CLEAN-UPS UNDER PA's USTIF-THE PRICE OF REMEDIATION
PROJECT PROFILES:
With the ever increasing costs of site investigations, consultant and contractor costs, laboratory analytical fees, the cost of many environmental projects has becoming increasingly frightening to both individuals and corporations. In the event that the terms "clean-up" and "remediation" enter the picture, many sources of funding are exhausted long before a multi year remediation project is implemented.
In many instances, clean-ups may be eligible for reimbursement under the Underground Storage Tank Indemnification Fund (USTIF). Surprisingly, the utilization and awareness of available funding is not as understood as one may anticipate and expect. Financial assistance in many cases is simply obtained through existing funding with little effort.
The Storage Tank and Spill Prevention Act, (Act 32 of 1989) requires every owner or operator of a regulated storage tank to meet the financial responsibility requirements established by the Department of Environmental Protection (PADEP). created the USTIF to assist owners and operators in meeting the financial responsibility requirement. The Fund makes claim payments to eligible UST owners or operators for damages caused by a release from their UST. To be eligible, the following criteria must be satisfied:
- A claimant must be the owner or operator of the tank that is subject of a release The tank is properly registered, USTIF fees for the tank are paid and current, PADEP permit requirements for the tank have been met. Specifically, the tank must possess some form of leak detection. The tank owner demonstrates that the release occurred on or after February 1, 1994 (releases prior to this date and continuing after may be eligible for a prorated payment)
- A claim request is initiated by a call to USTIF's Claim Unit at (717) 787-0763. Information requested by the claim is subsequently assigned to an investigator who begins the formal claims investigation process, and estimated costs required for clean-up items typically requested include proof of tank registration and payment, tank inventory records, leak detection system .... Upon submission of the package ..., a determination of eligibility is assigned to the claim. The tank owner is informed in writing of the determination. At this point, an expenditure submission for reimbursement may be submitted to the Fund which may include costs for emergency response activities, investigation, assessment, and cleanup costs including costs incurred for the use of consultants an laboratories.
- A deductible must be met prior to receiving eligible distributions. Claims are subject to a deductible of $5,000 per tank. The per occurrence limit is set at $1,000,000. Claim payments to eligible owners or operators are limited to the actual costs of corrective action and third party liability. Payments shall not exceed an annual aggregate of $1 million for each owner and operator.
- The current reserves in the Fund (as of July 1999) are $149,210,107.76. The average cost per claim amounts to $88,974.42.
RT personnel have extensive experience assisting owners and operators of USTs in filing claims, preparing claim submission packages, and determining eligibility status. Please call RT Environmental Services at (610) 265-1510 should you have any questions or require assistance in regards to a potential or existing claim. Fund information is also available at the PA Insurance Department website at: www.insurance.state.pa.us/ustif.
