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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.
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