ELECTRONIC FILING, RECEIVED, CLERKS OFFICE, MAY 16, 2006
NOTICE OF FILING
To : ATTACHED SERVICE LIST
PLEASE TAKE NOTICE that on May 16, 2006 we filed the attached
PRE-FILED
TESTIMONY OF GREG RAY
with Dorothy Gunn, Clerk of the Illinois Pollution Control
Board, a copy of which is herewith served upon you
.
Respectfully submitted,
NORA, AN ASSOCIATION OF RESPONSIBLE
RECYCLERS
By: //Claire A . Manning
Claire A. Manning, one of its attorneys
BROWN, HAY & STEPHENS, LLP
Claire A . Manning, Esq .
Registration No . 3124724
205 S . Fifth Street, Suite 700
P.O. Box 2459
Springfield, IL 62705-2459
(217) 544-8491
(217) 241-3111 (fax)
Crnanning(c~t, bhslaw .com
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
In the Matter of
PROPOSED AMENDMENTS TO
SPECIAL WASTE REGULATIONS
R06-20
CONCERNING USED OIL,
35. 111 . Adm . Code, 808, 809
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MAY 16, 200
6
CERTIFICATE OF SERVICE
The undersigned certifies that a copy of the foregoing
PRE-FILED 'TESTIMONY OF
GREG RAY was filed, electronically, with the Clerk of the Illinois Pollution Control Board, and
with copies of such rule proposal being placed in the U .S. mail on May 16, 2006 and addressed
to
:
DOROTHY GUNN
Clerk of the Board
Illinois Pollution Control Board
100 W . Randolph Street, Suite 11-500
Chicago, Illinois 60601
TIM FOX
Hearing Officer
Illinois Pollution Control Board
100 W . Randolph Street, Suite 11-500
Chicago, Illinois 60601
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
Stephanie Flowers
Division of Legal Counsel
1021 North Grand Avenue
P.O . Box 19276
Springfield, Illinois 62794-9276
ILLLINOIS DEPARTMENT OF NATURAL RESOURCES
William Richardson
Chief Legal Counsel
One Natural Resources Way
Springfield, Illinois 62702-1271
OFFICE OF THE ILLINOIS ATTORNEY GENERAL
Matthew J . Dunn
188 W . Randolph St
., 20
°i
Floor
Chicago, Illinois 60601
ILLINOIS ENVIRONMENTAL REGULATORY GROUP
Deirdre K . Hirner
Executive Director
3150 Roland Avenue
Springfield, Illinois 62703
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MAY 16, 200 6
C: - .
eansta
l
BEORE THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF
:
PROPOSED AMENDMENTS TO THE
BOARD'S SPECIAL WASTE
REGULATIONS CONCERNING
USED OIL, 35 ILL
. ADM . CODE 8D8,809
PRE-FILED TESTIMONY OF GREGORY RAY
the
I am
Illinois
Gregory
Pollution
Ray, Vice
Control
President
Board
of
for
Business
hearing my
Management
testimony
for
todayHeritage
.
- Crystal Clean, LLC . I thank
Engineering)
I
refinery
professional
have a
in
very
the
I
experienceextensive
took
United
a position
Statesbackground
. After
-Evergreen
with
earning
in
a
the
chemical
degrees
Oil,
used
located
oil
engineering
from
recycling
Stanford
in Newark,
company
industry,University
Californiathat
with
built
(A
.
more
.8I
the
.
spent
Economics,
than
first
ten
twenty
modem
years
Myears
used
.Swith
. Industrialoil
ofre-
Evergreen Oil, with responsibility for a wide range of functions including used oil collection, finance and
administration, acquisitions, and new business development
. During my tenure, Evergreen became the
and
pre-eminent
projects
Vice
for
Presidential
used
Czechoslovakia,
oil recycler
candidate
in
Poland,
CaliforniaAl
Goreand
.
Indonesia
.
I
During
also worked
the
.
early
on international
1990's I hosted
used oil
visits
re-refining
from President
studies
Bushand
their
In 1994
used
I joined
oil collection
Safety-Kleen,
programthen
. Safety-Kleen
the largest
already
environmental
had a large
service
used
companyoil
collection
in North
business,
America,
andto
head
during the next five years we successfully expanded this throughout all of the 48 continental states, and
more than doubled the total volume collected for re-refining
.
