If your outage prevention measures include a backup generator, if you operate a retail or industrial fuel center, or if you have any other need to store large quantities of fuel, you probably have an industrial fuel storage tank.
Fuel storage tanks, both underground and above ground, have changed a lot over the past several decades. Until the late 1980s, most storage tanks were largely unregulated, and many were made of untreated steel. These early tanks tended to corrode, rust, and eventually leak, causing fuel spills that had significant negative impacts on the environment and the owners’ bottom lines.
Today, fuel storage tanks are stronger and safer than ever before. But like anything else, even the highest-quality tank can eventually require replacement. This month, we’ll look at a few reasons why your facility might need a fuel tank replacement.
Fuel Tank Replacement Reason #1: Tank Failure
This reason is the most obvious one requiring a fuel tank replacement, particularly if your facility uses underground storage tanks (USTs). When a tank rusts through, seams fail, plumbing begins to leak, or the storage system is otherwise no longer capable of safely containing your facility’s fuel, it’s time for a replacement.
Again, this is particularly important for facilities that utilize USTs. A leaking UST can expose a company to regulatory interventions, including notices of violation, fines, and more. In addition to regulatory concerns, fuel spills can become a public relations nightmare, requiring companies to spend significant amounts on reputation repair if a spill leads to adverse environmental impacts.
If a regular inspection uncovers a problem or if you suddenly notice fuel “vanishing” from your tanks, a fuel tank replacement may be necessary sooner rather than later.
Fuel Tank Replacement Reason #2: Changing Regulations
Environmental, safety, and other applicable regulations change constantly. Since 1988 alone, there have been two massive changes in the federal rules surrounding underground storage tanks and countless more minor federal and state-level changes. Some municipalities even have ordinances and regulations that can affect your fuel tank situation.
Not all of these regulations are environment- or safety-related. Localities frequently ban the use of above-ground tanks, mainly for aesthetic reasons.
While most regulatory changes have some grandfathering baked in, others may not. Many state-level regulations have been passed requiring all operators to remove single-walled USTs by a specific date or at a certain tank age.
In short, the regulatory landscape for fuel storage is dynamic, and you may find that your existing tank no longer meets the requirements of your jurisdiction. If that’s the case, a fuel tank replacement may be your only option.
Fuel Tank Replacement Reason #3: Cost-Effectiveness and Utility Concerns
Your existing tank may be fine except for one thing: it’s too small. As your business grows and expands, you may find that you’re ordering fuel far more often than you once did. As fuel prices continue to climb, you may even be paying more per gallon for fuel because your tank isn’t large enough to allow you to buy in enough quantity to get the best price available.
Or, your fuel needs may have changed. Consolidation of equipment may mean that your several small fuel tanks containing different fuels can be replaced with a single, larger tank. Conversely, your needs may have changed such that you need more tanks for multiple products – for instance, if your tanks are fueling diesel vehicles or equipment, you may want to install an additional tank for diesel exhaust fluid (DEF).
When business demands changes to your fuel storage needs, fuel tank replacement now can save you considerable hassle later.
Fuel Tank Replacement Reason #4: Compatibility Issues
Fuel tanks aren’t the only thing that has changed considerably over the past several decades. The fuel that those tanks contain has changed, as well. Most gasoline on the market in the US today contains between five and fifteen percent ethanol. Increasing amounts of diesel fuel available are blended with biodiesel.
Both ethanol and biodiesel have different chemical properties than pure gasoline and traditional petroleum-derived diesel, and they can wreak havoc on legacy tanks and fuel systems.
Fiberglass tanks, for instance, will degrade rapidly in the presence of fuels with high (15% or greater) ethanol content. Biodiesel can cause incompatible seals in fuel plumbing to break down.
If your tanks are no longer compatible with the fuel products they contain, then fuel tank replacement may be your only option.
Fuel Tank Replacement Reason #5: Insurance Questions
This issue primarily concerns underground storage tanks but might also impact above-ground storage tanks, depending on your insurance carrier. A number of insurance companies will no longer write new policies covering tanks older than 20 years, and many will not renew a policy covering tanks older than 26 years.
Some other insurers don’t explicitly refuse coverage for older fuel tanks; instead, they inflate the premiums for policies covering these tanks to make continued coverage cost-prohibitive.
For an underground storage tank, insurance is a federal requirement. If your carrier will no longer cover your existing tank, you may have no choice but to opt for a fuel tank replacement.
Fuel Tank Replacement Reason #6: Outdated Tank
Even if your existing tank is working perfectly now, if it’s outdated, consider a replacement. Untreated steel tanks, single-wall tanks, and tanks that aren’t compatible with the current fuels and additives your company uses can all be mishaps waiting to happen. Even if your current fuel tanks are double-walled, they may not have up-to-date release detection systems.
Fuel tank replacement for a tank that needs to be updated but is otherwise functional is never as hard-and-fast of a decision as replacing one that is leaking, inadequate, uninsurable, or incompatible with your fuel needs. Making the decision requires you to consider the consequences of a potential failure of your existing tank:
- Is your company adequately insured to cover the fines and penalties that environmental regulators will impose?
- Do you have an adequate contingency budget to cover an emergency replacement, which is typically considerably more expensive than a scheduled replacement?
- Are you prepared to handle any negative press and public backlash associated with being responsible for a fuel spill?
If the answer to any of those questions is “no,” then taking preventive steps now by choosing a fuel tank replacement may be the best bet.
Give JLJ and Associates a Call For Your Fuel Tank Replacement Project.
Fuel stations, outage prevention, and hundreds of other businesses require fuel storage. When it’s time to upgrade or replace your existing tanks, the experts at JLJ and Associates have the experience needed to safely and efficiently provide you with the fuel tank replacement you need. Call us today to find out how we can work for you! 770-961-7600
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