(This story by Chris Mays was published in the Brattleboro Reformer on Nov. 4, 2017.)
[B]RATTLEBORO — Local companies are getting the word out about new rules on aboveground storage tanks, which they say will not really change how they conduct business.
“They basically formalized and codified what most oil companies were already doing,” said Rick Fleming, Dead River market manager for the Brattleboro office.
Act 76 mandates that the Vermont Agency of Natural Resource adopt rules for inspecting the tanks. It has been in place since July 1.
The biggest challenge will be in communicating the reasons behind the changes, according to Matt Cota, executive director of Vermont Fuel Dealers Association.
“I mean let’s face it,” he said, “when something changes, people are reluctant to change, especially when it costs money.”
Homeowners now must have tanks inspected between now and Aug. 15, 2020, then every three years. Inspections are often carried out by heating fuel companies, Cota said. He said heating fuel companies now must inspect tanks for new customers before filling them, though that was normal practice for businesses beforehand. While companies have always had the right to “red tag” or refuse to fill tanks deemed unsafe, the state now has five specific criteria involving evidence of leaking and the quality or size of tank parts. Also, tanks must be on a stable foundation.
“So four of these things can be done without replacing the tank,” Cota said. “They’re related to the tank’s system, rather than the tank itself.”
Most fuel companies are certified to inspect tanks, he said, but there are more than 1,300 certified tank inspectors in Vermont. His group has held training sessions, including one recently in Brattleboro. Two-hour courses are available.
For most Vermonters, Cota said, oil tanks are in places where people do not look very often — backyards or basements.
Cota said “very specific guidelines” were created for installing new above-ground storage tanks for heating oil and kerosene in Vermont after Tropical Storm Irene in 2011.
In 2016, the bill for Act 76 was created to expand those rules. The point was to replace “the worst of the worst” tanks, said Cota, whose group worked on developing criteria with ANR and the Vermont Department of Environmental Conservation, interested parties, homeowner associations, realtors, renters groups and home inspectors.
Vermont has more than 100 heating fuel companies that serve more than 100,000 customers, according to Cota. The new rules are just “affirming what is already a normal course of business” for many of the companies, Cota said.
“We are absolutely seeing its impact, most of it good,” he said. “But with any regulations, there will be hiccups along the way that are not at all unexpected.”
The state has the Petroleum Cleanup Fund for helping low-income residents with purchasing new tanks and for dealing with fuel spills.
“The idea behind the regulations was not only to get the worse tanks out, but to reduce the number of spills,” Cota said. “Generally speaking, the regulations — now that we have them — most fuel dealers recognize we need to protect the fund, reduce the incidents of spills and protect some of the older tanks out there.”
Occasions are very rare, he said, where people do not recognize something is wrong with a tank or do not want to have their tank inspected.
Besides help from the state, there are loan and grant programs available to residents struggling to pay for new tanks or repairs. Cota said he has been talking with Vermont Legal Aid and other groups about having emergency funds available.
Cota has heard concerns about whether the new rules could spark conflict-of-interest issues.
“It doesn’t make sense to me,” he said. “Fuel companies make money selling fuel. They don’t make money replacing a copper fitting.”
Cota said companies have to worry about being liable if their assessment is wrong and the threat of losing their insurance. He also pointed to the competitive nature of the business. If a customer feels they were cheated, they could choose another company to do business with.
Adapting to the changes
Dead River trained all its drivers and technicians in the summer and fall.
“I think it’s a learning curve primarily for the customers in that they are not aware of the new regulations and laws,” said Fleming. “But as with any piece of equipment over time, it will wear out. It will need to be replaced. There’s very few things that you can buy that will last forever. We work with our customers to identify problems.”
Fleming said most customers want to get their tanks upgraded or replaced out of fear of a spill due to tank failure. “Because it’s very costly if we need to go in and clean something up,” he added.
Dead River has been inspecting tanks belonging to new customers before the law, according to Fleming. That had been company policy.
“So that really wasn’t a big change for us,” Fleming said.
His company is also putting policies in place so tanks get checked every three years. The rules are meant to prevent spills inside basements or outdoors, Fleming said while noting, “It’s a lot of work in tracking on behalf of the oil companies to ensure that we’re in compliance.” Another part of the rules call for developing methods to keep track of tanks installed after July 1.
“Our position is that we’re working with our customers as we identify problems to get that corrected and fixed,” Fleming said.
“The state of Vermont through the Petroleum Cleanup Fund has a small amount of money available to help lower income Vermonters. And we will work with our customers in filing claims to access those dollars to help them defray the cost of those upgrades.”
If a tank is deemed unfit for a fill, it will be on a list that other companies can see.
Fleming believes Vermont is the only state in the country with this level of “vigorous” requirements for inspecting above-ground storage tanks.
“I do know that in New Hampshire, they have best practices that they’re asking oil companies and customers to follow,” he said. “However, that’s really up to the customer or the company that has policies in place in New Hampshire. It’s not handled at the state level.”
Cota & Cota has sent customers emails and letters about the new regulations.
“Obviously, any new rules are challenging,” said Cota’s cousin Casey Cota, president and owner of Cota & Cota, which has an office in Brattleboro.
Casey Cota said his company has been checking oil tanks for safety for the last 30 to 40 years.
“Just now, the new part is that there’s more concrete rules in place from the state for what they expect and how they want it to happen,” he said.
“I’m sure the consumers are frustrated as well as the fuel dealers with all the new rules. But hopefully we’ll take a good, common sense approach that will help solve the problem. The state doesn’t want to see any fuel releases.”
Casey Cota hopes to achieve the goal at the “most minimal impact to the customer.”
“Not everyone has to be upgraded,” he said, estimating that most of the tanks his group services or 90 percent are in decent shape and in compliance. “What we’re trying to do is a little bit at a time and try to give the consumer good advice on how we can do this in the least evasive way.”
The majority of Dead River’s customers will also be in compliance, according to Fleming.
Cota & Cota experienced a slight challenge in the process when it printed information about the new rules but then they were revised.
“So it’s a little frustrating,” Casey Cota said. “The key is communicating with the customer, giving them the heads up about what the rules are and helping them through the process.”
