South Carolina sets fuel-leak coverage and future underground tank fees

South Carolina’s underground fuel tank program pays eligible cleanup costs and claims for injuries or property damage. Petroleum leaks from covered underground tanks qualify. Cleanup and injury or property damage claims share a $2 million limit per accident, with estimated cleanup costs reserved first. Cleanup payments cover costs above $25,000 for releases reported on or after July 1, 1993. Except for releases reported before July 1, 1994, tank owners or operators must show a good-faith effort to follow tank safety rules when the leak is discovered and reported. Payments depend on available fund money. Unpaid claims wait for money and are paid in filing order. Injury and property damage claims need court approval. Coverage excludes legal costs and damages awarded to punish the tank owner or operator. The law took effect May 18, 2026.

Owners or operators must pay an annual renewal fee for each covered underground tank. The fees apply to covered underground tanks that store or are intended to store fuel or other substances covered by the registration rules. Unpaid tank fees and penalties prevent registration and payment of cleanup funds for the affected tank. The future annual fee schedule begins July 1, 2029, with later amounts listed for 2034 and 2039.

The Department of Environmental Services commissioner appoints a 15-member committee to advise on the underground fuel tank program. The committee advises the department and lawmakers about cleanup funding and rules for underground tanks. Membership includes representatives of the public, environmental groups, fuel-related businesses, other business groups, state agencies, and local governments. Following its initial report, the committee must submit an annual report by the end of each calendar year.