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The Funding Sources for Remediation Contracting

Remediation contracts are financed through a variety of funds including the Petroleum Storage Tank Fund, the Leaking Underground Storage Tank Fund, Superfund Cooperative Agreements and the Hazardous and Solid Waste Remediation Fee Account.

Remediation contracts are financed through a variety of funds including, but not limited to the following:



The TCEQ also receives additional funding from bankruptcy settlements, U.S. Department of Defense, U.S. Environmental Protection Agency, and environmental justice.

Petroleum Storage Tank Remediation (PSTR) Fund

The Petroleum Storage Tank Remediation (PSTR) Fund is supported by a fee on gasoline and other fuels at bulk distribution facilities. The state uses this fund to reimburse responsible parties for the costs of corrective actions of releases from aboveground or underground storage tanks. Responsible parties must have registered their storage tanks as of December 31, 1995, and have their fees paid in order to be eligible to use this fund. Cost recovery on state funding for corrective action through the PSTR Fund can be pursued for the amount of the deductible and for any expenses in excess of $1 million.

Leaking Underground Storage Tank (LUST) Trust Fund

The Leaking Underground Storage Tank Trust Fund was created by the federal Resource Conservation and Recovery Act (RCRA) in 1986 and can be used by the state where releases of petroleum products from underground storage tanks have occurred and financially responsible parties cannot be identified or are not satisfactorily responsive. The PST State-Lead Remediation Program administers the Texas LUST Trust Fund money used directly for the TCEQ's PST program corrective action activities.

All costs of corrective action expenses financed through the LUST Trust Fund can be recovered, including legal and administrative. In many cases, federal funds are used at sites where the responsible parties are later determined to be financially unable to pay. No cost recovery occurs under those circumstances.

Superfund Cooperative Agreements

The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) of 1980 established the federal Superfund. EPA, through CERCLA-funded cooperative agreements, provides Superfund monies to the TCEQ to conduct responses to a release or potential release of a hazardous substance. Cleanup activities include pre-remedial (i.e. preliminary assessments and site inspections, referred to as PA/SI), remedial investigation/feasibility studies, remedial design, remedial action, removal, and enforcement activities. Cooperative agreements funding contractual activity are generally awarded on a site-specific basis with the exception of the PA/SI cooperative agreement. The Superfund Cleanup Program administers the site specific cooperative agreements and the Site Evaluation/Remediation/Restoration staff administers the PA/SI cooperative agreement.

Hazardous and Solid Waste Remediation Fee Account

The hazardous and solid waste remediation fee account (account 550) is funded through a fee on the sale of lead acid batteries and from a fee on the on-site management of hazardous and industrial solid waste. This fund pays for cleanups under the state Superfund program and also provides the state's 10 percent share of cleanup costs under the federal Superfund program. The agency recovers costs from the responsible parties for state Superfund cleanups funded through Account 550.