[Freon]

Yes, you could just run the crankcase vents straight from the block to atmosphere, but it will get oil everywhere in your engine bay. I would highly recommend against that.

For anything but a dedicated race car, a catch can is solution. If you want to get fancy, the colder the catch can is relative to the vented gases, the better condensation you will get.

Any drain off from spraying water on engine parts would have to be treated before allowed to enter a sewer system, septic system, or the ground. It's about protecting the water supply. Dump too much crap into the ground and every well in miles could be ruined. I'm not surprised in the least. Hobbiest oil-changers who dump their used oil down the sink is a big problem, and why you typically cannot install a floor drain in new garage constructions these days. I think it can be tough just to install a sink in a garage in some cities. Protip: any oil change shop will take your used oil for free and recycle it.