Mercedes Mullins
If you want to get a diesel fuel tank on-site in Texas, you'll need to comply with the state's regulations for petroleum storage tanks (PSTs). The Texas Commission on Environmental Quality (TCEQ) oversees the registration and self-certification process for PSTs, which includes both underground and aboveground tanks. To receive a diesel fuel tank on-site, you'll need to register your tank with the TCEQ, obtain the necessary licenses and permits, and comply with any applicable regulations and safety standards. This includes getting a fuel tax bond and a tax license, as well as meeting any capacity and construction requirements.
| Characteristics | Values |
|---|---|
| Issuing authority | Texas Office of the Comptroller of Public Accounts |
| Requirements | Fuel tax bond, compliance with Texas Tax Code provisions, and Texas Motor Fuels Tax Law |
| Tax rate | $0.20 per gallon |
| Bond amount | Between $30,000 and $600,000 for businesses operating with diesel fuel, and between $10,000 and $600,000 for dyed diesel fuel operators |
| Licensing process | Complete the Texas Application for Fuels Tax License, provide business papers, Texas Identification Number, Federal Employer Identification Number (FEIN), and business address |
| Registration | Required for aboveground storage tanks with a capacity greater than 1,100 gallons, and all underground storage tanks |
| Fees | No annual registration fees as of September 1, 2007, but fees from before that date are still the responsibility of the tank owner |
| Self-certification | Required, with proof of financial assurance |
| Exemption | Farm or residential tanks under 1100-gallon capacity, tanks used for heating oil on the same premises, flow-through tanks, and tanks associated with oil or gas production regulated by the Railroad Commission of Texas |
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What You'll Learn
Texas diesel fuel tax permit requirements
The Texas diesel fuel tax permit is issued by the Texas Office of the Comptroller of Public Accounts. Wholesalers need to meet a range of licensing requirements, including posting a fuel tax bond. The current Texas diesel fuel tax rate is $0.20 per gallon—imported, blended or sold. That’s why all operators who import and export, supply, deal and blend fuels are required to get licensed and bonded. This guarantees their suitability to engage in the trade and a high level of responsibility to collect the taxes and duly pass them on to the respective authorities.
To obtain a Texas diesel fuel tax permit, you must get a fuel tax bond in an appropriate amount. The bond is continuous and must be kept active at all times during your licensing period. The bond ensures you will comply with Texas Motor Fuels Tax Law. For businesses operating with diesel fuel, the bond requirement is between $30,000 and $600,000. For dyed diesel fuel operators, it is between $10,000 and $600,000. The exact amount depends on your specific tax liability. The bond cost that you need to cover is only a small percentage of the amount you need to post.
Diesel fuel wholesalers in Texas need to get a tax license, and the specific requirements vary between the types of operations you might want to conduct, such as dealing, supplying, importing, exporting or blending. All licensees have to complete the Texas Application for Fuels Tax License. You need to provide your business papers for sole proprietorship, partnership or corporation, and fill in the respective parts of the application for your type of business entity. You also need to submit your Texas Identification Number, Federal Employer Identification Number (FEIN) and business address. On the application form, you can check the types of licenses you’d like to apply for, which can be more than one.
If tax is paid over 30 days after the due date, a 10% penalty is assessed. If the tax due on redirected fuel is paid after the due date, a penalty of $2,000 or five times the amount of tax due (whichever is greater) is assessed. A penalty of $200 is assessed on each subsequent sale of tax-free gasoline or diesel fuel in Texas that is not reported within 180 days of the original report of the sale.
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Registering and self-certifying diesel fuel tanks
To register and self-certify a diesel fuel tank in Texas, you must comply with the state's requirements for Petroleum Storage Tanks (PSTs). The Texas Commission on Environmental Quality (TCEQ) oversees the registration and self-certification process for PSTs, which includes diesel fuel tanks. Here is a step-by-step guide to registering and self-certifying your diesel fuel tank in Texas:
Step 1: Understand the Requirements
Before registering your diesel fuel tank, it is important to understand the requirements for PSTs in Texas. The TCEQ website provides detailed information on the specific requirements for underground and aboveground tanks used to store diesel fuel or other petroleum substances. Ensure that you carefully review the guidelines to determine if your tank is subject to regulation and what specific steps you need to take for compliance.
