401 KAR 42:330. Small Owners Tank Removal Account.

 

      RELATES TO: KRS 224.60-105, 224.60-130(1)(a), (b), (j), 224.60-140, 224.60-150, 40 C.F.R. 280 Part H

      STATUTORY AUTHORITY: KRS 224.60-130(1)(j)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.60-130(1)(j) requires the establishment of an account to reimburse small owners for the reasonable cost of permanent closure, and authorizes the cabinet to promulgate administrative regulations to establish this account. This administrative regulation establishes the eligibility requirements and rates for reimbursement from the Small Owners Tank Removal Account (SOTRA).

 

      Section 1. Applicability. The provisions of this administrative regulation shall apply to petroleum storage tank owners meeting the requirements of Section 2 of this administrative regulation.

 

      Section 2. Eligibility. (1) To demonstrate eligibility, an owner shall submit a completed "SOTRA Application for Assistance", DEP 6067, (August 2006). An owner shall be eligible for reimbursement from this account if:

      (a) The petroleum storage tank owner demonstrates full or partial interest in ten (10) or fewer tanks and meets the financial eligibility criteria listed on the "SOTRA Application for Assistance", DEP 6067, (August 2006);

      (b) The tanks are located on a facility that is or was involved in the retail sale or wholesale distribution of motor fuel;

      (c) The tanks are registered with the Division of Waste Management, pursuant to KRS 224.60-105 and 401 KAR 42:020;

      (d) The owner certifies that:

      1. The retail sale or wholesale distribution of motor fuel at the facility from a UST system or systems permanently cease upon permanent closure of the tanks; and

      2. All known tanks at the facility are being removed or closed in place; and

      (e) The owner has owned the tanks for more than one (1) year prior to the date of the application for reimbursement from this account.

      (2) A newly-discovered underground storage tank system shall not affect the eligibility of an otherwise eligible owner.

      (3) A tank shall not need to be in operation prior to its removal.

      (4) A written notice shall be submitted to the applicable regional office at least fourteen (14) calendar days prior to commencement of the permanent closure of the petroleum storage tank to maintain eligibility for reimbursement.

      (5) Federal and state-owned facilities shall not be eligible for reimbursement from the Small Owners Tank Removal Account.

 

      Section 3. Account Use. (1) Funds in this account shall be used to reimburse eligible petroleum storage tank owners for those reasonable and necessary costs incurred through performance of actions required in 401 KAR 42:070.

      (2) The use of this account shall be limited as specified in KRS 224.60-130(1)(j).

      (3)(a) The owner of a facility shall be eligible for reimbursement of the cost of permanent closure, but shall not be eligible for payment of corrective action cost from this account.

      (b) If corrective action is required, eligible reimbursement shall be governed by 401 KAR 42:250.

      (4)(a) If expenditures from this account exceed $3,000,000 during any fiscal year, the cabinet may suspend further reimbursements from this account. The suspension shall be in effect until the cabinet determines that further reimbursements from this account will not threaten the solvency of the Petroleum Storage Tank Environmental Assurance Fund.

      (b) This determination shall be based upon legislatively-enacted budgets and associated appropriations.

 

      Section 4. Application Procedure. (1) The owner shall file a completed SOTRA "Application for Assistance", DEP 6067, (August 2006), incorporated by reference in this administrative regulation, for participation in this account at least forty-five (45) days prior to the permanent closure of the tank or tanks. The owner shall also provide the following information:

      (a) Verification of income level by copies of the previous five (5) years' income tax returns;

      (b) A copy of the contract between the owner and the primary contractor;

      (c) A site map delineating the facility boundaries and the location of all tank pits and areas to be impacted by the permanent closure; and

      (d) Color photographs of the facility and the areas to be impacted by the permanent closure.

      (2)(a) In response to the application submitted, the cabinet shall issue a letter setting forth the owner's eligibility status and the availability of funding for the closure of the petroleum storage tank.

      (b) Permanent closure of the tank system shall not begin until the cabinet has approved the application and established the reimbursable amount. Failure to comply with this requirement shall result in denial of the reimbursement.

