Rajan Wilcox
The laws regarding old gas station fuel tanks are stringent due to the potential environmental and public health risks associated with leaking underground storage tanks (USTs). Gasoline leaks from service stations are a common source of groundwater pollution, which is a serious issue as approximately half of the US population relies on groundwater for drinking. To address this, the US Environmental Protection Agency (EPA) has set standards and regulations for USTs, aiming to prevent leaks, detect them early, and ensure proper cleanup. These regulations include requirements for leak detection systems, cathodic protection, and compatibility with renewable fuels like ethanol. Additionally, the EPA provides federal funds to identify and address leaking tanks, with cleanup typically done by the responsible private party. The Superfund Amendments and Reauthorization Act established the Leaking Underground Storage Tank (LUST) Trust Fund to address petroleum spills and leaks, funded by a tax on motor fuel. Compliance with these laws is crucial when purchasing an existing gas station to avoid environmental issues and liability risks.
| Characteristics | Values |
|---|---|
| Regulatory Bodies | EPA, NRC, DEC, OSHA |
| Types of Tanks | Underground Storage Tanks (USTs), Aboveground Storage Tanks (ASTs) |
| Applicable Laws/Regulations | Resource Conservation and Recovery Act (RCRA), Small Business Liability Relief and Brownfields Revitalization Act, Petroleum Bulk Storage (PBS) regulations, Navigation Law, Natural Gas Act |
| Tank Requirements | Prevent leaks and spills, Proper fuel storage and handling, Dual containment/secondary containment, Leak-detection systems, Spill and overfill equipment |
| Excluded Tanks | Farm and residential tanks (1,100 gallons of non-commercial motor fuel), Tanks storing heating oil for on-site use, Tanks on/above floors in underground areas |
| Funding/Costs | Leaking Underground Storage Tank Trust Fund, Brownfields grants, Cleanup costs: $3,000-$8,000 (leak detection), $10,000-$48,000 (cathodic protection), $76,000-$100,000 (3 new 10,000-gallon tanks) |
| Compliance and Enforcement | Licenses and permits, Environmental compliance, Safety standards, Lease agreements |
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What You'll Learn
- Underground storage tanks (USTs) must adhere to stringent regulations to prevent soil and groundwater contamination
- The EPA provides federal funds to identify and address leaking tanks and ensure cleanup
- Gas stations need various licenses and permits to operate legally, including business licenses, fuel permits, and environmental permits
- The EPA's Brownfields Program received $1.5 billion in funding in 2021 to aid in the cleanup and reuse of petroleum-contaminated sites
- New chemical tanks are required to have dual containment and leak-detection systems
Underground storage tanks (USTs) must adhere to stringent regulations to prevent soil and groundwater contamination
Underground storage tanks (USTs) are subject to stringent regulations to prevent soil and groundwater contamination. These regulations are necessary due to the potential environmental and health risks associated with USTs. Gasoline leaks from service stations, for instance, are a common source of groundwater pollution, threatening human health and the environment.
UST regulations aim to ensure the safe operation and proper closure of these tanks. In the United States, the Environmental Protection Agency (EPA) has issued comprehensive requirements for underground storage tanks, addressing the risks posed by petroleum and chemical products stored underground. The EPA estimates that over 95% of the nation's two million USTs hold petroleum products, with 80% being unprotected bare-steel tanks prone to corrosion and leaking.
To mitigate these risks, the EPA mandates that new chemical tanks have dual containment, either through double-walled tanks or concrete vaults, and be equipped with leak-detection systems. Spill and overfill equipment is also required to prevent releases from UST systems. Additionally, the EPA provides federal funds to identify and address leaking tanks, with cleanups typically accomplished by the responsible private party.
UST regulations also apply to specific excluded tanks, such as those storing heating oil for on-site consumptive use. While these tanks are excluded from federal UST regulations, they may still be subject to state or local regulatory agencies' oversight. It is important for UST owners to understand the specific requirements and exclusions for their tank type and location.
Beyond federal regulations, states like New York have enacted laws to regulate USTs and Aboveground Storage Tanks (ASTs). The New York State Department of Environmental Conservation (NYSDEC) has the authority to regulate these tanks and requires owners to register petroleum bulk storage facilities. This multi-level regulatory approach ensures compliance and protects land, water, and air resources.
