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Underground Storage Tanks (UST) Frequently Asked Questions (FAQ)

Frequently Asked Questions About Heating Oil Underground StorageTanks

Frequently Asked Questions About The Bureau of Underground Storage Tanks

  1. Are Heating Oil Tanks Regulated?
  2. What is Heating Oil?
  3. What is meant by "Consumptive Use?"
  4. What is meant by "Premises?"
  5. Who Regulates Underground Storage Tank (UST) Systems?
  6. What are my responsibilities as an UST Owner or Operator?
  7. How Much Time is Left?
  8. What is the Purpose of the 1998 Deadline?
  9. Will EPA Extend the Deadline?
  10. How Much Does It Cost to Upgrade, Replace, or Close UST Systems?
  11. What is the States" Role in Enforcing the 1998 Deadline?
  12. Where will EPA Enforce the 1998 Deadline?
  13. How Will EPA Deal With Non-Compliance?
  14. Can UST's Go into "Temporary" Closure?

1. Are Heating Oil Tanks Regulated?

Answer: Tanks used for the storage of heating oil for consumptive use on the premises where stored are excluded from Federal Underground Storage Tank (UST) Regulations. However, State agencies may regulate these tanks.

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2.What is Heating Oil?

Answer: Heating oil includes several grades of petroleum fuel oils: No. 1, No. 2, No.4-Light, No. 4-Heavy, No. 5-Light, No. 5-Heavy, No. 6, Navy Special Fuel Oil, and Bunker C, plus No.2 Diesel fuel and Kerosene when used for heating purposes.

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3. What is meant by "Consumptive Use?"

Answer:"Consumptive Use" is not intended to be limited to use for heating purposes only: The definition extends to any on-site use including heating, generating emergency power, and generating steam, process heat, or electricity. The exclusion does not apply to tanks storing heating oil for resale.

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4. What is meant by "Premises?"

Answer: The "Premises" is not limited to the building where the heating oil is stored; it includes any other location on the same property. Thus, centralized heating units using heating oil that serve more than one building on the same property would be excluded.

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5. Who Regulates Underground Storage Tank (UST) Systems?

Answer: In 1984, Congress directed the U.S. EPA to develop regulations for underground storage tank (UST) systems. Many UST's are subject to both Federal and State regulations. EPA's Office of Underground Storage Tanks (OUST) developed the Federal regulations which delegate UST regulatory authority to approved State programs. States with approved programs operate in lieu of The Federal regulations. There are currently 24 States with approved UST programs.

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6. What are my responsibilities as an UST Owner or Operator?

Answer: All Federally regulated UST's must:

  • Be registered
  • Meet leak detection requirements
  • Meet upgrade requirements (i.e. spill, overfill, and corrosion protection) by December 22, 1998.

In addition, Owners and Operators must:

  • Meet financial responsibility requirements
  • Perform a site investigation and take corrective action in response to leaks, spills and overfills
  • Replace or close UST's that do not meet the upgrade requirements by December 22, 1998
  • Follow regulatory rules during the 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.

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7. How Much Time is Left?

Answer: Time is up. The deadline was December 22, 1998. On this date, owners and operators will have had a full ten-years to comply with the UST regulations. Owners and operators of UST systems that are out-of-compliance on this date are subject to fines of $11,000 per day for every day their UST system(s) are not in compliance.

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8. What is the Purpose of the 1998 Deadline?

Answer: The purpose of the December 22, 1998 deadline for upgrading, replacing, or closing existing substandard UST systems is to prevent another generation of leaking UST systems. During the last decade over 330,000 releases from substandard tanks have been reported. Many of these releases have caused serious environmental damage as well as harm to human populations.

Contaminated water supply wells have been shut down to prevent sicknesses and other adverse health effects. Gasoline vapors have migrated into basements and garages causing explosions and fires, which have claimed human lives and resulted in costly property damage.

Only about one-third of the existing UST systems have been upgraded since 1988, which was the start of the ten-year period for completing UST system upgrade, replacement, or closure. Over 600,000 UST systems still need to be upgraded, replaced, or closed. These systems are substandard and have a high probability of causing severe environmental damage and threatening human health and safety. If actions aren't taken to ensure that all UST systems meet minimum acceptable standards, the next generation of leaking UST's will be worse than the first generation was.

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9. Will EPA Extend the Deadline?

Answer:NO! EPA will NOT extend the December 22, 1998 deadline, and State, local or tribal governments DO NOT have the authority to extend the deadline for federally regulated tanks. EPA Administrator Carol M. Browner in her letter dated May 14, 1997 supports this position. By the deadline owners and operators will have had a full ten-years to plan and implement one of the three options for their UST system(s).

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10. How Much Does It Cost to Upgrade, Replace, or Close UST Systems?

Answer: All "cost estimates" are educated guesses. First, note that cost estimates vary significantly from site to site depending on: The nature of the surrounding soil and structures, labor costs (rural vs urban regional variations), the length of downtime (installation may last several days), how much labor is required, especially time required to break through existing site "covering pads", reductions based on having combined work done together (for example, having spill, overfill, and corrosion protection all installed at the same time) vendor difference, and proximity to deadline (cost will rise as deadline nears).

Cost Estimate to Upgrade UST’s (add spill, overfill and corrosion protection).

These are approximate costs based on a 3-tank facility and include labor costs and 24 hours or less down time.

Cost Equipment/Labor

$6,200 3 Spill buckets

$1,500 3 Automatic shutoff (butterfly) devices

$5,000 Automatic overfill alarm (including 3 probes and 1 automatic tank gauging system)

$0,300 3 Ball float devices

$15,000 Interior lining of 3 tanks (more than 24 hours downtime)

$10,000 Impressed current system, including an assessment (assuming no interfering structures)

For example, a low rough cost for a 3-tank upgrade using spill buckets, butterfly valves, and impressed current would be about $12,700.

