Allowable Costs

Section 8-3 Allowable Costs

  1. Allowable costs are those costs and expenses which arise directly from the performance of necessary corrective action in accordance with the requirements of the Director and are deemed reasonable by the Committee subject to the limitations prescribed by this section.
  2. Allowable costs shall include but not be limited to the following:
    1. Temporary provision of a water supply utilized specifically for domestic consumption;
    2. Abatement of impacts and immediate threats of impact to human health, safety, and the environment;
    3. Collection and analysis of surface and subsurface soil and water, free phase hydrocarbons, and vapor samples;
    4. Emplacement of soil borings and/or monitor wells for remediation purposes;
    5. Removal, storage, treatment, recycling, transport, and disposal of free phase hydrocarbons, vapors, contaminated soils, contaminated water in accordance with applicable laws;
    6. Removal and disposal (including transport) of soils and pavement where removal is necessary to the performance of corrective action;
    7. Identification and testing of affected or potentially affected drinking water sources;
    8. Design of plans for site assessment and remediation;
    9. Permitting, acquisition, installation, startup, operation and maintenance of site assessment and remediation systems, including monitoring;
    10. Temporary relocation of utility structures when necessary to the performance of corrective action;
    11. Preparation of technical reports required pursuant to the requirements of these regulations;
    12. The fair market value of access to property outside of the facility boundaries where such access is necessary for the performance of corrective action;
    13. Performance of any corrective action measure, which is specifically required by a section of these regulations, or an order of the Director, or a written request or confirmation by the Committee;
    14. Equipment costs which are related solely to remediation. If the costs of the equipment is reimbursed by the Fund, when the equipment is no longer needed any salvage value of the equipment shall be returned to the Fund.
    15. Bodily injury or property damage suffered by third parties.
    16. Any other costs determined by the Committee to be allowable in accordance with the provisions of these regulations.
    17. Costs associated with preparing and filing an application for reimbursement not to exceed 1% of the net allowable reimbursement per application up to a maximum of $2,000 per event.

Section 8-4 Unallowable Costs

  1. Costs and expenses which are not applicable to the performance of necessary corrective action in accordance with the requirements of the Director or are deemed unreasonable by the Committee are unallowable for reimbursement.
  2. The following types of costs are not allowable for reimbursement.
    1. The cost of replacement, repair, maintenance, testing and upgrading of affected tanks and associated piping.
    2. The loss of income or profits, including without limitation, the loss of business income arising out of the review, processing, or payment of an application or request for assistance under these regulations.
    3. Decreased property values.
    4. Bodily injury or property damage except for injuries or damages suffered by third parties.
    5. Fees for legal services.
    6. Any costs associated with prosecuting an application for reimbursement under these regulations.
    7. The costs of making improvements to the facility beyond those that are required for corrective action.
    8. Costs, including those associated with contamination assessments performed, for any purpose, where no corrective action is required by Colorado statutes and regulations.
    9. Costs of compiling and storing records.
    10. Any activities, including those required by these regulations, which are not conducted in compliance with applicable state and federal environmental laws, including laws relating to the transport and disposal of waste.
    11. Penalties or payment for damages assessed by the Committee, Director, the Department of Public Health and Environment, and/or the Federal government.
    12. At the Committee’s sole discretion, claims for reimbursement relating to a tank owned or operated by a person who has been convicted of a violation of any law or rule that relates to the installation, operation, or management of petroleum storage tanks.
    13. Costs in excess of those considered reasonable by the Committee.
    14. At the Committee’s sole discretion, cleanup costs resulting from negligence or misconduct on the part of the owner/operator or applicant.
    15. Subject to Committee policy, costs incurred during the closure of a tank.
    16. Costs for the rental of equipment owned by the applicant if the equipment was previously reimbursed by the Fund.
    17. Interest paid on loans.
    18. Costs that are a part of normal business expenses (i.e., insurance)
  3. Any attempt by an applicant to claim reimbursement under circumstances when the applicant knew or should have known (this includes knowledge held by the applicant’s environmental consultant) that some or all costs would be unallowed authorizes the Committee to reduce otherwise allowable costs submitted by the applicant (whether on the same or a different application). Any reduction imposed under this section shall be equal to the amount of the unallowed costs. This subsection applies only to the unallowed costs in subsections 8-4(b)(1), (6), (7), (8), (11), (15) and (16) above and only to applications received after March 1, 1997.