In this guide 5 min read
This guide is for businesses that keep used oil on site, such as auto shops, fleet yards, dealerships and plants. Our guide to used oil generator rules covers the federal basics. This one covers how to set up the storage area, how to be ready for a spill, and when a business needs a written spill plan under the federal SPCC rule.
Key takeaways
- Store used oil in tanks or containers in good condition, labeled "Used Oil."
- Keep storage away from floor drains and storm drains, and set drums on a spill pallet or in a drip tray.
- A site needs an SPCC Plan when its aboveground oil storage is more than 1,320 gallons, counting containers of 55 gallons or more, and a spill could reach water.
- New oil, fuel and used oil all count toward the 1,320 gallons.
- Keep a stocked spill kit by the tank and check the storage area every month.
The federal used oil storage rules in short
Under 40 CFR 279.22, a business that generates used oil must:
- Store it only in tanks or containers. Pits, lagoons and open piles are not allowed.
- Keep them in good condition, with no severe rust, no structural damage and no leaks.
- Label them "Used Oil." That applies to every container and aboveground tank, and to the fill pipe of an underground tank.
- Deal with any spill right away. Stop it, contain it, clean it up, and repair or replace a leaking container before you use it again.
The same section points to two other sets of rules. Used oil kept in underground tanks follows the underground storage tank rules in 40 CFR Part 280. And a site that stores enough oil of any kind needs a spill plan under 40 CFR Part 112, known as the SPCC rule. Both are covered below.
Setting up a used oil storage area
The steps below go beyond the federal minimum. They make the rules above easier to meet, and they make pickups faster.
- Pick a spot away from floor drains, storm drains and outside doors. Oil that reaches a drain is much harder to clean up.
- Keep tanks and drums indoors or under a roof when you can. Rain that collects around a tank needs checking for oil before it is drained.
- Set drums and smaller containers on a spill pallet or in a drip tray.
- Keep containers closed except when you are adding oil. A drum funnel with a lid helps.
- Post a sign by the tank that says what goes in and what stays out. Solvents, degreasers and antifreeze stay out of the used oil tank.
- Leave a clear path to the tank or drums, so our driver can reach them with the hose.
What goes in the used oil tank: shop sign
A one-page sign for the wall by your tank. Goes in, keep out, and why it matters.
Download the signSecondary containment for used oil tanks and drums
Secondary containmentA second barrier, such as a berm, dike, double-walled tank or spill pallet, that holds oil if the tank or container leaks. is a second barrier that holds oil if a tank or container leaks. It can be a berm, a curb, a dike, a double-walled tank or a spill pallet.
The federal used oil rules for generators do not set a size for it. The SPCC rule does at the sites it covers. There, the containment around each tank or drum of 55 gallons or more must hold the full capacity of the largest container, plus extra room for rain if it is outdoors (40 CFR 112.8(c)(2)). Some states add their own requirements, so check our guide to state used oil rules.
When a business needs an SPCC Plan
SPCC stands for Spill Prevention, Control, and Countermeasure. The rule covers oil of any kind (40 CFR 112.2), so new motor oil, fuel, hydraulic oil and used oil all count together.
A business needs a written SPCC PlanA written Spill Prevention, Control, and Countermeasure Plan that a site storing enough oil must prepare under 40 CFR Part 112. when both of these are true (40 CFR 112.1):
- Its aboveground oil storage capacity adds up to more than 1,320 gallons. Count only containers that hold 55 gallons or more. Completely buried tanks have a separate limit of 42,000 gallons, and tanks that meet the underground storage tank rules are left out of that total.
- A spill could reach a creek, river, lake or other waters. You decide this from where the site is, including nearby drains and ditches and the slope of the land. Do not count any containment you already have when you decide.
Count the full size of each container, not how much oil is in it today (40 CFR 112.2). Containers under 55 gallons, the fuel tanks that power vehicles and permanently closed tanks are left out of the count (40 CFR 112.1(d)).
