Introduced By: Senator Enos, Fogarty, Walsh, Lenihan and Paiva Weed
Date Introduced : January 14, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Sections 46-12.9-3, 46-12.9-5 and 46-12.9-6 of the General Laws in Chapter 46-12.9 entitled "Rhode Island Underground Storage Tank Financial Responsibility Act" are hereby amended to read as follows:
46-12.9-3. Definitions. -- When used in this chapter:
(1) "Department" means the Rhode Island department of environmental management.
(2) "Director" means the director of the department of environmental management or his or her designee.
(3) "Fund" means the Rhode Island underground storage tank financial responsibility fund established herein.
(4) "Fund administrator" means the clean water finance agency established pursuant to the provisions of chapter 12.2 of title 46 or any other agency of state government designated by the governor.
(5) "Operator" means any person in control of, or having the responsibility for, the daily operation of an underground storage tank system.
(6) "Owner" means any agency or political subdivision of the state, any municipality, public or private corporation or authority, individual, trust, firm, joint stock company, partnership, association or other entity, and any officer, employee or agent thereof.
(7) "Petroleum" means crude oil, crude oil fractions, and refined petroleum fractions, including gasoline, kerosene, heating oils, used/waste oil and diesel fuels.
(8) "Release" means any leaking, emitting, discharging, escaping or leaching of petroleum from any underground storage tank or underground storage tank system into the environment.
(9) "Responsible party" means the person or persons liable for release of petroleum.
(10) "Review board" means the Rhode Island underground storage tank financial responsibility review board established pursuant to the provisions of section 47-12.9-8.
(11) "Site" means any location at which or from which there has been a release of petroleum associated with an underground storage tank or an underground storage tank system or any location to which such petroleum has migrated.
{ADD For the purposes of this chapter, "site" shall also include a petroleum leak or spill from any source on any location owned or occupied by any city or town, the state or any agency of the state. ADD}
(12) "Underground storage tank" means any one or combination of tanks, including underground pipes connected thereto, used to contain an accumulation of petroleum and the volume of which, including the volume of underground pipes connected thereto, is ten percent (10%) or more beneath the surface of the ground.
(13) "Underground storage tank system" means an underground storage tank and its associated ancillary equipment and containment system, if any.
46-12.9-5. Purpose of fund. -- The purpose of the
fund shall be to facilitate the clean-up of leaking underground
storage tanks {ADD , ADD} {DEL or DEL} underground storage
tank systems, {ADD and sites owned or occupied by a city, town,
the state or any agency of the state ADD} in order to protect the
environment including drinking water supplies and public health.
The fund shall provide reimbursement to responsible parties for
the eligible costs, expenses and other obligations incurred by
them as a result of release of petroleum from underground storage
tanks or underground storage tank system as provided herein. Monies
in the fund shall be dispensed only upon the order of the general
treasurer or his or her designee for the following purposes, and
only after the approval of the review board:
(1) Administrative expenses, personnel, expenses and miscellaneous costs directly related to the fund management incurred by the fund administrator and approved by the review board in carrying out fund activities; provided, however, that no more than five hundred and fifty thousand dollars ($550,000) shall be dispensed from the fund for administrative purposes during the fiscal year; and
(2) The fund shall pay not more than one million dollars ($1,000,000) of eligible costs, expenses and other obligations as defined in regulations promulgated hereunder and, as further defined in subsection (3) excluding legal costs and expenses, incurred by a responsible party as a result of a release of petroleum from an underground storage tank or underground storage tank system; provided, however, that a responsible party shall be responsible for the first twenty thousand dollars ($20,000) of said costs, expenses and other obligations excluding legal costs and expenses; and
(3) Costs, expenses and other obligations as shall be incurred by the responsible party for site investigation, site remediation or other corrective action activities ordered or directed by the department or voluntarily done by the responsible party; provided, however, that a responsible party must bear the financial responsibility set forth in subsection (2) of this section; and
(4) Reimbursement for any third party claim including, but not limited to, claims for bodily injury, property damage and damage to natural resources which are asserted against a responsible party and which have arisen as a result of a release of petroleum from an underground storage tank or underground storage tank system in an amount not to exceed one million dollars ($1,000,000) for each release as set forth in subsection (2) of this section; provided, that such claims are found by the review board to be justified, reasonable, related to the release of petroleum and not excessive or spurious in nature; and
(5) Costs, expenses or obligations incurred by the department in carrying out the investigative, remedial and corrective action activities at sites of a petroleum release associated with an underground storage tank or underground storage tank system where the responsible party fails to comply with an order of the department to take such corrective action. In the event of such failure, the department may access the fund to perform the ordered work and shall proceed to recover from the responsible party on behalf of the fund any amount expended from the fund by the department including expenses of not more than twenty thousand dollars ($20,000).
(6) Nothing contained in this chapter shall be construed to prevent subrogation by the state of Rhode Island against any responsible party other than the owner and/or operator for all sums of money which the fund shall be obligated to pay hereunder plus reasonable attorneys' fees and costs of litigation and such right of subrogation is hereby created.
{ADD (7) Notwithstanding the provisions of this section, no city or town, the state nor any state agency shall be responsible for the costs set forth in this section in order to be eligible for reimbursement from the fund for costs, expenses and reimbursement to facilitate the clean-up of a site. The provisions of this subsection shall apply to the owner of or other successor in interest of a location which was previously owned or occupied by a city or town, the state, or a state agency. ADD}
46-12.9-6. Eligibility. -- {ADD (a) ADD} In order to be eligible for reimbursement from the fund for costs, expenses and other obligations as set forth in section 46-12.9-5, a responsible party must be subject to financial responsibility as required by the EPA and:
(1) Have complied with all state technical requirements for underground storage tanks and underground storage tank systems as promulgated by the department of environmental management pursuant to chapter 12 of this title and chapter 17.1 of title 42, including but not limited to, requirements for registration, proper installation, spill containment, line leak detection, corrosion protection, leak detection, tank tightness testing, inventory control, closure and leak or spill reporting;
(2) Have incurred a cost, expense or obligation, whether for clean-up or related matters or for claims of third parties resulting from a release of petroleum from an underground storage tank or underground storage tank system. In order to apply for reimbursement from the fund, it shall not be necessary that the third party and the responsible party complete adjudication of any claim before submission to the review board; provided, however, that all such claims shall be reasonably verified and must be demonstrated to the reasonable satisfaction of the review board in order to be considered eligible for reimbursement.
{ADD (b) As set forth in section 46-12.9-5 cities and towns, the state or any state agency and the owners or other successors in interest of a site location shall be eligible for reimbursement from the fund notwithstanding the fact that the city or town, the state or state agency or the owner or other successor in interest of a site previously owned or occupied by a city or town, the state or a state agency has not complied with the financial requirements of section 46-12.9-5. ADD}
{ADD (c) The fact that the responsible party, as defined in section 46-12.9-3(9) cannot be determined shall not prevent eligibility for reimbursement from the fund. The review board shall, if it deems it necessary, establish criteria for reimbursement from the fund if the responsible party cannot be determined. ADD}
SECTION 2. This act shall take effect upon passage.