In this subtitle the following words have the meanings indicated. “Cleanup” means abatement, containment, removal, and disposal of oil and the restoration of the environment. “Fund” means the Oil Contaminated Site Environmental Cleanup Fund. “Oil” has the meaning provided in § 4–401(h) of this title. “Site rehabilitation” means cleanup actions taken in response to a release from an underground oil storage tank. “Site rehabilitation” includes investigation, evaluation, planning, design, engineering, construction, or other services undertaken and expenses incurred to investigate or clean up affected soils, groundwater, or surface water. “Third party claim” means any civil action brought or asserted by any person against any owner or operator of any underground oil storage tank for damages to person or property which damages are the direct result of oil released from tanks covered under this subtitle. “Underground oil storage tank” has the meaning provided in § 4–401(l) of this title.

The General Assembly finds and declares that: The storage of oil in underground oil storage tanks is a major cause of groundwater contamination in this State; Groundwater resources are vital to the population and economy of this State; and The preservation of the State’s groundwater resources is in the public interest. The General Assembly further finds that where contamination of groundwater has occurred due to leaking underground oil storage tanks, remedial measures have often been delayed for long periods due to high costs of such remedial measures. These delays result in the continuation and intensification of the threat to the public health, safety, and welfare, in greater damages to the environment, and in significantly higher costs to clean up the contamination and rehabilitate the site. The General Assembly intends this subtitle to provide adequate financial resources and incentives for the expeditious cleanup and rehabilitation of contaminated sites without delay.

This subtitle may not be construed as altering the rights, responsibilities, or liabilities of a party responsible for the discharge of oil. This subtitle is not intended to provide evidence of financial responsibility for owners and operators of underground oil storage tanks under Subtitle I of the Resource Conservation and Recovery Act, the Superfund Amendments and Reauthorization Act of 1986, or any other federal law.

There is an Oil Contaminated Site Environmental Cleanup Fund. Subject to subsection (c) of this section, the Fund shall be used to: Reimburse an owner or operator of: An underground oil storage tank subject to the requirements of § 4–409(b)(3) of this title for site rehabilitation costs incurred on or after October 1, 1993 resulting from contamination caused by releases from an underground oil storage tank; An underground oil storage tank not subject to the requirements of § 4–409(b)(3) of this title for site rehabilitation costs incurred on or after October 1, 2000 resulting from contamination caused by releases from an underground oil storage tank; or A heating oil tank for site rehabilitation costs incurred on or after October 1, 2000 resulting from contamination caused by releases from a heating oil tank including piping connected to the tank; Provide funds for site rehabilitation activities carried out by the Department or under the Department’s direction and control; and To the extent provided in the State budget and in an amount not to exceed 8% of the revenues in the Fund during the fiscal year, provide funds for the Department’s administration of this subtitle. Twenty–five percent of the revenues credited to the Fund shall be used for reimbursement of heating oil tank site rehabilitation costs as provided in this subtitle. The provisions of this subtitle do not apply to: An underground storage tank that is: Owned by a State, county, or municipal corporation; or Owned by a local education agency. An underground storage tank installed pursuant to Subtitle I of the federal Resource Conservation and Recovery Act; or Owners or operators of underground storage tanks that were not in compliance with the requirements of Subtitle I of the federal Resource Conservation and Recovery Act on December 22, 1998. Money in the Fund not required to meet the Department’s obligations in the exercise of the Department’s responsibility under this section: Shall be deposited with the State Treasurer to the credit of the Fund; and May be invested as provided by law. Interest received on the investment of the excess funds shall be credited to the Fund for use for the purposes described in this subtitle.

The owner or operator of an underground oil storage tank eligible under § 4–704(b)(1)(ii) of this subtitle may apply to the Fund for reimbursement, until December 31, 2007, for usual, customary, and reasonable costs incurred on or after October 1, 2000 in performing site rehabilitation. Until June 30, 2021, the owner of a heating oil tank eligible under § 4–704(b)(1)(iii) of this subtitle may apply to the Fund for reimbursement no later than 6 months after the completion of rehabilitation for usual, customary, and reasonable costs incurred on or after October 1, 2000 in performing site rehabilitation. Until June 30, 2024, the residential owner of a heating oil tank eligible under § 4–704(b)(1)(iii) of this subtitle may apply to the Fund for reimbursement not later than 6 months after the completion of rehabilitation for usual, customary, and reasonable costs incurred on or after October 1, 2000, in performing the site rehabilitation. Any reimbursement from the Fund for applications approved on or after July 1, 1996 is subject to: For owners or operators of six tanks or fewer, a deductible of $7,500; For owners or operators of more than 6 but not more than 15 tanks, a deductible of $10,000; For owners or operators of more than 15 but not more than 30 tanks, a deductible of $15,000; For owners or operators of more than 30 tanks, a deductible of $20,000; and For residential owners of heating oil tanks, a deductible of $500; and The maximum amount to be reimbursed from the Fund shall be: $125,000 for underground oil storage tanks per occurrence; and $20,000 for heating oil tanks per occurrence. To be eligible for reimbursement from the Fund, an owner or operator shall: Certify that the discharge is not the result of a willful or deliberate act; Submit a corrective action plan, schedule, and cost estimate to the Department that shall include provisions for the environmentally sound treatment or disposal of contaminated soils that meet all federal and State requirements and standards; and Except for heating oil tanks, certify that the discharge is from a tank registered under § 4–411.1 of this title. If the owner or operator knowingly submits a false certification under subsection (d) of this section, that owner or operator is not eligible for reimbursement under this subtitle. Only expenses that are cost–effective, reasonable, and consistent with a corrective action plan approved by the Department may be eligible for reimbursement from the Fund. The cost for replacement or retrofitting of underground oil storage tanks or heating oil tanks and associated piping is not eligible for reimbursement, and the Department may not incur these costs or expend moneys from the Fund for these purposes.

If the Department has assumed control of an oil spill situation involving an underground oil storage tank or heating oil tank under this title, the Department may obtain from the Fund, for site rehabilitations that meet the same cleanup priority as those site rehabilitations reimbursed under § 4-705 of this subtitle: Reimbursement for usual, customary, and reasonable costs incurred in performing site rehabilitation; A guarantee of payment to a qualified contractor for the usual, customary, and reasonable costs of performing site rehabilitation; or Matching funds required under § 9003(h) of the Federal Solid Waste Disposal Act for the Federal Leaking Underground Storage Tank Program. The per occurrence deductible or limitation provided under § 4-705(c) of this subtitle does not apply to the reimbursement or guarantee to a contractor under this section. In order to encourage that site rehabilitation activities be undertaken by an owner, operator, or other person responsible for a discharge from an underground oil storage tank or heating oil tank, any site rehabilitation costs including attorney’s fees and litigation costs incurred by the Department or the Fund under this section shall be recoverable from the responsible party to the Fund. Recoveries collected under subsection (c) of this section shall be paid into the Fund.

A payment may not be made from the Fund for a third party claim. A payment may not be made as reimbursement for costs incurred or under a guarantee to a contractor unless the balance in the Fund is sufficient to cover the payment requested and any other imminent obligations or expenses of the Fund. Requests for payment from the Fund that are denied under subsection (b) of this section shall be paid only as additional funds become available and may not be paid from any other fund of the State.

The Department shall adopt regulations to implement the requirements of this subtitle no later than September 30, 1993 in order to begin making disbursements from the Fund no later than January 1, 1994.