House of Representatives

SB 1338

underground storage tanks

Sponsors: Senators Richardson, Guenther,

Representative Huffman

DPA	Committee on Environment
DPA	Committee on Appropriations
X	Caucus and COW
	Third Read
	As Passed the House

SB 1338 makes revisions in the preapproval portion of the DEQ underground storage tank cleanup program.

Current Status

SB 1338 passed the Environment Committee amended to clarify how costs are paid from a preapproved work plan under certain conditions. SB 1338 passed the Appropriations Committee with the same amendment.

History

DEQ administers the UST state assurance fund (SAF) through an application process. Based on points for risk to health and the environment, points for financial need and points for time an applicant has to wait for payment, applications are prioritized for payment. Since the program’s inception, approximately 11,000 applications totaling over $434 million have been processed, with an average claim of approximately $40,000. Based on the existing average claim size and anticipated number of future claims, DEQ projects year end negative balances of $90 million in FY 02 and $110 million in FY 03. Funds are derived from an underground storage of one cent per gallon of regulated substance (primarily petroleum).

Provisions

· Removes the requirement that the department’s review of corrective action costs that were preapproved is limited to determining whether the corrective actions were actually performed and whether the corrective actions and costs conform to the preapproval.

· Makes a variety of revisions to preapproval payments.

Amendments

· Repeals ARS section 49-1017, laws 2000, chapter 131, section 3 due to a double enactment.

· Requires DEQ to pay for work item costs if the work is within the work objectives of a preapproved work plan and if either of the following apply:

- If the cost of a substituted item does not exceed both the cost schedule of the substituted work item and the cost of the work item originally preapproved.

- If the cost is for reasonable and necessary work that is not preapproved as a work item or is not substituted for a work item, the cost cannot exceed the total amount under the preapproved work plan and cannot exceed the cost schedule for that work item; if these costs would exceed the total preapproved amount in the work plan, the excess amount for the work that is equal to or less than the applicable cost schedules is prioritized for payment as prescribed by the statutory criteria.

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- 45th Legislature

- Second Regular Session 2 April 24, 2002

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