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STATE OF NEW HAMPSHIRE

PPeettrroolleeuumm RReeiimmbbuurrsseemmeennttFFuunnddPPrrooggrraammRSA 146-D, RSA 146-E, RSA 146-F and RSA 146-G

GGuuiiddaannccee MMaannuuaallPolicies, Procedures & Rules for Reimbursement

Oil Fund Disbursement Board

January 2012


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PREFACE

This publication provides information, guidance, forms and procedures for the NewHampshire Petroleum Reimbursement Fund Program, administered by the Oil Fund

Disbursement Board (Board). The program includes four dedicated fundsestablished by the Legislature to provide financial assistance for the cleanup ofpetroleum contamination. The funds provide assistance for gasoline, diesel, oil, fueloil, motor oil, used motor oil and gasoline ether contamination (typically MtBE).

The document is organized in seven sections including: Program Overview; KeyProvisions of Policies, Rules & Statutes; Achieving & Maintaining Facility OperationalCompliance; Work Scope & Budget Approval; Reimbursable Corrective Action Costs;Unit-Based & Project-Based Costs; and How-To Obtain Fund Program Coverage& Submit Reimbursement Requests. The Appendix includes cost tables, forms,

policy statements, rules, and statutes (all available as separate documents).Four fact/guidance sheets appear at the end of the Appendix. These are: QuickReference Guide; Overview of Facility Requirements; Information Resources; andParticipation in Web-Based Reimbursement Request Submittal. Contact theindividuals on the resource list if you have questions in their specialty area. Inaddition:

Program Note: Important information ishighlighted throughout the documentusing this Program Note format.

This January 2012 N.H. Petroleum Reimbursement Fund Program Guidance Manualreplaces the manual originally published in October 2003, subsequent revisions, andprecursor Board documents including the Fund Program Description and Report onUnit-Based & Project-Based Costs.

The Board and Department of Environmental Services strongly encourage the use ofelectronic media when submitting technical documents, work scopes, andreimbursement requests, using the DES OneStop Data Provider system:

https://www2.des.state.nh.us/OnestopDataProviders/DESLogin.aspx


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N.H. Petroleum Reimbursement Fund Program Guidance Manual January 2012i

TABLE OF CONTENTS

PAGE

I. OVERVIEW 1New Hampshire Petroleum Reimbursement Fund Program

AdministrationPetroleum Storage Facility & Contamination Source Site Owner ResponsibilitiesRelated ProgramsWhere Do I Start & What Steps Do I Follow To Access The Funds?

II. KEY PROVISIONS OF STATUTES, RULES, & POLICIES 4Corrective Action LiabilityPetroleum Storage Facilities & Gasoline Ether Contamination

Source PropertiesPublic & Private Water SuppliesOwnersOwnership Transfer & Fund Program CoverageApplicantsPetroleum Storage Facility Operating RequirementsGasoline Ether Source Property RequirementsFund Program Projects & Other ContaminationPrivate Insurance CoveragePetroleum Discharges & Contamination DiscoveryFund Program Coverage Limits & Deductibles

Usual & Customary Market Rates, Or CostsWork Scope & Budget ApprovalCorrective Action Performance StandardsReimbursable CostsReimbursement Request Submittals

III. ACHIEVING & MAINTAINING FACILITY COMPLIANCE 11When Is Facility Compliance Required?What Is Facility Compliance & How Do I Achieve It?

Active Facility Compliance Inspections

Compliance & Fund EligibilityIV. WORK SCOPE & BUDGET APPROVAL 13

Corrective Action PhasesUsual & Customary Rates, Or Cost

Actual CostWhen Is Work Scope Approval Required?Work Scope Approval Process


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N.H. Petroleum Reimbursement Fund Program Guidance Manual January 2012ii

TABLE OF CONTENTS

PAGECompetitive Pricing, Contract & Performance RequirementsPublic & Private Water Supplies

How Is Corrective Action Or Other Work Implemented?Using Work Scope & Budget FormsOvertimeHow Do I Prepare & Submit A Work Scope & Budget?What Happens When A Work Scope & Budget Is Submitted?

V. REIMBURSABLE COSTS 18Reimbursable Corrective Action CostsCorrective Action Cost LimitationsReimbursable Public Water Supply Costs

Property Damage RestorationReimbursable Third-Party Damage Costs

VI. UNIT-BASED & PROJECT-BASED COSTS 21Unit-Based & Project-Based CostsUsing Cost Data

Applicability, Recommended Billing Practices & Cost LimitationsProject-Based Cost Category Descriptions

VII. HOW TO OBTAIN FUND PROGRAM COVERAGE & RECEIVEREIMBURSEMENT 29

How Can I Secure Fund Program Coverage?I Have Petroleum Contamination, At My Facility Or

Property What Steps Should I Follow?NHDES Has Requested Corrective Action & I Dont Have Insurance

Or My Own FundsI Have Incurred Corrective Action Costs, & Have Limited Insurance

CoverageWhat Does A Complete Fund Program Eligibility Request Include?What Does A Complete Fund Program Reimbursement Request Include?

I Do Not Have All Required Documentation, Or ApprovalsAudits & QualificationsWhat Happens When An Eligibility Request Is Submitted To NHDES?What Happens When A Reimbursement Request Is Submitted To NHDES?How Long Does It Take To Process A Reimbursement Request?

After A Reimbursement Request Is Processed, Can Additional Information Be Submitted?Can Multiple Reimbursement Requests Be Submitted?


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N.H. Petroleum Reimbursement Fund Program Guidance Manual January 2012iii

TABLE OF CONTENTS

PAGE

Are There Time Limits for Submitting A Request?How Do I Prepare & Submit A Reimbursement Request?Do I Have Rights Of Appeal?Web-Based Reimbursement Requests

APPENDIX 35Environmental Monitoring DatabaseCost TablesForms

Policy StatementsN.H. Code of Administrative RulesState StatutesQuick References


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N.H. Petroleum Reimbursement Fund Program Guidance Manual January 20121

I. OVERVIEW

New Hampshire PetroleumReimbursement Fund Program

The New Hampshire Petroleum

Reimbursement Fund Program is afinancial assistance program forreimbursement of costs incurred forcorrective action, third-party damages,public water supply gasoline ethermonitoring, and consumer notification. InNew Hampshire, gasoline ethercontamination is typically methyl tertiary-butyl ether (MtBE). Although MtBE is no

longer in the gasoline fuel supply,contamination is still present in theenvironment.

Program Note: Corrective action meansactivities performed in accordance with statestatute or administrative rules to contain a petroleum discharge, or to remedycontamination. Third-party damages are amonetary obligation of a fund-eligible partybased on a court-approved settlement or

judgment in a civil action. Public water supplyconsumer notification and water qualitymonitoring are required under state statuteand administrative rules when MtBE is foundin the supply.

Owners of petroleum storage facilities,owners of properties identified as a sourceof gasoline ether contamination, andowners of public or private water supplies

may participate in the program.The reimbursement fund program iscomprised of four separate dedicatedfunds authorized by state statute. Thesefunds are; the Oil Discharge & DisposalCleanup Fund under RSA 146-D, the FuelOil Discharge Cleanup Fund under RSA

146-E, the Motor Oil Discharge CleanupFund under RSA 146-F, and the GasolineRemediation & Elimination of Ethers Fund

under RSA 146-G.The RSA 146-D, E & F funds provideexcess insurance coverage for ownersof above ground petroleum storage(AST) tank facilities, owners ofunderground petroleum storage tank(UST) facilities, owners of on-premise-use fuel oil facilities, including residentialproperties, and certain property owners.

Owners of these petroleum storagefacilities may request reimbursement forcorrective action and third-party damagecosts incurred due to petroleumcontamination. To qualify for fundcoverage, the facility owner must (1)demonstrate private insurance coverageis not available and (2) the facility must beoperated in compliance with all applicablelocal, state and federal rules to prevent

new petroleum discharges.

Program Note: Petroleum storage facilitiesinclude ASTs and USTs storing gasoline,diesel fuel, oil, fuel oil, motor oil or usedmotor oil, and on-premise-use fuel oilfacilities (typically at single-family homes).

The RSA 146-G fund is available toreimburse corrective action costs, public

water supply monitoring costs and publicwater supply consumer notification costsincurred due to MtBE or other gasolineether contamination. Reimbursement isnot available for third-party damage costs.Eligible parties include owners of public orprivate water supplies affected by


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contamination, and owners of propertiesidentified as a source of contamination.Gasoline handling and storage operationsat source properties must still be incompliance with all applicable local, state

and federal rules for operation, eventhough MtBE is not in the fuel supply.

Program Note: Gasoline ether contaminationsource properties include motor vehiclesalvage yards, vehicle dealerships, repairshops and other locations where gasolinethat contained MtBE was handled or stored.

