United States
                     Environmental Protection
                     Agency
Solid Waste and Emergency
Response
(OS-420 WF)
EPA 510-F-93-006
April 1993
oEPA          UST  Program  Facts
                     Leaking  Underground
                     Storage Tank Trust  Fund
                     Establishment of the Leaking
                     Underground Storage Tank (LUST) Trust
                     Fund

                     Congress created the LUST Trust Fund in
                     1986 under the Supcrfund Amendments and
                     Rcauthori/ation Act (SARA). In December
                     1990, Congress  reauthorized the Trust Fund
                     for five more years.

                     The purpose of the LUST Trust Fund is to
                     provide money to clean up leaking
                     underground storage tanks (USTs). The
                     Trust Fund can be used at sites where no
                     owner or operator can be found.  It also can
                     be used to oversee corrective action by a
                     responsible party.
           Source of money for the Trust Fund

           The Trust Fund is generated with a 0.1
           cent tax on each gallon of motor fuels
           sold in the country.

           Amount of money in the Trust Fund

           As of October 1, 1992, about $855
           million had been collected. Congress has
           given $400 million to the U.S.
           Environmental Protection Agency (EPA)
           through fiscal year 1993. About $343
           million - or 86 percent of the amount
           given to EPA - was dispersed to state
           programs for state officials to use as
           needed.  The rest of the money spent
                                    LUST Trust Fund Allocation
                                 For State Cooperative Agreements
                                      Federal Awards in Millions of Dollars
                                                     $65.2
                              $65.5
                                           $42.5
                                  $34.6
                         $15.7
                        FY1987    FY1988    FY1989    FY1990   FY1991    FY1992

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from the Trust Fund, about $57 million or
14 percent of the total, was used by EPA
headquarters and regional offices for
administrative activities such as:

•      negotiating and overseeing
       cooperative agreements,

•      implementing programs on Indian
       lands, and

•      supporting regional and state offices.

How the Trust Fund works

To receive money from the Trust Fund, a
state must enter into a cooperative
agreement with the federal government to
spend the money for  its intended purpose.
Every state except Florida - which has its
own $160 million state cleanup fund - has a
cooperative agreement with EPA. The
money is divided among EPA regional
offices based on  a formula that uses state
data.  In fiscal year 1993, each state receives
a base allocation plus additional money
depending on: the number of confirmed
releases in the state; the number of notified
petroleum tanks;  the number of residents
relying on groundwater for drinking water,
and the number of cleanups initiated as a
percent of total confirmed releases.
how states use Trust Fund money

Stales use Trust Fund money to clean up
sites where no responsible party can be
found - about 1 percent of all cases -
and to oversee corrective action by a
responsible party. To date, states have
used about two-thirds of their Trust Fund
money for administration, oversight and
state-lead  enforcement activities, and
one-third for cleanups.

Estimated number of leaking USTs

Many USTs installed in the United States
in the 1950s and '60s were made of bare
steel or coated only with tar or lead
paint. Many of these tanks are corroded
and prone to leak.  Until EPA regulations
went into  effect, however, USTs were not
systematically monitored for leaks.  EPA
estimates that between 15 and 25 percent
of regulated tanks, or from 240,000 to
400,000 tanks, may be leaking or will
leak.  As of October 1, 1992, EPA,
states, and local agencies have confirmed
nearly 184,000 releases.

Cost of an average cleanup

Cleanup costs depend on a variety of
factors, including the extent of
contamination and state cleanup
standards.  The average cleanup is
estimated  to cost $100,000. If only a
small amount of soil needs to be
removed or treated,  cleanup costs could
run as low as $10,000 to $20,000.
Corrective action for leaks that affect
groundwater can cost more than $1
million.

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Estimated number of cleanup activities

From 1990 through September 1992,
states used Trust Fund and state money
to:

        Confirm more than 184,000
        releases,

•       Oversee or conduct 6,300
        emergency responses,

        Oversee or initiate 129,000
        cleanups, and

•       Oversee or complete 55,000
        cleanups.

Estimated number of USTs that have
been closed

As of September 1992, an estimated
484,000 tanks had been closed.
Leaking Underground Storage Tank Trust
Fund is one in a series of fact sheets about
underground storage tanks (USTs) and
leaking USTs. The series is designed to help
EPA, other federal officials, and state
authorities answer the most frequently asked
questions about USTs with consistent,
accurate information in language the
layperson can understand.  Keep the fact
sheets handy as a resource. This fact  sheet
addresses federal regulations.  You may need
to refer to applicable state or  local
regulations, as well.  For more information
on UST publications, call the
RCRAISuperfund Hotline at 800 424-9346.

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