1. The department may award grants to solid waste management districts, municipalities, counties, and other local government entities or their instrumentalities to plan, establish or promote household consumer-used motor oil collection systems. In order to be eligible for grants, household consumer-used motor oil collection centers may only accept used motor oil originating from household consumers or farmers, and must operate in compliance with department rules. Household consumer-used motor oil collection centers may not accept used motor oil from commercial operations. Household consumer-used motor oil collection centers may limit the quantity of oil received at any one time from an individual and may restrict the size of the container used to deliver the oil to the center.

2. All household consumer-used motor oil collection centers must comply with the recycled used oil management standards as established by the department.

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3. Household consumer-used motor oil collection centers shall transfer used motor oil only to transporters licensed pursuant to rules of the department.

4. All used motor oil recycling, reclaiming, and rerefining facilities shall comply with all applicable requirements of the department.

5. The department shall establish rules to carry out the provisions of this section and section 260.253.