Underground Storage Tank (UST) Program

Underground storage tank system illustration

Tips for Combining UST Programs for Tank Removal and Upgrading Your System

NOTICE: At this time, the Department is no longer accepting applications because all monies have been awarded for fiscal year 2021. The State Lead Noncorrective Action Program (NCA) and Tank Site Improvement Program (TSIP) programs are available to the extent monies are allocated from the UST revolving fund on an annual basis.

Customers interested in coordinating efforts through the Tank Site Improvement Program (TSIP) to upgrade their UST system and the Noncorrective Action (NCA) UST Permanent Closure Program to remove tanks can apply for both programs together. The information below was prepared to share some general information about the programs and to offer tips for using the programs together at your site.

General Information

We are here to help. Contact ADEQ to discuss coordination options as soon as possible. Identify what you believe are the most critical parts of the process and discuss them with us. This will help to ensure that we are working together towards a common goal.

TSIP Upgrades

  • The program requires submittal of the proposed work, budget, and at least one vendor bid. ADEQ recommends that you solicit at least three bids to ensure cost effectiveness of the proposed actions.
  • After receiving ADEQ approval, you will be responsible for managing the project and paying the costs.
  • You must ensure that work is done within one year – or, your approved funding may not be available.
  • ADEQ will not reimburse costs that are not supported by invoices and proof of payment documentation.
  • Note that $200,000 is the maximum amount of costs available per facility.1

NCA Permanent Closure

  • ADEQ will be soliciting a bid for the work, managing the contractor and paying costs directly.
  • The vendor used by ADEQ’s consultant for the UST removal may differ from the installer you hire.
  • If you are in compliance with financial responsibility using UST insurance, ensure that you understand your policy requirements for notification of tank closure and release reporting.
  • If contamination from a release is discovered during the tank closure, clean up actions may be required. If you are unable to conduct those actions, ADEQ has financial assistance programs that may be available to you.

Other Tips

  • Insurance premiums and deductibles are likely to increase as USTs increase in age. Providers may opt not to renew policies once tanks reach a certain age.
  • There will be reduced revenue as a result of being unable to sell fuel for an extended period of time (fuel may not be sold for 3 months or more).
  • Commit to developing a project team that allows for direct timely communication between parties for scheduling, permitting and field work.
  • Maintain financial assurance! If a release is discovered, cleanup actions may be costly.
  • Have realistic expectations for the financial impact that installing an upgraded system will have on your business model.

NOTE: Based on recent TSIP applications submitted to ADEQ, costs for installing a new two-tank system can range from $100,000 to $400,000.

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