                                 CODE OF VIRGINIA

VIRGINIA PETROLEUM STORAGE TANK FUND (§ 62.1-44.34:11)

A. The Virginia Petroleum Storage Tank Fund is hereby established as a
nonlapsing revolving fund to be used by the Board for (i) administering the
state regulatory programs authorized by Articles 9, 10 and 11 (§ 62.1-44.34:8
et seq.) of this chapter, (ii) demonstrating financial responsibility, and (iii)
other purposes as provided for by applicable provisions of state and federal
law. All expenses, costs, civil penalties, charges and judgments recovered by or
on behalf of the Board pursuant to Articles 9, 10 and 11 of this chapter, and
all moneys received as reimbursement in accordance with applicable provisions of
federal law and all fees collected pursuant to §§ 62.1-44.34:19.1 and
62.1-44.34:21, shall be deposited into the Fund. Interest earned on the Fund
shall be credited to the Fund. No moneys shall be credited to the balance in the
Fund until they have been received by the Fund. The Fund shall be established on
the books of the Comptroller and any funds remaining in such Fund at the end of
the biennium shall not revert to the general fund but shall remain in the Fund.
			The Fund shall be administered by the Board consistent with the provisions of
Subtitle I of the federal Solid Waste Disposal Act (P.L. 98-616, § 9001 et
seq.) and any approved state underground storage tank program and in accordance
with the following provisions:

   1. The Fund shall be maintained in a separate account. An accounting of moneys
   received and disbursed shall be kept, and furnished upon request to the
   Governor or the General Assembly.

