Fund Coverage & Deductibles
The fund will provide reimbursement to eligible owners or operators
of storage tanks for corrective action costs and expenses required to address
accidental releases. The owner or operator shall be responsible for the first
$25,000 (deductible) or, for releases reported after August 1, 1997, the first
$15,000 (deductible) of corrective action costs and expenses per occurrence
or, for releases reported on or after July 30, 1999, the first $7,500 (deductible)
of corrective action costs and expenses per occurrence.
The fund will provide reimbursement to eligible owners or operators
of storage tanks for compensating third parties for bodily injury and property
damage caused by accidental releases. The owner or operator shall be responsible
for the first $25,000 (deductible), or for releases reported after August 1,
1997, the first $15,000 (deductible) for third party, bodily injury and property
damage costs or, for releases reported on or after July 30, 1999, the first
$7,500 (deductible) for third party, bodily injury and property damage.
Categories of Coverage
- Aboveground storage tank- between 1,320 gallons and 40,000 gallons as defined by Regulation 12.
- Underground storage tank- 110 gallons or larger as defined by Regulation 12.
- Product - Refined Petroleum products such as: gasoline, diesel, waste oil, kerosene, etc..
In order for an owner or operator to be eligible to access the
Arkansas Petroleum Storage Tank Trust Fund through the reimbursement program, he
or she must meet the following criteria:
- Own or operate a regulated petroleum storage tank system as defined by Regulation 12.
- The tank(s) must be registered with ADEQ and all tank fees paid.
- The ADEQ was given timely notice of the release, and the owner or operator cooperated fully with the Department in corrective action.
- Q. What releases are covered by the trust fund?
Only confirmed releases from petroleum underground or aboveground storage tanks may be eligible for coverage by the Arkansas Petroleum Storage Tank Trust Fund. [Arkansas Pollution Control & Ecology Commission (APC&EC) Regulation 12.103].
- Q. Are there releases from any regulated storage tanks that are not covered by the trust fund?
Yes. Releases from storage tanks storing CERCLA materials, other hazardous substances, or non-petroleum products are not covered by the trust fund.
- Q. How do I know if my release is eligible for coverage by the trust fund?
There is a “Trust Fund Checklist for Tank Owners” available for use as a quick and easy guide to evaluating your release.
Eligibility Checklist. If you can answer “Yes” to all of the questions in the checklist, you have likely met the requirements for coverage for the release. You can then submit a request to ADEQ for an eligibility determination for your release. In most cases, we’ll be able to evaluate your request and issue a determination within 30 days of receipt. Note: We can’t make a determination of eligibility for a suspected release. Eligibility can only be determined for a confirmed release.
- Q. How long do I have to report a release once it’s discovered?
A suspected release must be reported to ADEQ within 24 hours of discovery.
- Q. How do I know if my release is a “confirmed” release?
A confirmed release is determined based on either visual observation (e.g., a surface spill or catastrophic release from a storage tank system) or evidence from a systems test, site check, or both, that a release from a storage tank system has actually occurred. Releases are “suspected” until confirmed by one of these methods. (A suspected release must be either confirmed or denied within 7 days of discovery.)
- Q. How do I check to see if my tanks are registered or my tank fees are paid?
You can check on both via the RST Division’s online storage tanks data files available from ADEQ’s website at www.adeq.state.ar.us/rst/tankstats/facil_sum.asp. You may also contact the RST Division at (501) 682-0999, and we can check your registration and fee payment information for you.
- Q. When do I ask ADEQ for an eligibility determination for my release?
You may request an eligibility determination at any time after your release is confirmed and you can answer the other questions on the checklist affirmatively. Eligibility Checklist.
- Q. How do I request an eligibility determination for my release?
Mail a written request to: Lynda Perry, Regulated Storage Tanks Division, ADEQ, 5301 Northshore Drive, North Little Rock, AR 72118. Be sure and include the name and address of your tank facility, the facility identification number, the leak number (if you know it) and detailed information, such as the date of the release and other particulars.
- Q. If my release is eligible, what is the non-reimbursable deductible amount I’m responsible for paying?
For eligible releases occurring after July 31, 1999, the deductible amount is $7,500 for corrective action costs. (There is also a separate deductible of $7,500 for any third-party claims that may result from a release.)
