United States
Environmental
Protection Agency
Office of Enforcement
and Compliance
Assurance (2201 A)
EPA325-F-08-003
\J»?J Enforcement A lert
^PBO-f*0 «/
Volume 10, Number 1
Office of Civil Enforcement
December 2008
Don't Let Those Tanks Leak
EPA Enforces Underground Storage Tank Requirements
EPA's enforcement of underground storage tank requirements
protects this country's groundwater from contamination.
There are approximately 625,000 active, federally-regulated
underground storage tanks (USTs) in the United States, located
at gas stations, marinas, government facilities, small businesses
and large industrial sites. They contain millions of gallons of
gasoline, diesel fuel, oil, toxic chemicals and a variety of other
hazardous substances. Leaks, spills, and overflows from these
tanks are a major source of soil and groundwater pollution.
It is critical for groundwater protection to prevent and
control releases from USTs. Over half the population of the
United States relies on groundwater as its source of drinking
water. Many municipal drinking water systems and private
wells have been shut down due to groundwater contamination
caused by USTs. Since 1988, approximately 474,000 releases
have been confirmed across the country, including 7,570 new
releases in 2007 alone.
Nationally, one of the most common causes of groundwater
pollution is gasoline or diesel fuel leaks from service station
USTs. They are also among the more difficult and expensive to
clean up. In urban areas, harmful vapors from UST releases can
pose health problems by migrating into basements or subway
systems located above contaminated groundwater. Leaking
USTs may also present the risk of fire or explosion.
Federal and state regulations are designed to reduce the risk
of UST leaks, spills and overflows by establishing equipment
standards for tanks and pipes and by requiring owners and
operators of USTs to take action to prevent and detect releases.
The UST program is primarily implemented by states, as
approved by EPA; however, EPA maintains a significant
national enforcement presence.
RECENT ENFORCEMENT ACTIONS
EPA has taken many successful enforcement actions to
ensure compliance with UST regulations. Actions against
owners and operators of multiple facilities withUSTs have been
particularly effective in increasing the number of facilities and
tanks brought into compliance. For example, by taking just 15
enforcement actions against certain large petroleum
marketers and municipalities that own multiple facilities
with USTs in the Mid-Atlantic region, EPA brought over 430
facilities into compliance. The violations alleged in these cases
included the failure to maintain and monitor tanks and piping
for releases and the failure to maintain financial resources to
cover the cost of cleaning up any release from their tanks.
Corporate-wide settlement agreements are also proving to
be beneficial for companies. Typically, these agreements help
companies achieve compliance by resolving known violations
and ensuring their commitment to audit and correct additional
violations.
Asti Holding Corp., et al.
Undera July 23,2008, federal judicial settlement agreement,
Asti Holding Corporation, 23 additional defendants and
at least three other affiliated entities must pay a penalty of
$650,000 and ensure that 155 tanks at 23 gas stations in the
New York City metropolitan area are in compliance with UST
regulations.
Euclid of Virginia, Inc.
The largest penalty ever issued by an EPA administrative
law judge for violations of any federal environmental law was
against Euclid of Virginia, Inc. for UST violations at 23 gas
stations in the District of Columbia, Maryland, and Virginia.
Subsequently, in March 2008, EPA's Administrative Appeals
Board increased the penalty to $3,164,555.
Excavated Leaking Underground Storage Tank
http://www.epa.gov/compliance/resources/newsletters/civil/enfalert/index.html
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Enforcement Alert
The penalty reflects the number of facilities with long-standing
violations and Euclid's high degree of negligence in allowing
wide-spread violations of tank release detection requirements.
Euclid was also found to have failed to meet requirements for
adequate financial resources to cover possible cleanup costs.
The Euclid case exemplifies the need to take action to protect
human health and the environment from the release of hazardous
substances and petroleum from USTs. Euclid's 23 facilities had
a total of 72 tanks, with an average capacity of 32,000 gallons of
gasoline and diesel fuel. The tanks either were not properly fitted
with release detection equipment or release detection monitoring
was not performed on tanks and piping. The potential for human
exposure to contaminated groundwater and drinking water was
evident. Euclid's facilities are in densely populated areas where
the groundwater is in active use and vulnerable to contamination
from USTs.
City of New York
Federal, state, and local governments typically store gasoline
and other hazardous substances in USTs and must comply with
UST regulations. In 2006, EPA and New York City entered
into a landmark judicial settlement that provides for city-wide
compliance with UST regulations, affecting approximately 1,600
USTs at 400 facilities owned or operated by the City.
