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Drycleaner Environmental Response Trust Fund

​Pursuant to Public Act 101-400, effective July 1, 2020, the Illinois EPA serves as administrator of the Drycleaner Environmental Response Trust Fund ("the Fund"). As administrator, Illinois EPA is responsible for licensing drycleaning facilities in Illinois, administering the environmental liability coverage that drycleaning facilities can obtain under the Fund, and reviewing remedial action and insurance claims made against the Fund. Effective January 17, 2023, Illinois EPA's oversight of the Fund and related drycleaner operations are governed by regulations adopted by the Illinois Pollution Control Board under 35 Ill. Adm. Code 1501.

In response to requests by owners and operators of retail drycleaning facilities, the Fund was established by the Illinois General Assembly in 1997 to make financial resources available for the cleanup of releases from drycleaning machines and solvent storage units at drycleaning facilities. Since its inception, over 500 No Further Remediation Letters have been issued to drycleaner sites with assistance from the Fund.

Illinois EPA's administration of the Fund consists of three primary parts: 

Licensing: Licensing is mandatory for all retail drycleaning facilities in Illinois. The annual license fee ranges from $1,500 to $5,000, based upon the amount of drycleaning solvent purchased annually by a drycleaning facility. A chart reflecting the license fee schedule is included below. Licensed Drycleaner Roster

Remedial Action Reimbursement: Subject to available funding, the Fund reimburses drycleaning facilities' owners' and operators' approvable expenses for the cleanup of soil or groundwater contamination attributable to a release of drycleaning solvent.

Insurance: An owner or operator may purchase pollution insurance through the Illinois EPA at $750 for six month policy periods. The Fund provides up to $500,000 in environmental liability coverage to pay for the cleanup of soil and groundwater contamination resulting from a current or future spill or leak of drycleaning solvent at an insured facility. A deductible applies to each incident.

The Fund is financed by the drycleaning industry via the following revenue streams:

  • the annual drycleaner licensing fees; 
  • a solvent tax charged on each gallon of solvent purchased by drycleaners; 
  • insurance premiums paid by the drycleaners for environmental liability coverage; and, 
  • annual administrative fees paid by inactive drycleaning facilities that remain eligible for reimbursement from the Fund for remedial action costs.

In addition to providing reimbursement for remedial action costs and environmental liability coverage for drycleaners, Fund revenue supports Illinois EPA's administration of the Fund.

Quick Links and Resources

Annual Reports

Currently Licensed Drycleaners

Licensed Drycleaner Roster

Additional Information

35 Ill. Adm. Code Part 740: Site Remediation Program

35 Ill. Adm. Code Part 742: Tiered Approach to Corrective Action Objectives (TACO)

35 Ill. Adm. Code Part 1501: Drycleaner Environmental Response Trust Fund

Rulemaking: IL Pollution Control Board Case R2021-019

415 ILCS 135: Drycleaner Environmental Response Trust Fund Act

Illinois Department of Revenue: Drycleaner license tax and fee

Illinois State Treasurer: Drycleaner annual license fee

Illinois Department of Commerce and Economic Opportunity: Environmental Assistance Program for Dry Cleaners

Guides

Accessing the Drycleaner Environmental Response Trust Fund

U.S. EPA Managing Your Hazardous Waste: A Guide for Small Business (English)

U.S. EPA Managing Your Hazardous Waste: A Guide for Small Business (Korean)

Good Housekeeping Practices for Dry Cleaners

Frequently Asked Questions (FAQs)

Questions may also be submitted to EPA.DryCleanerFund@illinois.gov

Licensing FAQs

Is the license fee an annual fee or one-time only fee?

The license fee is an annual fee due by December 31.

What is the annual license fee period?

The annual license period is January 1 through December 31.

What is the amount of the annual license fee?

The annual license fee is determined by the annual volume of drycleaning solvent purchased in the year preceding the license. See the chart below for license fee amounts based on annual volume.

 

​License Fee ​Chlorine-Based Solvents ​Green Solvents ​Petroleum with Reclaiming ​Petroleum with NO Reclaiming
​$ 1,500 ​0-50 gallons ​0-50 gallons 0-250 gallons 0-500 gallons
​$ 2,250 >50-100 ​>50-100 ​>250-500 ​>500-1000
​$ 3,000 ​>100-150 ​>100-150 ​>500-750 ​>1000-1500
​$ 3,750 ​>150-200 ​>150-200 ​>750-1000 ​>1500-2000
​$ 4,500 ​>200-250 ​>200-250 ​>1000-1250 ​>2000-2500
​$ 5,000 ​>250 ​>250 ​>1250 ​>2500

*For a facility using both types of solvents, the license fee is based on combined usage of both types of solvents using a conversion factor.

When is the license fee due?

The annual license fee is due to the Illinois Department of Revenue (DOR) by December 31 of the year prior to the license taking effect. Operators that fail to pay the license fee when due are subject to penalties and cannot permissibly operate until the fee is paid in full.

Where do I pay my annual license fee?

