Fund Eligibility and Reimbursement

Fund Eligibility Application Process

The first step in the reimbursement process is submitting an application, form CN-0943, for Petroleum Fund (Fund) Eligibility to this email address, ust.fund@tn.gov by the applicable deadline (see below).

There are several items to consider before submitting an application. The following is a general outline of Financial Responsibility and Fund Eligibility requirements.  For the complete list of requirements, see the Tennessee Petroleum Underground Storage Tank Act, Tenn. Code Ann. §§ 68-215-101 to -204 (UST Act) and the rules promulgated thereunder, Tenn. Comp. R. & Regs. 0400-18-01-.01 to -.17. The UST Act and applicable rules can be found on the Acts, Rules and Polices Webpage.

Fund Eligibility

In order for the tank owner, tank operator, or petroleum stite owner to receive reimbursment from the fund, both of the following conditions must be met:

1. The Division has received notification registering the tank prior to the release occurrences, and 
   2. An Application for Fund Eligibility has been filed by the applicable deadline (see below)

Application for Fund Eligibility Deadlines

The UST Act establishes deadlines for tank owners, tank operators, and petroleum site owners to file an Application for Fund Eligibility (CN-0943). If the application is not received by the Division by the deadlines established under law, the release WILL NOT BE FUND ELIGIBLE. Fund ineligibility means tank owners, tank operators, and petroleum site owners are financially responsible for the costs of release response, hazard mitigation, investigation, subsequent cleanup, etc.

The application must be received:

• Within 60 days of a release which was identified in any manner other than the process for confirmation of a suspected release stated in the rules, or
• Within 90 days of the discovery of evidence of a suspected release which is subsequently confirmed in accordance with the rules.

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 are not complete.

Deductibles

All fund eligible releases that occur on or after April 9, 2026, will be entitled to reimbursement from the fund with a maximum deductible of $5,000. The deductible may be decreased by up to 100%, so that there is no deductible if certain criteria have been met.  See Rule 0400-18-01-.09(6)(d). Additionally, for fund eligible releases that occur on or after April 9, 2026, costs for site checks required in accordance with Rule 0400-18-01-.05(3)(b) will be covered in full at the reasonable rate schedule and are not subject to the deductible. 

APPLICATION FOR RELEASES THAT OCCURRED ON OR AFTER JUNE 15, 2026 AND BEFORE APRIL 9, 2026

APPLICATION FOR RELEASES THAT OCCURRED ON OR AFTER APRIL 9, 2026

Operational Compliance Inspection & Records Review

The Division may conduct an operational compliance inspection, perform a records review, and request records be submitted as part of the fund application review process. The Division must ensure that all fund applications meet the requirements of the UST Act and rules promulgated thereunder to determine fund eligibility.

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.

The Division accepts several forms of financial assurance.  However, the Tennessee Petroleum Underground Storage Tank Fund typical serves as the financial assurance mechanism of choice for registered petroleum underground storage tanks which are regulated by Tennessee and not deferred from fund eligibility by regulation.

• Guidelines for Financial Assurance Mechanisms

Note: The instrument language is provided here as a convenience. Please consult with your legal counsel and the TDEC Division of Financial Assurance & Business Process Improvement before submitting a financial instrument.

 

Fund Reimbursement 

Documents

Reimbursement Guidance Document 

• RGD-002 (Effective 05/20/2022)

Task Cost Sheets (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 May 20, 2022. 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.