Ed. note: This is part 3 of a series of articles on our experiences using AI platform chatGPT to write and answer questions about ESG. The first installment focused on seeing if the AI app would copy my writing style in producing a blog article. For the second installment, I asked the bot to write a corporate ESG report.
In this challenge, I commanded chatGPT to tell me about two different U.S. regulations – one federal environmental regulation promulgated in the 1990s and one still-proposed SEC regulation (I’m betting you know which one that is). To keep the article’s length reasonable, I am splitting it into two installments. Today, I look at EPA and tomorrow I’ll cover the SEC proposal.
Let’s jump right in.
EPA’s Used Oil Regulation
EPA promulgated its used oil management regulations (40 CFR 279) waaaaay back in 1992. Wow – has it really been that long? I digress… In these regulations, used oil is presumed to be recycled and is not considered a hazardous waste except in certain circumstances. EPA waste management regulations work like this: EPA crafts regulations then states develop their own regulations that are at a minimum equivalent to EPA’s in order to obtain state-level primacy for implementation and enforcement. There are times when EPA will take the reins in certain situations, but day-to-day management is typically a state activity. Another important thing for my test of chatGPT is that states can choose to develop more stringent regulations than EPA’s, which can be difficult for companies, counsel and auditors.
I asked the bot if used oil is a hazardous waste – intentionally avoiding any prompts about EPA or state level requirements. It responded:
“Used oil is considered a hazardous waste if it is contaminated with certain pollutants. These pollutants can include chemicals, heavy metals, and other materials that can be harmful to the environment and human health. However, if used oil is properly filtered and re-refined, it can be recycled and reused as a lubricant, fuel, or other industrial product. It is important to properly dispose of used oil to prevent potential environmental hazards.”
Technically correct for both EPA and state requirements, but hardly helpful. I told it to continue:
“As part of proper disposal, used oil should be collected and stored in containers that are designed to prevent leaks and spills. It should then be transported by a licensed hazardous waste hauler to a facility that is authorized to handle and dispose of hazardous waste. Some states have regulations that require the recycling of used oil, and there are many companies that specialize in the collection, transportation, and recycling of used oil.
It’s also worth noting that used oil can also be used as fuel in some cases, such as in industrial boilers or power plants, and this is a common and safe way to dispose of used oil.
In summary, used oil can be considered hazardous waste if it is contaminated, it should be properly collected, stored, transported, and disposed of or recycled to prevent environmental hazards.”
Again, technically correct (mostly), only slightly more helpful and a mere a wave of the hand to the EPA-state regulatory dynamic that is critical in used oil regulations. Still pretty unsatisfactory- but only because I already know enough about the subject to realize meaningful gaps exist in this explanation.
State Used Oil Regulations
Time to get more specific – I asked “is used oil is a hazardous waste in California and Texas.” Hint: in California, yes but not in Texas. Here is the bot’s response:
“In Texas, used oil is considered a hazardous waste if it is contaminated with certain materials, such as lead, PCBs, or pesticides. In California, used oil is considered a hazardous waste if it meets the definition of ‘waste oil’ as defined in California Code of Regulations, Title 22, Section 66261.8. This includes oil that is contaminated with chemicals, pollutants, or other materials that make it a potential hazard to human health or the environment.”
Okay – this is slightly better. It even offered me a California regulatory citation – nice! But I’m still unsatisfied so I told it to continue and be more specific:
“In both Texas and California, the management and disposal of used oil is regulated by the respective state’s environmental agency. In Texas, it is the Texas Commission on Environmental Quality (TCEQ) and in California, it is the California Department of Resources Recycling and Recovery (CalRecycle). These agencies have specific guidelines and regulations for the storage, transportation, and disposal of used oil, and businesses and individuals must comply with these regulations in order to avoid penalties or fines.
In general, it is important for anyone who handles used oil to properly manage and dispose of it in order to protect the environment and human health. This includes properly storing and labeling used oil containers, and ensuring that any used oil is transported and disposed of by a properly licensed and permitted facility.
In Texas, used oil is considered a hazardous waste if it is contaminated with certain materials, such as lead, PCBs, or pesticides, as per TCEQ regulations. The TCEQ also has regulations for the storage, transportation, and disposal of used oil, which include:
- Used oil must be stored in containers that are in good condition, properly labeled, and kept closed when not in use.
- Used oil must be transported in containers that are in good condition and properly labeled.
- Used oil can only be transported and disposed of by a facility that is properly licensed and permitted by the TCEQ.
In California, used oil is considered a hazardous waste if it meets the definition of ‘waste oil’ as defined in California Code of Regulations, Title 22, Section 66261.8. The CalRecycle also has regulations for the storage, transportation, and disposal of used oil, which include:
- Used oil must be stored in containers that are in good condition, properly labeled, and kept closed when not in use.
- Used oil must be transported in containers that are in good condition and properly labeled.
- Used oil can only be transported and disposed of by a facility that is properly licensed and permitted by CalRecycle.
In both Texas and California, it is the responsibility of the generator of used oil to ensure it is managed and disposed of in accordance with the regulations. Failure to comply with the regulations can result in penalties or fines.”
My Assessment
I was (minimally) satisfied with this as a general explanation – other than it not providing a citation to the Texas regulations – but it certainly isn’t thorough enough to be used on a stand alone basis by a lawyer, company environmental staff or auditor.
Yes, some will criticize the general nature of my command, but it is a reflection of a typical user who would ask that question of chatGPT. Knowledgeable and experienced environmental regulatory practitioners are likely to go directly to the regulations rather than relying on a “third party” to interpret applicable requirements.
I consider this a C+/B- but only after the fourth try. Tomorrow, we’ll see how it does with SEC’s climate disclosure proposal which is so current chatGTP isn’t even supposed to know about it.
