15A NCAC 1K Groundwater Protection Loan Fund Public Hearing Record (Interdepartmental Rule)

1 5 A NC AC 1 K
G R O U N D W A T E R P R O T E C T I O N
L O A N F U N D
T A B L E 0 F C O N T E N T S
(APPROVAL DATE: DECEMBER 1, 1992)
I. FINAL APPROVAL MATERIALS
A) Submission for filing form
B) Rule approved by Rules Review Commission
(RRC)
C) RRC Memoranda
D) Departmental approval
II. HEARING AND PUBLIC NOTICE MATERIALS
A) Public Notice form and request for
adoption
B) Summary of Hearing Officers
Recommendations to the Environmental
Management Commission
C) Public Comment and Responses
D) Proceedings of Hearings
E) Fiscal Note
F) Rule presented at hearings
III. RULEMAKING SUPPORT DOCUMENTS
IV. NOTIFICATION MEMORANDA
V. PUBLIC COMMENTS.
.. SUB!\IISSION FOR FILING
I. Certifying Agency: 2. Rule Citation:
Environment, Health, and Natural Resources 15A NCAC 1K.0101
3. Rule Catchline ('.\ame): 4. Statutory Authority for Rule:
General 143-215.94P· 1438-279 .2
s. Action: 6. Proposed Effective Date:
[l1 ADOPTIO:'\ □ A\IEN0:\1Ei'\T □ REPEAL
December 1 ' 1992
7.
[8) ;\oticc in Register ~ Public Hearing □ :'\otice and Public Hearing '.\ot Required
Date: Jul y 15 , 1992 Oate: Au g ust 6, 1992 L'nder G.S.
Oatc: Date:
Date: Date:
8. Ruic Summary (not required for a repealed rule):
This Rule states the purpose of the Subchapter and designates the agen_cy which wi 11 administer the rules.
9 . Statement of '-cccssit) for Ruic !Sec G.S. I S0H-21.2, I S0B-21.91 (not required for a repealed rule):
This Rule is necessary for the administration of the Subchapter. \
/7
10. Rulcmaking Coordinator or Agency Contact: I(. Signature of Agency Ilea~ / /
J. William Reid --•--::;T I\ ¼1 -;
Add res~.:. T ~ame: O'EPOTY ·sECRETARV f
DEM -Groundwater
441 N. Harrington St., Ralei q h , NC William W. r.nh~v .Jr
Phone: T /(Je:
733-1313 Secretary of Department
Rulcs _RcYicw Commission t.:sc Only Office of Administrative I learings L'se Only
Action Taken:
□ Appro val
□ Objec tion
□ Extension of Review
□ Curatii e Rule Effectii•e Date:
□ Retumed Un changed Approved hy:
FORI\I OAll-1 (R E VISED 10 /91)
SUBl\lISSION FOR FILING
I . Certifying Agency: 2. Rule Citation:
Environment, Health, and Natural Resources 15A NCAC 1K.0102
3. Rule Catchline (:\ame): 4. Statutory Authority for Rule:
Applicability 143-215.94P; 143-215.94T
5. Action: 6. Proposed Effective Date:
~ AOOPTIO:-..-□ A,1 E~D:\1F.i'T □ REPEAL
December 1 , 1992
7.
[8J :'\oticc in Register ~ Public Hearing □ '.'\otice and Public I fearing '.'\ot Required
Date: July 1 5 , 1992 Oate: Au g ust 6 I 1992 Lndcr G.S.
Oatc: Date:
Date: Date:
8. Ruic Summary (not required for a repealed rule):
This Rule designates to whom this Subchapter applies what the loans • may be utilized for, and also establishes caps on the amount of
money loaned to borrowers.
9 . Statement of :\cccssity for Ruic ISee G .S. I S0H-21.2, I 50B-2 i .91 (not rc4uircd for a repealed rule):
This Rule is needed to clarify the scope of the Subchapter.
10. Rulcmaking Coordinator or Agency Contact: 11. Signalu: of Agency Head:~ _ -µ . J. William Reid
.-\ddrc ss: T1 -..; arJ£PUTI SECRilJRY I DEM -Groundwater
441 N. Harrington St., Raleigh, NC "--Wi 11 i am W. Cobe y, Jr.
Phone: '·i"iflc:
733-1313 Secretary of Department
Rules Rc,icw Commiss ion Lse Only Office of .\dministrati\"e I lcarings Lse Only
A ction Taken:
□ Approval
0 Objection
□ Extension of Review
□ Curatfre Rule Effectfre Dute:
□ Returned {_ ·nchanged Approw:d l>y:
FORi'\1 OAll-t (RE\"ISEO 10/91)
SUBI\USSION FOR FILING
I. Certifying Agency: 2. Rule Citation:
Environment, Health, and Natural Resources 15A NCAC 1K.0103
3. Rule Catchline (~lame): 4. Statutory Authority for Rule: . 143-215.94A;
Definitions 143-215.94P; 143-215.94T
5. Action : 6. Proposed Effective Date:
~ ADOPTION □ A:\fEND:\1ENT D REPEAL
December 1 ' 1992
..
7 .
IB] :\ oticc in Register IBI Public Hearing .□ Notice and Public Hearing :'\ot Required
Date: July 1 5 , 1992 Date: August 6 ' 1992 Under G.S.
Date: Date:
Date: Date:
8. Ruic Summary (not required for a repealed rule):
This Rule defines the terms used in this Subchapter.
c:: r-,,,,,...
9. Statement of:\cccssity for Ruic !Sec G.S. 1508-21.2, 150B-21.91 (not required for a repealed rule):
...,_
This Rule is necessary in order to understand the content of the
Subchapter.
--
10. Rulcmaking Coordinator or Agency Contact: 11. Signature of A 11 e ~ ,_,,.,.,. v -J. William Reid .__
~ I ._ultl,l:'l;:.T A f"'ADI
Address: DEM -Groundwater T~ame=oEPUTY SECRETARY
441 N. Harrington St., Raleigh, NC William W. Cobey, Jr.
Phone: Ti(le: 733-1313 Secretary of Department
Rules Rc,·icw Commission Use Only Office of Administrative Hearings Use Only
Action Taken:
□ Approval
□ Objection
□ Extension of Review
□ Curatfre Rule Effective Date:
□ Returned Unchan.ged Approved by:
FOR,t OAll-1 (REVISED 10/91)
SUBl\USSION FOR FILING
I. Certifying Agency: 2. Rule Citation:
Environment, Health, and Natural Resources 15A NCAC 1K.0201
3. Rule Catchline ('.'iame): 4. Statutory Authority for Rule:
Eligibility 143-215.94P; 143-215.94T
5. Action: 6. Proposed Effective Date:
IR] ADOPTION □ A:\1END:\1Ei'l.'T □ REPEAL December 1 I 1992
7.
~ 1'otice in Register ~ Public Hearing □ Notice and Public I (earing ;\'ot Required
Date: July 15 I 1992 Date: August 6 I 1992 Under G.S.
Date: Date:
Date: Date:
8. Rule Summary (not required for a repealed rule):
This Rule specifies the basic requirements necessary to obtain
a loan from the Loan Fund.
9. Statement of Necessity for Ruic !See G.S. 150B-21.2, 150B-2L91 (not required for a: repealed rule):
This Ru·1e sets forth the requirements for participating in the ( program which wi 11 be governed by this Subchapter.
/1
10. Rulcmaking Coordinator or Agency Contact: ti. Signature of Agency lie~
J . Wi 11 iam Reid ""'"'11.IC'C!T A ,.. -~ ·-
Addres_s: DEM -Groundwater Tt ;\'ame: DEPUTY SEC RH Atn
441 N. Harrington St., Raleigh, NC William W. Cobey, Jr.
Phone: "Tille: 733-1313 Secretary of Department
Rules Review Commission t:sc Only Office of Administrative Hearings Use Only
Action Taken:
□ Approval
□ Objection
□ Extension of Review
□ Curati~·e Rule Effective Date:
□ Returned Unchanged Approved by:
FOR:\1 OAll-1 (REVISED 10/91)
SUBl\USSION FOR FILING
1. Certifying Agency: 2. Rule Citation:
Environment, Health, and Natural Resources 15A NCAC lK.0202
3. Rule Catchline (Name): 4. Statutory Authority for Rule: 143-215.94C; .
Application Procedures 143-215.94P; 143-215.94T
5. Action: 6. Proposed Effective Date:
0 ADOPTION □ A:\·IEND:\fEi'ff □ REPEAL December 1, 1992
7.
~ ;\oticc in Register Kl Public Hearing □ Notice and Public Hearing ;\'ot Required
Date: July 15, 1992 Date: August 6 ' 1992 Under G.S.
Date: Date:
Date: Date:
8. Ruic Summary (not required for a rcpcalctl'rule):
This Rule specifies the procedures by which the regulated community
may apply for a loan under the Rules of this Subchapter.
9. Statement of :\'cccssity for Ruic (Se_e G .S. 1508-21.2, 1508-21.91 (not required for a repealed rule):
The Rule sets the basic requirements for participation in the loan t.--' program. ~ i--
/]
l 0. Rulcmaking Coordinator or Agency Contact: 11. Signature of Agenc II~// J. William Reid --
-✓~-----;
Address: Ji Name: DEPUTY SECRETARY I DEM -Groundwater
441 N. Harrington St., Raleigh, NC Willi~m W. -Oobey, Jr.
Phone: .... lltle:
733-1313 Secretary of Department
Rules RcYicw Commission Use Only Office of Administrative Hearings Use Only
Action Taken:
□ Approval
□ Objection
□ Extension of Review
□ Curntive Rule Effective Date:
□ Returned Unchanged Approved by:
FOR:\1 OAII-J (REVISED 10/91)
SUBl\tIISSION FOR FILING
I. Certifying Agency: 2. Rule Citation:
Environment, Health, and Natural Resources 15A NCAC 1K.0301
3. Rule Catchline (Name): 4. Statutory Authority for Rule:
Bank Eligibility 143-"215.94P
s. Action: 6. Proposed Effective Date:
~ ADOPTION □ A:\·IEND:vlEi'\T □ REPEAL December 1 ' 1992
7.
~ ;'\ oticc in Register
1992 ~ Public Hearing □ Notice and Public Hearing Not Required
Date: July 1 5 , Date: August 6 , 1992 Under G.S.
Date: Date:
Date: Date:
8. Ruic Summary (not required for a repealed rule):
This Rule specifies the terms under which Banks wi 11 participate in the administration of the loan program.
9. Statement of Necessity for Ruic !Sec G.S . 150B-21.2, 150B-21.9J (not required for a repealed rule):
This Rule is needed so that Banks can be used to administer the loans. {
10. Rulcmaking Coordinator or Agency Contact:
1
~ Signature of Agency
J. William Reid
-,.. f',Mlf/
Address: DEM Groundwater Tl Name:oEPUTY SECREfARV I -
441 N. Harrington St., Raleigh, NC tk-william w. Cobey, Jr .
Phone: .....,.rft1e: 733-1313 Secretary of Department
Rules Review Commission Use Only Office of Administrative Hearings Use Only
Action Taken:
□ Approval
□ Objection
□ Extensioll of Review
□ Curative Rule Effecti1•e Date:
□ Returned Unchanged Approved by:
FOR:\1 OAll-1 (REVISED 10/91)
SUBl\lISSION FOR FILING
I. Certifying Agency: 2. Rule Citation:
Environment, Health, and Natural Resources 15A NCAC 1K.0303
3. Rule Catchline (Xame): Fund 4. Statutory Authority. for Rule:
Duties of the Loan11 coodinator 143-215.940(9); 143-215.94P
5. Action: 6. Propos ed Effective Date:
[8] ADOPTION □ A,IE:'\D\IE:'.'T □ REPEAL December 1 I 1992
7.
~ :'\uticc in Register
1992 ~ Public Hearing □ ;',;otice and Pub.lie Hearing :\"ot Required
Date: July 15, Date: August 6, 1992 Cnder G.S.
Date: Date: ·.
Oate: Date:
8. Ruic Summary (not required for a repealed rule):
This Rule sets out the duties of the Loan Coordinator.
9 . Statement of ~cccssity for Ruic !Sec G .S. 1508-21.2, 1508-21.91 (not required for a repealed rule):
This Rule defines the role and duties of the Loan ·coordinator. Because this coordinator will te ·,
a contractor, this will serve as· the oo.s is for, the coordinator I s actions, and wi l1 a 11 ow the Banks
to work with th~ c6ordinator without confusion aoout judsdiction and resr;onsibilities .
. .
--./7
10. Rulcmaking Coordinator or Agency C ontact: 11. Signature of Agency I lead: ..&"'~ __V J. William Reid ~ (_ '--I --
Address: DEM Groundwater T~'\at,f'm.,., r.. L.PinL I -· PUTY SECRETARY
441 N. Harrington St., Raleigh, NC William W. Cobey, Jr.
Phone: Tihe: 733-1313 Secretary of Department
Rules Review Commission Lsc Only Office of Administrative Hearings l.Jse Only
Action Taken:
□ Approval
□ Objection
□ Extension of Review
□ Curatii·e Rule Effectfre Date:
□ Returned Unchang ed Approved by:
FOR,t 0 .-\11 -1 (REVISED 10/91)
SUBl\HSSION FOR FILING
I . Certifying Agency: 2. Rule Citation:
Environment, Health, and Natural Resources 15A NCAC 1K.0305
3. Rule Catchline (:--;ame): 4. Statutory Authority_ for Rule:
Delinquent Accounts 143-215.94P
5. Action: 6. Proposed Effective Date:
IB] ADOPTION □ A:\·IE:XD:\IE:':T □ REPEAL December 1 ' 1992
7.
~ :'\uticc in Register
1992 ~ Public Hearing □ ;'\otice and Public Hearing :\"ot Re quired
Date: July 15, Date: August 6 ' 1992 Lnder G.S.
Date: Date:
Date: Date:
8. Ruic Summary (not required for a repealed rule):
This Rule sets the criteria for when a loan is delinquent and
the actions that must be taken by the Bank.
9. Statement of ,cccssity for Ruic (Sec G.S. 1508-21.2, 1508-21.9( (not required for a repealed rule):
This Rule is needed so that the Department can respond in a timely
and efficient manner to delinquent accounts.
,. /1
10. Rulemaking Coordinator or Agency Contact: 11. Signature of Agency I lead: l7 J. William Reid -/ I f'A n1
Address: DEM -Groundwater X ~am,,EPUTY SEi RETA .. PY
441 N, Harrington St., Raleigh, NC William W. Cobey, Jr.
Phone: "'T(tle:
of 733-1313 Secretary Department
Rules Review Commission Lse Only Office of Administrative Hearings Lse Only
Action Taken:
□ Approval
□ Objection
□ Extens ion of Review
□ Curative Rule Effectfre Date:
□ Returned Unchanged Approved by:
FOR:\l Or\11-1 (REVISED 10/91}
SUB1"IISSION FOR FILING
I. Certifying Agency: 2. Rule Citation:
Environment, Health, and Natural Resources 15A NCAC 1K.0401
3. Rule Catchline (Name): 4. Statutory Authority for Rule : .
Loan Administration Fees and Costs 143-215. 94.P
5. Action: 6. Proposed Effective Date:
~ ADOPTIO;"\I □ A:\1END:\fE~T □ REPEAL December 1 ' 1992 ..
7.
~ ;-..·uticc in Register
1992 ~ Public Hearing □ Notice arid Public I [earing :\"ot Required
Date: July 15, Date: August 6' 1992 Under G.S.
Date: Date:
Date: Date:
8. Ruic Summary (not required for a repealed rule):
This Rule sets the fees that must be paid by a borrower.
.,,
9. Statement of ;-.;ccessit_y for Ruic (See G.S. 1508-21.2, 1508-21.9( (not required for a repealed rule):
This Rule is needed to allow
Fund.
the efficient operation of the Loan{
...........
10. Rulcmaking Coordinator or Agency Contact: 11. s;g•a:re of Ag•••y I~ u
J. William Reid -
• r&D I
Address: DEM -Groundwater .,_ NffiUTY SECRETAffv
441 N. Harrington St., Raleigh, NC William W. Cobey, Jr.
Phone: T il le: 733-1313 Secretary of Department
Rules Review Commission Use Only Office of Administrative Hearings Use Only
Action Taken:
□ App,.oval
□ Objection
□ Extension of Rc11iew
□ Cw·atil'e Rule Effectii•e Date:
□ Returned Unchanged Appro11ed by:
FOR:\1 OAll-1 (REVISED 10/91)
SUBl\tlISSION FOR FILING
I 'I. Certifying Agency: 2. Rule Citation:
Environment, Health, and Natural Resources 15A NCAC 1K.0402
3. Rule Catchline (Name): 4. Statutory Authority for Rule:
Interest and Term 143-21 5 . 94P .
s. Action: 6. Proposed Effective Date:
~ ADOPTION □ A,1END:\-1E~T □ REPEAL December 1992 1 '
..
7.
0 ;'\ oticc in Register
1992 ° Public Hearing □ Notice and Public Hearing ;'\ot Required
Date: July 15, Date: August 6 ' 1992 L'nder G.S.
Date: Date:
Date: Date:
8. Ruic Summary (not required for a repealed rule):
This Rule specifies the interest rate and term of loans made from thE
Loan Fund.
9. Statement of Necessity for Ruic !Sec G.S. 1508-21.2, 1508-21.91 (not required for a: repealed rule):
This Rule is needed for the fair and equitable operation of the 1 -Fund. l
/J -
10. Rulcmaking Coordinator or Agency Contact: 11. Signature of Agency Head: ~ D J . William Reid ----·----~ -r
Address: Ty1"-ame: DEPUTY SECRE1'ARV 7 DEM -Groundwater
441 N. Harrington St., Raleigh, NC William W. Cobey, Jr.
Phone: f~e:
733-1313 Secretary of Department
Rules Review Commission Cse Only Office of AdministratiYe Hearings Use Only
Action Taken:
□ Approval
□ Objection
□ Extension of Review
□ Curative Rule Effccti\•e Date:
□ Returned Unchanged Approved by:
FOR:\1 OAll-1 (REVISED 10/91)
SUBl\tIISSION FOR FILING
' I. Certifying Agency: 2. Rule Citation:
Environment, Health, and Natural Resources 15A NCAC 1K.0403
3. Rule Catchline (:\'ame): 4. Statutory Authority for Rule: .
Additional Conditions 143-215.94P
s. Action: 6. Proposed Effective Date:
~ ADOP110N □ A:\1END:\1E1"T □ REPEAL
December 1 ' 1992
..
7 .
[] :\otice in Register ~ Public Hearing □ Notice and Public Hearing :\ot Required
Date: July 15, 1992 Date: Au g ust 6 , 1992 Under G.S.
Date: Date:
Date: Date:
8. Ruic Summary {not required for a repealed rule):
This Rule sets out additional conditions that wi 11 apply only in specific circumstances.
9 . Statement of :\ecessity for Ruic !See G.S. 1508-21.2, 1508-21.91 (not required for a: repealed rule): -
This Rule is necessary to facilitate the smooth and efficient 1 -
operation of the Loan Fund.
/}
IO. Rulemaking Coordinator or Agency Contact: 11. Signature of Agency I lead: _.;. ....--:, / _./
J. William Reid , .. A~(_ I
Address: DEM Groundwater T ~ame=oifuTY-SECRETARY -
441 N. Harrington St., Raleigh, NC William W. Cobe y, Jr.
Phone: i it re:
733-1313 Secretary of Department
Rules ReYiew Commission Vse Only Office of Administrative Hearings Use Only
Action Taken:
□ Approval
□ Objection
□ Extension of Review
□ Curative Rule Ejfectii•e Date:
□ Returned Unchanged Approved by:
FOR:\l OAll-1 (R EVISED 10/91)
SUBl\USSION FOR FILING
. I . Certifying Agency: 2. Rule Citation:
Environment, Health, and Natural Resources 15A NCAC 1K.0404
3. Rule Catchline (Name): 4. Statutory Authority for Rule:
Funding of Loan 143-215.94P· 143-215.94T
s. Action: 6. Proposed Effective Date:
~ ADOPTION □ A:\·tEND:\1Ei'ff □ REPEAL
December 1 , 1992
7.
