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Underground‑storage‑tank cleanup fund reports backlog, rising applications and proposals to shift allocation to site‑cleanup account

3209938 · May 7, 2025
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Summary

State staff told the board on May 6 that the Underground Storage Tank (UST) Cleanup Fund has steady claims activity, a large closed‑site reimbursement record of over $1 billion in the last five years and a rising number of single‑wall tank applications. Staff proposed moving the entire

State Water Board staff presented the 2025 status update for the Underground Storage Tank (UST) Cleanup Fund on May 6, detailing claims activity, reimbursements, companion grant programs and program priorities including tribal engagement, sea‑level rise screening and a proposed shift in allocation of the “three‑mills” petroleum fee.

Adrian Perez (Cleanup Fund manager) and program managers reported that the fund reimbursed more than $1 billion to claimants in the last five years, with roughly 21,000 total claims received historically and about 3,362 active claims at the time of the briefing. The program reported a 20% year‑over‑year decrease in reimbursement requests as older priority claims run into documentation issues, but staff said the trend is expected to reverse as single‑wall tank removals and related applications increase.

Staff highlighted companion programs: an orphan site cleanup fund (approximately 30 sites approved for next fiscal year; $10.8 million committed in FY24–25), a Reimbursement and Upgrade/Replacement Support (RUS) grant/loan program with record awards for single‑wall tank assistance (75 projects, $43.2 million committed in FY24–25), and Site Cleanup Subaccount Program (SCAP) commitments (14 projects, $17.3M committed FY24–25). The expedited claims account and emergency/abandoned/recalcitrant account were described as effective tools to close older, complex sites and to cover costs when responsible parties are non‑compliant.

Staff noted a backlog in SCAP: roughly 430 applicants and 145 projects requested by regional boards remaining unfunded; to address that need staff recommended directing more of the state’s “three‑mills” allocation to SCAP. The current governor’s budget proposal for 2025‑26 maintained an 85/15 split in recent years for SCAP/RUS (or vice versa) but staff proposed a shift for 2026‑27 to allocate 100% of three‑mills to SCAP in order to fund unfunded site cleanup projects. Staff said RUS maintains an unusually large cash balance going into FY25‑26 — driven by loan repayments and 2024–25 allocations — and can pause receiving three‑mills for a year while SCAP absorbs urgent needs.

Managers also described programmatic priorities: tribal engagement (task force to improve consultation and outreach), a sea‑level‑rise and groundwater‑rise vulnerability screening tool that will use GeoTracker and EnviroStor to identify closed and open sites at risk (beta testing in 2026, rollout anticipated 2027), and continued use of stalled‑case teams and contractor support to resolve long‑open cases.

Ending: Board members thanked staff; a number of board members expressed interest in more public dashboards and data integration between GeoTracker and fiscal systems to make fund allocations and reimbursements more transparent. Staff said they are exploring programming and funding options for improved data sharing and public reporting.