Subchapter B. FEES AND COLLECTION PROCEDURES
Sec.
977.11. Fund fees.
977.12. Owner and operator fees.
977.13. Tank fee payment procedure.
977.14. Gallon fee payment procedure.
977.15. Gallon fee discount for distributors.
977.16. Posting and collecting security.
977.17. Security for payment of gallon fee.
977.18. Capacity fee payment procedure.
977.19. Certified company fees.
977.20. Certified company fee, certification fee and activity fee payment procedures.
977.21. Penalty for late payment of fees.
977.22. Fee dispute procedure.
977.23. Recordkeeping responsibilities.
977.24. Audit of records.§ 977.11. Fund fees.
The fees in this subchapter are established and assessed by the Board to finance the Fund.
Cross References This section cited in 25 Pa. Code § 977.51 (relating to election requirements).
§ 977.12. Owner and operator fees.
(a) Annual fees. The Board may charge fees established in this section, based on an annual actuarial review.
(b) Tank and gallon fees. A UST owner or operator storing gasoline, new motor oil, hazardous substances, gasohol, aviation fuel, mixture, farm diesel and other types of substances based on the tank registration information maintained by the DEP may be assessed the following fees:
(1) Tank fee. A tank fee of $0 per UST per year.
(2) Gallon fee. A gallon fee on all regulated substances entering a UST of $.011 per gallon. (For example, 10,000 gallons at $.011 per gallon equals $110).
(c) Nonretail bulk storage. Total fees paid by an owner or operator of a nonretail bulk storage or wholesale distribution UST storing gasoline are established using the method described in subsection (b) and are capped at $5,000 per UST per year in accordance with section 705(d)(3) of the act (35 P. S. § 6021.705(d)(3)).
(d) Capacity fee. An owner or operator which stores regulated substances including diesel, heating oil, used motor oil, kerosene and unknown substances based on the tank registration information maintained by the DEP may be assessed a capacity fee of $.0825 per gallon of capacity, which amount is established in accordance with section 705(d)(2) of the act (35 P. S. § 6021.705(d)(2)).(For example, 10,000 gallons at $.0825 per gallon equals $825).
Authority The provisions of this § 977.12 amended under sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. § § 66, 186, 411 and 412); and section 705 of the Storage Tank and Spill Prevention Act (35 P. S. § 6021.705).
Source The provisions of this § 977.12 amended March 22, 2002, effective April 1, 2002, 32 Pa.B. 1515; amended December 20, 2002, effective December 21, 2002, 32 Pa.B. 6258; amended December 26, 2003, effective January 1, 2004, 33 Pa.B. 6420. Immediately preceding text appears at serial pages (294813) to (294814).
Cross References This section cited in 25 Pa. Code § 977.4 (relating to definitions); 25 Pa. Code § 977.13 (relating to tank fee payment procedure); 25 Pa. Code § 977.14 (relating to gallon fee payment procedure; 25 Pa. Code § 977.17 (relating to security for payment of gallon fee); 25 Pa. Code § 977.18 (relating to capacity fee payment procedure).
§ 977.13. Tank fee payment procedure.
(a) The Board may charge a per tank fee to a UST owner or operator.
(b) The tank fee shall be established as set forth in § 977.12 (relating to owner and operator fees).
(c) The UST owner or operator shall pay the tank fee on or before the fee payment due date on the statement.
§ 977.14. Gallon fee payment procedure.
(a) A distributor shall collect any gallon fee directly from a UST owner or operator. If a UST owner or operator pays the fee, but a distributor fails to remit the fee, a UST owner or operator, upon proof of payment, will be eligible for Fund coverage. A distributor who fails or refuses to remit fees shall be subject to sanctions as provided in § 977.16 (relating to posting and collecting security).
(b) On or before the last day of each month, a distributor shall remit to the Fund any collected gallon fees, less the discount described in § 977.15 (relating to gallon fee discount for distributors). A distributor shall submit a completed gallon fee statement to the Fund on a monthly basis to document the amount of product distributed. The gallon fee will be based on the amount of regulated substance delivered into a UST by a distributor in the preceding month.
