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The Vermont Statutes Online
Title
10
:
Conservation and Development
Chapter
059
:
UNDERGROUND AND ABOVEGROUND LIQUID STORAGE TANKS
Subchapter
002
:
UNDERGROUND STORAGE TANK ASSISTANCE PROGRAM
§
1941. Petroleum Cleanup Fund
(a) A fund to be
known as the Petroleum Cleanup Fund is created in the State Treasury, to be
expended by the Secretary of Natural Resources. The Fund shall consist of
licensing fees and petroleum tank fees assessed under the provisions of this
chapter, loan repayments, and disbursements that have been recovered, except
for underground storage tank permit fees and licensing fees for tank
inspectors. The Fund shall have two accounts: the Motor Fuel Account and the
Heating Fuel Account. The Motor Fuel Account shall consist of all monies
deposited into the Fund, with the exception of the licensing fees for heating
oil and kerosene described in section 1942 of this title. The Heating Fuel
Account shall consist of all the monies deposited into the Fund from the
licensing fees for heating oil and kerosene sold or used in the State. All
balances in the Fund at the end of any fiscal year shall be carried forward and
remain a part of the Fund. The Secretary may transfer money, in each fiscal
year, between the accounts, provided that the transfer is approved by the
advisory committee established under subsection (e) of this section and does
not exceed $750,000.00. Interest earned by the Fund shall be deposited into the
Fund. Disbursements from the Fund shall be made by the State Treasurer on
warrants drawn by the Commissioner of Finance and Management. The Secretary
shall seek to recover from responsible parties costs incurred under subdivision
(b)(8) of this section.
(b) The
Secretary may authorize disbursements from the Fund for the purpose of the
cleanup and restoration of contaminated soil and groundwater caused by releases
of petroleum from underground storage tanks and aboveground storage tanks,
including air emissions for remedial actions, and for compensation of third
parties for injury and damage caused by a release. This Fund shall be used for
no other governmental purposes, nor shall any portion of the Fund ever be
available to borrow from by any branch of government; it being the intent of
the General Assembly that this Fund and its increments shall remain intact and
inviolate for the purposes set out in this chapter. Disbursements under this
section may be made only for uninsured costs incurred after January 1, 1987 and
for which a claim is made prior to July 1, 2019 and judged to be in conformance
with prevailing industry rates. This includes:
(1) costs
incurred by taking corrective action as directed by the Secretary for any
release of petroleum into the environment from:
(A) an
underground storage tank defined as a category one tank, provided disbursements
on any site shall not exceed $1,240,000.00 and shall be made from the Motor
Fuel Account, as follows:
(i) after the
first $10,000.00 of the cleanup costs have been borne by the owners or
operators of double-wall tank systems used for commercial purposes;
(ii) after the
first $15,000.00 of cleanup costs have been borne by the owners or operators of
combination tank systems, whether lined or unlined, used for commercial purposes,
unless the system is a lined combination tank system that has been granted a
five-year extension under subsection 1927(f) of this title;
(iii) after the
first $25,000.00 of cleanup costs have been borne by the owners or operators of
lined combination tank systems that have been granted a five-year extension to
operate under subsection 1927(f) of this title;
(iv) after the
first $25,000.00 of cleanup costs have been borne by the owners or operators of
single-wall tank systems used for commercial purposes;
(B) an
underground motor fuel tank after the first $250.00 of the cleanup costs have
been borne by the owners or operators of tanks with a capacity equal to or less
than 1,100 gallons and used for farming or residential purposes. Disbursements
on any site shall not exceed $990,000.00 and shall be made from the Motor Fuel
Account;
(C) an
underground heating fuel tank used for on-premise heating after the first
$10,000.00 of the cleanup costs have been borne by the owners or operators of
tanks with capacities over 1,100 gallons used for commercial purposes, or after
the first $250.00 of the cleanup costs have been borne by the owners or
operators of tanks with capacities equal to or less than 1,100 gallons used for
commercial purposes, or after the first $250.00 of the cleanup costs have been
borne by the owners or operators of residential and farm tanks. Disbursements
on any site shall not exceed $990,000.00 and shall be made from the Heating
Fuel Account;
(D) an
aboveground storage tank site after the first $1,000.00 of the cleanup costs
have been borne by the owners or operators of tanks used for commercial
purposes, or after the first $250.00 of the cleanup costs have been borne by
the owners or operators of residential and farm tanks. Disbursements under this
subdivision (b)(1)(D) on any individual site shall not exceed $25,000.00. These
disbursements shall be made from the Motor Fuel Account or Heating Fuel
Account, depending upon the use or contents of the tank;
(E) a bulk
storage aboveground motor fuel or heating fuel storage tank site after the
first $10,000.00 of the cleanup costs have been borne by the owners or
operators of tanks used for commercial purposes. Disbursements under this
subdivision (b)(1)(E) on any individual site shall not exceed $990,000.00.
