	Most Tanks Have Been Upgraded, but Many Are Not Properly Operated and Maintained

Based on state responses to our survey, we estimated that nearly 617,000,  or about 89 percent of the approximately 693,000 regulated tanks states  manage, had been upgraded with the federally required equipment by the  end of fiscal year 2000. Even though most tanks have been upgraded, we estimated from our  survey data that more than 200,000 of them, or about 29 percent, were not  being properly operated and maintained, increasing the risk of leaks. Some upgraded tanks also continue to leak, in part because of operational  and maintenance problems. For example, in fiscal year 2000, EPA and the  states confirmed a total of more than 14,500 leaks or releases from  regulated tanks, with some portion coming from upgraded tanks. The states reported a variety of operational and maintenance problems,  such as operators turning off leak detection equipment. The states attributed these  problems to a lack of training for tank owners, installers, operators,  removers, and inspectors. Most States Do Not Meet EPA’s Recommendation to Inspect All Tanks Every 3 Years or Have the Enforcement Tools Needed to Identify and Correct Problems

According to EPA’s program managers, only physical inspections can  confirm whether tanks have been upgraded and are being properly  operated and maintained. Officials in 40 states said that they would support a  federal mandate requiring states to periodically inspect all tanks, in part  because they expect that such a mandate would provide them needed  leverage to obtain the requisite inspection staff and funding from their  legislatures. As figure 3  illustrates, at the time of our survey, 27 states reported that they did not  have the authority to prohibit suppliers from delivering fuel to stations  with problem tanks, one of the most effective tools to ensure compliance. States Have Made Progress in Cleaning Up Leaks but Still Face a Potentially Large Workload; Some May Need Federal Funds to Help Address It

At the end of fiscal year 2002, EPA and states had completed cleanups of  about 67 percent (284,602) of the 427,307 known releases at tank sites. However, states still have to  ensure that ongoing cleanups are completed for another 23 percent  (99,427) and that cleanups are initiated at a backlog of 43,278 sites. However, in addition to their known  workload, states may likely face a potentially large but unknown future  cleanup workload for several reasons: (1) as many as 200,000 tanks may be  unregistered or abandoned and not assessed for leaks, according to an  EPA estimate; (2) tens of thousands of empty and inactive tanks have not  been permanently closed or had leaks identified; and (3) some states are  reopening completed cleanups in locations where MTBE was subsequently  detected. In the  June 2002 Vermont survey of state funding programs, nine states said they  did not have adequate funding to cover their current program costs, let  alone unanticipated future costs. In addition, MTBE is  being detected nationwide and its cleanup is costly.
Why GAO Did This Study

Nationwide, underground storage tanks (UST) containing petroleum and other hazardous substances are leaking, thereby contaminating the soil and water, and posing health risks. The Environmental Protection Agency (EPA), which implements the UST program with the states, required tank owners to install leak detection and prevention equipment by the end of 1993 and 1998 respectively. The Congress asked GAO to determine to what extent (1) tanks comply with the requirements, (2) EPA and the states are inspecting tanks and enforcing requirements, (3) upgraded tanks still leak, and (4) EPA and states are cleaning up these leaks. In response, GAO conducted a survey of all states in 2000 and issued a report on its findings in May 2001. This testimony is based on that report, as well as updated information on program performance since that time.

What GAO Found

GAO estimated in its May 2001 report that 89 percent of the 693,107 tanks subject to UST rules had the leak prevention and detection equipment installed, but that more than 200,000 tanks were not being operated and maintained properly, increasing the chance of leaks. States responding to our survey also reported that because of such problems, even tanks with the new equipment continued to leak. EPA and the states attributed these problems primarily to poorly trained staff. While EPA is working with states to identify additional training options, in December 2002, EPA reported that at least 19 to 26 percent of tanks still have problems. EPA and states do not know how many upgraded tanks still leak because they do not physically inspect all tanks. EPA recommends that tanks be inspected once every 3 years, but more than half of the states do not do this. In addition, more than half of the states lack the authority to prohibit fuel deliveries to problem tanks--one of the most effective ways to enforce compliance. States said they did not have the funds, staff, or authority to inspect more tanks or more strongly enforce compliance. As of September 2002, EPA and states still had to ensure completion of cleanups for about 99,427 leaks, and initiation of cleanups at about another 43,278. States also face potentially large, but unknown, future workloads in addressing leaks from abandoned and unidentified tanks. Some states said that their current program costs exceed available funds, so states may seek additional federal support to help address this future workload.