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UST | Preapproval Program Cost Considerations

Underground Storage Tank (UST) Preapproval Program

Cost Considerations

Revised On: Sept. 5, 2024 - 1:10 p.m.

The following information describes reimbursement requirements and limitations for travel costs and examples of costs that are not eligible for reimbursement in the Preapproval Program.

Travel Cost Requirements

  • ADEQ will only reimburse costs for travel such as lodging, meals and vehicle mileage if the person is in travel status. Travel status is only applicable if the UST facility is more than 50 miles from the company office.
  • Lodging reimbursement is limited to the applicable state rate. Invoices for lodging showing “paid in full” must be submitted to be reimbursed. 
  • Reimbursement for meals is limited to the applicable state rate. Meal receipts are required. Costs associated with the purchase of alcoholic beverages are not reimbursable.
  • Vehicle mileage reimbursement is limited to the applicable state rate.
  • Markup is not allowed for travel costs (e.g., lodging, meals, vehicle costs, etc.).

State rates are available at the Arizona General Accounting Office | View >

Ineligible Costs

Reimbursement under the Preapproval Program is limited to eligible corrective action costs.  Below are examples of costs that are not reimbursable:

  • Costs covered by insurance claims or tank service agreements.
  • Mileage and per diem costs in excess of state rates.
  • Late payment fees or penalties.
  • Expedited fees.
  • Remedial system equipment repairs and replacements (other than routine maintenance).

Non-Regulated

  • All costs associated with a discharge from above-ground storage tanks.
  • Costs related to contaminants other than petroleum products.

General – Not Corrective Action

  • The Applicant’s time coordinating with and supervising their consultant and contractors.
  • Costs associated with the preapproval application process outside of Arizona Revised Statutes § 49-1053(A)(4).
  • Costs associated with reimbursement requests.
  • Costs associated with business interruptions.
  • Costs associated with third-party damages or claims.
  • Legal costs.
  • Costs for pursuing coverage against financial assurance mechanisms or alternate insurance.
  • Costs for insurance.
  • Costs for researching potentially responsible parties.
  • Site restoration costs due to contractor negligence.
  • Costs for damage not directly related to corrective actions. 
  • Costs for site upgrades to a condition better than what existed prior to corrective actions.
  • Costs for storage of equipment and supplies.
  • Costs for rental of equipment that is not used onsite.
  • Costs for rental of remedial equipment that is not in use.

Noncorrective Action

  • Costs for the abandonment in place of an underground storage tank system.
  • Costs for the permanent closure of an underground storage tank system unless it is required for remediation.