   2. Disbursements from the Fund may be made only for the following purposes:
   				a. Reasonable and necessary per occurrence costs incurred for releases
   reported after December 22, 1989, by the owner or operator who is the
   responsible person, in taking corrective action for any release of petroleum
   into the environment from an underground storage tank which are in excess of
   the per occurrence financial responsibility requirement imposed in subsection
   B of &#xA7; 62.1-44.34:12, up to $1 million.				b. Reasonable and necessary
   per occurrence costs incurred for releases reported after December 22, 1989,
   by the owner or operator who is the responsible person for compensating third
   parties, including payment of judgments for bodily injury and property damage
   caused by the release of petroleum into the environment from an underground
   storage tank, which are in excess of the per occurrence financial
   responsibility requirement imposed by subsection B of &#xA7; 62.1-44.34:12, up
   to $1 million. The reasonableness and necessity of costs shall be determined
   based upon documented or actual damage, loss in value, and other relevant
   factors. Disbursements for third party claims shall be subordinate to
   disbursements for the corrective action costs in subdivision A 2 a of this
   section. Compensation for bodily injury and property damage shall be paid only
   in accordance with final court orders in cases which have been tried to final
   judgment no longer (i) subject to appeal, (ii) in accordance with final
   arbitration awards not subject to appeal, or (iii) where the Board approved
   the settlement of claim between the owner or operator and the third-party
   prior to execution by the parties.				c. Reasonable and necessary per
   occurrence costs incurred by an operator whose net annual profits from all
   facilities do not exceed $10 million for containment and cleanup of a release
   from a facility of a product subject to &#xA7; 62.1-44.34:13 as follows: (i)
   for an operator of a facility with a storage capacity less than 25,000
   gallons, per occurrence costs in excess of $2,500 up to $1 million; (ii) for
   an operator of a facility with a storage capacity from 25,000 gallons to
   100,000 gallons, per occurrence costs in excess of $5,000 up to $1 million;
   (iii) for an operator of a facility with a storage capacity from 100,000
   gallons to four million gallons, per occurrence costs in excess of $.05 per
   gallon of aboveground storage capacity up to $1 million; and (iv) for an
   operator of a facility with a storage capacity greater than four million
   gallons, per occurrence costs in excess of $200,000 up to $1 million. For
   purposes of this subdivision (2 c), the per occurrence financial
   responsibility requirements for an operator shall be based on the total
   storage capacity for the facility from which the discharge occurs.				d.
   Reasonable and necessary per occurrence costs incurred by an operator whose
   net annual profits from all facilities exceed $10 million for containment and
   cleanup of a release from a facility of a product subject to &#xA7;
   62.1-44.34:13 as follows: (i) for an operator of a facility with a storage
   capacity less than four million gallons, per occurrence costs in excess of
   $200,000 up to $1 million; (ii) for an operator of a facility with a storage
   capacity from four million gallons to 20 million gallons, per occurrence costs
   in excess of $.05 per gallon of aboveground storage capacity up to $1 million;
   and (iii) an operator of a facility with a storage capacity greater than 20
   million gallons shall have no access to the Fund. For purposes of this
   subdivision, the per occurrence financial responsibility requirements for an
   operator shall be based on the total storage capacity for all facilities
   located within the Commonwealth.				e. Costs incurred by the Board in taking
   immediate corrective action to contain or mitigate the effects of any release
   of petroleum into the environment from an underground storage tank or from
   underground storage tanks exempted in subdivisions 1 and 2 of the definition
   of underground storage tank in &#xA7; 62.1-44.34:10, if such action is
   necessary, in the judgment of the Board, to protect human health and the
   environment.				f. Costs of corrective action up to $1 million for any release
   of petroleum into the environment from underground storage tanks or from
   underground storage tanks exempted in subdivisions 1 and 2 of the definition
   of underground storage tank in &#xA7; 62.1-44.34:10 (i) whose owner or
   operator cannot be determined by the Board within 90 days; or (ii) whose owner
   or operator is incapable, in the judgment of the Board, of carrying out such
   corrective action properly.				g. Costs of corrective action incurred by the
   Board for any release of petroleum into the environment from underground
   storage tanks which are otherwise specifically listed in exemptions 1 through
   9 of the definition of an underground storage tank in &#xA7;
   62.1-44.34:10.				h. Reasonable and necessary per occurrence costs of
   corrective action incurred for releases reported after December 22, 1989, by
   the owner or operator in excess of $500 up to $1 million for any release of
   petroleum into the environment from an underground storage tank exempted in
   subdivisions 1 and 2 of the definition of an underground storage tank in
   &#xA7; 62.1-44.34:10 and aboveground storage tanks with a capacity of 5,000
   gallons or less used for storing heating oil for consumption on the premises
   where stored.				i. The &#8220;cost share&#8221; of corrective action with
   respect to any release of petroleum into the environment from underground
   storage tanks undertaken under a cooperative agreement with the Administrator
   of the United States Environmental Protection Agency, as determined by the
   Administrator of the United States Environmental Protection Agency in
   accordance with the provisions of &#xA7; 9003 (h) (7) (B) of the United States
   Public Law 98-616 (as amended in 1986 by United States Public Law
   99-662).				j. Administrative costs incurred by the Board in carrying out the
   provisions of regulatory programs authorized by Articles 9, 10, and 11 (&#xA7;
   62.1-44.34:8 et seq.) of this chapter.				k. All costs and expenses, including
   but not limited to personnel, administrative, and equipment costs and
   expenses, directly incurred by the Board or by any other state agency acting
   at the direction of the Board, in and for the abatement, containment, removal
   and disposal of oil pursuant to Article 11 (&#xA7; 62.1-44.34:14 et seq.) of
   Chapter 3.1 of this title.				l. Procurement, maintenance and replenishment of
   materials, equipment and supplies, in such quantities and at such locations as
   the Board may deem necessary, for the abatement, containment, removal and
   disposal of oil pursuant to Article 11 (&#xA7; 62.1-44.34:14 et seq.) of
   Chapter 3.1 of this title.				m. Costs and expenses, incurred by the Board or
   by any other state agency, acting at the direction of the Board, for the
   protection, cleanup and rehabilitation of waterfowl, wildlife, shellfish beds
   and other natural resources, damaged or threatened by the discharge of oil,
   owned by the Commonwealth or held in trust by the Commonwealth for the benefit
   of its citizens.				n. Refund of cash deposits held in escrow pursuant to
   Article 11 (&#xA7; 62.1-44.34:14 et seq.) of Chapter 3.1 of this title and
   reasonable interest thereon, and refunds of fees collected pursuant to &#xA7;
   62.1-44.34:21 as authorized by this chapter.				o. Administrative costs
   incurred by the Department of Motor Vehicles in the collection of fees
   specified in &#xA7; 62.1-44.34:13.				p. Reasonable and necessary costs
   incurred by the Virginia Department of Transportation in taking corrective
   action on property acquired for transportation purposes. If the costs of
   taking corrective action are recovered, in whole or in part, from any
   responsible party, the recovery shall be deposited to the Fund.				q.
   Reasonable and necessary per occurrence costs for releases reported after
   December 22, 1989, in taking corrective action for any release of petroleum
   into the environment from an underground storage tank, which are in excess of
   $5,000 up to $1 million, by any person who, without participating in the
   management of an underground storage tank or being otherwise engaged in
   petroleum production, refining, and marketing, holds indicia of ownership
   primarily to protect the holder&#8217;s security interest in the tank.

   3. No funds shall be paid for reimbursement of costs incurred for corrective
   action taken prior to December 22, 1989, by an owner or operator of an
   underground storage tank, or an owner of an underground storage tank exempted
   in subdivisions 1 and 2 of the definition of an underground storage tank in
   &#xA7; 62.1-44.34:10, or an owner of an aboveground storage tank with a
   capacity of 5,000 gallons or less used for storing heating oil for consumption
   on the premises where stored.

