Section R18-12-601. Eligibility

A.      Coverage. The Department shall provide coverage in accor- dance  with  the  statutory   maximum  amounts  described  at

A.R.S. §§ 49-1052(I) and 49-1054(A). The extent of coverage available to an eligible person is 90 percent of the reasonable and necessary costs of eligible corrective actions, except:

1.        The extent of coverage for owners and operators is 50 percent of the reasonable and necessary costs of eligible corrective actions for  releases  reported after  June  30, 2000 from USTs that were not permanently or tempo- rarily closed or upgraded in accordance with R18-12-221.

2.        The extent of coverage for a volunteer who the Depart- ment has determined to be eligible for a copayment waiver in accordance with R18-12-609(C) is 100 percent of the reasonable and necessary costs of eligible correc- tive actions.

3.        The extent of coverage for an owner or operator taking corrective action above the owner’s or operator’s liability allocated under A.R.S. § 49-1019(D), is 100 percent of the reasonable and necessary costs of the performed eligi- ble corrective actions that exceed that allocated liability.

B.       Eligible Activities. The activities eligible for coverage are those described in A.R.S. § 49-1052(A) for releases reported to the Department before July 1, 2006. The eligible activities shall meet the requirements of R18-12-608, and comply with applicable requirements of A.R.S. Title 49, Chapter 6 and rules made thereunder.

C.      Incorrect Applications or Direct Payment Requests. The Department shall not provide coverage for incorrect applica- tions or direct payment requests. The Department shall deny incorrect applications or direct payment requests under R18- 12-611. The Department shall not make an interim determina- tion or decision related to an incorrect application or direct payment request. An application or direct payment request is incorrect if any of the following conditions exist:

1.        The coverage limits at A.R.S. § 49-1054(A) are exhausted.

2.        The application or direct payment request includes a resubmittal under R18-12-608(E).

3.        The owner or operator, after notice and opportunity from the Department to become current, remains delinquent on applicable annual tank fees in accordance with A.R.S. § 49-1020 or excise tax returns in accordance with A.R.S. Title 49, Chapter 6, Article 2 and rules made thereunder.

4.        The person seeking assurance account coverage is con- victed of fraud related to the performance of eligible activities or an assurance account application or direct payment request.

5.        The person seeking assurance account coverage is not an eligible person.

6.        The coverage requested in the application or direct pay- ment request is not related to an eligible release under

A.R.S. Title 49, Chapter 6.

7.        The owner or operator is the subject of an enforcement proceeding under A.R.S. § 49-1013, unless the owner or

operator       is     otherwise       eligible    under     A.R.S.     § 49-1052(F)(3).

8.        The application is a reimbursement application for cor- rective actions in a work plan preapproved by the Depart- ment.

9.        The direct payment request does not pertain to a preap- proval application approved by the Department, or is a direct payment request that pertains to that part of a pre- approval work plan that is terminated under R18-12- 605(G).

10.     The application or direct payment request for eligible activities associated with a release, except for appeal costs, is submitted more than one year after the eligible person receives a closure letter for that release, in accor- dance with A.R.S. § 49-1052(M).

11.     The application is a reimbursement application by a vol- unteer for costs incurred in excess of $100,000 at a single facility, unless the reimbursement application is submit- ted in accordance with R18-12-604(A)(2).

12.     On and after December 31, 2005, the application or direct payment request is for an amount less than $5,000 under

A.R.S. § 49-1052(Q).

13.     The application is a preapproval application that pertains to a site that is the subject of a consent order or compli- ance order issued under the authority of A.R.S. § 49-1013.

D.      General Deadlines. An application for preapproval of correc- tive actions shall be submitted no later than 5:00 p.m. on June 30, 2009. An application for preapproval shall not be accepted after 5:00 p.m. on June 30, 2009. Any reimbursement applica- tion or direct payment request shall be submitted no later than 5:00 p.m. on June 30, 2010. A reimbursement application or direct payment request to the assurance account shall not be submitted to or accepted by the Department after 5:00 p.m. June 30, 2010.

Historical Note

Adopted effective September 21, 1992 (Supp. 92-3).

Amended effective December 6, 1996 (Supp. 96-4). Sec- tion repealed; new Section made by final rulemaking at 12 A.A.R. 1611, effective June 4, 2006 (Supp. 06-2).