MARTINSVILLE, Ind. — The Hoosier State has spent $21 million so far to help remove or plug up more than 500 outdated or failing underground tanks storing gas, diesel and other hazardous materials through the nation’s first proactive reimbursement program for tank closures.
That’s according to the Indiana Department of Environmental Management, which in 2023 was authorized to reimburse tank owners for half of decommissioning and replacement costs.
But there are hundreds of old, potentially leaking tanks left statewide.
They’re often owned by private companies, like gas stations and trucking fleets, as well as by the state and units of local government like schools, cities and counties.
Tanks are typically designed to last for about three decades, according to Tim Veatch, the petroleum branch chief for IDEM’s Office of Land Quality. The potential for contamination — including to soil, indoor air and drinking water — increases every year after.
“We all go to the gas station every day, but we don’t necessarily think, you know, where that gas is coming from and the potential harm to the environment,” he told reporters Wednesday.
But tank removals are expensive, especially for cash-strapped small business owners and local governments.
Law enforcement officers, emergency responders and other county vehicle drivers fill up at the station next to the Morgan County Highway Department’s office in Martinsville.
Department Superintendent Eddie Fisher predicts a price tag of $400,000 to $500,000 to remove a trio of 30-year-old tanks, replace them and more — which would eat up between 5% and 6% of the $8.4 million county’s highway budget in one go.
He’s expecting to save big once the project is completed and the state’s reimbursement comes through.
The old station was dismantled and the ground largely cleared Wednesday morning, when workers carefully pried one 4,000-gallon tank lose from the earth. Fisher and other officials circled the metallic cylinder, pointing to intact stickers from the ’90s.
They won’t know if the old tanks leaked or not until the soil and groundwater samples are analyzed.
But: “Looks good, people. It’s like the day it went in,” said Carla Gill, the director of remediation services at consultant SESCO Group.
The new tanks are already in, secure under a recently poured concrete slab that now hosts the new fueling station. The spot, which was previously a parking lot, will trade uses with the old station.
“It’s a big deal,” Fisher said. “Quite an upgrade from what we had. Double-lined tanks is the new standard, and ours were single-walled tanks before. It’s better for the environment and … the people.”
The reimbursement program is in its fourth year and has never exhausted its annual $20 million allotment, disbursing $21 million of the $80 million up for grabs since its creation.
“We would like to see more applications, more projects come in, because the money is available,” IDEM spokesman Allen Carter told reporters.
The dollars are set aside in the $265 million Excess Liability Trust Fund, which exists as an approved financial responsibility mechanism for tank owners and operators. It’s funded by an inspection fee of one penny per gallon for fuels sold or used for motor vehicles in Indiana.
Petroleum Branch Chief Veatch said the program is advertised through petroleum marketers, contracts, consultants, an inspection program, mailers and more — but it’s still news to some.
“When I reached out to the contractor and they found out about the … 50% savings, they came in and we talked about it, and felt that this is the best time to do it,” Fisher said. The county decided to “save taxpayers the dollars and go ahead and take advantage of it now while we had the chance.”
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