Copyright Maple Publishing Feb 2000 There are about 900,000 active federally regulated underground storage tanks (USTs) buried at over 300,000 sites nationwide. Nearly all of these contain petroleum. More than half of them are at sites operated by marketers who sell petroleum to the public, such as gas stations and convenience stores. Less than half of the USTs are at sites operated by non-marketers who use USTs solely for their own needs, such as Federal, State and local governments, schools and fleet operators. The EPA's UST regulations apply only to USTs storing petroleum or certain hazardous substances.
Federal requirements do not apply to: UST tanks storing heating oil used where stored, tanks on or above the floor of underground areas, septic tanks, and storm and wastewater systems, and tanks of 110 gallons or less capacity. State requirements, however, may apply to these tanks.
Federal regulation
A federally regulated UST is any one or combination of tanks (including underground pipes connected to it) that is used to contain an accumulation of regulated substances, and the volume of which (including underground pipes connected to it) is 10 percent or more beneath the surface of the ground.
Federally regulated USTs meet one or more of the following criteria:
Have a capacity of more than 110 gallons,
Contain regulated substances,
Do not contain hazardous wastes regulated under the Solid Waste Disposal Act or a mixture of such hazardous waste and another regulated substance and/or are not part of a wastewater treatment system that is part of a wastewater treatment facility regulated under the Clean Water Act.
Although not all UST systems are Federally regulated, some may be regulated by the state or local agency that implements a UST program, and you should check with them.
Owner responsibilities
All Federally regulated USTs must:
Be registered,
Meet EPA leak detection requirements,
Meet upgrade requirements (i.e., spill, overfill, and corrosion protection) that became effective on December 22, 1998.
In addition, owners and operators must:
Meet financial responsibility requirements;
Perform a site check and corrective action in response to leaks, spills and overfills;
Replace or close USTs that do not meet the upgrade requirements that went into effect December 22, 1998;
Follow regulatory rules during installation of new tanks and closure of existing tanks;
Maintain records as required and
Have periodic checks performed on corrosion protection and leak detection systems.
The problem
Over 370,000 confirmed releases have been reported. Fumes from leaks can cause explosions or fires. Leaking USTs contaminate groundwater, surface water and soils. About half of releases have affected groundwater. Although average cleanup costs are $125,000, groundwater cleanup at some sites exceeds $1 million.
How you can tell if a release has occurred? Releases from UST systems can originate from one or more of the system components (i.e., tanks, piping, and pumps) as well as from spills and overfills. Because most of the components are buried beneath the ground, you usually have to rely on methods other than sight and smell to determine if a release has occurred. Warning signals indicate that your UST may be leaking and creating problems for the environment and your business. You can minimize these problems by paying careful attention to early warning signals and reacting to them quickly before major problems develop.
Early warnings
You should suspect a leak when you discover any of the following warning signals:
1. Unusual operating conditions (such as erratic behavior of the dispensing pump). Check first to see if this problem results from an equipment failure that can be repaired.
2. Results from leak detection monitoring and testing that indicate a leak. What at first appears to be a leak may be the result of faulty equipment that is part of your UST system or its leak detection system. Double-check this equipment carefully for failures.
3. Reports from fuel delivery drivers or complaints from neighbors about vapors in their basements or about water that tastes or smells like petroleum.
Don't hesitate
If you suspect that a release may have occurred, you should immediately notify your state or local implementing agency. If your tank is in Indian Country, then you must contact the EPA Regional UST program office. Quick action on your part can minimize the extent of environmental damage and the threat to human health and safety, and it can minimize your share of the high costs that can result from cleaning up extensive releases and responding to third-party liability claims.
| [Photograph] |
| If you suspect a leak has occurred from any underground storage tank or piping, contact authorities immediately. Surface spills of less than 25 gallons generally need not be reported but should be cleaned up within 24 hours. |
Steps should be taken immediately to stop the release and ensure that there is no threat to the safety of persons near the release. It is not necessary to notify the implementing agency of aboveground spills or overfills of petroleum of less than 25 gallons (or another reasonable amount specified by the implementing agency) if the release can be contained and cleaned up within 24 hours. It is also not necessary to notify the implementing agency of a spill or overfill of a hazardous substance that results in a release to the environment less than its reportable quantity underCERCLA if it can be contained and cleaned up within 24 hours.