The annual license fee is paid directly to the Illinois DOR using the Dry-Cleaning Operators' License Fee Payment Form DS-3. The Illinois DOR will mail a DS-3 Form to all known operators of active drycleaners in November of each year. The license fee and the payment Form DS-3 are to be submitted to the Illinois DOR at the address listed on the DS-3 Form. The annual license fee can also be paid via credit card directly through the Illinois State Treasurer's website.

Can I submit a personal check to the Department of Revenue for payment of my annual license fee?

No. The Illinois DOR requires that a cashier's check, money order, traveler's check, business check, credit card payment, or cash be used as payment of the annual license fee.

Where can I obtain a license application form?

The Drycleaner License Application can be downloaded from the Drycleaner Forms page.

Is participating in a compliance program required to obtain a drycleaner license from the Illinois EPA?

No. Effective July 2020, the DERT Fund Act was amended to remove the requirement that license drycleaners participate in a drycleaner compliance program approved by the Drycleaner Environmental Trust Fund Council.

What do I do with the copy of the DS-3 Form I received back from the Department of Revenue, or the credit card receipt, after I have paid my annual license fee?

Attach the certified copy of the DS-3 Form or your credit card receipt to your annual license application and send your license application to Illinois Environmental Protection Agency at the following address:

Illinois Environmental Protection Agency
Bureau of Land Drycleaner Fund #24
1021 North Grand Avenue East
Springfield, Illinois 62794-9276

I have not received my certified copy of my DS-3 Form from the Department of Revenue. Who can I contact to find out the status of my license fee payment and obtain a certified copy of my DS-3 Form?

You can contact the Illinois DOR Sales Tax Division by phone at 217-782-7517 or by mail at:

 

Illinois Department of Revenue
Sales Tax Division
P.O. Box 19034
Springfield, Illinois 62794-9034

Where do I go to make a credit card payment to pay my license fee?

Credit card payments can be paid directly through the Illinois State Treasurer's website.

What do I use to show a payment made by credit card?

A receipt can be printed from your computer at the time you make your payment through the Illinois State Treasurer's website. You can then submit this printed receipt with your licensing paperwork.

What are Green Solvents?

Green solvents are biodegradable and do not require remedial action if released into the environment. Approved Green Solvents are:

 

  • CO2
  • Propylene Glycol Ether DPnB
  • Green Earth

What is a reclaimer?

A reclaimer is a process by which solvent vapors are recaptured during the drycleaning process and are not emitted into the atmosphere.

How can I verify that a drycleaning facility is currently licensed?

You may check Illinois EPA's listing of licensed drycleaning facilities (below) or contact Illinois EPA at EPA.DryCleanerFund@illinois.gov to inquire about the license status for a specific facility.

What training is required to maintain my drycleaner license?

The Illinois Pollution Control Board regulations do not require any specific training or continuing education for an individual to maintain a drycleaner license.

Remedial Action Reimbursement FAQs

Remedial Action Reimbursement

The Fund provides reimbursement for eligible costs associated with site investigation and cleanup of soil and groundwater contamination discovered at eligible drycleaning facilities. 

Are there specific eligibility requirements that must be met in order to receive reimbursement from the Fund?

Yes. Applicants must also meet the applicable criteria under Subpart C or Subpart D of 35 Illinois Administrative Code 1501, including the following:

 

  • The release was discovered on or after July 1, 1997.
  • The claimant demonstrates that the source of the release is from the claimant's drycleaning facility.
  • At the time the release was discovered by the claimant, the claimant and the drycleaning facility were in compliance with Illinois EPA's reporting and technical operating requirements.
  • The claimant reported the release in a timely manner in accordance with State law.

Does a deductible apply to obtain reimbursement from the Fund?

Yes. The deductible amount varies depending on whether the drycleaning facility is active or inactive and the date the release was discovered. For facilities where the release was discovered before July 1, 2006, two deductibles apply for each drycleaning facility that requests reimbursement from the Fund: one for site investigations costs and another for cleanup costs. The deductible can be paid to environmental consultant of your choice. The Fund will subtract your deductible from an approvable reimbursement. 

Amount of Deductible

License Status at Time of Claim

Discovery of contamination

Legal Citation

$10,000

Active

After 2007

35 Ill. Adm. Code 1501.420(b)

$5,000 + $10,000 if submitted RAP by 2008

Active

1997-2006

35 Ill. Adm. Code 1501.320(a)(1)

$5,000 + $15,000

Active

1997-2006

35 Ill. Adm. Code 1501.320(a)(2)

$10,000 + $10,000 if submitted RAP by 2008

Inactive

1997-2006

35 Ill. Adm. Code 1501.320(b)(1)

$30,000

Inactive

1997-2006

35 Ill. Adm. Code 1501.320(b)(2)

What is the process for filing a claim?

The owner or operator of a drycleaning facility that has a release must provide notice of any release within 24 hours after the release. A notice of claim must be submitted in writing to the Agency as soon as reasonably possible after a notice of a release. The Claim Form can be downloaded from the Drycleaner Forms page. 

