ILLINOIS POLLUTION CONTROL BOARD
October 29,
1992
RAMADA HOTEL,
O’HARE,
)
)
Petitioner,
v.
)
PCB 92—87
)
(Underground Storage Tank
Fund
ILLINOIS ENVIRONMENTAL
)
Reimbursement Determination)
PROTECTION AGENCY,
)
Respondent.
ORDER OF THE BOARD
(by J.C. Marlin):
This matter is before the Board on a September 11, 1992
motion for summary judgment filed by Ramada Hotel O’Hare
(Ramada)
and a cross-motion for summary judgment filed by the Illinois
Environmental Protection Agency
(Agency) on October 7,
1992.
Both motions for summary judgment were filed pursuant to 35 Ill.
Adm. Code 101.244.
The Agency filed a response to Ramada’s
motion for summary judgment on October
7,
1992 and Ramada filed a
response to the Agency’s motion on October
9,
1992.
This case
involves a petition for review of the Agency’s denial of
eligibility for reimbursement from the Underground Storage Tank
Fund
(UST Fund)
filed by Ramada on June 4,
1992 pursuant to
Sections 22.18b(g)
and 40 of the Illinois Environmental
Protection Act
(Act).
Ill. Rev.
Stat.
1991,
ch.
111 1/2,
par.
1022.18b(g)
and 1040.
A release of petroleum occurred at a
garage facility operated by Ramada in the city of Rosemont, Cook
County,
Illinois on June 20,
1990.
The petition seeks review of
the Agency’s determination that the release is ineligible for
reimbursement because it is not associated with an underground
storage tank (UST)
system.
BACKGROUND
On June 20,
1990 a release of diesel fuel occurred as a
result of overfilling of Ramada’s buses.
(Pet.
at 1.)
Neither
the petitioner nor the Agency are completely sure of what caused
the release.
Robert
A.
Patrick, Ramada’s Vice President of
Technical Services, North kmerican\Caribbean Division, stated in
a letter to the Agency, that he did not know exactly what had
caused the release.
Patrick went on to write that, to the best
of his knowledge, the release was caused by an overflow release
mechanism which malfunctioned when an employee was filling a
vehicle.
(Agency Rec. at 29.)
A passerby smelled the fuel and
reported it to the police who then found a release at the Ramada
property.
(Agency Rec. at 29.)
On January 27,
1992 Ramada submitted its application for
0
37-OC
2
reimbursement of corrective action costs.
(Pet. at 2.)
On May
4,
1992 the Agency denied the application, stating the release
was not eligible for reimbursement under the
TJST Fund.
(Agency
Rec.
at 30.)
The Agency’s letter explained reimbursement was
denied because above ground pumps are not included in the
definition of underground storage tanks.
(Agency Rec. at 30.)
Thus,
the Agency reasoned releases from nozzles are not
reimbursable under the act.
(Agency Rec.
at 30.)
Ramada filed a
petition for review with the Board on June 4,
1992.
ISSUE
Summary judgment will be granted where there is no genuine
issue of material fact and the moving party is entitled to
judgment as a matter of law.
(ESG Watts.
Inc.
v. IEPA (August
13,
1992), PCB 92—54;
Sherex Chemical v.
IEPA (July 30,
1992),
PCB 91—202;
Williams Adhesives.
Inc.
v.
IEPA (August 22,
1991),
PCB 91-202.)
The facts are not disputed in this matter.
Thus,
the sole issue of law before the Board is whether corrective
action taken in response to a nozzle related release of petroleum
is eligible for reimbursement from the UST Fund.
Ramada,
in its memorandum in support of its motion for
summary judgment
(Memo),
argues that,
“the Act does not
artificially distinguish between nozzle-related releases and
other releases from an UST.”
(Memo at 5.)
In addition, Ramada
argues that there is nothing in the act which specifically
excludes spills or overflows from pumps or nozzles.
(Motion at
5)
In its memorandum,
Ramada contends that the Agency has
changed its position in that the Agency previously maintained
that spillage during vehicle filing was a release from an UST in
Sparkling Springs Mineral Water Co.
v.
IEPA (May 9,
1991), PCB
91-9.
(Memo at 5.)
Ramada further argues that the danger to
human health and the threat to the environment are the same
irrespective of whether the petroleum is released from the nozzle
or leaks from the underground tank.
(Memo at
4.)
Ramada argues
that the Act is to be liberally construed and that interpretation
of the statute to include releases from the pump nozzle is
consistent with the express purpose of the Act.
(Memo at 12-13.)
Ramada’s memorandum also argues that the Agency’s interpretation
of the statute would remove contamination from spills through the
nozzle from the corrective action requirements and various
regulations
in the UST statutes.
(Memo at 9.)
Ramada further
argues that the Agency’s interpretation of what constitutes a
release from an UST is contrary to USEPA’s interpretation of the
federal UST regulations.
(Memo at 9.)
In its cross-motion for summary judgment and response to
Ramada’s motion for summary judgment
(Resp.), the Agency notes
that the issue in Sparkling Springs was the application of the
deductible and that Ramada’s reliance on the case is misplaced.
