The Kentucky General Assembly created the Kentucky Petroleum Storage Tank Environmental Assurance Fund (KPSTEAF or Fund) and the KPSTEAF Commission in April 1990 to assist UST owners and operators with the costs of corrective action. Current statutes which establish and govern the Fund are located at KRS 224 Subchapter 60. The Fund consists of three accounts for reimbursement. The Financial Responsibility Account (FRA) reimburses owners and operators of USTs who are in compliance with the regulatory requirements. The Petroleum Storage Tank Account (PSTA) reimburses owners and operators of USTs who are not eligible for reimbursement from the FRA. The PSTA ranks claims and disburses funds according to the financial ability of the petroleum UST owner or operator to perform corrective action and the extent of damage caused by a release into the environment. The Small Owners Tank Removal Account (SOTRA) reimburses small UST owners for the cost of removal of USTs required to be removed or upgraded prior to December 22, 1998. Funding for KPSTEAF is derived from fees levied on UST owners and gasoline dealers and from money collected from penalty assessments. Until April 1996, the KPSTEAF Commission, which consisted of eleven members appointed by the governor, administered the Fund. However, on April 18, 1996, Governor Paul E. Patton abolished the KPSTEAF Commission and created the Office of Petroleum Storage Tank Enviromental Assurance Fund(OPSTEAF). OPSTEAF is headed by an executive director who now performs the duties of the former KPSTEAF Commission.

Since its inception in 1991, there have been at least fifteen different sets of regulations with which owners and operators of USTs in Kentucky have had to struggle in obtaining reimbursement from the Fund. Kentucky law suggests that the regulations in place at the time the release from the UST occurs are the governing regulations. Therefore, it is extremely important for owners and operators of USTs to know the history of Fund regulations. The Petroleum Publishing Group has published a timeline of these regulations, the Perkins Law Group UST Regulatory Timeline, which traces the history of petroleum storage regulation by both federal and state governments. Click here for more information on the Timeline and how to order it. Current Fund regulations, are found at 415 KAR Chapter 1. These regulations, the real meat of the Fund, provide the criteria for the FRA,PSTA, and SOTRA claims procedure, the ranking system, and contractor costs and certification.

You can access the following statutory and regulatory sections via a link to the website maintained by the Kentucky Legislative Research Commission. Just click on the citation for the statute or regulation you want to view.

Statute Section Titles

• 115 Definitions for KRS 224.60-120 to 224.60-150

• 120 Financial responsibility of petroleum storage tank owner or operator

• 125 Petroleum Storage Tank Environmental Assurance Fund Commission

• 130 Duties of commission

• 137 Standards for corrective action for release from petroleum storage tank -- Administrative regulations

• 140 Petroleum storage tank environmental assurance fund

• 142 Registration for participation in fund -- Time deadlines

• 145 Petroleum environmental assurance fee

• 150 Funding for administration of underground storage tank program

• 160 Severability

Regulation Section Titles

• 050 Definitions

• 060 Financial Responsibility Account

• 070 Petroleum Storage Tank Account

• 080 Claims Procedures

• 090 Ranking System

• 100 Third Party Claims

• 110 Contractor Costs

• 114 Contractor Certification

• 120 Hearings

• 125 Discovery Procedure

• 130 Small Operators Tank Removal Account