1. (a) Authorization for reimbursement. This subchapter authorizes the reimbursement of the expenses of corrective action taken in response to a release of:

   1. (1) petroleum products from a petroleum storage tank;
   2. (2) hydraulic fluid and other substances from a hydraulic lift system located at a vehicle service and fueling facility; and
   3. (3) spent oil and other substances from spent oil tanks located at a vehicle service and fueling facility; provided that the tank listed under this subsection is also subject to regulation under Subchapter D of this chapter (relating to Release Reporting and Corrective Action).

2. (b) Deadline for Commencing Corrective Action. This subchapter applies only under the following conditions:

   1. (1) the confirmed release or releases which necessitated the corrective action were reported to the executive director on or before December 22, 1998; and
   2. (2) the release is confirmed by the executive director.
3. (c) Expenses Considered for Payment--Time Frame in Which Corrective Action Performed. Subject to the other requirements of this subchapter, the expenses which may be considered for payment from the Petroleum Storage Tank Remediation Fund are limited to expenses of corrective action which was performed for the owner or operator on or after September 1, 1987, and conducted in response to a confirmed release that was initially discovered and reported to the commission on or before December 22, 1998. Expenses for corrective action performed prior to September 1, 1987, are not subject to reimbursement or payment. No expenses for corrective action will be reimbursed on or after September 1, 2001.

4. (d) Expenses covered by House Bill 1214 not covered by prior law. Subject to the other requirements of this subchapter, expenses for corrective action covered by House Bill 1214, but which were not allowable under prior law may be subject to reimbursement. In order to process applications for new expenses allowed under House Bill 1214, the executive director may prescribe applications and processing procedures for claims relating to expenses which were not allowable prior to June 16, 1991, consistent with the following guidelines:

   1. (1) the procedures shall allow for the most expeditious processing possible for all types of applications, new and old; and also
   2. (2) the procedures shall be consistent with sound management of the petroleum storage tank remediation fund.
5. (e) Limitation. This subchapter shall not be construed to authorize reimbursement or payment from the petroleum storage tank remediation fund in situations other than those described in subsection (a) of this section.

6. (f) Eligibility under other rules. An owner or operator of a petroleum storage tank who is not subject to this subchapter or who does not qualify as an eligible owner or operator under this subchapter is not automatically precluded from qualifying under any other rules which the commission may adopt to implement House Bill 1588, however:

   1. (1) any person seeking reimbursement or assistance under this subchapter must meet the requirements of this subchapter; and
   2. (2) any person seeking reimbursement or assistance under any other rules which the commission may adopt must meet the requirements of those rules.

7. (g) Operative date for this subchapter. This subchapter applies as follows.

   1. (1) This subchapter authorizes applications for payment from the petroleum storage tank remediation fund to be filed and processed pursuant to its terms on and after July 17, 1990, and ratifies any actions relating to filing and processing applications taken in accordance with this subchapter.
   2. (2) This subchapter authorizes the executive director to make payments pursuant to its terms from the petroleum storage tank remediation fund on and after July 17, 1990, and ratifies any payments made in accordance with this subchapter.
   3. (3) All costs incurred in the course of performing corrective action which are incurred on or after September 1, 1987, will be subject to the terms of this subchapter for the purposes of determining whether those costs are allowable. Nothing in this paragraph shall be construed to invalidate payments made by the executive director under prior rules of the commission.
8. (h) If any section, subsection, paragraph, subparagraph, clause, or subclause of this subchapter is held invalid, such invalidity shall not affect any other section, subsection, paragraph, subparagraph, clause, or subclause which can be given effect without the invalid provision, and to this end the provisions of this subchapter are declared to be severable.

9. (i) Priorities for reimbursement applications to be processed during the 1994-1995 biennium pursuant to Senate Bill 1243. The following provisions apply to the priority payment process for reimbursement applications which is set forth in paragraph (5) of this subsection.

   1. (1) Applications within the priority system will be processed in accordance with the number of tanks owned or operated by the applicant, and further prioritized, as necessary, based upon the date the application is received by the executive director.
   2. (2) Only those applications received prior to September 1, 1993, shall be eligible for payment under this subsection.
   3. (3) The executive director may reimburse applicants within a priority category within the priority system under paragraph (5) of this subsection if there are insufficient funds to complete the priority category, on a pro rata basis.

   4. (4) Applications to be processed with Priority 4 applications.

      1. (A) Regardless of the number of tanks owned or operated, applications from the following shall be processed with Priority 4 applications:

         1. (i) entities (other than municipalities and local government entities) which have satisfied or can satisfy the criteria set forth in §334.95 of this title (relating to the Financial Test of Self-Insurance) for owners and operators of underground storage tanks; and
         2. (ii) state and federal entities.
      2. (B) Information on satisfaction of self-insurance requirements shall be provided by authorized representatives of applicants by the deadline set forth in the executive director's letter requesting certification of same. The executive director may request additional information, as necessary, to support the certification. Failure to submit the certification form or any additional requested information by the stated deadline may result in an application being processed as a Priority 4 application.
      3. (C) Notwithstanding the provisions of subparagraph (A) of this paragraph, entities which satisfy the criteria for self-insurance pursuant to subparagraph (B) of this paragraph and are nonprofit entities shall be reimbursed under Priority 3 as described in paragraph (5)(C) of this subsection.
      4. (D) Information on entities' nonprofit status shall be provided by authorized representatives of applicants by the deadline set forth in the executive director's letter requesting the certification. The executive director may request additional information, as necessary, to support the certification. Failure to submit the certification form or any additional requested information by the stated deadline may result in an application being processed as a Priority 4 application.

   5. (5) Priority system. Subject to the conditions set forth in paragraphs (1)-(4) of this subsection, all applications received will be processed in accordance with the following:

      1. (A) Priority 1--applications received from applicants who own or operate less than 13 tanks;
      2. (B) Priority 2--applications submitted by applicants who own or operate between 13 and 99 tanks;
      3. (C) Priority 3--applications submitted by applicants who own or operate between 100 and 999 tanks; and
      4. (D) Priority 4--applications submitted by applicants who own or operate 1,000 tanks or more.
10. (j) Suspending payments from the PSTR fund. The executive director may suspend payments from the fund, in whole or in part, as necessary to preserve the viability of the fund.

11. (k) Effective September 1, 1995, the executive director shall consider and process a claim by an eligible owner or operator for reimbursement from the petroleum storage tank remediation fund in the order in which it is received, with the following provisions:

    1. (1) The executive director shall consider and process all claims by eligible owners and operators for reimbursement from the fund that were received before September 1, 1995, before the executive director considers a claim received after that date.
    2. (2) The executive director may not consider, process, or pay a claim for reimbursement from the petroleum storage tank remediation fund for corrective action work begun after September 1, 1993, and without prior approval until all claims for reimbursement for preapproved corrective action work have been considered, processed, and paid.

Source Note:The provisions of this §334.301 adopted to be effective September 26, 1990, 15 TexReg 5209; amended to be effective March 4, 1992, 17 TexReg 1385; amended to be effective June 7, 1993, 18 TexReg 3293; amended to be effective November 25, 1993, 18 TexReg 8355; amended to be effective February 1, 1995, 20 TexReg 285; amended to be effective November 8, 1995, 20 TexReg 8800.