{"data":{"id":"us-ky/krs-224.60-140","jurisdiction":"us-ky","citation":"KRS 224.60-140","heading":"Petroleum storage tank environmental assurance fund -- Claims for","body":"reimbursement.\n(1) There is hereby created the petroleum storage tank environmental assurance fund.\nThe fund shall consist of a financial responsibility account and a petroleum storage\ntank account. Each account shall be maintained as a separate and distinct interest -\nbearing account. Interest credited to an account shall be retained in that account. All\nof the following amounts shall be deposited in the fund:\n(a) Four-tenths of o ne cent ($0.004) from the one and four -tenths cent ($0.014)\npaid on each gallon of gasoline and special fuels received in this state\npursuant to KRS 224.60-145 to the financial responsibility account;\n(b) One cent ($0.01) from the one and four -tenths cent ($0.014) paid on each\ngallon of gasoline and special fuels received in this state pursuant to KRS\n224.60-145 to the petroleum storage tank account;\n(c) Money appropriated by the General Assembly for deposit in each account;\n(d) Any money recovered by the f und pursuant to this section shall be deposited\nin the appropriate account; and\n(e) Any money collected in the form of penalties levied pursuant to KRS 224.60 -\n155 shall be deposited to the appropriate account.\n(2) Money in the fund, financial responsibilit y account, and the petroleum storage tank\naccount shall be used by the division for the following purposes:\n(a) To reimburse petroleum storage tank owners or operators for the costs,\nexpenses, and other obligations incurred for corrective action required b y the\ncabinet to be undertaken as the result of a release into the environment from a\npetroleum storage tank. Reimbursement shall be limited to only those costs,\nexpenses, and other obligations incurred to comply with corrective action\nrequirements establi shed in law or administrative regulation by the cabinet.\nAdditional costs related to compliance with a local program operating under\nKRS 224.60-105(4) shall be neither reimbursable by the fund nor imposed on\nthe owner or operator. Reimbursement shall not i nclude the costs related to\nthe removal, or actions incidental to the removal, of a tank system except as\nauthorized under KRS 224.60-130(1)(j);\n(b) For payment of or reimbursement for third -party claims for bodily injury and\nproperty damage, related to a facility eligible for participation in the financial\nresponsibility account, which are asserted against a petroleum storage tank\nowner or operator as a result of a release into the environment from a\npetroleum storage tank;\n(c) To pay the reasonable, prorated costs incurred by the division in administering\neach account; and\n(d) The cost to operate the small operators' assistance account pursuant to KRS\n224.60-130(1)(d), the small operators' tank removal account pursuant to KRS\n224.60-130(1)(j), to perform o r contract for the performance of financial\naudits conducted under KRS 224.60 -130(1)(k), and to employ sufficient\ninspectors to carry out the provisions of KRS 224.60-130 and to set forth their\nduties. These costs shall be prorated to each account.\n(3) The use of the fund shall not exceed one million dollars ($1,000,000) per\noccurrence for corrective action and one million dollars ($1,000,000) per\noccurrence for compensating third parties for bodily injury and property damage.\n(4) Money in the fund may be u sed by the cabinet for costs incurred by the cabinet for\ncorrective action taken pursuant to KRS 224.60-135(2) and (4).\n(5) The fund shall be used to guarantee payment of reasonable costs and expenses to a\ncontractor performing corrective action under cont ract with a petroleum storage\ntank owner or operator subject to entry level amounts payable by the petroleum\nstorage tank owner or operator. Money in the fund shall be obligated to secure the\nguarantee.\n(6) A petroleum storage tank owner or operator may apply to the division for\nreimbursement from the fund of costs to perform corrective action, except that the\npetroleum storage tank owner or operator shall be responsible for and shall not be\nreimbursed for an  amount equal to the entry level into the fund as set pursuant to\nadministrative regulation of the division.