Underground Storage Tank Cleanup Fund - Letter of Commitment
The Letter of Commitment (LOC) is the mechanism used by the Fund to award or encumber funds for reimbursement of reimbursable costs. When a claim is activated from the priority list, the eligibility requirements are verified with the appropriate regulatory agency, and the LOC is issued. A claim is removed from the priority list once the LOC is issued.
Initial LOCs are issued in an amount adequate to cover the actual eligible costs incurred to date plus additional "seed" money to allow the cleanup to proceed on schedule. As the cleanup proceeds, the LOC is amended as necessary