A Supplier’s Guide to Fuel Storage for Safety and Efficiency

Fuel storage is a critical aspect of any operation that relies on a steady fuel supply, but if mishandled, it can lead to costly mistakes, regulatory fines, and significant safety hazards. 

Take, for example, a January 2024 incident at a Circle K station in Avon, Ohio, where diesel was mistakenly pumped into unleaded fuel storage tanks. The mix-up caused engine damage to at least 14 vehicles, leading to expensive repairs and frustrated customers.

Jeff Hansen, Regional Branch Manager at Conrad & Bischoff, spoke to us about safety: 

“Safety is paramount when it comes to fuel storage. We’re dealing with hazardous materials, so ensuring safe handling and storage is critical—not just for human safety but also for environmental protection and regulatory compliance.”

If your business operates in Idaho, Montana, or Wyoming, fuel storage comes with extra challenges—harsh winters, extreme weather swings, and the risk of contamination. Following best practices isn’t just about ticking regulatory boxes; it’s about protecting your fuel, your equipment, and your bottom line.

In this guide, with the help of Jeff Hansen, we break down key strategies for proper fuel storage so you can avoid costly mistakes. 

Understanding Fuel Types & Their Storage Regulations and Compliance

Not all fuels are the same and, therefore, require different conditions for proper storage. 

Diesel: Lower Flammability, High Environmental Risk

Diesel is less flammable than gasoline, requiring higher temperatures to ignite, making it safer for handling and storage. However, diesel spills pose serious environmental and workplace hazards. 

Leaks can contaminate soil and groundwater, while fuel on hard surfaces creates slip hazards, increasing the risk of workplace injuries.

Storage & Compliance Considerations

• Use corrosion-resistant tanks: Diesel must be stored in approved tanks made of stainless steel or double-walled, UL-rated materials to prevent leaks and structural deterioration.
• Implement secondary containment systems: Spill containment berms and double-walled tanks help minimize environmental damage if leaks occur.
• Follow EPA & OSHA regulations: Best practice is to conduct regular tank inspections, ensure leak detection systems are in place, and comply with fire safety measures to prevent spills and fire risks.
• Monitor fuel quality: Water buildup in diesel tanks can lead to microbial growth and clogged filters, requiring filtration systems and biocide treatments to maintain fuel integrity.

Gasoline: Highly Flammable & Volatile

Gasoline is one of the most volatile and flammable fuels, with vapors that can ignite from even a small spark or static discharge. Its low flashpoint (-45°F) makes it far more dangerous to store than diesel, requiring strict safety measures to prevent fires, explosions, and vapor buildup.

Storage & Compliance Considerations

• Use airtight, approved storage containers: Store gasoline in OSHA- and NFPA-approved tanks designed to prevent leaks and minimize vapor escape.
• Keep it away from ignition sources: Storage areas must be at least 50 feet away from heat sources, electrical equipment, and direct sunlight.
• Ensure proper ventilation: Gasoline vapors are heavier than air and can accumulate in low-lying areas. Ventilation systems are required to disperse dangerous vapors and prevent ignition.
• Implement fire suppression systems: Equip storage sites with automatic fire suppression systems, including foam-based fire extinguishers, to combat gasoline fires.
• Comply with OSHA, NFPA & local fire codes: Regulations mandate strict guidelines for fuel handling, labeling, and storage protocols to prevent workplace hazards.

Diesel Exhaust Fluid (DEF): Corrosion & Contamination Risks

Diesel Exhaust Fluid (DEF) is essential for reducing emissions and, thus, emission compliance, but improper storage can lead to contamination and equipment damage. While DEF is non-flammable, it is highly sensitive to temperature changes and prone to degradation if not stored correctly.

Storage & Compliance Considerations

• Use dedicated storage containers: DEF should only be stored in stainless steel or high-density polyethylene (HDPE) containers to prevent contamination. Never store DEF in fuel tanks or mix it with diesel, as cross-contamination can cause severe damage to vehicle emission systems.
• Control temperature exposure: DEF freezes at 12°F and degrades above 86°F. Proper insulation, temperature-controlled storage, and tank heating systems are necessary in extreme climates.
• Keep away from contaminants: Even small amounts of dirt, dust, or fuel residue can render DEF ineffective. Use sealed containers and avoid exposure to moisture or air.
• Comply with ISO 22241 standards: These international guidelines regulate DEF purity, storage, and handling to ensure optimal performance.

