To facilitate the recycling of used lubricating oil materials in Alberta, the Alberta Used Oil Management Association (AUOMA) collects funds from companies that sell or import oil, oil filters, and oil containers into the Alberta market. These funds, called Environmental Handling Charges (EHCs), are used to fund AUOMA’s used oil recycling materials program, which uses the funds to encourage the collection and recycling of used oil materials.

To encourage the recycling of used oil materials, AUOMA pays a financial recycling incentive called a Return Incentive (RI) to companies that register with it and are approved by the Government of Alberta to process used oil materials. These companies are called registered processors, and they are responsible for working with and paying any companies that they have agreements with to collect and bring used oil materials to their facilities. In other words, AUOMA pays registered processors for the materials that they recycle, and these processors in turn pay registered collectors for the materials that they collect and bring to them for recycling.

Alberta’s registered processors
Alberta’s registered collectors

New 2018 Manual for Registered Collectors and Processors

The Manual for Registered Collectors and Processors was updated in December 2017 to capture changes to the incentive program for recycling used oil materials in Alberta and the guidelines Registered Collectors and Processors must follow to participate. The changes, announced in the fall of 2017, include updates that cover how to be compensated based on processed (rather than collected) weight. The updated manual is effective January 1, 2018 and will help organizations interested in collecting and/or processing used oil materials to:

  • Register to become a collector or processor.
  • Collect the data needed to document recycling of used oil materials.
  • Complete the forms needed for record keeping and claims submission.
  • Submit claims for payment.
  • Comply with the program rules and regulations.

The updated manual is effective on and after January 1, 2018: Manual for Registered Collectors and Processors

New 2018 Return Incentive Rates and Forms

Over the past six months, AUOMA has been working with Registered Collectors and Registered Processors on strategies to balance its books and introduce additional transparency into the program.

Effective January 1, 2018, AUOMA will be:

  • Reducing the return incentives (RI) rate for used lubricating oil by 15 per cent across all zones
  • Paying on processed weight (rather than collected weight)
  • Increasing the RI rates on used oil plastic containers and filters to account for the estimated average difference between processed weight and collected weight for these materials

These changes mean that for all materials picked up on or after January 1, 2018, all Registered Collectors will need to complete the new 2018 material-specific Collector Zone Summary Form and provide a copy of it to the Processor of those materials.

Please visit these links for more information:
Letter to Registered Collectors and Processors
2018 Return Incentive Rates
What’s New for 2018 – Collector Zone Summary Forms
Frequently Asked Questions

Register to Become a Collector

Companies that want to collect used lubricating oil materials for Alberta’s used oil material recycling program are required to register with AUOMA. Registered collectors must disclose which used oil materials they intend to collect. Registered collectors are responsible for establishing and maintaining agreements with Alberta’s registered processors. Only materials collected and recycled by registered collectors and registered processors are eligible for funding by AUOMA.

Before you can become a registered collector, you must:

  • Apply to AUOMA to become a registered collector by completing and submitting a fully complete application form. Incomplete application forms will not be accepted.
  • Review the AUOMA Manual for Registered Processors and Collectors, which provides details on AUOMA’s program and outlines the operational requirements that must be met by registered collectors.
    Effective through December 31, 2017: Manual for Registered Processors and Collectors
    Effective on and after January 1, 2018: Manual for Registered Collectors and Processors

Recycling Incentives

Financial recycling incentives called Return Incentives (RIs) are paid to AUOMA-registered processors. Only government-approved processors can become AUOMA-registered processors . The amount of the RI paid to processors is based on the quantity (kilograms or litres) of used oil materials received at the processor’s facility multiplied by the applicable zone rate for the zone in which the material was collected. There are six zones in Alberta, and the RIs paid on used oil, oil filters, and oil containers differ by zone. Please note that new zone rates will come into effect on January 1, 2018.

Only used oil material collected and processed by AUOMA-registered collectors and AUOMA-registered processors is eligible for RIs. Processors wishing to collect materials directly must also apply to become a registered collector. Processors may also receive used oil materials through third party registered collectors. AUOMA does not regulate or become involved in the agreements established between registered collectors and registered processors, including terms of payment.

The Market

Alberta’s used oil materials recycling program is an industry-driven market. This means that companies that sell or import oil materials into Alberta’s market pay to incent the collecting and recycling of these materials when they reach the end of their use. The role of AUOMA is to facilitate the recycling of used oil materials. To do this, it offers opportunities for Albertans to learn about recycling used oil materials and pays registered processors financial incentives to collect and process used oil materials.

The purpose of paying processors financial incentives to recycle used oil materials is to encourage them to implement the most efficient processes possible to collect and then recycle materials from around the province. Processors work with registered collectors to find sources of used oil materials. The more efficient the overall collection and recycling process, the more profit they will make from the recycling incentives.

In 2016, more than 153 million litres of lubricating oil, 8.6 million filters, and 43.9 million oil containers were sold into Alberta’s market. In the same year, more than 87 per cent of the oil was recovered along with more than 86 per cent of oil filters and 93 per cent of oil containers. Alberta’s collectors play an important role in ensuring that as many of these materials as possible are collected and delivered to companies that process them for recycling.