- Q. What costs apply toward the corrective action deductible for eligible releases?
Only reasonable, allowable and necessary costs can be applied toward meeting the $7,500 corrective action deductible. [APC&EC Regulation 12, Chapter Three]
- Q. If I disagree with a decision made regarding my eligibility for trust fund coverage, how do I appeal the decision?
Any person aggrieved by the Department’s determination of whether a release is eligible for trust fund coverage may request that the Advisory Committee on Petroleum Storage Tanks and, if necessary thereafter, the Director of ADEQ, review the Department’s determination. A request for Advisory Committee review must be made in writing to ADEQ within ninety (90) days of the date of the Department’s decision. Send the request to ADEQ, 5301 Northshore Drive, North Little Rock, AR 72118-5317, Attn: Regulated Storage Tanks Division Chief.
- Q. How do I report a release or suspected release after normal business hours or on weekends?
You can email the RST inspector for your district or leave a telephone message on his or her office voice mail. (RST Inspector contact information is available on ADEQ's website.)
Otherwise, outside ADEQ’s normal business hours, report of a release or suspected release may also be made to the Arkansas Department of Emergency Management (ADEM) at 800-322-4012. If ADEM receives information about a petroleum product or hazardous material release, it will notify ADEQ’s Emergency Response Section and the information will be forwarded to the RST Division.
If the initial notice of a release or suspected release is given verbally, you must follow up that verbal notice with written notice of the release or suspected release to the Department within three (3) business days of the initial verbal notice. (This can be completed in the form of an email, fax, U.S. mail, etc.)
- Q. What qualifies as a reportable release?
The discovery of free product or vapors in soils, basements, utility lines or nearby surface water at the UST site or in the surrounding area; unusual operating conditions such as sudden loss of product from the UST system, erratic behavior of product dispensing equipment, unexplained presence of water in the tank, etc.; or monitoring results from a release detection method indicate a release may have occurred. [40 CFR 280, Subpart E]
For purposes of trust fund eligibility, release reporting requirements for aboveground storage tanks are the same as for underground storage tanks. [APC&EC Reg.12.305(B)]
- Q. Can I have a contractor or another party report a release on my behalf?
Yes, you may have a contractor or other party report a release or suspected release for you. However, as the tank owner or operator, you are responsible for compliance with the timely notice requirement.
Reimbursement Application Review Process
Upon receipt of an application for reimbursement of corrective action costs,
the RST Division will perform the following activities:
- Perform an administrative screening, to determine:
- if the applicant is eligible for reimbursement
- if the application has been completed correctly
- if all the necessary forms and documentation have been submitted
- if the technical information concerning activities, status of the project, amount of contamination recovered and prognoses has been submitted.
- Conduct the technical review, to determine:
- if the activities performed were necessary for site cleanup
- if cleanup activities were properly performed
- if all the expenses submitted for reimbursement are allowable
- Conduct the financial review, to determine:
- if the deductible has been met
- if all costs submitted are for activities performed after the reported release
- if all required invoices and subcontractor invoices are submitted;
- if acceptable proof of payment is submitted
- if costs have been submitted on a previous claim
- if the costs performed are reasonable based on the Cost Control Guidelines
- if the costs submitted for activities performed were pre-approved, and are within the pre-approval amounts
Reasonable and Allowable Costs
All costs must be pre-approved unless they are a result of an emergency
Application for Reimbursement
A blank application for reimbursement form can be obtained from
the Trust Fund Section, Regulated Storage Tank Division:
- By calling (501) 682-0999
- Download Reimbursement Application:
The original application including all required certification forms
and documentation should be submitted to:
Arkansas Department of Environmental Quality
Regulated Storage Tank Division
Trust Fund Section
5301 Northshore Drive
North Little Rock, AR 72118-5317
Who to Call Concerning Reimbursement Questions
All reimbursement questions should be directed to the Regulated Storage Tank
Division’s Trust Fund Section at (501) 682-0999.
- Wanda Paes, Trust Fund Administrator, (501) 682-0981
- Lynda Perry, Program Section Manager, (501) 682-0979
- Ometra Okuwoash, Environmental Program Coordinator (501) 682-0977
- Tinisa Poffenbarger, Administrative Analyst (501) 682-0975