CLEAN-UPS UNDER PA's
USTIF-THE PRICE OF REMEDIATION
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.
