{"data":{"id":"us-ky/krs-224.60-130","jurisdiction":"us-ky","citation":"KRS 224.60-130","heading":"Petroleum storage tank environmental assurance fund -- Duties of","body":"Division of Waste Management -- Deadline for reimbursement of corrective\naction projects.\n(1) The Energy and Environment Cabinet, Department for Environmental Protection,\nDivision of Waste Management, shall:\n(a) Establish by administrative regulation the policy, guidelines, and procedures\nto administer the financial responsibility and petroleum storage tank accounts\nof the petroleum storage tank environmental assurance fund.  In adopting\nadministrative regulations to carry out this section, the division may\ndistinguish between types, classes, and ages of petroleum storage tanks. The\ndivision may establish a range of amounts to be paid from the fund, or may\nbase payments on met hods such as pay for performance, task order, or firm\nfixed pricing, which are designed to provide incentives for contractors to more\ntightly control corrective action costs, and shall establish criteria to be met by\npersons who contract to perform correct ive action to be eligible for\nreimbursement from the fund. The criteria may include the certification of\nindividuals, partnerships, and companies. Criteria shall be established to\ncertify laboratories that contract to perform analytical testing related to the\nunderground storage tank program. Owners and operators shall have all\nrequired analytical testing performed by a certified laboratory to be eligible\nfor fund participation. Persons who contract with petroleum storage tank\nowners or operators shall not be paid more than the amount authorized by the\ndivision for reimbursement from the fund for the performance of corrective\naction. At a minimum, the division shall promulgate administrative\nregulations in accordance with KRS Chapter 13A that will ensure an\nunobligated balance in the fund adequate to meet financial assurance\nrequirements and corrective action requirements of KRS 224.60 -135(2) and\n(4). If the unobligated balance in the fund is not adequate to meet the\nrequirements of this paragraph, the divisi on shall obligate funds necessary to\nmeet these requirements;\n(b) Establish by administrative regulation the criteria to be met to be eligible to\nparticipate in the financial responsibility and petroleum storage tank accounts\nand to receive reimbursement from these accounts. The division may establish\neligibility criteria for the petroleum storage tank account based upon the\nfinancial ability of the petroleum storage tank owner or operator. Owners or\noperators seeking coverage under the petroleum storage tank account shall file\nfor eligibility and for financial assistance with the division. To ensure cost\neffectiveness, the division shall promulgate administrative regulations in\naccordance with KRS Chapter 13A specifying the circumstances under which\nprior approval of corrective action costs shall be required for those costs to be\neligible for reimbursement from the fund. In promulgating administrative\nregulations to carry out this section, the division may distinguish between\ntypes, classes, and ages of petr oleum storage tanks and the degree of\ncompliance of the facility with any administrative regulations of the cabinet\npromulgated pursuant to KRS 224.60-105 or applicable federal regulations;\n(c) Establish a financial responsibility account within the fund w hich may be\nused by petroleum storage tank owners and operators to demonstrate financial\nresponsibility as required by administrative regulations of the cabinet or the\nfederal regulations applicable to petroleum storage tanks, consistent with the\nintent of  the General Assembly as set forth in KRS 224.60 -120(5). The\naccount shall receive four -tenths of one cent ($0.004) from the one and four -\ntenths cent ($0.014) paid on each gallon of gasoline and special fuels received\nin this state pursuant to KRS 224.60 -145. To be eligible to use this account to\ndemonstrate compliance with financial responsibility requirements of the\ncabinet or federal regulations, or to receive reimbursement from this account\nfor taking corrective action and for compensating third parties  for bodily\ninjury and property damage, the petroleum storage tank owner or operator\nshall meet the eligibility requirements established by administrative regulation\npromulgated by the division;\n(d) Establish a small operator assistance account within the fund which may be\nused by the division to make or participate in the making of loans, to purchase\nor participate in the purchase of the loans, which purchase may be from\neligible lenders, or to insure loans made by eligible lenders;\n(e) Establish a petrole um storage tank account within the fund to be used to pay\nthe costs of corrective action due to a release from a petroleum storage tank\nnot eligible for reimbursement from the financial responsibility account.\nReimbursements of corrective action projects p erformed under the petroleum\nstorage tank account shall be carried out on or before July 15, 2034. Any\ncorrective action costs incurred after this date shall not be eligible for\nreimbursement under the petroleum storage tank account. The account shall\nreceive one cent ($0.01) from the one and four -tenths cent ($0.014) paid on\neach gallon of gasoline and special fuels received in this state pursuant to\nKRS 224.60-145. This account shall not be used to compensate third parties\nfor bodily injury and property d amage. Within three (3) months after July 15,\n2004, the division shall develop a plan to address the payment of claims and\ncompletion of corrective action at facilities eligible for reimbursement from\nthis account. The division shall establish a ranking sy stem to be used for the\ndistribution of amounts from this account for the purpose of corrective action.