EPR for Used Oil: An Overview

Introduction

Extended Producer Responsibility (EPR) is an environmental policy that places the onus of managing the end-of-life disposal of products on the producers. EPR is critical in managing hazardous waste like used oil, ensuring that it is recycled, re-refined, or disposed of in an environmentally sound manner. This article delves into EPR for used oil in India, exploring its significance, the rules governing it, and the responsibilities of various stakeholders.

What is EPR for Used Oil?

EPR for used oil refers to the obligation of producers, importers, and recyclers to ensure the safe management of used oil, from its collection to its final disposal or re-refinement. Used oil, including engine oil, hydraulic oil, and other industrial oils, can be hazardous if not handled properly. The EPR framework under India’s Hazardous and Other Wastes (Management and Transboundary Movement) Second Amendment Rules, 2023, mandates producers to take responsibility for the collection, recycling, and safe disposal of used oil.

The Importance of EPR in Used Oil Management

Used oil contains various contaminants, including heavy metals and toxic substances, which can have severe environmental and health impacts if not managed correctly. EPR ensures that used oil is recycled or disposed of in an environmentally friendly manner, reducing pollution and conserving resources. By making producers responsible for the entire lifecycle of the oil, EPR promotes sustainable practices and the development of a circular economy.

Overview of the EPR Framework for Used Oil in India

India’s EPR framework for used oil is governed by the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016, and its subsequent amendments. The 2023 amendment outlines the responsibilities of producers, importers, recyclers, and collection agents in managing used oil. Key components of the EPR framework include:

• Producer Responsibility: Producers are required to collect used oil and ensure it is recycled or re-refined. They must also register on the EPR portal and file annual returns.
• EPR Targets: Producers must meet specific targets for recycling used oil, which are based on the quantity of oil sold or imported two years prior.
• EPR Certificates: Producers can fulfill their EPR obligations by purchasing EPR certificates from registered recyclers, which certify that a certain quantity of used oil has been recycled.

Responsibilities of Key Stakeholders

The EPR framework assigns specific responsibilities to different stakeholders in the used oil management process:

1. Producers and Importers:
   • Register on the EPR portal.
   • Fulfill EPR targets by ensuring the recycling of used oil.
   • Purchase EPR certificates from registered recyclers.
   • File annual returns and provide necessary information to the Central Pollution Control Board (CPCB).
2. Recyclers:
   • Register on the EPR portal.
   • Ensure that recycling processes meet environmental standards.
   • Issue EPR certificates for the quantity of oil recycled.
   • File quarterly and annual returns on the EPR portal.
3. Collection Agents:
   • Register on the EPR portal.
   • Collect used oil from generators and supply it to registered recyclers.
   • File returns on the quantity of oil collected and transferred.
4. Bulk Generators:
   • Set up collection points for used oil.
   • Ensure that used oil is handed over only to registered recyclers or collection agents.

The Process of Re-refining and Recycling Used Oil

Re-refining and recycling are critical components of the EPR framework for used oil. Re-refining involves removing impurities from used oil to produce base oil or lubrication oil, which can be used again. Recycling can also include energy recovery from used oil that is not suitable for re-refinement. The CPCB has set guidelines for recycling processes to ensure they are environmentally sound.

Re-refining of Used Oil

Re-refining is the most preferred method of recycling used oil, as it restores the oil to a state where it can be reused as base oil or lubrication oil. The re-refining process typically involves the following steps:

1. Dehydration: Removing water and light hydrocarbons from the used oil.
2. Distillation: Separating the oil into different fractions based on boiling points.
3. Hydrotreating: Removing sulfur and other contaminants from the oil.
4. Blending: Mixing the re-refined base oil with additives to produce finished lubrication oil.

Energy Recovery

For used oil that cannot be re-refined, energy recovery is an alternative recycling method. This process involves using used oil as a fuel in industrial applications, such as in cement kilns or power plants. Energy recovery helps in reducing the environmental impact of used oil disposal by converting it into a useful form of energy.

EPR Targets for Used Oil Recycling

The EPR framework sets specific targets for the recycling of used oil, which producers must meet. These targets are based on the quantity of oil sold or imported two years prior. The targets are as follows:

• 2024-25: 5% of the base oil or lubrication oil sold or imported in 2022-2023.
• 2025-26: 10% of the base oil or lubrication oil sold or imported in 2023-2024.
• 2026-27: 20% of the base oil or lubrication oil sold or imported in 2024-2025.
• 2027-28: 20% of the base oil or lubrication oil sold or imported in 2025-2026.
• 2028-29: 40% of the base oil or lubrication oil sold or imported in 2026-2027.
• 2029-30: 40% of the base oil or lubrication oil sold or imported in 2027-2028.
• 2030-31 and onwards: 50% of the base oil or lubrication oil sold or imported two years prior.

Registration and Compliance on the EPR Portal

All stakeholders involved in the management of used oil, including producers, recyclers, importers, and collection agents, must register on the CPCB’s EPR portal. The registration process requires submitting relevant details, such as company information and the quantity of oil handled. Once registered, entities must regularly update the portal with information on the collection, recycling, and disposal of used oil.

Annual Returns

Producers and other stakeholders are required to file annual returns on the EPR portal, detailing the quantity of oil sold, recycled, or imported. These returns must be submitted by June 30th of each year for the preceding financial year.

