Indiana Excess Liability Trust Fund (ELTF) - Petroleum Cleanup Reimbursement Guide
How Indiana's ELTF works for UST petroleum cleanup reimbursement. Eligibility, deductibles, coverage limits, claims process, and common pitfalls.
Overview
The Excess Liability Trust Fund (ELTF) is a dedicated Indiana state trust fund that reimburses underground storage tank (UST) owners and operators for costs associated with investigating and cleaning up petroleum releases from regulated USTs. It also serves as the federally mandated financial responsibility mechanism under 40 CFR 280 and provides a source of money for third-party indemnification.
The ELTF is managed by IDEM’s Office of Land Quality in accordance with 328 Indiana Administrative Code 1. The statutory basis is IC 13-23-7.
If you do LUST work in Indiana, the ELTF is how your client gets reimbursed. Understanding the eligibility requirements, deadlines, and coverage reduction triggers is essential - missing a deadline or having unregistered tanks can cost your client tens of thousands of dollars in lost reimbursement.
Eligibility Requirements
To be eligible for ELTF reimbursement, the UST owner or operator must meet all of the following:
The release must be from a regulated UST containing petroleum. The ELTF does not cover releases from unregulated tanks, aboveground storage tanks (for investigation/remediation purposes), or non-petroleum hazardous substances.
The facility must be in substantial compliance with the ELTF Rule (328 IAC 1). This means the owner/operator has met registration, fee payment, and financial responsibility requirements.
The owner or operator must have a Certificate of Financial Responsibility (COFR) demonstrating they have an approved financial responsibility mechanism under 329 IAC 9-8.
All tanks on-site must be properly registered before the release occurs. If unregistered tanks exist at the time of a release, all past-due annual registration fees must be paid, plus an additional $1,000 penalty per delinquent tank, before ELTF eligibility can be established.
The owner or operator must complete and submit State Form 55459 (Excess Liability Trust Fund Eligibility Application).
Coverage and Deductibles
The ELTF provides coverage of up to $2 million per location for eligible investigation and remediation costs, after the per-site deductible has been met.
The deductible is $15,000 per site. This was simplified in the 2016 statutory amendments (Public Law 96-2016) - the previous deductible structure was more complex and varied based on tank wall characteristics and overflow containment systems.
Reimbursable costs include investigation, remediation, and monitoring activities performed in accordance with the R2 (Risk-based Closure Guide) and applicable program guidance. IDEM publishes reimbursement rates for personnel and common remediation activities. Personnel rates are adjusted annually on June 1 based on the product price index percentage from December of the prior year.
Claims Process
Filing a Claim
All claims must be submitted to IDEM within 90 days of receiving no further action (NFA) status. This is a hard deadline - late claims may be denied.
Resubmittals of previously disallowed costs must be submitted within 12 months of receiving NFA status.
IDEM provides real-time information on claim status through the ELTF Claim Status Search, available through the IDEM storage tanks website.
Coverage Reduction Triggers
The ELTF has several deadlines that trigger automatic coverage reductions if missed. These reductions are cumulative and can substantially reduce the amount your client receives.
Initial Site Characterization (ISC) deadline. If IDEM does not receive an ISC within 60 days of the release being reported, coverage is reduced by 5%. An additional 5% reduction applies for every 6 months that passes until the ISC is received.
Third-party buyer investigation deadline. When a third party (potential buyer) performs an environmental investigation at an ELTF-eligible site, the buyer must meet specific deadlines. If not met, ELTF eligibility is reduced by 5%, plus an additional 5% for every 6 months of delay.
Unregistered tanks at time of release. All tanks on-site must be registered before a release occurs. Unregistered tanks trigger past-due fees plus $1,000 per delinquent tank. For sites with multiple unregistered tanks, penalties can consume a significant portion of the reimbursement.
Outstanding fees. Owners/operators must pay all outstanding fees for any USTs that are not properly closed under 329 IAC 9-6-1 and are operable or in temporary closure.
