Reimbursement Questions and Answers
How is the Corrective Action Fund financed?
Money for the Fund is generated by a per load fee collected at the loading dock from wholesale distributors of petroleum products. The fee is $150 per load of 8,000 gallons.
What requirements are necessary to be eligible for the Fund?
Owners and operators of petroleum storage tanks where a release has occurred may be eligible to access the Correction Action Fund provided that the following requirements are met:
- There has been a release of petroleum from a storage tank reported to and confirmed by the regulatory agency, with exception of federal facilities or facilities on tribal lands
- As a result of this release, the owner or operator must be required by a regulatory agency to take corrective action.
- With the exception of the minimum site assessment, the owner or operator must be in substantial compliance with the Petroleum Storage Tank Bureau regulations.
Do I have to pay a deductible for any remediation work?
In general, an owner or operator is responsible for paying the first ten thousand dollars ($10,000) of the minimum site assessment. The owner or operator otherwise responsible for a ten thousand dollar ($10,000) deductible may be allowed a reduced deductible of five thousand dollar ($5,000) based on an inability to pay the full deductible. An owner or operator may also submit an application for a zero deductible. In situations where a reduced ($5,000) or zero deductible is approved, the reduced portion is paid from the Fund. The owner or operator shall submit the following information to request a reduced ($5,000) or zero deductible before or with the submission of the minimum site assessment workplan:
- A letter explaining why the owner or operator is unable to afford to pay all or a portion of the initial deductible;
- Copies of the owner or operator’s federal tax returns for the immediately preceding two to three years;
- Any additional financial information that will assist the Department in determining whether the owner or operator is unable to pay (for example, copies of bankruptcy filings or medical bills)
What is covered by the Corrective Action Fund?
Corrective action costs include initial abatement, minimum site assessment, soil and water investigation, ongoing monitoring, remediation including operation and maintenance costs, and post remediation monitoring.
How does the Fund work?
Payments are made by the Department to or on behalf of storage tank owners and operators under the Ground Water Protection Act. If the owner and operator are separate persons, only one person is required to comply with the reimbursement requirements of the Petroleum Storage Tank Bureau regulations, however, both parties are liable in the event of non-compliance.
The department takes the lead on high priority sites where owner and operators are unknown, unwilling or unable to take corrective action.
Reimbursement is made for costs paid or incurred for investigation and cleanup work. All costs must be pre-approved by the Department in order to be eligible for payment.
Are the reimbursement claim forms accessible online?
Reimbursement forms can be found online; see the CAF Claim Forms section of the Corrective Action Fund Info page for online versions and directions. If the owner or operator chooses to use the reimbursement forms provided by the Department, all information must be complete to avoid rejection of the claim submittal.