(c) A distributor shall record the number of gallons delivered on the delivery invoice, the receipt or another form which documents the date and amount of regulated substance delivered. A distributor shall provide a copy of this document to a UST owner or operator at the time of delivery. The number of gallons recorded on each delivery invoice shall be used to calculate the total number of gallons on the gallon fee report form for the preceding month. A distributor shall use the total of gallons recorded to calculate the gallon fee.
(d) A distributor located outside the territorial boundaries of this Commonwealth may collect and remit gallon fees upon proof that a performance bond by a licensed company has been secured and maintained in the amount of $1 million. If a UST owner or operator is using an out-of-State distributor that chooses not to collect the fees, the UST owner or operator shall notify the Fund and shall remit fees to the Fund.
(e) If a UST owner or operator fails or refuses to pay the gallon fee, by the due date, a distributor shall provide the Board in writing with the following information: the name and address of the owner or operator, the street address of the UST location, the point of contact for the distributor, product delivery dates and the amount of gallon fee not paid.
(f) If the Board determines that a distributor is ineligible, in accordance with § 977.16 to collect and remit the gallon fee in accordance with § 977.12 (relating to owner and operator fees), a UST owner or operator shall, after notification of the distributor’s status by the Board, pay the fee directly to the Fund following the procedures in subsections (a)—(e).
(g) A UST owner or operator who pays the gallon fee to the Fund shall pay the fees directly to the Fund and record deliveries in accordance with subsections (a)—(d). A UST owner or operator who does not receive regulated substances from a distributor shall notify the Fund and pay the fee directly to the Fund.
(h) A UST owner or operator with tanks used for nonretail bulk storage or wholesale distribution of gasoline is not required to pay more than $5,000 per tank per year. See section 705(d)(3) of the act (35 P. S. § 6021.705(d)(3)).
§ 977.15. Gallon fee discount for distributors.
(a) The net monthly gallon fee remitted to the Fund by a distributor under § 977.14 (relating to gallon fee payment procedure) shall be the gallon fee less a discount computed as follows: 1% multiplied by the gallon fee collected.
(b) The gallon fee discount will not be allowed when the gallon fee payment is received by the Fund after the due date.
Cross References This section cited in 25 Pa. Code § 977.4 (relating to definitions); 25 Pa. Code § 977.14 (relating to gallon fee payment procedure).
§ 977.16. Posting and collecting security.
(a) Requirement to post security.
(1) A distributor shall remit fees on or before the last day of each month. Fees shall be calculated based on the quantity of the regulated substance distributed by the distributor in the preceding month. A distributor shall be considered delinquent if fees are not received by the Fund within 45 days after the end of the calendar month in which the product was delivered.
(2) A distributor shall post security for a minimum of 12 months following a delinquency.
(3) Following the posting of security, the Fund will have recourse against the security if the distributor fails to timely remit to the Fund, all or part of the gallon fee due to the Fund.
(4) The form of security and the calculation of the amount of security shall be as set forth in § 977.17 (relating to security for payment of gallon fee).
(b) Collecting posted security.
(1) For any delinquent payment, the Fund may make demand for payment upon the distributor’s surety or guarantor for payment of the full amount due the Fund.
(2) The distributor shall post replacement security within 5 days after collection of the posted security. A distributor who fails or refuses to post replacement security is ineligible to collect the fees of the Fund.
Cross References This section cited in 25 Pa. Code § 977.14 (relating to gallon fee payment procedure); and 25 Pa. Code § 977.17 (relating to security for payment of gallon fee).
§ 977.17. Security for payment of gallon fee.
(a) The value of the security posted by a distributor shall be calculated by multiplying the gallon fee as established under § 977.12(a) and (b)(2) (relating to owner and operator fees) by the number of gallons of regulated substance (except heating oil and diesel fuel products) distributed over the 3-month period in the past calendar year in which the distributor distributed the greatest volume of regulated substance.
