(1) Except as provided in subsection (2) of this section, a person may not burn used oil as fuel in a land-based facility or in state waters unless the used oil meets the following standards:

(a) Cadmium: 2 ppm maximum

(b) Chromium: 10 ppm maximum

(c) Lead: 100 ppm maximum

(d) Arsenic: 5 ppm maximum

(e) Total halogens: 1000 ppm maximum

(f) Polychlorinated biphenyls: 2 ppm maximum

(g) Ash: .1 percent maximum

(h) Sulfur: 1.0 percent maximum

(i) Flash point: 100 degrees Fahrenheit minimum.

(2) This section shall not apply to: (a) Used oil burned in space heaters if the space heater has a maximum heat output of not greater than 0.5 million btu's per hour or used oil burned in facilities permitted by the department or a local air pollution control authority; or (b) ocean-going vessels.

(3) This section shall not apply to persons in the business of collecting used oil from residences when under authorization by a city, county, or the utilities and transportation commission.