Step 2: Complete the Necessary Forms
The registration and self-certification process for diesel fuel tanks involves submitting the required forms to the TCEQ. The specific forms you need to complete may vary depending on the details of your tank and operation. The TCEQ provides a comprehensive guide to help you navigate the process, including the necessary forms for registration and self-certification. The Underground Storage Tank Registration and Self-Certification form (TCEQ-00724) is commonly used for diesel fuel tanks.
Step 3: Provide Required Information
When registering and self-certifying your diesel fuel tank, you must provide detailed information about your tank and operation. This includes basic information such as the tank's capacity, location, and usage. Additionally, you may need to submit technical details, such as release detection methods, corrosion protection measures, and any changes in ownership or tank status. Ensure that you have all the necessary information readily available to facilitate the registration process.
Step 4: Submit the Forms and Required Documentation
You can submit your registration and self-certification forms to the TCEQ either electronically through their e-Permitting system, STEERS, or via paper forms. When submitting your forms, ensure that you include all the required supporting documentation, such as proof of financial assurance, operator training certificates, and any other relevant information specified by the TCEQ. Submitting complete and accurate information will help expedite the processing of your application.
Step 5: Maintain Compliance and Renewals
Once your diesel fuel tank is registered and self-certified, it is important to maintain compliance with TCEQ regulations. This includes renewing your registration and delivery certificates annually and updating your registration within 30 days of any changes, such as modifications to the fuel product stored, tank status, or ownership. Additionally, if you are conducting construction or making significant changes to your tank system, you must notify the TCEQ in advance and submit the necessary construction notification forms.
By following these steps and staying informed about the TCEQ's requirements, you can successfully register and self-certify your diesel fuel tank in Texas, ensuring compliance with the state's regulations for PSTs.
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Aboveground storage tank regulations
Aboveground storage tanks (ASTs) in Texas are regulated by the Texas Commission on Environmental Quality (TCEQ) for the protection of the environment and public health. ASTs that contain petroleum products and have a capacity of over 1100 gallons are regulated by the TCEQ, with some exceptions.
Some ASTs that are exempt from TCEQ regulation include:
- Tanks used for temporary emergency overflow or spill protection, provided they are emptied within 48 hours and inspected for release every 30 days.
- Tanks containing diluted petroleum concentrations not suitable for fuel.
- Transformer or electrical equipment used to transmit electrical current.
- Farm or residential tanks with a capacity of less than 1100 gallons.
- Tanks used for heating oil on the same premises.
- Tanks associated with the development and production of oil or gas that are already regulated by the Railroad Commission of Texas.
- Septic tanks, surface ponds or lagoons, and stormwater collection tanks.
If your AST is regulated by the TCEQ, you must notify the commission of any construction, installation, or removal work at least 30 days before starting the work. You can do this by submitting form TCEQ-00495, Aboveground and Underground Storage Tank Construction Notification, or through the STEERS system. Additionally, you must keep records of each tank's location, status, and the type of petroleum product stored to demonstrate compliance with the rules.
It is important to note that diesel fuel wholesalers in Texas need to obtain a tax license and comply with the Texas diesel fuel tax rate of $0.20 per gallon. To obtain a diesel fuel tax permit, businesses must obtain a fuel tax bond ranging from $30,000 to $600,000, depending on their specific tax liability. This bond ensures compliance with the Texas Motor Fuels Tax Law and guarantees that taxes collected on fuel sales will be passed on to the relevant authorities.
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Underground storage tank regulations
In Texas, the installation of an underground diesel fuel tank is subject to a range of regulations and requirements. The Texas Commission on Environmental Quality (TCEQ) is the primary regulator for both underground (UST) and aboveground storage tanks (AST) that contain petroleum products.