~ ;\" oticc in Register ~ Public Hearing □ Notice and Public Hearing ;-.;-ot Required
Date: Jul y 15 , 1992 Date: Au gust 6 • 199 2 Under G.S.
Date: Date:
Date: Date:
8. Ruic Suinmary (not required for a repealed rule):
This Rule specifies how the money is actually disbursed after the loan commitment is made.
9. Statement of Necessity for Ruic !Sec G.S. 1508-21.2, 150B-21.9) (not required for a: repealed rule):
This -Rule is necessary to implement this Subchapter. (
/1
10. Rulemaking Coordinator or Agency Contact: 11. Signature of Agency Head: -PL/
J. William Reid -
'---7 .
Address: X N . ..," rc:.e1 "-vl'!.rlL 7
DEM -Groundwater ' ame. DEPUTY SECRETARY
441 N. Harrington St., Raleigh, NC William W. Cobey, Jr.
Phone: V-fille:
733-1313 Secretary of Department
Rules Re,·iew Commission t:se Only Office of Administrative Hearings Use Only
Action Taken:
□ Approval
□ Objection
□ Extension of Review
□ Curative Rule Effectfre Date:
□ Returned Unchanged Approved by:
FOR:\t OAll-1 (REVISED 10/91)
TITLE 15A
SUBCHAPTER 1K
GROUNDWATER PROTECTION LOAN FUND
.0100 PROGRAM SCOPE
. 0101 GENERAL
.0102 APPLICABILITY
• 0103 DEFINITIONS
• 0200 APPLICATION
.0201 ELIGIBILITY
.0202 APPLICATION PROCEDURES
.0300 LOAN ADMINISTRATION
:0301 BANK ELIGIBILITY
.0302 LOAN PROCESSING BY BANKS
.0303 DUTIES OF THE COORDINATOR
.0304 LOAN APPROVAL CRITERIA
. 0305 DELINQUENT ACCOUNTS
.0400 LOAN CONDITIONS
.0401 LOAN ADMINISTRATION FEES ANO COSTS
.0402 INTEREST AND TERM
. 0403 ADDITIONAL CONDITIONS
.0404 FUNDING OF LOAN
SECTION • 0100 PROGRAM SCOPE
.0101 GENERAL
(a) The purpose of this Subchapter is to establish
requirements for borrowers and administrators of the
monies of the Groundwater Protection Loan Fund (Loan
Fund).
(b) The Division of Environmental Management (Division)
shall administer the Loan Fund.
History Note: Statutory Authority G.S. 743-275.94P;
1438-279.2
Eff. December 1, 1992
.0102 APPLICABILITY
(a) Monies from the Loan Fund are available to all
owners of commercial underground storage tanks in North
Carolina which were in use on July 1, 1991, and which are
subject to the technical standards contained in 15A NCAC
2N.
(b) Monies from the Loan Fund shall only be used to
upgrade or replace commercial underground storage tanks to
meet technical standards set forth in 15A NCAC 2N relating
to corrosion protection, spill and overfill containment
and prevention, and leak detection. Loan monies shall not
be used to conduct environmental site assessments or
environmental remediation, to construct new · buildings, nor
to install or replace petroleum marketing equipment such
as dispensers, islands, and canopies. Loan monies may be
used for landscaping or paving of the site only if the
landscaping or paving is required to complete the upgrade
or to restore the site after tank replacement.
15A NCAC 7K -Fina7 Version 12/7/92 1
(c) Each loan shall be designated for a specific site .
No owner shall apply for or receive more than one loan
under the provisions of this Subchapter for a single site •
(d) No single loan under the provisions of this
Subchapter shall exceed one hundred thousand dollars
($100, ODO) •
(e) No owner shall apply for or receive loans under the
provisions of this Subchapter in excess of five hundred
thousand dollars ($500,000). If one or more business(es)
under the same or different name(s) is(are) fifty percent
owned by a single individual, partnership, or corporation,
this(these) company(ies) shall not apply for or receive
loans under the provisions of this Subchapter ·in excess of
five hundred thousand dollars ($500,000) .
(f) Applications for loans from the Loan Fund must be
made in accordance with the provisions of this Subchapter
and must be received by a participating Bank prior to
January 1, 1995. All approved loans must be funded on or
before June 30, 1995 •
History Note: Statutory Authority G.S. 143-215.94P;
143-215.94T
Eff. December 1, 1992
,0103 DEFINITIONS
(a) The terms used in this Subchapter shall be as
defined in 15A NCAC 2N.0203.
(b) The following definitions are defined for the
purpose of this Subchapter:
(1) "Annual Operating Fee" is an annual fee required
to be paid to the Department by the owner or
operator of each commercial underground storage
tank in use on or after January 1 of the year,
beginning with. 1989.
(2) "Bank" means any commercial lending institution
as specifically defined in N.C.G.S. 53-1.
(3) "Borrower" means any owner of a commercial
underground storage tank who applies for or
receives a loan from the Loan Fund.
( 4) "Coordinator" means an 1 nd i vi dua 1 or contractor
authorized by the Department to coordinate all
activities between the Department and banks
pertaining to the Loan Fund. The official title
of this individual or contractor shall be Loan
Fund Coordinator.
(5) "Department" means the Department of
Environment, Health, and Natural Resources.
(6) "Primary Bank" means a bank in which the
borrower has existing accounts or from which the
borrower has received loans.
(7) "Serious Contamination" means any ground-water
contamination at levels above the standards
established in 15A NCAC 2L or any soil
contamination extending beyond the property
boundaries which requires remediation pursuant
to the Oil Pollution and Hazardous Substances
Control Act of 1978 (G.S. 143-215.75 -.94), ·
(8) "Tank In Use" means an underground storage tank
which is intended for the containment or
dispensing of petroleum products.
History Note: Statutory Authority G.S. 743-215.94A;
743-215.94P; 143-275.94T
Eff. December 7, 1992
SECTION .0200 APPLICATION
•. 0201 ELIGIBILITY
For an owner of a COl!lllercial petroleum underground
storage tank to be eligible for a loan from the Loan Fund
to upgrade or replace that tank, all of the following
criteria must be met.
(1) The tank must be located in North Carolina and have
been in use on July 1, 1991.
(2) The tank must be registered with the Department.
(3) All annual operating fees required of the borrower
pursuant to G.S. 143-215.94C must have been paid.
(4) The owner must have formally applied for a
conventional loan from his primary bank for the
subject work, and must have been denied based
solely on reasonable concerns with respect to
potential liability for environmental compliance by
the lender, not financial reasons. The owner must
have qualified for the loan 1n all other respects
using generally accepted standards prevailing among
commercial lending institutions.
History Note: Statutory Authority G.S. 143-215.94P;
143-215.94T
Eff. December 7, 7992
.0202 APPLICATION PROCEDURES
(a) Each application to the Loan Fund must be made
through a Bank that has entered into an agreement with the
Department to act as an administrative agency for the Loan
Fund.
(b) Each application submitted to the Loan Fund must be
made on forms supplied by the Department and must be
accompanied by the following:
(1) A letter from the declining Bank stating the
reason the loan application was denied;
(2) Supporting financial statements;
(3) A complete scope of work for the upgrade or
replacement of the tank(s) which provides a
description of the work to be performed
addressing each of the following three
categories according to the technical standards
specified in 15A NCAC 2N:
(A) Corrosion protection for tank(s) and
piping,
(B) Spill and overfill protection and
prevention, and
(C) Leak detection for tanks and piping;
(4) A binding estimate for the scope of work. This
work may be performed by the borrower's own
qualified construction personnel; and
(5) Any applicable fees required by Paragraph (b) of
Rule .0401 of this Subchapter.
(c) If the borrower plans to use real estate where
commercial petroleum underground storage tanks are located
or were formerly located as collateral, a site assessment
must be performed by a Professional Engineer or a Licensed
Geologist as defined in G.S. 89C-3 and G.S. 89E-3,
respectively, prior to the submittal of the application.
The site assessment report shall be attached to a letter
of certification stating whether the site has serious
contamination, and shall be submitted to the Bank with the
application.
(d) In the event the borrower must use real estate
where commercial petroleum underground storage tanks are
not and have not been located as collateral, the borrower
must certify and furnish evidence satisfactory to the Bank
and in accordance with all generally accepted prevailing
standards commonly used by banks, including those for
environmental compliance, that the real estate to be used
would be acceptable as collateral.
History Note: Statutory Authority G.S. 143-215.94C;
143-215.94P; 143-215.94T
Eff. December 1, 7992
15A NCAC 1K -Fina7 Version 12/1/92 2
.0300 LOAN ADMINISTRATION
.0301 BANK ELIGIBILITY
(a) Each bank in North Carolina shall be invited to
participate in the Loan Fund program. Acceptance of a
letter of agreement with the Department shall qualify the
Bank to participate in the administration of the Loan
Fund.
(b) For the purposes of providing loans from the Loan
Fund, Banks shall act only as administrative agencies for
the Department and, if acting within the terms of the
agreement with the Department, shall not incur any
financial or environmental liability associated with loans
from the Loan Fund.
History Note: Statutory Authority G.S. 743-275.94P
Eff. December 1, 1992
.0302 LOAN PROCESSING BY BANKS
(a) Banks shall utilize any rules adopted and
established by the Department. These rules will
complement generally accepted standards prevailing among
banks and relating to commercial loans.
(b) Banks shall receive and process loan applications.
(c) Banks shall gather and process all necessary
documents.
(d) Banks shall receive monthly payments from
borrowers, maintain records, and deposit payment amounts
daily to a designated account of the State Treasurer after
deduction of fees.
(e) Banks shall maintain all original loan documents
until the loan is satisfied.
(f) The Bank shall forward one copy of each of the
following documents to the Coordinator:
(1) the Loan Application;
(2) the Bank letter explaining the reasons for
denial;
(3)
(4)
(5)
(6)
(7)
financial statements;
credit report;
scope of work and binding cost estimate;
originating Bank's letter of certification; and
site assessment report, if applicable, and if
other real property is used as collateral, the
borrower's certification and other evidence
satisfactory to the Bank that the property
conforms with the applicable Rules of this
Subchapter.
(g) The Bank shall make a monthly report to the
Coordinator of each delinquent loan.
(h) Each Bank shall make all Loan Fund files available
to audit and review by the Coordinator, the Department,
the Petroleum Underground Storage Tank Funds Council, or
other authorized persons or agencies.
(i) The Bank shall notify the Borrower of the approval
or denial of the loan application.
History Note: Statutory Authority G.S. 143-215.94P
Eff. December 1, 1992
.0303 DUTIES OF THE LOAN FUNO COORDINATOR
(a) The Coordinator shall be responsible for
coordinating Bank and Department activities relative to
all loans under the Loan Fund.
(b) The Coordinator shall be responsible for
determining the following:
(1) whether all required annual operating fees have
been paid;
(2) whether the application exceeds allowable
amounts for funding pursuant to Paragraphs (c),
(d), and (e) of Rule .0102 of this Subchapter.
(3) whether there are sufficient funds available in
the Loan Fund; and
(4) whether the.application has been completed in
accordance with this Subchapter.
'-(c) If the Coordinator finds that the loan cannot be
• funded, he shall notify the Bank of the reasons that the
1oan cannot be funded.
(d) The Coordinator shall keep copies of all completed
loan documents.
(e) The Coordinator shall make a quarterly report to
the Department and the Petroleum Underground Storage Tank
Funds Council indicating the following:
(1) The number and amount of loan corrrnitments;
(2) Available funds to be lent;
(3) Amount lent to each borrower;
(4) Amount lent by each bank; and
(5) The following information for each loan:
(A) Name of Borrower;
(B) Originating Bank;
(C) Amount of Loan;
(D) Whether loan is for upgrade or for
replacement; and
(E) Status of loan.
(f) The Coordinator shall make the Loan Fund files
available to audit and review by the Department, the
Petroleum Underground Storage Tank Funds Council, or other
authorized persons or agencies.
History Note: Statutory Authority G.S. 743-275.940(g};
143-27 5. 94P
£ff. December 1, 7992
• 0304 LOAN APPROVAL CRITERIA
(a) Before a loan may be funded, all supporting
materials must have been received and reviewed by the Bank
administering the loan. ·
(b) Eligibility for the loan shall be determined in
accordance with Rules .0102 and .0201 of this Subchapter.
(c) If real estate where commercial petroleum
underground storage tanks are located is to be used as
collateral, the site assessment must show that no serious
contamination exists. Other real estate may only be used
as collateral considering all generally accepted
prevailing standards commonly used by banks, including
those for environmental compliance.
(d) Banks shall approve or disapprove loans from the
Loan Fund based on generally accepted commercial bank loan
standards including those for considering the appraised
value of any real estate used for collateral.
History Note: Statutory Authority G.S. 743-275.94P
£ff. December 1, 7992
• 0305 DELINQUENT ACCOUNTS
(a) For a loan made in accordance with this Subchapter,
a loan is del'inquent when the payment is over 30 days in
arrears.
(b) Banks shall place one telephone call and send one
certified letter to any borrower whose account is
delinquent.
(c) If a loan account remains delinquent, Banks shall
forward notice of the delinquent account to the Loan
Coordinator 30 days after the placing of the telephone
call or the mailing of the certified letter.
History Note: Statutory Authority G.S. 143-275.94P
£ff. December 7, 7992
• 0400 LOAN CONDITIONS
.0401 LOAN ADMINISTRATION FEES AND COSTS
(a) All fees and administrative costs associated with
processing and servicing a loan shall be paid by the
borrower.
15A NCAC 1K -fina7 Version 72/7/92 3
(b) The borrower shall pay to the Bank at the time the
loan application is submitted, fees for a credit report
and for an appraisal if real property must be used for
collateral. Fees for title insurance, recording, and
other closing costs shall be paid by the borrower as
applicable.
(c) A loan origination fee equal to the greater of
seven hundred fifty dollars ($750.00) or one percent of
the loan amount shall be paid to the Bank by the borrower
upon approval of the loan.
(d) A loan servicing fee equal to the greater of fifty
dollars ($50.00) or one-twelfth of one percent per month
of the outstanding loan balance may be retained by the
Bank from each monthly payment.
(e) The interest on loans that is received by the
Department may be used to pay coordination costs of the
Loan Fund.
History Note: Statutory Authority G.S. 143-275.94P
£ff. December 7, 1992
• 0402 INTEREST AND TERM
(a) All loans made in accordance with this Subchapter
shall use a variable interest rate. The interest rate
shall be the New York Prime Rate, as reported in the Wall
Street Journal, plus three percent. This rate includes
the loan fees specified in Paragraphs (d) and (e) of Rule
.0401 of this Subchapter.
(b) The term of each loan shall not exceed 120 months •
History Note: Statutory Authority G.S. 743-275.94P
£ff. December 1, 1992
.0403 ADDITIONAL CONDITIONS
(a) Loans made in accordance ·with this Subchapter may
be for the full amount or any part of the cost of the
upgrade or replacement.
(b) Based on borrower's financial ability and in
accordance with generally accepted banking standards,
personal guaranties may be required from borrower, spouse,
and other owners of the borrower's business.
(c) Based on borrower's financial ability and in
accordance with generally accepted banking standards,
sufficient collateral to secure the loan may be required.
(d) Any subsequent owner of the business or corrrnercial
petroleum underground storage tanks, may apply to assume
the outstanding loan. A bank may authorize an assumption
by a subsequent owner only in accordance with generally
accepted prevailing standards commonly used by banks for
assumptions of corrmercial loans •
History Note: Statutory Authority G.S. 743-275.94P
£ff. December 1, 1992
.0404 FUNDING OF LOAN
(a) Following approval of the loan, loan checks will be
made payable to the !)orrower and the contractor(s)
performing the work after the following is provided to the
Bank:
(1) A completed copy of "Notification For A 11
Underground Storage Tanks (New & Upgraded)"
(Form GW/UST-8) stating all work was completed
in accordance with technical requirements of 15A
NCAC 2N. This form is available from the
Department; and
(2) Copies of itemized . invoices •
(b) Loan convnitments shall be made for
six months.
periods up to
History Note: Statutory Authority G.S. 143-275.94P;
143-275.94T
£ff. December 1, 1992
TITLE 15A
SUBCHAPTER 1K
GROUNDWATER PROTECTION LOAN FUND
. 0100 PROGRAM SCOPE
. 0101 GENERAL
. 0102 APPLICABILITY
.0103 DEFINITIONS
. 0200 APPLICATION
.0201 ELIGIBILITY
.0202 APPLICATION PROCEDURES
.0300 LOAN ADMINISTRATION
.0301 BANK ELIGIBILITY
.0302 LOAN PROCESSING BY BANKS
.0303 DUTIES OF THE COORDINATOR
. 0304 LOAN APPROVAL CRITERIA
.0305 DELINQUENT ACCOUNTS
.0400 LOAN CONDITIONS
.0401 LOAN ADMINISTRATION FEES AND COSTS
• 0402 INTEREST AND TERM
.0403 ADDITIONAL CONDITIONS
.0404 FUNDING OF LOAN
SECTION .0100 PROGRAM SCOPE
. 0101 GENERAL
(a) The purpose of this Subchapter is to establish
requirements for borrowers and administrators of the
monies of the Groundwater Protection Loan Fund (Loan
Fund).
(b) The Division of Environmental Management (Division)
shall administer the Loan Fund.
History Note: Statutory Authority G.S. 743-275.94P;
7438-279.2
£ff. December 1, 7992
.0102 APPLICABILITY
(a) Monies from the Loan Fund are available to all
owners of commercial underground storage tanks in North
Carolina which were in use on July 1, 1991, and which are
subject to the technical standards contained in 15A NCAC
2N.
(b) Monies from the Loan Fund shallonly be used to
upgrade or replace commercial underground storage tanks to
meet technical standards set forth in 15A NCAC 2N relating
to corrosion protection, spill and overfill containment
and prevention, and leak detection. Loan monies shall not
be used to conduct environmental site assessments or
environmental remediation, to construct new buildings, nor
to install or replace petroleum marketing equipment such
as dispensers, islands, and canopies. Loan monies may be
used for landscaping or paving of the site only if the
landscaping or paving is required to complete the upgrade
or to restore the site after tank replacement.
15A NCAC 7K -Final Version 12/7/92 1
(c) Each loan shall be designated for a specific site •
No owner shall apply for or receive more than one loan
under the provisions of this Subchapter for a single site •
(d) No single loan under the provisions of this
Subchapter shall exceed one hundred thousand dollars
($100,000) .
(e) No owner shall apply for or receive loans under the
provisions of this Subchapter in excess of five hundred
thousand dollars ($500,000), If one or more business(es)
under the same or different name(s) is(are) fifty percent
owned by a single individual, partnership, or corporation,
this(these) company(ies) shall not apply for or receive
loans under the provisions of this Subchapter in excess of
five hundred thousand dollars ($500,000) .
(f) Applications for loans from the Loan Fund must be
made in accordance with the provisions of this Subchapter
and must be received by a participating Bank prior to
January 1, 1995. All approved loans must be funded on or
before June 30, 1995 •
History Note: Statutory Authority G. S. 743-27 5. 94P;
743-275.94T
£ff. December 1, 7992
.0103 DEFINITIONS
(a) The terms used in this Subchapter shall be as
defined in 15A NCAC 2N.0203.
(b) The following definitions are defined for the
purpose of this Subchapter:
(1) "Annual Operating Fee" is an annual fee required
to be paid to the Department by the owner or
operator of each commercial underground storage
tank in use on or after January 1 of the year,
beginning with 1989 •
(2) "Bank" means any commercial lending institution
as specifically defined in N.C.G.S. 53-1.