The settlement addresses the potential for significant harm
from the City's tanks. The settlement, which includes the police
department, fire department, Department of Transportation and
other City agencies, requires these agencies to upgrade or close
their non-compliant USTs, provide proper methods to detect
releases and maintain leak detection equipment. New York City
must also undertake a multi-year project to centrally monitor tanks
from the three largest agencies for releases and suspected releases.
The City paid a $1.3 million dollar penalty for its violations.
Sheetz, Inc.
Sheetz owns a chain of convenience stores and gas stations
in Pennsylvania, Maryland, Virginia, and West Virginia. EPA
inspections at two Sheetz locations revealed that Sheetz had failed
to investigate and report suspected releases from its gasoline
and diesel fuel tanks and also failed to conduct leak detection
monitoring.
Disclaimer: This document attempts to clarify in plain
language some EPA provisions. Nothing in this Enforcement
Alert revises or replaces any regulatory provision in the cited
part, or any other part of the Code of Federal Regulations, the
Federal Register or the Resource Conservation and Recovery
Act. For more information go to: www.epa.gov/compliance
Under a 2005 settlement, Sheetz must 1) resolve the violations
at the two inspected locations, 2) audit all 275 of its facilities to
ensure compliance with federal UST requirements, 3) report to
EPA any violations uncovered as result of the audit, 4) promptly
correct those violations, and 5) pay penalties stemming from
those violations.
Violations were uncovered at 111 facilities and Sheetz
has paid over $83,000 in penalties (including $26,000 for the
first two violations) and committed $875,000 to supplemental
environmental projects. Sheetz is also undertaking supplemental
projects related to upgrading its underground storage tank systems
that exceed the regulatory requirements.
Diagram of a Typical Four-Tank Gas Station
Carroll Independent Fuel Co.
Carroll Independent Fuel Co. entered into a 2006 consent
agreement with EPA for failure to detect and prevent releases from
its underground storage tanks at eight facilities. The settlement
requires third-party compliance audits at approximately 70 gas
stations and for Carroll to make quarterly submittals to EPA
of violations discovered and corrected. In accordance with the
consent decree, Carroll has paid over $500,000 in penalties to EPA
for its failure to detect and prevent releases from its tanks.
UST Enforcement at Federally-Owned
Facilities
Nationwide, federal facilities ranging from large military bases
to prisons and post offices own approximately 8,000 USTs. EPA
is specifically focused on improving federal facility compliance
with UST requirements. In coordination with its state counterparts,
EPA has been inspecting and taking enforcement actions against
federal facilities for their UST violations.
December 2008
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Enforcement Alert
Camp Santiago
EPA issued an eleven-count administrative complaint on March
31,2008, to both the Puerto Rico Army National Guard (PRANG)
and the Army and Air Force Exchange Service (AAFES) for
multiple UST violations at Camp Santiago, in Salinas Puerto Rico.
The complaint seeks a total civil penalty of $209,264.
EPA alleged that PRANG failed to: (1) operate and maintain
corrosion protection, (2) conduct required inspections of the
cathodic protection system, (3) install overfill prevention
equipment, (4) provide release detection monitoring and (5)
annually test the automatic line leak detector equipment.
With respect to AAFES, EPA alleged that it failed to conduct
release detection for pressurized piping, failed to annually test
the automatic line leak detector for this piping and failed to
respond appropriately to indications of release from its two UST
systems.
McGuire Air Force Base
The U.S. Air Force, New Jersey National Guard and AAFES
entered into a November 2006 settlement with EPA resolving
violations of UST requirements at the McGuire Air Force Base.
in New Hanover Township, New Jersey. The agreement required
payment of $115,000 in penalties and the installation of proper
corrosion protection, overfill protection and leak detection
equipment. It also requires improved annual testing and record-
keeping at the 20 UST systems used to store fuels for vehicles
at the base.
UST OWNERS MUST SHOW
FINANCIAL RESPONSIBLITY
Owners and operators of USTs must maintain financial
resources for all tanks sufficient to: (1) clean up a site if a
release occurs, (2) correct environmental damage caused.
and (3) compensate third parties for injury to their property
or themselves. Failure to do so is a major violation. The
amount of coverage required depends on the type and size
of the business. The only exception is if a tank has been
permanently closed and the implementing agency, state, or
EPA has released the owner or operator from the obligation
to maintain financial responsibility.
