Understanding Petroleum Storage Tank Compliance
by Joanie Arrott
To save time, it’s important to note which petroleum storage tanks (PSTs) are actually regulated.
Only aboveground storage tanks (AST), used for fuel storage, with a capacity greater than 1,100
gallons are regulated. ASTs that are smaller in capacity or do not contain motor fuel substances,
are not regulated by the PST rules. However, all underground tanks (USTs) initiated on or after
September 1, 1987, that contain fuel substances are regulated by the PST rules, no matter the
capacity of the tank. USTs are also regulated even if they are empty or no longer in use.
Petroleum Storage Tank Basics
The Texas Commission on Environmental Quality (TCEQ) is the governing agency, and they
handle registration, construction, maintenance, abandonment, etc. Licensure and/or registration
is required for any individual involved in installation, repair, corrosion control, fuel-handling,
and removal of the actual tanks and any piping or other system equipment. A petroleum product
is defined as a petroleum substance capable of being used as a motor fuel. These rules may
apply to tanks that are no longer being used for fuel storage.
Aboveground Tank Owners/Operators
As stated above, only ASTs with a capacity greater than 1,100
gallons are regulated. Any regulated AST, initiated on or after
September 1, 1989, must be registered with the TCEQ within 30
days after the date any motor fuel is dispensed into them. Upon
receipt of the registration forms, they will issue a registration
delivery certificate for the tanks to the operating facility listed on
the registration forms. Receiving fuel without a current, valid
fuel delivery certificate is a violation of TCEQ rules and may
result in fines and penalties. As of September 1, 2007, there are no annual fees assessed with
registration submittals. Any fee that required payment prior to that date will continue to be the
responsibility of the tank owner. This includes fees for tanks that were not properly registered by
that date. Financial assurance is not required for aboveground tanks.
Each year, the registration delivery certificate must be renewed to continue to receive fuel
deliveries, by filing a complete renewal application before the certificate expires. The TCEQ
sometimes sends out reminder letters to all registered owners regarding annual renewal
deadlines. For new construction or purchases, a notification form must be submitted to the
TCEQ at least 30 days prior to installation. The same notification is required for other activities
such as: removal, replacement, abandonment, repair, or returning a tank to service.
If your facility is located in the San Antonio area (Comal, Bexar, Medina, Uvalde, or Kinney
counties) or in the Austin area (Williamson, Travis, or Hays County), you lie in what is known as
the “contributing zone”. The TCEQ has designated this as the area or watershed where runoff
from precipitation flows to the recharge zone of the Edwards Aquifer. AST facility plans are
required for the installation of permanent tanks, containing static hydrocarbons or hazardous
substances, at a facility that will have a total capacity of 500 gallons or more, and will be located
on either the recharge or transition zones of the Edwards Aquifer. Specific application forms,
found at the TCEQ website, and supplemental information must be submitted for review and
approved by the TCEQ prior to installation. A $650 fee is also associated for each tank.
Underground Tank Owners/Operators
As stated previously, all USTs initiated on or after September 1, 1987, are regulated and must be
registered with the TCEQ within 30 days after the date any motor fuel is dispensed into them, no
matter the capacity of the tank. Even empty or unused USTs must be registered. Upon receipt of
the registration forms, the TCEQ will issue a registration delivery certificate for the tanks at the
facility covered by that registration. There are also no annual fees assessed with registration
submittals. However, proof of financial assurance is required with all annual re-certifications of
USTs.
Annual renewal of delivery registration certificates is also required, at least 30 days before the
current one expires. Notification forms must be submitted at least 30 days prior to most
activities, including construction, new installation, repairs, upgrades or improvements, and
integrity assessments. Once notification is received, most construction activities will be
inspected by regional TCEQ officers. There are also specific time constraints regarding
notification confirmation and rescheduling of construction or installation dates. Once selfcertified, a permanent label must be
affixed on or near the tank, allowing a physical match of the tank in the ground with the one
listed on the self‐certification form. The tank number must be visible. Other technical standards
also apply, including proper labeling of each fill pipe.
All corrosion‐protection systems must be tested upon installation, three to six months later, and
every three years after. Additionally, for impressed current systems, the rectifier must be read
every 60 days. An approved monthly release‐detection method is also required for all USTs.
There are many methods available for monitoring your tanks and piping for leaks, and they may
be used in multiple combinations to achieve compliance. Some methods cover tanks only, some
cover piping only, and some cover both tank and piping. Inventory control, including daily fuel
inventory and your monthly water check, is not an acceptable stand-alone method to meet release
detection requirements.
If you are planning on removing your UST from the ground, there are technical documents
available from the TCEQ outlining the procedure. The services of a UST licensed contractor
must be retained to handle the entire procedure, as a minimum. Proper notification and
preparation is required prior to removal. Once notification has been submitted, it must be
determined whether or not any prior release of a stored regulated substance has occurred from
the system. There are various sampling methods available for release determination. These
requirements also apply to permanent abandonment of one or more USTs.
