Legislation for a 10-Year Extension to the California UST Cleanup Fund Passes the Senate and Assembly

The California Underground Storage Tank (UST) Cleanup Fund (Fund) is currently scheduled to sunset on January 1, 2026, ending decades of dependable UST cleanup claims coverage for California UST owners. This means California UST owners will need to secure other financial assurance mechanisms; which in many cases will likely be private insurance. However, that may prove to be vastly unaffordable due to the age of tanks in the ground today.

Currently the state has over 13,000 UST facilities, most of which are owned and operated by small to medium sized businesses as well as cities and school districts. As energy demands continue changing, owners are facing decisions as to whether they should replace aging tank systems, or pull them and install electric vehicle charging stations instead. This is undoubtedly a weighty decision. Having affordable, dependable coverage in the case of a release can only help in that transition.

Fortunately, on Thursday, September 14—Assembly Bill 1115 passed after two non-partisan votes in both the California Assembly and Senate. This bill, sponsored by Assembly member Diane Papan, will extend the Fund until January 1, 2036, ensuring Californian UST owners and operators will continue to have a financial responsibility mechanism in place, satisfying both state and federal requirements for corrective action and third-party coverage. 

In addition to extending the Fund, Pinnacle EMS was instrumental in recommending language be added to ease the unreasonable burden of requiring a copy of the very first operating permit that has been a barrier to coverage for many UST owners and operators over the years.  Current Cleanup Fund policy requires documentation of the first permit issued for the tank, regardless of compliance history, in order to access Fund coverage. 

The language added in AB1115 will allow claimants to attest that permits were obtained—as finding a copy of what is sometimes a decades-old document is nearly impossible (unless a stellar records management system was already in place).

The exciting news is that if you were previously denied Fund coverage for a release, you will be able to resubmit your claim for eligibility. And UST owners and operators who never sought coverage for a release solely because they could not locate their original permit documentation, may now file a claim if they’re able to meet the new standard.

That is—if—the bill is signed.

We are strongly encouraging any Californian owner and operator who would like to see the Fund extended for another 10 years to send Governor Newsom a letter of support. Please reach out to us if you would like to use a support letter template encouraging the Governor to do what’s in the best interest of UST owners and operators, as well as all Californians, in his state. 

We’ll be keeping a close eye on AB1115, and will update this article as things progress.

UPDATE: On October 8th, 2023, Governor Newsom signed AB1115! If you were previously denied Fund coverage (or never filed a claim) for a release because you could not provide the original permit documentation, reach out to us so we can help you determine if you may be able to file or refile your claim to obtain Fund coverage! Email us at contact@pinnacleems.com.