\n(7) The division or its designated agent shall issue all decisions made on claims filed\npursuant to this section in writing, with notification to all appropriate parties, within\nninety (90) days after submission of the claim, unless all parties to the claim agree\nin writing to an extension of time. The division shall by phone or facsimile\ntransmission immediately notify the claim applicant and its consultant, if applicable,\nwhen the claim is determined to be deficient. The notification shall provide\nsufficient information to allow the applicant and its consultant, if applicable, to\nbegin to correct the deficiency. The division shall then notify the ap plicant and its\nconsultant, if applicable, by certified mail of the deficiency. The notice shall\nindicate how many days remain in the ninety (90) day review period from the time\nof mailing. The review period shall be tolled pending submittal of information\nresponding to the deficiency, but not to exceed thirty (30) days. When the division\nreceives information that corrects the deficiency, or at the end of the thirty (30) day\nperiod, the division shall complete the review of the claim within the time\nremaining in the ninety (90) day review period. Nothing in this section shall be\nconstrued as preventing the fund from making partial reimbursement as appropriate.\n(8) Except as provided in subsection (9), any costs incurred and payable from the fund\nfor corrective action taken pursuant to KRS 224.60-135(2) shall be recovered by the\ndivision from the petroleum storage tank owner or operator which released the\npetroleum or petroleum products into the environment.\n(9) The liability of a petroleum storage tank owner or operator subject to a cost\nrecovery under this section shall not exceed an amount equal to the entry level into\nthe fund, the division's cost incurred in the cost recovery, and any penalties applied\nin accordance with KRS 224.60 -155. This amount shall i nclude any expenditures\nmade by the petroleum storage tank owner or operator for the release into the\nenvironment from the petroleum storage tank that is the subject of the cost of\nrecovery.\n(10) The amount of costs determined pursuant to subsections (8) a nd (19) of this section\nshall be recoverable in a civil action. This subsection does not deprive a party of any\ndefense the party may have.\n(11) Money recovered by the division pursuant to this section shall be deposited in the\nappropriate account.\n(12) Upon motion and sufficient showing by any party, the court shall join to the action\nany person who may be liable for costs or expenditures recoverable pursuant to this\nsection.\n(13) (a) Any party found liable for any costs or expenditures recoverable under t his\nsection who establishes that only a portion of those costs or expenditures are\nattributable to their actions, shall pay only for that portion.\n(b) If the trier of fact finds the evidence insufficient to establish each party's\nportion of costs or expenditures pursuant to subsection (12) of this section, the\ncourt shall apportion those costs or expenditures, to the extent practicable\naccording to equitable principles among the defendants.\n(c) The appropriate account shall pay any portion of the judgment in excess of the\naggregate amount of costs or expenditures apportioned under paragraphs (a)\nand (b) of this subsection.\n(14) (a) No indemnification, hold harmless, conveyance, or similar agreement shall be\neffective to transfer any liability for costs recov erable under this section. This\nsubsection shall not bar any agreement to insure, hold harmless, or indemnify\na party to the agreement for any costs under KRS 224.60-105 to 224.60-160.\n(b) The entry of judgment against any party to the action shall not bar  any future\naction by the fund against any other person who is later discovered to be\npotentially liable for costs paid from the fund.\n(c) Payment of any claim by the fund pursuant to KRS 224.60 -105 to 224.60-160\nshall be subject to the state acquiring by subrogation the rights of the claimant\nto recover those costs of corrective action for which it has compensated the\nclaimant from the person responsible or liable for the release.\n(15) This section shall not be construed as authorizing recovery for costs o f corrective\naction resulting from any release authorized or permitted pursuant to state or federal\nlaw.\n(16) The cabinet shall attempt, to the maximum extent practicable, to secure or obtain\nfunds that may be available for corrective actions under federal  laws. However,\nnothing in this subsection shall prevent the cabinet from expending any funds\navailable under KRS 224.60-105 to 224.60-160 if such federal funds are determined\nto be unavailable.\n(17) The fund shall not be used for corrective action, reimbu rsement, or third -party\nliability resulting from releases from petroleum storage tanks used exclusively for\nstorage of fuel used in the operation of a commercial ship or vessel oil tanks used\nexclusively for storage of fuel used for the purposes of powering locomotives.