ELTF Funding Sources
The ELTF funding structure was revised by Public Law 96-2016 (effective July 1, 2016). Under the current structure, the ELTF is funded through five statutory sources rather than the previous system of fees and penalties. Annual UST registration fees ($90 per regulated petroleum tank) now go to the Underground Petroleum Storage Tank Trust Fund, which is used for corrective actions that are ineligible for ELTF reimbursement.
The ELTF’s administrative expenses are capped at 11% of fund income from the preceding state fiscal year (IC 13-23-7-1(b)).
An independent actuarial study of the ELTF’s future obligations and fiscal sustainability is required every five years (per Senate Enrolled Act 255, 2016).
Additional Reimbursement Programs
Small Owner Tank Removal Account (SOTRA)
Reimbursement for UST removal costs is available through SOTRA, separate from the ELTF remediation reimbursement.
Tank Decommissioning and Replacement
The ELTF provides reimbursement for 50% of costs associated with decommissioning or replacing USTs that meet the criteria under IC 13-23-9-1.7.
Reopening Closed Claims
The ELTF can reopen eligibility and funding for a release previously granted NFA status if the owner or IDEM subsequently decides to permanently decommission the site as a petroleum facility and undertake investigation and remediation of residual contamination from its former petroleum use. IDEM may require information about the planned future use of the site before reopening eligibility.
Comparison to Ohio’s FRAC Fund
| Indiana ELTF | Ohio Petroleum FRAC | |
|---|---|---|
| Administering agency | IDEM Office of Land Quality | Ohio BUSTR (State Fire Marshal) |
| Coverage limit | $2 million per location | $1 million per occurrence |
| Deductible | $15,000 flat | Varies by tank type and compliance |
| Claims deadline | 90 days after NFA | Within 1 year of corrective action costs |
| Coverage reduction | 5% per missed deadline, cumulative | Varies by program |
| Statutory authority | IC 13-23-7 | ORC 3737.91 |
Common Mistakes
Not registering all tanks before a release occurs. This is the most expensive mistake. If even one tank on-site is unregistered at the time of a release, ELTF eligibility requires paying all back fees plus $1,000 per unregistered tank. Verify registration status proactively.
Missing the 60-day ISC deadline. The 5% coverage reduction starts at day 61 and keeps growing every 6 months. On a $500,000 cleanup, a 6-month delay in the ISC costs $25,000 in lost reimbursement. Get the initial characterization started immediately.
Missing the 90-day claims filing deadline after NFA. This deadline runs from the date NFA status is granted. If you are still compiling documentation when the 90-day window closes, you may lose the ability to file. Start preparing the claim before NFA is issued.
Assuming ELTF covers all petroleum cleanup costs. The ELTF only covers releases from regulated USTs. Releases from unregulated tanks, ASTs, or non-petroleum substances are not eligible. If a site has both UST and non-UST contamination, only the UST-related costs qualify.
Not tracking reimbursement rates. IDEM adjusts personnel rates annually on June 1. Using outdated rates in your cost documentation will result in disallowed costs. Check the current rate schedule before submitting claims.
Key Forms and Resources
ELTF Eligibility Application: State Form 55459 (submit electronically as PDF to IDEM). ELTF Rule: 328 IAC 1 (applicable to work conducted on or after August 26, 2018). ELTF Claim Status Search: Available through IDEM’s storage tanks website. UST Registration: Notification for Underground Storage Tanks form, submitted to IDEM UST Branch.
Source
328 IAC 1: Excess Liability Trust Fund. IC 13-23-7: Underground Petroleum Storage Tank Excess Liability Fund. IC 13-23-9-1.7: Tank decommissioning and replacement reimbursement. Public Law 96-2016: ELTF statutory amendments. IDEM Storage Tanks - Financial Responsibility page (in.gov/idem/tanks).