Commerce to Fund Underground Petroleum Storage Tank Removal

The 2009-11 state budget authorizes Commerce to use $100,000 per fiscal year from the Petroleum Inspection Fund (PIF) to contract to empty, clean, remove and dispose of abandoned underground petroleum storage tanks. Commercial, farm and residential tanks are eligible. Funds can also be used to environmentally assess and backfill sites.

The primary purpose of this project is to protect the environment by removing these tanks. Additional benefits include improved marketability and enhanced value of sites that could present opportunities for redevelopment, thereby increasing the property tax base in a municipality.

Commerce has located sites containing abandoned tanks. For these sites, Commerce will contact owners, establish eligibility, and obtain permission and waivers to enter property. Agency staff will investigate sites, bid projects to certified contractors, audit each project for completion, pay contractors, and place a lien on property if PIF funds are used for the tank system closure. The department will work with owners to determine eligibility for Petroleum Environmental Cleanup Fund Award (PECFA) or other funding sources for clean up if site is contaminated

The agency will also determine if the owner has the ability to pay for tank removals using the same standard for determining ability to pay a PECFA deductible. Section 101.143(4)(ee), Wis. Stats., describes this process:

Waiver of deductible. The department may waive the requirement that an owner or operator pay the deductible amount if the department determines that the owner or operator is unable to pay. If the department waives the requirement that an owner or operator pay the deductible, the department shall record a statement of lien with the register of deeds of the county in which the petroleum product storage system is located. If the department records the statement of lien, the department has a lien on the property on which the petroleum product storage system is located in the amount of the deductible that was waived. The property remains subject to the lien until that amount is paid in full to the department.

The department deposits payments received into the petroleum inspection fund.

Commerce has had difficulty contacting owners in some cases and may need the assistance of municipalities for help locating owners. Municipalities and other entities aware of abandoned underground tanks can contact Michael Fehrenbach at 266-8076 or mike.fehrenbach@wisconsin.gov. We appreciate the assistance.

-- Mike Fehrenbach, director, Bureau of Petroleum Products and Tanks