In
has
full
1999
successfully
range
I joined
of environmental
expanded
Heritage
our
-Crystal
services
business
-Clean
including
into
(HCC),
thirty
used
a
states,
smaller
oil collection
serving
company
small
in
with
many
andambitious
casesmid-sized
.
growthcustomers
plans .
with
HCCa
Throughout my career, I have participated in several industry trade associations,
including the National
Oil
integrated
Recyclers
into
Association
NORA)
. I have
(NORA)
served
and also
as the
the
Chairman
Association
of NORA's
of PetroleumGovernment
Re-refiners
Affairs
(APR,
Committee,
later
and I
have been an active participant in various policy debates that impact our industry
.
businesses
I
public
would
policy
suggest
in
relevant
a variety
that my
to
extensive
of
used
geographic
oil collection
experience
areas,
and
Is
in
recyclingthe
a suitable
used oil
.
background
industry,for
managing
offeringboth
testimony
large and
and
smalladvice
on
During the late 1980's, the industry was vigorously debating the issue of whether used
oil should be
classified as a hazardous waste, This debate was decided by Federal EPA's decision that used oil could
be
designation
most effectively
-
based
regulated
on the EPA's
if managed
understanding
without
that
the burdens
most used
associatedoil
was already
with a hazardous
being managed
wastevia
Phone
: (847)
2250
836-5670Point
Boulevard
Fax: (847)
-
836-5677
Suite 250,
Toll
Elgin,
FreeIL
:
60123(877)
WE TRY 4 U
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MAY 16, 2006
May 10, 2006
Page 2 of 5
recycling. EPA considered the arguments of used oil generators who were eager to avoid the
bureaucracy of manifesting and ID numbers, and concluded that these burdens were not necessary to
ensure the protection of human health and the environment . While eschewing the hazardous waste label,
EPA did promulgate management standards for used oil recyclers and marketers -
standards which have
come to be viewed by the industry as reasonable and sufficient
.
Subsequently, many states adopted used oil rules and regulations that mirrored the EPA management
standards . Both NORA and the American Petroleum Institute actively encouraged state governments to
follow this path and adopt the federal framework . Over several years, the vast majority of states did so,
creating a nearly uniform national system for used oil recycling, Today, generators and collectors
operating across state boundaries can typically follow a simple and straightforward set of rules to see that
used oil is safely collected and recycled, while conserving a valuable resource and protecting the
environment
.
Currently, HCC collects used oil (in bulk tank trucks) from generators in the following states : Illinois,
Missouri, Indiana, Ohio, Kansas, Wisconsin, Arkansas, Louisiana, Texas, Mississippi, Alabama, Georgia,
Tennessee, Kentucky, North Carolina, and South Carolina . To the best of my knowledge, Illinois is the
only state from this list that classifies used oil as a special waste' .
The Statement of Reasons provides some of the history explaining why Illinois is one of the very few
states that have not yet adopted the uniform national approach . The current situation is unfortunate and
undesirable . Illinois' unique used oil regulations make the state a more difficult place to do business
- for
generators as well as used oil collectors and recyclers . The most significant deviation from the federal
system is that Illinois continues to require generators to ship used oil using special waste manifests,
which is an administrative burden with no benefit to human health or the environment .
The issue of consistency across states is important to many of our customers who have multiple facilities .
Such customers include, for example, chains of auto service facilities, auto dealerships, trucking
companies, and manufacturers . These customers often have one environmental manager with oversight
for many facilities In different states . Obviously, these customers find it much easier to follow regulations
that are nearly uniform throughout their operating area, and prefer this to regulations that are a patchwork
of different rules for different states .