0! 37-0060
3
(Resp.
at
15.)
The Agency also argues that it may not reimburse
an owner or operator for corrective action costs unless the
release of petroleum is from an underground storage tank.
(Resp.
at 9.)
In its response, the Agency contends that a plain
reading of the UST regulations set out at 35 Iii.
Adm. Code
731.112 leads to the conclusion that a nozzle is not in fact an
UST or an underground pipe.
(Resp.
at 12.)
The Agency asserts
that references to the associated piping and ancillary equipment
in the definition of the underground storage tank include the
term “underground”.
Thus,
the Agency argues,
a release from a
nozzle does not qualify for reimbursement because it is not a
release from an UST.
(Resp. at 12-13.)
The Agency also argues
that there
is no lack of authority to clean-up spills based on
its interpretation of what releases are eligible for
reimbursement costs for corrective action.
(Resp.
at 19.)
Finally, the Agency points out that there is no federal
equivalent to the Illinois UST Fund.
(Resp. at 20.)
Therefore,
the Agency argues, Ramada’s concern about how the definition of a
release and liST will affect other liST regulations are unfounded.
(Resp.
20.)
The Agency explains, the present issue centers on
eligibility for reimbursement from the Illinois UST Fund.
(Resp.
20.)
DISCUSSION
Reimbursement from the liST Fund is allowed for corrective
action resulting from a release of petroleum from an underground
storage tank.
(Section 22.18b(a)(3)
of the Act.)
It is
undisputed that there was a release of petroleum; however, the
question remains whether Ramada is entitled to relief as a matter
of law.
The Board does not find Sparkling Spring to be controlling
on determining the eligibility of a release of petroleum from a
pump nozzle.
The issue before the Board
in Spark1in~SprincT was
the amount of the deductible.
The source of contamination was
not at issue.
The Board does find Harlem Township v.
IEPA,
a case with a
similar fact pattern to the instant case, to be controlling.
(Harlem Township v.
IEPA (October 16,
1992), PCB 92—83.)
The
Board in Harlem held that a release from an aboveground pump
nozzle was not eligible for reimbursement from the UST Fund.
The reason for the nozzle release in Harlem was unknown, but
was most likely a result of vandalism.
(u.,
at 1-2.)
In
Harlem, an employee of Harlem Township arrived at work to find
the gate open and the shop door unlocked.
The employee also
found a puddle of fuel near the pumps.
In addition, the employee
noticed a nozzle from the fuel pump laying on the ground in an
unlocked position on the ground.
The pump motor was burned out
and fuel was no longer discharging from the nozzle.
(j~.)
U ~37-UQ6
I
4
The Board in Harlem determined that the pump and the pump
nozzle are not part of an underground storage tank as it is
defined by the Act.
(a.,
at 4.)
Additionally, the Board
explained that a pump system is not a tank or part of the
underground pipes connecting the tank.
(u.)
The Board went on
to state:
if the statute is read as limiting reimbursement to
leaks from underground tanks and underground
interconnecting piping only,
the release from the pump
nozzle would not be eligible for reimbursement from the
fund because the pump is not part of the underground
storage tank or underground piping.
(~j~.)
The release at issue in the instant case and in Harlem was from
the nozzle of a fuel pump located above ground level.
The Board does not find
in this case, nor did it find in
Harlem, any authority to suggest that the Board’s interpretation
is contrary to the federal interpretation of the UST regulations.
(j~.,
at
6.)
Nor does the Board believe that it is contrary to
the intent of the statute or the intent of the UST Fund to hold
that corrective action in response to a release from an above
ground nozzle is not reimbursable from the
liST Fund.
To be eligible to access funds from the underground storage
tank fund the release must be from an underground storage tank.
The above ground dispensing pump and pump nozzle are not part of
the underground storage tank.
Therefore,
a release of petroleum
from the pump or the pump nozzle are not eligible for
reimbursement.
The Board affirms the Agency’s May 4,
1992,
determination that a release of petroleum from the pump nozzle is
ineligible for reimbursement from the underground storage tank
fund.
Ramada’s motion for summary judgment is denied.
The
Agency’s cross—motion for summary judgeinent is hereby granted.
The result of this ruling is that this docket is closed.
IT IS SO ORDERED.
Board Members J. Theodore Meyer and Michael Nardulli
dissented.
Section 41 of the Environmental Protection Act
(Ill.Rev.Stat.
1991,
Ch Ill 1/2,
par.
1041) provides for appeal
of final orders of the Board within
35 days.
The rules
of the
Supreme Court of Illinois establish filing requirements.
(But
see also 35 111.
Adm. Code 101.246, Motions for Reconsideration,
and Castenada
V.
Illinois Human Rights Commission
(1989),
132
Ill.
2d
304,
547 N.E.2d
437.)
UI
3;~-UO62
5
I, Dorothy M. Gunn, Clerk of the Il~inoisPollution
Control Board, hereby c~rtifythat the abov,e ~~n~ion and order
was adopted on the
~T~T~-
day of ______________________
1992, by a vote of
__________________
Dorothy H. ~nn,
Clerk
Illinois Po~utionControl Board
01 ~7-O063