The RSA 146-G fund does not function asexcess insurance by statute. However,

reimbursement is not available for costspaid by private insurance. Moniesexpended from this fund may berecoverable under certain circumstances.

Administration

The program is administered by the OilFund Disbursement Board (Board),which is composed of twelve members

representing the N.H. Legislature, thepetroleum industry, state agencies andthe general public. The Board isadministratively attached to the NewHampshire Department of EnvironmentalServices (NHDES), which performsprogram support services. The Boardmeets monthly to hear appeals, approveactivity reports, and review policies andprocedures. Reimbursements are subject

to Board policies and the requirements ofN.H. Administrative Rules Part Odb 400effective September 1, 2011. Policystatements and rules may be found in the

Appendix.

Petroleum Storage Facility &Contamination Source Site OwnerResponsibilities

When a petroleum discharge occurs orcontamination is discovered, corrective

action is needed. Typically, this includesperforming an investigation to determinethe extent and magnitude of the problem,and developing a remedy plan. Quiteoften, Initial Response Action is neededto abate imminent environmental or healthhazards. This may include contaminatedsoil removal, free product removal orvapor abatement measures. NHDES is

responsible for ensuring that surfacewaters, groundwater and public health areprotected, by requiring the owner toperform investigation and remediation,and for managing the corrective action.

Any person who becomes aware of adischarge/petroleum contamination has aduty to report to NHDES, and facilityowners and contamination sourceproperty owners must undertake

corrective action to meet staterequirements.

Related Programs

Under RSA 146-E, homeowners whodemonstrate financial need may receiveup to $1,500 in funds for repair orreplacement of substandard fuel oilstorage tank systems, and up to $2,500 to

remove a UST, to prevent a discharge.The SafeTank program is described invarious other guidance documents.Contact NHDES for details.


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Where Do I Start & What Steps Do IFollow To Access The Funds?

Read Sections II, III, IV, V and VI for keyfund program information and

requirements. Follow the How-Toprocedures in Section VII if you need fundprogram resources. Contact NHDESpersonnel listed on the N.H. PetroleumReimbursement Fund ProgramInformation Resources guidance sheet forfurther assistance (see Appendix).


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II. KEY PROVISIONS OF STATUTES, RULES & POLICIES

Corrective Action Liability

When a petroleum discharge occurs orcontamination is discovered, NHDES

personnel will determine who isresponsible for performing correctiveaction, and will issue a Notice of StrictLiability for groundwater and surfacewater impacts. The reimbursement fundsare available to the legal owner of apetroleum storage facility or contaminationsource property, and not others who arerelated to a discharge or contamination

event. For example, a discharge from apetroleum storage facility due to a deliverycompany overfill, is not a coveredoccurrence. In such a case, the deliverycompany must complete corrective actionwith their own resources.

However, the RSA 146-G fund is availableto a party that has suffered gasoline ethercontamination, even if the discharge

facility/source is not known.Program Note: The fund-eligible party is a party who performs corrective action, andmay be liable under state statute.

Petroleum Storage Facilities &Gasoline Ether Contamination SourceProperties

Petroleum storage facilities covered under

the program include active facilities(where one or more tanks are currently in-service), and permanently closedfacilities (where all tanks andappurtenances are closed in accordancewith NHDES rules) and a discharge has

occurred and/or contamination isdiscovered.

Covered gasoline ether contamination

source properties include any locationwhere soil or groundwater contaminationlevels necessitate corrective action.

Public & Private Water Supplies

Public water supplies covered under theprogram include those on an increasedwater qualify monitoring program due togasoline ether contamination, have MtBE

contamination levels necessitatingconsumer notification (>5.0 parts-per-billion), and/or have contamination levelsnecessitating corrective action.

Covered private water supplies are thosewith contamination levels necessitatingcorrective action.

Owners

Covered petroleum storage facility ownersinclude: the current owner of an active orpermanently closed facility, the formerowner of an active facility who incurredcosts during their period of ownership,and the former owner of an active facilitywho remains liable for corrective actionafter the facility is sold. Incurred costsinclude work contracted prior to transfer offacility ownership. An owner is the person

or entity that has, or held, legal title to thefacility and whose name appears, orappeared, on the NHDES facilityregistration form, if applicable.

Covered landowners are those who ownproperty where a compliant facility was


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located, and where an on-premise-usefuel oil storage facility is located. Forexample, the owner of a manufacturedhousing park with multiple fuel oil storagetanks may qualify, or the individual tank

owners may qualify.Program Note: The fund program is availablefor certain facilities, properties, and watersupplies, and is available to certain owners.The excess insurance funds are available for petroleum storage facilities. The gasolineether fund is available for contaminationsource properties.

Covered gasoline ether fund owners

include contamination source propertyowners which may have gasoline storageor handling operations subject to facilitycompliance requirements, and owners ofcontaminated public and private watersupplies.

When requesting fund eligibility, the ownermust identify a parent company, if any.

Ownership Transfer & Fund ProgramCoverage

Fund program coverage is transferable tothe purchaser of an active petroleumstorage facility, gasoline ethercontamination source property, publicwater supply, private water supply orproperty owner. Or, a former owner mayretain coverage after transfer, under theterms of a sales agreement. A copy of thesales agreement showing a continuedliability for corrective action after transfermust be submitted with eachreimbursement request. See Section VII.

Applicants

An Applicant is a person or firm hired byan owner, under a written contract, whoperforms corrective action, public watersupply monitoring or consumer

notification, and may seek reimbursementdirectly from the fund(s). For correctiveaction work, the Applicant must agree towaive all claims against the owner for theservices performed. (See: N.H.

Administrative Rule Odb 406.03 in the Appendix.) The written contract forservices must be executed prior to start ofthe work, and the waiver of claims

language for corrective action, must beincluded prior to reimbursement approval.Applicants are also required to maintain aProject Cost Ledger for each State fundproject they work on, for audit purposes.

Program Note: Owners and Applicants maynot establish contracts that violate a statuteor rule. An Applicant may not balance-billtheir client for non-reimbursable costs.

Petroleum Storage Facility OperatingRequirements

To qualify for fund coverage, the facilitymust be operated in compliance with allapplicable local, state and federal rules.Owners must achieve compliance to beeligible for fund coverage for a petroleumdischarge, and then maintain complianceto be eligible for a future discharge.General requirements for each facility typeare as follows:

Gasoline, diesel and oil UST facilitiesmust be registered with NHDES andbe in compliance with N.H.

Administrative Rules Env-Wm 1401.


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Gasoline, diesel and fuel oil ASTfacilities must be registered withNHDES, be in compliance with N.H.

Administrative Rules Env-Wm 1402,meet state fire codes, and meet

federal regulations for spill preventioncontrol and countermeasures (40 CFR112). The deadline for AST registrationwas July 1, 1996. (Contact NHDESregarding a late registration waiver iffund program assistance is needed.)

All on-premise-use fuel oil facilitiesmust be equipped with a vent whistlefor overfill alert. On-premise-use

facilities installed on or after August28, 1993, must meet all applicablelocal codes or ordinances and NationalFire Protection Association standardNFPA 31. These standards andadditional requirements are describedin the NHDES publication, BestManagement Practices for theInstallation or Upgrade of On-Premise-Use Heating Oil Tanks - 2008 Edition.

Facility owners must achievecompliance and meet the BMPstandards by July 1, 2015, orcorrective action coverage will bereduced. Owners of on-premise-usefacilities regulated under Env-Wm1401 or 1402 must demonstratecompliance with those rules.

Program Note: Owners of residential on-

premise-use fuel oil facilities, who meet low-income guidelines, may qualify for a $1,500grant to improve or replace a sub-standardsystem. Call NHDES for details.

Motor oil or used motor oil storagefacilities must be in compliance withEnv-Wm 1401 or 1402 (if applicable),

meet local codes, state fire codes andfederal regulations for spill prevention,control and countermeasures.

Gasoline dispensing facilities must incompliance with Env-Wm 1404.

Gasoline Ether Source PropertyRequirements

Other than AST and UST facilities thatstored gasoline with MtBE, motor vehiclesalvage yards, auto dealerships andrepair shops are the most commonsources of gasoline ether contaminationdue to historic discharges. Current

gasoline handling and storage operationsat such source properties must be incompliance with all applicable local, stateand federal rules for operation to preventnew discharges. For salvage yards,principal operating requirements areincluded in the Motor Vehicle SalvageYard Environmental Compliance Manual& Self-Audit Checklisthttp://des.nh.gov/organization/commission

er/pip/publications/wmd/documents/wmd-09-1.pdf, and N.H. Administrative RulesEnv-Wq 401.

Achieving and maintaining compliancewith operating requirements is explainedfurther in Section III.

Fund Program Projects & OtherContamination

A property or site may include a mix offund-eligible petroleum contamination,and contamination from other sources.