(3) "Borrower" means any owner of a commercial
underground storage tank who applies for or
receives a loan from the Loan Fund.
(4) "Coordinator" means an individual or contractor
authorized by the Department to coordinate all
activities between the Department and banks
pertaining to the Loan Fund. The official title
of this individual or contractor shall be Loan
Fund Coordinator.
( 5) "Department" means the Department of
Environment, Health, and Natural Resources.
(6) "Primary Bank" means a bank in which the
borrower has existing accounts or from which the
borrower has received loans.
(7) "Serious Contamination" means any ground-water
contamination at levels above the standards
established in 15A NCAC 2L or any soil
contamination extending beyond the property
boundaries which requires remediation pursuant
to the Oil Pollution and Hazardous Substances
Control Act of 1978 (G.S. 143-215.75 -.94).
(8) "Tank In Use" means an underground storage tank
which is intended for the containment or
dispensing of petroleum products.
History Note: Statutory Authority G.S. 743-275.94A;
743-275.94P; 143-215.94T
£ff. December 7, 1992
SECTION .0200 APPLICATION
.0207 ELIGIBILITY
For an owner of a comnercial petroleum underground
storage tank to be eligible for a loan from the Loan Fund
to upgrade or replace that tank, all of the following
criteria must be met.
(1) The tank must be located in North Carolina and have
been in use on July 1, 7991.
(2) The tank must be registered with the Department.
(3) All annual operating fees required of the borrower
pursuant to G.S. 143-215.94C must have been paid.
(4) The owner must have formally applied for a
conventional loan from his primary bank for the
subject work, and must have been denied based
solely on reasonable concerns with respect to
potential liability for environmental compliance by
the lender, not financial reasons. The owner must
have qualified for the loan in all other respects
using generally accepted standards prevailing among
commercial lending institutions.
History Note: Statutory Authority G.S. 743-275.94P;
743-275.94T
Eff. December 1, 1992
.0202 APPLICATION PROCEDURES
(a) Each application to the Loan Fund must be made
through a Bank that has entered into an agreement with the
Department to act as an administrative agency for the Loan
Fund.
(b) Each application submitted to the Loan Fund must be
made on forms supplied by the Department and must be
accompanied.by the following:
(7) A letter from the declining Bank stating the
reason the loan application was denied;
(2) Supporting financial statements;
(3) A complete scope of work for the upgrade or
replacement of the tank(s) which provides a
description of the work to be performed
addressing each of the following three
categories according to the technical standards
specified in 15A NCAC 2N:
(A) Corrosion protection for tank(s) and
piping,
(B) Spill and overfill protection and
prevention, and
(C) Leak detection for tanks and piping;
(4) A binding estimate for the scope of work. This
work may be performed by the borrower's own
qualified construction personnel; and
(5) Any applicable fees required by Paragraph (b) of
Rule .0401 of this Subchapter.
(c) If the borrower plans to use real estate where
coornercial petroleum underground storage tanks are located
or were formerly located as collateral, a site assessment
must be performed by a Professional Engineer or a Licensed
Geologist as defined in G.S. B9C-3 and G.S. B9E-3,
respectively, prior to the submittal of the application.
The site assessment report shall be attached to a letter
of certification stating whether the site has serious
contamination, and shall be submitted to the Bank with the
application.
(d) In the event the borrower must use real estate
where commercial petroleum underground storage tanks are
not and have not been located as collateral, the borrower
must certify and furnish evidence satisfactory to the Bank
and in accordance with all generally accepted prevailing
standards commonly used by banks, including those for
environmental compliance, that the real estate to be used
would be acceptable as collateral,
History Note: Statutory Authority G.S. 743-275.94C;
143-275.94P; 743-275.94T
Eff. December 7, 1992
15A NCAC 7K -Final Version 12/7/92 2
.0300 LOAN ADMINISTRATION
.0307 BANK ELIGIBILITY
(a) Each bank in North Carolina shall be invited to
participate in the Loan Fund program. Acceptance of a
letter of agreement with the Department shall qualify the
Bank to participate in the administration of the Loan
Fund.
(b) For the purposes of providing loans from the Loan
Fund, Banks shall act only as administrative agencies for
the Department and, if acting within the terms of the
agreement with the Department, shall not incur any
financial or environmental liability associated with loans
from the Loan Fund.
History Note: Statutory Authority G.S. 143-215.94P
Eff. December 1, 7992
.0302 LOAN PROCESSING BY BANKS
(a) Banks shall utilize any rules adopted and
established by the Department. These rules will
complement generally accepted standards prevailing among
banks and relating to commercial loans.
(b) Banks shall receive and process loan applications.
(c) Banks shall gather and process all necessary
documents.
(d) Banks shall receive monthly payments from
borrowers, maintain records, and deposit payment amounts
daily to a designated account of the State Treasurer after
deduction of fees.
(e) Banks shall maintain all original loan documents
until the loan is satisfied.
(f) The Bank shall forward one copy of each of the
following documents to the Coordinator:
(1) the Loan Application;
(2) the Bank letter explaining the reasons for
denial;
(3)
(4)
(5)
(6)
(7)
financial statements;
credit report;
scope of work and binding cost estimate;
originating Bank's letter of certification; and
site assessment report, if applicable, and if
other real property is used as collateral, the
borrower's certification and other evidence
satisfactory to the Bank that the property
conforms with the applicable Rules of this
Subchapter.
(g) The Bank shall make a monthly report to the
Coordinator of each delinquent loan.
(h) Each Bank shall make all Loan Fund files available
to audit and review by the Coordinator, the Department,
the Petroleum Underground Storage Tank Funds Council, or
other authorized persons or agencies.
(i) The Bank shall notify the Borrower of the approval
or denial of the loan application.
History Note: Statutory Authority G.S. 743-275.94P
E ff. December 7, 7 992
.0303 DUTIES OF THE LOAN FUND COORDINATOR
(a) The Coordinator shall be responsible for
coordinating Bank and Department activities relative to
all loans under the Loan Fund.
(b) The Coordinator shall be responsible for
determining the following:
(1) whether all required annual operating fees have
been paid;
(2) whether the application exceeds allowable
amounts for funding pursuant to Paragraphs (c),
(d), and (e) of Rule .0702 of this Subchapter.
(3) whether there are sufficient funds available in
the Loan Fund; and
(4) whether the application has been completed in
accordance with this Subchapter.
(c) If the Coordinator finds that the loan cannot be
funded, he shall notify the Bank of the reasons that the
loan cannot be funded.
(d) The Coordinator shall keep copies of all completed
loan documents.
(e) The Coordinator shall make a quarterly report to
the Department and the Petroleum Underground Storage Tank
Funds Council indicating the following:
(1) The number and amount of loan commitments;
(2) Available funds to be lent;
(3) Amount lent to each borrower;
(4) Amount lent by each bank; and
(5) The following information for each loan:
(A) Name of Borrower;
(8) Originating Bank;
(C) Amount of Loan;
(D) Whether loan is for upgrade or for
replacement; and
(E) Status of loan.
(f) The Coordinator shall make the Loan Fund files
available to audit and review by the Department, the
Petroleum Underground Storage Tank Funds Council, or other
authorized persons or agencies.
History Note: Statutory Authority G.S. 743-275.940(9);
743-275. 94P
Eff. December 1, 1992
. 0304 LOAN APPROVAL CRITERIA
(a) Before a loan may be funded, all supporting
materials must have been received and reviewed by the Bank
administering the loan.
(b) Eligibility for the loan shall be determined in
accordance with Rules .0102 and .0201 of this Subchapter.
(c) If real estate where commercial petroleum
underground storage tanks are located is to be used as
collateral, the site assessment must show that no serious
contamination exists. Other real estate may only be used
as collateral considering all generally accepted
prevailing standards commonly used by banks, including
those for environmental compliance.
(d) Banks shall approve or disapprove loans from the
Loan Fund based on generally accepted commercial bank loan
standards including those for considering the appraised
value of any real estate used for collateral.
History Note: Statutory Authority G.S. 143-215.94P
Eff. December 7, 1992
.0305 DELINQUENT ACCOUNTS
(a) For a loan made in accordance with this Subchapter,
a loan is del"inquent when the payment is over 30 days in
arrears.
(b) Banks shall place one telephone call and send one
certified letter to any borrower whose account is
delinquent.
(c) If a loan a=unt remains delinquent, Banks shall
forward notice of the delinquent account to the Loan
Coordinator 30 days after the placing of the telephone
call or the mailing of the certified letter.
History Note: Statutory Authority G.S. 743-275.94P
Eff. December 7, 1992
. 0400 LOAN CONDITIONS
.0401 LOAN ADMINISTRATION FEES AND COSTS
(a) All fees and administrative costs associated with
processing and servicing a loan shall be paid by the
borrower.
15A NCAC 7K -Final Version 72/7/92 3
(b) The borrower shall pay to the Bank at the t1me the
loan application is submitted, fees for a credit report
and for an appraisal if real property must be used for
collateral. Fees for title insurance, recording, and
other closing costs shall be paid by the borrower as
applicable.
(c) A loan origination fee equal to the greater of
seven hundred fifty dollars ($750.00) or one percent of
the loan amount shall be paid to the Bank by the borrower
upon approval of the loan.
(d) A loan servicing fee equal to the greater of fifty
dollars ($50.00) or one-twelfth of one percent per month
of the outstanding loan balance may be retained by the
Bank from each monthly payment.
(e) The interest on loans that is received by the
Department may be used to pay coordination costs of the
Loan Fund.
History Note: Statutory Authority G.S. 743-275,94P
ff f. December 1, 7 992
.0402 INTEREST AND TERM
(a) All loans made in accordance with this Subchapter
shall use a variable interest rate. The interest rate
shall be the New York Prime Rate, as reported in the Wall
Street Journal, plus three percent. This rate includes
the loan fees specified in Paragraphs (d) and (e) of Rule
.0401 of this Subchapter.
(b) The term of each loan shall not exceed 120 months .
History Note: Statutory Authority G.S. 143-275.94P
Eff. December 1, 1992
.0403 ADDITIONAL CONDITIONS
(a) Loans made in accordance ·with this Subchapter may
be for the full amount or any part of the cost of the
upgrade or replacement.
(b) Based on borrower's financial ability and in
accordance with generally accepted banking standards,
personal guaranties may be required from borrower, spouse,
and other owners of the borrower's business.
(c) Based on borrower's financial ability and in
accordance with generally accepted banking standards,
sufficient collateral to secure the loan may be required.
(d) Any subsequent owner of the business or commercial
petroleum underground storage tanks, may apply to assume
the outstanding loan. A bank may authorize an assumption
by a subsequent owner only in accordance with generally
accepted prevailing standards commonly used by banks for
assumptions of commercial loans.
History Note: Statutory Authority G.S. 743-215.94P
Eff. December 1, 7992
.0404 FUNDING OF LOAN
(a) Following approval of the loan, loan checks will be
made payable to the borrower and the contractor(s)
performing the work after the following is provided to the
Bank:
( 1) A completed copy of "Notification For All
Underground Storage Tanks (New & Upgraded)"
(Form GW/UST-8) stating all work was completed
in accordance with technical requirements of 15A
NCAC 2N. This form is available from the
Department; and
(2) Copies of itemized invoices •
(b) Loan commitments shall be made for periods up to
six months.
History Note: Statutory Authority G.S. 143-275.94P:
143-215. 94T
Eff. December 7, 1992
TITLE 15A
SUBCHAPTER 1 K
GROUNDWATER PROTECTION LOAN FUND
.0100 PROGRAM SCOPE
.0101 GENERAL
.0702 APPLICABILITY
.0703 DEFINITIONS
.0200 APPLICATION
.0201 ELIGIBILITY
.0202 APPLICATION PROCEDURES
.0300 LOAN ADMINISTRATION
.0301 BANK ELIGIBILITY
.0302 LOAN PROCESSING BY BANKS
.0303 DUTIES OF THE COORDINATOR
.0304 LOAN APPROVAL CRITERIA
.0305 DELINQUENT ACCOUNTS
.0400 LOAN CONDITIONS
.0401 LOAN ADMINISTRATION FEES AND COSTS
.0402 INTEREST AND TERM
.0403 ADDITIONAL CONDITIONS
• 0404 FUNDING OF LOAN
SECTION .0100 PROGRAM SCOPE
• 0101 GENERAL
W. The pur po se of this Subcha pter is to establish
r eq uirements for borrowers and administrators of the
monies of the Groundwater Protection Loan Fund (Loan
Fund). ill The Division of Environmental Management (Division )
shall administer the Loan Fund.
Histor y Note: Statutory Authorit y G. S. 743-27 5. 94P;
7438-279.2
Eff. December 7, 7 992
.0702 APPLICABILITY
(a ) Monies from the Loan Fund are available to all
owners of coovnercial unde rg round storage tanks in North
Carolina which were in use on Jul y 1 1 1991 1 and which are
sub ject to the technical standards contained in 15A NCAC
2N.
ill Monies from the Loan Fund shall onl y be used to
upg rade or replace coovnercial underground storage tanks to
meet technical standards set forth in 15A NCAC 2N relating
to corro.sion protection , s pill and overfill containment
and prevention , and leak detection. Loan monies shall not
be used to conduct environmental site assessments or
environmental remediation, to construct new buildings , nor
to install or replace petroleum marketing e qui pme nt such
as dispensers , islands, and cano pies. Loan monies ma y be
used for landsca ping or pavi ng of the site onl y if the
landscaping or paving is required to com plete the upg rade
or to restore the site after tank replacement.
W. Each loan shall be desi gnated for a specific site.
No owner shall a pp l y for or receive more than one loan
under the provisions of this Subcha pter for a sing le site. ill No sing le loan under the provisions of this
Subcha pter shall exceed one hundred thousand dollars
($100,000).
75A NCAC 7K -Final Version showing changes 1
i.!tl No owner shall a pp l y for or receive loans under the
provisions of this Subcha pter in excess of five hundred
thousand dollars ($500 ,000 ). If one or more business(es )
under the same or different name (s ) is(are ) fifty percent
owned by a single individual , partnershi p , or corporation,
this (these ) com pan y(ies ) shall not a pp l y for or receive
loans under the provisions of this Subcha pter in excess of
five hundred thousand dollars ($500,000 ).
ill App lications for loans from the Loan Fund must be
made in accordance with the provisions of this Subcha pter
and must be received by a partici pating Bank prior to
Januar y 1 , 1995. All a pp roved loans must be funded on or
before June 30 , 1995.
Histor y Note: Statutor y Authorit y G. S. 743-27 5. 94P;
743-275.94T
Eff. December 11 7992
.0103 DEFINITIONS
(a) The terms used in this Subchapter shall be as
defined in 15A NCAC 2N.0203 •
(b) The following definitions are defined for the
purpose of this Subchapter:
(1) "Annual Operating Fee" is an annual fee required
to be paid to the Department by the owner or
operator of each commercial underground storage
tank in use on or after January 1 of the year,
beginning with 1989.
(2) "Bank" means any corrmercial lending institution
as specifically defined in N.C.G.S. 53-1 .
(3) "Borrower" means any owner of a coovnercial
underground storage tank who applies for or
receives a loan from the Loan Fund.
(4) "Coordinator" means an individual or contractor
authorized by the Department to coordinate all
activities between the Department and banks
pertaining to the Loan Fund. The official title
of this individual or contractor shall be Loan
Fund Coordinator.
(5) "Department" means the Department of Environment,
Health, and Natural Resources.
ill "Primar y Bank" means a bank in which the borrower
has existing accounts or from which the borrower
has received loans.
(e7) "Serious Contamination" means any groundwater
-contamination at levels above the standards
established in 15A NCAC 2L or any soil
contamination extending beyond the property
boundaries at lo><ols sbeuo 9widolinos set b,i
the Ce~artffient which r eq uires remediation
pursuant to the Oil Pollution and Hazardous
Substances Control Act of 1978 (G.S. 143-
215. 75 -.94 ).
(+§) "Tank In Use" means an underground storage
tank which is intended for the containment or
dispensing of petroleum products.
History Note: Statutory Authority G.S. 743-275.94A;
743-275.94P; 743-275.94T
Eff. December 7, 7992
SECTION .0200 APPLICATION
.0201 ELIGIBILITY
~ an owner of a corrrnercial petroleum unde rg round
storage tank to be eli g ible for a loan from the Loan Fund
to upg rade or replace that tank , all of the following
criteria must be met.
ill The tank must be located in North Carolina and have
been in use on Jul y 1 , 1991.
ill The tank must be r eg istered with the De partment.
ill All annual o pe rating fees r equired of the borrower
pursuant to G.S. 143-215.94C must have been paid.
ill The owner must have formall y a pp lied for a
conventional loan from hi s primary bank for the
subj ect work , and must have been denied based
solel y on reasonable concerns with respect to
po tential liability for environmental com pliance by
the lender , not financial reasons. The owner must
have qualified for the loan in all other res pects
using generall y acce pted standards prevailing amon g
commercial lending institutions.
Histor y Note: Statutory Authorit y G.S. 143-215.94P;
143-275.94T
E ff. December 1, 1992
.0202 APP LICATION PROCEDURES
W Each a pp l i cat ion to the Loan Fund must be made
through a Bank that has entered into an agreement with the
De partment to act as an administrative a gency for the Loan
Fund. ill Each a pp lication submitted to the Loan Fund must be
made on forms su pp lied by the De partment and must be
accom panied by the followi ng :
ill A letter from the declining Bank stating the
reason the loan a pp lication was denied j
ill Su ppo rting financial statements ;
ill A com plete sco pe of work for the upg rade or
replacement of the tank (s ) which provides a
descri ption of the work to be pe rformed
addressing each of the follow i ng three categories
according to the technical standards specified in
15A NCAC 2N:
ill Corrosion protection for tank(s ) and pi ping,
ill Spill and overfill protection and
prevention , and
.{fl Leak detection for tanks and pi ping ;
ill A binding estimate for the scope of work. This
work ma y be pe rformed by the borrower's own
qualified construction personnel ; and
ill An y a pp licable fees r eq uired by Paragraph (b ) of
Rule .0401 of this Subcha pter.
!.£2. If the borrower plans to use real estate where
corrrnercial petroleum underground storage tanks are located
or were formerl y located as collateral , a site assessment
must be pe rformed by a Professional Eng ineer or a Licensed
Geol og ist as defined in G.S. 89C-3 and G.S. 89E-3 .
respectivel y, prior to the submittal of the a pp lication.
The site assessment repo rt shall be attached to a letter
of certifi cation stating whether the site has serious
contamination , and shall be submitted to the Bank with the
a pplication.
ill In the event the borrower must use real estate
where commercial petroleum unde rg round storage tanks are
not and have not been located as collateral , the borrower
must certify and furnish evidence satisfactory to the Bank
and in accordance with all generall y accepted prevailing
standards commonl y used by banks , including those for
envi ronmental com pliance , that the real estate to be used
would be acce ptable as collateral.
Histor y Note: Statutory Au t horit y G.S. 143-215.94C;
143-275.94P: 743-215.94T
Eff. December 7, 1992
75A NCAC 1K -Fina7 Version showing changes 2
.0300 LOAN ADMINISTRATION
.0301 BANK ELIGIBILITY
(a) Each bank in North Carolina w4++ shall be invited
to participate in the Loan Fund program. Acceptance of a
letter of agreement with the Department w4++ shall qualify
the Bank to participate in the administration of the Loan
Fund.
(b) For the purposes of providing loans from the Loan
Fund, Banks w4++ shall act only as administrative agencies
for the Department and, if acting within the terms of the
agreement with the Department, 69 shall not incur any
financial or environment al liability associated with loans
from the Loan Fund.
History Note: Statutory Authority G.S. 743-275.94P
Eff. December 1, 1992
.0302 LOAN PROCESSING BY BANKS
(a) Banks w4++ shall utilize any rules aAd g~idoliAOG
adopted and established by the Department. These rules
aAd g~idoliAos will complement generally accepted
standards prevailing among banks and relating to
commercial loans.
