VRA Accelerated Virginia Petroleum Storage Tanks Fund Payment Program
Because of the significant increases in the monthly demand (claims) on the Virginia Petroleum Storage Tank Fund it is often necessary for the Virginia Department of Environmental Quality to delay payment of approved claims until revenue is collected to write those checks.
Fund claimants who would prefer to receive a reimbursement check at the time that their claim is approved by DEQ should consider taking advantage of the VRA Accelerated VPSTF Payment Program. The Accelerated VPSTF Payment program is now administered by the DEQ. Claims enrolled in VRA's Accelerated VPSTF Payment Program are paid by VRA as soon as DEQ reviews and approves the claim. However, VRA does charge claimants for participation in the program, so the amount the claimant receives from VRA will be slightly less than the amount that was approved by the DEQ.
In exchange for the accelerated payment, the claimant must "assign" (give) to VRA all rights to any DEQ payments related to that claim. The charge for participation in this program is based on VRA's carrying costs. VRA's payment to the claimant is usually made in two increments, the first of which is made immediately after DEQ has reviewed and approved the claim. The amount of the first payment is determined by subtracting VRA's projected carrying costs from the DEQ recommended reimbursement amount. Typically this first payment will be 90% or more of the reimbursement.
The second payment to the claimant occurs after the DEQ has paid VRA for the assigned claim. At this point, VRA will calculate the actual carrying costs it incurred and send a check to cover any difference owed the claimant.
Since VRA's initial cost projections use conservative estimates, this second payment may be an additional 2% to 4%. VRA will not charge claimants any additional fees if VRA's actual costs are higher than projected.
Many claimants will find this program attractive because it provides them with a significant portion of their approved reimbursement much sooner than they would otherwise receive payment from DEQ. However, it is important to realize that claimants who participate in the VRA accelerated VPSTF Payment Program will not receive the full amount of reimbursement approved by DEQ. VRA will always deduct some amount to cover the expenses of the program.
Claimants should not expect to receive any payment from DEQ for a claim enrolled in the VRA's Accelerated VPSTF Payment Program. Claimants should also be aware that DEQ's claim decisions can change. If, upon review, DEQ reduces an approved reimbursement amount, then the difference between the new approval and any amount already paid to the claimant or to VRA will be recovered from the claimant, not from VRA.
More Information
For more information on the Virginia Resources Authority and its Accelerated VPSTF Payment Program, visit the links listed below.
The information contained on this page was copied from the VRA web site, and can be found in its original context at http://www.vra.state.va.us/finance/pst.htm
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