Additional stand-alone or incrementalcorrective action costs may be incurred byan owner due to other contaminants.


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Such costs are not reimbursable and mustbe accounted for separately.

Private Insurance Coverage

The RSA 146-D, E, & F funds provide

excess insurance coverage for ownersof AST facilities, owners of UST facilities,and owners of on-premise-use fuel oilfacilities. The RSA 146-G fund is not anexcess insurance fund by statute.However, costs paid by private insuranceare not reimbursable. Facility ownersmust file a claim with their privateinsurance company(s) before requestingstate fund assistance. A private insurance

claim must specifically request if coverageis available for damages to land owned,i.e., first-party coverage, and fordamages to waters of the state and/orabutting landowners, i.e., third-partydamage/liability coverage. Owners maynot interpret their policy coverage orprovide an interpretation from aninsurance agent. Only coverage

determinations from the insurancecompany or an authorized adjuster will beaccepted.

When requesting fund eligibility, the ownermust include a copy of thecorrespondence from their insurancecompany or an authorized adjuster thatdetails available coverage. If there is noprivate insurance policy in force, the

owner must provide a notarized letterstating so. The state fund(s) is availablewhen there is no private insurance, nocoverage, or only limited coverage.

Program Note: The fund program providesexcess insurance coverage for a petroleumstorage facility owner. It does not provideliability coverage for corrective action serviceproviders.

Under New Hampshire law, any personwho causes or suffers an oil discharge toland, groundwater, or surface water isstrictly liable for corrective action. Oilcontamination in groundwater and surfacewater are damages for which the facility orproperty owner may have liabilitycoverage under their private insurancepolicy. For water contamination, NHDES

will issue a Notice of Strict Liability thatincludes specific information regardinginsurance coverage expectations. Privateinsurance companies have specificobligations under New HampshireInsurance Department rules to provide atimely coverage determination whenrequested. Contact NHDES program stafffor more information.

Petroleum Discharges &Contamination Discovery

The fund program is available forreimbursement of corrective action coststhat result from discharges. Costsassociated with the discovery of thedischarge are not reimbursable. Suchactivity is undertaken voluntarily, or is dueto regulatory obligations, e.g., facility

monitoring, thus the costs are known andplanned for.


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Program Note: Discovery-related costs arenot reimbursable. This may include duediligence investigations for propertydevelopment or sale, facility testing,monitoring, and other activities that identify adischarge.

Fund Program Coverage Limits &Deductibles

The petroleum storage facility funds areavailable for reimbursement of correctiveaction costs and third-party damage costs.The gasoline ether fund is available forreimbursement of corrective action costs,public water supply monitoring costs and

consumer notification costs. It is notavailable for reimbursement of third-partydamage costs. Each fund is available forcosts incurred after certain dates providedin the statutes, or the date of discharge orcontamination discovery, whichever islater.

Owners of petroleum storage facilitiesmust cover initial corrective action costs

out-of-pocket (i.e., a deductible), basedon the type of facility and number offacilities owned. Deductibles range from$100 or $500 for each on-premise-usefuel oil storage facility, regardless of thenumber owned, to $30,000 for each ASTor UST gasoline, diesel, fuel oil, or motoroil storage facility, if 20 or more areowned. There is no deductible for ownersof gasoline ether contamination sourceproperties. On-premise-use facilityowners that receive SafeTank fundinghave a $100 deductible, vs. $500 for allother on-premise-use facility or propertyowners. Owners of property where acompliant AST, UST or motor oil storage

facility was located have a $5,000deductible.

The deductible is subtracted from theamount of reimbursement forreimbursement requests submitted by the

owner, and on-premise-use facilityrequests submitted by an Applicant. Thedeductible is billed to the owner for allother reimbursement requests submittedby an Applicant, if the deductible is notalready met. Deductibles are determinedby counting the number of facilitiesregistered with NHDES in the name of theowner (or parent company) seeking fund

eligibility. The facility count includes allactive and permanently closed facilitieswhere a discharge occurred and all activefacilities where fund assistance may beneeded in the future.

Program Note: There are two deductibleschedules that apply for AST, UST and motoroil storage facilities based on the date ofdischarge discovery, before or after 7/1/95.Deductibles cannot be waived or forgiven, but

a periodic payment plan can be approved.

The AST, UST and motor oil storagefacility funds provide first dollar coverageif the owner has a financial hardship.Such owners must request that the Boardapprove a periodic payment plan so thedeductible obligation is eventually met.Fund program coverage limits and

deductibles are shown in the Overview ofFacility Requirements table in theAppendix.


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Usual & Customary Market Rates, OrCosts

The Board publishes usual and customarymarket rates or costs for corrective actionwork based on a variety of Unit-Based

Cost and Project-Based Cost services.See Section VI for a description, and thecost tables in the Appendix.

Work Scope & Budget Approval

With the exception of EmergencyServices, all corrective action work mustbe pre-approved by NHDES for bothscope and budget. See Section IV for

work scope and budget approvalrequirements.

Corrective Action PerformanceStandards

Reimbursement requests may not beprocessed for payment until correctiveaction is completed in accordance withNHDES requirements, includingappropriate reporting.

Payment for work-in-progress ispermissible, provided NHDES, the owner,and the corrective action serviceprovider(s) have agreed on a paymentschedule for completed work and thesubmittal of certain interim reports.

Reimbursable Costs

Reimbursable corrective action costs

incurred by fund-eligible facility andproperty owners may include workauthorized by NHDES under statute orrule to contain a discharge and completecontamination cleanup. This may be oneor more phases of work such as: InitialResponse Action (including Emergency

Services), Site Investigation, Remedial Action Plan, Remedial PlanImplementation, permit applicationpreparation, NHDES permit and localcorrective action fees, and Groundwater

Monitoring.Owners of public and private watersupplies may be reimbursed for certaincorrective action costs due to gasolineether contamination, even if thecontamination source is not known.Incurred corrective action costs arereimbursable at the not-to-exceed usualand customary market rates or costs,

published by the Board.Public water supply (gasoline ether-related) consumer notification and waterquality monitoring costs are reimbursableat reasonable market-based costs.

Reimbursable third-party damage costsinclude court-ordered damages for bodilyinjury or property damage claims. ContactNHDES for specific guidance on reporting

a third-party demand, filing a copy of awrit or petition, and other information.

See Sections V and VI for reimbursablecost information.

Reimbursement Request Submittals

Facility and property owners may submit areimbursement request upon completionof corrective action as directed by

NHDES.

Public water supply owners may submit areimbursement request upon completionof consumer notification or water qualitymonitoring.


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See Section VII for an explanation ofHow-To secure fund eligibility andsubmit a reimbursement request.

Program Note: Reimbursement requests andcorrective action reports should be submitted

concurrently to avoid payment delays.Submittal using NHDES OneStop is stronglyencouraged, and preferred.


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III. ACHIEVING & MAINTAINING FACILITY COMPLIANCE

When Is Facility Compliance Required?

The fund program statutes and rulesinclude requirements that petroleum

storage facilities, and certain activities atgasoline ether contamination sourceproperties, be operated/conducted incompliance with applicable local, stateand federal standards. If afacility/property is in compliance, fundcoverage is automatic in the event of adischarge or contamination discovery.Owners of UST facilities are required to

demonstrate financial responsibility forcorrective action under NHDES rules(which is based on a federal requirement).For a compliant facility, the RSA 146-Dfund provides financial responsibility.

There are no facility compliancerequirements for owners of public andprivate water supplies seekingreimbursement for gasoline ether

contamination costs, where thecontamination source is not known.

What Is Facility Compliance & How Do IAchieve It?

A facility may be an on-premise-use fueloil tank system at a private residence,commercial ASTs or USTs storinggasoline, diesel fuel, oil, fuel oil, or motoroil, or various gasoline handling and

storage operations at, e.g., a motorvehicle salvage yard.

The key purpose of facility operationalcompliance requirements is to preventdischarges and resultant contamination.

Achieving and then maintaining

compliance is critical to dischargeprevention. Facility owners shouldcontact appropriate NHDES program staff

listed on the Information Resources tableto obtain compliance assistance/guidance.Owners should employ a qualified tanksystem installer, consultant, contractor orother professional to review their facilitycompliance status, and correct anydeficiencies.

Gasoline, diesel fuel and oil UST facilitiesmust be registered with NHDES and be in

compliance with N.H. Administrative RulesEnv-Wm 1401. Gasoline, diesel fuel andfuel oil AST facilities must be registeredwith NHDES, be in compliance with N.H.

Administrative Rules Env-Wm 1402, meetstate fire codes, and meet federalregulations for spill prevention control andcountermeasures (40 CFR 112). Gasolinedispensing facilities must be incompliance with Env-Wm 1404. The

deadline for registration of AST facilitieswas July 1, 1996. If fund programassistance is needed for a non-registered

AST facility, a late registration waiver willbe required. Contact NHDES for moreinformation.

