(b)

1. (1) A reimbursement for corrective action costs shall not be made from the trust fund until the deductible for the occurrence has been expended by the owner or operator.
2. (2) An owner or operator may not submit an application for reimbursement for corrective action costs until he or she has expended the deductible.
3. (3) Proof of payment of the deductible must be provided to the Division of Environmental Quality prior to approval of reimbursement for any corrective action costs.

4. (4)

   1. (A) For purposes of meeting the deductible, proof of payment shall consist of a:

(i) Receipt;

1. (ii) Copy of a money order; or

   1. (iii) Canceled check.

   2. (B) An IOU, a discharge in bankruptcy, a conditional payment, an installment payment, or a down payment shall not be considered proof of payment.

      1. (c) The only corrective action costs that shall be credited toward the deductible are costs that are:
2. (1) Incurred in response to a release that has been timely reported to the division; and
3. (2) Found to be reasonable, allowable, and necessary.