EPR Authorization for Waste Oil

CPCB has recently amended its recommendations about waste management regulations in India. This amendment introduces a new provision concerning the extended producer responsibility (EPR) for waste oil.

CPCB has established a designated portal for stakeholders to register and submit quarterly and annual returns. Moreover, stakeholders can generate EPR certificates through this portal.

Introduction 

Epr for used oil means the responsibility of the producer of base oil or lubrication oil or importer of used oil under the hazardous and other wastes management and transboundary movement rule 2016 for meeting the recycling target only through registered recyclers to ensure environmentally sound management of used oil.

The portal will become operational within 6 months and the CPCB  / SPCB will be able to trace quantities of oil produced and lubricants introduced by producers and used oil importers into the country can be tracked.

Stakeholders that deal with the waste oil are as follows –

• Producer and manufacturer
• Importer 
• Import of base oil stakeholder
• Lubrication oil stakeholder
• Waste oil collector and recycler 
• Distributor and retailer 

Assurance for authorization 

Adhere to the authorization for the utilization of hazardous waste, CPCB ensures adherence to established protocols. Authorization is granted solely for waste covered by a Standard Operating Procedure (SOP) for utilization, as circulated by the CPCB. This entails the following considerations:

1. The waste intended for utilization must originate from a source of generation similar to that specified in the SOP.
2. Utilization processes must align closely with those outlined in the SOP.
3. The end-use or product derived from the waste must match the specifications delineated in the SOP.
4. Authorization is contingent upon thorough verification of details and the availability of minimum requisite facilities as stipulated in the SOP.
5. To maintain meticulous records of hazardous waste receipt for utilization, the CPCB mandates the issuance of a passbook akin to those used for recycling used oil, waste oil, and non-ferrous scraps.

Stakeholders required EPR registration for waste oil 

The EPR  for used oil applies to the following stakeholders –

• Producer
• Collection agents 
• Recyclers
• Used oil importers

All the above stakeholders will be registered on the centralized EPR portal. in contrast, the CPCB will be coming up with specific recommendations in due time. the selling method used by the producer can be anything like dealership retailing and e-retailing. collection agents collect waste oil from various sources and supply it to registered recyclers. recycler engages themselves in the process of recycling used oil and the used oil importers import it from the overseas market.

EPR Certificate process for waste oil 

The 2023 amendment in the hazardous waste management rules describes the rules regarding EPR  for used oil and prescribes various tasks as follows 

• Assessment and documentation 
• Filing of the EPR registration form 
• Cpcb assessment of an application 
• Issuance of EPR authorization 

Step 1 – registration and submission of application 

To access the portal, the applicant must first sign up and create login credentials. These credentials will be shared through the company email ID for authentication and secure access to the portal.

Step 2 – scrutiny of application and query resolution 

CPCB will examine documents submitted by the applicant on the online portal and inform the applicant in case of any shortcoming that will be conveyed to the applicant 

Step 3 – Final registration of EPR for waste oil 

The applicant will be registered in case of the complete application and CPCB will issue a registration number within the stipulated time. the validity of registration will be 2 years applicants will have to renew the registration in their specific categories after every 2 years.

stakeholders go through various stages which are mentioned below – 

• Registration of parties 

The producer, importer, collection agent, and recyclers need to register on the online CPCB portal.  the annual maintenance charges shall be levied by the CPCB.

Utilization process 

Used oil  

Used oil generated from service stations and hydropower generation units is collected and undergoes pre-treatment, centrifugation, and dehydration where the water from the oil and sludge gets separated the sludge generated will be sent to TSDF, and collected water will be treated in the ETP. the refined oil will be sold to tyre manufacturers and bitumen companies.

Off specification products 

Off-specification products [ shampoo/ cream/ detergent ] will be collected from the factories removal of shampoo/cream/ detergent from sachets/tubes/ bottles will be carried out at the unit primases. further plastic tubes/bottles will be shredded. plastic material and material [shampoo/cream/detergent] will get screened and the material will be sent to the recycler.

