CDLE banner image
 
MenuTemplate
Reasonable Cost Guidelines 2001 - General Overview

Article 1

1-1. STATEMENT OF PURPOSE

In adopting these Reasonable Cost Guidelines (Guidelines), the intent of the Colorado Petroleum Storage Tank Committee (Committee) is to preserve the solvency of Colorado's Petroleum Storage Tank Fund (Fund) and to protect Colorado's environment and the health and safety of its citizens by encouraging prompt remediation of petroleum contamination in a technologically sound and cost-effective manner.

The Committee believes the Guidelines are warranted by the following assumptions:

  • Petroleum Storage Tank Fund revenues will not increase beyond current levels produced by the maximum $75 per tank truckload environmental surcharge
  • Reimbursement applications will continue to be submitted at or above current levels
  • Allowable cost categories will not change significantly
  • 1-2. EFFECTIVE DATE
    The Guidelines, including the Listed Environmental Consultant Program, will apply to all work performed on or after July 1, 1997.

    For work performed before July 1, 1997, the Guidelines may be used to help the Committee determine a reasonable cost for a specific activity when the amount requested for reimbursement is judged to be excessive by the staff of the Colorado Department of Labor and Employment/Division of Oil and Public Safety (OPS).

    For work performed January 1, 2001 forward, refer to the Reasonable Cost Guidelines - 2001.

    1-3. ADJUSTMENTS
    Any change to Colorado's Reasonable Cost Guidelines must be approved by the Committee.

    Any adjustment for inflation or deflation will be based on figures provided by the Colorado Department of Labor and Employment (CDLE). No such adjustment will be made before July 1, 1998.  The Committee adjusted the rates for inflation at its December 1, 2000 meeting.

    The Committee may also adjust the Guidelines to preserve Fund solvency. Any such adjustment will be based on reimbursement projections provided by the OPS. Such adjustments will not apply to work already performed.

    1-4. IMPACT ON REIMBURSEMENT
    The reasonable rates established in the Guidelines are the maximum that will be recommended for reimbursement. Requests for reimbursement at rates at or below those established in the Guidelines shall be presumed to be reasonable, and therefore reimbursable unless otherwise disqualified. Requests for reimbursement at rates that exceed those established in the Guidelines shall be presumed to be unreasonable, and therefore subject to reduction to the rates in the Guidelines, unless the Fund Applicant can rebut the presumption. In order for Applicants to have the opportunity to rebut a presumption of unreasonableness, the OPS shall advise an Applicant in writing of those costs identified as exceeding the Guidelines before presentation of the application to the Committee. Any costs that exceed a rate established by the Guidelines and for which reimbursement is sought must be identified on the application, together with a justification for the higher rate, and will be considered separately by the Committee.

    All Applicable Rights Reserved, Copyright 2004 Colorado Department of Labor and Employment