Associations oppose delay in EPA's UST rule

Four petroleum marketing-related associations have complained about the U.S. Environmental Protection Agency's decision to offer a grace period to tank owners not in compliance with underground storage tank (UST) regulations.

The American Petroleum Institute, the Petroleum Marketers Association of America, the Society of Independent Gasoline Marketers of America, and the National Association of Convenience Stores lodged the complaint.

API said, "EPA announced its confusing grace period decision just days before the Dec. 22 compliance deadline for these environmentally protective regulations to upgrade underground storage tank systems. Tank owners have known about the deadline to meet these requirements for 10 years."

It said the EPA decision, in essence, penalizes all UST owners that have made significant effort and financial commitment to comply with the deadline.

The organization said, "API members and others in our industry have expended hundreds of millions of dollars to comply. There has been great industry cooperation with the EPA and states, and a mutual commitment to the deadline.

"Based on the trust developed through this long-term cooperation, small business owners in particular have committed significant amounts of their total capital to conform to legal requirements. Some of their competition have now gained advantage by this (enforcement) delay," API said.

The oil group said EPA has indicated it may not even penalize a small group of tank owners for their lack of action in meeting the compliance deadline.

"The agency's action is of particular concern to the small business owners who made the commitment to meet the requirements by either upgrading their facilities or closing their tanks."

API noted EPA's delay may put responsible suppliers at risk because they will be asked to deliver fuels to storage tanks that have not been upgraded. In some states, such action would be in violation of state law.

It said it is unclear who is eligible to receive dispensation from EPA. "The agency has said its new enforcement strategy is designed to help local municipalities and small business owners, but under the agency's latest action, it appears any owner may come forward under the EPA's own audit policy," said API. API noted that EPA has repeatedly said that states (other than New York, Hawaii, and Idaho) will have primary enforcement.

"The agency's new tank regulation enforcement strategy states that 'owners and operators of underground storage tanks should recognize that disclosure of violations under the Federal Audit Policy does not provide protections from state enforcement action.'"

API also said EPA has not clearly defined how long this grace period will last; it noted that EPA said only that 6 months is the "appropriate" amount of time.