I have noted that the ‘store brand’ of oil at the major chains is generally re-refined (recycled) oil. I am guessing that the mechanic assumes that they use their store brand for oil changes. Seems a reasonable assumption in the absence of any actual information.
Yes, the military does use recycled oil for some applications. At least the Air Force does. I consult for them doing computer work and I see the purchase records. I don’t know what they use it for, but they buy it.
I would say that if the oil service code meets the requirement of your car manufacturer, it should be just fine. I still would not use it unless I could not get anything else, but that’s just my irrational response where my car is concerned.
Yes, as I noted above General Services Administration, Defense Logistics Agency (who procures fuels and oils world-wide for all services) are required by Executive Order to purchase amounts of recycled/ re-refined oils. My previous note alluded to a Congressional mandate, but it appears to be an Executive order that is the actual requirement. The Safety Kleen, America’s Choice website links to the Executive Order.
The order states that so long as the recycled/re-refined product meets the spec, preference in its use will be considered. Needless to say there can be a wide interpretation of this statement, but essentially it means that GSA and DLA must purchase a percentage of recycled,re-refined oils that meet specs, to meet the Executive Order requirements. I am not in the logistics world, but I suspect you will see a large number of the re-refined products in various service motor pools, whereas before you saw only virgin oil products.