HOUSE CONCURRENT RESOLUTION No. 89

(By Delegate Michael)

(Originating in the Committee on Rules)

[March 11, 2004]


Requesting the Joint Committee on Government and Finance conduct a study to identify appropriate sources of revenue to pay for future costs of cleanup as those costs are incurred at the fifty-eight sites currently insured by the Underground Storage Tank Insurance Fund.

Whereas, The Legislature created the Underground Storage Tank Insurance Fund ("Fund") in 1988 to provide affordable insurance to owners and operators of underground storage tanks to assist them in complying with federal financial assurance requirements related to the accidental release of petroleum into the environment; and
Whereas , The Fund operated until October 2000 and paid out approximately $17 million to owners and operators for the environmental remediation of sites at which underground storage tanks are located; and
Whereas , The Fund presently has insufficient assets to pay all of the claims that have been made by the fifty-eight remaining insured facilities where environmental remediation is incomplete; and
Whereas , The Kanawha County Circuit Court has recently issued an order establishing an equitable plan to distribute all of the Fund's remaining assets to these fifty-eight insured facilities; and
Whereas , Even after that distribution, the facilities are expected to incur costs in the future of up to $14 million to complete the cleanup of these sites; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is hereby requested to conduct a study to identify appropriate sources of revenue to pay for future costs of cleanup as those costs are incurred at the fifty-eight sites currently insured by the Fund after those costs have been reviewed and adjusted in accordance with the customary practice of the Department of Environmental Protection and the Underground Storage Tank Advisory Committee; and, be it
Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2005, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it
Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.