\nIn promulgating administrative regulations to carry out this section, the\ndivision shall consider the financial ability of the petroleum storage tank\nowner or operator to perform corrective action and the extent of damage\ncaused by a release into the environment from a petroleum storage tank;\n(f) Hear complaints brought before the division regarding the payment of claims\nfrom the fund in accordance with KRS 224.10-410 to 224.10-470;\n(g) Establish and maintain necessary offices within this state, appoint employees\nand agents as necessary, and prescribe their duties and compensation;\n(h) Employ, in accordance with the procedures found in KRS 45A.690 to\n45A.725 for awarding personal service contracts, a qualified actuary to\nperform actuarial studies, as directed by the division, for determining an\nappropriate reserve in the financial responsibility account and the petroleum\nstorage tank account sufficient to satisfy the obligations in each account for all\neligible facilities and to satisfy future liabilities and expenses necessary to\noperate each account. The division shall, by administrative regulation, set the\nentry level for participation in the fund;\n(i) Authorize expenditures from the fund to carry out the purpose of KRS\n224.60-105 to 224.60 -160, including reasonable costs of administering the\nfund, the procurement of legal services, and the procurement of analytical\ntesting services when necessary to confi rm the accuracy of analytical testing\nresults obtained by a petroleum storage tank owner or operator. The\nexpenditures shall be paid from the appropriate account;\n(j) Establish a small operators' tank removal account within the fund to reimburse\nthe reasonable cost of tank system removal for small owners and operators.\nThe account shall not be used when an owner or operator is removing the tank\nwith the intention of rep lacing or upgrading the tank. In promulgating\nadministrative regulations to carry out this paragraph, the division may\ndistinguish among owners and operators based on income and types and\nclasses of tanks. The division shall not place a limit on the number  of tanks\nthat an owner or operator has in order to be eligible to participate in the\nprogram and receive reimbursement under this paragraph;\n(k) Establish by administrative regulation the policy, guidelines, and procedures\nto perform financial audits of a ny petroleum storage tank owner or operator\nreceiving reimbursement from the fund or any entity contracting or\nsubcontracting to provide corrective action services for facilities eligible for\nfund reimbursement. Financial audits shall be limited to those f iles, records,\ncomputer records, receipts, and other documents related to corrective action\nperformed at a facility where the costs of corrective action have been\nreimbursed by the fund. Files, records, computer records, receipts, and other\ndocuments related to corrective action reimbursed by the fund shall be subject\nto a financial audit for a period of three (3) years after the date of final\nreimbursement from the fund. Results of the audits shall be protected from\ndisclosure as allowed by KRS 61.878(1)(c ). Financial auditing services may\nbe contracted for or personnel may be employed as needed to implement the\nrequirements of this paragraph;\n(l) Be authorized to enter and inspect any facility intending to seek\nreimbursement for the cost of corrective acti on to determine the\nreasonableness and necessity of the cost of corrective action. The division\nmay collect soil or water samples or require storage tank owners or operators\nto split samples with the division for analytical testing. Refusal to allow entry\nand inspection of a facility or refusal to allow the division to collect or split\nsamples shall make the facility ineligible for fund participation;\n(m) Have inspectors on site at all tank system removals. Failure to comply with\nthis provision shall make t he facility ineligible for fund participation. A\npetroleum storage tank owner or operator may request through certified mail\nthat the division schedule an inspector to be present at an upcoming tank\nremoval. If the request is made at least two (2) weeks be fore the time for the\nremoval and an inspector fails to be present at the time scheduled, the tank\nremoval may proceed without making the facility ineligible for fund\nparticipation unless the owner is notified by the division no later than ten (10)\ndays pr ior to the proposed date that an inspector is not available on the\nproposed date, in which event a representative of the division shall contact the\noperator and schedule a new date. If no inspector is present at the rescheduled\ndate, the removal may then proceed without penalty; and\n(n) Establish that the deadline for submission of final reimbursement requests\nunder the petroleum storage tank account is two (2) years after receipt of a no\nfurther action letter.\n(2) The division may advise the cabinet on the  promulgation of administrative\nregulations concerning petroleum storage tanks.\n(3) The division may sue and be sued in its own name.\n(4) The division may transfer funds from the petroleum storage tank account to the\nsmall operator tank removal account as needed to satisfy the obligations, future\nliabilities, and expenses necessary to operate that account. The division may\ntransfer funds to the financial responsibility account as needed to maintain within\nthat account sufficient funds to demonstrate financi al responsibility and to ensure\npayment of claims as provided in subsection (1)(c) of this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55394","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:42Z","sha256":"55daf9fa8b32c1c78a8d577952151000971256c5927b4f73397c5546e4fb0354","source_id":"us-ky","stale":false,"prev":"us-ky/krs-224.60-125","next":"us-ky/krs-224.60-135"},"notice":"GroundRules: Original legal text. Not legal advice."}