EPA Proposes F037 Hazardous Waste Delisting: What It Means for Refineries

If your facility manages petroleum refinery sludge classified under the F037 listed hazardous waste code, a proposed regulatory action published in the Federal Register on March 26, 2026 deserves your immediate attention. The U.S. Environmental Protection Agency (EPA) has proposed granting a hazardous waste delisting petition submitted by WRB Refining LP, located in Borger, Texas — and the precedent it sets may open the door for similar petitions across the refining industry.

This article breaks down exactly what changed, what it means for compliance, and how your environmental management system should respond — whether you're watching from the sidelines or preparing your own delisting petition.

What Is the EPA Proposing — and Why Does It Matter?

Published at 40 CFR Part 261, the proposed rule (Federal Register Docket No. 2026-05876) responds to a petition by WRB Refining LP to exclude up to 700 cubic yards per year of F037-listed waste — specifically, petroleum refinery sludge solids removed from stormwater storage tanks — from the federal list of hazardous wastes under the Resource Conservation and Recovery Act (RCRA).

If finalized, this would be a continuous delisting, meaning the exclusion applies on an ongoing basis rather than a one-time batch, subject to conditions EPA specifies in the final rule. Delisted waste would be managed as non-hazardous solid waste under RCRA Subtitle D — a dramatically lower regulatory burden than Subtitle C hazardous waste requirements.

Citation hook: Under RCRA Section 3001(f) and 40 CFR §260.20, any person may petition EPA to exclude a specific waste generated at a particular facility from the lists of hazardous wastes if they can demonstrate the waste does not pose a hazard.

This is not a blanket exemption for all F037 waste. The delisting is facility-specific and waste-stream-specific — a critical distinction every environmental manager must understand.

Understanding F037: The Listed Waste at the Center of This Action

The F037 hazardous waste code applies to petroleum refinery primary oil/water/solids separation sludge — the residual material generated during the separation of oil, water, and solids at the primary stage of wastewater treatment. It is listed as hazardous under RCRA due to its potential to contain toxic constituents including benzene, toluene, ethylbenzene, xylene (BTEX compounds), and polynuclear aromatic hydrocarbons (PAHs).

F037 waste is classified as a "listed" hazardous waste, which means it carries the hazardous designation automatically — regardless of actual constituent concentrations — based solely on the process that generated it. This is in contrast to "characteristic" hazardous wastes (D-codes), which are hazardous based on measurable properties like ignitability or toxicity.

The significance: listed hazardous wastes can only escape RCRA Subtitle C regulation through a successful delisting petition. There is no characteristic-based "clean bill of health" shortcut. That's what makes this proposed rule — and the delisting pathway generally — so consequential for refineries managing F037 or F038 sludge.

The Delisting Petition Process: How WRB Refining Got Here

WRB Refining LP's petition followed the standard RCRA delisting process under 40 CFR §§260.20 and 260.22, which requires petitioners to:

1. Characterize the waste using rigorous sampling and analytical testing to demonstrate that hazardous constituents are not present above levels that could pose a risk to human health or the environment.
2. Demonstrate no reasonable basis for classifying the waste as hazardous based on the factors that caused it to be listed.
3. Propose conditions for ongoing compliance, including verification testing protocols.

EPA's review evaluates whether the petitioned waste could exhibit any of the four hazardous characteristics (ignitability, corrosivity, reactivity, toxicity) or pose a hazard for any other reason — even after considering the factors originally cited in the listing.

The proposed grant for WRB Refining covers up to 700 cubic yards per year of F037 sludge solids destined for disposal in a Subtitle D municipal solid waste landfill (MSWLF). This volume limitation is a standard condition EPA uses to ensure the delisting reflects the actual waste-generation rate that was characterized during the petition process.

Key Regulatory Details: Dates, Deadlines, and Conditions

⚠️ Action Required: If your facility wishes to submit comments on this proposed rule, the public comment window opened March 26, 2026. Comments are typically due 30 days from publication — meaning the window closes approximately April 25, 2026. Confirm the exact deadline at Regulations.gov using Docket No. 2026-05876.

What Changes If EPA Finalizes This Delisting?

