{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/62.1-44.34_16.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/62.1-44.34_16.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/62.1-44.34_16.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/62.1-44.34_16.html"}],"law_id":62684,"edition_id":1,"section_id":62684,"structure_id":14927,"section_number":"62.1-44.34:16","catch_line":"Financial responsibility for vessels and facilities","history":"1990, c. 917; 1992, cc. 456, 819; 1993, c. 375; 1994, c. 196; 1999, c. 91; 2004, c. 276.","full_text":"A\n\nThe operator of any tank vessel entering upon state waters shall have a Certificate of Financial Responsibility approved by the U.S. Coast Guard pursuant to § 4202 of the federal Oil Pollution Act of 1990 or shall deposit with the Board cash or its equivalent in the amount of $500 per gross ton of such vessel. Any such cash deposits received by the Board shall be held in escrow in the Virginia Petroleum Storage Tank Fund.B\n\nIf the Board determines that oil has been discharged in violation of this article or that there has been a substantial threat of such discharge from a vessel for which a cash deposit has been made, any amount held in escrow may be used to pay any fines, penalties or damages imposed under this chapter.C\n\nThe Board shall exempt an operator of a tank vessel from the cash deposit requirements specified in this section if the operator of the tank vessel provides evidence of financial responsibility pursuant to the terms and conditions of this subsection. The Board shall adopt requirements for operators of tank vessels for maintaining evidence of financial responsibility in an amount equivalent to the cash deposit which would be required for such tank vessel pursuant to this section.D\n\nThe Board is authorized to promulgate regulations requiring operators of facilities to demonstrate financial responsibility sufficient to comply with the requirements of this article as a condition of operation. Operators of facilities shall demonstrate financial responsibility based on the total storage capacity of all facilities operated within the Commonwealth. Regulations governing the amount of any financial responsibility required shall take into consideration the type, oil storage or handling capacity and location of a facility, the risk of a discharge of oil at that type of facility in the Commonwealth, the potential damage or injury to state waters or the impairment of their beneficial use that may result from a discharge at that type of facility, the potential cost of containment and cleanup at that type of facility, and the nature and degree of injury or interference with general health, welfare and property that may result from a discharge at that type of facility. In no instance shall the financial responsibility requirements for facilities exceed $.05 per gallon of aboveground storage capacity or $5 million for a pipeline. In no instance shall any financial test of self-insurance require the operator of a facility to demonstrate more than $1 of net worth for each dollar of required financial responsibility. If such net worth does not equal the required financial responsibility, then the operator shall demonstrate the minimum required amount by a combination of financial responsibility mechanisms in accordance with subsection E of this section. No governmental agency shall be required to comply with any such regulations.E\n\nFinancial responsibility may be demonstrated by self-insurance, insurance, guaranty or surety, or any other method approved by the Board, or any combination thereof, under the terms the Board may prescribe. To obtain an exemption from the cash deposit requirements under this section: the operator of a tank vessel and insurer, guarantor or surety shall appoint an agent for service of process in the Commonwealth; any insurer must be authorized by the Commonwealth to engage in the insurance business; and any instrument of insurance, guaranty or surety must provide that actions may be brought on such instrument of insurance, guaranty or surety directly against the insurer, guarantor or surety for any violation of this chapter by the operator up to, but not exceeding, the amount insured, guaranteed or otherwise pledged. An operator of a tank vessel or facility whose financial responsibility is accepted by the Board under this subsection shall notify the Board at least 30 days before the effective date of a change, expiration or cancellation of any instrument of insurance, guaranty or surety. Operators of facilities who are unable to demonstrate financial responsibility in the amounts established pursuant to subsection D may establish an insurance pool pursuant to the requirements of § 62.1-44.34:12 in order to demonstrate such financial responsibility.F\n\nAcceptance of proof of financial responsibility for tank vessels shall expire:1\n\nOne year from the date on which the Board exempts an operator from the cash deposit requirement based on evidence of self-insurance, except that the Board may establish by regulation a different expiration date for acceptance of evidence of self-insurance submitted by public agencies;2\n\nOn the effective date of any change in the operator’s instrument of insurance, guaranty or surety; or3\n\nUpon the expiration or cancellation of any instrument of insurance, guaranty or surety.\n\t\t\t\tApplication for renewal of acceptance of proof of financial responsibility shall be filed 30 days before the date of expiration.G\n\nOperators of facilities shall annually demonstrate and maintain evidence of financial responsibility for containment and cleanup in accordance with regulations adopted by the Board.H\n\nThe Board, after notice and opportunity for hearing, may revoke its acceptance of evidence of financial responsibility if it determines that:1\n\nAcceptance has been procured by fraud or misrepresentation; or2\n\nA change in circumstances has occurred that would warrant denial of acceptance of evidence of financial responsibility under this section or the requirements established by the Board pursuant to this section.I\n\nIt is not a defense to any action brought for failure to comply with the cash deposit requirement or to provide acceptable evidence of financial responsibility that the person charged believed in good faith that the tank vessel or facility or the operator of the tank vessel or facility had made the required cash deposit or possessed evidence of financial responsibility accepted by the Board.","order_by":null,"text":{"0":{"id":228559,"text":"The operator of any tank vessel entering upon state waters shall have a Certificate of Financial Responsibility approved by the U.S. Coast Guard pursuant to § 4202 of the federal Oil Pollution Act of 1990 or shall deposit with the Board cash or its equivalent in the amount of $500 per gross ton of such vessel. Any such cash deposits received by the Board shall be held in escrow in the Virginia Petroleum Storage Tank Fund.