Fuel Additives: Proper Storage for Maximum Effectiveness

Fuel additives enhance fuel efficiency, prevent engine deposits, and improve combustion, but improper storage can cause additives to degrade or lose effectiveness. If you rely on seasonal fuel stabilizers, anti-gelling agents, or detergents, it’s important you store them correctly to preserve their chemical properties.

Storage & Compliance Considerations

• Store at stable temperatures: Most additives should be kept between 40°F and 80°F to prevent chemical breakdown. Extreme heat or cold can alter their effectiveness.
• Protect from moisture & air exposure: Oxygen and humidity can cause chemical reactions, reducing the effectiveness of certain additives. Always keep containers tightly sealed.
• Use approved containers: Fuel additives should be stored in manufacturer-approved plastic or metal containers that prevent leaks, evaporation, or contamination.
• Avoid direct sunlight: UV exposure can alter the chemical composition, making additives less effective. Opaque or dark-colored storage containers are recommended.
• Check expiration dates: Additives have limited shelf lives. Implement a first-in, first-out inventory system to ensure older stock is used before expiration.

Industry-Specific Regulations & Compliance Standards

Fuel storage requirements vary across industries, with each sector facing unique compliance regulations to ensure safety, environmental protection, and operational efficiency. 

Construction & Heavy Equipment

Construction sites and heavy equipment operators usually store large volumes of fuel to power machinery. The environmental and safety regulations take that into consideration.

• OSHA & EPA SPCC Compliance: The Spill Prevention, Control, and Countermeasure (SPCC) Rule requires businesses storing 1,320 gallons or more of fuel aboveground to implement secondary containment measures and spill response plans.
• Secondary Containment Systems: Construction sites must use fuel storage berms, double-walled tanks, or spill trays to prevent soil and water contamination in case of leaks.
• On-Site Storage Maintenance: Tanks must be inspected regularly for leaks, rust, or structural damage, ensuring compliance with fire safety and hazardous material handling standards.
• Portable & Temporary Fueling Solutions: Mobile fuel tanks must be DOT-approved and properly labeled to ensure safe transport between job sites.

Agriculture & Farming

Farms and agricultural businesses require diesel, gasoline, and fuel additives for their tractors, irrigation systems, and equipment. Regulations are in place to protect the soil, groundwater, and crops around storage.

• Double-Walled Tanks & Containment Structures: EPA and USDA regulations require farm fuel storage tanks to be double-walled or placed within spill containment areas to prevent leaks from seeping into the soil.
• Fuel Transfer & Handling Safety: Agricultural operations must use properly labeled fuel tanks and color-coded hoses to avoid cross-contamination between fuel types.
• Tank Location & Environmental Protection: Storage tanks should be kept away from water sources, wells, and livestock areas to minimize contamination risks.
• Seasonal Fuel Storage Considerations: Farms that store fuel for long periods must use stabilizers and anti-gelling additives to maintain fuel quality during off seasons.

Transportation & Fleet Management

Fleet operators and commercial fueling stations must follow Department of Transportation (DOT) hazardous materials storage regulations to ensure safe fuel handling, storage, and distribution.

• DOT Hazardous Materials Regulations: Fleet depots storing bulk fuel must comply with DOT’s Hazardous Materials Regulations (HMR), ensuring safe labeling, containment, and spill response procedures.
• Leak Detection & Monitoring Systems: DOT dictates that underground and above-ground fuel tanks have monitoring systems to detect leaks or abnormal pressure changes before they cause environmental damage.
• Proper Venting & Fire Prevention: Fleet fuel depots must use approved venting systems and fire suppression measures to prevent ignition hazards.
• Inventory Management & Compliance Logs: Fuel usage must be tracked and recorded to ensure compliance with fuel tax regulations and environmental reporting standards.

Maximizing Safety and Fuel Efficiency in Fuel Storage

Proper fuel storage isn’t just about compliance—it’s about protecting your investment, maintaining fuel quality, and ensuring operational efficiency. If you store fuel in bulk, here’s what you should keep in mind: 

1. Fuel Quality Management

Maintaining high-quality fuel is essential for smooth operations. Here’s what Hansen says: 

“One of the biggest risks with diesel storage—especially in extreme climates like Idaho and Wyoming—is algae and microbial contamination. Water buildup encourages microbial growth, leading to clogged filters, fuel degradation, and equipment damage.” 