Illinois' approach to this issue has also erected substantial barriers to entry for new competitors . Firms
that were engaged in used oil collection in Illinois eight years ago were often granted written authorization
by the Illinois Environmental Protection Agency (IEPA) to collect used oil without obtaining a manifest
from each generator (instead, they were granted multi-stop permits which allowed them to use a single
manifest per truckload per day) . We believe that many of these firms have continued this practice . In
contrast, five years ago my firm (HCC) requested a similar authorization from IEPA that was denied - on
the grounds that IEPA could no longer issue these permits . Therefore, for the past five years HCC has
been in the disadvantageous position of requiring each of our customers to use special waste manifests -
documents that they often don't need to provide when doing business with competitors . This has
unnecessarily burdened HCC's customers and slowed our growth
- all because we are complying with a
rule that has no value and should be abolished . For those five years we have been seeking relief from
this rule, and we are grateful to finally have a suitable forum to air this inequitable situation .
And Illinois is the only state from the list that requires generators to manifest used oil shipments .
z I believe the Illinois EPA would say that all generators are required to manifest their used oil as special waste, and
that the old multi-stop permits issued to our competitors are no longer valid . This is a technical rather than a
pragmatic argument, since the manifesting requirement has not been broadly communicated to the generator
community, and it is not being enforced .
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MAY 16, 2006
May
Page10, 3
2006of
5
Today,
manifesting
HCC has
provisions
approximately
related
1,100
to used
customers
oil
. We
in
generate
Illinois
approximately
who are subject
2,800to Illinois
the special
special
wastewaste
manifests for used oil annually - documents that we prepare for our customers, ensuring that they are
signed by multiple parties and are promptly returned and properly filed
. HCC has several full time
employees engaged in the printing and filing of manifests
- and another eight or ten field personnel who
the
need
We estimate
smallest
to deal
used
with
that
oil
Illinois
HCC
collectors
spends
special
$100,000
in Illinoiswaste
per
manifests
.
year
It is
on
my
for
our
contention
used
Illinois
oil as
that
a
manifestingsignificant
all of this
fraction
activity,
paperwork
of
and
does
their
HCC
nothing
daily
is one
worktoof3
.
paper,
enhance
manifesting
conclusion
time
the
-for
and
protection
as
used
evidenced
energyoil
.
.
of
Most
by
human
their
state
health
adoption
environmental
and the
of the
environmentagencies
federal management
have
- to the
apparently
contrary,
standards
comethe
which
to
exercise
a similardo
not
is a
requirewaste
of
exemptionNext,
I would
.
like to address the specific language that might be appropriate to
implement the intended
With
defined
the
by
filing
or managed
dated
pursuant
December
to
13,
35
2005,
III
. AdmNORA .
proposed
Code 739
to
." Subsequently,
exempt from manifestingwe
have received
"Used oil
andas
reviewed
objects to
the
the
comments
original
submitted
NORA-proposed
on May
wording1,
2006
. I
by
understand
the Illinois
that the
EPA
.
Illinois
With these
EPA believes
comments,
that
Illinois
this
EPA
therefore
"materials
like
address
management
original
Illinois
to elaborate
the
EPAwording
proposed
subject
pursuant
.
concern
We
on
have
could
to
different
this
expressed
regulation
to
amended
be
point35
construed
IIIlanguage
.
by
our
.
as
AdmIllinois
used
proposal
to
.
which
oil
Code
exempt
pursuant
EPA,
we
to
739from
believe
suggest
but
. Certainly
to
it
manifesting
35
makes
is
that
IIIfully
that
.
for
the
Admresponsive
certaina
was
manifest
.
more
Code
not
clear
used
NORA's
739toexemption
."
oil
the
andNot
intentwhich
concern
useful
only
should
.
is
does
regulationWe
voiced
NOT
haveapply
this
subject
bydirectly
.
toI'dto
Federal used oil regulations define used oil briefly and narrowly (at 40 CFR 279
.1) :
Used oil means any oil that has been refined from crude oil, or any
synthetic
contaminated
oil,
by
that
physical
has been
or chemicallused
and
impuritiesas
a result
.
of such use is
Additionally, when writing these regulations, federal regulators recognized that there were a variety of
that
that
examples
used
common
and properly
oilthese
are
materials
-
almost
of
can
used-oil-like
these
recycled
be
impossible
which
found
materialswithin
occur
at
materials
to
40
the
-distinguish
in
CFR
materials
proximity
national
were
279.10also
which
from
used
:
to
eligible
used
normal
oil
are
recycling
oil
NOT
used
to
and
used
be
oilare
managedoil,
system
.
compatible
The
but
.
regulators
under
Some
which
the
of
withare
these
used
felt
subject
used
oil
that
materials
oil,
regulationsit
to
was
and
regulation
beneficialare
are
.
safelymixturesSomeas
Mixtures
hazardous
of
wasteused
.
oil and conditionally exempt small quantity generator
Materials
that are burned
containing
for energy
or otherwiserecoverycontaminated
.
with used oill
Mixtures of
used oil and fuels or other fuel products .
