What’s New In Petroleum Fund?

Proposed Regulation Amendments to Nevada Administrative Code 445C: Petroleum Fund Program

Assembly Bill No. 40 (see below) was passed into law June 3, 2021, requiring the Board to Review Claims to adopt regulations to define small business as it pertains to coverage of petroleum discharges from storage tank systems. NDEP is also proposing this definition be used to determine financial need of an operator when applying for a grant from the Petroleum Fund to defray storage tank system upgrade costs. Additionally, the following amendments are being proposed:

  • Clarifying storage tank testing and record keeping requirements;
  • Establishing deadlines for submittals of applications for coverage and claims for reimbursement;
  • Revisions to requirements demonstrating proof of payment to contractors and vendors following reimbursement of a claim;
  • Clarification of grant allocations to operators that have demonstrated a financial need to defray costs to upgrade storage tanks; and
  • Updating general citations and dates. 

Regulatory Timeline

 

Nevada Revised Statutes (NRS) 445C Amendments

Assembly Bill No. 40, passed into law and signed by the Governor on June 3, 2021, amends the Petroleum Fund Statutes (NRS 445C). The amendments include the following:

  • Removes the definition of a “small business” from statute and requires the Board to Review Claims to define a “small business” in regulation.
  • Updates the “operator”, “storage tank”, and “site” definitions
  • Sets a limit on Board to Review Claims member nominees – up to three nominees
  • Clarifies the requirement for storage tank operators to demonstrate their storage tank systems are not leaking at the time of enrollment and prior to coverage by the Fund. Demonstration of system tightness must be provided for the 6-months prior to registration.
  • Reduces the small business co-payment from 10% to 5% and makes a correction to the annual aggregate amount the Fund will pay for a storage tank operated by a small business - $1,950,000
  • Allows the Board to Review claims to issue additional $1 million dollar allotments to operators for site cleanup if initial coverage funding has been exhausted, and the NDEP requires additional cleanup of the site. The operator must demonstrate to the Board to Review Claims they are in compliance with various NDEP requirements prior to Board approval of additional allotments and will be subject to co-payments.

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