EPR Certificates

EPR certificates play a crucial role in the EPR framework. These certificates are issued by recyclers to producers, certifying that a certain quantity of used oil has been recycled. Producers can purchase these certificates to meet their EPR obligations. The CPCB regulates the trading of EPR certificates, ensuring that prices remain within a set range to prevent market volatility.

Challenges and Opportunities in EPR for Used Oil

While the EPR framework for used oil is a significant step towards sustainable waste management, it presents several challenges and opportunities:

Challenges

• Compliance: Ensuring compliance with EPR regulations can be challenging for small and medium-sized enterprises (SMEs), which may lack the resources to manage used oil effectively.
• Infrastructure: The availability of recycling facilities and collection agents is critical for the success of the EPR framework. In some regions, there may be a lack of infrastructure to support used oil recycling.
• Awareness: Raising awareness among stakeholders, including producers, consumers, and recyclers, is essential for the effective implementation of the EPR framework.

Opportunities

• Circular Economy: EPR for used oil promotes the development of a circular economy, where waste is minimized, and resources are reused. This can lead to significant environmental and economic benefits.
• Innovation: The EPR framework encourages innovation in recycling technologies and processes, leading to more efficient and environmentally friendly methods of managing used oil.
• Collaboration: EPR provides opportunities for collaboration between producers, recyclers, and other stakeholders to develop more sustainable practices in used oil management.

Frequently Asked Questions (FAQs) on EPR for Used Oil

1. What is Extended Producer Responsibility (EPR) for Used Oil?
   • EPR for used oil is the responsibility of producers, importers, and recyclers to manage the collection, recycling, and disposal of used oil in an environmentally sound manner.
2. Who needs to register on the EPR portal for used oil?
   • Producers, importers, recyclers, and collection agents involved in the management of used oil must register on the CPCB’s EPR portal.
3. What are the EPR targets for used oil recycling?
   • The EPR targets for used oil recycling are based on the quantity of oil sold or imported two years prior, starting from 5% in 2024-25 to 50% in 2030-31 and onwards.
4. How are EPR certificates used in the framework?
   • EPR certificates are issued by recyclers to certify that a certain quantity of used oil has been recycled. Producers can purchase these certificates to meet their EPR obligations.
5. What are the penalties for non-compliance with EPR regulations?
   • Entities that fail to comply with EPR regulations may face penalties, including environmental compensation and the revocation of registration on the EPR portal.
6. Can used oil be imported for recycling?
   • Yes, the import of used oil for the purpose of re-refinement is permitted under the EPR framework.
7. What oils are exempt from EPR targets for used oil?
   • Oils such as white oil, process oils, and lubricants like greases, which do not generate residual used oil, are exempt from EPR targets. However, producers of exempt oils must still register on the EPR portal.
8. What are the responsibilities of bulk generators of used oil?
   • Bulk generators, such as industrial units or transportation companies, must set up collection points for used oil and ensure it is handed over to registered recyclers or collection agents.
9. Do export-oriented units have EPR obligations?
   • No, entities that export base oil or lubrication oil without introducing it into the domestic market are not subject to EPR targets. However, they must still register on the EPR portal.
10. How is the EPR target calculated for new entities established after April 1, 2024?
    For entities established after April 1, 2024, the EPR obligation starts two years after the end of the financial year in which the entity was set up, with the same recycling targets as other producers.
11. What is the registration fee for entities under the EPR for used oil framework?
    Registration fees vary based on the type of entity (e.g., producer, importer, recycler) and the quantity of oil managed. For example, producers handling over 100,000 MT must pay ₹10,00,000, while smaller entities pay lower fees.
12. What is the validity of EPR certificates?
    EPR certificates are valid for two years from the end of the financial year in which they were issued. After that, expired certificates are automatically archived on the EPR portal.
13. Are EPR certificates tradable between producers or importers?
    No, EPR certificates are not tradable between registered producers or used oil importers. Each producer must purchase certificates directly from registered recyclers.
14. How does CPCB regulate the prices of EPR certificates?
    The Central Pollution Control Board (CPCB) regulates EPR certificate prices by setting a price range between 30% and 100% of the environmental compensation for non-compliance.
15. What are the penalties for false EPR certificates or non-compliance?
    Entities that issue false certificates or fail to meet EPR obligations may face environmental compensation charges, legal penalties, and the revocation of their registration.
16. How do collection agents manage used oil?
    Collection agents must register on the EPR portal, collect used oil from bulk generators, and supply it to registered recyclers or producers. They must also file quarterly and annual returns on the portal.
17. What are the responsibilities of used oil recyclers under EPR?
    Recyclers must ensure that their facilities meet environmental standards, properly recycle used oil, and issue EPR certificates. They are also required to file regular returns and manage residues in accordance with environmental regulations.
18. Can producers purchase both re-refined base oil and EPR certificates from recyclers?
    Yes, producers can purchase both re-refined base oil and EPR certificates, contributing to their EPR obligations and promoting the circular economy by utilizing recycled base oil.
19. What happens if an entity engages in multiple roles (e.g., producer, recycler)?
    Entities involved in multiple roles, such as producer and recycler, must register separately for each role on the EPR portal, even if they share the same GST number.
20. Can used oil be imported for energy recovery?
    No, the import of used oil is allowed only for re-refinement purposes. Energy recovery from imported used oil is not permitted under the current EPR framework.