1. (a) This section applies to transporters of used oil who are seeking registration under this chapter. It also applies to owners and operators of used oil transfer, processing, rerefining, and off-specification used oil burning facilities, hereinafter referred to as "used oil handlers." It does not apply to a used oil handler which is owned or otherwise effectively controlled by the owners or operators where the used oil is generated.
2. (b) Within 90 days after the effective date of this rule, transporters of used oil must meet the financial responsibility requirements provided in Chapter 37, §37.2021 and used oil handlers subject to the requirements of either subsection (c) or (d) of this section must meet the financial responsibility requirements provided in §37.2011 of this title (relating to Financial Responsibility Requirements for Used Oil Handlers).

3. (c) Used oil handlers meeting the requirements of this subsection must provide financial assurance for soil remediation in the amounts specified. A used oil handler subject to this subsection must, within 30 days after an increase in the active area of the facility which results in a higher financial assurance requirement, provide for increased financial assurance. Additionally, a used oil handler must, at a minimum, update its financial assurance annually to cover any increased cost due to inflation and to account for any other appropriate adjustments, including a lower financial assurance amount due to a decrease in the active area of the facility. The active area of the facility is the earthen area at the facility over which any transportation, storage, or processing of used oil occurs. Records demonstrating the size of the active area of the facility and related financial assurance are to be maintained in the operating record of the facility. (Also, see §37.2011(c) of this title (relating to Financial Responsibility Requirements for Used Oil Handlers.)) The specified amount for which financial assurance must be provided is as follows:

   1. (1) for a facility with an active area of over 1,000 square feet up to 10,000 square feet, $410 for each 1,000-square-foot increment;
   2. (2) for a facility with an active area of over 10,000 square feet up to 100,000 square feet, $4,100 for each 10,000-square-foot increment;
   3. (3) for a facility with an active area of over 100,000 square feet up to 1 million square feet, $41,000 for each 100,000 square-foot increment and $4,100 for each 10,000 square-foot increment;
   4. (4) for a facility with an active area of over 1 million square feet, $410,000 for each 1-million-square foot increment, $41,000 for each 100,000 square-foot increment, and $4,100 for each 10,000 square-foot increment; or

4. (d) Used oil handlers may meet the following alternate requirements:

   1. (1) used oil handlers must demonstrate compliance with this chapter, as follows:

      1. (A) used oil handlers must annually provide a certification statement to the executive director that the used oil handler is in compliance with the applicable requirements of this chapter; and
      2. (B) all used oil handlers must obtain certification from a Registered Professional Engineer or other qualified independent professional that the used oil facility units have been designed and constructed in accordance with appropriate design standards, and that the units exhibit mechanical integrity. Such a certification must be obtained for each unit added to the facility, and for each unit that has undergone repair to restore mechanical integrity, within 90 days of the addition or completion of repair;
   2. (2) Used oil handlers must ensure that used oil spills in quantities of 25 gallons or greater are reported to the agency in accordance with the spill reporting requirements of Chapter 327 of this title (relating to Spill Prevention and Control);

   3. (3) Used oil handler facilities must be provided with secondary containment for all areas where used oil is stored, transferred, or otherwise handled, including but not limited to loading docks, parking areas, storage areas, and any other areas where shipments of used oil are held for more than 24 hours; and the facility's used oil tanks, containers, and secondary containment must be constructed, operated, and maintained to conform to the requirements of Title 40 Code of Federal Regulations §§264.174, 264.193(c)-(f), and 264.195(b), as if the used oil were hazardous waste, or to conform to the following:

      1. (A) the secondary containment must be stationary and constructed of non-earthen material (e.g., concrete) and which is maintained to be free of cracks, gaps, or holes, and which is overlain with a synthetic liner with a thickness of at least 40 mils;
      2. (B) the secondary containment must be large enough to contain a catastrophic spill of 100% of the capacity of the largest used oil storage, transfer, or other handling equipment or device within the containment area, plus either at least 12 inches of freeboard or sufficient freeboard to hold the precipitation which would be collected within the containment area, including any run-on or infiltration of precipitation, which would occur as a result of a 25-year, 24-hour rainfall event;
      3. (C) the secondary containment system must prevent the release of used oil or other accumulated liquid from the secondary containment system to the soil, ground water, or surface water until the collected material is removed;
      4. (D) used oil or other accumulated liquid must be removed from the secondary containment system within 24 hours from discovery, or in as timely manner as possible;
   4. (4) Used oil handlers must provide spill response capability to adequately respond to a catastrophic spill of 100% of the capacity of the largest used oil storage, transfer, or other handling equipment or device, plus 10% of the capacity of the remaining used oil, storage, transfer, and other handling equipment and devices; and
   5. (5) Used oil handlers must meet the requirements of subsection (c) of this section, except the specified amount for which financial assurance must be provided is 10% of the amount that would otherwise be required under subsection (c).

Source Note:The provisions of this §324.22 adopted to be effective March 17, 1998, 23 TexReg 2822.