The Ministry of Development is preparing new regulations on used oil management. A report entitled “Used Oil Management - Reform Assumptions and Bill Proposals”, containing a draft amendment to the act and presenting solutions aimed at limiting illegal burning of used oils and reducing the hidden economy in the oil industry. The need for new regulations stems from the fact that for many years Poland has been at the forefront of the European Union with the most polluted air.
Background
According to the data of the Ministry of Development, due to the functioning of the hidden economy in the area of waste oils and the lack of payment of the product fee, the annual loss of the state budget amounts to approximately PLN 150 million. What's more, tens to 100,000 tonnes of oils are burned every year in heating installations which do not comply with the regulations, which contributes to the emission of life-threatening substances.
The essence of the developed project, in cooperation with the UN Initiative - UN Global Compact Network Poland (GCNP), government administration - the Ministries of Development, Climate and Finance and the Energy Regulatory Office, as well as non-governmental organizations and representatives of the fuel industry, is to seal the existing waste oil management system and prevent illegal burning of used oils.
Lubrication package
On the basis of the report, an amendment was proposed to a number of legal acts forming together a whole called the lubrication package, under which solutions were presented to ensure an effective system of waste oil collection and supervision over their proper management from the point of view of environmental protection, a.o.:
- extending the obligation to obtain a concession to produce liquid fuels and a concession to trade liquid fuels with foreign countries,
- covering the receivables resulting from the product fee with security required for the above concessions,
- establishing a nationwide used oil collection system contributing directly to increase the level of used oil recovery,
- introducing of a deposit fee as a mechanism to stimulate the collection of waste oils from lubricant consumers,
- supplementing and clarifying the principles of waste oil management.
Implementation
Preparation for the entry into force of new regulations requires in particular:
- identifying at an early stage the obligation to hold the required licence,
- proper classification of used or used oils as covered by new obligations
- adapting the business activity to the new rules of waste oil management.
PwC’s support
PwC offers support in the process of preparing the enterprise for new regulations. Our services aim to support the Clients through the following stages:
- Classification analysis - based on our experience gained during similar projects, we are able to provide support in the process of classification analysis, the purpose of which is to identify the catalog of products covered by new obligations
- System analysis - our support is aimed at determining the current possibilities in the field of data collection and transfer, as well as at the implementation of solutions that will enable the fulfillment of new requirements (system adaptation / outsourcing of the reporting process).
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