Insurance Program Highlights
The insurance program will provide financial assistance for the cleanup of soil and groundwater contamination that occurs and is discovered after the effective date of the policy.
Maximum cleanup benefits will be $500,000 with a $10,000 deductible.
The annual premium for the first year (July 1, 1999 through June 30, 2000) will be $250 per drycleaning facility and will increase $125 per facility annually for each of the next three years. After four years, the premiums will be actuarially established based on various risk factors. The actuarially established premium was $1,400, effective July 1, 2003 through December 31, 2009. Effective January 1, 2010, the current actuarially based premium is $1,100.
Insurance Program Eligibility Requirements
An owner or operator may purchase insurance coverage provided that the drycleaning facility to be insured meets the following conditions:
1. The drycleaning facility must be participating in and meet all the requirements of a drycleaning compliance program which has been approved by the Illinois Drycleaner Environmental Response Trust Fund Council. Please contact us for a listing of approved compliance programs.

For active drycleaning facilities which apply for insurance coverage on or prior to June 30, 2006, the applicant must have a site investigation completed by June 30, 2006. For drycleaning facilities which apply for insurance coverage after June 30, 2006, the application must have a site investigation completed at the time of application.

The site investigation is comprised of two phases: a Phase I Environmental Site Assessment which shall determine recognized environmental conditions or chemical contaminants of concern, including drycleaning solvents that may be associated with the site; and a Focused Phase II Environmental Site Assessment which shall investigate only those environmental conditions and contaminants of concern specifically associated with drycleaning solvents that may have contaminated soil and groundwater.

