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Committee reviews proposal to raise used‑oil fee to stabilize recycling fund

September 16, 2025 | 2025 Utah Legislature, Utah Legislature, Utah Legislative Branch, Utah


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Committee reviews proposal to raise used‑oil fee to stabilize recycling fund
The Natural Resources, Agriculture and Environment Interim Committee on Sept. (date not specified) heard a proposal to raise the statutory used‑oil fee to restore a nearly depleted recycling fund. Doug Hansen, director of the Division of Waste Management and Radiation Control, told the committee the fee was set at 4¢ per quart in the 1990s and “that fee has not changed since 1994.”

The fee supports a program that regulates collection centers, transporters and transfer facilities, issues permits and grants, and pays staff to inspect and run outreach. “A single gallon of oil can pollute a million gallons of water,” Hansen said, noting the program recycled more than 340,000 gallons of used oil last year and the state has roughly 400 collection centers.

The division reported the used‑oil fund has been drawn down in recent years. Hansen said a rise to 7¢ would bring the fund near breakeven next fiscal year and an 8¢ fee could restore a modest cushion. He also recommended moving the fee into the department fee schedule so it can be adjusted annually through a stakeholder process rather than only by statute.

Committee members pressed for clarifications about which fluids the fee covers. Representative Chu asked, “Is this all oil? Are we just talking motor oil?” Hansen answered that the fee applies to oil ‘‘used in an engine’’ and said he would verify whether hydraulic fluids are included. Hansen also said the division would explore grant‑funded collection days for farmers and a possible permit change to let agricultural producers haul larger quantities without multiple trips.

No formal vote was taken. The committee asked staff and the director to return with draft language that clarifies covered fluids and addresses timing and drafting details, with the possibility of bringing final language back in October or November.

The discussion noted program capacity — the used oil program is run with about 4.5 full‑time employees — and the fiscal challenge: the fund’s balance had dropped to about $8,000 at year end and relies on other revenue now to operate.

Committee chairs previously opened a bill file to consider used‑oil fee amendments; the director was asked to coordinate with staff on drafting and timing.

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