Plain Text Law

Chapter 14. Residential Heating Oil Tank System Site Rehabilitation Reimbursement Program

Regulation .01 Scope.Copy Citation

A.
This chapter provides the mechanisms for reimbursing a residential owner of a residential heating oil tank system for certain site rehabilitation costs, as authorized under Environment Article, §4-704(b)(1)(iii), Annotated Code of Maryland.
B.
This chapter may not be construed:
(1)
As altering the rights, responsibilities, or liabilities of a person responsible for the discharge; or
(2)
As entitling a residential owner to reimbursement of site rehabilitation costs.

Regulation .02 Exclusions.Copy Citation

This chapter does not provide reimbursements for:
A.
Site rehabilitation costs for residential heating oil tank systems incurred before October 1, 2000;
B.
Site rehabilitation costs that result from a spill, release, or discharge of oil originating from a source other than a residential heating oil tank system;
C.
Costs resulting from:
(1)
Residential heating oil tank system closures in place, upgrades, or replacements; or
(2)
Retrofitting of a residential heating oil tank or associated piping;
D.
Except as otherwise provided in Regulation .05 of this chapter, costs resulting from a residential heating oil tank system removal;
E.
A third-party claim; or
F.
Site rehabilitation costs that have been paid or are payable under an insurance policy.

Regulation .03 Definitions.Copy Citation

A.
In this chapter:
(1)
The terms in §B of this regulation have the meanings indicated; and
(2)
A term not defined in §B of this regulation has the meaning given to it in the relevant statutes and in COMAR 26.10.01.02 or, if not defined there, the meaning in the ordinary dictionary definition of the term.
B.
Terms Defined.
(1)
“Approved application” means an application that has been submitted by a qualified residential owner in accordance with Regulation .06 of this chapter and has been approved by the Department for a reimbursement allocation.
(2)
“Department” means the Maryland Department of the Environment.
(3)
“Fund” means the Oil Contaminated Site Environmental Cleanup Fund.
(4)
“Occurrence” means the existence of contamination resulting from a spill, release, or discharge of oil from one or more residential heating oil tank systems at a site.
(5)
“Oil” has the meaning stated in COMAR 26.10.01.02B.
(6)
“Reimbursement allocation” means an amount of money from the Fund set aside for an approved application to reimburse a residential owner for site rehabilitation costs incurred, or to be incurred, during the remediation of the site approved on the application as allowed under this chapter.
(7)
“Residential heating oil tank” means an aboveground or underground heating oil tank that meets the criteria under Environment Article, §4-401(e), Annotated Code of Maryland that is used to store heating oil for use as a fuel in heating a single-family residential property.
(8)
“Residential heating oil tank system” means a residential heating oil tank and all associated piping, including, but not limited to, fill, vent, dispensing, and return line pipes.
(9)
“SDAT” means the State Department of Assessments and Taxation.
(10)
“Site” means a single-family residential property where a person owns one or more residential heating oil tank systems that is the source of a spill, release, or discharge of oil, including any soil, groundwater, or surface water at the single-family residential property or a neighboring property affected by the spill, release, or discharge of oil.
(11)
Site Rehabilitation.
(a)
“Site rehabilitation” means cleanup actions taken in response to a spill, release, or discharge of oil from a residential heating oil tank system.
(b)
“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.
(12)
“Supervisor” has the meaning stated in Tax-Property Article, §1-101(mm), Annotated Code of Maryland.
(13)
“Value” has the meaning stated in Tax-Property Article, §1-101(qq), Annotated Code of Maryland, as determined by the most recent SDAT assessment in accordance with Tax-Property Article, §§8-101—8-104, Annotated Code of Maryland.

Regulation .04 Reimbursement Process.Copy Citation

A.
A residential owner of a residential heating oil tank system seeking reimbursement from the Fund shall apply to the Department in accordance with the application requirements in Regulation .06 of this chapter.
B.
The Department may reimburse a residential owner with an approved application to the extent there are available revenues in the Fund and in accordance with the reimbursement limitations and deducible requirement in Regulation .08 of this chapter.
C.
The Secretary of the Environment or a designee shall:
(1)
Make all final decisions regarding reimbursement matters; and
(2)
Adjust reimbursement allocations if substantial need is demonstrated.

