Water & Waste Funding

Compliance Incentive Program - Petroleum Underground Tank Systems

The South Dakota Department of Environment and Natural Resources (DENR) has established a program to encourage early compliance with the new federal petroleum underground storage tank (UST) regulations that were adopted by the State in 2018 with a compliance deadline of October 13, 2021 (2018 Rule Changes). As funding allows, up to the first 200 regulated petroleum UST systems that meet the eligibility requirements will qualify for a FREE initial site-specific investigation performed by the State. The site-specific investigation will determine whether a petroleum release has occurred from the tank system and whether additional risk assessment will be necessary by the tank owner. The information collected from the site-specific investigations will be used as part of a study by DENR to develop further guidelines for the need to perform environmental testing of suspected releases related to tank system upgrades and repairs.

Eligibility for the Incentive Program:

  • Before July 1, 2021, the tank system must be in full compliance with all UST regulations;
  • In the process of meeting the UST regulations a suspected release must be reported;
  • The owner/operator must document what parts of the tank system may have resulted in a suspected release or did not pass tightness or leak tests while coming into compliance;
  • The owner/operator must document what parts of the system were repaired or replaced; and
  • An application provided by DENR must be submitted between June 1, 2020 and June 30, 2021.

This incentive program does not pay for any testing, repair or replacement of tank system components. Any risk assessment or corrective action beyond the initial site-specific investigation performed by the DENR will be the responsibility of the tank owner, and subject to the current DENR Groundwater Quality and Petroleum Release Compensation Fund requirements. Any repair or replacement of tank system components must have prior approval by DENR.

Compliance Incentive Program Application

Compliance Incentive Program Flyer