New Congressional Energy Bill Means Changes for UST Owners

Recently, Congress passed an energy bill that President Bush is expected to sign soon. The bill attempts to stimulate production by offering tax breaks and reforming policies relating to the oil and gas, electric, nuclear, coal and renewable energy sectors.  Provisions of the bill include expanding daylight savings as of 2007 (March 1st - first Sunday in Nov.), a tax break for hybrid gas-electric cars and mandating the annual use of at least 7.5 billion gallons of renewable fuels (like ethanol) be blended into gasoline by 2012.

Especially important to fuel storage owners is the reformation of the UST program.  Requirements/changes include:

• All USTs to be inspected at least every three years. A two-year phase-in period was provided to allow states time to update their laws and regulations and to complete any inspections of USTs not inspected since the 1998 compliance deadline. A state could also petition EPA for a one-year extension during the first three-year cycle.

• States to mandate secondary containment of all new underground storage tank systems within 1,000 feet of any existing community water system or any existing potable drinking water well OR require certification or licensure of UST installers and evidence of financial responsibility for manufacturers of tanks and/or piping and installers of underground storage tank systems. Installers, tank manufacturers and piping manufacturers would not have to provide evidence of financial responsibility if they own a tank already covered under the financial responsibility section of the existing UST Act. PEI's attempt to remove this section of the bill was not successful.   

• Government agencies (federal, state and local) and Native American tribes that own tanks to submit a public report identifying the status of compliance of each tank, the nature of any violations issued and strategy for ensuring full compliance. Furthermore, the law gives state UST inspectors the ability to enforce against non-compliant federally owned and operated USTs.

• UST operators be trained in the proper operation of their UST systems according to the individual's daily responsibilities. Required operator training won't happen any time soon: EPA has two years to establish owner/operator guidelines and then the states have another two years to develop state specific training requirements consistent with the federal guidelines.

• All states to implement a red tag program to close non-compliant USTs and to hold liable delivery personnel who knowingly deposit petroleum products into a non-compliant UST.

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