65-34,119. Reimbursement from above ground and underground funds; conditions.
65-34,119
65-34,119. Reimbursement from above ground and underground funds;conditions.(a) Subject to the provisions of subsection (b), an owner or operator isentitled to reimbursement of reasonable costs of corrective action taken inresponse to a release from a petroleum storage tank if: (1) The owner oroperator is not the United States government or any of its agencies;(2) the owner or operator is in substantial compliance, as provided insubsections (e) and (f); (3) the owner or operator undertakes correctiveaction, either through personnel of the owner or operator or through responseaction contractors or subcontractors; and (4) the corrective action is not inresponse to a release from an aboveground storage tankdescribed in subsection (g) or (h) of K.S.A. 65-34,103 andamendments thereto. If the release is from an underground petroleum storagetank, reimbursement shall be from the underground fund and, if the release isfrom an aboveground petroleum storage tank, reimbursement shall be from theaboveground tank [*].
(b) Reimbursement pursuant to subsection (a) is subject to the followingprovisions:
(1) Except as provided insubsections (g) and (h), the owner oroperator shall be liable for the first costs of corrective action taken inresponse to arelease from any petroleum storage tank in an amount equal to $3,000plus $500 for each such tank owned or operated by the owner or operatorat the site of the release or $100,000, whichever is less;
(2) the owner or operatormust submit to and receive from the secretary approval of the proposedcorrective action plan, together with projected costs of the corrective action;
(3) the secretary may,in the secretary's discretion, determine those costs which are allowable ascorrective action costs and those which are attributable or ancillary toremoval, replacement or retrofitting of storage tanks;
(4) the owner or operator, oragents thereof, shall keep and preservesuitable records demonstrating compliance with the approved correctiveaction plan and all invoices and financial records associated with costsfor which reimbursement will be requested;
(5) within 30 days of receipt of a complete corrective actionplan, oras soon as practicable thereafter, thesecretary shall make a determination and provide written notice as towhether the owner or operator responsible for corrective actionis eligibleor ineligible for reimbursement of corrective action costs and, shouldthesecretary determine the owner or operator isineligible, the secretaryshall include in the written notice an explanation setting forth in detailthe reasons for the determination;
(6) the owner or operator shall submitto the secretary a written noticethat corrective action has been completed within 30 days of completingcorrective action;
(7) no later than 30 days from the submission of the notice asrequiredby subsection (b)(6), the owner or operatormust submit an application forreimbursement of corrective action costs in accordance with criteriaestablished by the secretary, and the application for reimbursement mustinclude the total amount of the corrective action costs and the amount ofreimbursement sought. In no case shall the total amount of reimbursementexceedthe lesser of the actual costs of the corrective action or the amount ofthe lowest bid submitted pursuant to K.S.A. 65-34,118andamendments thereto and approved by the secretary, less theappropriate deductible amount;
(8) interim payments shall be made to an owner or operatorin accordancewith the plan approved by the secretary pursuant to K.S.A.65-34,118 and amendments thereto, except thatthe secretary, for good cause shown, may refuse to make interim payments orwithhold the final payment until completion of the corrective action;
(9) the owner or operator shall befully responsible for removal,replacement or retrofitting of petroleum storage tanks and thecost thereof, and costs attributable or ancillary thereto,shall not be reimbursable from the respective fund;
(10) the owner or operator shall provideevidence satisfactory to thesecretary that corrective action costs equal to the appropriate deductibleamount have been paid by the owner or operator, andsuch costs shall not bereimbursed to the owner or operator;
(11) with regard to an underground petroleum storage tank, theowner or operator submits to thesecretary proof,satisfactoryto the secretary, that: (A) such owner or operator is unable to satisfy thecriteria for self-insurance under the federal act; or (B) such owner oroperator is able to satisfy the criteria forself-insurance under the federal act but the release is from an undergroundpetroleum storage tank notlocated at a facility engaged in production or refining of petroleum;
(12) with regard to an aboveground petroleum storage tank, the owner oroperatorsubmits to the secretary proof, satisfactory to the secretary, that the releaseis from an aboveground petroleum storage tank not located at a facility engagedin production or refining of petroleum; and
(13) the owner or operator shall beliable for all costs which are paidby or for which the owner or operator is entitled toreimbursement frominsurance coverage, warranty coverage or any other source.