Cost Estimate to Replace UST’s

Replacing an existing 3-tank facility with three new UST’s and Piping would cost roughly between $80,000 and $100,000 (including closing the existing UST’s and putting in new UST’s) assuming no cleanup is needed, Replacement would also involve about 2-3 weeks of downtime.

Cost Estimate to Close UST’s

Temporarily closing an UST involves no more expense than the monitoring that is required (corrosion protection, if you have it; leak detection if there’s anything stored in the UST) and, if closed more than 3 months, the capping of all lines except the vent lines. Closing permanently, however, requires emptying and cleaning the tank(s) and either removing the UST or leaving it in place filled with an inert solid, all of which would cost roughly between $5,000 and $11,000 (not including site assessments or cleanup).

Cost of not Upgrading, Replacing, or Closing substandard UST’s

After the December 22, 1998 deadline, owners and operators of substandard UST system(s) who continue to operate their out-of-compliance substandard system(s) risk fines up to $11,000 per day per violation.

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11. What is the States" Role in Enforcing the 1998 Deadline?

Answer: EPA expects States to take the lead in securing compliance with the 1998 UST requirements. EPA recognizes that States can use various enforcement activities to achieve compliance. These enforcement activities can include filing administrative or judicial actions or immediately stopping operation of a non-complying tank (e.g., by using their "red tag" authority) States will use their enforcement authority as necessary to demonstrate to UST owners and operators that they will not be permitted to ignore UST requirements with impunity.

In the months leading up to the December 22, 1998 deadline, EPA expects that States generally will continue to monitor and enforce compliance with UST requirements already in effect, including those for release detection; to remind UST owners and operators of their obligation to upgrade, replace, or properly close substandard UST systems; make owners and operators aware of the fact that enforcement action will be taken against those who miss the deadline; and, in concert with EPA Regional Offices, develop plans for post-deadline compliance and enforcement activity.

EPA expects that States will expeditiously identify non-complying UST facilities, including marketers and non-marketers, after the deadline and require those facilities to be promptly upgraded, replaced, or properly closed.

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12. Where will EPA Enforce the 1998 Deadline?

Answer: Under RCRA Subtitle I, EPA has the authority to and will inspect UST facilities in order to assess compliance with the UST regulations. While EPA may take enforcement action in all States, its activities will be concentrated in States that have less active UST enforcement programs. EPA also will try to be responsive to requests from any State for support in dealing with Federal agencies or other UST owners-operators who are resistant to State compliance efforts.

Factors the Agency will consider in deciding when and where to conduct inspections will include UST compliance levels and the level of States" compliance and enforcement presence. EPA’s Regional Offices will be responsible for selecting the States in which Federal action will be undertaken. Regional Offices will have continuing communication with States about the status of State compliance and enforcement activities.

Because EPA believes it is essential that Regional Offices have latitude in deciding where to initiate Federal actions, the Agency will not establish criteria for such decision-making. Some degree of consistency from one Regional Office to another is nevertheless important; EPA believes that such consistency can be achieved through ongoing communication between EPA Headquarters and Regional Offices.

EPA will also conduct UST inspections and issue administrative penalty orders or field citations at Federal facilities.

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13. How Will EPA Deal With Non-Compliance?

Answer: After December 22, 1998, it will be illegal to operate UST systems that are not equipped to protect against corrosion, spills, and overfills. Owners and operators who miss the deadline must bring substandard UST systems into compliance by upgrading, replacing, or closing them. If EPA finds them in violation, they will be subject to monetary penalties for periods of non-compliance.

EPA’s goal is to ensure that the regulated community brings substandard UST systems into compliance. When UST owners and/or operators fail to comply with the 1998 deadline requirements, EPA will initiate enforcement actions to ensure prompt compliance with the UST regulations. EPA’s position is not to allow continued operation of substandard UST systems after December 22, 1998. Toward that end, EPA will take the position that substandard UST systems should be temporarily closed until the work necessary to upgrade, replace, or permanently close them is completed. Alternatively, EPA may refer the matter to the State UST implementing agency where a State has the authority to shut down such an UST facility without initiating administrative or judicial proceedings.

In pursuit of its goal, EPA will use all the enforcement tools available for dealing with UST violations, including, administrative and judicial enforcement actions. Judicial enforcement actions are particularly appropriate in situations involving recalcitrant parties. The agency may use field citations in some circumstances for a limited period of time after the December 1998 deadline. In situations where the inspection shoes that a release has occurred or is occurring, EPA’s regulations require owners/operators to take immediate action to prevent any further release, as well as other steps to respond to the release.

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14. Can UST's Go into "Temporary" Closure?

Answer: UST owners and operators can comply with the Federal regulations by upgrading, replacing, or properly closing (either permanently or temporarily) their UST’s. During the time in which an UST system is temporarily closed, it is permissible to upgrade, replace, or permanently close it. If the period of temporary closure of a UST system extends past December 22, 1998, the UST must be upgraded or replaced before it can be legally operated.

EPA’s regulations allow a UST system to remain in temporary closure for a maximum of 12 months unless the owner or operator completes a site assessment and obtains an extension from the responsible UST implementing agency; States and EPA are not obligated to grant such extensions. EPA’s position is that UST systems, that have not been granted an extension by the implementing agency, should not remain in temporary closure beyond December 22, 1999, even if the USTs were placed into temporary closure after December 22, 1998.

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