AN ACT Relating to oil recycling; amending RCW 19.114.020; adding new sections to chapter 19.114 RCW; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 2, chapter 137, Laws of 1983 and RCW 19.114.020 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Used oil" means ((~~automotive oil which through use, storage, or handling has become unsuitable for its original purpose due to the presence of impurities or the loss of original properties~~)) any of the following:

(a) Spent lubricating fluids which have been removed from an engine crankcase, transmission, gearbox, or differential of an automobile, bus, truck, vessel, plane, heavy equipment, or machinery powered by an internal combustion engine;

(b) Spent industrial oils, including compressor, turbine, and bearing oil, hydraulic oil, metal-working oil, refrigeration oil, and railroad drainings;

(c) Any oil that has been refined from crude oil, and has been used, and, as a result of use, has been contaminated with physical or chemical impurities;

(d) Any oil that has been refined from crude oil and, as a consequence of extended storage, spillage, or contamination with nonhazardous impurities such as dirt and water, is no longer useful to the original purchaser;

(e) Contaminated fuel oil with a flash point greater than one hundred degrees Fahrenheit.

"Used oil" does not include oil which has a flash point below one hundred degrees Fahrenheit or which has been intentionally mixed with hazardous waste, other than minimal amounts of vehicle fuel or which contains polychlorinated biphenyls (PCBs) at a concentration of five ppm or greater. This subsection shall be regulated pursuant to RCW 70.105.___.

(2) "Recycle" means to prepare used oil for reuse as a petroleum product by refining, rerefining, reclaiming, reprocessing, or other means or to use used oil as a substitute for a petroleum product made from new oil, provided that the preparation or use is operationally safe, environmentally sound, and complies with all laws and rules.

(3) "Department" means the department of ecology.

(4) "Director" means the director of the department of ecology.

(5) "Person" means an individual, private or public corporation, partnership, cooperative, association, estate, municipality, political subdivision, or governmental agency or instrumentality.

(6) "Energy recovery" means a process operating under federal and state environmental laws and regulations for converting solid waste into usable energy and for reducing the volume of solid waste.

NEW SECTION. Sec. 2. Any person in the business of transporting or processing waste oil shall be licensed by the department. To obtain a license, each applicant shall:

(1) Provide assurances, to the satisfaction of the department, that the applicant is in compliance with this chapter and the rules regarding waste transportation and processing; and

(2) Post a bond in the sum of ten thousand dollars in favor of the state of Washington. In lieu of a bond, the applicant may submit financial assurances acceptable to the department.

NEW SECTION. Sec. 3. (1) Any person who knowingly transports or processes waste oil for compensation without having a license pursuant to section 2 of this act shall be guilty of a gross misdemeanor and upon conviction shall be punished under RCW 9A.20.021.

(2) Any person who contracts for the delivery of used oil with an unlicensed transporter shall be guilty of a gross misdemeanor and upon conviction shall be punished under RCW 9A.20.021.

NEW SECTION. Sec. 4. (1) A person may use used oil for energy recovery only if the following standards are met:

(a) Arsenic: Five ppm or less;

(b) Cadmium: Two ppm or less;

(d) Lead: Fifty ppm or less;

(e) Total Halogens: Three thousand ppm or less;

(f) Polychlorinated Biphenyls: Two ppm or less; and

(g) Flash point: One hundred degrees Fahrenheit or greater.

(2) Compliance with the standards established in this section shall not be met by blending or diluting used oil with crude or virgin oil.

NEW SECTION. Sec. 5. A facility selling used oil for energy recovery shall ensure that the used oil meets all the requirements under section 4 of this act.

NEW SECTION. Sec. 6. (1) No person may knowingly dispose of used oil except by delivery to a person or entity collecting used oil subject to the provisions of this chapter.

(2) No owner or operator of a solid or hazardous waste landfill may accept used oil for disposal except as provided by the department or the federal government.

(3) Any person who violates this section shall be subject to a fine of up to one thousand dollars. Nothing in this section shall supersede the provisions under chapter 70.105 or 90.48 RCW.

NEW SECTION. Sec. 7. The use of used oil as a dust suppressant or weed control agent is prohibited unless the oil meets the following standards:

(1) Lead: Five ppm or less;

(2) Cadmium: One ppm or less;

(3) Total Halogens: One hundred ppm or less; and

(4) Such other standards, as are determined necessary by the department.

NEW SECTION. Sec. 8. There is levied a fee of ‑-‑- cents per quart on the retail sale of automotive oil. The fee imposed in this section shall be paid by the buyer to the seller, and each seller shall collect from the buyer the full amount of the fee. The fee collected from the buyer by the seller, less the amount retained by the seller as provided in section ‑-‑- of this act, shall be paid to the department of revenue in accordance with RCW 82.32.045. All other applicable provisions of chapter 82.32 RCW have full force and application with respect to the fee imposed under this section. The department of revenue shall administer this section.

For purposes of sections 8, 10, 11, and 12 of this act, "automotive oil" shall mean .......... .

NEW SECTION. Sec. 9. There is created an account within the state treasury to be known as the used oil recycling account. All fees and other funds collected or received under this chapter shall be deposited in the used oil recycling account and used by the department of ecology for administration and implementation of this chapter. The department of revenue shall deduct two percent from the funds collected pursuant to section 8 of this act for the purpose of administering and collecting such fees.

NEW SECTION. Sec. 10. Moneys in the used oil recycling account may be appropriated to the department of ecology:

(1) To provide for funding to public or private entities collecting used automotive oil subject to the provisions of section 11 of this act;

(2) To administer this section; and

(3) To accomplish the purposes of RCW 19.114.030, provided that no more than twenty percent of the funds appropriated to the department from this account are used for this purpose.

NEW SECTION. Sec. 11. Public or private entities, certified pursuant to section 12 of this act, collecting used automotive oil from the public shall be eligible to receive a payment, not to exceed ‑-‑, for each quart of used automotive crankcase oil collected from the public. To receive such payment, a public or private collection entity shall submit such payment, a public or private collection entity shall submit such documentation as the department may require. Total yearly credits shall not exceed available funds in the used oil recycling account. When total yearly credits claimed exceed available funds, the credits shall be proportionately and equitably distributed among the claimants. Credits shall not be paid until the availability of funds is verified. The department of revenue shall adopt rules to implement this section.

NEW SECTION. Sec. 12. Any person in the business of collecting used automotive oil from the public shall be licensed by the department. To obtain a license, each applicant shall:

(1) Comply with standards for above-ground tanks established pursuant to RCW 19.114.040; or

(2) Other standards for collection as the department may require.

NEW SECTION. Sec. 13. Sections 2 through 12 of this act are each added to chapter 19.114 RCW.