(b) Banks w4l,l. shall receive and process loan
applications. --
(c) Banks w4l,l. shall gather and process all necessary
documents. --
(d) Banks w4l,l. shall receive monthly payments from
borrowers, maintain records, and deposit payment amounts
daily to a designated account of the State Treasurer after
deduction of fees.
(e) Banks w4l,l. shall maintain all original loan
documents until the loan is satisfied.
(f) The Bank w4l,l. shall forward one copy of each of the
following documents to the Coordinator:
(1) the Loan Application;
(2) the Bank letter explaining the reasons for
denial;
(3) financ i al statements;
(4) credit report;
(5) scope of work and binding cost estimate;
(6) originating Bank's letter of soiotifisat i oAs
certification; and
(7) site assessment report, if applicable, and if
other real property is used as collateral, the
borrower's certification and other evidence
satisfactory to the Bank that the property
conforms with the applicable Rules of this
Subchapter.
(g) The Bank shall make a monthly report to the
Coordinator of each delinquent loan.
(h) Each Bank shall make all Loan Fund files available
to audit and review by the Coordinator, the Department,
the Petroleum Underground Storage Tank Funds Council, or
other author i zed persons or agencies.
(i) The Bank shall notify the Borrower of the approval
or denial of the loan application.
History Note: Statutory Authority G.S. 143-215.94P
Eff. December 1, 7992
.0303 DUTIES OF THE LOAN FUND COORDINATOR
(a) The Coordinator 4& shall be responsible for
coordinating Bank and Department activities relative to
all loans under the Loan Fund.
(b) The Coordinator 4& shall be responsible for
determining the follow i ng:
(1) whether all required annual operating fees have
been paid;
(2) whether the application exceeds allowable amounts
for funding pu r suant to Paragraphs (c), (d), and
(e) of Rule .0102 of this Subchapter.
(3) whether there are sufficient funds available in
the Loan Fund; and
(4) whether the application has been completed in
accordance with this Subchapter.
(c) If the Coordinator finds that the loan cannot be
funded, he shall notify the Bank of the reasons that the
loan cannot be funded.
(d) The Coordinator shall keep copies of all completed
loan documents.
(e) The Coordinator shall make a quarterly report to
the Department and the Petroleum Underground Storage Tank
Funds Council indicating the following:
(1) The number and amount of loan conmitments;
(2) Available funds to be lent;
(3) Amount lent. to each borrower;
(4) Amount lent by each bank; and
(5) The following information for each loan:
(A) Name of Borrower;
(B) Originating Bank;
(C) Amount of Loan;
(D) Whether loan is for upgrade or for
replacement; and
(E) Status of loan.
(f) The Coordinator shall make the Loan Fund files
available to audit and review by the Department, the
Petroleum Underground Storage Tank Funds Council, or other
authorized persons or agencies.
History Note: Statutory Authority G.S. 743-215.940(g);
143-27 5. 94P
Eff. December 1, 1992
.0304 LOAN APPROVAL CRITERIA
(a) Before a loan may be funded, all supporting
materials must have been received and reviewed by the Bank
administering the loan.
(b) Eligibility for the loan sha·ll be determined in
accordance with Rules .0102 and .0201 of this Subchapter.
(c) If real estate where commercial petroleum
underground storage tanks are located is to be used as
collateral, the site assessment must show that no serious
contamination exists. Other real estate may only be used
as collateral =nsidering all generally accepted
prevailing standards conrnonly used by banks, including
those for environmental compliance. ·
(d) Banks w4-l+ shall approve or disapprove loans from
the Loan Fund based on generally accepted commercial bank
loan standards including those for considering the
appraised value of any real estate used for collateral .
History Note: Statutory Authority G.S. 143-215.94P
E ff. December 1, 1992
.0305 DELINQUENT ACCOUNTS
(a) For a loan made in accordance with this Subchapter,
a loan is delinquent when the payment is over 30 days in
arrears.
(b) Banks are respoRsiblo for plaQiRg shall place one
telephone call and send one certified letter to any
borrower whose account is delinquent.
(c) If a loan account remains delinquent, Banks w4-l+
shall forward notice of the delinquent ac=unt to the Loan
Coordinator 30 days after the placing of the telephone
call or the mailing of the certified letter.
History Note: Statutory Authority G.S. 143-275.94P
Eff. December 7, 7992
.0400 LOAN CONDITIONS
.0401 LOAN ADMINISTRATION FEES AND COSTS
(a) All fees and administrative costs associated with
processing and servicing a loan~ shall be paid by
the borrower .
15A NCAC 1K -Final Version showing changes 3
(b) The borrower shall pay to the Bank at the time the
loan application is submitted, fees for a credit report
and for an appraisal if real property must be used for
collateral. Fees for title insurance, recording, and
other closing =sts shall be paid by the borrower as
applicable.
(c) A loan origination fee equal to the greater of
seven hundred fifty dollars ($750.00) or one percent of
the loan amount shall be paid to the Bank by the borrower
upon approval of the loan.
(d) A loan servicing fee equal to the greater of fifty
dollars ($50.00) or one-twelfth of one percent per month
of the outstanding loan balance w4-l+ !!!!!.:l be retained by
the Bank from each monthly payment.
(e) All QooraiRatiQR .g.t. of the leaR fwRa shall be
paia owt of The interest on loans that is received by the
Department m;;:;--be used to pa y coordination costs of the
Loan Fund.
History Note: Statutory Authority G.S. 143-215.94P
Eff. December 1, 7992
.0402 INTEREST AND TERM
W All loans made in accordance with this Subcha pter
shall use a variable interest rate. The interest rate
shall be the New York Prime Rate , as repo rted in the Wall
Street Journal , plus three percent. This rate includes
the loan fees specified in Paragraphs (d ) and (e ) of Rule
.0401 of this Subcha oter.
ill The term of each loan shall not exceed 120 months.
History Note: Statutor y Authorit y G.S. 743-275.94P
Eff. December 1, 7992
.0403 ADDITIONAL CONDITIONS
W Loans made in accordance with this Subcha pter ma y
be for the full amount or an y part of the cost of the
upg rade or re placement.
ill Based on borrower's financial ability and in
accordance with generall y accepted banking standards ,
personal guaranties ma y be r equired from borrower , s pouse ,
and other owners of the borrower's business.
!.£l Based on borrower's financial ability and in
accordance with generall y accepted banking standards ,
sufficient collateral to secure the loan may be r eq uired.
ill An y subseq uent owner of the business or commercial
petroleum underground storage tanks , ma y a pp l y to assume
the outstanding loan. A bank ma y authorize an assum ption
by a subseq uent owner onl y in accordance with generall y
accepted prevaili ng standards commonl y used by banks for
assum ptions of commerc i al loans.
History Note: Statutory Authority G.S. 143-215.94P
Eff. December 1 , 1992
.0404 FUNDING OF LOAN
W Following a pp roval of the loan, loan checks will be
made pa yable to the borrower and the =ntractor(s )
pe rforming the work after the following is provided to the
Bank: -ill A com pleted co py of "Notification For A 11
Under ground Storage Tanks (New & Upg raded )" (Form
GW/UST-8 ) stating all work was com pleted in
accordance with technical requirements of 15A
NCAC 2N. This form is available from the
De oartment; and
(2 ) Co oies of itemized invoices. ·
ill Loan commitments shall be made for periods up to
six months.
Histor y Note: Statutor y Authorit y G. S. 143-215. 94P;
143-215. 94T
Eff. December 1, 1992
De p artment Head Res p onsibilities 12 NCAC lOB .2101
Amend/Establishes responsibilities of the department head
with regards to in-service firearms training.
Instructors 12 NCAC lOB .2102
Amend/Establishes responsibilities of instructors who
conduct in-service firearms training.
Minimum Training Re q uirements 12 NCAC lOB .2103
Amend/Establishes minimum training requirements and
specified topics which must be included in each agency's in-
service firearms training program.
In-Service Firearms Re g ualification 12 NCAC lOB .2104
Amend/Establishes minimum requirements/specifications for
qualification with certain weapons.
Failure to Oualifv 12 NCAC lOB .2105
Ani.end/E-stablishes procedures for action by the commission
when a justice officer fails to qualify pursuant to in-
service firearms training requirements.
General
Adopt/States the
the agency which
DEHNR
6~/11:e.~J ~~7'¼tMk4£.....tJ~ ... ~~ lK
purpose of the subchapter and designa es
will administer the rules.
.0101
Ap olicability 15A NCAC lK .0102
Adopt/Designates to whom this subchapter applies.
Definitions 15A NCAC lK . 0103
Adopt/Defines the terms used in this subch~pter.
Elig ibility 15A NCAC lK .0201
Adopt/Specifies the basic requirements necessary to obtain a
loan from the loan fund.
Ap olication Procedures 15A NCAC lK . 02 02
Adopt/Specifies the procedures by which the regulated
community may apply for a loan under the rules of this
subchapter.
Bank Elig ibility 15A NCAC lK .0301
Adopt/Specifies the terms under which banks will participate
in .the administration of the loan program.
Loan Processing b y Banks 15A NCAC lK .0302
Adopt/Sets the processing requirements for banks
participating in the administration of the program.
Duties of the Loan Fund Coordinator 15A NCAC lK .0303
Adopt/Sets out the duties of the loan coordinator.
Loan Approval Criteria lSA NCAC lK .0304
Adopt/Sets the criteria which will determine whether a loan
may be approved from an eligible borrower.
Delinq uent Accounts lSA NCAC lK .0305
Adopt/Sets the criteria for when a loan is delinquent and
the actions that must be taken by the bank.
Loan Administration Fees and Costs lSA NCAC lK . 0401
Adopt/Sets the fees that must be paid by a borrower.
Interest and Term lSA NCAC lK . 0402
Adopt/Specifies the interest rate and term of loans made
from the loan fund.
Additional Conditions lSA NCAC lK . 0403
Adopt/Sets out additional conditions that will apply only in
specific circumstances.
Funding of Loan 15A NCAC lK . 0404
Adopt/Specifies how the money is actually disbursed after
the l ·oan commitment is made. .
Outstanding Resource Waters Sc.z.aM-c. keY'\ 15A NCAC 2B . 0216
Amend/Describes criteria and management strategies
associated with the Outstanding Resource Waters
classification.
Yadkin-Pee Dee River Basin 15A NCAC 2B .0309
Amend/Lists the water quality standards and classifications
for streams in the Yadkin-Pee Dee River Basin.
•.
Attachment for 15A NCAC 1K .0101; .0102; .0103; .0201;
.0202; .0301; .0302; .0303; .0304; .0305; .0401; .0402;
.0403; .0404
Items #4 through #6
A public hearing has been scheduled for August and is
shown below:
Item #8
RALEIGH
August 6, 1992
7:00 PM
Ground Floor Hearing Room
Archdale Building
512 N. Salisbury Street
Comment Procedures
All persons interested in these matters are invited
to attend the public hearing. Written comments may be pre -
sented at the public hearing or submitted through August 14th,
1992. Please submit comments to Mr. David Hance, Division of
Environmental Management, Groundwater Section, P.O. Box 29535,
Raleigh, NC 27626-0535, [phone]. Please notify Mr. Hance
prior to the public hearing if you desire to speak. Oral
presentation lengths may be limited depending on the number of
people that wish to speak at the public hearing.
IT IS VERY IMPORTANT THAT ALL INTERESTED AND
POTENTIALLY AFFECTED PERSONS, GROUPS, BUSINESSES, ASSOCIATIONS,
INSTITUTIONS OR AGENCIES MAKE THEIR VIEWS AND OPINIONS KNOWN TO
THE DEPARTMENT THROUGH THE PUBLIC HEARING AND COMMENT PROCESS,
WHETHER THEY SUPPORT OR OPPOSE ANY OR ALL PROVISIONS OF THE
PROPOSED RULES.
Public Hearing
An'endment to 1 SA N:'AC 1 K
Raleigh, North carolina
August 6th, 1992
HEAR.rm OFFICER Is SPEEUf
HEARIN; OFFICER: MR. JOON R. BU:ME; DIVISICN OF ENVIRCRlEN1'AL
~, cx:NS'IBIJCI'ICN ~ AND lili\NS SECI'ICN.
HFARrN:; OFFICER: QXD EVENIN3, I ~ LIKE 'IO CALL 'IHIS PUBLIC
~ 'IO ORDER. MY NAME IS JOON R. m.£:ME, AND I AM 'lliE SECI'ICN OiIEF
FOO. 'lHE DIVISIW ·OF ENVIRCH,1ENI'AL ~ ~CN GRANrS AND
IflANS SECI'ICN. I HAVE BEEN DESIGNATED HEARING OFFICER FOO. '!HIS
EVENiliG'S HE'ARJN3.
THIS IIFARIN:; IS BEIN:; HEill PURSUANl' 'IO l'Oml CAROLINA GENERAL
STA'IUIE 1 S0B-21 • 2. IN ACXX>RDAN::E WITH 'lliE GENERAL STA'IUI'F.S, A PUBLIC
NJI'ICE OF '!HIS HE:ARIN:; WAS PUBLISHED IN 'lliE JULY EDITICN OF 'lHE N:RIH
CAROLINA RroISTER AND IN 'IHE IOCAL RALEIGH NEWSPAPER. IDI'ICFS WERE ALSO
DIS'IRIBUI'ED 'IO 'IHE PUBLIC AT LARGE. 'IHE DEPARIMENI'' S PUBLIC INFOOMATICN
OFFICER ALSO FURNISHED A NEWS RELEASE 'IO 'IHE MEDIA.
'lHE PURPOSE OF THIS HEARIN; IS 'IO OBI'AIN PUBLIC CXM1ENl' CN 'IHE
PROPOSED AOOPl'ICN OF 1 SA N:'AC 1K EN1Tl'LED ''~TER PROI'ECl'ICN lili\N
FUID II. 'lHE PROPOSED RULES AUJJII 'lHE DEPARIMENI' OF ENVIRCNw1ENI', HEAL'IH,
AND NA'IURAL RESaJRCES ( abbreviated as DEPARIMENI') 'IO MAKE IOANS 'IO
CN-mRS AND OPERA'ICRS OF lJNDERGOJND SIOOAGE TANKS (lJSrs) 'IO REPLACE 00.
UPGRADE USTs IN ~ WI'IH 15A N::'AC 2N. 'lHE PROPOSED RULES SEI'
APPLICATICN AND REVIEW PRO:EJURF.S, LIMI'I'S CN TERM OF IOANS, AND INI'ERFST
RATES • '!HIS RULE-MAKIN:; ACl'ICN WAS AIJIH:ittZED BY 'lHE LEX:;ISLA'lURE IN G. S.
143-215. 94P CN JUNE 3, 1991 • 'lHE IOAN APPLICATICE IEADLINE SE!' ~
'1HESE R[J[R; IS ~ 31, 1994.
A WRITl'EN REXXIID OF THIS I-IEAR]N; WILL BE PREPARED WHIOi WILL
IlOlJDE ALL 'lHE RELEVANI' <XJvr.1ENI'S, ~CNS, AND DISClJSSICNS. FOO. '!HIS
RFASCN, 'lHE HE'ARIN'.i IS BEJN:i TAPE REXXEDED. WRITI'EN <XM-1ENI'S REX:EIVED
BY AUGJSr 14'IH, 1992 WILL ALSO BE IlCWDED IN 'lHE REXmD. BASED CN
'IHESE PUBLIC CXM'v1ENI'S AND INPlJ1' FRCM 'lHE ~TER STAFF, I WILL MAKE
A REX:X:MJIENDATICN 'IO 'lHE DEPARIMENI'. IN MAK1N:i 'IHE FINAL DECISICN, 'IHE
DEPARIMENI' OF ENVIRCNw1ENI', HE'AL'IH, AND NA'IURAL RESOJRCFS CXNSIDERS 'lHE
WRI'ITEN ~, 'lHE ~TICN CF 'Ilffi~ HEARIN; OFFICER, AND <XNCEBNS
OF IT'S CMN DEPARIMENI'AL STAFF. THE PFDPO .. STID EFF'l!.CrIVE DATE FOO. 'lHE
~ 'IO 15A N:'AC 1K IS OOVEMBER 2, 1992.
AT '!HIS TIME, I WJLD LIKE 'IO REXXnITZE [nanes of 1.ocal or state
officials] AND '!HANK YOO FCR ATIENDJN:i THIS HEARING. I ~ ALSO LIKE
'IO REO:GITZE 'IHE F'ClLI£MNG PEOPLE FR0,1 'IHE DIVISICN OF ENVIRCN-1ENI'AL
MANAGEMENI'; [DEM central office and Ilf.M regicnal office persoonel.].
MR. [GRCXJNCMATER SECT'ICN STAFF SPEAKER] WILL N:M ffiMVIARIZE 'IHE
PROPOSED RULES WHIOi ARE 'lHE SUB:JECr OF '!HIS HE"MUN:;.
STAFF SPF.AKER: (STAFF SPEAKER &M-WUZES '!HE RULES).
HE'ARING OFFICER: 'IHANK YOO. WE WILL N'.l'l AO:EPl' PUBLIC <XM"IENI' CN
'IHE PROPOSED RULES. I ~ LIKE 'ID RE7J]ES'I' '1HAT E.VERYOm FILL CXJl' A
REX:iIS'ffiATICN FORM. AFI'ER ALL REX;ISTERED SPEAKERS HAVE HAD AN
OPParn.JNITY 'IO CXMVIENl', I WILL AU/Jil ADDITICNAL SPEAKERS AS T1ME
PERMITS. mEN Ya.JR NAME IS CALLED, PLEASE CXJ-1E UP 'IO 'IHE MICBJPl-llm AND
STA'IE YOOR NAME AND AFFILIATIOO. ALL CXM'1ENI'S SH:XlID BE LIMITED 'ID
MA'ITERS '!HAT ARE RELATIVE 'IO 'lHE PROPOSED AOOPI'IOO. IF Ya.JR c:x::M-Em,
ARE I.OGR '!HAN 'IHREE MINlJIES, I \'Olm LIKE 'IO RE7J]ES'I' 'lHAT 'IHEY BE
SlJBvllTI'ED m WRITIN;. I RESERVE '!HE RIGHI' 'IO ~CN SPEAKERS IF 'IHE
NEED SllXJID ARISE. DIVISICN OF ENVIRCN\1ENrAL MANA<:E-1ENI' STAFF WILL BE
AVAILABLE 'ID ANSWER YCXJR WESTIOOS IF N&:ESSARY. I v0.JID N:M LIKE 'IO
CALL [FIRSr SPEAKER] •
[SPEAKERS ••• ]
('!HE HFAroN; OFFICER, REFERRIN'.i 'IO 'IHE REX;IS'IRATICN CARDS, CALL.5
EAOi SPEAKER 'IO 'lHE MICROPI-mE lli 'IURN)
HE'ARING OFFICER: 'IHANK YOO [I.A5T SPEAKER]. ARE 'IHEm: 1>Ni
ADDITICNAL cx»1ENI'S? IF '!HERE ARE 00 r-mE cx»1ENI'S, I WILL DEC:ARE '!HE
HEARING CWSED. 'lHE HE'ARING R&XlID WILL REMAIN OPEN lNI'IL AUQJST 14'IH,
1992. ANYOOE WISID::R.; 'ID SlDllT WRITim a»1ENl'S MAY 00 SO UNI'IL 'IHAT
DATE. AFl'ER WHIOI TIME,. '!HE aMt'IENl'S WILL BE MADE PARI' OF 'HIE PUBLIC
REXXlID AND I SHALL MAKE MY REXXM®IDATICN 'ID '!HE ~ARY WILLIAM W.
