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Underground Storage Tank Branch

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).

Small Owner Tank Removal Account (SOTRA)

The SOTRA was established to assist qualified "small" owners with the cost of routine removal of UST systems. Unlike the Financial Responsibility Account (FRA) and the Petroleum Storage Tank Account (PSTA), the costs of tank removal may be eligible for reimbursement from SOTRA even if corrective action is not required by the cabinet. This account does not provide reimbursement of corrective action costs.

Any applicant seeking reimbursement from SOTRA must be approved by the cabinet prior to the removal of a regulated petroleum UST system. File a completed SOTRA Application for Assistance a minimum of 45 days prior to the anticipated date of tank removal. The application must be approved by the cabinet in writing prior to the removal in order to be eligible for reimbursement. There are no deductibles associated with the SOTRA program. Eligible "small owners" must meet the criteria in accordance with 401 KAR 42:330 Section 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.