Aboveground oil storage capacity
Does it count toward the 1,320 gallons?
Pick an item, then choose where it goes.
Counts
- A 500 gallon used oil tankIt holds oil and is 55 gallons or more.
- A 55 gallon drum of new motor oilNew oil counts the same as used oil.
- A half full 1,000 gallon tankCount the full size of the tank, 1,000 gallons, not what is in it.
- A 275 gallon tote of hydraulic oilTotes of 55 gallons or more count when they hold oil.
Does not count
- A 5 gallon pail of gear oilContainers under 55 gallons are left out.
- The fuel tank on a service truckTanks that power a vehicle are left out.
- A tank that has been permanently closedA tank that is emptied, disconnected, locked and signed as closed is left out.
All sorted.
What an SPCC Plan covers
A plan written for a shop or fleet yard covers these points (40 CFR 112.7 and 112.8):
- Containment. Barriers sized for the tanks and drums, and for the kind of spill that is likely to happen.
- Inspections and records. Tanks and drums checked on a schedule set by industry standards, with signed records kept for three years.
- Training. Staff who handle oil are trained, and get a spill prevention briefing at least once a year.
- A site diagram. A drawing that shows where each oil container is and what it holds, plus a list of who to call after a spill.
- Certification. A Professional Engineer certifies the plan. A site with 10,000 gallons or less of aboveground oil storage and no large spills in the last three years can certify its own plan (40 CFR 112.3(g)). If none of its containers is over 5,000 gallons, it can use the plan template from EPA.
Keep the plan at the site if someone works there at least four hours a day (40 CFR 112.3(e)).
Keeping a spill kit by the tank
A spill kit within reach of the tank lets you follow the federal steps for a spill (40 CFR 279.22(d)): stop it, contain it, clean it up and fix or replace the container. A basic kit for a used oil area holds:
- absorbent pads for drips and small spills;
- absorbent socks to circle a spill and keep it from spreading;
- loose absorbent for floors;
- a drain cover;
- gloves and eye protection;
- a closed container for the used pads and absorbent.
Oil that is cleaned up is still managed as used oil. Keep used absorbents in their own closed container. We can often collect spent absorbents on the same visit as your used oil.
A simple routine for checking used oil storage
Pick a day each month and look at the whole storage area:
- tanks and drums for rust, dents and leaks;
- labels that still read "Used Oil";
- lids and bungs closed;
- containment free of oil and water;
- the spill kit full;
- the tank level, so a pickup is booked before the tank is full.
Used oil storage checklist
One page to keep by the tank: storage, labels, spills, pickups, plus a monthly check log.
Download the checklistWrite down the date and what you found. If your site has an SPCC Plan, the plan sets the inspection schedule, and the signed records are kept for three years (40 CFR 112.7(e)).
If a containment area, sump or oil and water separator collects oily water, our vacuum services pump it out and haul it away. If you are a recurring pickup customer, we can time your pickups to how fast your tank fills.
Request a used oil pickup
Tell us where you are and what you need collected on our used oil pickup page, or find your state on our locations page. You can also call 800.988.7977. We reply the same business day, and no account is needed to ask.
UES locations serve Georgia, Texas, New Jersey, Arizona and 24 more states.
Questions businesses ask
Does one used oil tank mean my business needs an SPCC Plan?
Only if your aboveground oil storage adds up to more than 1,320 gallons, counting every container of 55 gallons or more, and a spill could reach water. New oil and fuel count toward that total too.
Do used oil tanks have to sit in secondary containment?
The federal used oil rules for generators do not require it on their own. The SPCC rule requires it at the sites it covers, and some states require it. It is good practice either way.
Does the 1,320 gallons count how much oil is in the tanks?
No. It counts the full size of each container of 55 gallons or more, full or not (40 CFR 112.2).
How long are SPCC inspection records kept?
Three years (40 CFR 112.7(e)).
Written by Universal Environmental Services. Checked against 40 CFR Parts 112 and 279 on October 15, 2026.
Sources
Share this guide
