Lawrence Livermore National Laboratory

Final Recommendations:
Improving Used Oil Recycling in California
Presentation to the California Integrated Waste Management Board

May 2008

Mackenzie R. Johnson, Dr. John G. Reynolds, Dr. Adam H. Love,

Lawrence Livermore National Laboratory, P. O. Box 808, Livermore, CA 94551 This work performed under the auspices of the U.S. Department of Energy by Lawrence Livermore National Laboratory under Contract DE-AC52-07NA27344

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Original Task: Using existing refineries

Original Task:
Determine feasibility for re-refining used oil through existing facilities Technical requirements Non-technical requirements Recommend appropriate steps

Initial Results:
1. 2. 3. Capacity was not the only limit to increased re-refining of used oil CA hazardous waste designation for used oil is a barrier to re-refining through existing refineries Mixing used oil with crude oil results in more complications than benefits for existing refineries Rapidly concluded that re-refining was not limited by technical feasibility, but by dynamics of current used oil market system
Lawrence Livermore National Laboratory
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Modified Task: Optimize highest and best use

Modified Task:
Perform system analysis of used oil market and evaluate potential changes that would promote highest and best use of recycled oil products Used oil system description Used oil system forces Recommended system changes

Evaluation criteria of highest and best use:

1. 2. 3. Contaminants released Energy conservation Resource sustainability

Recycling to automotive lube oil as the highest and best use

evaluated

Significant environmental benefits from some other recycled product

Lawrence Livermore National Laboratory
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Overall Lube Oil System

Current $0.04/qt Fee Collecte d

Numerous stakeholders within the used oil system.

Generators Collectors

Current $0.04/qt Incentiv e Paid

Haulers

Recyclers

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Recycling Products/Processes in California

Base for Lube

Rerefined Base Lube

Dehydration/ Filtration Distillation Hydrotreatment

Marine Distillate Oil

Dehydration/ Filtration Distillation

Recycled Fuel Oil

Dehydration/ Filtration

Re-refining proposed as the best solution from both energy resource preservation and environmental conservation perspectives. DOE (2006) Used Oil Re-refining Study to Address Energy Poly Act of 2005 section 1838 Compared with lubricant production from virgin crude: Re-refininig takes 50-85% less energy and produces ~20% of the GHG emissions. American Petroleum Institute; ENSR (2008) End-of-life impacts on air quality from re-refining and MDO are approximately equivalent, and both are significantly better than burning RFO. Boughton and Horvath (2004) Direct burning, such as burning RFO, is advantageous compared to burning coal. Lawrence Livermore National Laboratory
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Fehrenbach (2005)

Characteristics of used oil recycling

Product Product Rating

Recycled Fuel Oil (RFO)

Single-use Recycling Downcycled Product Results in heavy metals and sulfur emissions Single-use Recycling Downcycled Product Low environmental impact

Marine Distillate Oils (MDO)

Closed-loop recycling: Process where the quality of the recycled product equals or exceeds the quality of the original material and can itself be recycled through the same processes in a repeatable cycle Single-use Recycling: Process where the recycled product can not be recycled again and thus has a single finite reuse. Downcycling: Process where the quality of the recycled product is less than the quality of the original material.

Re-refined Industrial Base Lube

Closed-loop Recycling Potentially Downcycled

(Depending on used oil source)

Low environmental impact

API-certified automotive Re-refined Base Lube

Closed-loop Recycling
(75% closed-loop)

Maintains original used oil quality Low environmental impact

Each of the products from used oil recycling are valuable products to the end users
Lawrence Livermore National Laboratory
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Used Oil Market Dynamics

Demand for Recycled Lube Oil Price for Recycled Lube Oil

Used Oil Re-refining Capacity Volume of Used Oil to Re-refineries

1. Increase volume collected Improve collection efforts

Encourage hauling to re-refinery

2. Increase market demand

Improve public awareness of rerefined products Mandatory recycled content Incentive on product

Recycled Lube Oil Produced

3. Increase closed-loop capacity

Each of these components has complicated dynamics and interdependencies that need to be considered and included in system optimization

Ease permitting procedures Incentive for production

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Externalities to California System

Demand for Used Oil from OOS recyclers National/International Lube Oil Supply Air quality regulations Permitting Difficulties in California API Standards for lube oils CalEPA Hazardous waste categorization of used oil

Lawrence Livermore National Laboratory

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Externalities to California System

Demand for Used Oil from OOS recyclers
Used oil is a valuable commodity so OOS recyclers compete with CA recyclers

National/International Lube Oil Supply Air quality regulations Permitting Difficulties in California API Standards for lube oils CalEPA Hazardous waste categorization of used oil

Lawrence Livermore National Laboratory

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Externalities to California System

Demand for Used Oil from OOS recyclers
Used oil is a valuable commodity so OOS recyclers compete with CA recyclers

