ARIZONA HOUSE OF REPRESENTATIVES

HB 2310: underground strorage tanks; reimbursement claims
PRIME SPONSOR: Representative Bowers, LD 25 BILL STATUS: Senate Engrossed                 Senate 3^rd Read: SE 17-11-2-0

Abstract

Relating to reimbursement for corrective actions taken by UST owners or operators.

Provisions

1. Permits reimbursement up to $1,000,000 per facility for corrective actions conducted between July 1, 2010 and December 31, 2016, for releases that were properly reported and confirmed before FR was required in 1988.

a. Reduces reimbursement by the amount of previously paid claims and prohibits a facility from obtaining additional reimbursement if previous reimbursement exceeds $1,000,000. (Sec. 1)

2. Requires submission for reimbursement of corrective action costs by December 31, 2018, for payment from the Fund.

a. Stipulates that reimbursement claim must include a signed declaration. (Sec. 1)

3. Directs ADEQ to:

a. proportionately pay all timely-submitted claims based on available Fund monies;

b. reimburse 90% of the reasonable and necessary costs of eligible activities that occurred; and

c. annually determine available Fund monies and issue payments. (Sec. 1)

4. Subjects appeals of reimbursement decisions to the Uniform Administrative Hearing Procedures. (Sec. 1)

5. Declares an owner or operator who satisfies the FR requirement through insurance is eligible for additional corrective action reimbursement, subject to the preapproval process, without filing a timely claim against its insurance carrier if the release was reported between July 1, 2006 and December 31, 2015.

a. Limits reimbursement to $500,000 per facility, after meeting a cost sharing obligation payment of $50,000. (Sec. 2)

6. Makes technical and conforming changes. (Sec. 1, 2)

Current Law

Federal regulations established in 1988 require UST owners and operators to demonstrate financial resources to pay for costs of corrective action and third-party liability that can result from leaking USTs. The amount of coverage depends on the type and size of the business. Financial mechanisms available to owners and operators include: 1) commercial liability insurance and risk retention group insurance; 2) self-insurance; 3) guarantee; 4) surety bond; 5) letter of credit; 6) trust fund; and 7) certificate of deposit, an Arizona-only FR mechanism (40 CFR § 280 and A.A.C. R18-12-300).

Laws 2015, Chapter 247 restructured the UST Program and provided a mechanism for reimbursement from the Fund for releases of regulated substances that were properly reported: 1) before July 1, 2006; and 2) between July 1, 2006 and January 1, 2016. Reimbursement is limited to $500,000 per facility for an applicant who satisfied the FR obligations through a financial mechanism other than insurance, and $1,000,000 per facility for an applicant who satisfied the FR obligations through insurance. The application deadline for reimbursement was December 31, 2016.

Additional Information

The FY 2017 estimated Fund year-end balance is $36,444,100 (JLBC).

---------- DOCUMENT FOOTER ---------

Fifty-third Legislature                  HB 2310

Second Regular Session                               Version 4: Senate Engrossed

---------- DOCUMENT FOOTER ---------