Trust Fund

In 1989, North Carolina established the Non-commercial Trust Fund to reimburse "tank owners" and "property owners" for investigating and cleaning up contamination associated with their residential heating oil tanks. The Fund was established to encourage proper closure of residential heating oil tanks and to cleanup any associated contamination. The Fund is paid for by a very small percentage of the North Carolina gasoline tax. It is "free money" and is not a loan requiring repayment by the homeowner.

Note the large holes in the end of the tank.

As with any government program, it can be a bit confusing and cumbersome for an inexperienced person to fill out the paperwork properly and to deal effectively with the regulating government agency. Practical Environmental Solutions, P.C. (PES) specializes in working with the Underground Storage Tank (UST) Section and the Trust Fund. Kirk McDonald, Professional Geologist and President of PES, has had over 14 years working as an UST Section employee. We know how to work effectively with the Trust Fund program.

Qualifying for the Trust Fund:
You can qualify for Trust Fund reimbursement either as a "property owner" or as a "tank owner."

Qualifying as a "Property Owner": It is easy to qualify as a "property owner," but by qualifying this way, there will be a $5000 Trust Fund deductible and then a 10% co-payment for all costs after the first $5000. Because residential heating oil cleanups can cost as much a $20,000 or more, this could result in an out-of-pocket, non-reimbursable cost between $6000 and $7000.

For example, if at the end of your project, your Trust Fund claim itemized $20,000 worth of costs, the Trust Fund would cut $5000 as the deductible and then reduce the remaining amount by 10% as your co-payment cost; In this example, the Trust Fund would reimburse you $13,500.

For obvious reasons, this is not the preferred way to qualify for the Fund. However, even qualifying as a "property owner," allows you to receive up to approximately $13,500 to assist you in bringing your property into compliance with State and Federal Laws. This is a huge benefit even if it cost you several thousand dollars out-of-pocket. (Remember: the Trust Fund does not cover tank removal costs (~$1900) or additional consultant costs above the established Trust Fund Rates.)

If you cannot qualify as a tank owner as described below, you may consider trying to find the legal "tank owner" (Tank Responsibility Page) and have them either grant you Power of Attorney to access the Trust Fund's $0 deductible or identify them to the State of North Carolina's UST Section. The State should require the "tank owner" (previous property owner) to conduct the required assessment and cleanup, relieving you of this task.

Qualifying as a "Tank Owner": A person qualifying as a "tank owner" or as Power of Attorney acting for a "tank owner" can access the Trust Fund with a $0 deductible. This means that all necessary and reasonable actions will be reimbursed at established Trust Fund rates. Qualifying as the "tank owner" means that you have no deductible and no co-payment. (Remember: the Trust Fund does not cover tank removal costs (~$1900) or additional consultant costs above the established Trust Fund Rates.)

Because tank "ownership" is defined by the North Carolina Statues and by Federal law, ownership and responsibility is not necessarily "common sense."

For tanks in use on or after November 8, 1984, the "tank owner" is any and all property owners(responsible and liable for the tank, contamination, and related impacts or damages). By policy, the State pursues the current property owner to conduct the tank removal and any required contamination clean up. However, the State can hold any previous property owner responsible.
For tanks not in use on or after November 8, 1984, the "tank owner" is the last person that used the tank. Please see our Responsibility and Liability page.

Items Needed to Qualify

To qualify you for the Trust Fund, Practical Environmental Solutions needs to help you establish the following items:

1.) Document that a petroleum release has occurred from the underground storage tank.

Our statistics document that 88% of all underground tanks have leaked. The State considers a "leak" to include contamination caused from "over fills" and/or drips at the fill pipe from years of fuel deliveries. (Note: This fund will not cover any release from above ground storage tanks.)

2.) Document that you are the "tank owner" or the "property owner."

Proving that you own the property is fairly easy but qualifying as the "tank owner" according to the State's definition may be more involved than it seems. This is one example of where PES's experience can work to your benefit.

3.) Document that you have complied with all applicable State rules and regulations.

Missing a contamination reporting requirement or other similar technicality could jeopardize your Trust Fund eligibility. It is very important that PES helps you take all the right steps within each required time frame.

How will you qualify for the Trust Fund?

1) You should be eligible to access the Trust Fund with a $0 deductible:

If we can document that you used the underground tank to heat your house.

If we can document that the underground tank was used on or after November 8, 1984 and that the tank is still buried on the property.

If we can get a "limited power of attorney" from a previous property owner who was the last person to use the tank (last used prior to November 8, 1984). (To save costs, PES can complete all of the Power of Attorney documents.)

2) You can access the Trust Fund with a $5000 deductible and 10% co-payment of all additional costs:

If we can not establish any of the above criteria and you own the property.

If the underground tank is no longer present, but we can establish that it is reasonable that the petroleum contamination came from a previously existing underground tank.

This last condition can be very difficult to prove to the State's Trust Fund Branch. This is why on our Property Values, Tanks and Contamination page we devalue a property when a tank has been previously removed but without a thorough contamination assessment.

Fund Longevity:

The Trust Fund is not likely to be discontinued. However, as with any government program, the details including the timing of reimbursement is not guaranteed. Don't wait for longer reimbursement wait times. But, absolutely don't' miss your opportunity to be reimbursed by this fund.

What should you do?

If you have a heating oil tank located at your property or suspect that a tank may be on your property because it was built before 1975, we suggest that you contact Practical Environmental Solutions to help you qualify for Trust Fund monies as soon as possible before Trust Fund coverage lessens or before projects are only reimbursed only as money becomes available to the Trust Fund.

Historically, costs and prices have increased but Trust Fund reimbursement rates have decreased.

Note: PES cannot guarantee your Trust Fund eligibility status. The State of North Carolina UST Section makes the final decision regarding Trust Fund eligibility. The information in this document is based on current State regulations and policies, which are subject to change. This document provides general information and is not intended to be a contract or agreement between PES and any party, nor is this a guarantee of actual cost.