Owners of on-premise-use fuel oil USTand AST facilities, regulated under Env-Wm 1401, or 1402, must demonstrate

compliance with those rules. By statute,on-premise-use fuel oil facilities installedon or after August 28, 1993, must meet allapplicable local codes or ordinances andNational Fire Protection Associationstandard NFPA 31. All on-premise-usefacilities must be equipped with a vent


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(overfill) alarm system. These standardsand additional requirements are describedin the NHDES publication, BestManagement Practices for the Installationor Upgrade of On-Premise-Use Heating

Oil Tanks - 2008 Edition. Facility ownersmust achieve compliance and meet theBMP standards by July 1, 2015, orcorrective action coverage will bereduced.

Program Note: Owners of residential on- premise-use fuel oil facilities, who meet low-income guidelines, may qualify for a $1,500SAFETANK grant to improve or replace a sub-standard system. Call NHDES for details.

Motor oil or used motor oil storagefacilities must be in compliance with Env-Wm 1401 or 1402 (if applicable), meetlocal codes, state fire codes, and federalregulations for spill prevention, control andcountermeasures.

Typical gasoline ether contaminationsource properties are motor vehicle

salvage yards, vehicle dealerships andrepair shops. Facility operationsencompass various gasoline handling andstorage activities conducted at the site.This may include: ASTs and USTs, smallfuel storage containers/storage areas, fueltransfer devices, and motor vehiclestorage, repair and dismantling activities.Operational compliance determinations

may involve various NHDES programinterests, rules, and personnel.

Active Facility Compliance Inspections

NHDES personnel perform inspectionsperiodically at active AST and UST

petroleum storage facilities. Facilityowners should expect to be contacted thatan inspection is due, and should provideassistance as necessary. Periodicinspections and compliance record

keeping are valuable in preventingdischarges and providing early detectionto minimize the spread of contamination.Early detection opportunities may be lostdue to failure to maintain adequaterecords.

Compliance & Fund Eligibility

When a discharge occurs, orcontamination is discovered, and

corrective action is initiated, NHDESpersonnel will review compliance records,may perform an inspection, and notify thefacility owner of their fund-eligibility status.If the facility is permanently closed and aproper closure report was provided, ifapplicable, the owner is eligible for thefund program. If the facility is active anycompliance deficiencies must be

corrected before reimbursement requestscan be processed. Periodic compliancereviews will be performed during thecorrective action process. The facilityowner must certify that compliance will bemaintained by signing the Owner'sLiability Statement and Affirmation, on theRequest For Reimbursement

Authorization form included in theAppendix.

Program Note: Failure to achieve andmaintain operational compliance after the firstdischarge may result in loss of coverage forfuture discharges.


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IV. WORK SCOPE & BUDGET APPROVAL

Corrective Action Phases

Under its rules and guidelines, NHDESgenerally categorizes corrective action

work by phase for purposes of consistentidentification, smooth workflow and costcontrol. These include: Initial Response

Action (including Emergency Services),Site Investigation, Remedial Action Plan,Remedial Action Plan Implementation andGroundwater Monitoring. Groundwatermonitoring is typically performed under aNHDES-issued site groundwater

management permit, as required bystatute. Public and private water supplycorrective action costs may fall under theabove general phase categories, or maybe other specific work.

Usual & Customary Rates, Or CostsActual Cost

Reimbursement for corrective action isavailable at the not-to-exceed usual and

customary market rate or cost forprofessional and contractor services. TheBoard publishes rate and cost informationfor a variety of Unit-Based Cost andProject-Based Cost corrective actionservices. These are described in SectionVI, and shown in tables in the Appendix.The cost categories and tables areperiodically updated based on changes in

market conditions.Reimbursement for public water supplygasoline ether consumer notification andwater quality monitoring is available at areasonable market-based cost.

When Is Work Scope ApprovalRequired?

With the exception of emergency services,

all corrective action work must be pre-approved by NHDES for both scope andbudget. (Emergency services should beundertaken with NHDES knowledge andconcurrence.)

In the event of a petroleum discharge orcontamination discovery, qualifyingpersons (See Section II for a description)must retain a contractor and/or consultant

to complete work as directed by NHDES.This may require preparation andsubmittal of a work scope and budget forNHDES approval using Unit-Based Costs,and/or adherence to one of the Project-Based Cost work scope categories.Certain costs incurred while performingcorrective action such as utility costs, localpolice detail and permit fees, are not

market-based and thus not subject to pre-approval.

Forms are available for use in submittinga work scope and budget, or a work scopeChange Order, and are included in the

Appendix. (Contact NHDES regardinguse of the forms and see additionalguidance in this Section.)

Pre-approval is not required for public

water supply gasoline ether consumernotification and water quality monitoring.However, public water supply ownersintending to seek reimbursement for suchcosts should contact Talcott Hubbard,P.E. at (603) 271-2014 or David Reid,P.G., at (603) 271-3431.


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Program Note: Work scope and budget pre-approval is required for all corrective actionwork, except emergency services. Pre-approval is not required for public watersupply consumer notification or water quality

monitoring.

Work Scope Approval Process

Because of the specialized nature ofcorrective action services, differentNHDES personnel are responsible forapproval and oversight of work as aproject moves from one phase to the next.Qualifying persons should contact

appropriate NHDES program staff listedon the Information Resources table toobtain assistance.

Corrective action work performed underthe fund program is typically conducted ona time & materials basis, subject to thereimbursable cost guidelines provided inSections V & VI. In some cases, NHDESpersonnel will request that work be

performed following a standard, Project-Based Cost scope. Since the programhas matured, these standard scopes willbe phased-out over the next few years infavor of project-specific work scopes andbudgets. For complex projects, andpublic/private water supply projects,NHDES will request that a project-specificwork scope and budget be prepared.

Competitive Pricing, Contract &Performance Requirements

Certain projects, as determined byNHDES, will involve competitive pricing(i.e. bidding) for implementation of aremedial action plan. The overseeing

consultant and the construction contractorperforming remedial plan implementation(RPI) work must adhere to standardengineered-construction contractpractices, under American Society of Civil

Engineers guidelines. It is expected thatRPI work will meet specific overallperformance standards, and achievespecific performance milestones as thework progresses, which may or may notinclude a performance time schedule.

A qualified Applicant performing correctiveaction, public water supply monitoring orconsumer notification may seek direct

reimbursement from the fund(s). RPIcontracts may be structured so theoverseeing consultant or engineer is an

Applicant for their work, and theimplementation contractor is an Applicantfor their work. However, Applicantcontracts are not permitted for individualsubcontractors. For corrective actionwork, the Applicant must agree to waiveall claims against the owner for the

services performed. All contracts forservices must be executed prior to start ofthe work.

Program Note: Certain corrective action mustbe bid. Applicant (i.e. direct-pay) contractsare permitted for the consultant/engineerand/or the contractor. Corrective action mustbe conducted using a cost-effective approachand performance standards must be met toqualify for reimbursement.

Reimbursement from the fund program isconditional on meeting NHDES-established performance standards.Typically, NHDES will establishperformance standards at the time of work


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scope approval. If corrective action willinvolve installation of capital equipment,a cost comparison of leasing vs.purchasing the equipment must becompleted prior to installation. Capital

equipment is any electronic, chemical,mechanical or structural equipmentinstalled to perform contamination sourceremoval or treatment, and has a long-termlife greater than 2 years, and is valued at$10,000 or more. The chosen option,lease vs. purchase, must represent thelowest cost over the estimated duration ofthe project.

Public & Private Water SuppliesOwners of qualifying public and privatewater supplies (See Section II) may bereimbursed for the costs to remedygasoline ether contamination, where thecontamination source is not known. Forowners of private water supply wells,reimbursement is available for connectionto a public water system at or near the

property boundary, or replacement of thecontaminated well. Such owners maysubmit a project-specific work scope andbudget for connection to a public watersystem, or for (1) investigating thefeasibility of installing a replacement welland (2) well installation, if feasible.

For owners of public water supplies,reimbursement is available for

construction of a distribution systemextension (to serve contaminated privateproperties), construction of new treatmentprocesses, water supply wells ordistribution systems, replacement of awater supply well, or connection toanother public water system. Due to the

potential complexity of such projects, theowner must first submit a work scope andbudget to perform a detailed feasibilitystudy. Feasibility study costs arereimbursable whether or not a project

proceeds further.Owners of public and private watersupplies should contact Talcott Hubbard,P.E. at (603) 271-2014 for moreinformation.

How Is Corrective Action Or OtherWork Implemented?

If NHDES requests corrective action work

following the Project-Based Costcategories described in Section VI, theconsultant or contractor may proceedwithout submitting a work scope andbudget.

