Free guide to starting a UK plant hire companyUpdated October 2026 · Browse all guides
Plant Hire Start-Up Guide
Startup checklist

Legal, insurance and safety

Environmental compliance: fuel, oils, waste and spills

The environmental rules a plant hire firm must follow: oil storage and bunding, red diesel, hazardous waste, wash-down water and dealing with spills.

Guide specPHSUG-52
Read time7 min
LevelBeginner
Bund size110%
UpdatedOct 2026

Key takeaways

  • In England and Wales, oil containers of 201 litres or more at a business need secondary containment of 110% of capacity, including mobile bowsers.
  • Red diesel can't be used for construction work since April 2022; fill hire machines with white diesel or approved fuels.
  • Waste oil, filters and oily rags are hazardous waste and need proper disposal and paperwork.
  • Keep spill kits in the yard, workshop and delivery vehicles.

Oil and fuel storage

Under the oil storage rules for England and Wales, businesses storing oil in containers of 201 litres or more must provide secondary containment:

ContainerRequirement
Fixed tankBunded to hold 110% of the tank's capacity (not just a drip tray)
Mobile bowser or IBCSecondary containment of 110%; taps and valves locked when not in use
DrumsContainment for at least a quarter of the drum capacity

Rules differ in Scotland and Northern Ireland. Check GOV.UK and your environment regulator.

  • Site tanks away from drains and watercourses, protected from vehicle impact.
  • Lock fuel tanks and bowsers: fuel theft is common.
  • Inspect tanks and bunds regularly; empty rainwater from bunds safely.

Red diesel

Since 1 April 2022, plant used for construction work can't use red diesel (rebated gas oil). Fill hire machines with white diesel or approved duty-paid fuels such as HVO. Machines used solely for allowed purposes, such as agriculture, may still use red diesel, but must be drained and refilled before hire for construction. Keep records of fuel bought and how each machine is used.

Waste

WasteHow to handle it
Waste engine and hydraulic oilHazardous: store bunded, use a licensed collector, keep consignment notes
Oil filters and oily ragsHazardous: separate container, licensed collection
BatteriesHazardous: return to supplier or licensed collector
Tyres and tracksLicensed collector or supplier take-back
General and scrap metalLicensed waste and scrap dealers; keep waste transfer notes

You have a duty of care to make sure waste goes to someone authorised to take it. If you transport waste yourself, including waste from your own business, check whether you need to register as a waste carrier.

Wash-down water

Washing machines produces water containing oil, silt and detergent. It must not go into surface water drains. Use a designated wash bay draining to a separator or foul sewer (with the water company's permission), or a closed-loop wash system.

Spills

  1. 01

    Stop the source

    Close the valve, upright the container, switch off the machine.

  2. 02

    Contain it

    Spill kit pads and booms; protect drains with covers.

  3. 03

    Clean up

    Absorbents into a hazardous waste container.

  4. 04

    Report if serious

    Pollution reaching water must be reported to the environment regulator's incident hotline.

  5. 05

    Review

    Why did it happen, and what stops it happening again?

Keep spill kits in the yard, the workshop and every delivery vehicle, and train staff to use them.

Records

  • Waste transfer and hazardous waste consignment notes (keep for the required periods).
  • Fuel purchase records and machine use records for fuel duty purposes.
  • Tank and bund inspection records.
  • Spill and pollution incident records.

FAQs

Common questions

Do I need a bunded tank for a plant hire yard?
In England and Wales, a business storing oil in a container of 201 litres or more needs secondary containment of 110% of its capacity, so fixed tanks must be bunded and bowsers need equivalent containment.
Can plant hire companies use red diesel?
Not for machines used for construction work, since April 2022. They must use white diesel or approved duty-paid fuels. Some exempt uses such as agriculture remain.
How do I dispose of waste oil and filters?
Treat them as hazardous waste: store them safely and use a licensed collector, keeping the consignment notes.

This guide is general information for people setting up a plant hire business in the UK. It is not legal, tax, insurance or financial advice. Rules and thresholds change, so check current guidance on GOV.UK and take advice from an accountant, solicitor or broker before acting.