COBEY·, Jr. IT IS 'lHE DESIRE OF '!HE DEPARIMENI' 'IO AIJllAYS ACr m 'IHE BEST
POSSIBLE INl'EREST OF 'lHE PUBLIC. 'IHEREFOOE, PUBLIC PARI'ICIPATICN IS A
VERY IMPCRrANr PARI' OF '!HE RULE--MAKIN:i PRCXESS. WE ~ LIKE 'IO '!HANK
YOO FOR A'ITENDIN:i 'lHE HE'ARING AND OF'FERIN3 YOOR <XM1ENI'S.
Dept. of Environment,
Health, and Natural
Resources
Div. of Env. Management
1424 Carolina Avenue
Washington, NC 27889
[phone]
Dept. of Environment,
Health, and Natural
Resources
Div. of Env. Management
919 North Main Street
Mooresville, NC 28115
( 704) 663-1 699
Dept. of Environment,
Health, and Natural
Resources
Div. of Env. Management
Wachovia Building, Suite 714
225 Green Street
Fayetteville, NC 28301-5043
[phone]
Dept. of Environment,
Health, and Natural
Resources
Div. of Env. Management
127 Cardinal Drive Extension
Wilmington, NC 28405-3845
[phone]
Dept. of Environment,
Health, and Natural
Resources
Div. of Env. Management
8025 North Point Blvd., Suite 100
Winston-Salem, NC 27106
[phone]
Dept. of Environment,
Health, and Natural
Resources
Div. of Env. Management
59 Woodfin Place
Asheville, NC 28801-2482
[phone]
Dept. of Environment,Health, and Natural Resources
Div. of Env. Management
512 N. Salisbury Street, Archdale Building
P.O. Box 29535
Raleigh, NC 27626-0535
[phone]
PROCEEDINGS OF DEPARTMENTAL 15A NCAC 1K HEARING
Introduction
A public hearings were held in North carolina by the Division of
Environmental Managerrent to receive public carment on the amendments to
1 SA NC'AC 1 K, Glnmdwater Protecticn loan Furn. This hearing was held
August 6th ,1992 at 7:00 pn in Raleigh: 'lhe Archdale Building; Ground
Floor Hearing Rocm, 512 North Salisbury Street. A total of Seven (7)
registered peq>le attemed this hearing am. two (2) public mmenls were
presented at these hearings. Four ( 4) camentars :r:espcnEd in writing
prior t.o the deadline given in the public IDtioe.
Public notice of these hearings was mailed to local governments,
environmental organizations, and persons registered as having and
interest in groundwater regulation. Public notice was also published in
the Raleigh News and Observer. '!his notice appeared on public on the
19th of July 1992. 'Ihe hearing ccmnent period remained open through
August 14th, 1992.
Presiding over the Raleigh hearing was Mr. John Robert BlCMe,
Section Chief of the Division of Environmental Management Construction
Grants and Loans Section.
Atterrlees-Raleigh, N.C.
August 6th, 1992
Seven (7) registered attemees were at this hearing:
1 ) Ms. Arme Coan, Natural Resources Di vision Director, North Carolina
Farm Bureau Federation; P.O. Box 27766, Raleigh, N.C. 27611.
(-kttsubnitted written caments at hearing-ktt).
2) Mr. Douglas Havey, P.G., N.C. Petroleum Marketers Association;
P.O. Box 30519, Raleigh, N.C. 27612.
3) Mr. Don Ward, Executive Vice-President; N.C. Petroleum Marketers
Association; P.O. Box 30519, Raleigh, N.C. 27612. (~subnitted
written caments at hearing-ktt).
4) Mr. Paul Washington, Hydrogeol(XJist, DEM-Pollution Control Branch.
5) Mr. Sharon Batts, UST Trust Fund Co-op, Spa.tea Environmental Co. ;
130-112 Penmarc Dr., Raleigh, N.C. 27603.
6) Mr. Jack Ward, Environmental Sales, Spa.tea Environmental Co.;
130-112 Penmarc Dr., Raleigh, N.C. 27603.
7) Mr. Wayne Floyd, Corporate Construction Service Manager, Spa.tea
Environmental Co.; 130-112 Penmarc Dr., Raleigh, N.C. 27603.
DRAFT REVISION 08/13/92 (dh)
Dept . of Environment,
Health, and Natural
Resources
Div. of Env. Management
1424 Carolina Avenue
Washington, NC 27889
[phone]
Dept. of Environment,
Health, and Natural
Resources
Div. of Env. Management
919 North Main Street
Mooresville, NC 28115
[phone]
Dept. of Environment,
Health, and Natural
Resources
Div. of Env. Management
Wachovia Building, Suite 714
225 Green Street
Fayetteville, NC 28301-5043
[phone]
Dept. of Environment,
Health, and Natural
Resources
Div. of Env. Management
127 Cardinal Drive Extension
Wilmington, NC 28405-3845
[phone]
Dept . of Environment,
Health, and Natural
Resources
Div. of Env. Management
8025 North Point Blvd., Suite 100
Winston-Salem, NC 27106
[phone]
Dept . of Environment,
Health, and Natural
Resources
Div. of Env. Management
59 Woodfin Place
Asheville, NC 28801-2482
[phone]
Dept. of Environment,Health, and Natural Resources
Div. of Env. Management
512 N. Salisbury Street, Archdale Building
P.O. Box 29535
Raleigh, NC 27626-0535
[phone]
Attachments.
cc: Prestcn HcMard
earl Bailey
Perry Nelsen
Jennie OOette
Public Hearing
Amendment to 1 SA tCAC 1 K
Raleigh, North carolina
August 6th, 1992
HEARIR, CFFICFR Is SPEEOI
HEARING OFFICER: MR. JOHN R. BI.(ME; DIVISICN OF ENVIRCNMENI'AL
~ I a:NS'ffiUCI'ICN GRANI'S AND I..01\NS SECI'ICN.
HF.ARIN; OFFICER: axD EVENIN:;, I w:::xJI.J) LIKE 'IO CALL '!HIS PUBLIC
HEARING 'IO ORDER. MY NAME IS JOON R. :BU:ME, AND I AM THE SECI'ICN OllEF
FOR THE DIVISICN ·OF ENVIRCN-1ENl'AL MANAGEMENl' a:NS'ffiUCI'ICN GRANrS AND
I.Oi\NS SECI'ICN. I HAVE BEEN DFSI~ HFARlN3 OFFICER FOR 'IHIS
EVENING'S HF.ARIN:;.
'IHIS HEARIN3 IS BEIN3 HELD PURSUANI' 'IO N:RIH CAROLINA GENERAL
STA'IUIE 150B-21.2. IN ~ WI'IH THE GENERAL STA'IUI'ES, A PUBLIC
NJI'ICE OF 'IHIS HFARIN3 WAS PUBLISHED IN THE JULY EDITICN OF THE N)RIH
CAROLINA R&;ISTER AND IN 'IHE I.OCAL RALEIGH NEWSPAPER. NJI'ICE'S WERE ALSO
DIS'IRIBIB'ED 'IO 'IHE PUBLIC AT LARGE. THE DEPARIMENI' 1 S PUBLIC INFORMATICN
OFFICER ALSO FURNISHED A NEl'lS RELF.ASE 'IO THE MEDIA.
THE PURPOSE OF 'IHIS HF.ARIN; IS 'IO OBl'AIN PUBLIC CXM'1ENI' CN '!HE
PROPOSED AOOPI'ICN OF 1 SA J.lr.AC 1 K ENITl'LED ''GRaJNI:MA'IER PROI'ECITCN I..01\N
FUID II. THE PROPOSED RULES AU.CM THE DEPARIMENI' CF :ENVIRCN-1ENr' HEAL'IH,
AND NA'IURAL RF.sOORCES ( ali)reviated as DEPARIMENI') 'IO MAKE LOANS 'IO
aim:RS AND OPmA'IOOS OF UNDERGEO.lND SirnAGE TANKS (USTs) 'IO REPLACE OR
UPGRADE USTs IN ~ WI'IH 1 SA N:'.AC 2N. '!HE PROPOSED RULES SE!'
APPLICATICN AND REVIEW PRCX:EXJRES, LIMI'I'S CN 'IERM OF IOANS, AND INIERFST
RATES. '!HIS RULE-MAKIN:; ACI'ICN WAS AI.JnmIZED BY 'IHE LmISIA'IURE IN G. S.
143-215.94P CN JUNE 3, 1991. 'lHE UlAN APPLICATIOO' IEADLINE SEl' ~
'IHESE RULES IS I'E:Et&R. 31, 1994.
A WRITI'EN REXmD OF '!HIS HEAR1N3 WILL BE PREPARED WHIOI WILL
JN:LUDE ALL THE RELE.VANI' aM-1ENI'S, (UFSI'ICNS, AND DISOJSSICNS. FOR '!HIS
REASCN, THE HEARIN::; IS BEIN3 TAPE REXXIIDED. WRITIEN <XM-1ENI'S REx::::EIVED
BY AI.nJST 14'IH, 1992 WILL ALSO BE INCLUDED IN '!HE REX:XJID. BASED CN
'IHESE PUBLIC CXMvlENI'S AND INPUl' FRCM THE GRCXJNJ:MA'IER STAFF, I WILL MAKE
A REXXM-1ENDATICN 'IO THE DEPARIMENI'. IN MAICIN3 'IHE FINAL DOCISICN, '!HE
DEPARIMENr OF mv:mcNv1ENI', HEAL'IH, AND NA'IURAL RF.SaJRCES CXNSIDERS '!HE
WRITim REXXIID, 'IHE REXXM-1ENDATICN CF 'IBI!~ HEARIN; OFFICER, AND CXNCERNS
OF IT'S ~ DEPARIMENI'AL STAFF. THE PP.OPOSlID EFFFL--r!VE DATE FOR '!HE
.AME?D1ENI' 'IO 15A ~ 1K IS OOVEMBER 2, 1992.
AT 'IHIS TIME, I ~ LIKE 'IO REXJXNIZE [naae; of local or state
officials] AND '!HANK YOO FOO. ATI'ENDIN3 'IHIS HF.ARIN;. I WJLD ALSO LIKE
'IO REXXXN.rZE THE ~ PEDPLE FRCM THE DIVISICN OF ENVIBCN-1ENrAL
MANAGEMENr; [DEM centra1 office and DEM regiaial office persaad] .
MR. [GRCUNI:mATER SECI'ICN STAFF SPEAKER] WILL N:l'l St.MWUZE THE
PROPOSED RULES WHIOI ARE THE SUBJECI' OF 'IHIS ~.
STAFF SPEAKER: (STAFF SPEAKER SlM-1ARIZES THE RULES).
HF.ARING OFFICER: 'IHANK YOO. WE WILL N::M ACX:EPl' PUBLIC CXMvJENI' CN
THE PROPOSED RULES. I WJLD LIKE 'IO ~ '!HAT EVERYCNE FILL .001' A
RmIS'IRATICN FORM. AFIER ALL REGISTERED SPEAKERS HAVE HAD AN
OPPORIUNITY 'IO CXMv1ENI', I WILL AU..Oil ADDITirnAL SPEAKERS AS TIME
PERMITS. WHEN Ya.JR NAME IS CALLED, PLEASE a::ME UP -'IO THE MICROPKNE AND
STATE YCXJR NAME AND AFFILIATICN. ALL <XM-1ENI'S SHOOLD BE LIMITED 'IO
MA.TIERS '!HAT ARE RELATIVE 'IO THE PROPOSED AOOPI'ICN. IF YOOR ClM-1ENI'S
ARE I..CNGER '!HAN 'IHREE MINUIES, I WJID LIKE 'IO REQJEST 'IHAT '!HEY BE
SUEMITrED IN WRITIN:i. I RF.SERVE THE RIGfl' 'IO c,uESTICN SPEAKERS IF 'lHE
NEED SHOOLD ARISE. DIVISICN OF ~AL fWWEv1ENl' STAFF WILL BE
AVAILABLE 'IO AN&"WER YOOR. QJESTICNS IF NOCESSl\RY. I WJLD :tOl LIKE 'IO
CALL [FIRST SPEAKER] •
[SPF.AKERS ••• ]
(THE HEARill; OFFICER, REFERRING 'IO THE REX:;IS'IRATICN CARDS, CALLS
EACH SPEAKER 'IO THE MICROP:EK:NE IN 'IURN)
HFARIN3 OFFICER: 'lHANK YOO [I.AST SPEAKER]. ARE '!HERE ANY
ADDITICIU\L aMv1ENI'S? IF '!HERE ARE ID :r-mE OM-1ENI'S, I WILL DEX::LARE 'lHE
HEAR.IN:; CU>SED. THE HEAR.IN:; REXXED WILL REMAIN OPEN lNI'IL AlmSI' 14'IH,
1992. ANYOOE WISHIN; '10 SUEMIT WRITI'EN <XM-1ENI'S MAY 00 SO UNTIL 'IHAT
DATE. AFI'ER WHIOI TIME, THE <XM-1ENI'S WILL BE MADE PARI' OF THE PUBLIC
Rm AND I SHALL MAKE MY REXD-NENDATICN 'IO '!HE SEX:REI'ARY WILLIAM W.
COBEY, Jr. IT IS THE DESIRE OF THE DEPARIMENI' 'IO AIJilAYS 1Cr IN THE BE.ST
POSSIBLE INI'ERFSI',,..OF THE PUBLIC. 'IHEREF'CEE, PUBLIC P.ARI'ICIPATICN IS A
VERY IMPCRI'ANI' PARI' OF THE RIJLE-MAKIN3 PRCCESS. WE WJLD LIKE 'IO '!HANK
YOO FOR A'ITENDJN; '!HE HEAR.IN:; AND OFFERIRi YOOR CXM1ENI'S.
Department Head Res ~onsibilities 12 ~CAC lOB .210:
Amend/Establishes responsibilities of the department head
with regards to in-service firearms training.
Instructors 12 NCAC lOB .2102
Amend/Establishes responsibilities of instructors who
conduct in-service firearms training.
Minimum Training Re q uirements 12 NCAC lOB .2l03
Amend/Establishes minimum training requirements and
specified topics which must be included in each agency's in-
service firearms training program.
In-Service Firearms Re g ualification 12 NCAC lOB .2104
Amend/Establishes minimum requirements/specificatio~s for
qualification with certain weapons.
Failure to Qualify 12 NCAC lOB .2105
Amend/Establishes procedures for action by the com.mission
when a justice officer fails to qualify pursuant to in-
service firearms training requirements.
General
Adopt/States the
the agency which
DEHNR
13~ II t?e ~ J ~~--~\;;~aq,,]ci~ &~ lK
purpose of the subchapter and designates
will administer the rules.
.0101
Aoolicability 15A NCAC lK .0102
Adopt/Designates to whom this subchapter applies.
Definitions 15A NCAC lK .0103
Adopt/Defines the terms used in this subch~pter.
Eli g ibility lSA NCAC lK .0201
Adopt/Specifies the baqiB requirements necessary to obtain a
loan from the loan fund.
Ap olication Procedures
Adopt/Specifies the procedures
community may apply for a loan
subchapter.
lSA NCAC lK .0202
by which the regulated
under the rules of this
Bank Flioibility 15A NCAC lK . 0301
Adopt/Sp e cifies the terms under which banks will participate
in the adrninistrati c n of the loan program.
Loan Processing b y Banks 15A NCAC lK .0302
Ado p t /Sets the processing requirements for banks
participating in the administration o f the program.
Duties of the Loan Fund Coordinator 15A NCAC lK .0303
Adopt/Sets out the duties of the loan coordinator.
Loan Ao proval Criteria 15A NCAC lK . 0304
Adopt/Sets the criteria which will determine whether a loan
may be approved from an eligible borrower.
Delinauent Accounts 15A NCAC lK . 0305
Adopt/Sets the criteria for when a loan is delinquent and
the actions that must be taken by the bank.
Loan A.ciministration Fees and Costs ISA NCAC lK . 0401
Adopt/Sets the fees that must be paid by a borrower.
Interest and Term lSA NCAC lK . 0402
Adopt/Specifies the interest rate and term of loans _made
from the loan fund.
Additional Conditions 15A NCAC lK .0403
Adopt/Sets out additional conditions that will apply only in
specific circumstances.
Funding of Loan 15A NCAC lK .0404
Adopt/Specifies how the money is actually disbursed after
the loan commitment is made.
~ -.:-,.
Outstandin g Resource Waters Sc. z.a""~ ke:•, 15A NCAC 2B . 0216
Amend/Describes criteria and management strategies
associated with the Outstanding Resource Waters
classification.
Yadkin-Pee Dee River Basin 15A NCAC 2B .0309
Amend/Lists the water quality standards and classifications
for streams in the Yadkin-Pee Dee River Basin.
TITLE 15A
SUBCHAPTER 1K
GROUNDWATER PROTECTION LOAN FUND
.0100 PROGRAM SCOPE
.0101 GENERAL
.0102 APPLICABILITY
.0103 DEFINITIONS
.0200 APPLICATION
.0201 ELIGIBILITY
.0202 APPLICATION PROCEDURES
.0300 LOAN ADMINISTRATION
.0301 BANK ELIGIBILITY
.0302 LOAN PROCESSING BY BANKS
.0303 DUTIES OF THE COORDINATOR
.0304 LOAN APPROVAL CRITERIA
.0305 DELINQUENT ACCOUNTS
.0400 LOAN CONDITIONS
.0401 LOAN ADMINISTRATION FEES AND COSTS
.0402 INTEREST AND TERM
.0403 ADDITIONAL CONDITIONS
.0404 FUNDING OF LOAN
TITLE 115A
SUBCHAPTER 1K -GROUNDWATER PROTECTION LOAN FUND
SECTION .0100 PROGRAM SCOPE
15A NCAC 1K.0101 is adopted as published in 7:8 NCR 827 as
follows:
.0101 GENERAL
J.il The p urp ose of this Subchap ter is to establish
req uirements for borrowers and administrators of the monies of
the Groundwater Protection Loan Fund (Loan Fund ).
1hl The Division of Environmental Manag ement (Division ) shall
administer the Loan Fund.
History Note: Statutory Authority G.S. 143-215.94P ;
143B-279.2
Eff. December 1 , 1992
15A NCAC 1K.0102 is adopted as published in 7:8 NCR 827 as
follows:
.0102 APPLICABILITY
(a ) Monies from the Loan Fund are available to all owners of
commercial underg round storag e tanks in North Carolina which were
in use on Jul y 1 , 1991 , and which are sub j ect to the technical
standards contained in 15A NCAC 2N.
1hl Monies from the Loan Fund shall only be used to u pgrade or
rep lace commercial underg round storag e tanks to meet technical
standards set forth in 15A NCAC 2N relating to corrosion
p rotection , s p ill and overfill containment and p revention , and
leak detection. Loan monies shall not be used to conduct
environmental site assessments or environmental remediation , to
construct new building s , nor to install or re p lace p etroleum
marketing e q ui p ment such as dis p ensers , islands , and canop ies.
Loan monies ma y be used for landscap ing or p aving of the site
onl y if the landscap ing or p aving is req uired to comp lete the
u pgrade or to restore the site after tank rep lacement.
1£1 Each loan shall be desig nated for a s p ecific site. No
owner shall a ppl y for or receive more than one loan under the
p rovisions of this Subchap ter for a sing le site .
.1.fil No sing le loan under the p rovisions of this Subchap ter
shall exceed one hundred thousand dollars ($100 ,000 ).
J.tl No owner shall a pp l y for or receive loans under the
p rovisions of this Subchap ter in excess of five hundred thousand
dollars ($500 ,000 ). If one or more business (es ) under the same
or different name (s ) is (are ) fift y p ercent (50%} owned b y a
sing le individual , p artnershi p, or corp oration , this (these )
comp any(ies ) shall not a ppl y for or receive loans under the
p rovisions of this Subchap ter in excess of five hundred thousand
dollars ($500 ,000 } .
.1.il Applications for loans from the Loan Fund must be made in
accordance with the p rovisions of this Subchap ter and must be
received b y a p artici p ating Bank p rior to January 1 , 1995. All
a pproved loans must be funded on or before June 30 , 1995.
