Which type of UST system is exempt from federal regulation?

The correct choice indicates that tanks storing heating oil for consumptive use are exempt from federal regulation. This exemption is based on the criteria set forth in the Resource Conservation and Recovery Act (RCRA) and its associated regulations concerning underground storage tanks (USTs). Specifically, heating oil tanks that are used for consumptive purposes, such as heating a space or facility, are not categorized as USTs under federal oversight, primarily because they are seen as serving a residential or commercial need rather than being used for commercial storage or distribution.

This distinction is significant, as it helps minimize regulatory burdens for homeowners and small businesses that rely on heating oil for their heating needs. Conversely, tanks used for purposes such as supplying commercial vehicles, agricultural storage, or for construction equipment typically involve activities that are more focused on operations and business functions that fall under stringent UST regulations. The federal government recognizes the need to regulate those more closely due to the potential risks associated with the storage and distribution of petroleum and hazardous substances.