Where can I find a Reimbursement Request Form?

The Drycleaner Reimbursement Request Form can be downloaded from the Drycleaner Forms page.

Do I need to have Illinois EPA's pre-approval of all cleanup costs prior to moving ahead with the cleanup work?

Yes. All costs must be pre-approved PRIOR TO work being conducted.

How do I obtain Illinois EPA's pre-approval of cleanup costs?

The proposed workplan and associated costs should be sent to the Illinois EPA Site Remediation Program for review. Assuming the proposed work and associated costs are acceptable, Illinois EPA will issue an acknowledgment of pre-approval of the budget for the proposed work.

To what levels do I need to clean up my site?

The cleanup must be conducted under the Illinois EPA's Site Remediation Program. Cleanup levels will be determined in accordance with the Tiered Approach to Corrective Action Objectives (TACO), pursuant to 35 Ill. Adm. Code Part 742. Only those costs necessary to achieve cleanup levels determined in accordance with TACO are eligible for reimbursement from the Fund.

How are claims prioritized?

The Agency must prioritize approved claims for reimbursement from the Fund whenever it determines that there are not sufficient funds to pay all approved reimbursement claims. The Agency will post an approved reimbursement claims prioritization list on its website. If a list is not posted, claims are being reviewed and paid in the order in which they are received by the Agency, subject to the availability of funding. For more information, see 35 Ill. Adm. Code 1501.340 and 1501.440.

Where can I find information on the balance of the Drycleaner Environmental Response Trust Fund?

The Illinois State Comptroller maintains information related to fund balances. The funding balance search tool is available online and is updated every night.

Insurance FAQs

Insurance

The Fund will provide environmental liability coverage for eligible costs related to the cleanup of soil and groundwater contamination from releases that occur during the dates of insurance coverage. Maximum cleanup benefits are $500,000 with a $10,000 deductible. The annual insurance premium is $1,500.

Are there specific requirements my facility must meet in order to obtain insurance coverage from the Fund?

Yes. An owner or operator of a drycleaner may purchase environmental liability coverage from the DERT Fund if the following eligibility criteria are met:

 

  • a site investigation designed to identify soil and groundwater contamination resulting from the release of a drycleaning solvent has been completed for the drycleaning facility to be insured and the site investigation has been found adequate by the Fund;
  • the drycleaning facility is participating in and meets all drycleaning compliance program requirements adopted by the Illinois Pollution Control Board pursuant to Section 12 of the DERT Fund Act;
  • the drycleaning facility to be insured is licensed under and all fees due under that Subpart have been paid;
  • the owner or operator of the drycleaning facility to be insured provides proof to Illinois EPA that:
    • All drycleaning solvent wastes generated at the drycleaning facility are managed in accordance with applicable State waste management laws and rules;
    • There is no discharge of wastewater from drycleaning machines, or of drycleaning solvent from drycleaning operations, to a sanitary sewer or septic tank, to the surface, or in groundwater;
    • The facility has a containment dike or other containment structure around each machine, item of equipment, drycleaning area, and portable waste container in which any drycleaning solvent is utilized, that is capable of containing leaks, spills, or releases of drycleaning solvent from that machine, item, area, or container, including:
      • 100% of the drycleaning solvent in the largest tank or vessel;
      • 100% of the drycleaning solvent of each item of drycleaning equipment; and
      • 100% of the drycleaning solvent of the largest portable waste container or at least 10% of the total volume of the portable waste containers stored within the containment dike or structure, whichever is greater;
  • Those portions of diked floor surfaces at the facility on which a drycleaning solvent may leak, spill, or otherwise be released are sealed or otherwise impervious;
  • All drycleaning solvent is delivered to the facility by means of closed, direct-coupled delivery systems; and,
  • The owner or operator of the drycleaning facility to be insured has paid all insurance premiums

Where can I get an insurance application?

The Drycleaner Insurance Renewal Application can be downloaded from the Drycleaner Forms page.

 

In addition to this application, please also complete a Drycleaner Facility Information Form and Drycleaner Renewal Premium Payment Voucher to accompany the insurance premium payment. Both of these forms can be downloaded from the Drycleaner Forms page.

Do I have to do a site investigation prior to qualifying for insurance coverage from the Fund?

Yes. Any owner or operator wanting to obtain insurance coverage from the Fund for their drycleaner site must complete a site investigation prior to obtaining insurance coverage.

If I discontinue my drycleaning operations halfway through the year, can I receive an insurance premium refund?

No, there are no premium refunds.

If I sell my drycleaning business to another individual, can I transfer the insurance policy to the new operator?

The insurance policy may be transferred from the current named insured to another insurable party upon completion of an insurance policy transfer form that must be signed by the existing policyholder and the prospective policyholder. The claimant of insured drycleaners that are enrolled in SRP must conduct remedial action. 

Still have a question?

Contact EPA.DryCleanerFund@illinois.gov or (217) 785-7491.