California’s UST Cleanup Fund 

Wondering how to maximize your ability to receive reimbursement for eligible costs? Below are some of the frequently asked questions surrounding the California UST Cleanup Fund.

UST Owners and Operators looking to mitigate the risk and financial impacts from a leaking underground storage tank have a viable and reliable financial responsibility mechanism in the California UST Cleanup Fund.

The Barry Keene Underground Storage Tank (UST) Cleanup Fund Act of 1989 was created by the California legislature and has reimbursed over a billion dollars in eligible cleanup costs, helping fuel retailers reduce the risk to business, incentivized compliance, provided guidance to assist with cost control, and ultimately protected the public from orphaned releases by efficient and proactive program administration.


Eligibility

Who is eligible for the CA UST Cleanup Fund?

Those who are eligible to seek reimbursement include any current (or prior) UST owners and operators who have had an unauthorized release of petroleum and were required to undertake corrective actions as directed by a regulatory agency. Even historic releases where cleanup has long been completed may be eligible for reimbursement, and if you’ve received a denial previously, there may still be options available to you.

I have a release - how do I begin the process of filing for eligibility?

Eligibility is determined after a comprehensive review of a claimant’s compliance with applicable state UST permitting requirements, payment of UST storage fees, compliance with regulatory agency cleanup orders, and compliance with the federal financial responsibility requirements. Pinnacle’s experts can help you navigate the complexities of the UST Cleanup Fund Claim Application process and employ expertise that may even allow for approval of claims that have previously been denied.

When does coverage end for the UST Cleanup Fund?

If you’ve had a confirmed release, you have until 1/1/35 to submit an Eligibility Application for claim coverage from the Cleanup Fund. However, keep in mind that the Fund will stop accepting reimbursement requests (where you submit costs incurred cleaning up that release) on 7/1/35. The Fund will continue to process and pay reimbursement requests received by that date until all funds are expended. In addition, the Fund will cease collecting fees that provide the revenue to the Fund, by 1/1/36.

If the Fund does cease to be a viable financial responsibility mechanism on 12/31/34, what are my options to satisfy that requirement and keep my tanks in compliance?

Please refer to the State Water Resources Control Board’s, Petroleum Underground Storage Tank, Financial Responsibility Guide, dated July 1995 found here


General Fund Questions 

What is the maximum available funding?

The maximum available coverage from the Fund varies depending upon the date the claim was filed ranging from $1M - $1.5M. Pinnacle’s team can help you determine the maximum coverage available for your release.

What costs are covered by the CA UST Cleanup Fund?

The Fund reimburses corrective action costs paid or incurred for cleanup work performed after January 1, 1988, that was the result of an unauthorized release of petroleum from a UST that caused contamination of soil and/or groundwater, with the requirement that they meet the definition of “reasonable and necessary.”

As the leader in submissions to the California UST Fund, Pinnacle’s experience with historical cost guidelines and allowable costs allows us to help our clients understand the fund’s application of standard of “reasonable and necessary.”

How quickly will I be reimbursed?

The answer to this varies. The Fund allocates money using a priority system based upon the size of the company. Typically, claimants can receive a claim eligibility approval within 60 days of submission. Once a letter of commitment is issued by the fund, claimants can expect anywhere from 90 days to 2 years before each reimbursement request is paid. In light of this, it's important to have an advocate like Pinnacle EMS on your team to monitor and follow up on your claims and reimbursement requests, ensuring you receive your money as quickly as possible.

Regarding the requirement to remove single-walled UST’s and piping by 12/31/25, are there grant and loan programs to help me remove and/or replace them?

There are funds available through the RUST (Replacing, Removing, or Upgrading Underground Storage Tanks) program.

For more information:

Funds will continue to be paid out for these grants/loans until funding runs out for approved applications received by 1/1/26. Please note that although funds are available to remove or replace these types of tanks and piping through RUST, should a release be discovered, coverage will need to be sought from the UST Cleanup Fund for associated costs to cleanup.


Paying for Reimbursement Services 

Does the CA UST Fund offer reimbursement for claims management and preparation?

The Fund does offer coverage to mitigate the financial burden of preparing claims and submitting requests for reimbursement. However, there are limits on both the type of costs covered and the total amount covered, so it pays to have a reimbursement specialist with an efficient process—reducing the amount billed to you—and experience getting these services reimbursed to reduce the impact on your bottom line.

If claim preparation services are already included in my remediation contract, why would I pay Pinnacle to do the same thing that I have already paid for?

While the filing and management of reimbursement requests (RRs) may be included in your contract with your remediation consultant, many find that working with an independent reimbursement specialist provides better results. Remediation consultants are great at ensuring the environmental liability associated with leaking UST contamination is addressed, but a focus on cleanup may mean the ability to seek reimbursement for activities comes second. Because of this, many claimants have discussed removing reimbursement from their agreement with environmental consultants, while other environmental consultants have decided to employee Pinnacle to provide our advantages to their clients.

As the nationwide experts on LUST Fund claims management, we bring tactics, knowledge, and strategy that is invaluable to the reimbursement process. Our independence allows Pinnacle to come alongside your environmental consultant to ensure your invoices are structured in a way that maximizes your reimbursement potential.

Can I file reimbursement requests (RRs) myself?

Similar to filing federal income taxes with the IRS, individuals or entities are welcome to file for reimbursement from the CA UST Cleanup Fund, and historically many claimants did just that.

Companies of great size and means dedicated internal resources to the preparation of leaking UST claims, but found that in addition to being able to save costs, by trusting a third party reimbursement specialist with experience helping many claimants of all sizes in all areas, they were able to benefit from the collective experience and expertise and ultimately much higher reimbursement levels.

Claimants seeking to file their own claims are cautioned to be prepared that the process will likely take longer than expected and money otherwise eligible to be reimbursed may be left on the table. Pinnacle’s reimbursement experts know all the detailed rules, regulations and requirements to help maximize your recovery of cleanup costs, and has a singular focus on reimbursement results that ultimately reduces the impact of cleanup on your bottom line.

How much do professional claim preparation services cost?

Less than you think…

By working with the industry leader with an established and scalable process, you can be assured your claims will be filed in a cost effective and efficient manner. Our hourly fees are a small fraction of the money we’ll help you get back.

Professional claim preparation fees are reimbursed by the CA UST Fund, making the real cost of our services negligible.

For more information on how we can remove barriers between you and your money, please contact us.

Want to maximize your reimbursement of eligible costs if you have a release?

While the UST Cleanup Fund provides an efficient and robust cost mitigation mechanism for owners and operators to reduce the bottom-line impact of leaking UST remediation, you may not be recovering all that you are entitled to if you’re not trusting your reimbursement to the experts in Leaking UST reimbursement.

Let us show you the difference today.