No. 43081 (Amendment): Section R315-15-16. Grants

(Amendment)

DAR File No.: 43081
Filed: 07/13/2018 10:08:30 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section R315-15-16 implements the provisions of Section 19-6-720 of the Used Oil Management Act regarding used oil grants that are used for establishing and supporting do-it-yourselfer (DIYer) used oil collection centers. These proposed changes to the used oil grant section of the used oil rule provide additional clarity and more detailed direction to the grant application, issuance, implementation, and reimbursement processes. These proposed changes result in greater alignment between the rule and the actual grant application package and implementation procedures and processes. Additionally, in January 2018, the Division of Waste Management and Radiation Control, Waste Management provided the Administrative Rules Review Committee with a draft of the proposed changes in response to the Committee's action that rulemaking be undertaken to fully address the used oil grant application and reimbursement processes for DIYer used oil collection centers. On 07/12/2018, the Waste Management and Radiation Control Board approved the proposed changes to Section R313-15-16 for filing and publication in the Utah State Bulletin for public review and comment.

Summary of the rule or change:

In Subsection R315-15-16(16.1), the list of authorized uses of the grant funds is expanded to match the list in Section 19-6-720 of the Used Oil Management Act. The following ten new subsections are proposed to be added: Subsection R315-15-16(16.4) specifies the requirements to qualify for reimbursement of transportation costs from certain DIYer used oil collection centers from rural locations; Subsection R315-15-16(16.5) states matching funds from grant applicants are not required, stipulates certain grant funding actions by the Director, and requires submittal of bids to be paid by grant; Subsection R315-15-16(16.6) describes the content of the grant application form; Subsection R315-15-16(16.7) requires submittal of an original grant application to the Director; Subsection R315-15-16(16.8) states grant recipients may be subject to a desk or field audit, and requires grant recipient to maintain records and documents associated with grant expenditures; Subsection R315-15-16(16.9) requires submittal of a final report and identifies the report contents; Subsection R315-15-16(16.10) describes actions the Director may take if the grantee fails to comply with the grant requirements; Subsection R315-15-16(16.11) specifies grant payment submittals and procedures; Subsection R315-15-16(16.12) specifies Director actions to approve grant payments and forward to the Division of Finance; and Subsection R315-15-16(16.13) specifies requirements for grant closeout by the Director and for grantee record retention and availability.

Statutory or constitutional authorization for this rule:

• Section 19-6-720
• Section 19-6-704

Anticipated cost or savings to:

the state budget:

Grants are paid from the Used Oil Collection Administration Account established in Section 19-6-719 of the Used Oil Management Act. A used oil collection center grant can vary since the amount of the grant is based on an individual grantee�s application, and the nature and scope of the specific project(s). Because of the variability in a given grant request, total costs cannot be quantified, but past grants to entities funded from the state budget, such as higher education institutions and school districts, have ranged from $500 to $3,000.

local governments:

Local health departments and some local school districts have received several grants in the past that have ranged from $500 to $3,000. Because of the variability in a given grant request, total costs cannot be quantified.

small businesses:

Small businesses that serve as a used oil collection can apply for a grant and in the past have received grants that have ranged from $500 to $3,000. Because of the variability in a given grant request, total costs cannot be quantified.

persons other than small businesses, businesses, or local governmental entities:

Big box retailers that typically provide auto maintenance services to the public and serve as a used oil collection center can apply for a grant. Although none have applied for a grant in the past, it is assumed they could receive a grant within the same range as other previous grant recipients (i.e., from $500 to $3,000). Because of the variability in a given grant request, total costs cannot be quantified.

Compliance costs for affected persons:

Because grants are voluntary there are no actual compliance costs, nor does a grant require matching funds. However, other funds may be used in combination with the grant in order to expand the proposed grant-related project. Any costs incurred by a grantee are typically associated with the application preparation, grant expenditure verification, and completion report and vary based on the specific grant activity.

Comments by the department head on the fiscal impact the rule may have on businesses:

A critical component of a successful used oil recycling program is establishing collection centers convenient to the public, particularly for a DIYer who changes their own oil from personal vehicles or home equipment. This is especially true for rural areas of Utah. In support of establishing DIYer used oil collection centers, businesses and governmental entities can apply for a grant. In the past, grants have ranged from $500 to $3,000. Because grants are voluntary there are no compliance costs. Additionally, grants do not require matching funds, any costs incurred by a grantee are typically associated with the application preparation, grant expenditure verification, and completion report and vary based on the specific grant activity.