For WRB Refining LP specifically, approval of this petition would produce significant operational and cost relief. Subtitle C hazardous waste requirements — including manifest requirements, use of permitted treatment, storage, and disposal facilities (TSDFs), and Land Disposal Restriction (LDR) compliance under 40 CFR Part 268 — would no longer apply to the delisted waste stream.

The waste would instead be managed under: - RCRA Subtitle D (solid waste regulations) - Applicable state solid waste laws in Texas (Texas Commission on Environmental Quality, TCEQ) - Standard Subtitle D landfill disposal protocols

However, conditions attached to the delisting — including verification testing, volume caps, and recordkeeping — remain legally enforceable. Failure to comply with delisting conditions can result in EPA reinstating the hazardous waste classification.

Citation hook: According to EPA's RCRA delisting program, facilities granted a delisting must maintain ongoing verification testing records demonstrating the waste continues to meet the criteria under which the exclusion was granted — non-compliance can void the exclusion retroactively.

Practical Compliance Guidance: 5 Steps Your Facility Should Take Now

Whether you operate a petroleum refinery managing F037 sludge or any other facility with a listed hazardous waste stream, this proposed rule is a timely reminder to audit your waste management practices. Here's what I recommend based on my work with 200+ clients across regulated industries:

Step 1: Review Your Current F037 (or F038) Waste Classification and Volumes

Pull your hazardous waste manifests and annual hazardous waste reports. Identify whether F037 or F038 waste appears in your waste stream inventory. If you generate these wastes, quantify annual volumes — the 700 cubic yard threshold in the WRB petition provides a useful benchmark for whether a delisting petition may be cost-justified at your facility.

Step 2: Evaluate Whether a Delisting Petition Is Viable for Your Facility

A delisting petition is a significant investment — analytical testing, petition preparation, legal review, and EPA processing time (often 12–24 months or longer) all factor in. However, the ongoing compliance cost savings from exiting Subtitle C can be substantial. Facilities generating consistent volumes of listed waste with demonstrably low constituent concentrations are the best candidates.

Key questions to ask: - Are constituent concentrations in the waste consistently below Toxicity Characteristic Leaching Procedure (TCLP) thresholds? - Is the waste generation process stable and predictable? - Does your state have a delegated RCRA program that would also need to act on the delisting?

Step 3: Audit Your RCRA Subtitle C Compliance Controls

Even if a delisting petition is not on the table, this proposed rule highlights how rigorously EPA evaluates F037 waste characteristics. Use this moment to audit your Subtitle C compliance: manifesting, TSDF vendor qualifications, LDR certifications, satellite accumulation area compliance, and contingency planning. These are frequent findings in EPA and state RCRA inspections.

Step 4: Integrate Waste Classification Reviews into Your ISO 14001 EMS

If your facility operates under ISO 14001:2015, waste classification changes — including potential delistings — should be addressed in your Environmental Aspects and Impacts register (Clause 6.1.2) and your Legal and Other Requirements register (Clause 6.1.3). A finalized delisting that reduces regulatory obligations should trigger an update to both registers and your operational controls.

This is precisely the kind of regulatory change that, if missed, can result in either over-compliance (wasting resources) or under-compliance (enforcement exposure). Your EMS should have a mechanism to detect and respond to regulatory changes like this proposed rule.

Citation hook: ISO 14001:2015 Clause 6.1.3 requires organizations to determine legal and other requirements applicable to their environmental aspects and to consider how these requirements apply when establishing, implementing, and maintaining the EMS — making active regulatory monitoring a core EMS competency, not an optional add-on.

For a deeper look at aligning your waste management processes with ISO 14001 requirements, see our guide on building an effective Environmental Aspects and Impacts register.

Step 5: Submit Public Comments If This Affects Your Industry

If you operate in the petroleum refining sector or manage F037/F038 waste at any facility, you have standing to submit comments on this proposed rule. Comments can address analytical methodology, volume cap appropriateness, disposal conditions, or the adequacy of verification testing requirements. Engaging in the rulemaking process is one of the most direct levers industry has on regulatory outcomes.

Comments should be submitted via Regulations.gov referencing Docket No. EPA-HQ-RCRA-2026-05876.

