United States	Office of Underground
Environmental Protection	Storage Tanks	,
Agency	Washington, D.C. 20460	March 1987
SER& THE TRUST FUND FOR LEAKING
UNDERGROUND STORAGE TANKS
~ Questions and Answers
ORIGIN AND PURPOSE OF THE FUND
Q. Why is the Fund needed?
' * "t
A. Of the estimated 1.4 million petroleum
underground storage tanks (USTs) in the U.S.
that are subject to EPA regulation, between
50,000 and 200,000 may be leaking. The Fund
will help EPA and States protect human health
and the environment, especially drinking water
supplies, against these leaks under certain
circumstances.
Q. How is the Fund different from Superfund?
A. The main difference is the type of substance
that can be cleaned up. Superfund cleans up
releases of hazardous substances, pollutants,
or contaminants, which do not include
petroleum. The UST Trust Fund applies only to
petroleum releases from USTs. Additional
differences are that Trust Fund money will be
made available to States under cooperative
agreements and that EPA plans to distribute
funds quickly.
i .•
Q. Is the Trust Fund a Superfund or RCRA
amendment?
A. Although the Fund was established by the
Superfund Amendments and Reauthorization
Act of 1986 (SARA), this law amended Subtitle
I of the Resource Conservation and Recovery
Act (RCRA), which governs Federal regulation
of USTs.
Q. Does the Fund cover any substances other
than petroleum?
A. No. The Fund can be used for releases of
gasoline, diesel, and aviation fuels, but it
cannot be used for releases of the hazardous
substances subject to cleanup under
'Superfund.
Q. How is the Fund financed?
A. The new law levies an excise tax of 1/10 of a
cent per gallon on motor fuels, including
gasoline, diesel, and aviation fuels, to raise
$500 million over five years. Collection of this
tax began in January 1987.
USES OF THE FUND
Q. How will the Fund be used?
A. Starting in 1987, EPA and States that have
cooperative agreements with the Agency will be
able to use the Fund for a number of activities.
Especially important, the Fund will provide EPA
and States with money to:
•	Order UST owners or operators to clean up
leaks where EPA or a State determines that the
owner or operator will perform the necessary
cleanup actions properly and promptly:
•	Conduct cleanups that are necessary to protect
human health and the environment: and
•	Recover the costs of these enforcement
actions or cleanups.
Additional uses of the Fund are identified in the
fact sheet entitled "The Trust Fund for Leaking
Underground Storage Tanks."
EFFECTIVE DATE
Q. When will money be available for cleanups?
A. EPA will be able to respond to emergencies
using the Trust Fund as early as Spring 1987.
Money will be available to States through
cooperative agreements in late Spring 1987.
STATE PARTICIPATION
Q. How do States apply to use the Fund?