Regulation .05 Site Rehabilitation Costs.Copy Citation

A.
Eligible Site Rehabilitation Costs. The Department may reimburse a residential owner of a residential heating oil tank system for eligible site rehabilitation costs incurred in performing the following activities if the Department determines they are cost effective, reasonable, and consistent with an application received on or after July 1, 2005:
(1)
Soil treatment, including:
(a)
Excavation, transportation, and proper disposal of oil-contaminated soil; or
(b)
On-site treatment, such as soil vapor extraction;
(2)
Procurement and installation of groundwater remediation equipment, including soil vapor extraction equipment;
(3)
Subsurface investigation, well bailing, recovery system design, operation, monitoring, or a combination of these activities;
(4)
Private supply well replacement;
(5)
Odor abatement activities, such as forced venting and oil saturated material removal and proper disposal, replacement, or restoration to a degree as determined by the Department to return a residence to a habitable condition;
(6)
Closure of a heating oil tank by removal, if the Department determines removal of the heating oil tank is necessary to accomplish soil treatment as described in §A(1)(a) of this regulation; and
(7)
Other site rehabilitation activities performed by a residential owner under the direction and approval of the Department to remediate a spill, release, or discharge of oil from a residential heating oil tank system.
B.
Ineligible Costs. The Department may not reimburse a residential owner of a residential heating oil tank system for costs incurred in performing the following activities:
(1)
Closure in place of an underground residential heating oil tank;
(2)
Installation of a new or replacement residential heating oil tank;
(3)
Third-party contractor mobilization or demobilization of equipment, materials, and personnel at a site;
(4)
Preparation of a complete application, including preparing or obtaining support documentation; and
(5)
Performance of activities that are not related to remediation of oil-contaminated soil, groundwater, or surface water at a site so as to mitigate threats to public health, safety, and welfare or the environment, as determined by the Department.

Regulation .06 Application Requirements.Copy Citation

A.
A residential owner of a residential heating oil tank system may apply to the Department for reimbursement from the Fund:
(1)
Until the date established by Environment Article, §4-705(b), Annotated Code of Maryland;
(2)
Not later than 6 months after the completion of site rehabilitation;
(3)
Only for eligible site rehabilitation costs listed in Regulation .05 of this chapter that were incurred on or after October 1, 2000;
(4)
Once for the entire period of ownership of the single-family residential property where the residential heating oil tank system is located; and
(5)
Once per State fiscal year if the residential heating oil tank system is not located at the primary residence of the residential owner.
B.
A residential owner applying for reimbursement from the Fund shall submit to the Department:
(1)
A complete and accurate application on a form supplied by the Department;
(2)
A current W-9 Identification Number and Certification Form from the federal Department of the Treasury, Internal Revenue Service;
(3)
On a form supplied by the Department, a description of the incurred site rehabilitation costs eligible for reimbursement under Regulation .05 of this chapter, including copies of actual invoices and other proofs of payment for site rehabilitation costs; and
(4)
If submitting an application on or after July 1, 2022, a copy of:
(a)
The online SDAT property database’s search results page for the site; or
(b)
The most recent property tax assessment notice mailed to the residential owner of the site by the Supervisor in accordance with Tax-Property Article, §8-401, Annotated Code of Maryland.
C.
A residential owner may submit to the Department additional eligible site rehabilitation costs with the supporting documentation required under §B(3) of this regulation:
(1)
Following the approval of the application by the Department; and
(2)
Not later than 6 months after the completion of site rehabilitation.
D.
To be eligible for reimbursement from the Fund, a residential owner shall:
(1)
Certify to the Department that the spill, release, or discharge of oil resulted from a residential heating oil tank system;
(2)
Submit to the Department for its approval:
(a)
A corrective action plan;
(b)
An implementation schedule;
(c)
A cost estimate; and
(d)
An estimated completion date;
(3)
Certify to the Department that the spill, release, or discharge of oil is not the result of a willful or deliberate act;
(4)
As determined by the Department, be in substantial compliance with the applicable requirements under Environment Article, §4-420, Annotated Code of Maryland, COMAR 26.10, and all Maryland laws and regulations applicable to residential heating oil tank systems; and
(5)
Certify to the Department that the site rehabilitation costs submitted for reimbursement are:
(a)
True and eligible for reimbursement under Regulation .05 of this chapter;
(b)
Necessary to complete site rehabilitation; and
(c)
Not excluded under Regulation .02 of this chapter.
E.
The filing of an application for reimbursement does not relieve the residential owner or any other person from the requirement to take prompt site rehabilitation action as required by law or regulation.
F.
If an applicant knowingly submits a false certification of satisfying the eligibility requirements under §D of this regulation, the residential owner is not eligible for reimbursement.

Regulation .07 Application Approval.Copy Citation

A.
Application Numerical Ranking.
(1)
The Department shall assign each application a numerical rank based on the date the complete application was received by the Department, so that the earliest complete application receives the highest rank.
(2)
Subject to the availability of revenues within the Fund, the Department shall approve reimbursement allocations for approved applications in order of their numerical ranking.
B.
A residential owner may submit to the Department, and the Department shall approve not more than one application per State fiscal year for separate single-family residential properties owned by the same person or persons.
C.
If the Department determines that an application is ineligible under this chapter:
(1)
The Department shall provide written notification to the residential owner that the application was denied; and
(2)
The residential owner may submit an application for another site for consideration within that State fiscal year.

