Waste cooking oil and waste engine oil: which rules apply

Two oils turn up in almost every commercial waste conversation, and they are treated very differently in law. Used cooking oil from a fryer is non-hazardous waste with a market value. Used engine oil from a vehicle or machine is hazardous waste with strict paperwork. The mistake that causes the most trouble is mixing the two in one drum. This guide explains which rules apply to which oil, what you need to do as a producer, and what carriers and collectors need to have in place. It is written for England and Wales, with notes where other nations differ.

Two oils, two sets of rules

Both oils are waste once you no longer want them for their original purpose. After that, the difference is classification.

The asterisk on an EWC code marks a hazardous entry. If you are unsure how to read the codes, see EWC codes explained.

Waste cooking oil

Used cooking oil is controlled waste. A restaurant or takeaway that produces it has a duty of care under section 34 of the Environmental Protection Act 1990, and must pass the oil only to a registered waste carrier. That carrier, which is usually a specialist oil collector, will normally supply a container, collect on a schedule, and process the oil for use as a biofuel or in other products.

Because cooking oil from catering is also an animal by-product (ABP), the collector must handle it within the ABP regime, which is a separate set of rules overseen in England by the Animal and Plant Health Agency. In practice you need to know three things about your collector: they hold a waste carrier registration, they are approved or registered for ABP handling where required, and they can tell you where the oil is processed. We cover the kitchen side of this in restaurant and hospitality waste.

Do not pour used cooking oil down a drain, even in small amounts, and do not put it into a general waste bin where it can leak. Fat and oil cause sewer blockages, and sewer misuse is an offence under the Water Industry Act 1991. Oil getting into surface water drains can also lead to an offence under the Environmental Permitting Regulations, since discharging polluting matter to controlled waters without authority is prohibited.

Householders and small cafés

Householders can usually take small amounts of used cooking oil to a household waste recycling centre, if the site accepts it. Check with the council. A very small food business that produces only a few litres a month may find that a collector will not visit, or that a transfer to the council's trade waste service is needed. Whatever the volume, a business has a duty of care, and the transfer needs a note.

Waste engine oil

Used engine oil, gear oil, hydraulic oil and similar lubricants are hazardous waste because of the contaminants they pick up in use, including heavy metals and polycyclic aromatic hydrocarbons. The standard classification is as an absolute hazardous entry in chapter 13 of the List of Wastes. This includes oils from cars, vans, lorries, farm equipment, generators and plant.

If you produce it from a business, the Hazardous Waste (England and Wales) Regulations 2005 apply. Whenever waste engine oil leaves your premises you need a consignment note, and the note must be completed in full: producer, carrier, consignee, waste code, quantity, and the hazard properties. A standard waste transfer note is not enough, and using one is itself a breach. The practical differences are covered in waste transfer note vs consignment note, and the wider rules are in hazardous waste regulations in the UK.

For garages and workshops with regular collections, a multiple consignment note (the hazardous equivalent of a season ticket) is often used where the waste, carrier and destination stay the same. It still needs each collection recorded. Check current Environment Agency guidance, since the details of what is allowed on a multiple note are set out there.

Storing waste oil on site

Storage rules matter more than most small businesses expect, because the main enforcement risk with oil is not paperwork but pollution.

• Containment. In England, the Control of Pollution (Oil Storage) (England) Regulations 2001 apply to storage of oil above a set capacity in industrial, commercial and institutional premises. They require secondary containment so that a leak does not reach a drain or watercourse. Check the current regulations and the Environment Agency guidance for the capacity threshold and containment standard that apply to you, and for how Wales, Scotland and Northern Ireland handle the same issue.
• Location. Keep drums away from drains, watercourses and soakaways. A bunded area, a drip tray under taps and a spill kit nearby are normal expectations.
• Labelling. Label containers clearly. Mark waste engine oil as hazardous, and mark cooking oil containers separately so no one mixes them by accident.
• Security. Keep containers locked or in a secure compound. Oil theft, and deliberate dumping by others, are both real risks.
• Duration. Hazardous waste should not sit on site indefinitely. Agree a regular collection, and treat a full drum as a trigger to call the collector.

If you collect waste oil from customers at your premises, for example a garage that accepts oil from DIY customers, check whether you need a registration or exemption. Accepting other people's waste is a waste activity in its own right.

What carriers and collectors need

Whoever collects oil from you is a waste carrier, and they need to be registered as an upper tier carrier if they carry other people's waste as a business. See upper tier and lower tier registration for the distinction. For hazardous waste, the carrier's registration is only one part of the picture. They also need to be able to carry the specific waste type safely, and in many cases to meet the rules on the carriage of dangerous goods by road (ADR) where the oil falls within them. Waste engine oil is often not classed as a dangerous good for transport, but other waste such as fuel contaminated oil can be. Ask your collector to confirm.

You should also check the destination. Used oil is usually taken to a permitted facility where it is processed. The consignment note should name the receiving site and its permit number. If your collector will not tell you where the oil goes, treat that as a warning sign.

Checking a carrier takes only a few minutes. The steps are in how to search the EA waste carrier register.

Mixed oils and awkward cases

Real workshops generate messy mixtures, and several cases deserve a note.

• Oil and water mixtures. Interceptor and separator contents, and oily washings, have their own entries in the List of Wastes. Whether they are hazardous depends on the content. Ask a competent person to classify them.
• Oil filters, rags and absorbents. These carry residual oil and are normally hazardous as a result. Keep them in a separate labelled container.
• Contaminated containers. Empty drums that held hazardous oil are generally still hazardous until cleaned. Return them to the supplier where you can.
• Using waste cooking oil as vehicle fuel. Running a vehicle on filtered used cooking oil raises fuel duty questions with HMRC as well as environmental ones. Take specialist advice and check the current HMRC guidance before you try it.
• Oil from farm machinery. The same hazardous waste rules apply, and the farm has a duty of care. Do not assume that farm status exempts waste engine oil from consignment notes.
• Burning oil on site. Small waste oil burners for heating a workshop are permitted only within strict conditions on size, fuel and emissions. Check the current Environment Agency guidance before installing one.

Paperwork and record keeping

For cooking oil, use a waste transfer note or a season ticket for repeated collections, as described in season tickets for waste transfers. Each note must record the waste description, code, quantity, date, both parties, and the carrier's registration. Keep copies for at least two years.

For engine oil, keep the consignment notes for at least three years, and keep any returned confirmation of receipt. A producer who has a running record can answer an inspector in minutes: how much oil you produced, when it was collected, by whom, and where it went. A producer who cannot may be asked to explain a discrepancy between purchases of oil and disposals.

If you produce both oils, keep the files separate. A common mistake in a mixed kitchen and workshop operation, such as a hotel with a plant room, is to file everything together and then fail to spot that the hazardous consignment notes are missing.

Practical steps for the next collection

1. Identify each oil you produce, and give it its own labelled container.
2. Check each collector's waste carrier registration and, for cooking oil, their ABP approval.
3. Use a consignment note for waste engine oil and a transfer note for cooking oil.
4. Check that your storage has secondary containment and is kept clear of drains.
5. Ask where each oil goes, and keep the answer with your records.
6. Do not mix oils, and do not mix oil with other waste.
7. Review your classification and paperwork once a year, or whenever you change supplier or process.