Here’s how to keep your fuel clean and stable:

• Moisture, dirt, and rust buildup can degrade the quality. Water-removal filters, desiccant breathers, and tank inspections help prevent contamination.
• Diesel fuel is susceptible to bacteria and algae growth, especially in humid conditions. Biocide treatments and proper tank maintenance help eliminate microbial contamination.
• Stabilizers help extend fuel lifespan, while multi-stage filtration systems remove particulates and impurities before fuel reaches your equipment.

1. Optimizing Fuel Inventory Management

Without a structured fuel inventory system, you risk unexpected shortages, excess fuel spoilage, or unnoticed leaks. Efficient tracking ensures that fuel is always available, without the unnecessary waste, of course. Here’s what works:

• Use fuel monitoring systems. These automated systems provide real-time usage tracking, helping identify abnormal consumption patterns and detect potential leaks. 
• If you’ve set up alerts with your supplier, you can implement an automated reorder to prevent fuel shortages and eliminate last-minute emergency refueling costs.
• Tracking historical fuel usage helps businesses forecast demand and adjust purchasing strategies accordingly.

1. Reducing Fuel Waste & Loss

This can occur due to evaporation, improper handling, and theft. Taking preventative measures helps maximize fuel usage and minimize financial losses:

• Incorporate proper tank insulation and shading solutions to help mitigate losses.
• Use vapor recovery systems to reduce fuel evaporation, especially in warm climates.
• Store fuel in temperature-controlled tanks to slow degradation and prevent excessive vapor loss.
• Locking mechanisms, security cameras, and restricted access controls can help prevent unauthorized fuel usage.

1. Regular Tank Inspections

Routine inspections help identify potential issues before they become costly problems. Fuel storage tanks are exposed to wear and tear over time, making regular assessments essential:

• Fuel tanks should be inspected for corrosion, cracks, or loose fittings that could lead to leaks.
• Test for water buildup at the tank bottom, which can indicate leaks or condensation issues.
• Regulatory agencies require scheduled professional inspections to verify compliance with EPA, OSHA, and local fire codes.
• Regularly checking dispensing equipment ensures that fuel flows properly without clogging, contamination, or leaks.

1. Cleaning & Servicing Storage Tanks

Over time, sludge, sediment, and microbial growth can accumulate in storage tanks, reducing fuel quality and system efficiency. Regular cleaning prevents these issues and extends the tank’s lifespan.

• Tanks should undergo periodic deep cleaning to eliminate buildup that can compromise fuel performance.
• Stagnant fuel can degrade over time. Fuel recirculation systems and proper venting help maintain fuel stability.
• Regularly changing fuel filters and inspecting dispensing systems prevents blockages and ensures clean fuel reaches the equipment.
• Condensation buildup can introduce water into fuel storage tanks, leading to microbial growth and contamination. Implementing water separators and scheduled water drainage helps maintain fuel integrity.

1. Keeping Up with Changing Regulations

Fuel storage regulations are constantly evolving, and non-compliance can lead to hefty fines and operational disruptions. Staying informed ensures your business remains compliant.

• Keep track of changes from the EPA, OSHA, and local agencies, or risk fines and punishments.
• Periodic reviews by regulatory experts help your business stay ahead of changing fuel storage requirements and avoid costly penalties.
• Working with an experienced fuel provider ensures you receive up-to-date guidance on compliance, tank safety, and storage best practices.

1. Navigating Fuel Storage Equipment

For many businesses, investing in new fuel storage equipment can be a financial challenge. That’s why Conrad & Bischoff offers leased and loaned storage solutions that meet industry safety and performance standards, ensuring companies can access high-quality tanks without the upfront capital investment.

“One of the biggest ways we help businesses is through our investment in high-quality fuel storage equipment. Many customers don’t have the capital to purchase new tanks outright, so we offer leased and loaned equipment that meets industry safety and performance standards.”

– Jeff Hansen, Regional Branch Manager

Secure Your Fuel Storage with Confidence

Proper fuel storage isn’t just a box to check—it’s a critical investment in safety, efficiency, and long-term operational success. The risks of spills, contamination, and non-compliance can be costly, but with the right storage solutions, you can protect your fuel, your equipment, and your bottom line.

We provide industry-leading fuel storage solutions tailored to your business’s unique needs. From high-quality tanks and secondary containment to expert guidance on compliance and maintenance, we help ensure your fuel stays secure, clean, and ready for use—no matter the conditions.

Let’s talk fuel storage. Contact our team today to find the right solution for your operation and take the guesswork out of fuel management.