If the proposed corrective action does notconform to the Project-Based Costcategories, or involves a public or privatewater supply, a project-specific work

scope and budget must be submitted forreview and approval prior to performingthe work. This may include complex siteinvestigations, Initial Response Action,Remedial Action Plan, and Remedial PlanImplementation work.

As noted previously, pre-approval is notrequired for public water supply gasolineether consumer notification and water

quality monitoring. Public water supplyowners intending to seek reimbursementfor such costs should contact NHDES forguidance.


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Using Work Scope & Budget Forms

Work Scope Authorization: The WorkScope Authorization form is used tosubmit a time and materials proposedscope and budget for performing

corrective action when the Project-BasedCost categories described herein do notapply. A work scope should be based onthe best means and methods to performthe work, including planned use ofovertime. It should be complete, accurate,and the budget should include allreasonably anticipated costs. Forcomplex work, such as remedial action

plan preparation and implementation,additional supporting documents may beneeded. Contact the NHDES projectmanager for guidance.

Change Order: The Change Order form isused to submit a request to modify thescope of a Project-Based Cost categorydescribed herein, or other approved workscope, due to a change in conditions

encountered after the work is initiated.The form is used to add tasks/work ormake other adjustments which increasethe total budget, including addingovertime. However, NHDES prefers not toprocess a Change Order for occasionalminor substitutions that provide equivalentperformance, or occasional minoromissions. In certain cases NHDES mayprovide verbal and/or email approval for a

change order, provided a written ChangeOrder form is submitted within 48 hours.

Engineer Certification of ContractorQuantities: The certification form is tosupport a contractor reimbursement claimfor remedial plan implementation. Use of

this form allows reimbursement of acontractor payment request when the fullimplementation report is not complete.

Program Note: Forms are available forsubmittal of a work scope and budget and

certification of contactor work. See theAppendix.

Overtime

Overall project cost savings may berealized by incorporating overtime for timeand materials work. Overtime is typicallyappropriate for projects with long traveldistances, versus re-mobilizing to the site,

but may be used on any project to reduceoverall costs. If cost savings aremarginal, a cost comparison may beneeded to help NHDES in reviewing thework scope and budget. If cost savingsare obvious, overtime rates may beincluded in a proposed work scope andbudget, with a footnote/explanation notingthat overtime was included and theapproximate project cost savings.

How Do I Prepare & Submit A WorkScope & Budget?

NHDES recommends that correctiveaction service providers prepare andsubmit work scopes and budgets, ratherthan the owner. Service providers withfund program experience are alreadyfamiliar with NHDES corrective action

criteria and approval procedures. Inaddition, work scope and budgetpreparation costs are reimbursable.

This recommendation also applies forcorrective action work that will beperformed by the owner. The overseeingconsultant or contractor is best qualified to


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prepare the submittal. Owners shouldcontact appropriate NHDES program stafflisted on the Information Resources tablefor SOW assistance/guidance.

Work scopes and budgets are typically

submitted directly to the NHDES staffresponsible for the project.

What Happens When A Work Scope &Budget Is Submitted?

If a work scope and budget (SOW)submittal does not provide sufficientdescriptive or cost information, it may bereturned to the sender, or held until it is

completed. Typically, NHDES personnelwill telephone and/or email to requestadditional information to complete asubmittal. A completed and approvedSOW is logged into a database fortracking and reporting.


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V. REIMBURSABLE COSTS

Reimbursable Corrective Action Costs

Reimbursable corrective action costs arethose costs incurred by qualifying persons

(See Section II for a description), inresponding to a NHDES work request. Asnoted in the previous section, correctiveaction work is identified by phase andmust be pre-approved by NHDES for bothscope and budget. (Emergency correctiveaction work may be approved without abudget.) The Board has published not-to-exceed usual and customary rates or

costs for a variety of Unit-Based Cost andProject-Based Cost corrective actionservices that are detailed in Section VI.Reimbursable corrective action costsinclude:

Management of gasoline ether, virginoil and waste oil petroleumcontaminated soils in accordance withNHDES regulations;

Services associated with temporarysurface and groundwater dischargepermits that are not related to closureor installation of a fund-eligible facility;

Corrective action in response to adischarge or contamination performedin accordance with NHDES regulationsand policies; and

Fees for corrective action permits.

Corrective Action Cost Limitations

Under Odb 400, certain reimbursable costlimitations apply as follows:

For corrective action performed by aqualifying person, reimbursable costsare limited to actual costs based onemployee pay rates, cost of benefitsand equipment operating expenses;

Reimbursement cannot exceed actualcosts, paid or incurred less anydiscounts received;

Inspection fees, or access feescharged by property owners, are notreimbursable;

Legal costs are not reimbursable;

Administrative, fiduciary management

or supervisory costs are notreimbursable;

Interest charges on unpaid invoicesare not reimbursable;

Civil penalties or state double costrecovery charges are notreimbursable;

Costs associated with the discovery of

a discharge or contamination, are notreimbursable;

Costs paid by insurance are notreimbursable;

Costs in excess of approved budgetsare not reimbursable;

For bid-based services reimbursementis limited to bid and Change Order

items measured or certified by theEngineer; and

NHDES performance standards mustbe achieved.


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Reimbursable Public Water SupplyCosts

In addition to corrective action costs,owners of qualifying public water supplies(See Section II) may be reimbursed for

consumer notification and water qualitymonitoring. The Board has not publishedspecific rates or costs for this work.However, some corrective action rates areapplicable, e.g., Unit-Based Costs forlaboratory analysis. The Board expectscosts for notification and water qualitymonitoring to be reasonable and market-representative. Public water supply

owners intending to seek reimbursementfor such costs should contact TalcottHubbard, P.E. at (603) 271-2014 or DavidReid, P.G., at (603) 271-3431.

Property Damage Restoration

When a release or spill of storedpetroleum product occurs, reimbursableand non-reimbursable property damagemay result. In general, restoration of

damages resulting from performance ofcorrective action is reimbursable, providedthere was no contractor error/omissioncovered under their company liabilityinsurance. Restoration of damagesdirectly resulting from the release or spillof petroleum, or otherwise not related toperforming corrective action, is notreimbursable unless in the context of a

legal action. (Under Odb 400, correctiveaction is distinguished from third-partydamage costs in legal actions.) Inaddition to direct damages, loss ofproperty use or disruption of businessactivities may occur while correctiveaction is performed. These are also non-

reimbursable costs under the generaladministrative, fiduciary management orsupervisory cost limitations provided inOdb 400.

A fuel oil release from a basement storage

tank is a typical situation wherereimbursable and non-reimbursabledamages can occur. Fuel oil releasesmay saturate the premises and affect: (1)structural features including; load-bearingframing/walls, partition walls, stairways,foundations, basement fill materials andconcrete floor slabs, (2) architecturalfeatures including; flooring, carpeting,

special decorative trim and paneling, and(3) personal belongings including books,clothing, and family memorabilia.

Due to hazardous vapors, correctiveaction may involve removal and properdisposal of all oil-saturated materialsincluding structural features, architecturalfeatures and personal belongings.Reimbursable corrective action restoration

includes repair of structural features, ifremoved or damaged for vapor control orother corrective action work.Reimbursement is not available forrestoration of oil-saturated architecturalfeatures and replacement of personalbelongings. This is done at the ownersdiscretion and cost. In some cases,private insurance may cover thesepersonal property losses.

Program Note: In-kind restoration ofcorrective action damages is often notpossible or warranted. Reimbursement is notavailable for restoration of architecturalfeatures and personal belongings impactedby a petroleum release.


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Fund-eligible parties should understandreimbursement is only available forcleanup costs. The state funds do notprovide comprehensive damagerestoration coverage that may be

available through private insurance.Whenever possible, NHDES will follow acorrective action approach that avoidsstructural features and otherwiseminimizes property damages.

Assessment of damages anddetermination of a reasonable restorationcost is often difficult. In-kind repair orreplacement following corrective action isoften not possible or warranted,

particularly when aesthetic features suchas landscaping are involved.

Reimbursable Third-Party DamageCosts

Reimbursement for third-party damages islimited to those defined in the Board rules,and is subject to specific proceduralrequirements. A petroleum storage facility

owner must follow the proceduralrequirements in the event of service of a(legal) writ or petition. Owners shouldcontact NHDES immediately uponservice, and must provide written notice tothe Board within 30 days of service.


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VI. UNIT-BASED & PROJECT-BASED COSTS

Unit-Based & Project-Based Costs

Usual and customary not-to-exceedcorrective action service costs are

identified from market data obtained byNHDES, with input from contractors andconsultants. This data is published by theBoard categorized as Unit-Based Costsor Project-Based Costs and isperiodically updated. Service providersinterested in performing corrective actionin New Hampshire are encouraged toprovide rate and cost information upon

request.The published cost information is used tofacilitate corrective action pre-approval,performance, and subsequentreimbursement request processing. Thecost data published herein represents thetypical upper limits for services that arenot bid. Therefore, the cost data is notapplicable for bid-based implementation of

a NHDES-approved Remedial ActionPlan.

