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Cost Guic;elines -{General Overview • ~p://oil.cdle.state.a III IIIIIIIII IIII III h~ml 999 Colorado Department of Labor and Employment /~o~e ~ 6 " ~7 ~ "g Oi! Inspection Section Colorado Petroleum Reasonable Cost Guidelines -General Overview Storage Tank Fund Article 1 1-1. STATEMENT OF PURPOSE In adopting these Reasonable Cost Guidelines (Guidelines), the intent of the Colorado Petroleum Storage Tank Committee (Committee) is to preserve the solvency of Colorado's Petroleum Storage Tank Fund (Fund) and to protect Colorado's environment and the health and safety of its citizens by encouraging prompt remediation of petroleum contamination in a technologically sound and cost-effective manner. The Committee believes the Guidelines are warranted by the following assumptions: ~ Petroleum Storage Tank Fund revenues will not increase beyond current levels produced by the maximum $100 per tank truckload environmental surchazge Reimbursement applications will continue to be submitted at or above current levels Allowable cost categories will not change significantly 1-2. EFFECTIVE DATE The Guidelines, including the Listed Environmental Consultant Program, will apply to all work performed on or after July 1, 1997. For work performed before July 1, 1997, the Guidelines may be used to help the Committee determine a reasonable cost for a specific activity when the amount requested for reimbursement is judged to be excessive by the staff of the Colorado Department of Labor and EmploymendOil Inspection Section (OIS). 1-3. ADJUSTMENTS Any change to Colorado's Rensonnble Cosr Guidelines must be approved by the Committee. Any adjustment for inflation or deflation will be based on figures provided by the Colorado Department of Labor and Employment (CDLE). No such adjustment will be made before July I, 1998. The Committee may also adjust the Guidelir:es to preserve Fund solvency. Any such adjustment will be based on reimbursement projections provided by the OIS. Such adjustments will not apply to work already performed. 1-4. IMPACT ON REIMBURSEMENT The reasonable rates established in the Guide/fries are the maximum that will be recommended for reimbursement. Requests for reimbursement at rates at or below those established in the Guidelines shall be presumed to be reasonable, and therefore reimbursable unless otherwise disqualified. Requests for reimbursement at rates that exceed those established in the Guidelines shall be presumed to be unreasonable, and therefore subject to reduction to the rates in the Guidelines, unless [he Fund Applicant can rebut the presumption. In order for Applicants to have the opportunity to rebut a presumption of unreasonableness, the OIS shall advise an Applicant in writing of those costs identified as exceeding the Guidelines before presentation of the application to the Committee. Any costs that exceed a rate 1 of 3 6/30/99 2:56 PM