ABOVEGROUND STORAGE TANKS - STATE REGULATIONS AND RECENT ENFORCEMENT

Annual Compliance Package

To ensure broader compliance, last year OPS began requiring submittal of all Ullage and Inspection logs/records in an “Annual Compliance Package” (ACP). The state now sends out a request for the ACP to all registered tanks each year. [NOTE:  Any tank that is not registered will not receive the ACP, even though it is still required if the tank is within the size limits].  Tank installers are not always active in ensuring proper registration with the state.  These ACP’s are sent on a rolling schedule to balance workload, so the month in which a dealer receives the initial ACP is the permanent document submittal schedule for future years. Typically, once a tank that was not registered when it initially should have been, is registered, the owner will be back-charged all annual registration fees, at a minimum, even if no other fines are assessed. 

The initial notice provides sixty days to respond; it is critical that dealerships, even if all log and inspection requirements have not been followed, provide a timely response to OPS. Their primary goal is to ensure compliance.  While there are potentially massive, maximum fines allowed under the law, those maximum fines are typically levied only in more egregious situations or blatant disregard of requirements once a dealership is made aware.  OPS will typically work with a dealership initially, and while there may be some fines for being out of compliance, it is not likely to be anywhere near the maximums allowed (thousands of dollars per day). 

CLICK HERE for a sample notice from OPS. 

New Regulation Changes – Proposed Effective Date is April 14th
In addition, there are pending changes to the existing rules that are expected to take effect April 14th, 2011 (some final approvals in the regulatory process could delay)

CLICK HERE for a summary of those changes.

Perhaps the most notable change is that the state will waive the Ullage log requirement for any tank equipped with either an audible alarm or automatic shut-off device.  This does not alleviate the log and inspection requirements that existed in past years, should a dealership receive any enforcement requests to document prior compliance.  However, given OSP has added this going forward, it may help a dealership in lessening any potential fines for prior non-compliance if these devices had been previously installed. 

Further Information / Assistance
CADA’s Endorsed provider, KPA can assist dealerships with these and other EH&S compliance needs.  Visit http://www.kpaonline.com/ehs/products-and-services.html for an overview of KPA services options, or contact Cameron Curtis at (303) 228-2389 or ccurtis@kpaonline.com.  KPA is available to assist with any specific regulatory issues you may encounter.

About KPA EH&S:  With seven unique service offerings, KPA has the solution to your EHS needs. Improve your bottom line with effective risk mitigation strategies, keep on top of ever-changing regulatory demands with EHS services designed to ensure compliance, and distribute best safety practices and procedures across your organization - each KPA service consists of a combination of online software, on-site services, function-specific training, and expert consulting necessary for a complete compliance program.

 

 

Colorado Automobile Dealers Association
 290 East Speer Boulevard Denver, CO  80203
 Telephone:  303.831.1722  |  Facsimile: 303.831.4205
 www.coloradodealers.org