(b) The Fund will accept only payment bonds issued by surety companies licensed to do business in this Commonwealth.
(c) Negotiable securities of the United States or the Commonwealth may be used in lieu of a surety bond if the face value of the security is not less than the amount of the security required. The securities shall be held by the State Treasurer.
(d) Bank letters of credit submitted as collateral shall be subject to the following conditions:
(1) The letter of credit shall be a standby or guarantee letter of credit issued by a Federally insured or equivalently protected bank or banking institution authorized to do business in this Commonwealth.
(2) The letter of credit shall be irrevocable and shall be so designated. The letter of credit shall name the Fund as the beneficiary and shall be payable to the Fund. The Fund may accept a letter of credit for which a limited time period is stated if the following conditions are met and are stated in the letter:
(i) The letter of credit is automatically renewable for additional time periods unless the bank gives at least 90 days prior written notice to both the Fund and the owner or operator, of its intent to terminate the letter of credit at the end of the current time period.
(ii) The Fund may draw upon the letter of credit before the end of its time period, if the distributor is required to post security under § 977.16 (relating to posting and collecting security) and has failed to replace the letter of credit with other acceptable means of compliance in accordance with section 215 of the Oil and Gas Act (58 P. S. § 601.215) within 30 days of the bank’s notice to terminate the letter of credit.
(iii) A distributor will notify the Fund within 30 days of the bank’s notice to terminate the letter of credit.
(3) The letter of credit shall be governed by the Uniform Custom and Priorities for Accounting Credits, International Chamber of Commerce, Publication Number 400 (1983 edition), and the laws of the Commonwealth, including 13 Pa.C.S. § 5101 (relating to letters of credit).
(4) The Fund will not accept a letter of credit from a bank, which has failed or refused to pay, in full, on a letter of credit previously submitted as collateral to the Fund.
(5) The Fund will not accept a letter of credit that contains rights of set-off, or liens in favor of the issuing bank.
(e) If the Fund collects an amount under the letter of credit in excess of the fees due, following failure of the distributor to replace the letter of credit after demand by the Fund, the Fund will hold the excess proceeds as cash collateral. The distributor may obtain the excess after the distributor has submitted, and the Fund has approved, a bond or other form of security posted in compliance with this section.
Cross References This section cited in 25 Pa. Code § 977.16 (relating to posting and collecting security).
§ 977.18. Capacity fee payment procedure.
(a) The Fund shall charge the capacity fee to an owner or operator.
(b) The capacity fee shall be established as set forth in § 977.12(d) (relating to owner and operator fees).
(c) An owner or operator shall pay, on or before the due date indicated on the statement, the full amount of the capacity fee or a monthly payment of 1/12 of the total capacity fee due.
Cross References This section cited in 25 Pa. Code § 977.4 (relating to definitions).
§ 977.19. Certified company fees.
(a) Annual fees. The Board will charge fees established in this section, based on an annual actuarial review.
(b) Certified company fee. Certified companies shall be required to pay to the Fund a certified company fee of $1,000 per year.
(c) Certification fee. Certified companies which perform tank-handling activities on a UST as described in this subsection, shall be required to pay to the Fund an annual certification fee for each of the certifications held for each of the certified installers, based on the certification information maintained by the DEP (See § 245.110 (relating to certification of installers)):
(1) Installation and modification certification (UMX) fee of $0.
(2) Removal certification (UMR) fee of $0.
(3) Tightness Tester certification (UTT) fee of $0.
(4) Storage tank liner certification (TL) fee of $0.
(d) Activity fee. An activity fee shall be assessed on all activities on a UST or a HOT. The tank installer shall complete an activity fee form, supplied by the DEP for each activity. Except in an emergency these forms shall be submitted to the DEP 30 days prior to the commencement of the activity. The fees are as follows:
(1) Installation Activity Fee of $50.
(2) Major Modification Activity Fee of $50.
