The U.S. Environmental Protection Agency (EPA) estimates the average age of a currently open underground storage tank is 27 years old. With so many tanks rapidly approaching their 30th year of service, the milestone that traditionally marks the end of the equipment’s warranty, many convenience store retailers are confronting replacement costs. Here are three considerations for c-store retailers trying to determine the best path forward for their future underground storage tank equipment.
UST Upgrades
Preparing to install underground storage tanks takes planning and expertise. Source North America guides c-store retailers and their project partners through compatibility considerations not only as they relate to compliance obligations, but also with regard to UST equipment longevity. Contact Source North America today for assistance preparing fuel systems for future fuels.
1. Select replacement equipment that will support future fuels.
As expansion of electric vehicle infrastructure accelerates, it is becoming increasingly challenging for c-store retailers to predict what energy sources will dominate consumer preferences in the next 20 years. That notwithstanding, the U.S. Department of Agriculture has announced a new forthcoming biofuels funding program that will provide $100 million in grants for biofuels infrastructure. If c-store retailers can use these grants to install tanks approved for ethanol blends E-15 and greater or biodiesel blends B-20 and greater, they will be positioning themselves to bridge the transition between conventional motor fuels and alternative energy sources.
2. Select UST equipment engineered to meet existing and pending environmental compliance requirements, as well as environmental safety issues arising due to climate change.
Prior to selecting a UST, revisit existing and pending UST regulations to ensure new equipment will meet state standards for biofuel compatibility and leak prevention and detection. Convenience operations that are contemplating installing refurbished tanks to replace USTs that are nearing or have surpassed their warrantied service life should verify their state’s regulations for used tanks. There will likely be additional compliance requests, such as certification from an independent testing organization.
When considering UST needs for the future, retailers should also consider the impact climate change may have. For example, the EPA is guiding UST owners to prepare their equipment to prevent a release or incident that may result in the event of natural disasters including floods and wildfires.
3. Take UST financial responsibility into consideration.
Although c-store retailers may hesitate to invest in new tanks due to the costs, UST owners should know that meeting financial responsibility regulations for aging tanks is also becoming more challenging.
The EPA’s financial responsibility regulations require UST owners to prove they can cover the costs to clean up a site, correct environmental damage and compensate third parties who incurred injury or damage due to a release. Failure to meet financial responsibility obligations can result in fueling operations being shut down.
State funds and insurance are the two most common methods for proving that UST owners have sufficient funding to meet their financial responsibility. However, obtaining insurance for aging tanks is becoming more difficult. To increase the chances of obtaining coverage, insurance providers recommend that UST operators maintain thorough inspection; release detection and testing records; install new piping, sumps and spill buckets; and retrofit tanks with a double-walled interior. However, UST operators who follow these steps should still be prepared for higher premiums and larger deductibles.
Installation tip for 2022
Due to material shortages created by supply chain issues and a lack of trained technicians to install underground storage tanks, lead times for USTs have increased to several months. Plan ahead for this. Also be sure to download and fill out a UST birth certificate at the time of installation to ensure all the critical details of new UST equipment are on file.
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This post is sponsored by Source North America