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i' 02/18/2018 23:51 4785802 MR SPACE PAGE 8' State i t �sicliurces Control Board r.lnda s.Adams Divish n of Financial Agsietanee Secretary for 1001 1 SO Cet,SgCfanlento,Cali#'omia 95814 Environmental.Protection 1'.0.Box 944212,Sacmmento,California 44244-2120 Arnold h a er (800)813-FUND(3863) a FAX(9J6)34l-!806 a http://www.xviterbo*Mg,CB,gEyv/wates—issues/progmTns/ustef/ v Cr i January 28, 20109 ' To: Underground Storage Tank(UST) Cleanup Fund (Fund) Claimants and Interested Parties IMPORTANT NOTICE, UPDATE ON FUND ACTIVITIES& DELAY IN REIMURSEMENTS This is an update of our October 23, 2008, notice regarding the actions we are taking in response to a continuing imbalance between revenue and payment demand against the Fund. We regret having to alert you to this further bad news that affects the State Water Board and many UST owners and their consultants The downturn in the economy, combined with other. � factors, force us to take the actions des ribed below. I i Background ( I The Fund was established in 9989 by th Mate Legislature to benefit businesses, individuals, I and the environment by providing reimb rsement for unexpected and catastrophic expenses associated with the cleanup of leaking Petroleum USTs. In 1892, the Fund began paying claims; I a for corrective action costs incurred for cleanup of contamination. Since the inception of the 16-year old program through June 2008, the Fund has paid approximately 60,004 i reimbursement requests.totaling $2.4 billion clavering c4eanups at more than 9,000 sites. This has helped residents and businesses in Ived in the petroleum fuel Industry pay for pollution E I associated with leaks from their tanks. 7 he responsibility for the pollution has always been the tank pwners'or operators', but the Fund isis been able to relieve many (businesses of much of the financial consequences of those leaf i. � 3 The Fund's revenues are generated by a storage fee (currently 1.4 cents)for every gallon of ! petroleum products placed into USTs. The fee is collected quarterly from owners of active I USTs by the State Board of Equalization (BOE), The decline in revenue has steepened G somewhat due to the general slowdown Of the economy, with the BOE's latest projections E indicating that this year's revenue will be down $20 million from the pearl( of two years ago. Summary of Actions j i For the first time since its inception, theand Is facing a significant decline in revenue and a depleted cash reserve. Meanwhile the demand for funds is at an all time high. This has caused the program to take two primary actions: 1. Delay payments on active claims due to the lack of funds. We continue to receive payment requests faster than the can be'pald, and a large backlog has developed in all priority classes except Priority Class A. We have had to invoke the contingency contained in the Getter of Commitment(LOC)document which brakes payment subject i to availability of funds. In general,,payments will be made in order of priority class and date of receipt of the payment request, See below for details. California En vi nmental Protection agency Retycle14 Paper