Fund Eligibility and Reimbursement

Fund Eligibility Application Process

The first step in the reimbursement process is Submitting an application for Fund Eligibility to ust.fund@tn.gov.

Before submitting your application there are some things you may need to know. 

This is intended to be a short description of Financial Responsibility, Fund Eligibility, and Scaled Deductibles for the TN UST program. It is not designed or intended to be an all-encompassing treatise on this subject, nor a predictor designed to fit all conditions pertaining to these topics.

Fund Eligibility

Release occurrences will be fund eligible if (1) the Division has received notification registering the tank prior to the release occurrence, and (2) an Application for Fund Eligibility has been filed by the deadline (see below).

Application for Fund Eligibility Deadline – The UST Act establishes a deadline for tank owners, tank operators or petroleum site owners to file an Application for Fund Eligibility (CN-0943). If the application form is not received by the UST Division by the deadline established by law, the release WILL NOT BE FUND ELIGIBLE. 

The application must be received:

• Within 60 days of the discovery of a confirmed release  - or - 
• Within 90 days of the discovery of a suspected release which is subsequently confirmed in accordance with the regulatory requirements.

[NOTE: The 90-day deadline applies even if confirmation of a release does not occur within 90 days of the discovery of evidence of a suspected release. An application should be filed as soon as possible after a release is suspected, even if all the confirmation steps have not been taken.]

Scaled Deductibles

Effective June 15, 2021, all fund eligible releases will be entitled to reimbursement from the fund; however, an owner or operator’s compliance history will now determine the amount of the fund deductible. The deductible was lowered from $20,000 to $5,000 for sites in compliance with the UST Program rules, while those sites in noncompliance will incur a deductible of $10,000, $20,000, or $30,000 depending on the severity of the violations.

Violations that impact the deductible amount are identified in Rule 0400-18-01-.09(6)(b)7.  To determine the applicable deductible amount, a tank owner or operator or petroleum site owner is required to submit documentation demonstrating compliance. Division personnel will also conduct an inspection to confirm compliance.

Financial Responsibility

Federal regulations governing underground storage tanks require tank owners and/or operators to have financial responsibility for taking corrective action (cleaning up a release) and for third party claims resulting from a law suit(s) filed against a tank owner and/or operator for damages caused by the release of petroleum from an underground storage tank system.

Based on the 2008 Amendment to the UST Act (Public Chapter #794 of the Public Acts of 2008), on or after July 1, 2008, all regulated tanks which are registered with the Division of Underground Storage Tanks of the Tennessee Department of Environment and Conservation will be fund eligible for costs associated with releases which occur on or after July 1, 2008. The Tennessee Petroleum Underground Storage Tank Fund will serve as the financial assurance mechanism or as financial responsibility for all registered petroleum underground storage tanks which are regulated by Tennessee and not deferred from fund eligibility by regulation. Therefore, owners and/or operators of registered, regulated tanks (not partially excluded from fund eligibility requirements by rule) meet the federal financial responsibility requirements.

Fund Reimbursement 

Documents

Reimbursement Guidance Document 

• RGD-002 (Rev. April 15, 2014)
• RGD-002 (Effective 05/20/2022)

Task Cost Sheets (RGD-002)

• RGD-002
• RGD-002 - Attachement I (Effective 05/20/2022)

If you would like to be notified via email of changes to the reimbursement database and/or process, please email: ust.reimbursement@tn.gov. The Division of Underground Storage Tanks has developed a new process for reimbursement involving electronic reimbursement applications. This process consists of three parts: cost task descriptions, cost task spreadsheets, and a cost database. The cost task descriptions provide details of commonly performed tasks at contaminated UST sites (see Reimbursement Guidance Document - 002). The cost spreadsheets provide the breakdown of routine maximum cost for performing each task. The cost database is a Microsoft Access® program and requires you to use version Access® 2007 or higher. This process became effective January 4, 2010. No paper copies will be accepted after January 31, 2010. Updates and revisions to the database will occur periodically. The revised reimbursement documents are effective April 15, 2014. The Microsoft Office Access® program is a 32 bit version. If you require a 64 bit version please email : ust.reimbursement@tn.gov.

View the Access Cost Database files below

• 32-bit & 64-bit

New Mileage and Lodging Rates can be found on the Finance and Administration webpage under State Travel Regulation.