Section R18-12-604. Reimbursement Application Process

A.      Scope of Reimbursement Application. A reimbursement appli- cation shall include only a request for reimbursement of incurred costs for one or more of the following:

1.        Non-preapproved corrective action costs for the follow- ing activities:

a.         Sampling, analysis, and the report associated with confirmation of a release under R18-12-260(C) that requires corrective action;

b.        Sampling, analysis, and the report associated with UST closure under R18-12-271(D) that confirms a release that requires corrective action;

c.         Initial response, abatement, and site characterization performed according to the requirements and condi- tions at R18-12-261;

d.        Free product investigation and removal according to the requirements and conditions at R18-12-261.02;

e.         LUST site investigation performed according to the requirements and conditions at R18-12-262;

f.         Risk assessment performed according to the require- ments and conditions at R18-12-263.01;

g.        Remedial response performed according to the requirements and conditions at R18-12-263;

h.        LUST case closure performed according to the requirements and conditions at R18-12-263.03; or

i.         Permanent closure of a tank or UST if the require- ments at A.R.S. §§ 49-1052(A)(3), 49-1052(A)(4), or 49-1052(A)(6), as applicable, and R18-12-271 through R18-12-274 are satisfied;

2.        Corrective action costs described in subsections (1)(a) through (1)(d) and deemed preapproved under R18-12- 605(I);

3.        The Department credit, toward the copayment amount, the costs of professional services to prepare the reim- bursement application; or

4.        For an owner or operator, the Department credit, toward the copayment amount, the costs of upgrading or replac- ing an UST system that is a subject of the reimbursement application, according to A.R.S. §§ 49-1054(D) and 40 CFR 280.21.

B.       Reimbursement Application Requirements. An eligible person or a designated representative of an owner or operator shall submit a reimbursement application on a form provided by the Department and comply with the general application require- ments of R18-12-603. The original and one copy of the appli- cation shall be submitted. A reimbursement application shall also contain the following:

1.        Information on the completed eligible activities that are the subject of the application, as follows:

a.         A summary of work;

b.        Reference, by title, date, and location within the document, to any written report or other written information included with the application or already on file with the Department, related to the corrective actions that are the subject of the application;

c.         Copies of unaltered invoices documenting total incurred costs for each of the eligible activities that was performed, including an invoice checklist over- view prepared in a format provided by the Depart- ment;

d.        Subcontractor costs documented as required in sub- section (c); and

e.         A completed cost work sheet;

2.        If the application requests that the Department credit, toward the copayment amount, the costs of professional services directly related to preparation of the reimburse- ment application, an invoice of the incurred costs for pro- fessional services directly related to preparation of the application;

3.        If the application requests that the Department credit, toward the copayment amount, the costs of upgrading or replacing an UST system that is a subject of the applica- tion, all of the following, unless previously submitted:

a.         A demonstration that the upgrade or replacement costs were incurred at the time of the corrective actions to the release that is a subject of the applica- tion;

b.        Proof that the Department was notified of the upgrade or replacement in accordance with R18-12- 222(F)(2);

c.         Proof that the eligible person paid the upgrade or replacement costs, consisting of the invoices of the costs, copies of the cancelled checks, or financial institution statements; and

d.        A statement by the eligible person that the upgrade or replacement costs for which credit is being requested were not already paid from the UST grant account or by another entity and are not the subject of an approved UST grant application.

4.        If applicable, details on time and materials for those eligi- ble activities identified as being payable on a time and materials basis in the schedule of corrective action costs.

C.      Conditions for Approving Reimbursement. The Department shall approve reimbursement if all of the following conditions are satisfied:

1.        The application contains all of the required application components as described in this Section, or the Depart- ment has determined in a final determination under R18- 12-611 that it has enough information to make an informed decision to approve the reimbursement. Failure to submit the statements as described in R18-12- 603(B)(8) and (10) shall result in denial under R18-12- 610;

2.        The eligible activities and associated costs that are the subject of the application  are described in subsection (A)(1) and were actually performed and incurred, respec-

tively, and are in accordance with R18-12-608 and A.R.S.

§§ 49-1052(A) and (D) and A.R.S. § 49-1054; and

3.        The eligible person is eligible to receive the requested assurance account coverage under A.R.S. §§ 49-1052 and 49-1054.

D.      Reports. Notwithstanding this Section, the Department shall pay in accordance with R18-12-608 an application for the costs of a report only if one or more of the following are met:

1.        The report is required by R18-12-260 through 264.01;

2.        The report is prepared at the written request or written instruction of the Department;

3.        The report is required by other regulatory programs;

4.        The report, if approval  is required under R18-12-260 through R18-12-263.03, as applicable, is approved by the Department; or

5.        The UST closure report required under R18-12-271 is eli- gible under A.R.S. § 49-1052(A)(2).

E.       Notice of Reimbursement Determination. The Department shall notify the eligible person or the designated representative of an owner or operator of its determination on the reimburse- ment application in accordance with R18-12-601(C), R18-12- 610, or R18-12-611, as applicable.

F.       Severability. The Department may approve reimbursement of a part of the costs that are the subject of the reimbursement application, provided the conditions at subsections (A), (B),

(C)  and (D) are satisfied for that part, and deny the remaining costs in the application.

G.      Reimbursement. The Department shall reimburse approved costs less any copayment amount determined under R18-12- 609 using assurance account monies and, if necessary, in the order of priority determined according to R18-12-612.

Historical Note

Adopted effective September 21, 1992 (Supp. 92-3). Sec- tion repealed; New Section made by final rulemaking at 12 A.A.R. 1611, effective June 4, 2006 (Supp. 06-2).