   4. No funds shall be paid for reimbursement of costs incurred prior to January
   1, 1992, by an operator of a facility for containment and cleanup of a release
   from a facility of a product subject to &#xA7; 62.1-44.34:13.

   5. No funds shall be paid for reimbursement of moneys expended for payment of
   interest or other finance charges on loans which were used for corrective
   action or containment and cleanup of a release by a person in subdivisions A 3
   or A 4 of this section, except for an owner or operator which is exempt from
   taxation under &#xA7; 501 (c) (3) of the Internal Revenue Code, provided that:
   (i) the loan moneys have been paid for corrective action that was pre-approved
   by the Board, (ii) any and all disbursements received from the Fund shall be
   paid against the loan or for interest and points, and (iii) the payment of
   interest and points under this subdivision shall be limited to five years from
   the date the release is reported to the Board. The Board may extend the period
   for payment of interest and points if, in the judgment of the Board, such
   action is necessary. The restrictions imposed in clauses (i), (ii) and (iii)
   shall not apply to loans made prior to June 1, 1992, to an owner or operator
   exempt from taxation under &#xA7; 501 (c) (3) of the Internal Revenue Code.

   6. No funds shall be paid for penalties, charges or fines imposed pursuant to
   any applicable local, state or federal law.

   7. No funds shall be paid for containment and cleanup costs that are
   reimbursed or are reimbursable from other applicable state or federal
   programs.

   8. No funds shall be paid if the operator of the facility has not complied
   with applicable statutes or regulations governing reporting, prevention,
   containment and cleanup of a discharge of oil.

   9. No funds shall be paid if the owner or operator of an underground storage
   tank or the operator of an aboveground storage tank facility fails to report a
   release of petroleum or a discharge of oil to the Board as required by
   applicable statutes, laws or regulations.

   10. No funds shall be paid from the Fund unless a reimbursement claim has been
   filed with the Board within two years from the date the Board issues a site
   remediation closure letter for that release or July 1, 2000, whichever date is
   later.

   11. The Fund balance shall be maintained at a level sufficient to ensure that
   the Fund can serve as a financial responsibility demonstration mechanism for
   the owners and operators of underground storage tanks. Any disbursements made
   by the Board pursuant to subdivision 2 of this subsection may be temporarily
   reduced or delayed, in whole or in part, if such action is necessary, in the
   judgment of the Board, to maintain the Fund balance.

B. The Board shall seek recovery of moneys expended from the Fund for corrective
action under this section where the owner or operator of an underground storage
tank has violated substantive environmental protection rules and regulations
pertaining to underground storage tanks which have been promulgated by the
Board.

C. For costs incurred for corrective action as authorized in subdivision A 2 e
of this section, the Board shall seek recovery of moneys from the owner or
operator of an underground storage tank up to the minimum financial
responsibility requirement imposed on the owner or operator in subsection B of
&#xA7; 62.1-44.34:12 if any, or seek recovery of such costs incurred from any
available federal government funds.

D. For costs incurred for corrective action taken resulting from a release from
underground storage tanks specified in subdivision A 2 f of this section, the
Board shall seek recovery of moneys from the owner or operator up to the minimum
financial responsibility requirement imposed on the owner or operator in
subsection B of &#xA7; 62.1-44.34:12 if any, or seek recovery of such costs
incurred from any available federal government funds.

E. The Board shall seek recovery of moneys expended from the Fund for costs
incurred for corrective action as authorized in subdivision A 2 g of this
section or seek recovery of such costs incurred from any available federal
government funds. However, the Board shall not seek recovery of moneys expended
from the Fund for costs of corrective action in excess of $500 from the owner or
operator of an underground tank exempted in subdivisions 1 and 2 of the
definition of underground storage tank in &#xA7; 62.1-44.34:10 and aboveground
storage tanks with a capacity of 5,000 gallons or less used for storing heating
oil for consumption on the premises where stored.

F. The Board shall have the right of subrogation for moneys expended from the
Fund as compensation for personal injury, death or property damage against any
person who is liable for such injury, death or damage.

G. The Board shall promptly initiate an action to recover all costs and expenses
incurred by the Commonwealth for investigation, containment and cleanup of a
discharge of oil or threat of discharge against any person liable for a
discharge of oil as specified in Article 11 (&#xA7; 62.1-44.34:14 et seq.) of
Chapter 3.1 of this title; however, the Board shall seek recovery from an
operator of expenditures from the Fund only in the amount by which such
expenditures exceed the amount authorized to be disbursed to the operator under
subdivisions A 2 through A 8 of this section.

HISTORY: 1987, c. 677; 1989, cc. 430, 627; 1990, cc. 580, 581, 582, 917; 1992,
cc. 456, 819; 1993, cc. 20, 375; 1994, cc. 196, 535; 1996, cc. 737, 979; 1998,
c. 87; 2004, c. 485.