Groundwater in the Great Lakes Basin

Estimation of Costs for Remediation of LUST Sites in US
$0-99,999
42%
≥ $1,000,000
2%
$500,000-999,999
3%
Unknown
13%
$100,000-499,999
40%
Alsip, 1993). The total cost for remediation of identified
LUST sites in the Great Lakes states and Ontario
is therefore over $4.5 billion (Table 3). Due to high
costs of remediation and a lack of adequate funding,
many states do not have sufficient human and financial
resources to adequately monitor all USTs in their jurisdiction,
to enforce regulations or to guarantee timely
LUST cleanups. In 2002 only 19 states reported to the
GAO that they were meeting conditions that the U.S.
EPA deems necessary and were physically inspecting all
USTs at least once every three years (Table 2) (GAO,
2002).
76
Figure 6.
Estimation of costs for remediation of
LUST sites in U.S. Source: GAO, 2007
cleanup since it only includes treatment of contaminated
soil and groundwater, site surveying costs and
feasibility studies, while ignoring the additional costs
resulting from excavation and disposal/repair of tanks
and pipes (U.S. EPA, 1986). For 2005 the GAO received
information from the states indicating that 54,000 of
the then remaining 117,000 federally regulated LUST
sites across the United States would require approximately
$12 billion in public funding. The other 63,000
LUST sites were to be cleaned up by funding supplied
by the tank owners (GAO, 2007). However, the
states also reported that over the next five years they
expect more than 16,700 new sites to be found, which
will require additional public funding (GAO, 2007).
Funding provided by the federal LUST fund is only
a minor contributor to the total that states spend on
LUST sites. In comparison, combined state LUST funds
raise around $1 billion per year (U.S. EPA, 2007a).
In Canada, the average clean-up costs for LUST sites
on federal lands in 1994 was estimated to be $147,000
per site, giving a national estimate for the total 40,000
LUST sites across Canada to be upward of $5.9
billion (Lalonde, 1995). However, this figure may be
misleading since an accurate number of LUST sites
is unknown and there is a lack of assessments of the
contaminated sites (Lalonde, 1995).
In the Great Lake states, estimates of necessary funding
for backlogged LUST sites is more than $3.3 billion;
and four of the eight states have funding deficits (Sierra
Club, 2005; U.S. EPA, 2006). For example, Michigan
had a reported deficit of over $1.7 billion (Sierra Club,
2005).
Estimates of clean-up costs of LUST sites in Ontario are
between $882 million and $1.7 billion (Lalonde, 1995;
REGULATIONS
Before 1980, most tanks were constructed from
steel and are highly susceptible to corrosion. Unless
properly maintained, 50% of these steel tanks may
have been leaking by the time they were 15 years
old (Environment Canada, 1999). Due to high leak
potential, USTs in Ontario older than 20 years must
be removed and owners do not have the option of
upgrading (Braves, 2003). The owner is responsible
for removal costs. USTs with a capacity of 5,000 litres
or more must be tested annually for leaks (Carter,
2006). Tanks that do not pass inspection are given a
time frame for repair after which fuel will no longer be
supplied to that tank (Braves, 2003). If there has been
a leak, the Spills Action Centre of the Ontario Ministry
of Environment and Energy must be informed (Carter,
2006). USTs no longer in use must be removed within
two years of decommissioning, and an assessment of
the area is required. If contamination is found, it must
be cleaned up immediately; costs are the responsibility
of the owner (Braves, 2003; Carter, 2006).
Both Canada and the U.S. have established new
standards for USTs. In Ontario, regulations have
been implemented by the Technical Standards and
Safety Authority (TSSA) requiring all USTs to be
registered and either removed or upgraded to meet
new leak and spill protection equipment regulations
within a given time, dependent upon the age of the
UST (Table 4) (Carter, 2006). Canada has also taken
steps by implementing the Storage Tank Systems for
Petroleum Products and Allied Petroleum Products
Regulations, under the Canadian Environmental
Protection Act 1999, to protect soil and groundwater
from contamination by USTs on federal and aboriginal
lands (Environment Canada, 2008).
U.S. regulations regarding USTs were issued by the
U.S. EPA in 1988. These generally require tanks to be
inspected by owners/operators every 30 days and any
leaks found to be reported within 24 hours (GAO,
2005). However, all too frequently owners/operators do