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GASTON & ASSOCIATES ———————————————————————————- |
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Environmental Business News Current Environmental Issues December 2004 |
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The California Underground Storage Tank Cleanup Fund
The Application Process
The Application Process
The Priority List
The Letter of Committment _________________ Gaston and Associates Environmental Consulting 20 Truman, Suite 108 Irvine, CA 92620 Phone: 949-2620440 Fax: 949-262-0750 web: GastonAssociates.com © Gaston and Associates2005 |
This issue presents additional information about the California Underground Storage Tank (UST) Reimbursement Fund. The UST Fund is a California-operated funding source to enable owners of underground fuel storage tanks that have leaked to comply with local oversight agency requirements for site assessment and cleanup. The UST Fund provides money to eligible tank owners and operators to avoid what otherwise may cause devastating financial impairment to these small and important businesses; the independent gasoline station owner and operator. Although the major oil corporations are eligible for Fund reimbursement, they have been placed last in line to receive reimbursement due to their corporate size, as specified by the controlling regulations. Note that the following discussion is presented in general terms and should not on its own be relied upon to evaluate a particular site’s potential Fund eligibility. Although it is definitely possible for the applicant (or claimant, as they are referred to by the Fund) to evaluate and successfully complete the application process, it is recommended, however, that the services of a reputable third-party consultant be retained to ensure that the application is complete — preferably not the consultant that is also performing the assessment or cleanup work. Gaston and Associates does not typically prepare Fund applications, choosing to retain a third-party consultant to assist our clients and avoid the potential for the appearance of a conflict of interest in the eyes of the Fund reviewers. The application is submitted in the name of the owner or operator of the current or former USTs located at the Site. In order for an underground tank owner or operator to submit a successful claim for reimbursement to the UST Fund, a claimant must be a current or past owner or operator of the UST that leaked. This point (being the owner/operator of the tank that leaked) can be problematic if the release occurred while the tanks were previously owned by another person or entity when the release occurred. For example, if the contamination is a result of a release from a tank that has already been removed and which was owned by a predecessor, the applicant, as the current site owner, may not be eligible for reimbursement from the Fund. However, this may be rectified by petitioning the Fund for an assignment of eligibility for reimbursement. UST Fund Eligibility Eligibility requires that the claimant has been ordered by a local regulatory agency to conduct corrective action following discovery of an unauthorized release. The tanks must be in compliance with the applicable UST permitting and regulatory agency cleanup requirements. One issue that is looked into by the Fund reviewers is whether the tanks were present and permitted between 1984 and 1990. A copy of at least one permit during any of those years is needed. If the tanks are presently in service, they must have a current UST permit. Additional questions which must be addressed include whether the tanks were removed or upgraded by the 1998 Federal deadline and whether the owner/operator paid the required fuel taxes while the tanks were in operation. A copy of the UST Fund application can be found here. Once submitted, the application is reviewed by the Fund for completeness and to determine eligibility. It is common for the Fund to request additional information to complete the evaluation. If the claimant is determined to be eligible for funding, it will be placed on the priority list in the appropriate priority class chronologically by the date the Fund received the claim. The Fund established a claim priority list to help organize, manage, and rank claimants in order of financial status. The priority list classes are presented below. Class A: includes residential tank owners. Class B: includes small California businesses, governmental agencies, and non-profit organizations with gross receipts and/or the number of employees below a specified maximum. Class C: includes California businesses, governmental agencies, and non-profit organizations having fewer that 500 employees. Class D: includes all other claimants. Once a claim is on the priority list, a compliance review of the site file is conducted at the offices of the local regulatory agency. The file review is conducted to, among other things, verify the existence and validity of the permits and other documents submitted to support the UST Fund application. Depending upon the site location, this file review may not occur for several months following submission of the application. Sites located in California counties with fewer UST sites are likely to encounter delays because the agency file reviews in those locales are scheduled less frequently. If a claimant is found to be eligible and funding is available, a Letter of Commitment (LOC) will then be issued. The LOC commits State funds for the required activities and expenses which are then henceforward reimbursable by the Fund.
Please note that this newsletter is available via email. If you would prefer to receive this by email, please contact Lauren as noted below. If you do not wish to receive this document, please contact Lauren Tozzer at (949) 262-0440 or email her at lauren@gastonassociates.com. __________________________________________________________ This material is provided for information purposes only and is not intended as and cannot be considered to be legal advice. Before taking any action based on this information you should consult your legal counsel. |