(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 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.
(b) Used oil handlers, subject to the soil remediation requirements of subsection (c) or (d) of this section, and transporters of used oil, must meet the requirements of Chapter 37, Subchapter L of this title (relating to Financial Assurance for Used Oil Recycling).
(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 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. 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 facility's operating record; however, the original financial assurance mechanism must be submitted to the commission per §37.2015 of this title (relating to Submission of Documents). The amount required for financial assurance is:
  (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) 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) 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) 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
(d) Used oil handlers may meet the following alternate requirements.
  (1) Used oil handlers must:
    (A) 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
    (B) 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) Used oil handlers must ensure that 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) 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:
    (A) the secondary containment must be:
      (i) stationary;
      (ii) constructed of non-earthen material (e.g., concrete);
      (iii) maintained free of cracks, gaps, or holes; and
      (iv) overlain or underlain with a synthetic liner at least 40 mils thick;
    (B) the secondary containment must:
      (i) 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; and
      (ii) have at least 12 inches of freeboard or sufficient freeboard to hold the precipitation which would be collected, including any run-on or infiltration of precipitation, as a result of a 25-year, 24-hour rainfall event;
    (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 removed;
    (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) 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 remaining storage capacity; and
  (5) Used oil handlers must meet the requirements of subsection (c) of this section, but the amount of financial assurance provided is 10% of the amount that would otherwise be required under subsection (c).
(e) As required, processors or re-refiners who store or process used oil in aboveground tanks must, at closure of a tank system, demonstrate financial assurance in the amount of the cost to comply with the closure requirements of 40 CFR §279.54(h). If the used oil handler cannot demonstrate that all contaminated soils are removed or decontaminated as required in 40 CFR §279.54(h), the used oil handler must further demonstrate financial assurance in the amount required to cover the soil and perform post closure in accordance with the closure and post closure care requirements that apply to hazardous waste landfills under 40 CFR §§265.310, 265.117-265.120, and 265.145.

Source Note: The provisions of this §324.22 adopted to be effective March 17, 1998, 23 TexReg 2822; amended to be effective August 8, 1999, 24 TexReg 5882; amended to be effective March 21, 2000, 25 TexReg 2376