Title 18 . Environmental Conservation

Chapter 78 . Administrative Enforcement

Section 555. Payment procedures

18 AAC 78.555. Payment procedures

(a) Repealed 4/16/2000.

(b) The owner or operator who incurs eligible costs that qualify for financial assistance awarded under AS 46.03.420 or 46.03.430 may request payment either

(1) as a lump sum if the project is completed and the department has received and approved paid invoices reflecting the work accomplished in accordance with (2)(A) - (2)(C) of this subsection; or

(2) in installments as necessary, upon receipt and approval by the department of payment authorization forms that are supplied by the department, completed and submitted by the owner or operator, and based on work completed, as evidenced by copies of original invoices descriptive of the work that

(A) show the dates when and locations where the work was performed;

(B) unless otherwise approved by the department are supported by

(i) copies of time sheets;

(ii) descriptions of materials and parts;

(iii) if appropriate under AS 45.75.282 , a copy of the delivery tickets with a copy of the appropriate weights and measures certification report;

(iv) listings of rental rates by equipment types; and

(v) listings of subcontractor charges that are identified in detail and that explain the work accomplished, the materials used, the equipment rentals, and the labor costs; and

(C) exclude the portion of the costs not payable by the department under AS 46.03.420 (b) or 46.03.430(a) or that exceed the budgeted grant or loan amount for which a change order was not pre-approved by the department.

(c) The disbursement of progress payments by the department does not constitute acceptance of any item as an eligible project cost until the final project costs are received, verified, and determined to be eligible by the department.

(d) Except as provided in this section, the owner or operator, who receives financial assistance under this chapter shall submit proof of payment of invoices to the department within 60 days after the owner or operator receives payment of the financial assistance.

(e) The department will base its final payment for financial assistance awarded under AS 46.03.420 , 46.03.430, or sec. 3, ch. 107, SLA 1994 on the actual eligible project expenditures. The department will not pay more than the actual eligible project expenditures. The department or a designee of the department will, in its discretion, conduct an audit to verify the actual eligible project expenditures.

(f) The department will, in its discretion, amend a grant or loan to cover the costs of verified and reasonable contingencies or cost increases of up to 10 percent of the original grant offer.

(g) The department will not pay for expenses incurred or reported after the owner or operator submits a final cost statement and project completion certification.

(h) If an overpayment of eligible costs is verified by audit or if an award of financial assistance is terminated under 18 AAC 78.513(e) , the department will, in its discretion, seek recovery of payments, plus interest charged at the rate set out in AS 45.45.010 and any other costs or fees allowable under law.

(i) The department will, in its discretion, issue a two-party payment to an owner or operator that receives a grant and a contractor for the eligible costs of work completed.

(j) The department will provide the owner or operator who receives financial assistance under this chapter with an annual statement of financial assistance received for use in reporting taxable income to the Internal Revenue Service.

History: Eff. 3/25/91, Register 118; am 8/21/91, Register 119; am 1/27/94, Register 129; am 6/23/94, Register 130; am 1/22/99, Register 149; am 4/16/2000, Register 154

Authority: AS 46.03.020

AS 46.03.360

AS 46.03.365

AS 46.03.410

AS 46.03.420

AS 46.03.430

Sec. 3, ch. 107,

SLA 1994

Sec. 16, ch. 70,

SLA 1999