Baltimore will pay the state $48,000 in penalties for failing to upgrade 18 underground gasoline storage tanks to federal standards, under an agreement approved yesterday by the city Board of Estimates.

The city is one of several municipalities across the state failing to make the necessary changes to protect the tanks from corrosion and add spill and overfill equipment.

A decade ago, the federal Environmental Protection Agency mandated the upgrades, giving service stations, businesses and municipalities 10 years to meet the standards.

Although the city spent more than $2 million to upgrade several hundred gasoline tanks it owns, 18 tanks remained unrepaired by the Jan. 1, 1999, federal deadline because of a lack of money.

The city will pay a monthly penalty of $4,000 under the agreement with the state.

The pact requires that the operation of the tanks not pose a risk to the environment and has strict requirements, including leak detection regulations.

The city could face up to $60,000 in additional fines if there is a violation of the agreement.

Last month, the estimates board approved spending up to $250,000 to buy gasoline and oil this winter because the city was unable to use the tanks because they had not been upgraded.

The city also transferred $204,000 to a fund established to upgrade the tanks.

Baltimore Public Works Director George G. Balog said yesterday he will study whether it would be more efficient to give city employees credit cards to use at regular service stations rather than pay for the tank upgrades.

In other action yesterday, the five-member board forgave $802,500 of a loan to the owners of the Waverly Apartments as part of a refinancing package.

In 1986, the city approved using $1.6 million in federal funds as a deferred second mortgage to help finance constructing 310 apartments at 925 1/2 E. 30th St.

The owners, Carl T. and Edward V. Julio, want to refinance the $7 million project. The owners will pay back half of the loan to the city.

Pub Date: 3/18/99