Financial Assurance for Used Oil Recycling
There are different financial assurance requirements depending upon whether you are registered as a "transporter" of used oil or whether you are registered as a "used oil handler". A used oil handler includes owners or operators of a used oil transfer, processing re-refining, or off-specification used oil burning facility. Please refer below to Types of Financial Assurance Mechanisms for more details.
Both used oil handlers and used oil transporters should refer to Subchapter L of Chapter 37 which establishes requirements and mechanisms for demonstrating financial assurance for soil remediation and insurance. The amount of financial assurance required is determined by the Registration and Reporting (R&R) Section and is discussed in further detail under Cost Estimates below.
Owners or operators which are state or federal government entities whose debts and liabilities are the debts and liabilities of a state or the United States are exempt. Local political subdivisions are not exempt.
An owner or operator who is required to provide financial assurance must submit an originally signed financial assurance mechanism prior to the issuance of a registration by our R&R Section. The signed financial assurance mechanism must be in effect at the time it is submitted.
Our Rules allow the term "soil remediation" to mean the same as "closure" in order to promote consistency among the various financial assurance mechanisms that are utilized among different programs.
If you have questions about financial assurance for used oil recycling registrations, please contact us.
Closure costs estimates are applicable to used oil handlers only. Cost estimate requirements are set out in 30 TAC §324.22(c) and subject to review by our agency's R&R Section during the registration review process. If you become registered and plan to expand your facility or reduce capacity, this will more than likely affect your cost estimates and in turn, your financial assurance obligations. For more information regarding your cost estimates, please contact one of our technical support staff in the R&R Section at 512/239-6833.
Used Oil Handlers
Used Oil Handlers are allowed to choose from several types of financial assurance mechanisms as set out in Subchapter L of Chapter 37. The description of how various financial assurance mechanisms work and their specific criteria are set out in Subchapter C of Chapter 37. The required wording of the mechanisms can be reviewed and downloaded from Subchapter D of Chapter 37.
The original financial assurance documents should be sent to Financial Assurance.
A used oil transporter is not subject to the same financial assurance requirements as a used oil handler and instead must show proof of insurance to the commission in the forms and levels prescribed by the Texas Department of Transportation. For more information regarding this issue please refer to 30 TAC §37.2021 or contact one of our technical support staff in the R&R Section at 512/239-6833.
For Used Oil Handlers, the financial assurance mechanism you submit to us must be worded exactly as set out in our Rules except that the instructions in parenthesis are to be replaced with the relevant information and the parenthesis deleted. One way to ensure that your mechanism is worded correctly is to download the document from our web site and inform your financial institution not to add or delete language. Please be advised that our agency cannot accept the financial assurance mechanism if it does not incorporate the exact language as set out in our Rules.