National/International Lube Oil Supply

Impacts market for additional lube oil production

Air quality regulations Permitting Difficulties in California API Standards for lube oils CalEPA Hazardous waste categorization of used oil

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Externalities to California System

Demand for Used Oil from OOS recyclers
Used oil is a valuable commodity so OOS recyclers compete with CA recyclers

National/International Lube Oil Supply

Impacts market for additional lube oil production

Air quality regulations

May require additional processing for recycling to fuel oil Impacts construction/expansion of re-refining facilities

Permitting Difficulties in California API Standards for lube oils CalEPA Hazardous waste categorization of used oil

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Externalities to California System

Demand for Used Oil from OOS recyclers
Used oil is a valuable commodity so OOS recyclers compete with CA recyclers

National/International Lube Oil Supply

Impacts market for additional lube oil production

Air quality regulations

May require additional processing for recycling to fuel oil Impacts construction/expansion of re-refining facilities

Permitting Difficulties in California

Time and cost make construction/expansion prohibitive

API Standards for lube oils CalEPA Hazardous waste categorization of used oil

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Externalities to California System

Demand for Used Oil from OOS recyclers
Used oil is a valuable commodity so OOS recyclers compete with CA recyclers

National/International Lube Oil Supply

Impacts market for additional lube oil production

Air quality regulations

May require additional processing for recycling to fuel oil Impacts construction/expansion of re-refining facilities

Permitting Difficulties in California

Time and cost make construction/expansion prohibitive

API Standards for lube oils

Require greater degree of processing for certification as lube oil

CalEPA Hazardous waste categorization of used oil

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Externalities to California System

Demand for Used Oil from OOS recyclers
Used oil is a valuable commodity so OOS recyclers compete with CA recyclers

National/International Lube Oil Supply

Impacts market for additional lube oil production

Air quality regulations

May require additional processing for recycling to fuel oil Impacts construction/expansion of re-refining facilities

Permitting Difficulties in California

Time and cost make construction/expansion prohibitive

API Standards for lube oils

Require greater degree of processing for certification as lube oil

CalEPA Hazardous waste categorization of used oil

Increases costs, limits handling possibilities Provides greater accountability that has greatly reduced used oil contamination

Lawrence Livermore National Laboratory

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Externalities to California System

Demand for Used Oil from OOS recyclers
Used oil is a valuable commodity so OOS recyclers compete with CA recyclers

National/International Lube Oil Supply

Impacts market for additional lube oil production

Air quality regulations

May require additional processing for recycling to fuel oil Impacts construction/expansion of re-refining facilities

Permitting Difficulties in California

Time and cost make construction/expansion prohibitive

API Standards for lube oils

Require greater degree of processing for certification as lube oil

CalEPA Hazardous waste categorization of used oil

Increases costs, limits handling possibilities Provides greater accountability that has greatly reduced used oil contamination

These factors outside Californias used oil system will continue to impact the overall supply and demand for recycled lube oil
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Stakeholder Feedback
Highest and best use evaluation
Criticized by producers of single-use recycled products having a low environmental impact

Collection and Incentive

Amount collected through fees needs to increase in order to implement improvements Maintain incentives to CCCs

Regulatory Issues
Environmental benefits of hazardous waste designation exceed the associated costs and handling restrictions Mandatory recycled content infeasible Preference for market pressures over government mandates

Market Considerations
Feedback often related to issues that adversely impact respondents own market share Preference for a fair, open market over a closed market: OOS facilities should handle, test, and treat used oil received from CA according to rules followed by in-state facilities

Stakeholders gave incredibly useful and detailed information about process and system dynamics
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Recommendations
Enable and encourage highest and best use at every level 1. Reevaluate the fee on lube oil sales 2. Reduce the fee on lube oil sales with recycled content 3. Implement effective Green education for recycled lube oil 4. Encourage and support curbside used oil collection

5. Provide a monetary incentive to recycling facilities producing API certified base lube oil
* Additional Recommendation: Provide a lower monetary incentive to recycling facilities producing industrial lube oil or marine distillate oil over recycled fuel oil

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Acknowledgements
** Numerous CCCs and Haulers
Dennis Batchelder (Pete Kotoff) Kyle Reed Shane Terry Christopher Harris Numerous members John Denholm

CIWMB
Glenn Gallagher Howard Levenson Jeffrey Lin Bert Wenzel Shirley Willd-Wagner Brenda Smyth N. Bonnie Booth Jim Ennis

Bill Briggs Charles Johnston Ame LeCocq Pacific Operators Offshore, Inc.

DTSC:

Bob Boughton Charles Corcoran Reports Library Gary Colbert Bob Sulnick

Evergreen
Evergreen Oil, Inc.

Michael Ebert Mark Phariss

Bill Ross Mike Sommer

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