators do not..
Here is what those rules mean in practice.
Key takeaways
- Store used oil only in tanks or containers that are in good condition.
- Label every container and aboveground tank "Used Oil."
- If it leaks or spills, stop it, contain it, clean it up and fix the container before using it again.
- Keep solvents, brake cleaner and parts washer fluid out of the tank.
- You do not need an EPA identification number just to generate used oil. Your transporter does.
Who counts as a used oil generator?
A used oil generator is a business whose operations produce used oil. That can include an auto repair shop, dealership, fleet yard, manufacturing plant or farm.
Used oil includes petroleum or synthetic oil that has been used and contaminated through normal use, such as engine oil, hydraulic fluid, gear oil and transmission fluid.
People who change oil in their own vehicles at home are excluded from these business rules. Farms that generate an average of 25 gallons or less per month are also excluded.
For your business: A small repair shop and a large industrial facility are both used oil generators. The same basic federal requirements apply.
Where you can store used oil
Used oil must be stored in tanks or containers. Open pits, lagoons and waste piles are not allowed.
Containers and aboveground tanks must be in good condition, without severe rust, structural damage or visible leaks.
Place tanks in appropriate secondary containment areas as required by local, state or federal regulations.
Underground tanks are subject to separate underground storage tank requirements. Facilities that store larger quantities of oil may also be subject to federal spill prevention requirements under 40 CFR Part 112The federal Spill Prevention, Control and Countermeasure rule for facilities that store larger quantities of oil..
For your business: Use sound drums, totes or tanks and check them regularly for rust, damage or leaks.
Used oil storage checklist
One page to keep by the tank: storage, labels, spills, pickups, plus a monthly check log.
Download the checklistLabel every tank and container "Used Oil"
Every container and aboveground tank holding used oil must be clearly labeled "Used Oil."
For an underground tank, the fill pipe must carry the label.
The required wording is "Used Oil," not "Waste Oil." The label can be a stencil, sticker or other durable marking as long as it is clear and remains readable.
Stencil, sticker or any durable marking, as long as it is clear and stays readable.
For your business: Label every used oil container, including smaller containers used around the shop.
What to do if used oil leaks or spills
If a tank or container leaks, the federal rules require you to:
- Stop the release.
- Contain the oil.
- Clean up the oil and contaminated materials.
- Repair or replace the leaking tank or container before using it again.
Oil recovered during cleanup is still managed as used oil.
For your business: Keep spill supplies near your used oil storage area. UES can also collect spent absorbents generated during cleanup.
Keep hazardous waste out of your used oil
Mixing used oil with hazardous waste can change how the entire mixture must be managed.
Used oil containing more than 1,000 parts per million of total halogensChlorine, bromine, fluorine and iodine compounds, which can come from solvents and brake cleaner. Over 1,000 parts per million, the oil is presumed to have been mixed with certain hazardous wastes. is presumed to have been mixed with certain hazardous wastes unless that presumption can be rebutted.
Total halogens in used oil
Keep solvents, brake cleaner, parts washer fluid and other chemicals out of your used oil tank.
For your business: Use separate, clearly marked containers for used oil, solvents and other waste streams.
UES drivers check each load for potential hazardous waste or non-conforming material before it goes on the truck.
What goes in the used oil tank: shop sign
A one-page sign to print and post by the tank.
Download the signWhat federal used oil rules do not require
- No EPA identification number just for generating used oil. Transporters need one. Most generators do not.
- No hazardous waste manifest for ordinary used oil. The transporter creates a pickup record instead.
- No federal limit on how long a business can store used oil. State requirements may add conditions.
- Burning your own used oil in an on-site space heater may be allowed. Federal rules allow certain generators to burn qualifying used oil in heaters rated at 0.5 million Btu per hour or less that vent outside.
Getting used oil off site
Used oil generally leaves your property with a transporter that has an EPA identification number.
A business may transport up to 55 gallons at a time in its own vehicle, or an employee's vehicle, to an approved collection center or another site owned by the same company.
For larger quantities, use a qualified used oil transporter.
With a used oil transporter
One that has an EPA identification number. For larger quantities, this is the route.
In your own vehicle, or an employee's vehicle, to an approved collection center or another site owned by the same company.
UES holds EPA identification numbers for its collection facilities and the state registrations required for the areas we serve.
Questions businesses ask
Does my business need an EPA identification number to generate used oil?
Under the federal rules, no. Transporters need one. Most generators do not. Some states add their own requirements, such as Alabama for businesses generating more than 25 gallons a month on average.
Can the label say "Waste Oil"?
No. The required wording is "Used Oil." A stencil, sticker or other durable marking works as long as it is clear and remains readable.
Can my business haul its own used oil?
Up to 55 gallons at a time in its own vehicle, or an employee's vehicle, to an approved collection center or another site owned by the same company. For larger quantities, use a qualified used oil transporter.
Written by Universal Environmental Services. Reviewed by Scott Eddings, VP of Operations. Checked against 40 CFR Part 279 on October 6, 2026.
Sources: 40 CFR 279.1, 279.10, 279.12 and 279.20 to 279.24 · EPA, Managing Used Oil: Answers to Frequent Questions for Businesses · 40 CFR 261.4(b)(13)
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