Nov 18 - Federal Used Oil Rerefining Legislation

Senators Bayh, Lugar and Cantwell introduced yesterday S. 2783 - a bill providing tax incentives for re-refining that would give a $0.20/gal production tax credit and accelerated depreciation for the cost of expanding or constructing a re-refinery.

Used oil can be re-refined into new lubricating oil in an endless recycled loop, providing many energy and environmental benefits. Rerefining conserves the crude oil supply by re-using the motor oil rather than having to extract additional crude oil from diminishing domestic supplies or importing additional crude oil from foreign countries. It also takes less energy to re-refine than to produce oil from virgin resources, and the quality of the end result is the same.

Increasing re-refining capacity in the United States would also provide corollary benefits to parts and technology suppliers, used oil generators and collectors - thereby inviting sizable job creation opportunities in the green economy.

In California, the Governor recently signed SB 546 which increased the recycling incentive and also set a rerefining incentive for used motor oil.

Learn more about Used Oil Recycling