Reimbursement for incurred correctiveaction costs is limited to actual invoicedcosts,paid or incurred less any discountsreceived. For work scope and budgetproposals or reimbursement requests,where costs are at or below thosepublished herein, the costs are presumed

reimbursable unless otherwisedisqualified. Any submitted costsexceeding those published herein aresubject to reduction to the published ratesor costs.

In general, all proposed corrective actionssubject to Odb 400, must conform to the

Unit-Based Costs or Project-Based Costcategories described herein. Non-conforming corrective action costs are

subject to pre-approval by NHDES, inconsideration of a written justification that(1) describes the need for the work and(2) includes data that demonstrates theproposed items or costs represent a usualand customary rate. Certain costsincurred while performing corrective actionsuch as utility costs, local police detail andpermit fees, are not market-based andthus are not subject to pre-approval. In

order to verify actual cost, NHDES mayrequest copies of invoices or otherinformation from service providers.

Four tables are included in the Appendixthat list current Unit-Based Costs andProject-Based Costs. The cost tables areperiodically updated as circumstanceswarrant.

Using Cost DataUnit-Based Costs: Unit-Based Costs area unit of labor, service, activity, or productdelivered for a set cost. Examples includelaboratory analytical tests or an hourlyrate for a specific piece of equipment suchas a backhoe. It may not be reasonablein all cases to apply Unit-Based Costsover the entire duration of the activity

being performed. Therefore, NHDESreserves the right to consider economy ofscale in reviewing work scopes, and mayrequire negotiation of costs, or bidding, fora specific project. Most of thereimbursement fund program Unit-BasedCosts are equivalent to rates in NHDES


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Initial Response Action and PlannedRemediation, and Point-of-EntryTreatmentcontracts

Project-Based Costs: A Project-BasedCost is the aggregate cost for the

completion of a specific work category.The Project-Based Costs describe a levelof effort required to perform a certaincategory of work. Examples of Project-Based Costs include, Site Investigation,Initial Site Characterization, andGroundwater Monitoring.

Applicability, Recommended BillingPractices & Cost Limitations

Ancillary Costs: Many small items shouldbe considered as overhead and inclusiveto the billing rates of personnel. Theseancillary costs include, but are not limitedto: telephone, faxes, postage, copies,computers, software, cellular phones,cameras, and miscellaneous non-poweredhand tools. Ancillary costs are consideredinclusive to the Project-Based Cost

budgets.

Equipment Downtime, Storage, Repair orReplacement: Excess charges forequipment downtime, storage, or the costto repair or replace equipment that isdamaged, lost or stolen due to negligenceor vandalism are not reimbursable.

Equipment Rental or Purchase: Thedecision to rent or purchase equipmentshould be based on the option thatprovides the lowest overall cost for theduration of the project. Generally theseconsiderations apply to CapitalEquipment as defined in the rules. It isrecognized that rental charges reflect

purchase cost, maintenance, depreciation,handling and reasonable profit. However,in some instances, the Board and NHDESmay determine that proposed or billedrental charges are not appropriate given

acquisition costs and marketconsiderations.

Field Supplies: Several small items areused during cleanup activities. For billingease, composite costs for such items aretypically billed at $25 per day, unless anitem is listed in the Unit-Based Costtables.

Fuel Cost Adjustment: Service providers

seeking compensation for increases infuel costs, must track fuel usage for aproject and calculate the cost differentialfrom the base fuel cost, effective at thetime of Unit-Based Cost publication. Fuelcost information for New England regionPADD 1A is available from the U.S.Department of Energy Information

Agency.

http://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_r1x_w.htm

Health & Safety: Level D is adequate foralmost all activities at petroleum sites inNew Hampshire. Levels A, B and C arerarely used. However, costs for higherlevels of protective equipment arereimbursable provided NHDES agrees it isrequired to adequately protect the health

and safety of workers.

Limitation on Reimbursement for ProjectTransition Costs: Reimbursement forproject transition costs shall be limited toone consultant transition per project,unless NHDES grants additional transition


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approvals in response to a writtenrequest.

Limitation on Senior Personnel 15%:In general, the total hours for senior leveloversight should not exceed 15% of the

total project labor hours. Senior levelpersonnel are typically defined as SeniorProject Engineers/Geologists/Managers,Supervisors and Principals.

Markup of Service Costs: A serviceprovider may charge up to 15% of theactual cost of subcontracted services,paid or incurred less any discountsreceived, to cover project-specific

administration and insurance costs.Subcontracted services may includelaboratory analysis, drilling, disposal ofcontaminated materials, or other servicesperformed under a written subcontract.

Program Note: For large or special projects,the Board and NHDES reserve the right tonegotiate markup multipliers. A serviceprovider may only markup work that is usual

and customary for their type of business.

A service provider may charge up to 10%of the actual cost of vendor services, paidor incurred less any discounts received.This includes project-specific materials,supplies, equipment rentals, remediationequipment, police details, and utilities.

Project-specific inventory held more than

30 days may qualify for up to 5% of theactual cost of the service paid or incurredless any discounts received.

The Board and NHDES reserve the rightto negotiate markup multipliers for largeremediation projects, on a case-by-casebasis.

A service provider may markup work thatis performed in accordance with usual andcustomary industry practice. For example,an environmental consultant may markupa laboratory, driller, or structural engineer,

but not another consultant or remediationgeneral contractor. A remediation generalcontractor may markup a remediationsystem vendor, or materials disposalfacility, but not another remediationgeneral contractor, or consultant.

No markup is allowed on any listed Unit-Based Cost that is usual and customaryfor a service provider. For example, an

Initial Response Action Contractor shouldhave a Vacuum Truck in their regularequipment inventory. See the Appendixfor Unit-Based Cost Tables 1 and 1A, andTable 3, Allowable Markup.

Overtime: Overtime is appropriate forprojects with long travel distances, versusre-mobilizing to the site, but may be usedon any project to reduce overall costs. If

cost savings are marginal, a costcomparison may be needed to helpNHDES in reviewing the work scope andbudget. If cost savings are obvious,overtime rates may be included in aproposed work scope and budget, with afootnote/explanation noting that overtimewas included and the approximate projectcost savings. Overtime may also be

combined with overnight stays.Per Diem: Reimbursement for per diem(meals and lodging) for site activitiesrequiring more than one day of fieldworkis recommended where there is a netsavings in daily travel costs. Overnightstays may be combined with overtime for


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further efficiency, and to reduce overallproject costs. Reimbursement is limited toactual costs with no markup allowed.Luxury accommodations and travel areexcluded.

Program Note: Overtime and per diem maybe used for efficiency and to reduce overallproject costs.

Professional & Contracted Labor Costs:For purposes of work scope approval andreimbursement, NHDES evaluates laborcosts based on the budget for each task,to determine if costs are usual andcustomary. For professional services, thetotal approved budget for each task orclass generally governs, versus laborrates, to allow flexibility in the use ofpersonnel resources. However, use oflabor categories must be consistent withstandard industry practice. For example,a Principal does not normally performfield work, in lieu of a Technician.

For contractor services, the publishedUnit-Based Cost hourly labor rates applyfor purposes of work scope approval andreimbursement.

Travel: Reimbursement for round triptravel from office to job site is payable atthe published Unit-Based Cost mileagerate, for standard and four wheel driveautomobiles, or the published pickuptruck/van rate.

Taxes & Fees: There is no general salestax, for goods or services sold or providedin New Hampshire. However, out-of-statetaxes and state fees are reimbursable forservices that cannot be provided in-state.

For example, hazardous waste disposal isnot available in-state.


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Project-Based Cost CategoryDescriptions

The following paragraphs describe thetasks or elements included in the scope ofwork (SOW) for each Project-Based

Cost category. All work must beperformed in accordance with applicableNHDES rules, and based upon anauthorization to proceed. The not-to-exceed reimbursement limit for consultingservices for each category is listed inTables 2 in the Appendix, and includesreporting and electronic transmittalthrough OneStop.

Initial Response Action Report Standard FormThis SOW consists of completing the InitialResponse Action Standard Report Form andproviding supporting information. The submittalshall document response actions conducted andshall include a site sketch and any applicableattachments such as laboratory data, bills oflading for soil disposal, and site photos. Theform is completed by a Contractor (or by aConsultant at Contractor rates).

Initial Response Action Report Complex SiteThis SOW consists of completing the InitialResponse Action Standard Report Form andproviding supporting information listed above,and additional correspondence or a brief reportproviding data interpretation andrecommendations for additional work. This SOWis applicable for sites/projects where groundwaterimpacts are known, potential third-party impactsare anticipated, or the site occupants may be atrisk, as determined by NHDES. This report iscompleted by a Consultant, or a Contractor witha licensed professional on staff.

