ENVIRONMENTAL SURVEY UPDATE ARTICLES

THE UNDERGROUND STORAGE TANK INDEMNIFICATION FUND IS YOUR PENNSYLVANIA SITE ELIGIBLE?

Based on recent client contacts, RT believes that many business owners are not aware that the Underground Storage Tank Indemnification Fund (USTIF) exists. The USTIF is a self funding source that provides up to 100% of the costs associated with remedial investigations and/or remediations of sites where a registered underground storage tank (UST) system is identified as the source of contamination. The fund also provides coverage for protection against third party lawsuits. Initial site investigations prior to tank removal and the actual tank removal/closure are not covered. To qualify for funding, the following key criteria must be met:

The UST system must be registered with the Pennsylvania Department of Environmental Protection (PA DEP). The owner of operator of the UST system must initiate the claim.

The UST system must have been in service after February 1, 1994, which was the inception date of the USTIF.

It must be demonstrated that the release occurred sometime after February 1, 1994. If the release was the result of a one time line break, overfill or tank failure, the date will be documented through the report of the release to the PA DEP. Timing of historical releases that are discovered as part of an investigation or tank removal can be shown to have occurred (at least in part) after February 1, 1994, simply by documenting that a hole exists in the tank and/or piping and the system was in use after this date. Historical tank tightness tests can also be useful. For example, if a UST system tested tight sometime in 1993 and then failed a tightness test in 1996, the release can be shown to have occurrred (at least partially) after the inception date.

The throughput or volume fees must have been paid to the USTIF. The USTIF fees for USTs containing gasoline, motor oil, gasohol, aviation fuel, fuel fixtures, farm diesel, hazardous substances or any other materials not included in the folume fee list are paid by the suppliers on a per gallon basis and automatically passed on to the end users. Registered USTs containing diesel fuel, heating oil, used motor oil or unknown materials are charged a yearly fee based on the volume of the registered USTs at the property.

The first step in applying for USTIF funding is to compare your UST system to the above requirements. Payed USTIF throughput fees can be verified by providing fuel receipts from the supplier. Volume fees can be verified by the USTIF by contacting the UST division of the PA DEP since the payments are sent directly to that office. If the site in question meets the above listed requirements, the next step is to submit a claim to the USTIF. Once received, the claim is passed on to a third party private company, which reviews the claim and contacts the representative of the claimant for a formal interview. At this time, the third party reviewer will also request the following information, if available:

• Daily tank inventories for the UST system for the three month period preceeding the discovery of the release.

• All UST system tightness test results.

• A copy of the tank registration form.

• Color photographs of any UST system removal or upgrade.

• A copy of any UST closure reports or other correspondence submitted to the PA DEP. 

Based on the data submitted, the third party reviewer will make an eligibility recommendation to the USTIF. If approved, the claimant will receive an approval letter from the Claims Representative stating the percentage of reimbursement. At that time, the claimant must start payment of the one time $5,000 deductible per tank. It is important to note that a claim can be submitted even after some of the remedial investigation and/or remediation work has been completed at the site.

How Can RT Help?

RT is currently working on two large scale projects that have been approved for 100% funding through the USTIF. In addition, one additional project is being reviewed and is a good candidate for funding.

RT is familiar with the application process and knows what information is needed to get your site approved. Once determining that a site is a good candidate for funding, RT can assist you in compiling the needed information prior to making the claim. This helps speed the review/approval process and eliminates the back and forth information exchange that can otherwise slow the determination of eligibility.

Once a site has been approved for funding and work is being completed, RT will keep in contact with the Claims Administrator to gain preliminary approval for all proposed work. This is important to insure that all invoices are approved by the administrator following the completion of the work. Once invoices are approved by the site owner and/or representative, RT can handle all the billing requirements directly through the Claims Administrator and the USTIF Manager.

For more information about the USTIF process or to discuss a site that may be eligible, please contact Craig Hopkins at RT’s New Jersey office at 856-467-2276.