1. (a) To be considered for reimbursement under this subchapter, corrective action must be performed either as provided in subsection (b) of this section or in response to a release which:

   1. (1) results in contamination which penetrates beyond the excavation zone of the tank system and which is above action levels determined by the agency;
   2. (2) is ultimately confirmed by the agency, either before or after corrective action commences, provided that it shall be the burden of the person claiming monies under this subchapter to show both that a release which is eligible for reimbursement occurred and the expenses claimed are allowable and reimbursable; and
   3. (3) the confirmed release was initially discovered and reported to the agency on or before December 22, 1998.
2. (b) Subsection (a) of this section does not apply if the corrective action is specifically required by an order of the commission, or a written request or confirmation by the agency, and the release was initially discovered and reported to the agency on or before December 22, 1998.

3. (c) No payments shall be made by the agency under this subchapter for:

   1. (1) the owner/operator contribution described in §334.312 of this title (relating to Owner/Operator Contribution), which the agency may apportion in the case of multiple claimants as provided in §334.314(f) of this title (relating to Fund Payment Report);
   2. (2) any expenses for corrective action which exceed one million per occurrence;
   3. (3) any expenses relating to compensation for bodily injury or property damage;
   4. (4) any expenses for corrective action incurred for confirmed releases initially discovered and reported to the agency after December 22, 1998;
   5. (5) any expenses related to corrective action performed after September 1, 2005;
   6. (6) any expenses related to corrective action contained in a reimbursement claim filed with the agency after March 1, 2006; or
   7. (7) on or after September 1, 2006.

4. (d) No expenses for which reimbursement is claimed under this subchapter and no expenses which are to be applied to the owner/operator contribution shall be subject to reimbursement or applied to the owner/operator contribution unless the following conditions have been met.

   1. (1) An application for reimbursement must be filed by the owner or operator of a petroleum storage tank or his duly authorized representative, as required by §334.304 of this title (relating to Who May File Application).
   2. (2) Unless otherwise approved by the agency, a certification affidavit as provided in the application for reimbursement must be signed by all of the following: owner or operator of a petroleum storage tank, the application preparer, and the prime contractor and/or the prime corrective action specialist, as defined in §334.322 of this title (relating to Subchapter H Definitions).
   3. (3) The application has been filed within the time prescribed in §334.303 of this title (relating to When to File Application).
   4. (4) The person seeking reimbursement must be an eligible owner or operator, as defined in §334.322 and §334.310 of this title (relating to Subchapter H Definitions and Requirements for Eligibility, respectively) or they must be authorized by an eligible owner or eligible operator to receive such payment pursuant to subsections (i) - (k) of this section.
   5. (5) The expenses for which reimbursement is sought, and those which are to be applied to the owner/operator contribution must be allowable costs, as defined in §334.308 of this title (relating to Allowable Costs and Restrictions on Allowable Costs).
   6. (6) The allowable costs for which reimbursement is sought and those which are to be applied to the owner/operator contribution must be reimbursable, as defined in §334.309 of this title (relating to Reimbursable Costs).
   7. (7) An application for reimbursement has been filed in accordance with this subchapter which contains the information required by this subchapter.
5. (e) For purposes of this subchapter only, the persons listed in §334.310 of this title may be eligible owners or operators, provided that they meet the other criteria prescribed by this subchapter.
6. (f) All claims for assistance and reimbursement filed under this subchapter are subject to the availability of funds in the petroleum storage tank remediation fund.
7. (g) Nothing in this subchapter shall affect the liability or responsibility of an owner or operator of an underground or aboveground storage tank to take corrective action in response to a release pursuant to applicable law.
8. (h) Nothing in this subchapter shall be construed to create an entitlement to monies in the petroleum storage tank remediation fund or any other fund, and the commission reserves the right to amend or repeal without limitation any of the provisions of this subchapter, including provisions regarding eligibility and allowable costs.
9. (i) Payment made to persons other than the eligible owner or operator may only be made subject to subsections (j) and (k) of this section and may only be made to agents or assignees duly authorized to receive payment on behalf of an eligible owner or operator.
10. (j) Authorization for an agent or assignee to receive payment on behalf of an eligible owner or operator must be in writing and signed by the eligible owner or operator who is requesting payment. The authorization must clearly describe what funds the agent or assignee is authorized to receive. If the agency determines that the authorization is not clear as to the disposition of funds to which the eligible owner or operator is entitled, the agency may withhold payment and request written clarification from the eligible owner or operator. The agency may limit the number of agents or assignees who may receive payments for any one occurrence. Notwithstanding any review made or limitations imposed by the agency pursuant to this section, neither the State of Texas, nor the agency shall be responsible for insuring that payment is made to the parties as contemplated by the authorization. It is the responsibility of the eligible owner or operator and the agent requesting payment to insure that the agency is supplied with information sufficient to make the proper payments. The right to receive payment under this subchapter is not transferable for any purpose and only the people authorized to receive payment under this section are entitled to do so.

11. (k) No payment of funds will be made to any person other than the owner or operator under this subchapter except as follows:

    1. (1) the person authorized to accept payment on behalf of an owner or operator is:

       1. (A) a purchaser of the property where the release occurred and on which the claim for payment is based;
       2. (B) a person who holds a security interest in personal property or in fixture that is not attached to the real estate or lienhold interest on the real estate or fixture that is attached to the real estate where the release occurred and on which the claim for payment is based;
       3. (C) a person who has insured the owner or operator of petroleum storage tanks for pollution liability on or after July 17, 1990, and who has paid claims on that policy for remediation costs for which the tank owner may be reimbursed under this subchapter; or
       4. (D) any other person who holds legal or equitable title to the property where the release occurred and on which the claim for payment is based; and
    2. (2) the type of ownership interest required under paragraph (1)(A), (B), and (D) of this subsection is an interest in the surface estate of the property.
12. (l) The agency may require the execution of a contract of subrogation prior to the disbursement of payment.

Source Note:The provisions of this §334.302 adopted to be effective September 26, 1990, 15 TexReg 5209; amended to be effective March 4, 1992, 17 TexReg 1385; amended to be effective March 25, 1993, 18 TexReg 1687; amended to be effective June 7, 1993, 18 TexReg 3293; amended to be effective November 8, 1995, 20 TexReg 8800; amended to be effective November 23, 2000, 25 TexReg 11442; amended to be effective April 2, 2002, 27 TexReg 2522.