Dig-Safe Pre-MarkingThis SOW consists of conducting a site visit andpre-marking boring/well and/or excavationlocations as required by Dig-Safe.

Off-Site Access AgreementThis SOW consists of obtaining a site accessagreement for an off-site property to performrequired cleanup activities. The cost for thisSOW is based on two attempts to obtain a written

access agreement. NHDES shall be notifiedimmediately upon failure to obtain a signedagreement. Unrelated legal fees are not eligiblefor reimbursement.

Initial Site CharacterizationThis SOW consists of a site visit for Dig-Safemark-out, background research, site safety plan,and limited subsurface investigation including soiland groundwater sampling and reportpreparation. Consult with a NHDES projectmanager on the parameters for subsurface

investigation.

Level I Site InvestigationThis SOW consists of a site safety plan,background research, sensitive receptor survey,site visit to pre-mark boring locations for Dig-Safe, completion of up to 5 soil borings andinstallation of up to 4 monitoring wells (3borings/wells minimum, one of which shall be inthe source area), soil sampling, 2 completerounds of groundwater sampling, well elevationsurvey, project management, data review,conceptual model development and reportpreparation. The cost for this SOW is based onone day of drilling.

Level II Site InvestigationThis SOW consists of a site safety plan,background research, sensitive receptor survey,site visit to pre-mark boring locations for Dig-Safe, completion of up to 10 soil borings andinstallation of up to 8 monitoring wells (5borings/wells minimum, one of which shall be in

the source area), soil sampling, 2 completerounds of groundwater sampling, well elevationsurvey, slug/bail down testing of up to 3 wells,project management, data review, conceptualmodel development and report preparation. Thecost for this SOW is based on two days ofdrilling.


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Supplemental Site InvestigationThis SOW consists of a site visit for Dig-Safemark-out, site safety plan, completing additionalborings and monitoring wells as requested byNHDES, soil sampling, one complete round ofgroundwater sampling from all monitoring points,

well elevation survey, project management andreport. The report shall include a summary ofsoil and groundwater quality to date, a revisedconceptual model, updated groundwater contourmap, proposed groundwater management zoneand updated contaminant plume map. The costfor this SOW is based on one day of drilling.

Project Transition Single ProjectThis SOW is applicable when there is a changein the consultant for a site/project, and includesthe costs for completing a review of NHDES files,

discussions with the NHDES project manager,field-verification site visit, preparation of healthand safety plan, conceptual model review,historical information review, and site plancreation.

Project Transition Multiple ProjectsThis SOW is applicable when there is a changein the consultant for multiple sites/projects, allunder the same ownership, and includes thecosts for completing a review of NHDES files,discussions with the NHDES project manager,field-verification site visit, preparation of healthand safety plan, conceptual model review,historical information review, and site plancreation. NHDES file review, discussion withNHDES project manager, and other activitiesmay be accomplished concurrently, and thesite(s)/project(s) have complex investigative orremedial issues, as determined by NHDES.

Dissolved-Contaminant Plume/GroundwaterManagement Zone (GMZ) Delineation

This SOW consists of completing additionalmonitoring well installations to define the limits ofa contaminant plume. The costs included areDig-Safe mark-out, site safety plan, monitoringwell installations, location and elevation survey,one round of groundwater sampling from newmonitoring wells, and coordination to update theSI data tables and site figures. The costs for this

SOW are based on one day of drilling on or offthe site.

One Round of Groundwater Monitoring (1-5wells)This SOW consists of groundwater and/ordrinking water sampling and reporting as

requested by NHDES, for a project location with1-5 wells. (Projects with greater than 5 wellsrequire a specific work scope and budgetapproval.) The data submittal shall include atabulated summary of analytical results, a revisedsite plan, groundwater elevation data, and labdata sheets. The cost for this SOW is based onthe number of wells where samples are collected,including monitoring well, surface water anddrinking water points. Minor product recovery viahand bailing, or replacement or absorbent

materials, is inclusive to this SOW for a samplingevent. Routine road box maintenance includingcleaning/replacement of gaskets and bolts shouldalso be performed.

One Round of Groundwater MonitoringIncrements for Wellhead Re-Survey & PrivateWater Supply SamplingIncremental cost increases to the one roundSOW, are allowed for off-site private watersupply sampling and wellhead elevation re-survey. The wellhead elevation re-surveyincrement includes coordination, fieldwork,calculations, data tabulation and site may update.The private water supply increments includemob/demob., travel, equipment rental andtransportation costs.

Annual or Periodic Summary ReportThis SOW consists of completing an annual orperiodic summary report. The summary reportshall include a tabulated summary of allanalytical data collected to date, graphical

presentation of trends in the data forrepresentative sample locations, an assessmentof the trends in the data, and anyrecommendations for remedial action plan orgroundwater management permit revisions. Theannual report shall include an updatedgroundwater contour map and contaminantplume map.


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Groundwater Management Permit ApplicationThis SOW consists of completing a GroundwaterManagement Permit Application form andproviding supporting information.

Renewal of Groundwater Management PermitThis SOW consists of completing a Renewal of

Groundwater Management Permit form andproviding supporting information.

Groundwater Management Permit Notification toLandowners & Deed RecordationThis SOW consists of providing notification of theGroundwater Management permit by certifiedmail to all owners of lots of record within the GMZand submitting documentation to NHDES. ThisSOW also includes recording notice of the permitin the local Registry of Deeds in the chain of titlefor each lot within the GMZ and submitting acopy of the recorded notice to NHDES. The costfor this SOW is based on notification andrecordation for up to 3 lots.

Site ClosureThis SOW is for completing final site closureactivities as authorized by NHDES, for purposesof receiving a Certificate of No Further Action.The work includes project management andtechnical support for: (1) project review and clientcoordination; (2) contractor coordination and

oversight for decommissioning up to 8overburden monitoring wells (or up to 120 linearfeet); (3) landowner notification and release ofdeed recordation; (4) coordination anddecommissioning of the site POE (only); (5) finalsite walkover; and (6) a brief letter report ofclosure activities including recommendations forfollow up work.

Residential Indoor Air SamplingThis SOW consists of completing a pre-samplinginspection conducted a minimum of 24 hours

prior to sampling, collection of 3 twenty four (24)hour time integrated indoor air samples, oneeach from the basement, first floor living spaceand an outdoor (ambient) sample and submittalof data to NHDES. The data submittal shallinclude copies of laboratory data, reported inunits of micrograms per meter cubed, and thecompleted Residential Indoor Air Sampling Form.

Sub-Slab Source Characterization for ResidentialOPUFThis SOW consists of completing cores throughthe concrete floor to obtain soil samples, screensoils with a PID, submit soil samples forlaboratory analysis as directed by NHDES, seal

core holes and complete a data submittal. Thedata submittal shall include a sketch showingsample locations, PID data and copies oflaboratory data. The cost for this SOW is basedon one day of fieldwork and includes anysubcontracted coring services.

Groundwater Quality Assessment for ResidentialOPUFThis SOW consists of completing a site visit forDig-Safe mark-out, site safety plan and thefollowing or as otherwise directed by NHDES:

Install up to 3 monitoring wells, (one well at aminimum to be installed as close as possible tothe source area in the presumed down gradientdirection), collect one round of groundwatersample(s), collect one source area soil sample,complete a well elevation survey (if all 3 wells areinstalled) and submit data results to NHDES.The data submittal shall include a site sketchshowing sample locations and the location of thedischarge, PID data and copies of laboratorydata. The cost for this SOW is based on one day

of drilling. Should the NHDES request additionalsampling round(s) the one-round of groundwatermonitoring task listed above may be used.

Soil Delineation Sampling and IncrementThis SOW consists of completing soil sampling tocharacterize the nature and extent of soilcontamination including in-situ disposalcharacterization sampling. Tasks included in thisSOW include dig-safe mark-out, completion ofsoil borings or test pits, collection of soil samplesfor extent and disposal characterization analysis

in accordance with NHDES and receiving facilityrequirements (for VPC soils this typically includesVOC, TPH and ignitability), and reportcompletion. The report shall include a site sketchshowing sample locations, location of discharge,lateral limits of contamination, calculationsestimating the amount of contaminant mass andquantity of soil (in tons) exceeding NHDES


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standards, PID data, copies of laboratory data,boring or test pit logs and recommendations.The cost for this SOW is based on one day of soilborings or test pits. An incremental cost increaseis allowed for soil delineation sampling thatrequires a second day of fieldwork.

