18 AAC 78.513. Determination and conditions of financial assistance

(a) An award of financial assistance under this chapter is contingent upon

(1) the department's approval of the completed application and, if applicable, approval of the

(A) site assessment conducted under 18 AAC 78.090;

(B) corrective action plan for financial assistance awarded under 18 AAC 78.515 or 18 AAC 78.521;

(D) firm or person proposed to perform the work, and the adequacy of professional errors and omissions insurance; the amount must be consistent with the scope of the project, but no less than a minimum coverage limit of $500,000 combined single limit per occurrence; and

(E) time schedule for completing the work;

(2) the project ranking among those projects for which financial assistance is available, if the award of financial assistance is under AS 46.03.420 , 46.03.422, or 46.03.430;

(3) sufficient money being allocated from the storage tank assistance fund established by AS 46.03.410 to the program from which financial assistance is requested; and

(4) the financial assistance limits in AS 46.03.420 (b) and (e), 46.03.422(g), and 46.03.430(a) and (c).

(b) The department will include conditions in an award of financial assistance that require the owner or operator to

(1) conduct the work within an approved time schedule;

(2) submit progress reports at stated intervals;

(3) resubmit cleanup plans for department approval if site conditions or other factors dictate a change in procedures;

(4) allow department personnel to enter and inspect the project site at reasonable times;

(5) maintain project accounts and records to support the eligibility of expenditures that clearly separate eligible and ineligible project costs; the accounts and records required under this paragraph must be kept until the project is complete, the cost records are verified by the department, and an audit, if requested, is completed by the department or a designee of the department;

(6) obtain a title or an easement necessary to provide clear title or authority to access the project site;

(7) account for the balance of the financial assistance by providing proof of payment for invoices or bank statements;

(8) if the facility is to remain in service, provide proof of ability to meet the financial responsibility requirements of this chapter after completing a project receiving financial assistance under AS 46.03.420 , 46.03.422, or 46.03.430; and

(9) comply with other terms and conditions considered necessary by the department to ensure that the project is completed in accordance with the approved plans.

(c) An award of financial assistance under this chapter, except for reimbursement, remains the property of the state until the award is spent for an eligible cost. The owner or operator shall maintain a separate bank account to be used solely for payment of eligible costs, and the account must be clearly identified for that purpose. The owner or operator may not place any other money in this account, nor use that account for another purpose. If, because of debts or obligations of the owner or operator, a person asserts a lien, or seeks to attach, execute against, or in any way make a claim against money awarded for financial assistance, the owner or operator shall immediately

(1) advise that person that the money is the property of the state;

(2) take all reasonable steps to prevent seizure of the money; and

(3) notify the department of that person's action

(d) If an application for financial assistance under this chapter would result in the owner or operator obtaining financial assistance in excess of 100 percent of eligible project costs, financial assistance will be limited to the amount necessary to finance no more than 100 percent of eligible project costs.

(e) The department will, in its discretion, terminate an award of financial assistance under this chapter if the department determines that the owner or operator obtained the financial assistance based on the submission of false or misleading information or failed to

(1) comply with the conditions of financial assistance;

(2) report a release of petroleum as required under state or federal law;

(3) start work within one year after the date of the financial assistance award letter;

(4) follow approved plans, schedules, conditions, or procedures in completing the project or administering the financial assistance;

(5) use a person certified under this chapter to perform the work described in 18 AAC 78.455;

(6) sign and return to the department the financial assistance award letter and, if applicable, the award letter amendment within 60 days after receipt of the letter or letter amendment; the department will, in its discretion, modify this deadline if the delay is due to an action of the department; or

(7) pay contractors within 15 working days of receiving payment from the department for eligible costs.

(f) The department will, in its discretion, require an eligible owner or operator to pay the full cost of a tank tightness test, site assessment, risk assessment, containment, corrective action, cleanup, UST upgrade, or closure if the storage tank assistance fund established by AS 46.03.410 contains insufficient money for all eligible projects. The owner or operator remains eligible for financial assistance if the applicable requirements of 18 AAC 78.508, 18 AAC 78.509, 18 AAC 78.515, 18 AAC 78.520, and 18 AAC 78.521 are met. The owner's or operator's project priority ranking under 18 AAC 78.534 will not be lowered because the work was completed or paid for before financial assistance is awarded.

(g) Costs incurred by the owner or operator before submission of an application for financial assistance under this chapter will be evaluated by the department in accordance with the requirements of 18 AAC 78.508, 18 AAC 78.509, 18 AAC 78.515(b) and (c), 18 AAC 78.520(a) and (d), and 18 AAC 78.521.

History: Eff. 1/27/94, Register 129; am 6/23/94, Register 130; am 11/3/95, Register 136; am 4/16/2000, Register 154

Authority: AS 46.03.020

Editor's note: The substance of this section was formerly designated as 18 AAC 78.550.

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