| 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.
|