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The EPA provides federal funds to identify and address leaking tanks and ensure cleanup
The operation and management of gas stations involve complex legal considerations and regulatory compliance due to the nature of handling petroleum products and serving the public. Gas stations are subject to stringent regulations to prevent soil and groundwater contamination from leaking underground storage tanks (USTs). These regulations are enforced by the U.S. Environmental Protection Agency (EPA), which has issued comprehensive requirements for nearly two million USTs, half of which store gasoline at service stations.
The EPA's standards for USTs aim to protect local water supplies from contamination by petroleum and chemical products. These standards ensure that tanks are operated safely during their lifetime and properly closed when removed from service. The EPA has determined that corrosion of bare steel accounts for almost all leaks from underground tanks, and new chemical tanks are now required to have dual containment and leak-detection systems. Existing chemical tanks have until the end of ten years to meet these requirements, while existing petroleum tanks must comply with leak-detection requirements based on a schedule that considers the age of the tank.
In addition to the EPA's regulations, individual states have their own laws and programs to address USTs. For example, New York's Department of Environmental Conservation (DEC) regulates USTs and Aboveground Storage Tanks (ASTs) through its Environmental Conservation Law. The DEC promotes responsible waste management, monitors contaminated site cleanups, and safeguards the environment. Other states may have similar programs or initiatives to address leaking USTs and encourage the cleanup and reuse of contaminated sites.
The EPA also encourages the cleanup and revitalization of contaminated properties through its Brownfields Program, which received a $1.5 billion investment through the Bipartisan Infrastructure Law in 2021. This program focuses on the assessment and cleanup of petroleum brownfields, prioritizing low-risk releases. The EPA's Office of Underground Storage Tanks (OUST) and Office of Brownfields and Land Revitalization (OBLR) work jointly to address federally regulated leaking UST sites and promote the reuse of petroleum-contaminated sites.
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Gas stations need various licenses and permits to operate legally, including business licenses, fuel permits, and environmental permits
Operating a gas station involves complying with complex legal considerations and regulatory requirements due to the nature of handling petroleum products and serving the public. Gas stations need various licenses and permits to operate legally, including business licenses, fuel permits, and environmental permits.
Business licenses are necessary for any commercial enterprise, including gas stations, to operate legally. These licenses are typically issued by local or state authorities and outline the permitted activities and restrictions associated with running a gas station.
Fuel permits are specific to the handling and storage of fuel. Gas stations must adhere to stringent regulations to ensure the safe storage and handling of fuel, preventing leaks and spills that can pose environmental and safety hazards.
Environmental permits are crucial for gas stations to comply with environmental regulations. These permits address the potential environmental risks and liabilities associated with gas station properties, such as soil and groundwater contamination. Gas stations are responsible for prompt remediation and cleanup in the event of a fuel spill or leak to mitigate environmental impacts.
In addition to federal regulations, state and local laws may also apply to gas stations. For example, the New York State Legislature enacted the "Control of the Bulk Storage of Petroleum" law, which gives the Department of Environmental Conservation (DEC) authority to regulate underground and aboveground storage tanks (USTs and ASTs). The DEC issues permits and licenses to ensure compliance with environmental regulations, protecting the land, water, and air resources in New York.
The regulatory landscape for gas stations is complex, and non-compliance can have severe consequences. Working with legal professionals specializing in gas station real estate and regulatory compliance can help owners navigate these complexities, protect their rights, and ensure the safe and efficient operation of their businesses.
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The EPA's Brownfields Program received $1.5 billion in funding in 2021 to aid in the cleanup and reuse of petroleum-contaminated sites
In the United States, the Environmental Protection Agency (EPA) is responsible for setting standards for underground storage tanks (USTs) to ensure they do not pose a public health or environmental threat. EPA's standards require that USTs are operated safely and closed properly when removed from service, protecting local water supplies from contamination by petroleum and other chemical products stored underground.
