There is an Underground Storage Tank Upgrade and Replacement Fund. The Fund shall be used to provide loans to owners of underground storage tanks to finance eligible costs of upgrading and replacing underground storage tanks. The provisions of this subtitle do not apply to underground storage tanks: That are exempt under § 4–409(b)(3) of this title; That are owned by the State or a county or a municipal government; That are owned by a local education agency; or That are owned by a paid or volunteer fire company or rescue squad.

On or before September 1, 1991 and until July 1, 1996, a fee shall be paid annually to the Department for each underground storage tank in the State unless the tank is used exclusively for the production, distribution, or sale of petroleum by the owner of the tank. The tank fee imposed under this section may not exceed: $100 for each tank having a maximum capacity of under 1,100 gallons; and $200 for each tank having a maximum capacity of 1,100 gallons or more. The tank fee imposed under this section may be waived or reduced provided that: The owner of the tank has not been billed for the fee for 2 consecutive years; and By October 1, 1996, the owner of the tank upgrades, replaces, or removes the tank to meet the technical requirements of the underground storage tank regulation adopted under Subtitle 4 of this title.

The Board of Public Works, upon the recommendation of the Secretary, may award a loan to an owner of an underground storage tank to cover the following costs: Tank upgrade or replacement costs necessary to meet the technical requirements of regulations adopted by the Environmental Protection Agency for underground storage tanks; Costs of site assessment after the upgrade or replacement is completed to determine eligibility for insurance, not to exceed $3,000; and Costs of any additional apparatus necessary to bring the underground storage tank system into compliance with other State and federal requirements.

The Department shall adopt regulations to carry out the provisions of this subtitle. The regulations adopted under this subtitle shall establish application procedures and criteria for the award of a loan under this subtitle. The criteria shall provide a basis for the priority ranking of projects, and shall include: The financial capacity and fiscal accountability of the applicant; The location of the underground storage tank and the degree to which removal of the tank would impose a geographical hardship on the surrounding community or industries dependent on availability of the petroleum; The extent to which the existence of the tank is required for an essential public service; Previous efforts expended to correct any existing environmental problem and to maintain compliance with State and federal regulations; Measures to assure accountability for all funds awarded under this subtitle; and Any other criteria that the Secretary considers appropriate. The regulations adopted under this subtitle shall require the recipient of a loan under this subtitle to provide the Department with documentation that the proceeds of the loan were applied in accordance with § 4-603 of this subtitle and the loan agreement.

A loan agreement under this subtitle shall contain those conditions that the Secretary requires by regulation to achieve the purposes of this subtitle and to protect the interests of the State. A loan agreement under this subtitle shall contain provisions that authorize the Secretary to recall the loan and require that any amount of financial assistance provided under this subtitle be returned to the State under terms established by the Secretary, if the Secretary determines that: The recipient of a loan under this subtitle fails to remain in compliance with any law or regulation governing the installation, operation, or use of underground storage tanks; or The proceeds of a loan provided under this subtitle have been used for a purpose other than one authorized under this subtitle. Any funds returned to the State under this subsection shall be credited to the Underground Storage Tank Upgrade and Replacement Fund. A loan extended under this subtitle: May not exceed $50,000 for any one upgrade; Shall bear at least the same rate of interest as the most recent State general obligation bond sale preceding the date of approval by the Board of Public Works; and Shall be repaid in full in a term not to exceed 15 years in accordance with the provisions of the loan agreement. The aggregate amount of all loans awarded under this subtitle to a single applicant in any calendar year may not exceed $150,000, unless the Secretary determines that extraordinary circumstances exist. The proceeds of a loan awarded under this subtitle may be applied to the costs of developing plans and specifications, equipment, construction, and site assessment related to the upgrade and replacement of underground storage tanks.

To be eligible for a loan under this subtitle, an applicant shall: Be in substantial compliance with all State and federal laws and regulations governing the installation, operation, and use of underground storage tanks; and Submit a completed loan processing form to the Department on or before June 30, 1998. A loan under this subtitle may not be provided to upgrade or replace any underground storage tank that was not registered with the Department as provided in § 4-411.1 of this title on or before July 1, 1991, unless the Secretary determines that special circumstances exist.

No fee may be imposed after June 30, 1996 and no loan may be made under the provisions of or for the purposes of this subtitle, or in accordance with regulations adopted under this subtitle, after December 31, 1998. In fiscal year 1997, the Secretary shall transfer $3 million from the Underground Storage Tank Upgrade and Replacement Fund to the Oil Contaminated Site Environmental Cleanup Fund established under Subtitle 7 of this title. Except as provided in paragraph (3) of this subsection, in fiscal year 1998, the Secretary shall transfer $3 million from the Underground Storage Tank Upgrade and Replacement Fund to the Oil Contaminated Site Environmental Cleanup Fund established under Subtitle 7 of this title. If a number of tank owners submit loan processing forms and moneys are not sufficiently available for making the unanticipated loans, the Secretary may only retain an amount of money, up to $3 million, in the Underground Storage Tank Upgrade and Replacement Fund in fiscal year 1998 to cover the liability of the unanticipated loans. The Secretary may only transfer moneys from the Underground Storage Tank Upgrade and Replacement Fund, first, and then from the Oil Contaminated Site Environmental Cleanup Fund to the Maryland Oil Disaster Containment, Clean-Up and Contingency Fund established under Subtitle 4 of this title. The Secretary may only transfer the money, as provided for in paragraph (1) of this subsection, if: Money in the Maryland Oil Disaster Containment, Clean-Up and Contingency Fund, reserved for the circumstances set forth in subsection (d)(3) of this section, falls below $250,000 because of oil spill incidents, provided that the reserve balance of the Fund may not exceed $1 million after the transfer; or There is a major oil spill and sufficient funds are not available in the Maryland Oil Disaster Containment, Clean-Up and Contingency Fund. The money transferred to the Maryland Oil Disaster Containment, Clean-Up and Contingency Fund, as provided for in paragraph (2)(ii) of this subsection, may not exceed the Department’s direct costs to remediate the major oil spill. If moneys transferred under paragraph (2) of this subsection are recovered, the Department shall return the recovered moneys to the funds in the following order: To the Maryland Oil Disaster Containment, Clean-Up and Contingency Fund as needed to maintain a reserve balance not to exceed $1 million; To the Oil Contaminated Site Environmental Cleanup Fund, in an amount not to exceed the amount transferred to the Maryland Oil Disaster Containment, Clean-Up and Contingency Fund under paragraph (2) of this subsection; and To the Underground Storage Tank Upgrade and Replacement Fund, any remaining recovered moneys. On or after January 1, 1999 but no later than June 30, 1999, any funds remaining in the Underground Storage Tank Upgrade and Replacement Fund shall be credited in the following manner: 50% to the Maryland Oil Disaster Containment, Clean-Up and Contingency Fund; and 50% to the Oil Contaminated Site Environmental Cleanup Fund. Any future loan repayments made on or after January 1, 1999 shall be credited to the Maryland Oil Disaster Containment, Clean-Up and Contingency Fund. The funds identified in paragraphs (1)(i) and (2) of this subsection shall only be used by the Department for cases in which a responsible party cannot be located or the responsible party does not have sufficient assets to take adequate remedial action or refuses to take remedial action for: The clean-up and removal of an underground storage tank; or The clean-up of a petroleum release.