History Note: Statutory Authority G.S. 143-215.94P;
143-215.94T
Eff. December 1 , 1992
15A NCAC 1K.0103 is adopted with changes as published in 7:8 NCR
827 as follows:
.0103 DEFINITIONS
(a) The terms used in this Subchapter shall be as defined in
15A NCAC 2N.0203.
(b) The following definitions are defined for the purpose of
this Subchapter:
(1) "Annual Operating Fee" is an annual fee required to be
paid to the Department by the owner or operator of each
commercial underground storage tank in use on or after
January 1 of the year, beginning with 1989.
(2) "Bank" means any commercial lending institution as
specifically defined in N.C.G.S. 53-1.
(3) "Borrower" means any owner of a commercial underground
storage tank who applies for or receives a loan from
the Loan Fund. _
(4) "Coordinator" means an individual or contractor
authorized by the Department to coordinate all
activities between the Department and banks pertaining
to the Loan Fund. The official title of this
individual or contractor shall be Loan Fund
Coordinator.
(5) "Department" means the Department of Environment,
Health, and Natural Resources.
_{_Q_1_ "Primary Bank" means a bank in which the borrower has
existing accounts or from which the borrower has
received loans.
(-6-.I) "Serious Contamination" means any groundwater
contamination at levels above the standards established
in 15A NCAC 2L or any soil contamination extending
beyond the property boundaries at levels above
guidelines set by the Department.
(+8) "Tank In Use" means an underground storage tank which
is intended for the containment or dispensing of
petroleum products.
History Note: Statutory Authority G.S. 143-215.94A;
143-215.94P; 143-215.94T
Eff. December 1, 1992
SECTION .0200 APPLICATION
15A NCAC 1K.0201 is adopted as published in 7:8 NCR 828 as
follows:
.0201 ELIGIBILITY
For an owner of a commercial p etroleum underg round storag e tank
to be elig ible for a loan from the Loan Fund to u pgrade or
rep lace that tank , all of the following criteria must be met.
11.l The tank must be located in North Carolina and have been
in use on July 1 , 1991 .
.Ll.l The tank must be reg istered with the De p artment.
111 All annual o p erating fees req uired of the borrower
p ursuant to G.S. 143-215.94C must have been p aid.
1..!l The owner must have formall y a pplied for a conventional
loan from his p rimary bank for the sub j ect work , and must
have been denied based solely on reasonable concerns with
resp ect to p otential liability for environmental
comp liance b y the lender , not financial reasons. The
owner must have q ualified for the loan in all other
res p ects using g enerally accep ted standards p revailing
among commercial lending institutions.
History Note: Statutory Authorit y G.S. 143-215.94P ;
143-215.94T
Eff. December 1 , 1992
15A NCAC 1K.0202 is adopted as published in 7:8 NCR 828 as
follows:
.0202 APPLICATION PROCEDURES
.1il Each a pplication to the Loan Fund must be made throug h a
Bank that has entered into an a g reement with the De p artment to
act as an administrative a g ency for the Loan Fund •
.112.l Each a pp lication submitted to the loan fund must be made
on forms supplied b y the De p artment and must be accomp anied b y
the following :
ill A letter from the declining Bank stating the reason the
loan a pplication was denied;
ill Supporting financial statements ;
..lll. A comp lete scop e of work for the u pgrade or re p lacement
of the tank (s ) which p rovides a descri p tion of the work
to be p erformed addressing each of the following three
categ ories according to the technical standards
s p ecified in 15A NCAC 2N:
1.Al Corrosion p rotection for tank (s ) and p i p ing,
1fil S p ill and overfill p rotection and p revention , and
~ Leak detection for tanks and p i p ing;
1il A binding estimate for the scop e of work. This work
ma y be p erformed b y the borrower's own q ualified
construction p ersonnel ; and
J_fil An y a pplicable fees req uired b y Parag rap h (b ) of Rule
.0401 of this Subchap ter .
.i,Ql If the borrower p lans to use real estate where commercial
p etroleum underg round storag e tanks are located or were formerl y
located as collateral , a site assessment must be p erformed b y a
Professional Eng ineer or a Licensed Geolog ist as defined in G.S.
89C-3 and G.S. 89E-3 , res p ectively, p rior to the submittal of the
a pplication. The site assessment re p ort shall be attached to a
letter of certification stating whether the site has serious
contamination , and shall be submitted to the Bank with the
a pp lication.
_ig_1_ In the event the borrower must use real estate where
commercial p etroleum underg round storag e tanks are not and have
not been located as collateral , the borrower must certify and
furnish evidence satisfactory to the Bank and in accordance with
all g enerally accep ted p revailing standards commonly used b y
banks , including those for environmental comp liance , that the
real estate to be used would be acce p table as collateral.
History Note: Statutory Authority G.S. 143-215.94C ;
143-215.94P ; 143-215.94T
Eff. December 1 , 1992
.0300 LOAN ADMINISTRATION
15A NCAC 1K.0301 is adopted as published in 7:8 NCR 828 as
follows:
.0301 BANK ELIGIBILITY
.1.fil Each Bank in North Carolina will be invited to p artici p ate
in the Loan Fund p rog ram. Acce p tance of a letter of a g reement
with the De p artment will q ualify the Bank to p artici p ate in the
administration of the Loan Fund. .
..Ll2l For the p urp oses of p roviding loans from the Loan Fund ,
Banks will act onl y as administrative a g encies for the Dep artment
and , if acting within the terms of the a g reement with the
De p artment , do not incur any financial or environmental liability
associated with loans from the Loan Fund.
History Note: Statutory Authority G.S. 143-215.94P
Eff. December 1 , 1992
15A NCAC 1K.0302 is adopted as published in 7:8 NCR 828-829 as
follows:
.0302 LOAN PROCESSING BY BANKS
1£1 Banks will utilize any rules and g uidelines adop ted and
established b y the De p artment. These rules and g uidelines will
comp lement g enerall y accep ted standards p revailing among banks
and relating to commercial loans .
.ihl Banks will receive and p rocess loan a pplications.
1...£1 Banks will g ather and p rocess all necessary documents.
J..gl Banks will receive monthl y p a y ments from borrowers ,
maintain records , and de p osit p a y ment amounts daily to a
desi g nated account of the State Treasurer after deduction of
fees.
1tl Banks will maintain all ori g inal loan documents until the
loan is satisfied.
ill The Bank will forward one copy of each of the following
documents to the Coordinator:
ill the Loan Application;
.Ll.l the Bank letter ex p laining the reasons for denial;
.Ll.l financial statements;
1.1.l credit re p ort;
.ill scop e of work and binding cost estimate;
_{_§1 orig inating Bank's letter of certification ; and
1.1.l site assessment rep ort , if a pplicable . and if other
real p rop erty is used as collateral , the borrower's
certification and other evidence satisfactory to the
Bank that the p rop erty conforms with the a pplicable
Rules of this Subchap ter.
1fil The Bank shall make a monthl y rep ort to the Coordinator of
each delinq uent loan .
.1hl Each Bank shall make all Loan Fund files available to
audit and review b y the Coordinator , the De p artment , the
Petroleum Underg round Storag e Tank Funds Council , or other
authorized p ersons or a g encies .
.1il The Bank shall notify the borrower of the a pproval or
denial of the loan a pplication.
History Note: Statutory Authority G.S. 143-215.94P
Eff. December 1 , 1992
15A NCAC 1K.0303 is adopted as published in 7:8 NCR 829 as
follows:
.0303 DUTIES OF THE LOAN FUND COORDINATOR
~ The Coordinator is res p onsible for coordinating Bank and
De p artment activities relative to all loans under the Loan Fund .
.1hl The Coordinator is resp onsible for determining the
following :
.ill whether all req uired annual o p erating fees have been
p aid;
.ill. whether the a pplication exceeds allowable amount of
funding p ursuant to Parag rap hs (c ), (d ), and {e ) of
Rule .0102 of this Subchap ter .
.Ll..l whether there are sufficient funds available in the
Loan Fund; and
.ill whether the a pplication has been comp leted in
accordance with this Subchap ter.
1.£1 If the Coordinator finds that the loan cannot be funded ,
he shall notify the Bank of the reasons that the loan cannot be
funded .
.1.g_}_ The Coordinator shall kee p cop ies of all com p leted loan
documents .
.<.Ju The Coordinator shall make a q uarterl y re p ort to the
De p artment and the Petroleum Underg round Storag e Tank Funds
Council indicating the followin g :
(1 ) The number and amount of loan commitments;
(2 ) Available funds to be lent;
(3 ) Amount lent to each borrower;
(4 ) Amount lent b y each bank; and
(5 ) The following information for each loan:
(A ) Name of Borrower;
(B ) Orig inating Bank;
(C ) Amount of Loan;
J..!U Whether loan is for u pgrade or for rep lacement;
and
JJU Status of loan .
..lfl The Coordinator shall make the Loan Fund files available
to audit and review b y the De p artment . the Petroleum Underg round
Storag e Tank Funds Council , or other authorized p ersons or
a g encies.
History Note: Statutory Authority G.S. 143-215.940 (9);
143-215.94P
Eff. December 1 , 1992
15A NCAC 1K.0304 is adopted as published in 7:8 NCR 829 as
follows:
.0304 LOAN APPROVAL CRITERIA
.1.fil Before a loan ma y be funded , all supporting materials must
have been received and reviewed b y the Bank administering the
loan .
.1hl Elig ibility for the loan shall be determined in accordance
with Rules .0102 and .0201 of this Subchap ter.
1£1 If real estate where commercial p etroleum underg round
storag e tanks are located is to be used as collateral , the site
assessment must show that no serious contamination exists. Other
real estate ma y onl y be used as collateral considering all
g enerally accep ted p revailing standards commonl y used b y banks .
including those for environmental comp liance .
.1fil Banks will a pprove or disapprove loans from the Loan Fund
based on g enerally accep ted commercial bank loan· standards
including those for considering the a ppraised value of any real
estate used for collateral.
History Note: Statutory Authorit y G.S. 143-215.94P
Eff. December 1, 1992
15A NCAC 1K.0305 is adopted as published in 7:8 NCR 829 as
follows:
.0305 DELINQUENT ACCOUNTS
1.fil For a loan made in accordance with this Subchap ter , a loan
is delinq uent when the p a y ment is over 30 da y s in arrears.
_{J;u_ Banks are res p onsible for p lacing one telep hone call and
one certified letter to any borrower whose account is delinq uent .
.1..£.l If a loan account remains delinq uent, Banks will forward
notice of the delinq uent account to the Loan Coordinator 30 day s
after the p lacing of the telep hone call or the mailing of the
certified letter.
History Note: Statutory Authority G.S. 143-215.94P
Eff. December 1 , 1992
.0400 LOAN CONDITIONS
15A NCAC 1K.0401 is with changes adopted as published in 7:8 NCR
830 as follows:
.0401 LOAN ADMINISTRATION FEES AND COSTS
(a) All fees and administrative costs associated with
processing and servicing a loan are to be paid by the borrower.
(b) The borrower shall pay to the Bank at the time the loan
application is submitted, fees for a credit report and for an
appraisal if real property must be used for collateral. Fees for
title insurance, recording, and other closing costs shall be paid
by the borrower as applicable.
(c) A loan origination fee equal to the greater of seven
hundred fifty dollars ($750.00) or one percent (1%) of the loan
amount shall be paid to the Bank by the borrower upon approval of
the loan.
(d) A loan servicing fee equal to the greater of fifty dollars
($50.00) or one-twelfth of one percent (1/12 %) per month of the
outstanding loan balance will be retained by the Bank from each
monthly payment.
(e) All coordination costs of the loan fund shall be paid out
ef. The interest on loans that is received by the Department may
be used to p a y coordination costs of the Loan Fund.
History Note: Statutory Authority G.S. 143-215.94P
Eff. December 1, 1992
, .
15A NCAC 1K.0402 is adopted as published in 7:8 NCR 830 as
follows:
.0402 INTEREST AND TERM
J..il All loans made in accordance with this Subchap ter shall
use a variable interest rate. The interest rate shall be the New
York Prime Rate , as rep orted in the Wall Street Journal , p lus
three p ercent {3%). This rate includes the loan fees s p ecified
in Parag rap hs (d ) and (e ) of Rule .0401 of this Subchap ter.
1.hl The term of each loan shall not exceed 120 months.
History Note: Statutory Authority G.S. 143-215.94P
Eff. December 1 , 1992
15A NCAC 1K.0403 is adopted as published in 7:8 NCR 830 as
follows:
.0403 ADDITIONAL CONDITIONS
.ifil Loans made in accordance with this Subchap ter ma y be for
the full amount or any p art of the cost of the u pgrade or
re p lacement .
.1hl Based on borrower's financial ability and in accordance
with g enerally acce p ted banking standards , p ersonal a uaranties
ma y be req uired from borrower , s p ouse, and other owners of the
borrower's business.
_{__Q.1_ Based on borrower's financial ability and in accordance
with g enerall y acce p ted banking standards , sufficient collateral
to secure the loan ma y be req uired.
J_fil An y subseq uent owner of the business or commercial
p etroleum underg round storag e tanks , ma y a ppl y to assume the
outstanding loan. A bank ma y authorize an assump tion b y a
subseq uent owner only in accordance with g enerally accep ted
p revailing standards commonl y used b y banks for assump tions of
commercial loans.
History Note: Statutory Authorit y G.S. 143-215.94P
Eff. December 1 , 1992
15A NCAC 1K.0404 is adopted as published in 7:8 NCR 830 as
follows:
.0404 FUNDING OF LOAN
.1.fil Following a pproval of the loan , loan checks will be made
p a y able to the borrower and the contractor (s ) p erforming the work
after the following is p rovided to the Bank:
ill A comp leted copy of "Notification For All Underg round
Storag e Tanks (New & Upgraded )" (Form GW /UST-8 ) stating
all work was comp leted in accordance with technical
req uirements of 15A NCAC 2N. This form is available
from the De p artment; and
(2 ) Co p ies of itemized invoices .
.1.hl Loan commitments shall be made for p eriods u p to six
months.
History Note: Statutory Authority G.S. 143-215.94P ;
143-215.94T
Eff. December 1 , 1992
TITLE 15A
SUBCHAPTER 1K
GROUNDWATER PROTECTION LOAN FUND
.0700 PROGRAM SCOPE
.0101 GENERAL
.0102 APPLICABILITY
.0103 DEFINITIONS
.0200 APPLICATION
.0201 ELIGIBILITY
.0202 APPLICATION PROCEDURES
.0300 LOAN ADMINISTRATION
.0301 BANK ELIGIBILITY
.0302 LOAN PROCESSING BY BANKS
.0303
.0304
.0305
DUTIES OF THE COORDINATOR
LOAN APPROVAL CRITERIA
DELINQUENT ACCOUNTS
.0400 LOAN CONDITIONS
.0401 LOAN ADMINISTRATidN FEES AND COSTS
.0402 INTEREST AND TERM
.0403 ADDITIONAL CONDITIONS
.0404 FUNDING OF LOAN
TITLE 15A
SUBCHAPTER 1K -GROUNDWATER PROTECTION LOAN FUND
SECTION .0100 PROGRAM SCOPE
15A NCAC 1K.0101 has been adopted as published in 7:8 NCR 827 as
follows:
.0101 GENERAL
w_ The p urp ose of this Subchap ter is to establish
re q uirements for borrowers and administrators of the monies of
the Groundwater Protection Loan Fund (Loan Fund ).
J..hl The Division of Environmental Manaa ement (Division ) shall
administer the Loan Fund.
History Note: Statutory Authorit y G.S. 143-215.94P ;
143B-279.2
Eff. December 1 , 1992
15A NCAC 1K.0102 has been adopted as published in 7:8 NCR 827 as
follows:
.0102 APPLICABILITY
(a ) Monies from the Loan Fund are available to all owners of
commercial underg round storag e tanks in North Carolina which were
in use on Jul y 1 , 1991 , and which are sub j ect to the technical
standards contained in 15A NCAC 2N.
{hl_ Monies from the Loan Fund shall onl y be used to u pgrade or
rep lace commercial underg round storag e tanks to meet technical
standards set forth in 15A NCAC 2N relating to corrosion
p rotection , s p ill and overfill containment and p revention , and
leak detection. Loan monies shall not be used to conduct
environmental site assessments or environmental remediation , to
construct new building s , nor to install or re p lace p etroleum
marketing e q ui p ment such as disp ensers , islands , and canop ies.
Loan monies ma y be used for landscap ing -or p aving of the site
ortl y if the landsca p ing or p aving is req uired to com p lete the
u pg rade or to restore the site after tank re p lacement.
iQl Each loan shall bedesi g nated for a s p ecific site. No
owner shall a ppl y for or receive more than one loan under the
p rovisions of this Subchap ter for a sing le site.
191 ·No sing l-e loan under the p rovisions of this Subchap ter
shall exceed one hundred thousand dollars ($100 ,000 ).
kl_ No owner shall a ppl y for or receive loans under the
p rovisions of this Subchap ter in excess of five hundred thousand
dollars ($500 ,000 ). If one or more business (es ) under the same
or different name (s ) is (are ) fift y p ercent owned b y a sing le
individual , p artnershi p, or cor p oration , this (these ) comp an y(ies )
shall not a pp l y for or receive loans under the p rovisions of this
Subcha p ter in excess of five hundred thousand dollars ($500 ,000 ).
1.tl App lications for loans from the Loan Fund must be made in
accordance with the p rovisions of this Subcha p ter and must be
received b y a p artici p ating Bank p rior to Januar y 1 , 1995. All
a pproved loans must be funded on or before June 30 , 1995.
Histor y Note: Statutor y Authorit y G.S. 143-215.94P ;
143-215.94T
Eff. December 1 , 1992
\
15A NCAC 1K.0103 has been adopted with changes as published in
7:8 NCR 827 as follows:
.0103 DEFINITIONS
(a) The terms used in this Subchapter shall be as defined in
15A NCAC 2N.0203.
( b)
this
The following definitions are defined for the purpose -of
Subchapter:
(1) "Annual Operating Fee" is an annual fee required to he
p~id to the Department by the owner or operator of each
commercial underground storage tank in use on or after
January 1 of the year, beginning with 1989.
(2) "Bank" means any commercial _ lending institution as
specifically defined in N.C.G.S. 53-1.
(3) "Borrower" means any owner of a commercial underground
storage tank who applies for or receives a loan· from
the Loan ·Fund . ,
(4) "Coordinator"-means an individual or contractor
authorized by the Department to coordinate all
activities between the Department and banks pertaining
to the Loan Fund. The official title of this
individual or contractor shall be Loan Fund
Coordinator.
(5) "Department" means the Department of Environment,
Health; and Natural Resources.
ill "Primary Bank 11 means a bank in which the borrower has
existing accounts .or from which the borrower has
received loans.
(-6-1) "Serious Contamination" means any groundwater
contamination at levels above the standa~ds established
in 15A NCAC 2L or any soil contamination extending
beyond the property boundaries at levels above
guidelines set by the Department.
('1-§_) 11 'I'ank In Use" means an underground storage tank which
is intended for the containment or dispensing of
petroleum products.
History Note: Statutory Aut:hority G.S. 143-215.94A;
143-215.94P; 143-215.94T
Eff. December 1, 1992
\
I:' :'.I
.'!
SECTION .0200 APPLICATION
15A NCAC 1K.0201 has been adopted as published in 7:8 NCR 828 as
follows:
.0201 ELIGIBILITY
For an owner of a commercial p etroleum underg round storao e tank
to be elig ible for .a loan from the Loan Fund to u pgrade or
re p lace that tank , all of the followin g criteria must be met.
ill The tank must be located in North Carolina and have been
in use on Jul y 1 , 1991.
J.21 The tank must be reg istered with the De p artment .
