Illinois' Underground Storage Tank Fund Guide

Illinois' Underground Storage Tank Fund Guide The Underground Storage Tank (UST) Fund helps tank owners and operators pay for cleaning up leaks from petroleum USTs. By doing so, the UST Fund also satisfies the federal financial assurance requirements for all Illinois tank owners and operators. Since its inception in 1989, the UST Fund has paid more than $800 million. Illinois generates money for the UST Fund through a $0.003 per-gallon motor fuel tax and an $0.008 per-gallon environmental impact fee, both of which are due to expire in 2030. Two state agencies share administration of the UST Fund. The Illinois Office of the State Fire Marshal (OSFM) determines if an UST owner or operator is eligible for payment from the UST Fund and determines the deductible amount to be paid by the owner or operator. The Illinois Environmental Protection Agency (Illinois EPA) reviews budgets and payment requests for corrective action to determine if the costs are consistent with the associated technical plan. The Illinois EPA also prepares and processes vouchers for payment claims. Two other state agencies are involved in the financial aspect of the UST Fund; the Illinois Department of Revenue collects the motor fuel tax and environmental impact fee, and the Office of the Comptroller issues the checks once Illinois EPA has prepared and processed a voucher for payment claims. A leaking UST site during remediation Three sets of laws and regulations affect the payment of costs related to a tank release: Sections 22.18, 22.18a, 22.18b, and 22.18c  of the Environmental Protection Act (Act) and  35 Illinois Administrative Code (35 Ill. Adm. Code) 731 referred to as Old Law or Part 731, apply to owners and operators of USTs that contain petroleum who reported a release before September 13, 1993, and have not elected to proceed under Title XVI of the Act. Part 731 also applies to releases of regulated non-petroleum substances, regardless of when they were reported. Title XVI of the Act  as effective prior to June 24, 2002, and  35 Ill. Adm. Code 732  referred to as Part 732, apply to tank owners and operators of USTs who reported a release of petroleum on or after September 13, 1993, and before June 24, 2002, or who elected to proceed under Title XVI of the Act before June 24, 2002. Title XVI of the Act as amended by   Public Act 92-0554  and   35 Ill. Adm. Code 734 ,referred to as Part 734, apply to tank owners and operators of USTs who reported a release of petroleum on or after June 24, 2002, or who elected to proceed under Title XVI of the Act on or after June 24, 2002. A leaking UST excavation The payment request process differs according to whether the leaking UST site is subject to Part 731, Part 732, or Part 734. What are the eligibility requirements for accessing the UST Fund? Costs incurred for corrective action must result from the confirmed UST release of: Fuel as defined in Section 1.19 of the  Motor Fuel Tax Law Aviation fuel Heating oil Kerosene Used oil that has been refined from crude oil used in a motor vehicle, as defined in Section 1.3 of the Motor Fuel Tax Law. The UST owner or operator cannot be the United States Government. The owner or operator cannot be exempt from the per-gallon tax as established by the amended Motor Fuel Tax Law. Those exempt include airports with more than 300,000 operations per year located in a city of more than 1,000,000 and rail carriers registered pursuant to Section 18c-7201 of the Illinois Vehicle Code. The owner or operator must have registered the tank with the OSFM and have paid all required fees. The UST must not have been taken out of service prior to January 1, 1974. The UST must not be classified as a farm or residential heating oil tank.