Phasing Out the PSTR Fund

The changes to the reimbursement program are not a result of a decision made by the TCEQ to change the program, but in response to changes made to the state laws governing the Petroleum Storage Tank Remediation (PSTR) Fund through the enactment of House Bill 2587Exit TCEQ (74th Texas Legislature) passed in 1995. In addition to other changes to the storage tank regulatory program, House Bill 2587 and House Bill 2816 established the time frame that the PSTR Fund would be eliminated. Instead of a sudden termination to fund coverage, which would have drastically affected those covered by the PSTR Fund, a phased approach was used, which is as follows:

  • December 31, 1995 - for regulated tanks in existence prior to December 1, 1995, that are required to be registered with the TCEQ, if they were not registered by this date, they are no longer covered under the PSTR Fund, with some limited exceptions. §334.310 (a)(2) Exit TCEQ
  • December 23, 1998 - all releases discovered on or after this date are no longer covered under the PSTR Fund, with no exceptions. Those tank owners and operators who discovered their releases prior to this date can continue to access the PSTR Fund until the PSTR Fund is phased out. §334.301(b)Exit TCEQ
  • August 31, 2011 - all reimbursable corrective action must be completed by this date.
  • March 1, 2012 - all applications for reimbursement must be received by the TCEQ by this date.
  • September 1, 2012 - the PSTR Fund is phased out. The TCEQ is no longer authorized to expend the funds contained with the PSTR Fund.

It is true that effective December 23, 1998 tank owners and operators were required to utilize a financial mechanism other than the PSTR Fund to demonstrate financial responsibility to cleanup or correct environmental damage caused by a release from their storage tank system. Environmental liability insurance was one such approved mechanism. However, it is also true that the PSTR Fund will continue to provide coverage to those tank owners or operators for cleanup expenses for releases (discovered prior to December 23, 1998) being cleaned up until the fund is phased out on September 1, 2012.

You may contact us by email at PST Reimbursement Or you may contact us directly by telephone at (512) 239-2200


RELATED LINKS:

Adopted Changes to the Petroleum Storage Tank (PST) Rules