in-20260128-IR-328260013RAA: 328 IAC 1-1-3

TITLE 328 UNDERGROUND STORAGE TANK FINANCIAL ASSURANCE BOARD Regulatory Analysis LSA Document #26-13 I. Description of Rule II. Fiscal Impact Analysis III. Impacted Parties IV. Changes in Proposed Rule Rule Citation Proposed Changes 328 IAC 1-1-3 Updates the definition of “corrective action” instead of citing 329 IAC 9-1-14.5. The cited rule includes a reference to another rule that has since been repealed. 328 IAC 1-1-3.1 Updates the definition of “corrective action plan” to include aboveground storage tanks (ASTs) in accordance with IC 13-23-11-7, and cite the federal definition found at 40 CFR 280.66. 328 IAC 1-1-5.1 Removes a subsection that the agency believes is unnecessary and includes threats to “property” to better align the rule to IC 13-23-9-1.5. 328 IAC 1-1-7 Repeals the definition of “occurrence” because the word will no longer be used in the rule. 328 IAC 1-1-7.5 Amends the definition of “Off-site” to include ASTs in conformity with IC 13-23-11-7. 328 IAC 1-1-8.3 Amends the definition of “Reasonable” to clarify the agency's policy of risk-based remediation. Also includes new references to relevant statutes. 328 IAC 1-1-8.4 Adds a new definition of “Responsible Party” to provide more clarity to claimants. 328 IAC 1-1-8.5 Amends the definition of “Site Characterization” to remove obsolete references to the Indiana Administrative Code and insert references to the Code of Federal Regulations and relevant state statutes. 328 IAC 1-2-1 Removes unnecessary citations and clarifies that the cost range or amount of reimbursable costs are determined by the date the work was completed. Specifies that reimbursement eligibility is determined by the limits in effect on the date of application submission and NOT when the release occurred or was discovered. 328 IAC 1-3-1 Clarifies who may access the ELTF and eliminates references to “fund” in favor of “ELTF” to provide more clarity and consistency. The section also includes new language describing the information required from applicants seeking ELTF eligibility. 328 IAC 1-3-1.3 Adds language that permits the agency to request additional information from claimants to help determine the cost-effectiveness of work. Adds language to ensure remediation objectives are consistent with statutory requirements. Adds language that clarifies the agency's ability to determine that a corrective action plan is no longer cost-effective. 328 IAC 1-3-1.6 Provides instructions for preapproval of work. Provides exceptions for preapproval in accordance with the Code of Federal Regulations. Outlines information required of applicants seeking preapproval of work. 328 IAC 1-3-3 Modifies language for clarity and inserts relevant references to state statutes and the Code of Federal Regulations. Also imposes a 365-day deadline for the submission of certain reimbursable costs incurred before the effective date of this rule. Removes language concerning claims for releases made prior to July 2016, as this language is no longer relevant. Inserts references to ASTs in conformity with IC 13-23-11-7 and relevant form contents. 328 IAC 1-3-5 Makes minor stylistic changes and inserts references to relevant citations to conform with changes elsewhere in the rulemaking. Inserts references to ASTs in conformity with IC 13-23-11-7. Clarifies that reimbursable maintenance must be reasonable and that insurance payments are not reimbursable. Removes most of the prior reimbursement rates as to not conflict with the following section. Specifies that labor rates are indexed to the average monthly producer price index. Includes references to documents required by the Code of Federal Regulations and broadens the language to allow more types of risk evaluations. 328 IAC 1-3-5.1 This section incorporates the maximum hours of work that are reimbursable through the ELTF for tasks related to site characterization and investigations, drilling oversight and sampling activities, groundwater monitoring, site closure, ELTF claim preparation, and other miscellaneous tasks. The section also specifies the maximum rates to be reimbursed from the ELTF for specified analytical, drilling, equipment, and well abandonment costs. 328 IAC 1-3-5.2 This new section details when costs are eligible for reimbursement from the ELTF after a “no further action” status is granted for the eligible release. This section is required by IC 13-23-11-7(a)(1)(F). 328 IAC 1-3-5.3 This new section provides the conditions under which the subsequent owner of a property that suffered damage from a leaking UST or AST is eligible for reimbursement from the ELTF for remediation costs. 328 IAC 1-5-1 Makes minor stylistic and conforming changes. Specifies that claims for less than $5,000 are required to conform with the 365-day deadline in 328 IAC 1-3-3. Details the information required from applicants in their application for reimbursement. 328 IAC 3 This new article provides rules for the new requirements at IC 13-23-11-7, which allow for reimbursement of 50% of the costs of decommissioning and replacing USTs.

V. Benefit Analysis

Year # Appeals total # Cost appeals # of appeals disputing reasonableness and cost effectiveness 2025 3 1 n/a 2024 4 2 2 2023 7 4 2 2022 18 13 10 2021 11 11 9 2020 5 2 n/a 2019 12 9 6 VI. Cost Analysis VII. Sources of Information VIII. Regulatory Analysis IX. Contact Information of Staff to Answer Substantive Questions _________________________ 1 See 40 CFR 281.37 (2025). 2 See IC 13-23-7 (2025). 3 See IC 13-23-9-1.5 (2025). 4 S.E.A. 246, 123rd Gen. Assemb., 1st Reg. Sess. (Ind. 2023), codified at IC 13-23-7 (2025). 5 IC 13-23-9-1.7 (2025). 6 Specifically, IC 13-23-9-1.7(b) (2025) limits annual reimbursement for the decommissioning or replacement of USTs to $10,000,000 for claims submitted by applicants owning not more than twelve USTs; $7,500,000 for claims submitted by applicants owning more than twelve but not more than one hundred USTs; and $2,500,000 for claims submitted by applicants owning more than one hundred USTs. 7 Indiana Department of Environmental Management. (2024). Energy Policy Act Public Record Summary Information on Underground Storage Tanks. https://www.in.gov/idem/tanks/files/records_energy_policy_act.pdf 8 See IC 13-23-9-1.7(b), supra note 6 9 Ind. Dept. of Env't. Mgmt., Waste-0078-NPD-R1, Excess Liability Trust Fund Cost Guidance (2024) Notice of First Public Comment Period: 20260128-IR-328260013FNA Notice of Determination Received: December 22, 2025