These disbursements shall be made from the Motor Fuel Account;
(F) if a site is
contaminated by petroleum releases from both heating fuel and motor fuel tanks,
or where the source of the petroleum contamination has not been ascertained,
the Secretary shall have the discretion to disburse funds from either the
Heating Fuel or Motor Fuel Account, or both;
(2) costs
incurred in compensating third parties for bodily injury and property damage,
as approved by the Secretary in consultation with the Commissioner of Financial
Regulation caused by release of petroleum from an underground category one
storage tank into the environment from a site, up to $1 million, but shall not
include payment of any punitive damages;
(3) costs
incurred 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 aboveground storage tank if, in the judgment of the Secretary,
such action is necessary to protect the public health and the environment. The
Secretary may seek reimbursement of the first $10,000.00 of the costs;
(4) the cost of
corrective action up to $1 million for any release of petroleum into the
environment from an underground storage tank or tanks:
(A) whose owner,
in the judgment of the Secretary, is incapable of carrying out the corrective
action; or
(B) whose owner
or operator cannot be determined; or
(C) Repealed.]
(D) whose owner,
in the judgment of the Secretary, is financially incapable of carrying out the
corrective action in a timely manner;
(5) Repealed.]
(6) the costs of
creating and operating a risk retention pool authorized by section 1939 of this
title, which costs are in excess of a reasonable contribution by participants,
as determined by the Secretary with the advice of the Commissioner of Financial
Regulation. The authority for disbursements under this subdivision shall
terminate on June 1, 1992;
(7)
administrative and field supervision costs incurred by the Secretary in
carrying out the provisions of this subchapter. Annual disbursements shall not
exceed six percent of annual receipts;
(8) the cost of
initiating spill control procedures, removal actions and remedial actions to
clean up spills of oil and other petroleum products where the responsible party
is unknown, cannot be contacted, is unwilling to take action or does not take
timely action that the Secretary considers necessary.
(c) The
Secretary may use up to one-half the amount deposited to the Motor Fuel Account
of the Fund from the licensing fees assessed under section 1942 of this title
to capitalize the Underground Motor Fuel Storage Tank Loan Assistance Program
established by section 1944 of this title and the cost of administering the
Program. If the Secretary determines that a balance will remain after all
qualifying loan applications have been satisfied, the unneeded balance may be
used for cleanup. The Secretary may use the amount in the Heating Fuel Account
of the Fund for purposes of funding measures related to heating oil and kerosene.
(d)
Disbursements from the Fund for cleanup costs incurred prior to passage shall
be limited to uninsured costs.
(e) The
Secretary shall establish a Petroleum Cleanup Fund Advisory Committee which
shall meet not less than annually to review receipts and disbursements from the
Fund, to evaluate the effectiveness of the Fund in meeting its purposes, the
reasonableness of the cost of cleanup and to recommend alterations and
statutory amendments deemed appropriate. The Advisory Committee shall submit an
annual report of its findings to the General Assembly on January 15 of each
year. In its annual report, the Advisory Committee shall review the financial
stability of the Fund, evaluate the implementation of assistance related to
underground farm or residential heating fuel storage tanks and aboveground
storage tanks, and the need for continuing assistance, and shall include
recommendations for sustainable funding sources to finance the provision of
that assistance. The provisions of 2 V.S.A. § 20(d)(expiration of required
reports) shall not apply to the report to be made under this subsection. The
membership of the Committee shall include the following or their designated
representative:
(1) the
Secretary of Natural Resources who shall be chairperson;
(2) the Commissioner
of Environmental Conservation;
(3) the
Commissioner of Financial Regulation;
(4) a licensed
gasoline distributor;
(5) a retail
gasoline dealer;
(6) a
representative of a statewide refining-marketing petroleum association;
(7) one member
of the House to be appointed by the Speaker of the House;
(8) one member
of the Senate to be appointed by the Committee on Committees;
(9) a licensed
heating fuel dealer;
(10) a
representative of a statewide heating fuel dealers' association;
(11) a licensed
real estate broker.