Electronic Transmittal Monitoring StationLocation & Setup (See Appendix for AdditionalGuidance)This SOW is for one-time station locating usingGPS equipment and one-time station setup, forpurposes of periodic transmittal of public watersupply or corrective action water qualitymonitoring data via electronic media. One-timestation location and setup is as directed byNHDES using NHDES templates. Station fieldlocating is performed during a routine monitoring

event. The budget is for increments of up to six(6) stations.

Electronic Transmittal - Water Quality MonitoringField Data & Lab Data (See Appendix forAdditional Guidance)This SOW is for periodic transmittal of publicwater supply or corrective action water qualitymonitoring field and laboratory data via electronicmedia, as directed by NHDES using NHDEStemplates. The budget is for increments of up tosix (6) stations. The consulting firm or laboratorymay perform the work to populate the NHDEStemplate with laboratory analysis data, usingappropriate hourly personnel.


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VII. HOW-TO OBTAIN FUND PROGRAM COVERAGE & RECEIVE REIMBURSEMENT

How Can I Secure Fund ProgramCoverage?

Owners of regulated AST and UST

facilities should achieve compliancewith operational rules and thenmaintain compliance, or permanentlyclose a non-compliant facility. Facilityowners should be aware of NHDESinspection procedures, and beprepared to assist when inspectionsoccur.

Owners of residential fuel oil facilities

should contact their fuel oil dealer torequest an inspection, or otherwiseverify that the system is sound and inconformance with BMPs. NHDESstrongly recommends that buried fueloil lines in direct contact with theground be replaced.

AST, UST and on-premise-use fuel oil

facility owners must review theirinsurance policies and determine ifthere is pollution coverage, and thecoverage limits. NHDES recommendsthat owners of gasoline ethercontamination source sites also reviewinsurance coverage.

Owners of gasoline ethercontamination source sites, including

motor vehicle salvage yards anddealerships, should achieve andmaintain compliance with applicablerules for gasoline release prevention.Owners should be aware of NHDESinspection procedures, and be

prepared to assist when inspectionsoccur.

Owners should know there is a duty to

report petroleum contamination andStrict Liability may apply to a personwho caused or suffered a petroleumdischarge.

I Have Petroleum Contamination, At MyFacility Or Property What StepsShould I Follow?

Report to NHDES.

Hire a corrective action serviceprovider(s).

For the excess insurance funds,contact your insurer and specificallyrequest if coverage is available foranycorrective action costs that may beincurred. If there is no privateinsurance policy in force, a notarized

letter stating so will be needed.Owners of gasoline ethercontamination source propertiesshould also check availability ofinsurance.

Correct any facility compliancedeficiencies.

NHDES Has Requested CorrectiveAction & I Dont Have Insurance, Or MyOwn Funds

Many corrective action service providerswill work under a contract with provisionsfor direct payment as an Applicant to thefund program. If you are an on-premise-


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use fuel oil facility owner, you will have topay $500 to the service provider for thefund program deductible. If you are anowner of a regulated AST or UST facility,you will receive a bill for your fund

program deductible after the Applicantreceives payment for the firstreimbursement request. (There is nodeductible for the gasoline ether fund.)

Program Note: Proof of payment for invoicedcosts is not required.

If, due to financial hardship, you cannotpay the fund program deductible within 30

days of invoice receipt, you mustproposea payment plan to the Board. ContactNHDES for guidance and payment planapproval criteria.

I Have Incurred Corrective ActionCosts, & Have Limited InsuranceCoverage

If you have limited private insurancecoverage you must submit invoices to

your insurer until the limits of coverageare reached. If your insurer deniespayment of any costs as, not payablewithin the limits of coverage, you maysubmit these denied costs to the statefund program. You may not submit coststo the state fund program that are subjectto a private insurance deductible.However, you may use private insurance

specifically to cover the costs of state fundprogram AST or UST facility deductibles.You may also qualify for state fundcoverage due to a private policy thatincluded self-insured risk retentionprovisions.

When the limits of coverage under privateinsurance are reached, the state fundprogram is available and a qualifyingperson may submit reimbursementrequests.

What Does A Complete Fund ProgramEligibility Request Include?

The first step to obtain fund programcoverage is determining eligibility, which isrequested prior to an initial reimbursementclaim. Eligibility documents include:

Cover Letter. See eligibilityrequest cover letter format in the

Appendix; A completed Request For

Reimbursement Authorization form(found in the Appendix). The formis to request fund eligibility for thefirst reimbursement requestsubmitted by a facility owner oreligible property owner. If fundeligibility is transferred, a form is

needed prior to the first requestfrom the new owner;

Complete information on privateinsurance, including a statementexplaining the coverage limits, aletter denying coverage, or anotarized statement for un-insuredproperties;

Information on facility compliance,

which may be an OPUF inspectionletter, or information from NHDESprograms for regulated facilities;

For a subsidiary business,identifying information on theparent company, if any; and


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Information the owner has obtaineda Vendor Number if the ownerintends to submit reimbursementrequests, vs. a direct Applicant.

https://admin.state.nh.us/purchasing/vendorregistration/(S(mi5lxa45suxhgxzwfko22p45))/welcome.aspx

It should be noted that the ownerrequesting fund eligibility must match theresponsible party listed in the NHDESdatabase.

What Does A Complete Fund ProgramReimbursement Request Include?

Once eligibility is determined,reimbursement requests may besubmitted and include:

Cover Letter. See reimbursementrequest format in the Appendix. Areimbursement request cover letter

is needed for OneStop upload andpaper requests, but is not neededfor web-based requests;

A summary (listing) of invoicedexpenses is needed for OneStopupload and paper requests, but notweb-based requests;

A copy of the Work Scope

Approval, Change Order Approval,or NHDES corrective actionrequest letter applicable to therequest;

Copies of invoices from allcontractors and sub-contractors,and contractor timesheets or a

timesheet summary. Invoices mustbe directed to the facility owner oreligible property owner, including arequest submitted by an Applicant.Invoices cannot be directed to

NHDES; A copy of the services contract

between the facility owner oreligible property owner and the

Applicant, if applicable;

Employee wage, benefits, andequipment operating cost data forcorrective action performed by afacility owner or eligible property

owner;

Complete information on paymentsreceived from private insurance;and

A copy of the legal agreementstating a former facility owner isobligated to perform correctiveaction after ownership transfer.

I Do Not Have All RequiredDocumentation, Or Approvals

A waiver request may be submitted formissing documentation or approvalsincluding subcontractor invoices, lateregistration of an AST facility, or otherprovisions of the program rules, forconsideration by Board. The Board

cannot waive any rule that wouldconstitute a waiver of a statute. ContactNHDES for guidance concerning waiverrequests.


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Audits & Qualifications

Owners and Applicants must allow theBoard to conduct periodic financial auditsof all records related to a reimbursementrequest. Applicants that complete

NHDES training may submit web-basedreimbursement requests, and trained

Applicants can seek qualification forexpedited payment. Applicants mustmaintain Project Cost Ledgers regardlessof reimbursement submittal methodsused.

What Happens When An Eligibility

Request Is Submitted To NHDES?Eligibility requests are logged into adatabase for tracking, processing andreporting. If a request is not substantiallycomplete, it may be returned to thesender, or held until completed. NHDESpersonnel may telephone or email torequest additional information to completea request. If NHDES records indicate

facility compliance was not achieved therequest may also be held pendingverification of compliance. Eligibility canbe tracked using OneStop by checking thereview status of the request, and theproject status. Eligibility requests areprocessed quickly if there are nodocument completeness/complianceissues.

What Happens When A ReimbursementRequest Is Submitted To NHDES?

If a reimbursement request is notsubstantially complete for webacceptance, upload, or scanning it will bereturned to the sender, or held until

completed. NHDES personnel maytelephone or email to request additionalinformation to complete a request. Ifcomplete, the request is logged into adatabase for tracking, processing and

reporting. Expedited web-based requestsare processed for payment without review,provided technical reports are complete,and subject to periodic audit. Non-expedited web-based, upload, and paperrequests (that must be scanned) areassigned to a NHDES project manager forreview. Requests that involve a waiverrequest must be considered by the Boardafter NHDES review.

For requests assigned for review, theproject manager will determine (orconfirm) if the costs are reimbursableunder Board rules and policies, verify thatthe corrective action was performed, andverify that acceptable reports wereprovided by the contractor or consultant.

How Long Does It Take To Process A

Reimbursement Request?Reimbursement requests are reviewed inconsideration of the submittal method andpriority status of the project, or on a first-in, first-out basis if funds are limited.Expedited web-based requests arehighest priority, and are processed forpayment in approximately 2-3 weeks.Non-expedited web-based, upload, and

scanned requests are successively lowerpriority, and are reviewed and processedfor payment between 45 and 60 days. Allrequests require an additional 30 daysafter processing for payment via check ordirect deposit.


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When a request is approved NHDESissues a Notice of Reimbursement(NOR) that i

ofdb manual

Documents