Owners of regulated petroleum storage tanks must notify the TCEQ of any construction or installation activity at UST and AST sites. This notification must be submitted at least 30 days before the work begins, using the STEERS system or Form TCEQ-00495. The TCEQ also requires the reporting of all leaks and spills of more than 25 gallons or any spill that causes a sheen on the water. If the cleanup cannot be completed within 24 hours, even if the spill is less than 25 gallons, it must be reported.
For diesel fuel wholesalers in Texas, a tax license is required, and all operators who import, export, supply, deal, or blend fuels must be licensed and bonded. The Texas diesel fuel tax permit is issued by the Texas Office of the Comptroller of Public Accounts, and the current tax rate is $0.20 per gallon. To obtain this permit, a fuel tax bond in an appropriate amount, typically between $30,000 and $600,000, must be posted. This bond ensures compliance with the Texas Motor Fuels Tax Law and serves as a guarantee that all collected taxes will be duly passed on to the relevant authorities.
There are specific exemptions from TCEQ regulation for ASTs. These include tanks used for emergency overflow or spill protection, tanks containing diluted petroleum concentrations not suitable for fuel, transformers or electrical equipment used to transmit electrical current, and farm or residential tanks with a capacity of less than 1100 gallons. Tanks above the floor surface in an underground location, such as a basement, are not included in the regulations if the main substance is hazardous. However, those claiming an exemption must provide supporting evidence, such as installation records, delivery receipts, or facility plans.
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Getting a fuel tax bond
To get a diesel fuel tank on-site permitting in Texas, you must comply with the Texas Commission on Environmental Quality (TCEQ) regulations for Petroleum Storage Tanks (PSTs). This includes registering and self-certifying your tank and complying with any applicable cleanup requirements in the event of a spill or leak. Additionally, you need to obtain a diesel fuel tax permit from the Texas Office of the Comptroller of Public Accounts. A key requirement for obtaining this permit is getting a fuel tax bond.
A fuel tax bond, also known as a surety bond, is a license requirement for fuel sellers that protects the public and the state from financial harm due to the seller's noncompliance with fuel tax laws and other regulations. It is a guarantee that the seller will comply with all relevant laws and pay all taxes, penalties, and interest owed. In Texas, the fuel tax bond specifically ensures compliance with the Texas Motor Fuels Tax Law.
The cost of a fuel tax bond in Texas depends on the type of fuel and the specific tax liability of your business. For diesel fuel businesses, the bond requirement is typically between $30,000 and $600,000. For dyed diesel fuel operators, the requirement is between $10,000 and $600,000. The exact amount is determined by the Texas Comptroller on an individual basis and is usually set at twice the greatest tax liability for a reporting period.
To obtain a fuel tax bond, you can contact a surety bond company or agency, such as Surety Bonds Direct or Pacific Surety, which offer free quotes and assistance in acquiring the necessary bonds. The cost of the bond for you, the buyer, is only a small percentage of the total bond amount. If you have good credit, you can expect to pay between 1% and 5% of the bond amount. Even with substandard credit, surety bond companies can often work with you to secure a bond at a reasonable rate.
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Frequently asked questions
PST stands for Petroleum Storage Tank.
The Texas diesel fuel tax permit is issued by the Texas Office of the Comptroller of Public Accounts. The main requirement for obtaining your Texas diesel fuel tax permit is to get a fuel tax bond in an appropriate amount. The bond requirement is between $30,000 and $600,000 for businesses operating with diesel fuel. All licensees have to complete the Texas Application for Fuels Tax License and provide their business papers.
The requirements for registering a PST in Texas include providing technical information, such as the release detection method and corrosion protection. You must also submit a Construction Notification Form if the work involves installing, replacing, or removing a tank or tank system.
To receive fuel delivery authorizations, you must submit a notification of construction form to the TCEQ. They will then send you a temporary delivery authorization, which will expire 90 days after you receive the first delivery. After receiving your first fuel delivery, you must send in a registration form within 30 days.
Only ASTs with a capacity greater than 1,100 gallons require registration. Tanks that are exempt from regulations include farm or residential tanks under 1,100-gallon capacity, tanks used for heating oil on the same premises, and septic tanks.
