Assigned to NRAE                                                                                                                                        AS ENACTED

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FINAL REVISED

FACT SHEET FOR S.B. 1338

 

underground storage tanks

                              

Purpose

           

            Requires the Arizona Department of Environmental Quality (ADEQ) to pay for underground storage tank cleanup work that is not preapproved.

 

Background

 

 ADEQ uses the underground storage tank revolving fund to compensate eligible underground storage tank owners for 90 percent of the cost of cleaning up regulated substance releases.   The Director of ADEQ is required to prescribe rules for the cleanup of underground tank releases.    Before beginning a cleanup effort, tank owners may submit a plan to ADEQ for preapproval.   After the cleanup, if the tank owner’s actions and costs are within the preapproved plan, ADEQ is required to compensate the owner without further review.

 

            S.B. 1338 requires ADEQ to pay for underground storage tank cleanup work that is not outlined in the preapproved work plan under certain circumstances.

 

            There is no known fiscal impact to the state general fund relating to the provisions of this bill.

 

Provisions

 

1.      Requires ADEQ to pay for work item costs if the work is within the objectives of the preapproved work plan if either of the following apply:

 

a)      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.

b)      If the cost is for reasonable and necessary work that is not preapproved 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.

 

2.      Makes technical and conforming changes.     

 

3.      Provides for a general effective date.

 

 

 

 

Amendments Adopted by Committee

 

1.      Restores existing corrective action requirements to protect public health, welfare and the environment, provide for the control or cleanup of leaks and be technically feasible.

 

2.      Eliminates the requirement that corrective actions for reimbursement from the assurance account be the most cost effective alternative.

 

3.      Requires ADEQ to pay for work conducted outside of a preapproved work plan if it is reasonable, necessary and within the total preapproved costs.  If the work is not within the total preapproved costs, ADEQ must pay the costs according to the date the bills are submitted to the Department.

 

4.      Allows a work plan to reference previously submitted material.

 

5.      Makes technical and clarifying changes.

 

Amendments Adopted by Committee of the Whole

 

1.      Restores all existing corrective action and requirements.

 

2.      Requires ADEQ to pay for work conducted outside of a preapproved work plan under certain circumstances.

 

Amendments Adopted by the House of Representatives

 

·        Clarifies the types of work items that ADEQ must pay if the work was not preapproved.

 

Senate Action                                                               House Action

 

NRAE              3/14/02            DPA    7-0-1-0                        ENV                4/16/02     DPA     7-0-0-3-0

3rd Read           3/27/02                       29-1-0-0           APPROP         4/23/02     DPA     13-0-0-3-0

Final Read        5/07/02                       28-0-2-0           3rd Read           4/29/02                  56-0-4-0

 

 

Signed by the Governor 5/9/02

Chapter 206

 

Prepared by Senate Staff

May 15, 2002