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How to tell if your used oil is a regulated waste

October 20, 2025

Whether you’re running a bustling auto shop, managing an industrial facility, or just changing the oil in your aging Micra, understanding regulations for used oil disposal in Canada can save you from regulatory headaches—and help protect the environment. Q&As in this entry include:

  1. What makes a used oil a “regulated waste?”
  2. How do you know if a used oil is contaminated enough to be considered hazardous?
  3. How should small-scale operators and homeowners dispose of small quantities of used oil?
  4. How should large-scale operators dispose of commercial or industrial quantities of used oil?
  5. Can used oil be recycled?
  6. By what processes can used oil be recycled?
  7. What are the penalties for improper used oil disposal in Canada?
  8. What sources of information do provincial governments provide?
  9. Where can you get help with used oil disposal and/or recycling?

1. What makes a used oil a “regulated waste?”

Used oil becomes regulated waste when it contains certain contaminants or exceeds specific thresholds under federal and provincial regulations.

CEPA waste oil rules become operative when your used oil is contaminated with substances like PCBs, heavy metals, or other hazardous materials above specified limits.

Think of it like the difference between a slightly dirty t-shirt and one that’s been through a chemical spill—both are dirty, but only one needs special handling.

2. How do you know if a used oil is contaminated enough to be considered hazardous?

This is where things get technical. (Might we suggest you get expert advice?) But meanwhile, classification as hazardous used oil in Canada typically depends on three things. They are:

  • Contamination levels. The oil contains PCBs over 50 ppm, has lead content, and/or a flashpoint below 60°C.
  • Mixed waste. The oil is mixed with solvents, antifreeze, and/or other chemicals.
  • Unknown origin. The oil cannot be traced to its origin and/or it cannot be determined if it has been mixed with something else.

Obviously, you can’t determine any of this just by staring at it (unless, of course, you’re Psychic Nikki).

But psychic prognostication notwithstanding, laboratory analysis is your best bet for large quantities of hazardous used oil in Canada, especially if you’re dealing with industrial processes or automotive oil recycling operations. And that’s where we can help—in a big way.

3. How should small-scale operators and homeowners dispose of small quantities of used oil?

Instead of highly regulated waste protocols, household quantities of used oil—we’re talkin’ less than 25 litres here—usually fall under less stringent “household hazardous waste” programs.

However, this doesn’t mean you can just toss used oil into the rubbish or pour it down a storm or kitchen drain.

Most provinces have robust household hazardous waste collection programs. Your local municipality likely has drop-off days or permanent facilities meant specifically for things like used motor oil, filters, and containers.

4. How should large-scale operators dispose of commercial of industrial quantities of used oil?

Unfortunately, exact requirements vary by province. (Surprise!) So, you really should get expert advice. But in general, as a large-quantity generator you’ll need to:

  • Register appropriately. Most provinces require registration for commercial waste oil generators.
  • Store properly. This includes secondary containment, appropriate labelling, and heeding maximum storage times.
  • Document carefully. Maintain detailed records for regulatory inspections.
  • Complete manifests. To track your waste from “cradle to grave” with proper documentation.
  • Use a licensed waste management company. Each province has its own rules & regulations for transporting hazmat within its boundaries. (Learn more.)

5. Can used oil be recycled?

Yes. Recycled oil might be used for its original assignment or for a completely different purpose. (E.g., used motor oil that’s been re-refined is available for sale at your local auto-care emporium, and it meets all CAPP and OEM performance standards. Or in industry, certain oils can be filtered onsite and used over again.)

Bear in mind, while non-hazardous used oil can be sent to a recycling centre without any drama, oil deemed hazardous (per Q.2) will first need hazardous waste treatment.

Factoid: To make one litre of OEM automotive oil, it takes approximately 159 litres of crude oil  (see source). In contrast, it takes approximately 0.05 litres of recycled oil to make one litre of OEM-grade automotive oil (see source). That means it takes 3,180 times more crude oil to make a litre of OEM-grade oil than it does to do the same with the recycled stuff. (We did the math ourselves. And we have a math major on staff who keeps us honest.)

6. By what processes can used oil be recycled?

Used oil can be reconditioned onsite, re-refined, or processed & burned.

  • Reconditioned onsite. In this process, impurities are removed from the used oil. While this doesn’t restore the used oil to its virgin condition, it can nevertheless be reused for its original purpose, and doing so it can be recycled more than once.
  • Re-refined. This involves treating the used oil as if it were virgin, similarly removing impurities so that it can be used as a base stock for a new lubricating‑quality product. This also can be done more than once.
  • Processed & burned. Here, water and particulates are removed so that the used oil can be burned, providing about as many BTUs as normal heating oil. This form of recycling is not as preferable as (1) or (2) because the used oil is only reused once

7. What are the penalties for improper used oil disposal in Canada?

In ascending order of woe, penalties for improper used oil disposal in Canada start at simple warnings, can rise to compliance orders, surge to significant fines, and in the case of serious violations, explode into criminal charges that can greatly interfere with your planned retirement in Parksville.

Plus, there’s the environmental liability aspect—cleanup costs for soil and groundwater contamination can be astronomical.

8. What sources of information do provincial governments provide?

For small household amounts of used oil, your provincial environmental agency likely offers guidance documents. (You just have to ask, and your friendly postie will deliver one in due course.) They also might have a telephone helpline (your call is important to them).

For entities dealing with commercial or industrial amounts of used oil, consider consulting with:

  • Environmental compliance consultants
  • Licensed waste management companies (that would be us)
  • Your industry association
  • And if things really go south, your local environmental lawyer

9. Where can you get help with used oil disposal and/or recycling?

Whether you’re dealing with a few containers of used motor oil or mega amounts, the key to compliance is understanding your specific situation and obligations.

Some people might counsel that when in doubt, err on the side of caution, and treat all your used oil as regulated waste. But these soi-disant “experts” probably aren’t footing your waste management bill.

I.e., spuriously classifying any waste as hazardous when it isn’t, is a waste of time, money, and resources that would be better spent building your business (or saving up to buy that pied-à-terre in Anna Maria Island).

Get expert help!

Hazardous Waste Experts can help you with all facets of used-oil management, safely and efficiently collecting and transporting your used oil to ensure that you’re in full CEPA compliance, whether hazardous or non-hazardous.

Whether you simply require regular container pick‑ups or need an emergency pump-out, contact us today or call 866-430-9421.

And thank you for reading our blog!

Disposal of hazardous waste doesn’t have to be painful.