Plastic material will be washed and kept for drying on the mesh, effluent will be discharged to ETP. cleaned plastic material will be sold to granular manufacturer plants. colour will be added to the material [shampoo/cream/detergent] and then recycled shampoo shall be sold to car/floor washing solution manufacturers, recycled cream to tyre polishing vendors, and recycled detergent to tent houses to wash their tent cloth & carpets. 

Responsibility of stakeholders 

Stakeholders dealing in used oil need to fulfill the following responsibilities as per the compliance mentioned under the latest hazardous waste management rules this amendment considers the EPR regime for used oil some major responsibilities that need to be fulfilled are as follows –

• The producer needs to get EPR registration for used oil through the cpcb portal and fulfill their EPR target 
• Stakeholders need to make appropriate arrangements for the collection, transport, and storage of used oil.
• Producer, collection agent, importer, and recycler need to file annual and quarterly returns online using the portal before the deadline 
• Collection agents are responsible for the collection of used oil from the generator and supply to recyclers or producers 
• The recycler should use the recycling process as per cpcb guidelines.

Responsibility of producer 

Producer means any person or stakeholder irrespective of the selling technique used such as a dealer, retailer, or retailer who –

• Manufacturers and offers to sell base oil or lubrication oil domestically under its brand 
• Offers to sell lubrication oil domestically under its brand, using the base oil manufactured by other manufacturers or suppliers 
• Offers to sell imported base oil or lubrication oil domestically.

The producer must adhere to the following criteria –

• It is mandatory for a producer to first register for EPR through an online centralized portal developed by cpcb to conduct any business.
• Producers need to fulfil their EPR targets and must provide a completion certificate from waste processor units authorized by the  CPCB].
• Producers need to file annual returns on the CPCB portal on or before 30 june following the financial year to which that return relates.

Responsibility of collection agent 

Any person or stakeholder who collects used oil and supplies it to a recycler.

• The collection agent needs to upload information related to the collection of used oil from the generator to the registered recycler or producer on the CPCB portal.
• They need to register on the online CPCB portal.
• The collection agent must file quarterly and annual returns on the CPCB portal.
• Filing annual returns in the form provided on the portal on or before  30 june following the financial year to which the return relates.
• They don’t have a burden to fulfil their target.

Responsibility of used oil importer 

Any person or stakeholder who imports used oil.

• Oil importers need to register on the CPCB portal 
• Oil importers need to file quarterly and annual on the cpcb portal 
• Oil importer must meet their assigned EPR target.
• Filing annual returns in the form provided on the portal on or before 30 june following the financial year to which that return relates.
• Epr obligation for used oil importers shall be 100 % per cent of the used oil imported.
• Import of used oil is permitted for re-refining only.

Responsibility of recyclers 

Any person or stakeholder engaged in the process of recycling used oil. 

• Recyclers must comply with the hazardous waste management rule and the CPCB, SOP, and guidelines on used oil recycling.
• The recycler needs to register on the cpcb portal.
• The recycler needs to file quarterly and annual returns on the cpcb portal.
• Filing quarterly returns in the prescribed form on the portal on or before the end of the month succeeding the quarter to which the return relates.
• Filing annual returns in the form provided on the portal on or before  30 june following the financial year to which that return relates.

EPR target for stakeholders under the EPR regime 

Epr is the responsibility of any producer of base oil, lubrication oil, or importer of used oil addressed by the hazardous and other waste amendment rule 2023.

stakeholder will have to recycle a percentage weight of waste oil introduced by them in the Indian market using manufacturing or importing to meet the recycling target the stakeholder with an EPR target will be allowed to transact in EPR certificates these certificates will be generated by registered oil recyclers after they recycle the proportionate amount of waste oil in their facilities. 

Producers must meet the following EPR obligation only through registered recyclers with a registered facility and recycling capacity.

EPR target for producers and importers of base oil 

The producer and importer get the EPR target concerning the used oil sold by them in a particular financial year.

The object of setting up the EPR target is to recycle waste oil efficiently and avoid any build-up in circulation the EPR for used oil will be enforced from 1 April 2024.

