FREQUENTLY ASKED QUESTIONS
Where can I view the Addendum to the Certificate of Coverage?
Click here to view the 2024 Addendum to the
Certificate of Coverage
Click here to view the 2023 Addendum to the
Certificate of Coverage
What
information does the Board need to document the transfer of ownership of
USTs?
When
ownership of an underground storage tank is transferred, the owner or
operator must notify the director within 30 days of the date of the
transfer by mailing or emailing a
completed Transfer
of Ownership Form with
a copy of executed sales documentation (Bill of Sale, Deed Transfer,
etc.). For ownership transfers of underground storage tanks that do not
also include the sale of real estate, a copy of sales documentation (Asset
Purchase Agreement, Bill of Sale, etc.) is required.
When
UST ownership is transferred, will coverage transfer to the new owner and
can the deductible be changed?
Yes, coverage does transfer. Effective June 30, 2006, the new owner is
required to pay a $500 transfer fee per facility; pay all outstanding
prior year per-tank late payment fees, and collection costs if any;
complete a statement of financial responsibility; and certify that the
tanks are in compliance with BUSTR rules.
If the
current coverage is at the reduced deductible ($11,000), it will transfer
to the new owner provided the new owner owns six or fewer USTs. If the new
owner owns seven or more USTs, the coverage will transfer at the standard
deductible of $55,000 since the reduced deductible is only available to
owners of six or fewer USTs.
If the current coverage is at the standard deductible and the new owner
owns six or fewer USTs, the reduced deductible may be obtained by
completing the items listed above and paying the full per-tank fees at the
rate for the reduced deductible.
Click here for
more information concerning ownership transfers and transferring a
Certificate of Coverage.
What
information does the Board need to document the installation of USTs at a
facility?
When
installing petroleum underground storage tanks at a new or existing
facility, owners must immediately notify the Board when a regulated
petroleum product is introduced into the UST by mailing or emailing a
completed Tank
Installation/Removal Notification Form. Coverage with the Fund
will be effective when full payment and a completed Application for
Certificate of Coverage/Annual Fee Assessment Statement are received and
accepted by this office.
At the
responsible person’s option, coverage with the Fund can be effective at
the time a regulated petroleum product is first introduced into the UST by
mailing or emailing a
completed Tank
Installation/Removal Notification Form before
introducing a regulated petroleum product into the USTs. Upon receipt, an
Application for Certificate of Coverage/Annual Fee Assessment Statement
will be mailed to the responsible person to assist with remitting the
annual per-tank fees, if applicable. If full payment and the completed
Application are received by this office before product is
introduced into the USTs, the effective date of coverage with the Fund
will be the date product is first introduced into the USTs.
What
information does the Board need to document the removal of USTs from a
facility?
When
removing an underground storage tank, the owner or operator must notify
the Board in writing by mailing or emailing
a completed Tank
Installation/Removal Notification Form, a copy of the narrative
portion of the closure report, or a copy of the Removal Field Inspection
Report.
If
USTs are removed and new USTs are installed at a facility, will coverage
transfer?
No.
Effective January 11, 2024, a new Certificate of Coverage must be obtained
for any USTs installed at the facility by submitting a new Application for
Certificate of Coverage along with payment of the annual fee for each tank
installed. The owner may notify the Board of any UST removal or
installation by mailing or emailing a
copy of the Tank
Installation/Removal Notification Form.
If
tanks are removed or installed during the year, are fees pro-rated?
No, fees
are assessed annually and are required for all petroleum storage tanks
under ground at
any time between
July 1 and June 30.
If
tanks were removed by June 30, but the clean-up is not yet complete, do I
still owe the annual fees?
No, fees are not required to be paid if the tanks were removed prior to
July 1.
What
resources are available for owners with limited funds?
-
The Linked
Deposit Program makes available lower interest funds for the
replacement and upgrade of tanks and tank systems.
-
A tank
owner with an approved Hardship
Status is granted the benefit of an expedited claim review.
