California UST Cleanup Fund Expanded Coverage Includes Dry Cleaners

ROSEVILLE, Calif., April 7, 2015 /PRNewswire/ -- According to studies by EPA, an estimated 75 percent of the approximately 30,000 dry cleaners currently in operation have contamination. Cleanup and remediation of those chemicals can range from tens of thousands of dollars to several million dollars, averaging about $500,000 per cleanup.

Photo - http://photos.prnewswire.com/prnh/20150406/196791

Photo - http://photos.prnewswire.com/prnh/20150406/196792 

However, a recently passed bill in the California Senate may ease the clean-up burden on property owners. Senate Bill (SB) 445 (Stats 2014, Ch. 547) contains several key elements that made significant changes to the Underground Storage Tank (UST) Cleanup Fund program. One of the changes is the establishment of the Site Cleanup Subaccount (SCSA), which allows for investigation and clean-up of contaminated properties regardless of the source of contamination, i.e. dry cleaning operations, etc. The addition of "other" sources of contamination is significant because it means any assessment, monitoring and cleanup for contaminants can now be eligible for the UST cleanup fund, particularly when no viable responsible parties have been identified.

Under the Barry Keene Underground Storage Tank Cleanup Trust Fund act of 1989, every owner of a UST is required to pay a storage fee for each gallon of petroleum placed in a tank.  The fund is administered by the California State Water Resources Control Board (State Water Board), and collected by the Board of Equalization.  Per SB 445, the per-gallon fee was increased from fourteen mil ($0.014) to two cents ($0.02) on January 1, 2015. A portion of the increase, $.003, will help small businesses comply with UST regulatory requirements and fund the SCSA.

"The addition of the SCSA is significant for property owners that have come into ownership of a property, for whatever reason, where contamination has been discovered," said John Wharff, vice president and western regional manager at PM Environmental. "The SCSA provides funding options that were not previously available to allow owners to refinance, transfer the property, or potentially redevelop for a higher end-use." 

In 2007, California Air Resources Board (ARB) approved banning the use of perchloroethylene (Perc), a potential carcinogen, from dry cleaning and water-repelling operations. The ban has been implemented in a phased approach and will be completed by January 1, 2023. California is the first state to enact such a ban.

The fund will assist a vast number of small businesses and individuals by offering reimbursement for expenses associated with the cleanup of leaking hazardous chemicals. It also supplies money to cleanup abandoned sites that pose a threat to human safety or health as well as the environment, as a result of a release.

"Many times during our initial or Phase I assessments of commercial properties, former dry cleaners become the barrier to any new activity for the property," said Wharff.  "With regulatory screening levels more stringent than ever for volatile dry cleaning solvents, any assistance for property owners would ultimately benefit all of the community stakeholders by preventing a worst-case outcome of an abandoned or foreclosed property."

PM Environmental has worked on hundreds of dry cleaning projects and managed major industrial remediation projects throughout the United States.  The company often works with dry cleaner tenants and property owners to assess and, if necessary, implement institutional controls and remediation techniques to abate acute hazards efficiently. PM's professionals also monitor operations to ensure business owners are utilizing the best management practices.

About PM Environmental

PM Environmental, Inc. was incorporated in 1992 and is a full-service environmental consulting firm with offices throughout the United States

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SOURCE PM Environmental