  a. Allow sites that have been in operation since July 1, 1999 to forego intrusive testing provided they meet the following criteria:
i. The facility was built on virgin soil, i.e., property has not been exposed to any drycleaning solvents or any other potential contaminants.
ii. The facility was in full compliance with all federal and state operating regulations and had the appropriate secondary containment in place on the date the facility began drycleaning operations.
    iii. The facility must complete a Phase I site assessment. If the Phase I indicates concerns of potential contamination, intrusive testing would be required.
b. Exempt from intrusive testing a drycleaning facility that had previously discovered contamination, remediated the contamination and received an NFR letter from IEPA, provided that the owner/operator of the drycleaning facility can provide the following:
i. Documentation that the facility operated in compliance with Federal and State regulations and best management practices since the receipt of the NFR letter from IEPA.
ii. Documentation that indicates the level of contamination, if any, remaining at the facility at the time the NFR letter was issued.
iii. Document that the drycleaning facility installed pollution prevention equipment such as secondary containment pans around the drycleaning machine and waste storage areas since the date the NFR letter was issued.
3. Requirements that must be met for chlorine-based (perc) drycleaning units:
a. If there is a transfer machine or a combination system installed at this site on or after 9/23/93, the site cannot be insured until this drycleaning unit is removed.
b. If there is a dry-to-dry unit installed before 9/23/93, and the operator purchases less than 140 gallons of perc solvent annually, no air pollution control requirements are needed. If the facility uses 140 gallons of perc solvent annually, then the unit must have a refrigerated condenser OR a carbon absorber that was installed before 9/23/93, before the facility can be insured.
c. If there is a dry-to-dry machine installed on or after 9/23/93, and the operator purchases 2,100 gallons or less of perc annually, the unit is required to have a refrigerated condenser. If the operator purchases more than 2,100 gallons annually, then the unit will be required to have a refrigerated condenser and supplemental carbon absorber.
d. If the unit uses more than 30 gallons of perc monthly, the facility must have an Illinois EPA air operating permit before the Fund can insure the facility.
e. Solvent must be delivered by means of a closed loop, direct-coupled delivery and vapor recovery system.
4. Requirements that must be met for petroleum-based drycleaning units:
a. The vendor delivering petroleum solvent must have a Department of Transportation (DOT) approved spill control system on the truck; not limited to excess flow valves, automatic shut off or other safety measures.
b. The facility must have an Illinois EPA air operating permit.
c. If an active underground storage tank, which contains petroleum-based drycleaning solvent, does not have secondary containment, then the underground storage tank system (which includes the tank and product delivery system) must meet the upgrade requirements in accordance with state UST regulations and monitor the tank and piping using a state approved leak detection method.
5. Requirements for all facilities:
a. Containment devices or diked areas shall exist around all:
drycleaning machines
hazardous waste containers
wastewater containers
solvent storage tanks or containers
used filter containers
i.The containment device for the drycleaning machine must be capable of holding a capacity of 110 percent of the largest tank (or vessel) in the drycleaning machine.
ii. The containment dike or other containment structure around each item of equipment or drycleaning area in which drycleaning solvent is utilized must be capable of containing 100 percent of the drycleaning solvent capacity of each item of equipment or area for any leak, spill, or release of drycleaning solvent from that item. One exception is noted for underground and aboveground double-walled storage tanks (USTs and ASTs) and piping. Double-walled ASTs, USTs and double-walled piping are not required to have 100% volume containment if they are monitoring the interstitial space and the containment completely surrounds and seals the vessels.
iii. The containment device for portable hazardous waste containers, wastewater containers and used filter containers must be capable of holding 100 percent capacity of the largest portable container, wastewater container or used filter container, or at least 10 percent of the total volume of the portable containers stored within the containment device, whichever is greater.
iv. The containment device for portable hazardous waste containers, wastewater containers and used filter containers should be located within the drycleaning facility. If the portable hazardous waste container is not located within the drycleaning facility, then the portable hazardous waste container and the containment device must be located in a structure designed to prevent unauthorized access and prevent exposure to natural elements and provide safety to human health and the environment.
v. Piping from an AST or UST to a drycleaning machine will be considered part of the transport mechanism and not subject to the secondary containment requirement if the following conditions are met:
1) it is a suction system;
2) the suction pump is located at the drycleaning machine; and
3) the piping is sloped back to the AST or UST so that it will drain back into the AST or UST.
b. Floor surface in the contained or diked area shall be impervious to solvent leaks, spills or other releases.
c. All drycleaning solvent wastes generated shall be managed in accordance with applicable state waste management laws and rules:
i. Requirements for Conditionally Exempt Small Quantity Generators (CESQGs)
Identify all hazardous wastes that you generate.
Hire a licensed special waste hauler to transport your hazardous wastes to a facility permitted to receive hazardous waste.
Do not accumulate more than 1,000 kilograms (2,200 pounds) of hazardous wastes on your property at any time.
ii. Requirements for Small Quantity Generators (SQGs)
Accumulate hazardous wastes in containers (such as 16-gallon drums or tanks).
Do not store hazardous wastes on your property more than 180 days unless it will be transported greater than 200 miles from your business, in which case you may store the wastes for up to 270 days.
Do not accumulate more than 6,000 kilograms (13,200 pounds) of hazardous waste on your property at any time.
Register with the Illinois Environmental Protection Agency (IPEA) using a Notification of Hazardous Waste Activity form.
Make sure all your hazardous wastes are packaged and labeled correctly prior to transport. Although you are responsible for packaging and labeling your wastes, ask your transporter for assistance with this requirement.
Hire a licensed special waste hauler to transport your hazardous wastes to a permitted hazardous waste facility using the Illinois Uniform Waste Manifest or the manifest of the state you are shipping the wastes to or sign a tolling agreement with a recycling facility.
Establish safety guidelines and emergency response procedures. Your facility must be equipped with the following:
1. An internal communication or alarm system capable of providing immediate emergency instructions to all personnel.
2. A telephone or two-way radio capable for use in requesting emergency assistance from local police and fire departments.
3. Portable fire extinguishers, fire control devices, spill control materials and decontamination supplies.
4. Adequate water volume and pressure to supply water hoses, foam-producing equipment and automatic sprinklers.
  iii. Requirements for Large Quantity Generators (LQGs) are extensive and can be found at 35 Ill. Administrative Code 722, Standards Applicable to Generators of Hazardous Waste. A summary booklet of the requirements is available from IEPA's Office of Small Business at 1-888-372-1996.
  iv. Requirements for Containers Used to Accumulate Hazardous Waste
  Label each container with the words "HAZARDOUS WASTE" and mark each container with the date the container becomes full.
Use a container made of or lined with a material that is compatible with the hazardous waste stored in it.
Keep all containers of hazardous waste closed during storage except when adding or removing waste.
Do not open, handle, or store containers in a way that might rupture them, cause them to leak, or otherwise fail.
Inspect areas where containers are stored at least weekly. Look for leaks and deterioration caused by corrosion or other factors.
Maintain the containers in good condition. If a container leaks, put the hazardous waste in another container, or contain it in some other way that complies with U.S. Environmental Protection Agency regulations.
Do not mix incompatible hazardous wastes or materials unless precautions are taken to prevent potential hazards.
d. No discharge of wastewater from drycleaning machines/solvents to a sanitary sewer, septic tank, surface or groundwater is allowed.
e. Operator shall conduct and maintain a log of weekly drycleaning unit/equipment inspections and areas that contain drycleaning solvents or waste of solvents for facilities using 140 gallons or more of chlorine-based solvent annually or any amount of petroleum-based solvent annually. For facilities that use less than 140 gallons of chlorine-based solvent annually, bi-weekly logs are to be maintained.
f. Operator shall maintain a log of all solvent purchases.
g. Operator shall maintain a log of all drycleaning system repairs. Log shall identify:
drycleaning machine
date repair is needed or machine is taken out of operation
date parts ordered (if needed)
date machine repaired
date machine placed back in operation
  To obtain an Insurance Application Form, call 1-800-765-4041 or download a form from this website.

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