In the event that the proposal is adopted, HCC does not expect to eliminate any jobs-all personnel involved in the
special
functionswaste
.
manifesting of used oil will be able tore-direct their efforts within
our company to more value-added
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MAY 16, 2006
Wastewater contaminated with more than de min mis quantities of
used oil. .
The result is that in almost all states, the used oil management system participants,
including generators,
used
collectors,
oil as defined,
processors,
and also
and
the
marketers,
used-oil-like
have developed
mixtures
-programs
safely and
to
efficientlymanage
all
.
of these materials -
both
The existing Illinois used oil regulations follow the form of the federal used oil regulations very closely .
Each of the used-oil-like mixtures described above is also addressed in the Illinois
regulations, and is
deemed appropriate to manage pursuant to the state's used oil regulations
.
We think it is clear that if and when the proposed manifest exemption for used
oil is adopted by Illinois, it
management
should apply
as
not
used
only
oil
to used
pursuant
oil,
to
but
federal
also to
regulations
all of the used-oil-like
and also pursuant
mixtures
towhich35
IIIare
. Admalready
. Code
subject
739. Toto
do otherwise would create a variety of problems, including :
A) Inconsistency
national consistency
with all other
we seekstates
;
and with the federal used oil system,
instead of achieving the
B) Creating
the real
an
worldartificial
;
distinction between materials which are virtually
impossible to differentiate in
C) Erecting an impediment to the safe recovery of CESOG hazardous waste
.
Allowing
specific
allow
state
unnecessary
all
programsthe
administrative
these
manifest
manifests
.
materials
It does
exemption
. Our
nothing
to
burden,
be
proposal
for
managed
to
used
without
change
will
as
oil
used
relieve
the
and
compromising
current
oilused-oil-like
the
- except
Industry
management
human
that
mixtures
and
it
health
practices
would
Illinoisprovidesor
eliminate
inthe
generators
consistency
Illinoisenvironmentthe
-
requirement
of
which
with
a state-
.
alreadyotherfor
In conclusion, I thank you for considering our proposal and my testimony
. I believe that this proposal is in
the best interests of the citizens of the state of Illinois
. I am pleased to respond to your questions .
Cam .
By Gregory ay~Jice President nj
Business Management,
Heritage - Crystal Clean, LLC
May 10, 2006
Gregory Ray
Vice President of Business Management
Heritage -
Crystal Clean, LLC
2250 Point Blvd
., Suite 250
Elgin, Illinois 60123
May
Page
10,4 2006
of 5
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, MAY 16, 2006
Graphical Representation of Manifest Exemption Definitions
A. Original NORA proposal (12/13/05)
- potential interpretation
Material
Definition
B . Illinois EPA suggestion (5/1106)
Material
Definition
C . Revised NORA proposal
(5/10/06)
Material
Definition
Management
Practice
Handled per Used Oil
Managed Outside of
Management Standards
Used Oil Management
(35 IL 7 391___
Standards (35
IL 739)
Used Oil as defined at 35 IL
739Other .100Materials Subject
to
XXX XXX
Regulation as Used Oil per 35
XXX
IL 73 9 .110
Used Oil as defined at 35 IL
739Other .100Materials
Subject
to
Regulation as Used Oil per 35
IL 739 110
Used Oil as defined at 35 IL
739Other .100Materials Subject
to
Regulation as Used Oil per 35
IL 739.110
Mans ement
Practice
_
Handled per Used Oil
Managed Outside of
Management Standards Used Oil Management
(35 IL 739) _- Standards
(35 IL 739)_
XXX
Management Practice
Handled per Used Oil
Managed Outside of
Management Standards
Used Oil Management
(35 IL 739) Standards
(35 IL 739)
XXX
XXX
May 10, 2006
Page 5 of 5