USTs have been a significant source of ground-water pollution, with leaks, spills, and overfills threatening human safety and health, as well as the environment. As of March 2025, there were 579,356 confirmed releases from UST systems. To address this, the EPA provides federal funds to identify and address leaking tanks, with the Leaking Underground Storage Tank Trust Fund set up by Congress in 1986 to collect $500 million over five years through a tax on gasoline.
The EPA's Brownfields Program provides grants and technical assistance to communities, states, tribes, local governments, and non-profit organizations to assess, safely clean up, and sustainably reuse contaminated properties, including those impacted by petroleum contamination. The program has proven successful, with communities now able to address and manage contaminated properties effectively.
In 2021, the Bipartisan Infrastructure Law invested $1.5 billion in the EPA's Brownfields Program. This funding will be used to support the cleanup and reuse of petroleum-contaminated sites, including abandoned gas stations. The Brownfields Program offers several types of grants to support these efforts, including Brownfields Assessment Grants, Brownfields Revolving Loan Fund Grants, Brownfields Cleanup Grants, Multipurpose Grants, and Environmental Workforce Development and Job Training Grants.
The EPA's Office of Underground Storage Tanks (OUST) and Office of Brownfields and Land Revitalization (OBLR) work jointly to focus on the cleanup and reuse of petroleum-contaminated sites, ensuring that these sites no longer blight neighborhoods and threaten human health and the environment.
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New chemical tanks are required to have dual containment and leak-detection systems
The operation and management of gas stations are subject to complex legal considerations and regulatory compliance due to the nature of handling petroleum products and serving the public. Gas stations are required to have proper systems in place to store and handle fuel safely, preventing leaks and spills. Underground storage tanks (USTs) are subject to stringent regulations to prevent soil and groundwater contamination.
UST systems that are part of an emergency generator system at nuclear power generation facilities licensed by the Nuclear Regulatory Commission (NRC) are subject to specific design and quality criteria. Aboveground storage tanks that are part of a UST system associated with airport hydrant fuel distribution systems are also partially excluded from UST regulation.
USTs that store petroleum products are of particular concern due to the risk of corrosion and leakage over time. EPA estimates that over 95% of the nation's two million USTs hold petroleum products, with 80% being unprotected bare-steel tanks that are likely to corrode and leak. As of March 2025, there were 579,356 releases confirmed from UST systems, caused by leaks, spills, and overfills, threatening human safety, health, and the environment.
To address this issue, the U.S. Environmental Protection Agency (EPA) has issued comprehensive and stringent requirements for nearly two million USTs. These new controls aim to protect local water supplies from contamination by petroleum and chemical products. Specifically, new chemical tanks are required to have dual containment (also known as secondary containment) and leak-detection systems. Dual containment can be achieved through the installation of double-walled tanks, concrete vaults, or impenetrable liners around the tank. The leak-detection system must be installed between the two layers of containment. Spill and overfill equipment is also mandatory for new chemical tanks.
Existing chemical tanks have a 10-year period to meet the same dual-containment and leak-detection requirements as new tanks. In the interim, they must comply with the leak-detection requirements imposed on existing petroleum tanks. The cost of installing leak-detection systems varies depending on the size and number of tanks, ranging from $3,000 to $8,000 for a typical gas station with three 5,000-gallon tanks.
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Frequently asked questions
The US Environmental Protection Agency (EPA) has set standards for underground storage tanks (USTs) to ensure they no longer pose a public health or environmental threat. The EPA estimates that over 95% of the nation's two million USTs hold petroleum products, with 80% being unprotected bare-steel tanks that are likely to corrode and leak. The EPA now requires new chemical tanks to have dual containment and leak-detection systems installed. Additionally, the EPA provides federal funds to identify and address leaking tanks and ensure cleanup, with funds coming from the Leaking Underground Storage Tank Trust Fund.
In New York, the Department of Environmental Conservation (DEC) regulates petroleum tanks through Article 17, Title 10 of the Environmental Conservation Law, which applies to both USTs and aboveground storage tanks (ASTs). Owners of petroleum bulk storage facilities are required to register with the DEC and must renew their registration every five years.
Residential tanks storing less than 1,100 gallons of motor fuel for non-commercial purposes are excluded from federal UST regulations. However, they may be subject to state or local regulations, so it is important to check with the relevant authorities.