 

      Section 5. Permanent Closure Costs. (1)(a) Reimbursement from this account shall be determined from the lesser of two (2) dollars per gallon of tank capacity or the following table:

Number of Tanks in Pit

Size of Largest Tank in Pit (gallons)

Less than

3,100

3,101 to

5,100

5,101 to

10,000

Greater

than

10,000

1

$3,000

$3,400

$4,900

$5,400

2

$4,900

$5,500

$7,400

$8,600

3

$6,400

$7,500

$9,700

$11,800

4

$7,900

$9,000

$11,800

$14,000

5

$9,400

$10,500

$13,800

$16,900

Each Extra

Tank up to 10

$1,500

$1,500

$1,800

$2,200

      (b) In addition to the cost listed in subsection (1)(a) of this section, the cabinet shall reimburse a one (1) time amount of $2,000, for the preparation and submission of a Closure Assessment Report, incorporated by reference in 401 KAR 42:070. This shall include the cost of preparing a classification guide. The cabinet shall also reimburse a one (1) time amount of $350 for the mobilization and demobilization of equipment.

      (c) If more than one (1) tank pit is located on a facility, the reimbursement shall be calculated by adding the matrix value given for each pit, plus an amount allowed by subsection (3) of this section.

      (2) The following costs shall be included in the cost listed in subsection (1)(a) of this section:

      (a) Tank system removal, cleaning and disposal;

      (b) Permanent closure of twenty-five (25) feet of associated piping outside of the tank pit;

      (c) Removal of the pump island and canopy;

      (d) Drumming and disposal of cleaning material;

      (e) Backfilling to return the excavation to grade. Additional backfill material may be reimbursed in accordance with subsection (3) of this section;

      (f) Concrete or asphalt surface removal;

      (g) Equipment and material necessary for the permanent closure;

      (h) Preparation of a permit if required for permanent closure or testing of a tank system;

      (i) Excavation and loading of material;

      (j) Collection of samples; and

      (k) Labor charges relating to paragraphs (a) through (j) of this subsection.

      (3) The costs of the following items, if necessary, shall be added to the cost established in subsection (1)(a) of this section, subject to the ranges set forth in the "Contractor Cost Outline", (August 2006), incorporated by reference in 401 KAR 42:250:

      (a) Surface replacement;

      (b) Transportation, disposal and replacement of contaminated backfill;

      (c) Disposal of asphalt surface material;

      (d) Installation of up to three (3) monitoring wells, as required by 401 KAR 42:070. The cost of additional wells may be allowed if the additional wells are required in writing by the cabinet. An additional lump sum of $500 shall be allowed for planning and reporting of the well installation and sampling;

      (e) Disposal or recycling of tank content or waste;

      (f) Removal, transportation and off-site disposal of water, if required;

      (g) Laboratory analysis, to the extent required; and

      (h) Optional soil removal outside of the excavation zone in accordance with Section 2.7 of the "Closure Outline", (August 2006), incorporated by reference in 401 KAR 42:070

 

      Section 6. Claims. (1) To receive reimbursement, an owner shall submit a completed "SOTRA Claim Request", DEP 6068, (January 2006).

      (2) In addition to the completed claim form, the owner shall submit the required documentation in accordance with the "Contractor Cost Outline", (August 2006), as incorporated by reference in 401 KAR 42:250.

      (3) The cabinet shall review a claim request for the following:

      (a) The number and size of tanks removed; and

      (b) Verification of eligible costs.

      (4) To receive reimbursement, an owner shall have paid all annual tank fees as required by KRS 224.60-150.

      (5) The cabinet may request additional supporting documentation to verify the reasonableness or necessity of a cost.

      (6) Reimbursement shall be contingent upon a determination by the cabinet that the report required is complete and meets the requirements of 401 KAR Chapter 42.

 

      Section 7. Incorporation by Reference. (1) The following material is incorporated by reference:

      (a) "SOTRA Application for Assistance", DEP 6067, (August 2006); and

      (b) "SOTRA Claim Request", DEP 6068, (January 2006).

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Underground Storage Tank Branch, 81 C. Michael Davenport Boulevard, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m., excluding state holidays, and may also be obtained on the Division of Waste Management's Web page located at www.waste.ky.gov. (23 Ky.R. 3649; Am. 4178; 24 Ky.R. 77; eff. 7-9-97; 25 Ky.R. 1128; 2868; eff. 6-9-99; Recodified from 415 KAR 1:130; 32 Ky.R. 2141; 33 Ky.R. 483; eff. 9-13-2006.)