Spill Procedures
Leaks from storage tank systems can have devastating environmental and
economic impacts. Small quantities of diesel and gasoline can cause
offensive odors, contaminate surface and subsurface soils, render drinking
water from aquifers non-potable and create explosive build-ups of vapors in underground
structures. From 1989 through 2002, 85% of groundwater contamination incidents were caused
by leaking storage tanks. By spilling only one gallon of oil, one million gallons of water can be
contaminated.
Owners must report any release from a petroleum storage tank that exceeds the legal reportable
quantity to the TCEQ within 24 hours of release. The reportable quantity is 25 gallons onto land
and any amount great enough to create a sheen into water. Information must also be submitted
after having 2 discharges (over 42 gallons) in any 12-month period or a single discharge of more
than 1,000 gallons.
Storage tank owners must also comply with spill prevention rules, specifically the Oil Pollution
Prevention Act. These rules require some facilities that operate petroleum storage tanks to
implement a Spill, Prevention, Control, and Countermeasure (SPCC) Plan. Districts with a total
AST storage capacity of greater than 1,320 gallons or total UST capacity greater than 42,000
gallons must have a SPCC Plan written and executed. A school district is also regulated if it
could discharge into U.S. waters or adjoining shorelines, based on its location. Plans should
have been implemented as of by August 18, 2006. Owners must conduct employee training on
the contents of the SPCC Plan for all fuel handling employees.
Recent Rule Changes
As of January 1, 2009, secondary containment is required for new tanks, some new piping, new
dispensers, and it will also apply to any such replacement parts during your on-going tank
maintenance program. New dispensers must be equipped with sumps. Dispenser sumps also
have regular testing schedules for tightness and sensor alarms. Double-check your contract with
your tank maintenance vendor to ensure required tasks (i.e. monthly reporting, bi-monthly
inspections, and regular testing) are being conducted with minimal additional fees.
Specific Locations
Facilities located in Brazoria, Chambers, Collin, Dallas, El Paso, Fort Bend, Galveston, Hardin,
Harris, Jefferson, Liberty, Montgomery, Orange, Tarrant, or Waller counties, lie in a “nonattainment area”. This means that these areas are not attaining the outdoor air quality levels as
required by the federal Clean Air Act. Special permits and/or registrations are required for any
activities that might add to the air pollution in these 16 counties. Dispensing fuel from a tank
into a vehicle has the potential to release noxious vapors into the outdoor air and must be
minimized by capturing the vapors while they are being dispensed.
This process of capturing vapors, known as Stage II Vapor Recovery, occurs by applying
specific engineering controls to the dispensing system on both aboveground and underground
tanks. Stage I applies to vapors that delivery trucks emit while dispensing into tanks. We
recommend checking the specifications on your dispensing system. Facilities that have Stage II
vapor recovery systems which were installed before April 1, 2005 must have their equipment
upgraded to an onboard refueling and vapor recovery (ORVR) compatible system, and the
upgrade must have been completed by April 1, 2007. All Stage II equipment installed after April
1, 2005, must be ORVR compatible.
Districts may be exempt from Stage II requirements if: they do not have stationary fuel tanks, do
not dispense fuel into motor vehicles, fuel dispensing operations have ceased, or the amount of
fuel dispensed is less than the monthly amount. The monthly amount includes tanks that are
older than November 15, 1992 and have never dispensed more than 10,000 gallons during any
month from January 1, 1991 to the present. This monthly amount does not apply to months
during documented emergencies or natural disasters. Districts can apply for Stage II exemption
status by completing the necessary forms and submitting them to TCEQ. If accepted, an annual
update and re-confirmation of a facility’s exemption qualifications must be filed every year by
January 31.
Recordkeeping & Inspections
Owners and operators of all storage tank systems are responsible for developing and maintaining
all records in a secure location on the premises of the facility and making them immediately
accessible for reference and for inspection upon request. Paperwork submitted to the TCEQ for
review, including registration delivery certificates, self-certification, and notification forms,
should be maintained for at least three years. Paperwork related to the upkeep of your PST,
including installation records and maintenance records, should be maintained for the life of the
tank. Paperwork related to regulatory compliance, including pressure-testing and monitoring
records, corrosion protection logs, and financial assurance policies, should be maintained for at
least five years.
TCEQ representatives have the authority to conduct routine inspections of all PSTs, they must
follow-up on any related complaints. The Texas General Land Office (GLO) also has
jurisdiction over any PST that could produce spills able to reach coastal waters. Other agencies
that also have the authority to conduct inspections include: State Fire Marshal’s Office, Texas
Department of Insurance, any local fire marshal, and any other authority having jurisdiction.
These entities are also good resources to contact for more information.
Here are some helpful links:
Texas Commission on Environmental Quality
http://www.tceq.state.tx.us/nav/permits/pst_cert.html
Texas Department of Public Safety
http://www.txdps.state.tx.us/schoolbus/links.htm
Small Business & Local Government Assistance
www.sblga.info
Texas Association for Pupil Transportation
www.tapt.com
Environmental Protection Agency
http://www.epa.gov/emergencies/content/spcc/index.htm
School Transportation Security Awareness
http://www.tsa.gov/what_we_do/tsnm/highway/stsa.shtm
If you have any questions regarding PST compliance, contact your Loss Prevention Consultant.