Attention all underground storage tank (UST) owners and operators in California! The State of California Senate Bill #445 requires owners and operators to permanently close or replace your underground tank containing hazardous substances not in compliance with new requirements by December 31, 2025. 

This mandate, outlined in the California Health and Safety Code, chapter 6.7, section 25292.05, applies to all single-walled tanks and non-exempt single-walled piping.

Xerxes tank installation

This new law affects all single-walled tanks as well as those not designed and constructed by alternative fuels:

  1. Close the tank in place after being authorized by the board.
  2. Remove the tank from its site completely.
  3. Remove and replace the tank.

Underground storage tanks

Loans and grants are available through the RUST program. RUST stands for Replacing, Removing, or Upgrading Underground Storage Tanks. This program is a system of grants and loans to help small business owners and operators come into compliance with regulatory requirements for underground storage tanks (USTs). Compliance is achieved through removing, replacing, or upgrading USTs.

The RUST program is a great way for small businesses to protect their business and improve their bottom line. By removing or upgrading their USTs, businesses can reduce the risk of environmental liability and save money on maintenance and repairs. 

What Costs are Eligible for a RUST Grant or Loan?

Eligible costs for grants include:

  • Costs for removing and replacing single-walled USTs and/or piping with doubled-walled USTs and/or piping.
  • Costs for upgrades to USTs including installation of containment sumps, under-dispenser containment boxes/pans, and electronic monitoring systems.
  • Costs for conducting enhanced leak detection tests.

Xerxes tank install    Xerxes tank install

In addition to what the grants cover, eligible costs for loans cover:

  • Costs for corrective actions necessary to meet applicable local, state, or federal standards include, but are not limited to, any design, construction, monitoring, operation, or maintenance requirements adopted under the California Health and Safety Code.

Single-walled USTs have one wall between the petroleum fuel and the underground soil.

Double-walled USTs have two walls between the fuel and the underground soil. The second wall provides extra containment that helps to prevent leaks from reaching the soil. It is a tank in a tank (piping in piping) system.

Who is Eligible for a RUST Grant and Loan?

RUST Grant: Independently owned and operated small businesses with petroleum USTs and fewer than 20 full-time and part-time employees are eligible for a RUST grant. 

RUST Loan: Independently owned and operated small businesses with petroleum USTs and fewer than 500 employees are eligible for a RUST loan. As with a grant, the principal office and business officers must be domiciled in California, and businesses dominant in their field of operation are excluded. All USTs owned and operated by the applicant comply with State UST regulations.


What Are The RUST Funding Amounts? 

If you are eligible for RUST funding, you cannot begin work until you have a grant or loan executed by the State Water Board. The RUST program grants are available for between $3,000 and $70,000 per grant. A small business may receive multiple RUST grants, but the maximum lifetime limit in grant money for each small business is $70,000.

Next Steps:

Are you considering replacing, removing, or upgrading your underground tank? Please reach out to our tank experts today by emailing sales@nwpump.com, calling 1-800-542-PUMP, or finding the nearest location to you here.