Privacy Statement

Allowable and Unallowable Costs

Only allowable and reasonable remediation costs will be reimbursed. Allowable costs are those costs and expenses which arise directly from the performance of necessary corrective action in accordance with the requirements of the Division of Oil and Public Safety. [7 CCR 1101-14, Article 8, § 8-3(b)]

ALLOWABLE COSTS [8-3](c)

(1) Abatement of impacts and immediate threats of impact to human health, safety, and the environment;

(2) Temporary provision of a water supply utilized specifically for domestic consumption;

(3) Collection and analysis of surface and subsurface soil and water, free product, and vapor samples;

(4) Emplacement of soil borings and/or monitor wells for remediation purposes;

(5) Removal, storage, treatment, recycling, transport, and disposal of free product, sludges, vapors, contaminated soils, contaminated water and other wastes and contaminated articles, in accordance with applicable laws;

(6) Removal and disposal (including transport) of soils and pavement where removal is necessary to the performance of corrective action;

(7) Identification and testing of affected or potentially affected drinking water sources;

(8) Design of plans for site assessment and remediation;

(9)Acquisition, installation, startup, operation and maintenance of site assessment and remediation systems, including monitoring;

(10) Temporary relocation of utility structures when necessary to the performance of corrective action;

(11) Preparation of technical reports required pursuant to the requirements of these regulations;

(12) The fair market value of access to property outside of the facility boundaries where such access is necessary for the performance of corrective action;

(13) Performance of any corrective action measure which is specifically required by a section of these regulations, or an order of the Division of Oil and Public Safety, or a written request or confirmation by the Committee;

(14) Equipment costs which are related solely to remediation. If the equipment is purchased with fund money, the reimbursement amount shall be reduced by any salvage value of the equipment.

(15) Any other costs determined by the Committee to be allowable in accordance with the provisions of these regulations.

UNALLOWABLE COSTS [8-4](a)

(1) The cost of replacement, repair, and maintenance of affected tanks and associated piping.

(2) The cost of upgrading existing affected tanks and associated piping, including but not limited to the costs of corrosion protection, release detection, spill and overfill protection, or any other upgrading required.

(3) The loss of income or profits, including without limitation, the loss of business income arising out of the review, processing, or payment of an application or request for assistance under these regulations.

(4) Decreased property values.

(5) Bodily injury or property damage except for injuries or damages suffered by third parties.

(6) Fees for legal services.

(7) **Any costs associated with preparing, filing and prosecuting an application for reimbursement or assistance under these regulations.

(8) **The costs of making improvements to the facility beyond those that are required for corrective action.

(9) **Costs, including those associated with contamination assessments performed for any purpose, where no petroleum remediation or corrective action is required by state law or procedures.

(10) Costs of compiling and storing records relating to costs of corrective action.

(11) Costs of corrective action taken in response to the release of a substance which is not eligible as defined in these regulations relating to eligibility.

(12) **Costs of system integrity testing.

(13) Any activities, including those required by these regulations, which are not conducted in compliance with applicable state and federal environmental laws, including laws relating to the transport and disposal of waste.

(14) **Penalties or payment for damages assessed by the Committee, Division of Oil and Public Safety, the Department of Public Health and Environment, and/or the federal government.

(15) At the Committee's sole discretion, claims for reimbursement relating to a tank owned or operated by a person who has been convicted of a violation of any law or rule that relates to the installation, operation, or management of petroleum storage tanks.

(16) Costs in excess of those considered reasonable by the Committee.

(17) At the Committee's sole discretion, cleanup costs resulting from negligence or misconduct on the part of the owner/operator or applicant.

(18) **Subject to Committee policy, costs incurred during the closure of a tank.

(19) **Costs for the rental of equipment owned by the applicant if the equipment was purchased by the Fund.

(20) Interest paid on loans.

(21) Costs that are a part of normal business expenses (i.e. insurance charges).

Note: **Potential Penalty for Seeking Reimbursement for Certain Unallowed Costs §[8-4(b)] (The following applies to each of the unallowed costs marked with two asterisks (**) above):

"Any attempt by an applicant to claim reimbursement under circumstances when the applicant knew or should have known (this includes knowledge held by the applicant's environmental consultant) that some or all costs would be unallowed authorizes the Committee to reduce otherwise allowable costs submitted by the applicant (whether on the same or a different application). Any reduction imposed under this section shall be equal to the amount of the unallowed costs. This subsection applies only to the unallowed costs in subsections 8-4(a)(7), (8), (9), (12), (14), (18), and (19) above and only to applications received after March 1, 1997."

Example: An application submitted after March 1, 1997 requests reimbursement for $500 of costs billed by the consultant to prepare the reimbursement application. This is an unallowable cost per 8-4(a)(7). The Petroleum Storage Tank Committee is authorized to reduce the reimbursement not only by the actual $500, but by an additional $500.

REASONABLE COSTS [8-5]

(a) For purposes of this regulation "Reasonable Cost" means that amount or range which is commensurate with the level of corrective action necessary to assess and remediate a site. "Reasonable Cost" is determined by the Committee based on an evaluation of technical effectiveness and cost effectiveness as well as typical costs expected for the particular corrective action under review, with respect to the necessary or required scope and complexity of the action.

(b) No cost is reasonable unless it is also an allowable cost pursuant to these regulations.

(c) The Owner/Operator shall be responsible for diligently pursuing remediation/cleanup operations as befits the site.