-
A tank
owner may contract with a consultant who is willing to accept a Direct
Payment.
I am
considering purchasing property with ongoing remediation, and under the
purchase agreement it is agreed that I will be continuing the clean-up.
How do I get reimbursed?
The
original tank owner, the one to whom the eligibility was granted, retains
the responsibility for the remediation activities and costs. However, if
both parties agree that the purchaser will pay for the corrective actions
costs, a Direct
Pay Agreement can be executed and any reimbursement of eligible
corrective action costs will be made directly to the purchaser.
In
addition, a new property owner can file claim reimbursement applications,
cost pre-approval applications, certification affidavits, and direct
payment authorizations through the execution of a Limited
Power of Attorney for Signature Delegation.
I
received two eligibility determinations, each with an $11,000 deductible.
Does that mean I have to spend $22,000 before I get any reimbursement?
Not
necessarily. As long as one of the releases has met the deductible,
reimbursement can be made for that release. For example, there are three
gasoline tanks in one excavation and a waste oil tank in another separate
excavation. If the reimbursable corrective action costs for the gasoline
tank release totals $15,000, then a reimbursement of $4,000 can be made.
Meanwhile, if the reimbursable costs attributed to the waste oil tank
release total only $2,000, this amount will simply be applied toward the
separate $11,000 deductible and no reimbursement can be made for that
release.
Are
canceled checks the only method to demonstrate proof of payment?
Canceled
checks are the most desired method of documentation. The majority of tank
owners are able to provide copies of canceled checks to demonstrate
payments made for corrective actions. However, as a last resort,
affidavits are available when canceled checks are not readily obtainable.
This option, however, is subject to the Director’s approval.
What
documentation is required in a claim application?
To be
considered for reimbursement, all corrective action costs must be
submitted with a completed Claim Reimbursement Application available at www.petroboard.org/Pdfs/ClaimApplication.pdf. In
addition, all costs must be documented by canceled checks and invoices. If
a consultant/contractor used a subcontractor (such as a lab, driller, soil
hauler, disposal facility, backfill supplier, etc.) for any of the
corrective action work, the subcontractor invoice(s) must be included with
the claim application. Invoices should be broken down on a time and
material basis as much as possible. If you have any questions regarding
claim documentation, please contact the Board’s staff.
I
received my NFA, but my contractor charged me for well abandonment after
the NFA date. Are those costs reimbursable?
Yes, the
typical costs for well abandonment are reimbursable. A claim that includes
the well abandonment costs must be received by the Board within one year
from the date BUSTR issues
a determination of No Further Action.
What
costs are subject to the Board’s mandatory pre-approval? Will the Board
reimburse any of these costs if they were not submitted for pre-approval
as required?
Effective
January 1, 2019, estimated cost and completion schedules for corrective
action activities associated with the following must be submitted for cost
pre-approval at the same time they are required to be submitted to BUSTR:
-
Interim Response Actions requiring BUSTR approval
-
Remedial Action Plans (RAPs)
-
When
the estimated costs exceed $6,000 for:
◦ Tier 3
Evaluation Plans
◦ Plans
to calibrate or disprove the fate and transport model
◦ Monitoring Plans associated with tier evaluation reports
After
initial pre-approval of the estimated costs is granted, responsible
persons must annually submit pre-approval applications to the Board’s
Director for costs associated with RAP, FP monitoring and FPR activities,
unless allowed otherwise by the Director.
In
addition, a revised estimated cost and completion schedule is required to
be submitted if during implementation of the corrective action activities
for which cost pre-approval:
-
has
been granted, the actual costs are anticipated to exceed the lesser of
$6,000 or 20% of the pre-approved amount; or
-
was
not sought because the estimated costs did not exceed $6,000, but the
actual costs will exceed $6,000.
Pursuant
to rule 3737-1-09(A)(13), failure
to seek cost pre-approval when required will limit reimbursement to 50% of
the usual, customary and reasonable costs of the least expensive
alternative for similar corrective action activities as determined from
the Fund’s experience.