.Llj_ All annual o p erating fees req uired of the borrower
p ursuant to G.S. 143-215.94C must have been p aid.
l..tl The owner must have formall y a pp lied for a conventional
loan from his p rimar y bank for the sub j ect work , and must
have been den~ed based solel y on reasonable concerns with
res p ect to p otential liability for environmental
comp liance b y the lender , not financial reasons. The
owner must have q ualified for the loan in all other
res p ects using g enerall y acce p ted standards p revailing
amon g commercial lending institutions.
History Note: Statutory Authorit y •G.S. 143-215.94P ;
143-215.94T
Eff . December 1 , 1992
15A NCAC 1K.0202 has been adopted as published in 7:8 NCR 828 as
follows:
.0202 APPLICATION PROCEDURES
i..£1 Each a pp lication to the Loan Fund must be made throug h a
Bank that has entered into an a g reement with the De p artment to
act as an administrative a g enc y for the Loan Fund .
.iJ:2.1 Each a pp lication submitted to the Loan Fund must be made
on forms supplied b y the De p artment and must be accom p anied b y
the followin g :
..L1l A letter from the declining Bank stating the reason the
loan a pp lication was denied ;
111_ Su pporting financial statements ;
JJj_ A comp lete .sco p e of work for the u pgrade or re p lacement
of the tank (s ) which p rovides a descri p tion of the work
to be p erformed addressing each of the following three
categ ories according to the technical standards
s p ecified in 15A NCAC 2N:
_(Af Corrosion p rotection for tank (s ) and p i p ing,
J.1il S p ill and overfill p rotection and p revention c and
iQl Leak detection for tanks and p i p ing;
1tl A binding estimate for the sco p e of work. This work
ma y be p erformed b y .the borrower's own q ualified
construction p ersonnel; and
~ An y a pplicable fees req uired b y Parag rap h (b ) of Rule
.0401 of this Subchap ter.
_Ltl If the borrower p lans to use real estate where commercial
o etroleum underg round storag e tanks are located or were formerl y
located as collateral , a site assessment must be ·p erformed b y a
Professional Eng ineer or a Licensed Geolog ist ~s defined in G.S .
BSC-3 and G.S. 89E-3 , res p ectivel y, p rior to the submittal of the
a pp lication. The site assessment re p ort shall be attached to a
letter of certification stating whether the site has serious
contamination , and shall be submitted to the Bank with the
a pp lication.
1.91 In the event the borrower must use real estate where
commercial p etroleum underg round storag e tanks are not and have
not been located as collateral , the borrower must certify and
furnish evidence satisfactory to the Bank and in accordance with
all g enerall y accep ted p revailing standards commonl y used b y
banks , including those for .environmental comp liance , that the
real estate to be used would be acce p table as collateral.
History Note: Statutory Authorit y G.S. 143-215.94C ;
143-215.94~; 143-21~-.94T
Eff. December 1 , 1992
.0300 LOAN ADMINISTRATION
15A NCAC 1K.0301 has been adopted as published in 7:8 NCR 828 as
follows:
.0301 BANK ELIGIBILITY
ill Each Bank in North Carolina will be invited to p artici p ate
in the Loan Fund p rog ram. Accep tance of a letter of a g reement
with the Dep artment will q ualif y the Bank to p artici p ate in the
administration of the Loan Fund.
ill For the p ur p oses of p roviding loans from the Loan Fund ,
Banks will act onl y as administrative a q encies for the Dep artment
and , if acting within the terms of the a g reement with the
De p artment , do not incur an y financial or environmental liability
associated with loans from the Loan Fund .
Histor y Note: Statutory Authorit y G.S. 143-215.94P
Eff. December 1 , 1992
\
i
15A NCAC 1K.0302 has been adopted with changes as published in
7:8 NCR 828-829 as follows:·
.0302 LOAN PROCESSING BY BANKS
(a) Banks will utilize any rules and guidelines adopted and
established by the Department. These rules and guidelines will
complement generally accepted standards prevailing among banks
and relating to commercial loans.
(b) Banks will receive and process loan applications.
(c) Banks will gather and process all necessary documents.
(d) Banks will receive monthly payments from borrowers,
maintain records, and deposit payment amounts daily to a
designated account of the State Treasurer afte~ deduction of
fees.
(e) Banks will maintain all original loan documents until the
loan is satisfied.
(f) The Bank will forward one copy of each of the following
documents to the Coordinator:
(1) the Loan Application;
(2) the Bank letter explaining the reasons for denial;
(3) financial statements;
(4) credit report;
(5) scope of work and binding cost estimate;
( 6) ·originating Bank's letter of certifications
certification; and
(7) site assessment report, if applicable, and if other
real property is used as collateral, the borrower's
certification and other evidence satisfactory to the
Bank that the property conforms with the applicable
Rules of this Subchapter.
(g) The Bank shall make a monthly report to the Coordinator of
each delinquent loan.
(h) Each Bank shall make all Loan Fund files available to
audit and review by the Coordinator, the Department, the
Petroleum Underground Storage Tank Funds Council, or other
authorized persons 6r agencies.
(i) The Bank shall notify the Borrower of the approval or
denial of the loan application.
History Note: Statutory Authority G.S. 143-215.94P
Eff. December 1, 1992
15A NCAC lK.0303 has been adopted as published in 7:8 NCR 829 as
follows:
.0303 DUTIES OF THE LOAN FUND COORDINATOR
lA.l The Coordinator is res p onsible for coordinating Bank and
De p artment activities relative to all loans under the Loan Fund.
i!1l The Coordinator is res p onsible for determining the
followin g :
..L1l whether all re q uired annual o p erating fees have been
paid;
ill_ whether the a pp lication exceeds allowable amounts for
fundin g p ursuant to Parag ra p hs (c ), (d ), and (e ) of
Rule .0102 of this Subchap ter.
ill_ whether there are sufficient funds available in the
Loan Fund; and
ill whether the a p .olication has been comp leted in
accordance with this Subchap ter.
l£l If the Coordinator finds that the loan cannot be funded ,
he shall notif y the Bank of the reasons that the loan cannot be
funded.
ifil The Coordinator shall kee p co p ies of all comp leted loan
documents.
J..tl The Coordinator shall make a q uarterl y re p ort to the
De p artment and the Petroleum Underaround Storag e Tank Funds
Council indicating the followin g :
(1 ) The number an<l amount of loan commitments ;
(2 ) Available funds to be lent ;
( 3 ) Amount lent to ea,ch borrower ;
(4 ) Amount lent b y each bank ; and
(5 ) The followin g information for each loan:
(A ) Name of Borrower ;
{B ) Ori g inating Bank ;
(C ) Amount of Loan ;
J.Ql Whether loan is for u pgrade or for re p lacement ;
and
lfil. Status of loan.
ill The Coordinator shail make .the Loan Fund files available
to audit and review b y the De p artment , the Petroleum Underg round
Storag e Tank Funds Council , or other authorized p ersons or
a g encies.
History Note: Statutor y Authorit y G.S. 143~215.940 (9);
143-:-215.94P
Eff. December 1 , 1992
15A NCAC 1K.0304 has been adopted as published in 7:8 NCR 829 as
follows:
.0304 LOAN APPROVAL CRITERIA
hl Before a loan ma y be funded , all supp orting materials must
have been received and reviewed b y the Bank administering the
loan.
ill Elig ibility for the loan shall be determined in accordance
with Rules .0102 and .0201 of this Subcha p ter.
ill If real estate where commercial p etroleum underg round
storag e tanks are located is to be used as collateral , the site
assessment must show that no serious contamination exists. Other
real estate ma y onl y be used as collateral considering all
g enerall y acce p ted p revailing standards commonl y used b y banks ,
including those for environmental com p liance .
. lfil Banks will a pp;rove or disapprove loans from the Loan Fund
based on g enerall y acce p ted commercial bank loan standards
including those for considering the a ppraised value of an y real
estate used for collateral.
History Note: Statutory Authority G.S. 143-215.94P
Eff. December 1 , 1992
15A NCAC 1K.0305 has been adopted as published in 7:8 NCR 829 as
follows:
.0305 DELINQUENT ACCOUNTS
ill For a loan made in accordance with this Subchap ter , a loan
is delinq uent when the p a y ment is over 30 da y s in arrears.
J.hl Banks are res p onsible for p lacing one tele p hone call and
one certified letter to an y borrower whose account is .delinq uent .
icl If a loan account remains delinq uent , Banks .will forward
notice of the delinq uent account to the Loan Coordinator 30 davs
after the p lacing of the telep hone call or the mailing of the
certified letter.
Histor y Note: Statutory Authority G.S. 143-215 .94P
Eff. December 1 , 1992
.0400 LOAN CONDITIONS
15A NCAC 1K.0401 has been adopted with changes as published in
7:8 NCR 830 as follows:
.0401 LOAN ADMINISTRATION FEES AND COSTS
(a) All fees ahd administrative costs associated with
processing and servicing a loan are to be paid by the borrower.
(b) The borrower shall pay to the Bank at the time the loan
application is submitted, fees for a credit report and for an
appraisal if real property must be used for collateral. Fees for
title insurance, recording, and other closing costs shall be paid
by the borrower as applicable.
(c) A loan origination fee equal to the greater of seven
hundred fifty dollars ($750.00) or one percent of the loan amount
shall be paid to the Bank by the borrower upon approval of the
loan.
(d) A loan servicing fee equal to the greater of fifty dollars
($50.00) or one-twelfth of one percent per month of the
outstanding loin balance ~ill be retained by the Bank from each
monthly payment.
(e) All coordination costs of the loan fund shall be paid out
~ The interest on loans that is received by the Department may
be used to p a y coordination costs of the Loan Fund.
History Note: Statutory Authority G.S. 143-215.94P
Eff. December 1, 1992
15A NCAC 1K.0402 has been adopted as published in 7:8 NCR 830 as
follows:
.0402 INTEREST AND TERM
..uu_ All loans made in accordance with this Subchap ter shall
use a variable interest rate. The interest rate shall be the New
York Prime Rate , as rep orted in the Wall Street Journal , p lus
three p ercent. This rate includes the loan fees s p ecified in
Parag rap hs ( d ) and ( e ) of Rule •.0401 of this Subchap ter.
1hl The term of each loan shall not exceed 120 months.
History Note: Statutory Authorit y G.S. 143-215.94P
Eff. December 1 , 1992
15A NCAC 1K.0403 has been adopted as published in 7:8 NCR 830 as
follows:
.0403 ADDITIONAL CONDITIONS
ill Loans made in accordance with this Subchap ter ma y be for
the full amount or an y p art of the cost of the u pgrade or
rep lacement.
ill Based on borrower's financial ability and in accordance
with g enerally acce p ted banking staridards , p ersonal a uaranties
ma y be req uired from borrower , s p ouse , and other owners of the
borrower's business.
kl Based on borrower's financial ability and in accordance
with g enerall y acce p ted banking standards , sufficient collateral
to secure the loan ma y be req uired.
ill An y subse q uent owner of the business or commercial
p etroleum underg round storag e tanks , ma y a pp l y to assume the
outstanding loan. A bank ma y authorize an assump tion b y a
subseq uent owner onl y in accordance with g enerally acce p ted
p revailing standards commonly used b y banks for assump tions of
commercial loans .
Histor y Note: Statutor y Authorit y G.S. 143-215.94P
Eff. December 1 , 1992
15A NCAC 1K.0404 has been adopted as published in 7:8 NCR 830 as
follows:
.0404 FUNDING OF LOAN
_{fil Following a pproval of the loan , loan checks will be made
p a y able to the borrower and the contractor (s ) p erforrnihg the work
after the followin g is p rovided to the Bank:
.ill A com p leted co py of "Notification For All Underg round
Storag e Tanks (New & Upgraded )" '(Form GW /UST-8 ) stating
all work was comp leted in accordance with technical
re q uirements of 15A NCAC 2N. This form is available
from the De p artment ; and
(2 ) Co p ies 6f itemized invoices.
ihl Loan commitments shall be made for p eriods u p to six
months.
History Note: Statutory Authorit y G .S. 143-215.94P ;
143-215.94T
Eff. December 1 , 1992
\
Mr. Milton Alford
Page Two
April 22, 1992
Effects on State Revenues
The monies for loans to be made under the proposed
rules are contained within the Groundwater Protection Loan
Fund. Pursuant to G.S. 105-445, the revenue for this fund
is derived from $0. 25 of the excise tax on motor fuel
collected pursuant to G.S. 105-434(a) for the period January
1, 1992 through December 31, 1994 .. Based on projections of
these revenues by the Department of Revenue, approximately
$29,000,000 are expected to be available for loans. All
administrative costs and fees are to be paid by the
borrowers, as specified in 143-215.94P(c). DEHNR expects
that virtually all of the available monies will be
distributed as loans; any unused monies and all subsequent
income from loans will go to the Commercial Leaking
Petroleum Underground Storage Tank Cleanup Fund in
accordance with G.S. 143-215.94P(d}. These rules require
the creation of the position of Loan Fund Coordinator
(either a DEHNR employee or a contractor) who will monitor
available loans and revenues to insure that loan commitments
do not exceed available funds.
Effect on Local Revenues
Local governments may be able to qualify for loans from
the Groundwater Protection Loan Fund. Any loans made to
local governments under this program will be subject to
terms and interest rates that are the same as for any other
borrower. These rules specify those terms and interest
rates.
cc: Ms. Carol Shaw, Fiscal Research Division
N.C. Association of County Commissioners
N.C. League of Municipalities
Perry Nelson
Burrie Boshoff
Portia Rochelle
* * * * * * * * * * * * * * * * * *
Notice is hereby given in accordance with G.S.
JSOB-21.2 that the DEM-Groundwater Section
intends to adopt rule(s) cited as /SA NCAC 2P
.0/0/ -.0/03, .020/ -.0202, .030/ -.0302, .040/
-.0407.
The proposed effective date of this action is No-
vember I, /992.
The public hearing will be conducted on the fol-
lowing dates and locations:
NEW BERN
July 7, /992
7:00 p.m.
Superior Court, 2nd Floor
Craven County Courthouse
RALEIGH
July 9, 1992
7:00 p.m.
Ground Floor Hearing Room
Archdale Building
5/ 2 N. Salisbury Street
HICKORY
July /3, /992
7:00 p,m.
Auditorium
Catawba Valley
Community College
Reason for Proposed Action: The proposed
rules enable the operation of the commercial and
non-commercial leaking petroleum underground
storage tank cleanup funds. The rules set forth
conditions and procedures for reimbursement of
cost for environmental damage cleanup, bodily in-
jury, or property damage resulting from the re-
lease of petroleum from an underground storage
tank. Rules for the collection of annual fees are
also included.
Comment Procedures: All persons interested in
these matters are invited to attend the public
hearing. Written comments may be presented at
the public hearing or submitted through July 15,
/992. Please submit comments to ,Hr. David
Hance, Division of Emironmental Management.
Groundwater Section, P.O. Box 29535, · Raleigh,
NC 27626-0535, (9/9) 733-322/. Please notify
Mr. Hance prior to the public hearing ifyou desire
to speak. _ Oral presentation lengths may be lim 0
ited depending on the number of people that ·wish
to speak at the public hearing. ·
IT IS VERY I\IPORTAi\T THAT ALL E\TER-
ESTED· A\'D POTE:\TIALLY AFFECTED PER-
SO:\S, GROCPS, BLS['\ESSES, ASSO-
CIATIOi\S, l:\STITUTIO:"IS OR AGEi\CIES
i\lAKE THEIR VIEWS AND OPI\'IOi\S KNOW:\1
TO THE DEPART\.tEi\T THROUGH THE PlJB-
LIC HEARING Ai\D COM\1ENT PROCESS,
WHETHER THEY SLPPORT OR OPPOSE Al\"V
OR ALL PROVISIO:'\S OF THE PROPOSED
RULES.
Ftscal Note: These Rules affect the expenditures
or revenues of local funds. A fiscal note was sub-
mitted to the Fiscal Research Division on May 6,
/992, OSBM on May 6, /992, N.C. League of
J,,-funicipalities on May 7, /992, and N.C. Associ-
ation of County Commissioners on May 7, /992.
SUBCHAPTER 2P -LEAKING PETROLELM
UNDERGROUND STORAGE TANK CLEAJ\UP
FUNDS
SECTION .0l00 -GENERAL CD'.'ISIDERATIONS
.0101 -GENERAL
~ The purpose of this Subchapter ~ to es-
tablish criteria and procedures for the reimburse-
ment of costs incurred 2Y owners and o perators
from the Leaking Petroleum Undergr ound Stor-
~ Tank Cleanup Funds. . -. -. -
{Ql The Groundwater Section of the Dms10n
of Environmental Management of the Depart-
ment of Environment , Health, and 1'atural Re-
sources shall administer the Commercial and
1'oncomm~ial Underground Storage Tank
Cleanup Funds for the State of ~forth Carolina.
!fl Staff of the Division of Environmental
Management shall conduct .inspections and !!:_
view records ~ necessary to assure comp liance
with this Subchapter.
@. As authorized QY G.S. 143-215.94G . the
De partment !!§Y engage in cleanup work !!
deems appropriate and ~ the costs from the
~oncommercial Fund in accordance with G.S.
143-215.94D.
~ The De partment may engage in investi-
gations and cleanups in accordance with ~ prior-
itv ranking system and the availabilitv of
resources as detennined bv the Division. ==-==---
Statutory Authority G.S. /43-2 I 5.94£;
/43--2 I 5. 94G; /43-2 I 5.94L.
.OIOZ COPIES OF RULES
I:\CORPORATEO BY REFERE:\CE
~ Copies of applicable sections of Suhcha pter
2:--.' of Title 15A. '.\orth Carolina Administrative
Code incorp~d bv reference in this Subchap -
ter. includim?. anv subse q uent amendments and
editions. are available for puhlic im r cction at
De partment of Em·ironment, Health. and '-.:a-
tural Resources Recional Offices. Thcv arc:
ill Asheville Regional Office, Interchan ge
Building, 59 Woodfin Place, Asheville.
North Carolina 2880 l;
ill Winston-Salem Regional Office, Suite 100,
8025 North Point Boulevard , Winston-
Salem, North Carolina 27106;
Lll Mooresville Regional Office, 919 North
Main Street, Mooresville , North Carolina
28115;
{11 Raleigh Regional Office, 3800 Barrett
Drive, Post Office Box 27687 1 Raleigh,
North Carolina 27611;
ill Fayetteville Regional Office, Wachovia
Building, Suite 7 I 4, Fayetteville . North
Carolina 2830 l;
{21 Washingt on Regional Office, 1424
Carolina Avenue, Farish Building,
Washin gt on , North Carolina 27889;
ill Wilmingt on Regional Office, 127 Cardinal
Drive Extension , Wilmington , North
Carolina 28405.
{hl Copies of such regulations can be made at
these regional offices for ten cents ($0 .10) ~
~
Statutory Authority G.S. 12-3./(c); 143-215.94£;
l43-2l5.94L.
.0103 FALSE OR MISLEADING
l:\FORMATIOl\
Any owner Q! operator or authorized agent who
knowingly submits ~ false or misleadin g infor-
mation with regard to these Rules may be con-
sidered to be contributin g to i!_ discharge,
interfering with the miti gation of i!_ discharge , Q!
preventing the early detection of i!_ discharge
p ursuant to G.S. 143-215.94E{g)(l ) !f the false
or misleading information results in delay of any
efforts to stop the release or discharn e , results in
delay of detection of~ portion of the discharge
or release, Q! results in delay of investigatory Q!
remedial activities.
Statutory Authority G.S . /43-215.94£;
/43s2/5 .94L.
SECTION .0200 -PROGRA\I SCOPE
.0201 APPLICABILITY
W This Subchapter shall ~ to the dis-
bursement of funds from the Commercial Leak-
!Qg Petroleum lJ~ound Storage Tank
Cleanup Fund and :-.:oncommercial Leaking Pe-
troleum Lndergr ound Stora2e Tank Cleanup
Fund . and to the collection of annual operating
fees .