Some help is available
Many fleet owners have experienced difficulty financing the cost of complying with EPA UST requirements but as a UST owner and operator, you may be able to obtain financial assistance from three types of federal or state programs: direct loans, loan guarantees and grants. Some states also offer interest subsidies. Each of these types of programs is described below.
Direct loans Some state governments and federal agencies may issue loans directly to eligible owners and operators. These funds come from a loan fund. A program will generally assess your credit risk before providing you with one of these loans. Alternatively, some programs contract with private lenders or other institutions to conduct credit analyses and administer the loan programs. A state or federal agency may lend you money at the market interest rate, which is the same interest rate at which governments borrow money (usually below the prevailing rates for private borrowers), at a lower interest rate or without interest. State and federal programs often allow you a longer period to repay the loan than do private lenders.
Loan guarantees Loan guarantees allow you to obtain loans from private lenders, such as banks or insurance agencies, if you have backing or some kind of "guarantee" from another organization. If you receive a loan guarantee, the guarantor, usually a federal agency or state, will commit to repay your loan if you are unable to do so. This arrangement increases your chances of obtaining a loan from a private lender because the guarantee assures the lender of repayment.
Grants Under a grant, a state or federal agency provides you with money that you are not required to pay back. Agencies usually award grants for very specific, low-cost activities, such as tank tightness tests, release detection, cathodic protection and spill and overfill protection. Because they will not recoup grant money, however, federal agencies offer more loans or loan guarantees than grants. Some states will offer you partial funding in the form of matching grants. Under a matching grant agreement, you pay a portion of the costs, and the state pays the remainder.
Interest subsidies Under an interest subsidy, your state government reduces your total cost of a commercial or private loan by waiving or reducing your interest payments on that loan. The state may structure interest subsidies in several ways:
The state pays a fixed number of points of the interest rate being charged to the owner or operator. For example, the state pays two percent interest on the loan, and you pay the remainder, regardless of the terms of the loan.
The State pays any interest payments more than a specified interest rate. For example, you pay five percent and the state pays the remainder.
The State pays a fixed portion of the total interest payments. For example, the state pays 25 percent of all interest payments, and you pay the remainder.
The Small Business Administration (SBA) administers a number of financial assistance programs for forprofit small businesses, which have reasonable owner equity to invest. You might qualify under the Small Business 7(a) Loan Guarantee program or their Microloan Program or the Certified Development Company (504) Loan Program. To find out, contact your lender or local SBA office. Another possibility is the Department of Agriculture's Rural Business-Cooperative Service (RBS). RBS offers grants and loan guarantees, through the Rural Business Enterprise Grants Program and the Business and Industry Guaranteed Loan Program. You should check out this possibility with your state RBS office.
Within the Department of Commerce, the Economic Development Administration (EDA) administers the Public Works and Development Facilities Program. The EDA funds many types of projects under this program, including bringing services to industry and commerce, improving ports, and building business incubator facilities. Internet information can be found at http://www.doc. gov/ eda/html/wprog.htm. For more information on the Public Works and Development Facilities Program, contact your nearest EDA Regional Office.
| [Photograph] |
| Leak testing of underground storage tanks is not an inexpensive proposition. Some financial help may be available through one of three types of federal or state programs: direct loans, loan guarantees or grants. |
| [Footnote] |
| Financial assistance to get in compliance might be available from the federal Economic Development Administration. Information can be found on the Internet at http://www.doc.gov/eda/html/ pwprog.htm. |
| [Author Affiliation] |
| Milton Zall is a freelance writer based in Silver Spring, Md. who specializes in taxes, investments and business issues. He is a Certified Internal Auditor and a Registered Investment Advisor. He can be reached by telephone at (301) 649-6044 or via email at miltzall@pop.dn.net |
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