The base oil and lubrication oil for the financial year 2022-2023 will determine the EPR target for the financial year 2024-2025. while the activities of the current financial year which is 2023-2024 will affect the EPR target for the financial year 2025 -2026 this target starts from 10 percent and gradually increases up to 60 percent. 

Epr target of base oil and lubricant oil producers for upcoming years .

Epr obligation of the Year                        recycling target 

2024 -2025                                              5% of  the base oil or lubrication oil sold or imported                    

                                                                    in the 2022-2023 

2025-2026                                              10 % of   the base oil or lubrication oil sold or                        

                                                                  imported in the year 2023-2024 

2026 – 2027                                             20 % of  2024-2025 sold or imported 

 

2027-2028                                               20 %  of 2025-2026 sold or imported 

 

2028 – 2029                                             40 %  of 2026 – 2027 sold or imported 

 

2029 – 2030                                             40 %  of 2027-2028 sold or imported.

 

Epr obligation for the year 2030 – 2031 [ y] onwards shall be  50 % of the base oil or lubrication oil sold or imported in the year [ y- 2].

Some raw material is lost in the operation stage and the yielded product is not exactly one hundred per cent of the raw material. 

The CPCB takes this into account and reduces the EPR target of the producer by a factor for the loss of base oil in the operational activities. 

EPR target for importers of used oil 

Any importer who is importing used oil is required to fulfill 100 % of their EPR obligation for the previous year’s import. importer has to recycle a hundred percent of his 2023 -2024 imports in the financial year 2024-2025. 

the import of used oil is only allowed for re-refining.

if any importer imports waste oil for any other purpose then the central pollution control board may cancel his registration and take appropriate action against such importer.

Post compliance 

• Renewal can be applied 60 days before the due date of EPR renewal 
• It takes up to 30 days to complete the registration process with cpcb / spcb for EPR
• The producer is required to fulfill their EPR target as per their certification on time to avoid penalties and cancellation.

Cancellation 

• Epr authorization is subject to cancellation by CPCB or SPCB respectively if any disparity is found.

EPR Certificate for waste oil 

The producer of used oil needs to purchase a certificate from the recycler whenever for recycling, it supplies the used oil to the recycler. the recycler should be registered on the portal of the CPCB. the certificate thus received is called the EPR  for used oil. The certificate has all the details regarding recycled waste oil with the quantity and the CPCB uses this quantity for reference when it wants to audit the EPR obligation of a producer.

Audit of EPR certificate for used oil

The producer and recycler both need to submit returns and reports on an annual and quarterly basis. The CPCB maintains all records and in case of any disparity, the lower figure shall consider there is also a provision for an environmental audit that verifies the figures submitted by the parties. The CPCB or any other authorized third party can audit the EPR obligation of concerned parties.

Limitation on purchase of EPR certificate for used oil 

If a producer has some epr obligation left unfulfilled the producer can purchase an additional amount of the epr certificate to the limit of that unfulfilled epr obligation and shall not exceed ten percent of the current financial year’s epr liability for used oil. The CPCB records every transaction the producer and importer can track their liabilities on the portal they purchase an EPR  certificate, the portal adjusts it against the used oil EPR liability of that producer.

Cost, and renewal of EPR  certification for used oil 

The producer needs to pay the certificates and annual maintenance received for the EPR authorization by the cpcb 

CPCB renews the EPR  target yearly, and the producer gets a new target. this new target depends on the overdue EPR obligation of the producer from the previous year the new sales made by the producer in the last year and the certificate purchased by the producer in that year the cpcb calculates this new target on these factors and the process to obliged against these new targets repeat once again every year.

Validity of EPR certificate 

The validity of the EPR certificate is typically two years from the end of the financial year in which it was issued.

Epr certificate description 

Each EPR certificate is required to have a unique number comprising the year of issuance, end product code, recycler code, and a unique identifier. These certificates are issued in denominations of 100, 200, 500, 1000, and 10,000 kilograms, as specified by the CPCB with the approval of the steering committee.

EPR certificate for producer 

The EPR target of the producer shall be reduced by a factor laid down by cpcb on account of operational loss of base oil.

The producer may fulfill their epr through the online purchase of epr certificate from a registered recycler.

