If you run industrial air compressors, you already manage two regulated streams: used compressor oil and oily condensate. Handle either one the wrong way and you invite fines, facility risk, and cleanup headaches. The good news: with a few disciplined habits, and the right condensate equipment, you can stay compliant without slowing production.

This quick guide translates EPA used-oil housekeeping and condensate do’s and don’ts into a practical, compressed-air plan. When you’re ready to act, stock what you need from IAP’s complete product catalog, including a full Clean Resources lineup, and standardize your buys.

→ See the full 40 CFR Part 279 PDF

What “Used Oil” Means in the Compressor Room (And What It Doesn’t)

Used oil includes the petroleum or synthetic lubricants you drain from rotary screw reciprocating air compressors after service. Once oil has been used and contaminated by normal operation, it must be stored and handled accordingly.

Two Easy Traps to Avoid

• The “Mixing” Trap: If you mix used oil with hazardous waste/solvent, you may turn the whole mix into hazardous waste. Don’t. Keep compressor oil streams clean and segregated.

• The “Condensate” Assumption: Oily condensate is not used oil. Treat it as wastewater that typically needs pretreatment before discharge to sanitary sewer and must never be routed to storm drains/surface water. This is where oil/water separators and smart/zero-loss drains pay for themselves.

Used-Oil Storage: The Simple Label-And-Contain Checklist

Put this on the wall near your lube station:

1) Label everything “Used Oil.” Any container/tank that holds used compressor oil should be clearly marked “Used Oil.”

2) Keep containers in good condition. No bulges, leaks, or compromised lids. Use compatible materials and keep bungs/caps closed when not transferring.

3) Secondary containment is smart. Even if your site doesn’t require an SPCC plan (more below), placing totes and drums in spill pallets or diked areas reduces cleanup, reporting, and slip hazards.

4) No floor drains to storm. Stage used-oil containers away from storm drains; keep spill kits within arm’s reach.

5) Transfer like a pro. Use dedicated funnels/hand pumps and label them “Used Oil Only” to avoid cross-contamination.

6) Receipts & records. Keep vendor manifests and pickup logs with your maintenance files.

Do You Need an SPCC Plan? (Fast Threshold Math)

EPA’s Spill Prevention, Control, and Countermeasure (SPCC) rule kicks in when your facility’s aggregate above-ground oil storage is 1,320 gallons or more (counting only containers ≥55 gallons). That tally typically includes:

• New compressor oil totes/drums
• Used oil totes/drums
• Hydraulic oil, gear oil, diesel, etc.

If you meet or exceed the threshold, you’ll need an SPCC plan, documented containment, and trained personnel. Even if you’re under the threshold, adopting secondary containment for used-oil areas reduces risk and keeps audits clean.

Compressor Condensate: What You Can Do (And What You Can’t)

Your compressors, dryers, and filters shed water that often carries trace oil.

That condensate:

• Cannot go to storm drains or surface water
• May go to sanitary sewer only if it meets your local POTW’s discharge limits (typically “oil & grease” limits)
• Usually requires pretreatment with an oil/water separator to consistently hit those limits, especially in multi-compressor plants and hot/humid seasons

The Low-Touch Setup That Works

• Zero-loss drains on receivers, filters, and dryers reduce air waste and keep condensate moving
• A properly sized oil/water separator removes oil before sewer discharge
• Sorbent media and service kits keep the separator performing across seasons
• Label your drain map and post a simple “what to do if the separator alarms” one-pager

Quick Compliance Wins for Maintenance & EHS

• Tag it today. Walk the compressor room and apply “Used Oil” labels to every relevant container/tank and fill port.
• Map your capacity. List all ≥55-gal containers (new + used). If your total ≥1,320 gal, start the SPCC conversation with EHS.
• Install or upgrade drains. Replace manual petcocks with zero-loss drains to cut air waste and stop the “we forgot to open it” floods.
• Standardize separators. One model, one set of cartridges, one PM routine across the plant.
• Hot-drain used-oil filters. Draining warm filters (per your procedures) before disposal keeps them out of hazardous-waste territory in most programs.
• Keep a spill cart nearby. Absorbents, PPE, labels, and a simple spill log live at the lube station.

→ Explore Air Treatment Products (Separators, Drains, Filters)

Buying Guide: The Right Gear for a Clean Audit

For Condensate

• Oil/water separators sized to your total compressor CFM and expected condensate load
• Zero-loss electronic drains at receivers, filters, and dryers (no air blow-by)
• Service media and changeout kits stocked on the shelf

→ Shop Clean Resources

For Used-Oil Handling

• Sealed drums/totes labeled “Used Oil”
• Spill pallets/containment under storage and transfer points
• Dedicated funnels/pumps labeled “Used Oil Only”
• Absorbents & spill kits staged within reach

For Refill and Changeovers

• OEM-compatible compressor oils in the correct viscosity/base stock for your machines and ambient 
• Clear labeling at reservoirs to prevent cross-fills

→ Shop Air Compressor Oil

Air Compressor Used Oil FAQs

Is compressor condensate the same as used oil?

No. Treat condensate as wastewater and pretreat it before sanitary sewer. Never route to storm drains.

Do our new-oil totes count toward the SPCC threshold?

Yes, SPCC tallies all above-ground oil containers ≥55 gal (new + used). If your aggregate is 1,320 gallons or more, plan accordingly.

What must the label say on storage containers?

Mark them clearly with “Used Oil.” Keep containers closed and in good condition.

Can I vent a separator or drain to a floor sink?

Only if it’s a sanitary connection and your effluent meets local limits. When in doubt, pretreat with a separator and check with your EHS/POTW.

Next Steps: Label → Contain → Pretreat → Standardize

1) Label every used-oil container today.

2) Count your ≥55-gal containers to confirm SPCC status.

3) Pretreat condensate with a right-sized oil/water separator and zero-loss drains.

4) Standardize oils, media, and drains across the plant and reorder through IAP for consistency.

→ Need help? Contact us here or call (414) 422-1717. A compressed air expert will determine the best products for your needs.

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Safety Note

• Perform all work only after proper lockout/tagout and full depressurization.
• Use OEM-rated components; never bypass safety devices.
• Electrical diagnostics should be handled by qualified personnel.