NatLUST will provide a "Direct Pay" option in states where it is not barred by regulation or law. On the assignment form, RP's will be able to instruct NatLUST to send the Initial and Residual payment checks to their environmental consultant.

SPECIFIC BENEFITS OF DIRECT PAY

Direct Pay offers significant advantages, including:

1. For RP's, Direct Pay eliminates need to tie up working capital in reimbursable expenses. Working capital will be provided by the consultant (once RP pays the deductible). Accordingly, the consultant will be financially motivated to complete the task phase in a timely manner.
2. For RP's, Direct Pay shifts the risk that all or part of a claim is denied to the consultant, who is typically better versed in understanding the state's LUST fund program.
3. For RP's, Direct Pay potentially offers accounting advantages as RP's may no longer need to make annual reserves for reimbursable expenses that will be funded through NatLUST.
4. For environmental consultants, Direct Pay speeds cash flow as the check comes directly to them immediately following claim approval.
5. For environmental consultants who specialize in LUST fund work, Direct Pay may offer a competitive advantage over firms that do LUST fund work as an incidental part of their overall business, and therefore may not be able to prudently bear the risk of denial.
6. For state environmental agencies, Direct Pay fosters cooperation from the consultant, whose paycheck is directly tied to their ability to follow the state environmental department's program rules.