Assigned to NRAE                                                                                                        AS PASSED BY THE SENATE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

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 conducted within the work objectives of the preapproved work plan if both of the following apply:

 

a)      The work is in substitution for a preapproved work item.

b)      The cost of the work is equal to or less than the cost schedules and costs of the substituted work item.

 

2.      Requires ADEQ to pay for reasonable and necessary work performed that is not in substitution for a preapproved work item if it is less than the cost schedule and the total preapproved amount of the work plan, and does not cause dual payment for preapproved work.  If the work exceeds the total preapproved amount of the work plan, ADEQ is required to prioritize payment for the portion of the work that is less than the total preapproved amount.

 

3.      Makes technical and conforming changes.     

 

4.      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.

 

Senate Action

 

NRAE              3/14/02            DPA    7-0-1-0

3rd Read           3/27/02                       29-1-0-0

 

Prepared by Senate Staff

April 2, 2002