Alan Matheson, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Environmental Quality
Waste Management and Radiation Control, Waste ManagementRoom Second Floor
195 N 1950 W
SALT LAKE CITY, UT 84116-3097

Direct questions regarding this rule to:

• Rusty Lundberg at the above address, by phone at 801-536-4257, by FAX at 801-536-0222, or by Internet E-mail at [e-mail]
• Thomas Ball at the above address, by phone at 801-536-0251, by FAX at , or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

08/31/2018

This rule may become effective on:

09/14/2018

Authorized by:

Scott Anderson, Director

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2019

FY 2020

FY 2021

State Government

$500 to $3,000 per grant

$500 to $3,000 per grant

$500 to $3,000 per grant

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$0

$0

$0

Total Fiscal Costs:

$500 to $3,000 per grant

$500 to $3,000 per grant

$500 to $3,000 per grant

Fiscal Benefits

State Government

$500 to $3,000 per grant

$500 to $3,000 per grant

$500 to $3,000 per grant

Local Government

$500 to $3,000 per grant

$500 to $3,000 per grant

$500 to $3,000 per grant

Small Businesses

$500 to $3,000 per grant

$500 to $3,000 per grant

$500 to $3,000 per grant

Non-Small Businesses

$500 to $3,000 per grant

$500 to $3,000 per grant

$500 to $3,000 per grant

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$1,500 to $9,000 per grant

$1,500 to $9,000 per grant

$1,500 to $9,000 per grant

Net Fiscal Benefits:

$1,000to $6,000 per grant

$1,000 to $6,000 per grant

$1,000 to $6,000 per grant

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non - Small Businesses are described below.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

There is currently a single non-small company with an NAIC code of 452311 with multiple locations throughout the state that participates in the do-it-yourselfer (DIYer) used oil collection center program. This non-small business has not ever requested or applied for a used oil grant. Although they have not applied for a grant in the past, it is assumed they may choose to apply for and receive a grant within the same range as other previous grant recipients (i.e., from $500 to $3,000). Because of the variability of a given grant request, total costs are inestimable and therefore cannot be quantified.

 

The Executive Director of the Department of Environmental Quality, Alan Matheson, has reviewed and approved this fiscal analysis.

 

 

R315. Environmental Quality, Waste Management and Radiation Control, Waste Management.

R315-15. Standards for the Management of Used Oil.

R315-15-16. Grants.

16.1 STATUTORY AUTHORITY.

Utah Code Annotated 19-6-720 authorizes the Division of Waste Management and Radiation Control to award grants, as funds are available, for the following:

(a) Used oil collection centers;[and]

(b ) Used oil collection events;

(c) Curbside used oil collection programs, including costs of retrofitting trucks, curbside containers, and other costs of collection programs[.]; and

(d) Public education programs and outreach.

16.2 ELIGIBILITY AND APPLICATION.

(a) The establishment of new or the enhancement of existing used oil collection centers or curbside collection programs that address the proper management of used lubricating oil may be eligible for grant assistance.

(b) A Used Oil Recycling Block Grant Application Package, [published]made available by the Director, shall be completed and submitted to the Director for consideration.

16.3 LIMITATIONS.

(a) The grantee [must]shall commit to perform the permitted used oil handling activity for a minimum of two years.

(b) If the two-year commitment is not fulfilled, the grantee may be required to repay all or a portion of the grant amount.

16.4 USED OIL TRANSPORTATION COSTS FROM USED OIL COLLECTION CENTERS

(a) Grant funds may be used for costs for a permitted used oil transporter to collect and transport used oil from a used oil collection center (UOCC) located within a rural area that meets the following criteria:

(1) accepts only:

(i) DIYER used oil, Type A UOCC; or

(ii) both DIYER and farmer used oil, Type B UOCC

(2) is located in a Class 4 municipality, as described in Section 10-2-301, or in an area with a population less than that of a Class 4 municipality;

(3) stays active with the Used Oil Program for at least two years after receiving the grant or the grant funds shall be reimbursed;

(4) completes a grant application that is signed by the owner of the collection center; and

(5) obtains a minimum of one transportation bid from a permitted used oil transporter in accordance with Section R33-5-104.

(b) Grant funds may be used for costs for a permitted used oil transporter to collect and transport used oil from a Type C Used Oil Collection Center if the UOCC meets the following criteria:

(1) Is a Utah municipal landfill that is registered as a Type C used oil collection center with the Division of Waste Management and Radiation Control;

(2) Only allows small businesses that qualify as a Very Small Quantity Generator (VSQGs) of hazardous waste, to deliver used oil in a volume of less than 55 gallons per visit per day; and

(3) One transportation bid from a permitted used oil transporter is submitted for requests less than $1,000.00, or three bids if over $1,000.00.

(c) Grant funds may be considered for costs for a permitted used oil transporter to collect and transport used oil from a Used Oil Collection Center that does not meet the criteria outlined in Subsections R315-15-16.4(a) or (b)on a case-by-case basis.

16.5 FUNDING

(a) An applicant is not required to provide matching funds.

(b) The Director may withhold 10 percent of the funds from a grant recipient until the grant is completed and the final documentation submitted.

(c) The Director may approve a request for advance payment based upon justification offered by the applicant.

(d) A grant application shall include all bids for expenses to be paid by the grant in accordance with Rule R33-5.

16.6 APPLICATION CONTENTS

(a) A grant application form is part of the grant application package available from the Director and consists of the following sections:

(1) Applicant Information. The applicant shall include basic information regarding the applicant and the individual or entity responsible for the project implementation.

