THE OHIO FINANCIAL ASSURANCE FUND

Fund Facts

Costs Not Eligible For Reimbursement 

When a claim is filed, all costs associated with the clean-up of a petroleum release from an underground storage tank (UST) system may be submitted; however, only the necessary costs related to corrective action at the site are eligible for reimbursement. The following is a list of the most commonly submitted costs which are not reimbursable, however it is not meant to be all inclusive.

• Corrective action costs for release dates which precede July 1, 1989.
• Litigation costs.
• State Fire Marshal or Local Fire Department permit/inspection fees.
• Costs associated with UST system removal.
• Costs for the removal/disposal of UST contents.
• Tank or line tightness testing.
• Repairs/retrofitting of existing petroleum UST system(s).
• Installation of new petroleum UST system(s).
• Subsurface assessments performed in conjunction with site acquisition or sale.
• Any form of interest, late payment penalties, or carrying charges.
• Administrative costs, such as bookkeeping or form preparation (eligibility, claim, invoices, proposals).
• Environmental liability/insurance premiums.
• Replacement of blacktop or concrete; site restoration (landscaping).
• Razing, repair, or replacement of fences, buildings, structures, etc.
• Repair of utility lines, sewer lines, water lines, etc.
• Costs incurred in conducting corrective actions for non-petroleum product contamination or petroleum product contamination unrelated to an assured UST system.
• Costs for corrective action activities, including labor rates, laboratory testing, drilling, or other work that exceeds the actual costs as demonstrated by submitted invoices.
• Costs that are not typical based upon the Fund’s experience.
• Invoices for which canceled checks or other proof of payment are not submitted.
• Any undocumented costs that cannot be audited.
• Costs associated with a non-eligible release or an eligible release other than the one listed in the Application for Reimbursement.
• Costs associated with removing or remediating fuel oil USTs storing heating oil for consumptive use on the premises where stored.
• Costs associated with aboveground storage tanks.
• Disposal of soils that were tested below closure action levels and are therefore considered non-regulated wastes which can be used for any lawful purpose.
• The maximum allowable markup of a subcontractor’s actual cost is 10%. No markup will be paid on any of the following:
  • costs of soil removal, including soil excavation, stockpiling, loading and hauling;
  • costs of soil disposal facilities, including landfill facilities;
  • costs of soil treatment facilities, including thermal treatment and bioremediation facilities;
  • costs of liquid removal and disposal;
  • markup charged by the subcontractor(s);
  • primary contractor or primary consultant internal expenses including labor, supplies, per diem travel expenses, and intra-company billings; and charges on supplies, materials and equipment; and
  • markups on the costs of a tank owner’s own employees for remediation activities. Only actual wages and fringes may be reimbursed from the Fund.
• Travel expenses, except the mileage, food and lodging of the primary consultant or contractor, up to a maximum set by the Director.
• If a responsible person fails to submit cost estimates for pending corrective actions to the Board when pre-approval is required, reimbursement will be limited to no more than 50% of the usual, customary and reasonable costs of the least expensive remedial alternative as determined from the Fund’s experience.
• Costs not timely submitted for reimbursement in accordance with Ohio Administrative Code (O.A.C.) 3737-1-12.
• Costs incurred after a no further action letter from the State Fire Marshal has been issued, unless the Marshal required additional corrective actions associated with the eligible release.
• Costs for corrective action and/or third-party claims that exceed the lesser of 50% of eligible costs or eligible costs minus the deductible and amount paid by another party where an owner has failed to comply with O.A.C. 3737-1-22, the administrative rule that requires responsible persons to notify the Board when they have a right to recover money from others due to a petroleum release.
• Costs covered by insurance policies or recoverable from any other party.