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Dry Cleaner Environmental Response Fund (DERF)

The DERF Program closed to new applicants on August 30, 2008.

The Dry Cleaner Environmental Response Fund (DERF) reimburses the investigation and cleanup costs of contamination caused by dry cleaning chemical discharges.

Basics

The Dry Cleaner Environmental Response Fund Program (DERP) is a reimbursement program for dry cleaners for the investigation and cleanup costs of dry cleaning facilities.

Background

This program was created in the 1997-1999 state budget, effective Oct. 14, 1997. This program was developed by the dry cleaning industry to cover eligible costs associated with responding to, investigating and cleaning up contamination caused by releases of dry cleaning solvents. The program is funded by a license fee for dry cleaners and a solvent fee on the sale of dry cleaning solvents. Two department bureaus, Remediation & Redevelopment and Community Financial Assistance, work in partnership to administer the program to dry cleaners.

  • Chapter 292.65 [exit DNR] - the statute establishing the Dry Cleaner Environmental Response Fund; and
  • NR 169 [PDF exit DNR] - the administrative rule governing how the Dry Cleaner Environmental Response Fund program is implemented.

Bidding

Bidding information
  • Bid Requirements (RR-750) [PDF] -- helps dry cleaners understand the bidding requirements found in Chapter NR169.
  • Dry Cleaner Environmental Response Fund (DERF) Site Investigation Bid Cover Sheets Instructions (RR-717) [PDF] -- provides instructions for completing Form 4400-233.
  • DERF Site Investigation Bid Forms and Bid Summary (Form 4400-233) [ZIP] -- required to document all consultant selection process for site investigations that were initiated after April 19, 2004 (when the form became available for use). This form summarizes the minimum of three proposals received as part of the program's bidding requirements, and provides a consistent format for submitting costs in the categories of drilling, analytical, consulting and miscellaneous costs. Included in the file are the instructions (RR-717) for filling out this form.
  • Remedial Action Bid Checklist (RR-756) [PDF] -- a tool for environmental consultants to use as they prepare bids for remedial actions undertaken for the Dry Cleaner Environmental Response Program. NR 169 requires that each remedial action bid document contain specific information before the bid can be considered complete. Each bid must be complete before it can be compared to competing bids in the bid selection process. Bidders should use the checklist to determine the completeness of their bid before they submit the bid to the dry cleaner owner/operator and the DNR.
  • DERF Interim and Remedial Bid Proposal Summary (Form 4400-212) [PDF] -- required to document all consultant selection process for interim and remedial actions that were initialized on or after February 1, 2000. It summarizes the minimum three proposals received as part of the program's bidding requirements.
Consultant selection

Milestones

Interim and immediate action requests must be submitted within 120 days of the completed action.

Site investigation requests

  • Minimum request is $15,000.
  • Limited to one request per fiscal year.
  • Maximum of three requests accompanied by an approved change order.
  • Final request may be submitted anytime along with the site investigation report and remedial action options report.

Remedial action requests

  • Limited to two requests per fiscal year.
  • Final request must be submitted within 120 days of completing the remedial action.

Reimbursement

Reimbursement forms

Beginning on July 1, 2012, all reimbursement claims and scope change requests (change orders) must be submitted using the DERF Linking Spreadsheet (Form 4400-214D).

Case study of a site investigation (SI) claim:

For assistance, contact the DERF auditor listed on the Help tab.

Change orders

As of July 1, 2012, all reimbursement claims and scope change requests (change orders) must be submitted with the DERF Linking Spreadsheet (Form 4400-214D). The form, instructions for using the spreadsheet and a case study of a claim are provided in the Reimbursement tab. Visit the Contact tab for DNR staff contact information.

Change order instructions

Changes needed to the original contract for site investigation or remedial action work require approval by the DNR project manager unless costs will be less than $3,000 or five percent of the total contract. All changes require prior approval from the DNR project manager and notification to the owner/operator.

  • A change order is needed when either:
    • changes are needed to the scope of work tasks that result in increased costs; or
    • costs need to be shifted between consultant costs and sub-contractor costs.
  • All change orders must be accompanied by:

Fund stats

Program statistics

  • Reimbursement Requests Pending [PDF]: This spreadsheet shows all reimbursement applications that have been audited and are pending payment, or that have been submitted or not yet audited, for costs incurred since October 14, 1997. (updated 03/04/2020)
  • Current Cost Payments [PDF]: This spreadsheet shows all eligible cost that were reimbursed if they were incurred since October 14, 1997. (updated 03/04/2020)
  • Payments by Site [PDF]: This spreadsheet shows all payments for current and past DERF reimbursements by site location.(updated 03/04/2020)
  • Program Revenues [PDF]: This information illustrates all funds collected per fiscal year in each of the categories since the DERF program started. There is also a graphic showing the percentage of each category with respect to the total amount collected. (updated 03/04/2020)
  • DERF Projected Revenue Decline The Dry Cleaner Environmental Response Fund is funded from two revenue sources: a license fee paid by owners of dry cleaning facilities equal to 2.8% of dry cleaning gross receipts; and a dry cleaning solvent fee paid by persons who sell dry cleaning solvents to dry cleaners equal to $5.00 per gallon of perchloroethylene or $0.75 per gallon for other dry cleaning products. A continued decline in revenue from both sources has resulted in a backlog of pending DERF claims waiting to be paid. This information illustrates anticipated annual revenue through the program sunset date of June 30, 2032 with projected decline rates of 9% and 12%. (new 03/04/2020)
  • Status of DERF Eligible Sites: This chart shows the current status of the 230 sites where a Potential Claim Notification was submitted by the August 30, 2008 deadline. (new 03/04/2020)
  • Dry Cleaner Environmental Response Fund (DERF) Highlights (RR-882) [PDF]

Laws

Grant related statutes and administrative codes

Contact

Contact information
For Drycleaner Environmental Response Fund questions:
Sandy Chancellor
Grant Manager
For information on dry cleaning contamination, contact:
Jennifer Borski
Remediation & Redevelopment Program
For more information about the licensing requirements for drycleaners, visit the Department of Revenue website [exit DNR].
If you have questions about your dry cleaning facility or a cleanup you are involved with, you should contact your regional Remediation and Redevelopment Program project manager by searching the DNR Staff Directory.