Owners and operators may meetthe financial responsibility
requirements by liability insurance, letters of credit, surety
bonds, trust funds and other mechanisms (see 40 CFR
§ 280.90 - 280.16). Many states provide access to a state
financial assurance fund for owners and operators.
EPA's Office of Enforcement and Compliance Assurance
has named compliance with the financial responsibility
requirements as one of its national priorities. See http://www.
epa.gov/compliance/data/planning/priotities/index.html
FEDERAL RELEASE DETECTION
REQUIREMENTS
At the heart of the federal UST program are release detection
requirements, aimed at preventing UST releases. The release
detection system must identify a leak from any portion of the
UST system and be properly installed, calibrated, maintained and
monitored. Federal regulations allow for the following release
detection methods:
• Secondary containment and interstitial monitoring;
• Automatic tank gauging systems;
• Vapor monitoring;
• Groundwater monitoring;
• Manual tank gauging; and
• Other methods meeting the criteria in 40 C.F.R. § 280.43(h).
Tanks and pipes must be regularly tested for leaks and leak
detection records must be kept by the owner or operator and made
readily available during an inspection.
NEW UST REQUIREMENTS:
THE ENERGY POLICY ACT OF 2005
The Energy Policy Act of 2005 contains additional requirements
for preventing release from USTs and anticipates that its provisions
will be implemented at both federal and state levels.
Inspections - In response to numerous concerns raised by the
communities about the risk of releases from USTs, the Act
requires greater inspection frequency and more stringent tank
requirements. As of August 8, 2007, all tanks must be inspected
every three years.
Training - Operator training is required. This provision was added
largely in response to a 2001 Government Accounting Office report
and testimony before Congress asserting that a primary cause of
releases from USTs was poor operation of the tank system by
owners and operators.
Delivery Prohibition - As of August 8, 2007, it is unlawful to
deliver, deposit into or accept a regulated substance into a UST
at a facility that is ineligible to receive the substance. Many states
already employ this prohibition, finding it to be a remarkably
effective enforcement tool in motivating UST owners and operators
to resolve outstanding compliance problems in their systems.
Secondary Containment Or Financial Responsibility And
Installer Certification - To protect groundwater and drinking
water supplies, states may require that tanks within 1,000 feet
of a community water system or a potable water well must
have secondary containment or that installers or manufacturers
of tank systems maintain financial responsibility for releases
Decemeber 2008
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Enforcement Alert
caused by improper manufacture or installation. Many states already require secondary
containment.
TO LEARN MORE
EPA's Office of Underground Storage Tanks home page: http://www.epa.gov/oust
EPA Underground Storage Tank Regulations, 40 CFR Subparts A-I: http://www.epa.gov/
swerustl/fedlaws/40cfr280.pdf
In the Matter of Euclid of Virginia, Inc., U.S. Environmental Protection Agency, Docket
No. RCRA-3-2002-0303, Initial Decision, issued November 9, 2006 at: http://www.epa.
gov/oalj/orders/euclidof-va-id-110906.pdf
Underground Storage Tank Act of 2005: http://www.epa.gov/oust/fedlaws/epact_05. htm
EPA publications, many about managing USTs properly and conducting cleanups
efficiently: http://www.epa.gov/oust/pubs/index.htm
See, 40 CFR 280, Subpart H for Financial Responsibility requirements. In addition, EPA's
Office of Underground Storage Tanks has a 16-page booklet titled, Dollars and Sense, that
explains these requirements: http://www.epa.gov/OUST/pubs/dol&sens.pdf
For information on federal facilities' compliance with environmental laws, see www.
fedcenter.gov, a comprehensive interagency environmental stewardship and compliance
assistance center for federal agencies.
EPA Enforcement and Compliance Resources
Office of Civil Enforcement, Waste and Chemical Enforcement Division
Tom Charlton, 202-564-6960, charlton.tom@epa.gov
Diana Saenz (financial responsibility issues), 202-564-4209, saenz.diana@epa.gov
Office of Underground Storage Tanks
Tim Smith, 703-603-7158, smith.timr@epa.gov
Federal Facilities Enforcement Office
Melanie Garvey, 202-564-2579, garvey.melanie@epa.gov
SEPA
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Environmental Protection Agency
Office of Civil Enforcement
(2241 A)
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Enforcement Alert
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Acting Director,
Office of Civil Enforcement:
Randolph L. Hill
Editor, Office of Civil Enforcement:
Melissa Page Marshall
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Document Number: EPA 325-F-08-003
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