Department of Environmental Quality - Underground Storage Tank Program

This report addresses issues related to the State’s program for cleaning up leaking underground storage tank sites. We found that the fund established to financially assist leaking tank owners with cleanup costs had a backlog of $48 million in claims as of October 1997, primarily because claims have far exceeded revenues. Either an increase in the current one cent-per gallon gas tax or a general fund appropriation is needed to address the current claims backlog and additional future claims, estimated at $279 million in January 1997. Other options should also be considered to encourage tank owners to more quickly comply with more stringent federal standards that are upcoming and allow the assistance program to terminate sooner.

Arizona also needs to expedite implementation of a risk-based corrective action program that allows cleanup efforts to match the relative risk to public health and the environment, rather than providing maximum cleanup as is currently mandated by statute. The EPA has recommended and at least 13 other states have implemented this type of risk-based program, resulting in more site closures and estimated cost savings of 10 to 40 percent. Further, ADEQ needs to assess whether program administrative costs are excessive, and address backlogs and delays in reviewing and approving tank owner reports regarding site cleanup steps.