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A. To receive money from the Fund, a State must
demonstrate the capability to undertake cleanup
actions and enforcement activities and must
enter into a cooperative agreement with EPA
describing the State's intended uses of the
Fund. Negotiating cooperative agreements is a
top priority for EPA's Regional UST
Coordinators.
Q. Are States that use the Fund obligated to
share the costs?
A. After EPA publishes UST regulations for
technical standards and financial responsibility
requirements (currently scheduled for 1988),
, ,, States wilf be required to pay 10 percent of the
cleanup cost3 for which the Fund is used.
Q. Why are States considered key to the Trust
Fund program?
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A. The large number of petroleum tanks that may
be leaking makes it impossible for the Federal
Government to be directly involved in most site
cleanups. States will be better able to respond
quickly and effectively to leaks because they
are generally closer to the scene and know
more about local site conditions than Federal
. officials.
Q. Are all States expected to enter into
cooperative agreements? If a State does not,
what happens?
* ' 'vC • " ;i .
A. A State can gain access to the Trust Fund only
by entering into a cooperative,agreement with
EPA. EPA intends to encourage as many
States as possible to sign cooperative
agreements. If a State does not do so, EPA
can use the Trust Fund to order or undertake
cleanup of a release in the State under certain
circumstances. (See "The Fund Before and
After Regulations.")
Q. How will EPA review State cleanup programs
that are financed by the Fund?
A. EPA will enter into cooperative, agreements only
with States that are capable of conducting
effective cleanup and enforcement activities.
The new law requires limited oversight,
auditing, and reporting. Specific criteria for
State cieanup program reviews are currently
* being developed.
FUND DISTRIBUTION
Q. What is the mechanism for getting money to
the States?
A. The States can get access to the Fund'through
cooperative agreements. States then draw on
their accounts as cleanup or enforcement work
is undertaken.
Q. How will money be divided among States?
A. EPA is considering distribution otthe money
based on each State's gasoline consumption
and its readiness to proceed with cleanup or
enforcement activities. 3 A also intends to
make a minimum amou available to each
State with a cooperative 'greement, During
fiscal 1987, EPA will ke .> at small amount in
reserve to respond to s -iergencies in States
that have not signed cooperative'agreements,
and for other purposes.
Q. How can an Individual access the Fund?
Y * -	*	Y t yi.
A. Individuals will not have access to the Fund.
Only thf Federal Government and States with
cooperative Agreements can draw on the Fund,
as described above.
¦ 1	c.
CLEANUP CAPABILITIES AND PRIORITIES
Q. Will the Trust Fund solve the problem of
leaks from,underground storage tanks?
A. The primary purpose of the Trust .Fund is to fill
in gaps in funding,- making up what, tank owners
or operators and States fail to provide. The
Trust Fund will provide for many cleanups, but
" *' cleanups alone are not the answer. EPA and
the States must also take steps to prevent
future leaks and spills by ensuring that
corrosion protected tanks-are properly installed
and that leaks are detected before! they cause
*¦ damage. i	-hw
'	J..	-.v -V% £
Q. Which sites will be cleaned, up first?
A. The law that established the Trust Fund
requires that priority in using the.Trust, Fund be
given to cleanup and enforcement activities at
contaminated sites posing the greatest threat to
human health and the environment. Priority in
cleanups must also be given to sites wnere
there is no solvent owner or operator or he is
not likely to ctean up the contamination
properly and promptly. However, States will
have considerable discretion under.their
• . ..	• fieri
Questions and Answers - 2
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cooperative agreements in setting priorities
among sites.
EPA REGULATIONS
Q.Will EPA publish regulations under the Trust
Fund?
A. EPA has no plans for Trust Fund regulations.
EPA will issue financial responsibility regulations
for tank owners and operators as part of its
UST regulatory program. They are scheduled
to become effective in 1988. At that time, EPA
will also issue corrective action regulations,
State program approval regulations, and
standards for new and existing tanks, which will
address leak prevention and detection, overfill
protection, tank closure, and reporting
requirements.
FINANCIAL RESPONSIBILITY
Q. What does "financial responsibility" mean?
A. A tank owner or operator must have insurance
or other financial resources to pay for cleanup
actions and for bodily injury or property
damage caused by accidental leaks or spills
from USTs. Tank owners or operators must be
abls to show at any time that they are
sufficiently covered for such an accident.
Q. How much coverage must an owner or
operator demonstrate?
. r
A. The law requires minimum coverage of $1
million per release occurrence for tanks at
facilities that either produce, refine, or market
petroleum. EPA will also specify total amounts
of coverage needed when an owner or operator
. hes larger numbers of tanks. In addition, EPA
will identify the mechanisms one can use for
showing 'financial responsibility*, for example,
insurance, self-insurance, risk retention group
coverage, and guarantees.
Q. In what cases will Fund money be used once
the regulations become effective and the
owner or operator has "maintained evidence
of financial responsibility?"
A. Money from the Fund can be used after the
regulations become effective only when:
. T*'., '
e -Prompt action is necessary to protect human
health and the environment;
•	A solvent owner or operator cannot be found;
•	The owner or operator refuses to undertake a
cleanup; or
•	Cleanup costs exceed the required amount of
financial assurance, and Fund expenditures are
needed to assure an effective cleanup.
Ordinarily, the Fund cannot be used if the
owner or operator has failed to meet the
financial responsibility requirements and cannot
pay for the cleanup. An exception is made
when immediate ection is necessary in
response to an immediate arid substantial
danger to human health or the environment.
Other exceptions include: relocation of
residents, provision of alternative water
supplies, or assessment of the exter.t of human
exposure to the contaminants. In either case,
the responsible party is still liable to EPA or the
State for costs incurred and can expect that
cost recovery actions will be taken against him.
Q. Can Trust Fund money be used only If the
owner or operator goes bankrupt?
A. No. If the owner or operator hes maintained
coverage as required by law, the Fund may
pay for any additional cleanup costs that are
necessary to assure an effective corrective
action.
it t i ,
Q. What If Insurance and other allowable
mechanisms are not available?
A. EPA is authorized to suspend enforcement of
financial responsibility requirements temporarily
for a particular class of petroleum USTs or in a
State where financial assurance ie not generally
available. EPA can do that, however, only if
steps are being taken to develop coverage for
that class or State. The suspension may last
up to 180 days but can be extended if certain
statutory findings are made.
'«?»• /»•	r
COST RECOVERY
Q. Will owners or operators have to pay any
share of the cleanup costs back to the Fund?
A. Cost recovery is an important part of the new
law. Any time the Fund is used, EPA or the
State may take steps to recover the money
spent from the owner or operator.
Questions and Answers - 3
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J
How Can You Get More Information?
You can call the RCRA/Superfund Hotline (1-800-424-9346) or contact one of the EPA Regional UST
Program Managers listed below.
EPA Regional UST Program Managers
William Torrey
C JMfr Williams U,
Chet Mctsughlin
Eric Yunker
U.S. EPA, Region 1
U.S. EPA, Region 4
U.S. EPA, Region 7
U.S. EPA, Region 9
JFK Federal BkJg.
345 Courtland St., N.E.
RCRA Branch
215 Fremont St.
Mailcode: HPU-1
Mailcode: 4WM-GP
726 Minnesota Ave.
Mailcode: T-2-7
Boston, MA 02203-2211
Atlanta, GA 30365
Kansas City, KS 66101
San Francisco, CA 94105
617-573-9604
404-347-3866
913-236-2852
415-974-8160
FTS 833-1604
FTS 257-3866
FTS 757-2852
FTS 454-8160
Thomas Taccone
Gerald Phillips
Debbie Ehlert
Joan Cabreza
U.S. EPA, Region 2
U.S. EPA, Region 5
U.S. EPA, Region 8
U.S. EPA, Region 10
Hazardous Waste
230 S. Dearborn St.
999 18th Street
1200 Sixth Ave.
Programs Branch
Mailcode: 5HR>JCK-13
Mailcode: 8-HWM-RM
Mailcode: WD-139
26 Federal Plaza
Chicago, IL 60604
Denver, CO 80202-2405
Seattle. WA 98101
Mailcode: 2AWM-HWPB
312-886-6159
303-293-1489
206-442-0344
New York, NY 10278
FTS 886-6159
FTS 564-1489
FTS 399-0344
212-264-1369



FTS 264-1369
William Rhea



U.S. EPA, Region 6


Wayne Naylor
1445 Ross Avenue


U.S. EPA, Region 3
Mailcode: 6H-A


841 Chestnut Building
Dallas, TX 75202-2733


Mailcode: 3HW31
214-655-6755


Philadelphia, PA 19107
FTS 255-6755


215-597-7354
FTS 597-7354
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