{hl Anv portions of this Suhcha ptcr which
concern annual tank o peratirnr fees i!12PlY to all
owners and o perators of Comi11ercial Cnder-
e:round Stora!!c Tanks that ha,·e heen in use in
:\orth Carolina on or after .lmrv 1_ 1989-:--
{9 This Subcha pter shall ~ to discharges
or releases from noncommercial or commercial
undergr ound storage tank svstem~ re gardless of
whether such systems are regu lated under Sub-
chapter 2N of Title I SA, of the North Carolina
Administrative Code.
Statutory Authority G .S. 143-215.94£;
/43-2/5.94L.
.0202 DEFl'.'iITIONS
W The definitions for "Criteria and Standards
Applicable to Underground Storage Tanks"
contained in 15A NCAC 2N .0203 ~ hereby
inco rp orated QY reference includin l! subseq uent
amendments and editions, except that for the
putposes of this Subchapter, the definition of
"Underground Storage Tank" shall be as defined
in Subparagraph {hlill)_ of this Rule .
(Q1 The following terms ~ defined for ~ in
this Subchapter:
ill "Annual operating fee" ~ !!!! annual fee
required to be paid to the De p artment Qi'.
the ~ or operator of each commercial
underground storage tank in use on or af-
ter ! January of the year. beginning with
1989.
ill "Commission" means the Environmental
Management Commission as organized
under Chapter 143B of the General Stat-
utes.
Lll "Department" means Department of En-
vironment , Health, and Natural Re-
sources.
ill "Discovered release" means ~ release
which !!!! owner Q! o perator , Q!: its em-
ployee or agent I has been made aware 2L,
has been notified 2L, Q!: has ~ reasonable .
basis for knowing has occurred. ~ 1 I
ill "Dual usage tank" means an undergr ound
storage tank which could be considered
both a commercial unde n rr ound storage
tank and a noncommercial undergr ound
storage tarik and for which both the com-
mercial and the noncommercial usages are
integral to the o peration or existence of
the tank.
ill -..Household " ~ i!_ permanent struc-
ture, whether free-standin g or connected
to other units. used for living, where pri-
~ living space and primary food ~
aration facilities are controlled or
mamtained QY -the residents.'
"Household" includes simtle-famil v
houses, a partments. and single living
units, v.·hether or not the residents arc re-
lated to each other. "Hou sehold" docs
not include domutorie s . hos pitals . hotels .
motels . a partment buildings ~ distin ct
from the indi,·idual a partments therein).
or other multiple dwdlin!!. structures . The
term "four or fewer households" shall re-
late tounderground storage tanks serving
households only.
ill "Occurrence" ~ one or more
release(s) that result(s) in ~ single plume
of soil, surface water, and/or groundwater
contamination ( consisting of free product
and/or dissolved contaminants exceedin g
standards specified in 15A NCAC 2L or
any other applicable laws, rules or ~
lations) emanating from ~ given site .
(.fil "Reasonable and necessary expendi-
tures" means exp enditures for cleanup
work p erformed in accordance with i!P..:.
plicable environmental laws and ~
lations and which is essential in
deterrniningthe extent of contamination,
in conducting release response or remedi-
ation, or which compensates third parties
for resulting bodily injury and property
. damage. The Commission shall consider
such expenditures reasonable and ~
~ to the extent that they are sufficiently
documented , c!!:._e performed in an efficient
manner considering comp arable costs for
labor, equipment, and materials , and uti-
lize cost-efficient methods.
{21 -"Substantive law, rule, or regulation"
shall mean any law, rule, or regulation re-
quiring ~ ~ or operator to perform
any act necessary and essential in pre-
venting discharges or releases, in facilitat-
~ their early detection , and in mitigating
the impact of discharges or releases.
UQl "Tank in operation" ~ !!!! under-
ground storage tank into which product
~ added or from which product ~ !!.:
moved for purposes other than closure.
Ull "Tank in use" ~ !!!! underground
storage tank intended for the containment
or dispensing of p etroleum product.
@ "Underground storage tank", as used in
this Subchap ter ~ ~ Commercial
or Noncommercial Undergr ound Storage
Tank as defined in G.S. 143-215.94A. A
dual usage tank ~ considered to be~·
Commercial underground storage tank .
Statutory Authority G.S. 143-2 l 5.94£;
143-215.94L.
SECTION .oJ00 -A:\:\LJAL OPERATl'IG FEES
.0301 HES A:\D PAY"E:\T
W The owner or operator of each commercial
undenrround storage tank shall ~ all annual
tank operating fees due for that underground
storage tank.
f.hl The Division shall send an invoice. for the
amount of the annual o r crating fees due. to the
owner or o pe rator of~ commercial p etroleum
undergr ound ~ tank in use on January ! of
the · year and which has been re e:i stered with the
De p artment. The annual o pe rating fee shall be
due and payable 30 days following the date of the
invoice and shall be submitted to the Division
accordin~ ---- -
1£1 Anv owner or operator not receiYing an
invoice for annual operating fees shall still ~
any fees due accordin g to the followin ~ schedule :
ill !f the owner or operator has paid annual
operating fees for the subject tank in pre-
vious years, the payment will be submit-
ted to the Division within 30 days of the
anniversary of the last invoicing date for
the fees.
(ll !f the owner or operator has not previ-
ously paid annual operating fees for the
subject tank, '!!!Y. annual operating fee ~
due on l January of that year and shall
be submitted to the Division accordincl v.
@ Any commercial undergr ound storage tank
( except commercial undergr mmd storage tanks
not regulated under 15A NCAC 2N) which~
in operation on or after December ~ 1988 and
has not been permanently closed in accordance
with 15A NCAC 2N .0800 is considered to be in
use.
(£1 Anv annual operating fee due on or after
January 1. 1992, that ~ not paid within JO days
of the due date shall be subject to a late penalty
of five dollars ($5.00) ~ ~ ~ to an amount
equal to the original fee. The late penalty will
be assessed based Q!! the date of receipt of fee
payment QY. the Division.
ffi All annual operating fees due for any year
are assessed in accordance with the schedule of
fees in effect during that year. Pavment of fees
due for a prior year will be at the rate in effect
during that prior year. !!. ~ the res ponsibilitv of
the ™I or operator to determine that all fees
have been paid in accordance with Paragraph ta:}.
of this Rule.
-{gl-:-ln the event that an annual operating fee
was paid for a tank for which a fee was not re-
quired, ~ refund of that fee payment ~ be re-
quested Q.Y the owner or o p erator. The owner
or operator must provide ade q uate documenta-
tion that the tank ~ exempt from the require-
ment to ~ the annual o p erating fee. ·
Statutory Authority G.S. 143-2/5.94£;
143-215 .94L.
.0302 ;\OTIFICATIO:\
Anv person transferring ownershi p of i! com-
mercial underground storage tank shall pro\·ide
written notification to the DiYision of this action
within 30 davs of th~ date of transl~. ~his no-
tification must indicate the follO\\·ing:
ill '.\ame and address of the previom m, ncr
and the new oi.rncr: -------
ill Name, identification number, and street
address of the facility;
ffi Date of transfer;
{11 Signatures of the transfenin g owner and the
~ owner 2! their authorized re presen-
tatives. ---
Statutory Authority G.S. /43-2/5.94L;
/43-2/5.94T.
SECTION .0400 -REIMBURSEMENT
PROCEOL'RE
. 0401 ELIGIBILITY OF OWNER OR
OPERATOR
~ Date of Release:
ill An ~ 2! operator of !! commercial
undergr ound storage tank ~ not eligible
for reimbursement for costs related to re-
leases which were dISCovered prior to June
~ 1988.
ill An ~ Q! operator of!! noncommercial
underground storage tank ~ eligible for
reimbursement for costs without regard to
the date a release is discovered. m An owner or operator of !! commercial
undenrr ound storage tank, from which !!
release ~ discovered on or after July J.i
1991, ~ not eligible for reimbursement !f
the tank had been removed from the
grouncimore than 120 days prior to the
date of discovery of the release.
{Ql An ~ 2! operator of!! commercial
undere:r ound storage tank ~ not eligible for ~
imbursement for costs related to releases g !!!!Y
annual operating fees due have not been paid in
accordance with Rule .0301 of this Subchap ter
prior to discove ry .
{£1 An ~ Q! operator of !! commercial Q!
noncommercial undergr ound storage tank ~ not
eligible for reimbursement of any expended costs
which are in excess of the amount determined
~ahle in accordance with Rule .0402, and
which are not necessa rv in perfonning cleanup
of environmental damage and in compensating
third parties for bodilv injurv and property dam-
~ and which are less than any deductible es-
tablished for the appropriate fund.
@ An owner or operator of !! commercial Q!
noncommercial undenrround storage tank may
be reimbursed for elicible costs only after sub-
mittal of !! written application to the Division .
on forms provided bv the Division. and which
includes anv information and documentation
neccssarv ~ determine clicibility and to deter-
mine that any expended costs are r~nable and
nccessarv.
~ An mvner or operator of !! commercial or
noncommercial underground storage tank shall
not be cli!!ibk for reimbursement for costs related
to rcicases !f the mrnn or opcratm has \\T!Tiuily
violated ~ substantive law, rule, or regulation
applicable to undergr ound storage tanks intended
to prevent, mitigate, or facilitate the early de-
tection of discharges Q!: releases.
ffi The release response and corrective action
re q uirements of~ rules of the Commission and
of any statute administered QY_ the De p artment
shall not in !!!!I way be construed as limited Q.Y,_
or contin gent upon, !!!!I reimbursement from ei-
ther the Noncommercial Fund or the Commer-
cial Fund. ----
Statucory Authority G.S . /43-2/5.94£;
/43-2/5.94L.
.0402 CLEANUP COSTS
W In detennining whether costs ex pended QY_
an owner or operator are reasonable and neces-
~ the Division shall consider the following:
ill Adequacy and cost-effectiveness of any
work perfonned and technical activity
utilized QY the ~ or o perator in per-
forming release response, site assessment
and corrective action.
ill Typical billing rates of engineering,
geological, or other environmental ~
suiting firms providing similar services in
the State as determined 2Y the Division.
ill Typical rental rates for any necessa rv
equipment as determined QY. the Division.
The amount reimbursed for equipment
rental shall not exceed the typical pur-
chase price of such equipment.
ill Typical costs or rates of i!!!J'. other neces-
gry service, labor Q! expense as deter-
mined 2Y the Division.
{Ql Expenditures not eligible for reimbursement
shall include the followin g:
ill Costs of the removal and disposal of
noncommercial undergr ound storage
tanks and contents removed on or after
July 1. 1991, and of commercral under-
ground storage tanks and contents re-
moved on or after January 1. 1992;
ill Costs of the re placement of ~ under-
ground storage tank, P!P!!!&. fitting, or
ancillary equipment;
ill Costs incurred in preparation of any pro-
posals to perform work for environmental
cleanup;
{11 Interest Q!! !!!!Y accounts. loans, etc.;
ill Ex penses charged 2I the ~ or opera-
tor in the processin g and mana!!ement of
!! reimbursement application or subse-
quent claims;
ill Attornev's fees;
ill Penalties , ~ and fines assessed bY ~
court or agencv;
ill Loss of profits, fees. and ~ incurred
bv the owner or o perator:
ill Any other ex penses not specifically related
to environmental cleanup, or im plemen-
tation of a cost effective environmental
cleanup~ or third ~ bodily injury or
property damage .
Statutory Authority G.S. 143-215.94B;
143-215.94D; 143-215.94£; 143-215.94L.
. 0403 THIRD PARTY CLAI:VIS
{fil An owner or operator seeking reiml>urse-
ment from the appropriate fund for ~ third
~ claim for bodily injury or property damage
must notify the Division of~ such claim. The
~ or operator must provide the Division
with all pleadings and other related documents !f
!!_ lawsuit has been filed. The ~ or operator
shall provide to the Division copies of ~ med-
ical reports, statements , investigative reportsi gr .
certifications from licensed professionals ~
~ to determine that ! claim for bodily injury
or property damage~ reasonable and necessary .
lli} The term third ~ bodily injury ~
specific physical bodily injury proximately !!.:
suiting from exp osure , explosion, Q! fire caused
QY the presence of !! petroleum release and which
i§. incurred QY ~ person other than the ~ or
operator, 2! employees or agents of an~ or
o perator.
{£)_ · The term third ~ property damage
~ actual physical damage Q! damage due to
specific loss of normal ~ of property owned QY
!!_ person other than the ~ Q! operator of ~
undergr ound storage tank from which !! release
has occurred. A property ~ shall not be
considered !!_ third ~ !f the property was
transferred QY the ~ . 2£ operator of an
underground storage tank in · antici pation of
damage due to !! release. Third ~ property
damage shall be reimbursed from the appropriate
fund based on the rental costs of com p arable
property during the period of loss of ~ !!£ to !!_
maximum amount equal to the fair market value .
In the ~ of property that ~ actually destro yed
as !!_ result of ii, petroleum release, reimbursement
shall be at an amount neceSS!ty to replace or re-
pair the destroved property.
Statutory Authority G.S. 143-215.94B;
143-215.94D; 143-215.94£; 143-215.94L.
.0404 REQUESTS FOR REL\IBURSEME'.'\T
!.!)_ An application for reimbursement -must be
made on !!_ form provided br the Division . The
application form must accom pan v the initial re -
imbursement request.
{Ql A request for reimbursement shall include
copies of ~ documentation required bv the
Division to determine that expended costs are
reasonable anJ nec essarv . Proof of pa,·ment
must accom p::inv ~ request for reimbur sement .
except when reimbursement will be made jointly
to the owner or operator and either !!_ provider
of service or! third partv claimant. The Division
may require the owner or operator to submit ~
information required for the purpose of substan-
tiating ~ claim for reimbursement on forms
provided QY the Division.
{£)_ ~ request for reimbursement may be ~
turned or additional information re q uested by the
Division , if!! h found to be incom plete .
@ The Division shall reimburse ~ owner or
operator for expenses followin g comp letion of
any significant phase of cleanup work or in ac-
cordance with the schedule allowed QY G .S:
143-215 .94E (e ).
~ !f !!.!!Y. amount approved for reimbursement
is less than the amount of reimbursement re-
quested, the Thvision shall issue !! written expla-
nation of why the amount ·requested was not
a p proved:
Statutory Authority G .S. /43-2/5.94£;
143-215.94L.
.0405 METHOD OF RElMBlRSEMENT
{fil Reimbursement for cleanup costs shall be
made only to ~ owner or operator of !! petro-
leum underground · storage tank, or jointly to an
owner or o perator and i!_ provider of service.
lli} Reimbursement of cleanup costs to the
~ or operator shall be made only after proof
of payment for such costs has been received QY
the Division.
{£)_ Joint reimbursement of cleanup costs shall
be made to an ~ or o perator and !!_ p rovider
of service only upon receipt of !!_ written agree-
ment acknowledged QY both parties . MY ~
imbursement check shall be sent directlv to the
owner Q! o perator.
@ Pa yment of third party claims shall be made
to the ~ or operator, or jointly to the ~
or operator and the third partv claimant.
Statutory Authority G .S . 143-215 .94£;
143-2/5.94L.
.0406 REli\lBlRSE\IE'.'T APPORTlO:\:\IE:'\T
{.!)_ Where multiple occurrences are addressed
in !! single cleanup action, ex penses will be reim-
bursed based on a pportionment among the oc-
currences . The method of apportionment will
be as follows:
-ill Ex pe nses related directlv to !!_ p articular
occurrence shall be applied onlv-to that
occurrence:
ffi Expenses that are related to more than ~
occurrence will be a pp ortioned equally
among the occurrences.
{Ql \Vhcre annual opera tinsr fees due have not
been paid on all undcnrround storage tanks con-
tributing to an occurrence . reimburscm~nt will
be made at a rate equal to the number of tanks
contributine. to the occurrence for which all an-
nual operating fees due have been paid divided
QY the total number of tanks contributing to the
occurrence.
(£1 !f multiple unden rr ound storage tanks at ~
single site are contributing to i! single occurrence
and the tanks ~ owned or operated QY different
persons, reimbursement may be made to any of
the owners or operators ~ ![ the occurrence were
caused solely Qy that person's underground stor-
~ tanks.
Statutory Authority G.S. /43-2/5.94£;
/43-2!5.94L.
• 0407 FIN AL ACTION
~ The Director, or his delegate, shall make!
final decision on ! written application for eligi-
bility for reimbursement from the appropriate
fund. The Director. or his delegate. shall make
~ final decision on ~ written requestfor re-
imbursement made subse q uent to an initial ~
p lication.
lli). An ~ or operator who has been denied
eligibility for reimbursement from the appropri-
ate fund after submittal of a written application
in accordance with the proceduresof this Sub-
chapter, or who has had ~ written reimburse-
ment request denied after submittal in accordance
with the procedures of this Subchapter , shall be
notified of the tighl to petition for !! contested
case in the Office of Administrative Hearin gs in
~rdanCT with the p rocedure set out in G.S.
150B-23 .
Statutory Authority G.S. /43-215.94£;
/43-2!5.94L.
•·
Public Hearing Registration Form
(Legibly print. please I)
/ le :"-6 ... ,, ~ Hearing --~____;_____,;;:;;...__ ________________ Date ~Q_~-----~---
Please furnish the Inf ormatlon requested below and Indicate whether you wish to be heard during this
public hearing. This Information Is necessary In order that you be given an opportunity to speak and so
that your name and affiliation wlll be correctly entered In the hearing record.
Name ~2:\a vr_~9 ~1,tJL.,,1 Tltle CNV', Spec .
Employer/Represelt;ng _ _____.IV.____C_l"'-~-~--_,,_. ______________ _
)O(J n~✓ ~ .,,-l q Mailing Address _ __,__ ___ t_:::tl'---;'1~.___-~_u_~_ •....£L _____________ _
City and State ------'--/?-----'AC....:..../4'---'--t!"--" .,,' ..,__,:t,"'--'' '----'--I\/-~_-_· __ 7
Zip Code _:i._. '"1_(.._z.,_z.._. ---
Yfil ~
~~ you wish to be heard? If your presentation will exceed three minutes, please submit
three copies of your statement to the hearing clerk along with this registration form.
~ Do you wish to receive a copy of regulations, If any, resulting from this hearing?
Division of Environmental Management,
North Carolina Department of Environment. Health, and Natural Resources
Public Hearing Registration Form
(Legibly print. please!)
Hearing ---'----J_____,___/( __ G_Ja_ill_vAJ_~_iuJ__;IJT._c'J'c_-'-~-w=_':T._-e-._-Ln_,:;._w_lo._~_N------'h---'v:;_;.w~>ac.__ Date __ 8'.....,/~t ....,..)_9_2., __ _
I I
Please furnish the Information requested below and Indicate whether you wish to be heard during this
public hearing. This Information Is necessary In order that you be given an opportunity to speak and so
that your name and affiliation wlll be correctly entered In the hearing record.
Name :::;;ic;~ ~,4..;~j).. Title 8,vv,;O'Mrrl J?~rl>L ~LB---s
Employer/Representing __ Sp ___ '/J_J_C_o __ e,_· _,,r.,J_v,_~_/4/_dl_lrlv_'T._rl-_L ___________ _
Mailing Address __ /_3_d _ _;_A_e._,,cJ_m_t9_/2_C_· _h_R._~ __ S:_o_J7:._e __ l _l _2.. __________ _
City and State &L-e-1t:::/I , P c__ Zip Code __ 2-_7_t _o_3 ___ _
Yfil ~
.i_ Do you wish to be heard? If your presentation will exceed three minutes, please submit
three copies of your statement to the hearing clerk along with this registration form.
1 Do you wish to receive a copy of regulations, If any, resulting from this hearing?
Division of Environmental Management ,
North Carolina Department of Environment , Health, and Natural Resources