(3) Removal Activity Fee of $15.
Cross References This section cited in 25 Pa. Code § 245.132 (relating to standards of performance); 25 Pa. Code § 977.4 (relating to definitions); and 25 Pa. Code § 977.20 (relating to certified copmpany fee, certification fee and activity fee payment procedure).
§ 977.20. Certified company fee, certification fee and activity fee payment procedures.
(a) Certified company fee and certification fee payment procedures.
(1) This section applies to a certified company that performs installations, major modifications or removals of a UST or a HOT.
(2) A certified company shall pay the certified company fee and the certification fee to the Fund on or before the due date on the statement.
(3) The assessed fees shall be established in § 977.19 (relating to certified company fees).
(4) A certified company shall pay, by the due date indicated on the statement, the full amount of the fee or a monthly payment of 1/12 of the total certified company fee and certification fee.
(b) Activity fee payment procedures.
(1) This section applies to a certified company that performs installations, major modifications and removals of a UST or a HOT.
(2) The certified company shall submit required installation, modification and removal fees to the Fund upon receipt of the monthly invoice from the Fund.
(3) The activity fee shall be established in § 977.19(d).
§ 977.21. Penalty for late payment of fees.
Failure or refusal of a participant to pay the fee or a part of the fee by the date established by the Board for the payment of fees may result in a penalty of 5% of the amount due which shall accrue on the first day of delinquency. Thereafter, on the last day of each month during which a part of a fee or a prior accrued penalty remains unpaid, an additional 5% of the then unpaid balance shall accrue in accordance with section 705(e) of the act (35 P. S. § 6021.705(e)).
Cross References This section cited in 25 Pa. Code § 977.61 (relating to dispute procedure).
§ 977.22. Fee dispute procedure.
(a) General disputes. The participant or a distributor that disputes the amount of an assessed fee may obtain review by filing a complaint with the Fund’s Executive Director following the procedure established in § 977.61 (relating to dispute procedures).
(b) Change in tank ownership. If a change in the ownership of a UST occurs and the prior owner failed to pay assessed fees, the current owner may file an affidavit supplied by the Fund to establish date of ownership. The Fund may waive unpaid assessed fees up to and including the date of purchase of a UST. Coverage for releases occurring on or after the date of ownership may be considered for Fund coverage, based on the eligibility requirements as found in § 977.31 (relating to eligibility requirements).
§ 977.23. Recordkeeping responsibilities.
(a) An owner or operator shall maintain for 3 years documents necessary to verify the payment of the gallon, capacity and tank fees. At a minimum, these records shall include:
(1) Distributor delivery invoices.
(2) Financial records documenting payment of fees.
(3) Regulated substance inventory documents.
(4) Copies of the statement for a gallon, capacity or tank fee.
(b) A distributor shall maintain for a minimum of 3 years documents necessary to verify the number of gallons of regulated substances delivered into a UST. Records shall be maintained by customer account and shall include at a minimum:
(1) Distributor delivery invoices.
(2) Financial records, by customer account, documenting payment of the gallon fee.
(3) Financial records pertaining to remittance of the gallon fee by distributor.
(4) Regulated substance inventory records.
(5) Copies of the Fund’s gallon fee statement.
(c) A certified company shall maintain for 3 years documents necessary to verify the company certification and the number of installer certifications held by the employees of the company for the installation, major modification and removal of a UST or a HOT. This documentation shall include, at a minimum:
(1) Copies of the DEP company certification and tank installer certificates.
(2) Financial records documenting payment of fees to the Fund.
(d) A certified company shall maintain documents necessary to verify the number of installations, modifications and removal activities performed on a UST or a HOT. This documentation shall include, at a minimum:
(1) Copies of the tank activity report form originally submitted to the DEP.
(2) Financial records documenting payment of fees to the Fund.
(e) Documents identified in this section shall be made available to the Fund upon request.
§ 977.24. Audit of records.
The Fund may require audits of the participant or a distributor to protect the rights and responsibilities of the Fund.
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