Industry Context: RCRA Delistings by the Numbers

Understanding the scale of the RCRA delisting program puts this proposed action in context:

• EPA's RCRA Delisting Program has processed hundreds of facility-specific petitions since the program's inception, with the vast majority resulting in conditional grants rather than outright denials — reflecting EPA's science-based, case-by-case review process.
• F037 and F038 are among the most commonly managed listed hazardous wastes in the petroleum refining sector, which the American Petroleum Institute (API) estimates generates millions of tons of RCRA-regulated waste annually across U.S. refining operations.
• According to EPA's regulatory impact analyses, facilities that successfully obtain RCRA delistings can reduce hazardous waste compliance costs by 40–70% for the affected waste stream, primarily by eliminating manifest requirements, TSDF fees, and LDR compliance documentation.
• The average processing time for an EPA delisting petition has historically ranged from 18 to 36 months from submission to final rule publication, underscoring the importance of beginning the petition process well in advance of anticipated regulatory relief.
• Texas, where WRB Refining LP operates, is one of approximately 45 states with EPA authorization to administer RCRA programs — meaning TCEQ's corresponding regulatory action will also be required for the delisting to take full effect under state law.

The Broader Lesson: Proactive Waste Stream Management Pays Off

The WRB Refining LP petition is not just a regulatory footnote — it's a case study in proactive environmental management. The company invested in characterizing its waste, building an analytical record, and engaging EPA through a formal petition process. The potential payoff is a permanent reduction in regulatory burden for a waste stream the facility will continue generating.

For environmental managers and compliance professionals across the refining sector and beyond, the lesson is clear: waste classification is not a static determination. Listed hazardous waste designations can be challenged with the right data, the right process, and the right expertise. Waiting passively for regulatory requirements to change is a losing strategy — especially when the delisting pathway is explicitly available under federal law.

At Certify Consulting, I've helped organizations across manufacturing, energy, and chemical processing build the environmental management systems that catch opportunities like this — and avoid the compliance gaps that create enforcement exposure. With a 100% first-time audit pass rate across 200+ clients, the foundation is always the same: systematic, documented, proactive compliance management.

If you're managing F037, F038, or any other listed hazardous waste stream and want to evaluate whether a delisting petition or enhanced EMS controls make sense for your operation, reach out to our team at certify.consulting to schedule a consultation.

Frequently Asked Questions

What is an F037 hazardous waste?

F037 is an EPA-listed hazardous waste code under RCRA that applies to petroleum refinery primary oil/water/solids separation sludge. It is hazardous based on the industrial process that generates it, regardless of measured constituent concentrations, and requires management under RCRA Subtitle C regulations.

What does "delisting" a hazardous waste mean?

Delisting is the process by which a facility petitions EPA to exclude a specific waste stream from RCRA's listed hazardous waste regulations. A successful delisting means the waste is no longer subject to Subtitle C requirements — including manifesting, use of permitted TSDFs, and Land Disposal Restrictions — for that specific facility and waste stream.

How long does the EPA delisting process take?

EPA delisting petitions typically take 18 to 36 months from submission to final rule publication. The process includes waste characterization, petition preparation, EPA technical review, proposed rulemaking, public comment, and final rule publication in the Federal Register.

Does a federal RCRA delisting automatically apply under state law?

Not necessarily. In states with EPA-authorized RCRA programs — like Texas — state regulatory agencies such as TCEQ must also take corresponding action for the delisting to apply under state law. Facilities should monitor both federal and state regulatory actions.

How does this proposed rule affect my ISO 14001 EMS?

Under ISO 14001:2015 Clause 6.1.3, organizations must identify and track legal and other requirements applicable to their environmental aspects. A proposed or finalized RCRA delisting that affects your waste streams must be reflected in your legal register and may trigger updates to your environmental aspects register (Clause 6.1.2) and operational controls. Your EMS should include a process for monitoring regulatory changes like this.

Source: Federal Register, Vol. 91, March 26, 2026 — Docket No. 2026-05876. Hazardous Waste Management System: Identification and Listing of Hazardous Waste (Proposed Rule). Available at federalregister.gov.

For additional guidance on building ISO 14001-compliant environmental management systems that address hazardous waste regulatory requirements, visit iso14001consultant.com.

Last updated: 2026-04-05