\n(18) (a) Any person filing a claim for reimbursement from the division shall, prior to\nfiling the claim for reimbursement, ensure full payment of the claims of all\nvendors and subcontractors who have performed work or supplied materials\nrelated to corrective action at an underground storage tank facility, where\nlabor or materials supplied by a vendor or subcontractor form a basis for at\nleast part of the claim for reimbursement.\n(b) A vendor or subcontractor may waive, in writing, his right t o receive full\npayment before the person files the claim for reimbursement. Any vendor or\nsubcontractor who waives, in writing, his right to full payment shall also\nwaive, in writing, his right to take legal recourse against the division and the\nunderground storage tank facility owner or operator for nonpayment from a\nprime contractor for work performed or materials supplied to the prime\ncontractor during corrective action at an underground storage tank facility.\nAny vendor or subcontractor who waives, in w riting, his right to full payment\nprior to the filing of the claim for reimbursement shall acknowledge in the\nwritten waiver that his, his heirs', successors', and assigns' sole recourse for\nthe nonpayment of work performed or materials supplied to a prime contractor\nduring corrective action at an underground storage tank facility is to proceed\nagainst the prime contractor for whom he performed the work or supplied\nmaterials. Any vendor or subcontractor who waives, in writing, his right to\nfull payment prio r to the filing of the claim for reimbursement shall release\nand discharge any liens filed as a result of work performed or materials\nprovided at the underground storage tank facility. Subcontractor and vendor\nwaivers must be made on standard forms furnish ed by the division. Their\nsignatures must be notarized.\n(c) Unless the provisions of paragraph (b) of this subsection apply, any person\nfiling a claim for reimbursement from the division shall certify, by affidavit,\non standard forms furnished by the divis ion, that all vendors and\nsubcontractors who have performed work or supplied materials related to\ncorrective action at an underground storage tank facility, where labor and\nmaterials supplied by a vendor or subcontractor form a basis for at least part\nof t he claim for reimbursement, have been paid in full as of the date of\nsubmission of the claim for reimbursement. A single affidavit may be made\nfor each claim for reimbursement, provided, however, that the representations\nmade in the affidavit shall be appl ied to each vendor or subcontractor\nindividually, and, where false, shall be treated, as to each vendor or\nsubcontractor, as a separate violation for the purpose of applying any criminal\nstatute.\n(d) Any person with responsibility for administering the division who believes, or\nhas information, that an affidavit submitted pursuant to this subsection\ncontains false or misleading information, or any person with responsibility for\nadministering the division who believes or has information that an application\nfor financial assistance or a claim for reimbursement contains false or\nmisleading information, shall provide that information to the\nCommonwealth's attorney whose jurisdiction includes the county where the\nmajority of the subject underground storage tank f acility is located. That\nperson may additionally provide the information to any other interested\nprosecutor with jurisdiction to prosecute crimes pertaining to an application\nfor financial assistance or the claim for reimbursement.\n(19) Any person who knowingly makes a false statement, representation, or certification\nin an application for reimbursement from the fund, or in any supporting\ndocumentation attached thereto, shall be responsible for and shall not be reimbursed\nfor any amounts incurred based upon  the false statement, representation, or\ncertification. Any costs incurred and paid from the fund which are based on a false\nstatement, representation, or certification in an application for reimbursement from\nthe fund, or in any supporting documentation attached thereto, shall be recovered by\nthe fund administrators from the person who asserted the false statement,\nrepresentation, or certification.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=10514","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:42Z","sha256":"42f303c036d5a293e802c7426aa341a300e2f999973f24bb2b4d4f9069ac7ba6","source_id":"us-ky","stale":false,"prev":"us-ky/krs-224.60-138","next":"us-ky/krs-224.60-142"},"notice":"GroundRules: Original legal text. Not legal advice."}