Regulation .08 Reimbursement Limits and Deductibles.Copy Citation

A.
A reimbursement of eligible site rehabilitation costs paid from the Fund for an approved application received by the Department on or after July 1, 2005:
(1)
May not exceed a total of $20,000 per occurrence; and
(2)
Is subject to a deductible of $500 per occurrence.
B.
If an approved application was received by the Department on or after July 1, 2022, a reimbursement allocation is limited as follows:
(1)
If the value of the residential property is less than or equal to $300,000, the reimbursement allocation is:
(a)
100 percent of the eligible site rehabilitation costs; and
(b)
Up to a total of $20,000, less the $500 deducible;
(2)
If the value of the residential property is greater than $300,000 and less than or equal to $600,000, the reimbursement allocation is:
(a)
50 percent of the eligible site rehabilitation costs; and
(b)
Up to a total of $10,000, less the $500 deductible; or
(3)
If the value of the residential property is greater than $600,000, the reimbursement allocation is:
(a)
25 percent of eligible site rehabilitation costs; and
(b)
Up to a total of $5,000, less the $500 deductible.

Regulation .09 Reimbursement Allocations and Payments.Copy Citation

A.
Reimbursement Allocation.
(1)
The Department shall make a reimbursement allocation in accordance with:
(a)
A complete application received and approved by the Department;
(b)
The numerical ranking assigned to an approved application in accordance with Regulation .07A of this chapter;
(c)
The reimbursement limit and deductible requirements established in Regulation .08 of this chapter; and
(d)
The availability of revenues within the Fund.
(2)
Upon the approval of a complete application, the Department shall reserve a reimbursement allocation within the Fund in accordance with §A of this regulation to pay for a reimbursement of site rehabilitation costs that are otherwise eligible under this chapter.
B.
Payment of an Approved Reimbursement.
(1)
Subject to §B(2) and (3) of this regulation, the Department may issue a reimbursement payment to a residential owner for eligible site rehabilitation costs from allocated funds.
(2)
In order to issue a reimbursement payment from allocated funds, the Department may request that a residential owner provide a recent W-9 Identification Number and Certification Form from the federal Department of the Treasury, Internal Revenue Service.
(3)
The Department reserves the right to deny a reimbursement payment in whole or in part if the Department determines that:
(a)
A residential owner is disregarding or has disregarded the oil pollution control and abatement requirements under Environment Article, §4-401 et seq., Annotated Code of Maryland;
(b)
The reimbursement has been or is being used, or site rehabilitation work has been or is being conducted, in a manner inconsistent with the goals of the site rehabilitation;
(c)
The residential owner is not proceeding with the site rehabilitation or has abandoned the site;
(d)
The residential owner is not in compliance with all Maryland laws and regulations applicable to oil and residential heating oil tank systems;
(e)
The residential owner has not submitted any eligible site rehabilitation costs and supporting documentation of those costs within 6 months of completing the site rehabilitation, unless extended in writing by the Department; or
(f)
Any other good cause exists for denying a reimbursement payment, as determined by the Department.
C.
Any reimbursement allocation left unpaid will be released for other Fund uses.

Regulation .10 Auditing.Copy Citation

A.
Upon request of the Department, a residential owner who applied for reimbursement from the Fund shall submit records that document all costs incurred and monies reimbursed to date for a site rehabilitation within:
(1)
6 months of completing the site rehabilitation; or
(2)
3 years of receiving the final payment from the reimbursement allocation.
B.
The Department reserves the right to audit all costs, expenses, or files associated with the Fund.
C.
A residential owner shall maintain all records associated with a site rehabilitation for at least 3 years after the later of:
(1)
Receiving the final payment from the reimbursement allocation; or
(2)
Completion of the site rehabilitation.
D.
If an audit reveals any amount of money was improperly paid from the Fund to a residential owner, the residential owner shall return that amount to the Department within 30 days of notification by the Department of the improper payment from the Fund.
E.
A residential owner is liable for any expenses incurred by the Department in collecting money owed under §D of this regulation.
Chapter annotations
Authority: Environment Article, §§4-401, 4-402, 4-405, 4-407—4-411.2, 4-415, 4-415.1, and 4-701 et seq., Annotated Code of Maryland
History: Effective date:
History: Regulations .01—.11 adopted as an emergency provision effective November 18, 1993 (20:25 Md. R. 1937); adopted permanently effective May 19, 1994 (21:9 Md. R. 753)
History: Chapter revised effective February 24, 1997 (24:4 Md. R. 295)
History: Chapter revised effective July 23, 2001 (28:14 Md. R. 1324)
History: Regulation .02D amended effective January 12, 2009 (36:1 Md. R. 25)
History: Regulation .03B amended effective April 19, 2010 (37:8 Md. R. 621)
History: Regulation .04C amended effective January 16, 2006 (33:1 Md. R. 40)
History: Regulation .05E amended effective January 16, 2006 (33:1 Md. R. 40)
History: Regulation .05F adopted effective January 16, 2006 (33:1 Md. R. 40)
History: Regulation .05F amended effective January 12, 2009 (36:1 Md. R. 25)
History: Regulation .06 amended effective January 16, 2006 (33:1 Md. R. 40)
History: Regulation .07 amended effective January 16, 2006 (33:1 Md. R. 40)
History: Regulation .09C amended effective January 16, 2006 (33:1 Md. R. 40)
History: Regulation .10A amended effective January 16, 2006 (33:1 Md. R. 40)
History: Regulations .01—.11 repealed and new Regulations .01—.10 adopted effective June 13, 2022 (49:12 Md. R. 642)