A producer may purchase an EPR  certificate limited to its EPR liability of the current year plus any leftover liability of the preceding year plus 10 per cent of the current year liability.

EPR obligation shall have to be fulfilled by the producers and used oil importers by proportionately purchasing EPR certificates quarterly.

Exemption 

As soon as the producer and used oil importer purchase the EPR certificate, it will be automatically adjusted against its liability, priority in adjustment shall be given earlier liability and the EPR certificate so adjusted shall be automatically extinguished and cancelled.

Annual return submission 

Stakeholders must file annual returns in the prescribed form provided on the portal on or before 30 june following the financial year to which that return relates.

SPCB/PCC maintains details of each procurement of used oil and off-specification products as mentioned below –

• Address of the sender 
•  Date of dispatch 
• Quantity procured 
• Seal and signature of the sender 
• Date of receipt in the premises.
• Datewise utilization and date of procurement of used oil and off-specification products 
• Hazardous waste generation and its disposal shall be maintained including an analysis report of fugitive emission monitoring & effluent discharged.

CPCB shall maintain records addressed by the Waste Management 2 division about the hazardous waste generated, utilized, and disposed of in form 3 & file an annual return in form 4 of the HOWM rules 2016.

Stakeholders shall submit quarterly and annual information on hazardous waste consumed, its source, the product generated, or the resource conserved specifying the details like type and quantity of resource conserved to the concerned SPCB/ PCC. 

Document required for EPR for used oil

EPR  for used oil prescribes various responsibilities to different stakeholders. The EPR compliance is to fulfill these responsibilities and follow the conditions prescribed .stakeholder need  the following document to get authorization for used oil –

• Id and address proof of an authorized person 
• Business registration [ cin, moa, partnership deed, MSME] certificate as applicable 
• Pan and GST in detail
• Import-export code certificate 
• Details of manufacturing 
• EPR action plan to fulfill the EPR target 
• Detail regard manufacturing 
• Detail of  annual return
• Detail regarding the generation of used oil 
• Import detail of used oil [ for importer]

The above-mentioned documents are required to – 

• Receive the registration of stakeholder 
• Purchase the EPR certificate 
• Get EPR certification for waste oil 
• File return 

Fees for EPR registration of used waste oil 

The fee for waste oil EPR registration starts from  9,999 the application fee with the cpcb differs depending upon the quantum of waste generated by the respective applicants. the validity of the license is in a block period of 1-5 years. once the authorization is granted all the EPR certificate holders are required to fulfill their authorized EPR target within the time frame of the licensing period.

A legal consequence 

Any registered stakeholder furnishes false information or willfully conceals information for registration or return or report or information required to be provided or furnished in case of any irregularity the registration of such stakeholder may be revoked by the cpcb for a period up to 

5 years after allowing being heard and in addition, environmental compensation charges may also be levied.

Cpcb may charge registration fees and annual maintenance charges from the stakeholders seeking registration based on the volume of used oil generated, recycled or handled by them.

Verification of EPR authorization 

CPCB by itself or through a designated agency shall verify compliance of producers, used oil importers, bulk generators, collection agents and recyclers through inspection and periodic audit as deemed appropriate and take actions against violations.

Any fee for the verification and audit shall be charged by the cpcb from the concerned registered stakeholder.

Benefits of EPR authorisation for used oil

• Promoting sustainable waste management 
• Economic advantages 
• Environmental benefits /protection
• Reducing potential hazards 
• Lower the carbon footprints in the ecosystem 
• Regulatory compliance and legal protection
• Fostering circular economy 
• Reduce global climate change 
• Ecosystem and human health protection
• Efficient waste management
• Preventing improper disposal 
• Prevent greenhouse gas emission 
• Creates economic opportunities.

Conclusion 

The EPR for used oil is a legal compliance and all stakeholders must obtain EPR certification for used oil waste for their products as prescribed by the CPCB.

Epr means the responsibility of the producer of base oil or lubrication oil or importer of used oil to meet recycling targets only through registered recyclers.

Modalities 

Epr covers the following modes for managing the used oil

• Producing re-refined base oil or lubrication oil 
• Energy recovery