Leaking Underground Storage Tanks: Program Status and Issues Page: 2 of 6
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50% of the U.S. population relies on ground water for their drinking water, and states
were reporting that leaking tanks were the leading source of groundwater contamination.
In 1984, Congress responded to this growing environmental and safety threat and
established a leak prevention, detection, and cleanup program for USTs containing
chemicals or petroleum through amendments to the Resource Conservation and Recovery
Act (RCRA, 42 U.S.C. 6901 et seq.). RCRA, Subtitle I, directed EPA to establish
operating requirements and technical standards for tank design and installation, leak
detection, spill and overfill control, corrective action, and tank closure. The universe of
regulated tanks was extremely large and diverse, and included many small businesses.
Consequently, EPA phased in the tank regulations over a 10-year period (from 1988
through 1998). Strict standards for new tanks took effect in December 1988, and all tanks
were required to comply with leak detection regulations by late 1993. All tanks installed
before 1988 had to be upgraded (with spill, overfill, and corrosion protection), replaced,
or closed by December 22, 1998.
In 1986, Congress established a response program for leaking petroleum USTs
through the Superfund Amendments and Reauthorization Act (P.L. 99-499), which
amended RCRA Subtitle I. This law authorized EPA and states to respond to petroleum
spills and leaks, and created the Leaking Underground Storage Tank (LUST) Trust Fund
to help EPA and states cover the costs of responding to leaking USTs in cases where the
UST owner or operator does not clean up a site. Congress appropriates funds from the
trust fund each year, and EPA and the states use these funds primarily to oversee and
enforce corrective actions performed by responsible parties. EPA and the states also use
the appropriated funds to conduct corrective actions where no responsible party has been
identified, where a responsible party fails to comply with a cleanup order, or in the event
of an emergency; and to take cost recovery actions against parties. EPA or states have
been successful in getting responsible parties to perform most cleanups. In these cases,
the cleanup costs typically have been paid for by a state fund (discussed below), the
responsible party, and/or private insurance.
The 1986 law further directed EPA to establish financial responsibility requirements
to ensure that UST owners and operators are able to cover the costs of taking corrective
action and compensating third parties for injuries and property damage caused by leaking
tanks. As mandated, EPA issued regulations requiring most tank owners and operators
selling petroleum products to demonstrate minimum financial responsibility of $1 million.
Alternatively, owners and operators may rely on state assurance funds to demonstrate
financial responsibility, saving them the cost of purchasing private insurance.
State Funds. Most states established financial assurance funds. Unlike the federal
LUST Trust Fund, state funds often are used to reimburse financially solvent tank owners
and operators for some or all of the costs of remediating leaking tank sites. Revenues for
state funds typically have been generated through gas taxes and tank fees and,
collectively, these funds have provided more cleanup funds than the LUST Trust Fund.
In recent years, states have collected and spent roughly $1 billion annually through their
funds. In FY2004, total annual revenues for state funds reached $1.47 billion, while
outstanding claims against state funds reached $1.76 billion, and in 12 states, outstanding
claims exceeded fund balances. Twenty states have extended their fund's original sunset
date to address the backlog of leaking tanks. Ten states have made a transition to private
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Leaking Underground Storage Tanks: Program Status and Issues, report, May 13, 2005; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc808876/m1/2/: accessed April 16, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.