Section R18-12-606. Direct Payment Request Process

A.      Scope of Direct Payment Request. A direct payment request shall include only a request for direct payment of incurred costs for one or more of the following:

1.        Preapproved corrective action costs incurred performing corrective actions preapproved by the Department in a preapproval application;

2.        Non-preapproved corrective action costs that meet the requirements of subsection (D);

3.        The Department credit, toward the copayment amount, the costs of professional services to prepare the preap- proval application and the direct payment request; 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 direct payment request, according to A.R.S. § 49-1054(D) and 40 CFR 280.21.

B.       Direct Payment Request Requirements. An eligible person or a designated representative of an owner or operator shall submit a direct payment request on a form provided by the Depart- ment and comply with the general application requirements of R18-12-603. The original and one copy of the direct payment

request shall be submitted. The direct payment request shall also include the following:

1.        The application number assigned by the Department to the preapproval application against which the direct pay- ment request is made;

2.        Information on the completed corrective actions that are the subject of the direct payment request, 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 direct payment request or already on file with the Department and related to the corrective actions that are the subject of the direct payment request;

c.         If the direct payment request includes payment of non-preapproved corrective action costs, the infor- mation required at subsection (D), as applicable;

d.        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;

e.         Subcontractor incurred costs documented as required in subsection (d); and

f.         A completed cost work sheet;

3.        Any request that the Department credit, toward the copayment amount, the costs of professional services directly related to preparation of the preapproval applica- tion and the direct payment request. A request for credit for preapproval application preparation shall only be included in the eligible person’s first direct payment request against the preapproval application and shall include the invoices for costs of professional services directly related to preparation of the application. The request shall also include an invoice of the incurred costs for professional services directly related to preparation of the direct payment request, if applicable;

4.        If the direct payment request includes a request that the Department credit, toward the copayment amount, the costs of upgrading or replacing an UST system that is a subject of the direct payment request, the information as described in R18-12-604(B)(3);

5.        A statement by the eligible person that meets the require- ments of R18-12-603(B)(8) and a statement by the cor- rective action service provider that meets the requirements of R18-12-603(B)(10);

6.        Information related to issuance of the payment warrant that meets the requirements of R18-12-603(B)(9); and

7.        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 Direct Payment. The Department shall approve a direct payment request if all of the following conditions are satisfied:

1.        The direct payment request contains all of the required 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 direct payment request. Failure to make the certifications as described in R18-12- 603(B)(8) and (10) shall result in denial under R18-12- 610;

2.        The corrective actions and associated costs that are a sub- ject of the direct payment request are described in subsec- tion (A) and were actually performed and incurred, respectively, as provided in the preapproved work plan or,

if not preapproved, meet the requirements of subsections