Regulations regarding PCB transformer oil are stringent due to the environmental and health risks associated with polychlorinated biphenyls (PCBs). In many countries, the use of PCB transformer oil is banned or heavily restricted. The U.S. Environmental Protection Agency (EPA) mandates that any transformer containing PCB transformer oil must be labeled, and specific disposal procedures must be followed to prevent environmental contamination. Regular monitoring and testing are also required to ensure compliance with these regulations.