Hawaii DOH Fines Used Oil Company $19,500 for Permit Violations

$19,500 is a modest fine. What it revealed was not.

During a two-day inspection of Philip Services Hawaii's processing facilities in August 2013, state environmental regulators discovered the company had fundamentally changed how it handles used oil without notifying anyone at the state. The system designed to recover oil and waste fuels from oily water for reuse had been quietly reconfigured to absorb those components for disposal instead.

The Hawai'i Department of Health's Solid and Hazardous Waste Branch filed a notice of violation on Feb. 24, 2014, charging Philip Services Hawaii, LTD (PSH) with two counts under the state's used-oil rules. The total penalty came to $19,500.

The more consequential count alleged that PSH significantly altered its standard operating procedures without notifying DOH. Those procedures carry the weight of a permit condition: any changes require DOH approval. What inspectors found on Aug. 19 and 20, 2013, at the company's paired facilities at 91-410 and 91-416 Komohana St. in Kapolei, Oahu, was a system operating outside its approved version. "The altered procedures changed the system from a recycling system into a disposal system," DOH stated, raising the risk that hazardous waste intended for recycling could have been disposed of without proper controls.

The second count was procedural but consequential in its own way: PSH failed to keep its emergency coordinator list current. That list is the first point of contact when a spill or fire occurs at a used-oil processing site. An outdated list means delayed response.

PSH has operated at the two Komohana Street addresses since July 2001. Its operations span used-oil transport, processing and recycling, meaning material collected from generators across the state moves through those Kapolei facilities. Under the notice, PSH had 20 days to request an administrative hearing to contest the violations and penalty.

Used-oil mismanagement carries measurable downstream risk: improper disposal can contaminate soil and groundwater, and uncontrolled accumulation at processing sites raises fire hazard. For businesses and households on the Big Island, whether from commercial auto service, farm equipment maintenance, or a DIY oil change, using a DOH-permitted hauler is the first line of protection.

Commercial generators can contact permitted islandwide haulers including Hawai'i Petroleum at 808-961-2661, Unitek Solvent Services at 808-935-8180, and AKW Environmental at 808-430-2339. To verify a hauler holds a current permit, the DOH Solid and Hazardous Waste Branch maintains an updated list of permitted used-oil transporters and processors through the department's official website.

Households can drop off used motor oil, gear oil, transmission fluid, and hydraulic oil at seven Big Island collection sites: Lex Brodie's Tire and Service Center in Hilo, Pa'auilo Village Service, Kealakehe High School Auto Shop, O'Reilly Auto Parts in Kona, CarTow Kohala in Hāwī, RPM Kawaihae, and South Point U-Cart in Ocean View. Calling ahead to confirm current hours and accepted quantities is recommended before making the trip.