(f) The
Secretary may seek reimbursement to the Fund of cleanup expenditures only when
the owner of the tank is in significant violation of his or her permit or
rules, or when a required fee has not been paid for the tank from which the release
occurred or, to the extent covered, when there is insurance coverage. When the
Secretary has paid the first $10,000.00 of costs under subdivision (b)(4)(D) of
this section, the Secretary may seek reimbursement of those costs.
(g) The owner of
a farm or residential heating fuel storage tank used for on-premises heating or
an underground or aboveground heating fuel storage tank used for on-premises
heating by a mobile home park resident, as defined in section 6201 of this
title, who desires assistance to close, replace, or upgrade the tank may apply
to the Secretary for such assistance. The financial assistance may be in the
form of grants of up to $2,000.00 or the costs of closure, replacement, or
upgrade, whichever is less. Grants shall be made only to the current property
owners, except at mobile home parks where a grant may be awarded to a mobile
home park resident. To be eligible to receive the grant, an environmental site
assessment must be conducted by a qualified consultant during the tank closure,
replacement, or upgrade if the tank is an underground heating fuel storage
tank. In addition, if the closed tank is to be replaced with an underground
heating fuel storage tank, the replacement tank and piping shall provide a
level of environmental protection at least equivalent to that provided by a
double wall tank and secondarily contained piping. Grants shall be awarded on a
priority basis to projects that will avoid the greatest environmental or health
risks. The Secretary shall also give priority to applicants who are replacing
their underground heating fuel tanks with aboveground heating fuel storage
tanks that will be installed in accordance with the Secretary's recommended
standards. The Secretary shall also give priority to lower income applicants.
To be eligible to receive the grant, the owner must provide the previous year's
financial information, and, if the replacement tank is an aboveground tank,
must assure that any work to replace or upgrade a tank shall be done in
accordance with industry standards (National Fire Protection Association, or
NFPA, Code 31), as it existed on July 1, 2004, until another date or edition is
specified by rule of the Secretary. The Secretary shall only authorize up to
$350,000.00 in assistance for underground and aboveground heating fuel tanks in
any one fiscal year from the Heating Fuel Account for this purpose. The
application must be accompanied by the following information:
(1) proof of
ownership, including information disclosing all owners of record of the property,
except in the case where the applicant is a mobile home park resident;
(2) for farm or
residential aboveground heating fuel storage tank owners, a copy of the federal
income tax return for the previous year;
(3)
identification of the contractor performing any heating fuel storage tank
closure, replacement, or upgrade;
(4) an estimated
cost of tank closure, replacement, or upgrade;
(5) the amount
and type of assistance requested;
(6) a schedule
for the work;
(7) description
of surrounding area, including location of water supply wells, surface waters,
and other sensitive receptors; and
(8) such other
information and assurances as the Secretary may require. (Added 1987, No. 282
(Adj. Sess.), § 1; amended 1989, No. 110, §§ 8, 8a, eff. June 20, 1989; 1989,
No. 225 (Adj. Sess.), § 25; 1991, No. 50, § 197a; 1991, No. 85, § 4; 1991, No.
225 (Adj. Sess.), § 2; 1993, No. 188 (Adj. Sess.), § 1; 1995, No. 180 (Adj.
Sess.), § 38; 1997, No. 12, §§ 2, 3; 1997, No. 132 (Adj. Sess.), § 8, eff.
April 23, 1998; 1997, No. 155 (Adj. Sess.), § 36; 1999, No. 128 (Adj. Sess.), §
1; 2003, No. 48, § 1, eff. June 2, 2003; 2003, No. 153 (Adj. Sess.), § 1; 2007,
No. 18, § 3; 2007, No. 192 (Adj. Sess.), § 6.002; 2009, No. 22, § 4; 2009, No.
160 (Adj. Sess.), § 42; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012;
2013, No. 55, § 3, eff. May 30, 2013; 2013, No. 142 (Adj. Sess.), § 19.)
