According to the North Bay Business Journal, many businesses in the San Francisco Bay area with leaking USTs in their charge are not being reimbursed for the mandatory removal and cleanup of the toxic leaking tanks. UST removal and cleanup is normally an expensive undertaking, easily costing tens of thousands of dollars depending on the size of the site and extent of environmental damage.

In Sonoma, Napa, and Marin Counties, a total of 552 leaking USTs have some form of open claim for cleanup work being performed. The claims represent work in various stages of completion. Most of the leaking tanks are in Sonoma County, which has 414 according to the state water board’s records. Marin County has 83 leaking tanks, and Napa has 56.

The water board had to suspend some 1,300 claims earlier this year because of an $80 million shortage in the fund. For active claims, the board decided to delay reimbursements by 18 months. The shortage has put a severe strain on many companies that do not have the capital or financial resources available to comply with the state’s codes without the government’s help. Companies with cleanup work in progress whose claims have been suspended are seeking bridge financing for work until the state’s funds are replenished.

One Eureka-based environmental project manager told the North Bay Business Journal that the lack of UST cleanup funds is having a ripple effect on his industry. “The slowdown in tank cleanup reimbursement affects not only site owners and but also the flow of work for environmental consulting firms and the subcontractors they work with, such as analytical laboratories and well drillers,” the Business Journal reported.

According to the Environmental Protection Agency’s Office of Underground Storage Tanks (OUST), California has a backlog of nearly 11,500 leaking tanks awaiting cleanup. Even the slowest leaking tanks can release several gallons of fuel and other hazardous substances into the surrounding land each year, polluting millions of gallons of water and tons of soil.

The water board is currently assembling a task force comprised of environmental consultants, tank owners and operators, and regional water board members that will explore ways to reform and hopefully fix the state’s depleted UST fund.

SOURCE: Leaking Underground Storage Tanks › California’s UST cleanup funds have dried up

The rule came about after California experienced a series of massive environmental disasters stretching back 30 years – disasters that  involved underground storage tanks releasing tons of hazardous liquids into the land and water. Now, to play it safe, the state wants no doubt that even the newest, double-walled tanks can handle new types of fuel without sprouting leaks.

The decision has caused an outcry among gas stations that sell biodiesel, consumers who buy it, companies that make it, and environmentalists who advocate it – all of whom claim the move represents a step backward for California’s green movement.

One biodiesel dealer in San Jose told the Mercury News that the legislation requiring above-ground tanks kills his biodiesel business. “I’m not going to do that. I have no place to put them. And you are talking about $50,000 or more to buy the tank and put the monitoring system on it,” Bob Brown told the Mercury News. He added that he would continue to sell B5 to B20 biodiesel blends, as they can be stored in the USTs, but that he would discontinue selling B99, B50, and other high-grade bio blends.

Bill Rukeyser, a spokesman for the state water board, defended the state’s decision. Rukeyser told the Mercury News that California had to err on the side of caution. “We learned a real lesson. We’ve not forgotten that lesson. We don’t want to repeat that,” Rukeyser said.

Biodiesel consists of plant oils and recycled animal fats. The fuel’s “B” number indicates its percentage of environmentally friendly oils. The higher the number, the purer the fuel is and the cleaner it is to burn.

Although biodiesel has been available in California for 10 years, federal tax incentives led to a surge in the fuel’s popularity between 2005 and 2008, when demand for it grew ten times.

SOURCE: Leaking Underground Storage Tanks › New UST law may kill California’s biodiesel business