No. 38767 (Amendment): Section R311-209-4. Recovery of Management and Oversight Expenses

(Amendment)

DAR File No.: 38767
Filed: 08/14/2014 02:57:03 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

In the 2014 General Legislative Session (H.B. 138) changed the Utah Underground Storage Tank (UST) Act (Subsection 19-6-420(10), to be effective 07/01/2015), stating that the director of the Division of Environmental Response and Remediation (DERR) may recover, from the responsible party, expenses incurred by the division for managing and overseeing the abatement, and investigation or corrective action of UST releases not covered by the Petroleum Storage Tank (PST) Fund. The proposed section provides a way for the director to meet the statutory language ("may" recover, rather than "shall" recover) and allow the responsible party to apply for an exemption from reimbursing the DERR for those oversight costs in cases where the responsible party is unable to pay.

Summary of the rule or change:

The proposed section outlines factors that may be used by the Division director in determining whether to recover expenses incurred by the division for managing and overseeing the abatement, and investigation or corrective action of releases not covered by the PST Fund. These factors include: 1) the responsible party's ability to pay, and 2) other relevant factors the director determines to be appropriate. The responsible party may apply for an exemption from paying these expenses. The director may grant an exemption based upon the application and supporting documentation, considering the factors outlined in the section.

State statutory or constitutional authorization for this rule:

• Section 19-6-105
• Section 19-6-409
• Section 19-6-420

Anticipated cost or savings to:

the state budget:

Cost to the state budget would be staff time to review the exemption applications from responsible parties. The cost would be approximately $8,600 if applications are received for 15% of the current open releases not covered by the PST Fund. The actual cost will depend on the number of exemption applications received. Granting of exemptions would result in a loss of revenue to the state budget. The total loss would depend on the number of exemptions granted and the amount not recovered for each release, which is specific to each release. An estimate of staff time currently expended toward these oversight costs is approximately $3,240 per site per year.

local governments:

The proposed rule could result in savings for a local government that is a responsible party for an UST release. The government entity could qualify for an exemption from reimbursing the Division for the Division's oversight expenses for UST cleanups not covered by the PST Fund. Aggregate savings would depend on the number of responsible parties that qualify and the dollar value of the exempted expenses. An estimate of typical oversight expenses is approximately $3,240 per site per year.

small businesses:

The proposed rule could result in savings for a small business that is a responsible party for an UST release. The business could qualify for an exemption from reimbursing the Division for the Division's oversight expenses for UST cleanups not covered by the PST Fund. Aggregate savings would depend on the number of responsible parties that qualify and the dollar value of the exempted expenses. An estimate of typical oversight expenses is approximately $3,240 per site per year.

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

The proposed rule could result in savings for a responsible party for an UST release. The responsible party could qualify for an exemption from reimbursing the Division for the Division's oversight expenses for UST cleanups not covered by the PST Fund. Aggregate savings would depend on the number of responsible parties that qualify and the dollar value of the exempted expenses. An estimate of typical oversight expenses is approximately $3,240 per site per year. Non-fiscal impacts--The impacts of this rule are primarily fiscal, resulting in savings to responsible parties who are able to qualify for the exemption from reimbursing the Division for oversight expenses.

Compliance costs for affected persons:

No significant costs are anticipated; the cost of preparing an application for exemption should be minimal, and would be offset by receiving an exemption and not being required to reimburse oversight costs.

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

This new section allows persons or companies who have releases not covered by the PST Fund to retain funds by applying for and receiving an exemption from reimbursing the state for oversight expenses if there is a genuine hardship or inability to pay. The benefits to the business in these situations outweigh the state's interest in receiving reimbursement for oversight expenses.

Amanda Smith, Executive Director

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

Environmental Quality
Environmental Response and RemediationRoom First Floor
195 N 1950 W
SALT LAKE CITY, UT 84116-3085

Direct questions regarding this rule to:

• Gary Astin at the above address, by phone at 801-536-4103, by FAX at 801-359-8853, 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:

10/01/2014

Interested persons may attend a public hearing regarding this rule:

• 09/16/2014 02:00 PM, Department of Environmental Quality, 195 N 1950 W, Room 1015, Salt Lake City, UT

This rule may become effective on:

10/10/2014

Authorized by:

Brent Everett, Director

RULE TEXT

R311. Environmental Quality, Environmental Response and Remediation.

R311-209. Petroleum Storage Tank Cleanup Fund and State Cleanup Appropriation.

R311-209-4. Recovery of Management and Oversight Expenses.

(a) Beginning July 1, 2015, the Director, in determining whether to recover management and oversight expenses pursuant to Utah Code Ann. 19-6-420(10), may consider the following factors:

(1) The responsible party's ability to pay; and

(2) Any other relevant factors the Director determines to be appropriate.

(b) At any time before or after the Director initiates collection of management and oversight expenses, the responsible party may apply to the Director for an exemption from paying these expenses. The responsible party shall furnish all documentation and information in the form and manner as prescribed by the Director in support of the application. The Director, in his sole discretion, may grant an exemption based on the responsible party's application in consideration of the factors listed in Subsection (a).

 

KEY: petroleum, underground storage tanks[*]

Date of Enactment or Last Substantive Amendment: [October 9, 1998]2014

Notice of Continuation: April 10, 2012

Authorizing, and Implemented or Interpreted Law: 19-6-105; 19-6-409; 19-6-420

 

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