(2) Used Oil Project Request for Funding. The project funding request shall include the following:

(i) Background. The background information shall include a description of:

(A) The absence or existence of used oil collection opportunities in the area to be served by the used oil project; and

(B) The population of the proposed project area.

(ii) Project Description and Goals; and

(iii) Funding Sources.

(3) Project Budget. The project budget may include a cost breakdown of the following categories:

(i) Used oil transportation and disposal expenses.

(ii) Contractor or consultant expenses.

(iii) Construction expenses.

(iv) Equipment.

(v) Materials and supplies.

(vi) Public education and outreach.

(4) Eligibility summary. The applicant shall include, as applicable, the following information for each:

(i) Used oil collection center:

(A) Name of the facility;

(B) Physical address; and

(C) Phone number; and

(ii) Curbside collection program:

(A) Name, address, and phone number of the program operator;

(B) Number of residents served by the program; and

(C) Collection schedule

(5) Certification Statement and Signature.

16.7 APPLICATION SUBMISSION

Applicants shall submit an original application using the application package of Subsection R315-15-16.2(b) to the Director.

16.8 AUDIT REQUIREMENTS

(a) A grant may be subject to a desk or field audit.

(b) The grantee is responsible for maintaining source documents substantiating the expenditures claimed and shall make them available at the time of an audit.

(c) Records relating to the implemented program may include:

(1) Expenditure ledger;

(2) Paid warrants;

(3) Contracts;

(4) Change orders;

(5) Invoices; and

(6) Cancelled checks.

(c) Records shall be maintained for a period of three years from the date of final payment by the State.

16.9 ADMINISTRATIVE PROCEDURES

(a) A grantee shall submit a final report within one month of completion of the project or by a later date specified by the Director. The report shall include the following information:

(1) A description of the completed used oil collection program, including any amendments;

(2) The estimated number of participants in the program;

(3) A description of the program's public education efforts;

(4) A description of measures taken to continue the program; and

(5) A complete and final itemization of how grant funds were expended.

16.10 FAILURE TO COMPLY

Failure to comply with the agreement requirements may result in the Director terminating, suspending, or requiring the grantee to repay some or all of the grant.

16.11 GRANT PAYMENTS

(a) General Requirements.

(1) The Director shall reimburse the grantee for performing only those services as specified in the grant application. Any deviations from the use of funds specified in the application shall be approved by the Director before an expenditure for that item is made.

(2) Payment shall be made to the grantee only. It shall be the responsibility of the grantee to pay all contractors and subcontractors for purchased goods and services.

(3) The Director may withhold and retain ten percent of the grant award until the grant is completed and the final documentation submitted.

(4) Requests for advance payment shall be submitted in writing to the Director and demonstrate that the grantee will incur a specific expenditure(s) prior to or shortly after payment for the State. Suggested documentation includes:

(i) Purchase orders; and

(ii) Invoices.

(5) The Director may partially or fully deny advance payment requests.

(b) Submittal of payment requests.

(1) All payment requests shall be submitted using the completed Payment Request Form of the grant application package of Subsection R315-15-16.2(b) and signed by the individual authorized in the grant application.

(2) Payment requests shall include an itemization of all expenses by budget expense type.

(3) Payment requests shall include copies of documents supporting the claimed expenses, such as bids, receipts, canceled checks, and sole source justifications. Supporting documents shall contain sufficient information to establish purchases made or costs incurred. At a minimum, the documentation should include the name, amount, and date of purchase for the expense.

(4) All payment requests shall be submitted to the Director.

16.12 RELEASE OF FUNDS

(a) The Director shall review and approve all payment requests before payment is made. The grantee shall meet the following conditions before the Director shall process a payment request during the project term:

(1) The grantee has submitted any required project reports and the Director has deemed them to be satisfactory;

(2) The Director has received copies of applicable contracts and/or subcontracts; and

(3) The grantee has received applicable permits or permit waivers from governmental agencies and the Director has received copies of such documentation.

(b) After Director approval, payment requests shall be forwarded to the Division of Finance for issuance of pay warrants.

(c) If ten percent of the total grant was previously withheld, the Director shall release the remaining ten percent upon receipt and acceptance of the final report and final payment request.

16.13 G RANT CLOSEOUT

(a) The Director shall close out the grant when it is determined that all applicable administrative actions and all required work of the grant have been completed.

(b) Upon receipt of the final report, the Director shall ensure all work has been completed and all unexpended funds are refunded to the State.

(c) The grantee's obligations under the Terms and Conditions of the grant application package of Subsection R315-15-16.2(b) shall be deemed discharged only upon acceptance of the final report by the Director.

(d) The grantee shall retain all financial and project records, supporting documents, statistical records and other records of projects funded by this program. The Director, or his authorized representative, shall have access to all related records during progress of the project and for at least three years after completion.

 

KEY: [ financial assurance, hazardous waste, ]used oil, registration , grants, recycling

Date of Enactment or Last Substantive Amendment: [February 13, 2017]2018

Notice of Continuation: March 10, 2016

Authorizing, and Implemented or Interpreted Law: 19-6-704 ; 19-6-720

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