(c) For the purpose of determining an owner's or operator'seligibilityfor reimbursement and the applicable deductibleof such owner or operator, the secretary shallconsider all owners and operators owned orcontrolled by the same interests to be a single owner or operator, exceptthat each state agency to which moneys areappropriated shall be considered individually as an owner or operator for suchpurpose.
(d) Notwithstanding the provisions of subsection (c) of K.S.A.65-34,118 and amendments thereto,should the secretary find that any of the following situations exist, any orall owners or operators shall, in thediscretion of thesecretary, be liable for 100% of costs associated withcorrective action necessary to protect health or the environment, if:
(1) The release was due to willful or wanton actions by the owner oroperator;
(2) the owner or operator is in arrears for moneysowed, other thanenvironmental assurance fees, toeither the underground fund or the aboveground fund;
(3) the release was from a tank not registered with the department;
(4) the owner or operator fails to comply with anyprovision of theagreement specified in subsection (c) of K.S.A.65-34,118 andamendments thereto;
(5) the owner or operator moves in any way toobstruct the efforts ofthe department or its contractors to investigate the presence or effects ofa release or to effectuate corrective action;
(6) the owner or operator is not in substantialcompliance with any provision ofthis act or rules and regulations promulgated hereunder; or
(7) the owner or operator allowed, failed to report or failed to takecorrective action in response to such release, knowing or having reason to knowof such release.
(e) Except as otherwise provided in subsections (f) and (g), an owner oroperatoris in substantial compliance with this act andthe rules and regulations adopted hereunder, if:
(1) Each petroleum storage tank owned oroperated by such owner or operator has beenregistered with the secretary,in accordance with the applicable laws of this state and any rules andregulations adopted thereunder;
(2) the owner or operator has entered into anagreement with thesecretary, as provided in subsection (c) of K.S.A.65-34,118and amendments thereto;
(3) the owner or operator has complied with anyapplicable financialresponsibility requirements imposed by the Kansas storage tank act and therulesand regulations adopted thereunder; and
(4) the owner or operator has otherwise made agood faith effort tocomply with the federal act if applicable, this act, any other law of thisstateregulating petroleum storage tanks and all applicable rules and regulationsadopted under any of them.
(f) An owner or operator shall bedeemed to be in substantialcompliance with this act with respect to the following tanks if suchowner or operator has notified the department, on forms provided by thedepartment, of the tank's existence, including age, size, type, location,associated equipment and uses:
(1) Any farm or residential tank of 1,100 gallons or less capacity usedfor storing motor fuel for noncommercial purposes;
(2) any aboveground tank of less than 660 gallons capacity; and
(3) any tank used for storing heating oil for consumptive use onthesingle family residential premise where stored.
(g) (1) Except as provided by subsection (g)(2), aperson who owns property where a petroleum storage tank is located shall notberequired to register such tank to beeligible for reimbursement from the respective fund of all costs of anynecessarycorrective action taken in response to a release from such tank and shallnot be subject to the provisions of subsection (b)(1) ifsuch person has at no time placed petroleum in such tank or withdrawn petroleumfrom such tank and such person:(A) Submitted a corrective actionplan prior to July 1, 1990, with respect to an underground petroleum storagetank, or prior to July 1, 1993, with respect to an aboveground petroleumstorage tank;(B) acquired such tank before December 22, 1988; or(C) acquired such tank by intestate succession or testamentarydisposition.
(2) A person shall not beeligible for reimbursement under subsection (g)(1) unless the owner or operatorof the tank is unable or unwilling to perform corrective action or cannot befound, inwhich case the secretary may recover all reimbursement paid, and any relatedadministrative and legal expenses, from the owner or operator as provided bysubsection (b) of K.S.A. 65-34,118 and amendments thereto.
(h) An owner or operator shall be entitled, upon written notification tothe secretary, to elect between the deductible provided by this section beforeJuly 1, 1992, and the deductible provided by this section on and after July 1,1992, with respect to costs of corrective action taken on or after April 1,1990, if such owner or operator has applied before July 1, 1992, forreimbursement of such costs from the respective fund. If an owner or operatororformer owner or operator has paid a deductible that is greater than thedeductible provided by this section on and after July 1, 1992, such owner oroperator or former owner or operator may apply to the secretary for a refund ofthe difference in such deductibles. If the owner or operator or formerowner or operator has died or no longer exists, no such refund shall be paid.
History: L. 1989, ch. 186, § 20;L. 1990, ch. 229, § 3;L. 1992, ch. 311, § 15; July 1.