18 AAC 78.521. Tank cleanup loan application process

(a) To apply for a loan under AS 46.03.422 , an owner or operator must file with the department

(1) a completed application for financial assistance for cleanup of a UST, on a form provided by the department; each individual in a partnership or association, and each individual owning 20 percent or more of a corporation must submit an application;

(2) a letter of intent stating the amount requested and the intended use of the proposed loan money, on a form provided by the department;

(3) a schedule of acceptable collateral, on a form provided by the department;

(4) an individual financial statement, on a form provided by the department; each individual in a partnership or association, and each individual owning 20 percent or more of a corporation, must submit an individual financial statement;

(5) a statement of projected income and expenses for the following year's operating plan, on a form provided by the department;

(6) a signed credit authorization, on a form provided by the department;

(7) copies of the owner or operator's federal income tax returns for the preceding three years; each individual in a partnership or association, and each individual owning 20 percent or more of a corporation must submit tax returns;

(8) consent to release information, on a form provided by the department;

(9) as requested by the department, title reports, title insurance, appraisals, or surveys; the department will request this information if it determines that additional information is needed to establish adequate collateral; and

(10) any other information that might be helpful to the owner or operator in demonstrating eligibility for a loan, as requested by the department.

(b) The department will process loan requests without all the information described in (a) of this section if the department determines that the information is not necessary in order for the department to make the lending decision.

(1) release must have occurred before December 22, 1993;

(2) owner or operator must have complied with the applicable requirements of AS 46.03.420 , AS 46.03.422 , and 18 AAC 78.500 - 18 AAC 78.560, except as provided in sec. 3, ch. 107, SLA 1994;

(3) owner or operator must have submitted a cleanup workplan and associated documents under 18 AAC 78.508 - 18 AAC 78.509;

(4) costs must be, or must have been, incurred on or after September 5, 1990; and

(5) the owner or operator must have reported a release, if any, of petroleum from the UST that is the subject of the application as required by state or federal law applicable at the time the owner or operator first suspected the release.

(d) The following costs are eligible for a loan under this section:

(1) engineering or hydrogeologic investigations;

(2) preparation of reports, designs, schedules, or plans;

(3) initial abatement, containment, release investigation, and risk assessment; costs for those items include costs incurred during a site characterization and assessment conducted under 18 AAC 78.090 after contamination has been detected;

(4) contracted labor or equipment changes;

(5) testing of soil or water samples;

(6) corrective action, including treatment and disposal of contaminated soil, vapors, liquids, sludges, and substandard USTs; and

(7) work performed by the owner or operator or by an employee of the owner or operator, if the department approves the labor and equipment charge rates and the number of hours charged to the project.

(e) Costs listed in 18 AAC 78.514(b) are considered ineligible for a loan under this section.

(f) The department will determine an owner or operator's eligibility for a loan under this section after the owner or operator complies with 18 AAC 78.508.

(g) A loan made under AS 46.03.422 for risk assessment, containment, corrective action, and cleanup of petroleum

(1) is limited to the maximum amounts authorized by AS 46.03.422 (g);

(2) must be repaid in accordance with a schedule established by the department, not to exceed 20 years; and

(3) must be secured by personal guarantees from each individual in a partnership or association, and each individual owning 20 percent or more of a corporation; the department will waive the requirements of this paragraph if the department determines that collateral provided makes personal guarantees unnecessary and that the number of personal guarantees required would be unreasonable; and

(4) must be secured by a lien or by collateral equal to or greater than the value of the loan.

History: Eff. 4/16/2000, Register 154

Authority: AS 46.03.020

Sec. 16, ch. 70,

SLA 1999

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