House of Representatives

SB 1338

underground storage tanks

Sponsors: Senators Richardson, Guenther,

Representative Huffman

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

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

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

· Repeals section 49-1017, laws 2000, chapter 131, section 3 due to a double enactment. (Underground Storage Tanks: Powers of Director; corrective actions).

· 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.

· Requires the department 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 the 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 specified within the workplan as a preapproved item and 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 must be prioritized for payment as prescribed by the statutory criteria.

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45th Legislature

Second Regular Session 2 May 6, 2002

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