65-34,132. Kansas essential fuels supply trust fund; allowable expenses; application; reimbursement.
65-34,132
65-34,132. Kansas essential fuels supply trust fund;allowable expenses; application; reimbursement.(a) The secretary may provide for the reimbursement toeligible owners of aboveground storage tanks or bulk plants in accordance withthe provisions of this section and subject to the availability of moneys in theKansas essential fuels supply trust fund.An abovegroundstorage tank or bulk plant shall be eligible for reimbursement under thissection, if such aboveground storage tank or bulk plant is used for the storageof petroleum products for resale.
(b) The secretary may reimburse the owner of an aboveground storage tankfacility or bulk plant for upgrade expenses or permanent closure expenses, inthe amount specified in subsection (c), if all of the following criteria aremet:
(1) The aboveground storage tank facility was registered with the departmenton or after November 22, 1993;
(2) the aboveground storage tank contains petroleum products;
(3) application is made on or before January 1, 2011, on aform provided bythe department;
(4) upgrade expenses must be incurred after August 1, 2001, and not laterthan July 1, 2009. Upgrade expenses are limitedtoreasonable and necessaryto the installation or improvement of equipment or systems required forcompliance with 40 CFR 112. Such expenses shall include, but are not limitedto,installation or upgrade of the following:
(A) Secondary containment;
(B) integrity testing;
(C) corrosion protection;
(D) loss prevention;
(E) engineering costs;
(F) security;
(G) drainage; and
(H) removal of noncompliant tanks;
(5) expenses for permanent closure activities, must be incurred after August1, 2001, and not later than July 1, 2009. Onlyexpensesfor activitiesreasonable and necessary to permanently close an aboveground storage tankfacility are eligible for reimbursement.Reasonable and necessary activities eligible for reimbursement include, but arenot limited to, the following:
(A) Removal of the tank and piping system;
(B) removal of tank support and confinement systems;
(C) removal of security systems;
(D) cleaning of tanks; and
(E) disposal of waste petroleum and other waste material including concrete.
(c) Applications for reimbursement must be made on forms supplied by thedepartment. Applications for reimbursement must include documentation of thefacility upgrade or permanent closure activities and expense. Proof of paymentof all expenses for which reimbursement is requested must be provided. Thedepartment will review those expenses based on current industry costs andprovide reimbursement of reasonable and necessary costs. The department shallreimburse an applicant for 90% of the approved cost of the facility upgrade orpermanent closure not to exceed $25,000 per facility. Disputes regardingapplication approval, reimbursements rates or reimbursement amounts will bereferred to the Kansas essential fuel supply trust fund compensation advisoryboard.
(d) If the owner of an aboveground storage tank facility contracts withanother individual or business entity to perform the upgrade or permanentclosure activities, the expenses may be submitted to the department forreimbursement under this section. The department may deny any claim forreimbursement that fails to provide adequate proof of payment in full to thecontracting party. The owner may obtain prior approval from the department ofthe activities to be performed and the expenses to be incurred.
(e) Owners of aboveground storage tanks or bulk plant may enter into anagreement with the department to perform upgrades or permanent closures afterthe deadline and receive reimbursement if they comply with the followingcriteria:
(1) The owner has signed a contract with a vendor to perform the work priorto the deadline; and
(2) the vendor indicates that they are unable to perform the work before thedeadline.
(f) The secretary may adopt such rules and regulations deemed necessary tocarry out the provisions of this section.
(g) The provisions of this section shall be part of and supplemental to theKansas storage tank act.
History: L. 2006, ch. 50, § 2;L. 2007, ch. 34, § 4;L. 2007, ch. 180, § 16; July 1.