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Energy and Environment Cabinet

Division of Waste Management
Underground Storage Tank Branch

PSTEAF Claims and Payment

Financial Responsibility Account (FRA)
The FRA provides coverage to meet the federally mandated financial responsibility requirement. This account provides up to $1 million for eligible corrective action and up to $1 million for third-party liability. The eligibility requirements for participation in the FRA can be found in 401 KAR 42:250 Section 4 (1).

Petroleum Storage Tank Account (PSTA)
The PSTA is intended for owners and operators who are ineligible for coverage under the FRA. This account provides up to $1 million for eligible corrective action costs. The PSTA does not provide coverage to meet the third-party liability requirements. The eligibility requirements for participation in the PSTA can be found in 401 KAR 42:250 Section 4 (2).

Entry Levels
Entry levels may apply if you have a release that requires cleanup.  These are based upon the total number of tanks you own or operate.  One to five tanks have a $500 entry level; six to 10 tanks have a $2,500 entry level and 11 or more tanks have a $12,500 entry level. In some cases the entry level will be waived for facilities requiring corrective action that had their tank removal reimbursed under the Small Owner Tank Removal Account (SOTRA) and for those facilities where a site check was requested after Sept. 13, 2006, and laboratory analysis do not support the need for corrective action.

Reimbursable Costs
Regulations stipulate maximum levels of reimbursement for personnel and certain work tasks. Contractors eligible for reimbursement of corrective action work should be familiar with expenses reimbursable by the UST Branch.

 

Reimbursement may also depend upon the type of directive issued. Directives issued by the UST Branch may be one of the following: 

  • Directives with a Pre-established Fixed Cost -- The amount listed on the worksheet is the amount that will be reimbursed once the worksheet is submitted and the report is deemed technically complete.
  • Directives without a Pre-established Fixed Cost -- The amount that will be reimbursed is based on the work performed and the required backup documentation in accordance with the instruction sheet for that specific worksheet.