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":228560,"text":"If the Board determines that oil has been discharged in violation of this article or that there has been a substantial threat of such discharge from a vessel for which a cash deposit has been made, any amount held in escrow may be used to pay any fines, penalties or damages imposed under this chapter.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":228561,"text":"The Board shall exempt an operator of a tank vessel from the cash deposit requirements specified in this section if the operator of the tank vessel provides evidence of financial responsibility pursuant to the terms and conditions of this subsection. The Board shall adopt requirements for operators of tank vessels for maintaining evidence of financial responsibility in an amount equivalent to the cash deposit which would be required for such tank vessel pursuant to this section.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":228562,"text":"The Board is authorized to promulgate regulations requiring operators of facilities to demonstrate financial responsibility sufficient to comply with the requirements of this article as a condition of operation. Operators of facilities shall demonstrate financial responsibility based on the total storage capacity of all facilities operated within the Commonwealth. Regulations governing the amount of any financial responsibility required shall take into consideration the type, oil storage or handling capacity and location of a facility, the risk of a discharge of oil at that type of facility in the Commonwealth, the potential damage or injury to state waters or the impairment of their beneficial use that may result from a discharge at that type of facility, the potential cost of containment and cleanup at that type of facility, and the nature and degree of injury or interference with general health, welfare and property that may result from a discharge at that type of facility. In no instance shall the financial responsibility requirements for facilities exceed $.05 per gallon of aboveground storage capacity or $5 million for a pipeline. In no instance shall any financial test of self-insurance require the operator of a facility to demonstrate more than $1 of net worth for each dollar of required financial responsibility. If such net worth does not equal the required financial responsibility, then the operator shall demonstrate the minimum required amount by a combination of financial responsibility mechanisms in accordance with subsection E of this section. No governmental agency shall be required to comply with any such regulations.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":228563,"text":"Financial responsibility may be demonstrated by self-insurance, insurance, guaranty or surety, or any other method approved by the Board, or any combination thereof, under the terms the Board may prescribe. To obtain an exemption from the cash deposit requirements under this section: the operator of a tank vessel and insurer, guarantor or surety shall appoint an agent for service of process in the Commonwealth; any insurer must be authorized by the Commonwealth to engage in the insurance business; and any instrument of insurance, guaranty or surety must provide that actions may be brought on such instrument of insurance, guaranty or surety directly against the insurer, guarantor or surety for any violation of this chapter by the operator up to, but not exceeding, the amount insured, guaranteed or otherwise pledged. An operator of a tank vessel or facility whose financial responsibility is accepted by the Board under this subsection shall notify the Board at least 30 days before the effective date of a change, expiration or cancellation of any instrument of insurance, guaranty or surety. Operators of facilities who are unable to demonstrate financial responsibility in the amounts established pursuant to subsection D may establish an insurance pool pursuant to the requirements of § 62.1-44.34:12 in order to demonstrate such financial responsibility.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":228564,"text":"Acceptance of proof of financial responsibility for tank vessels shall expire:","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"F1"},"6":{"id":228565,"text":"One year from the date on which the Board exempts an operator from the cash deposit requirement based on evidence of self-insurance, except that the Board may establish by regulation a different expiration date for acceptance of evidence of self-insurance submitted by public agencies;","type":"section","prefixes":["F","1"],"prefix":"1","entire_prefix":"F1","prefix_anchor":"F1","level":2,"prior_prefix":"F","next_prefix":"F2"},"7":{"id":228566,"text":"On the effective date of any change in the operator’s instrument of insurance, guaranty or surety; or","type":"section","prefixes":["F","2"],"prefix":"2","entire_prefix":"F2","prefix_anchor":"F2","level":2,"prior_prefix":"F1","next_prefix":"F3"},"8":{"id":228567,"text":"Upon the expiration or cancellation of any instrument of insurance, guaranty or surety.\n\t\t\t\tApplication for renewal of acceptance of proof of financial responsibility shall be filed 30 days before the date of expiration.","type":"section","prefixes":["F","3"],"prefix":"3","entire_prefix":"F3","prefix_anchor":"F3","level":2,"prior_prefix":"F2","next_prefix":"G"},"9":{"id":228568,"text":"Operators of facilities shall annually demonstrate and maintain evidence of financial responsibility for containment and cleanup in accordance with regulations adopted by the Board.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F3","next_prefix":"H"},"10":{"id":228569,"text":"The Board, after notice and opportunity for hearing, may revoke its acceptance of evidence of financial responsibility if it determines that:","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"H1"},"11":{"id":228570,"text":"Acceptance has been procured by fraud or misrepresentation; or","type":"section","prefixes":["H","1"],"prefix":"1","entire_prefix":"H1","prefix_anchor":"H1","level":2,"prior_prefix":"H","next_prefix":"H2"},"12":{"id":228571,"text":"A change in circumstances has occurred that would warrant denial of acceptance of evidence of financial responsibility under this section or the requirements established by the Board pursuant to this section.","type":"section","prefixes":["H","2"],"prefix":"2","entire_prefix":"H2","prefix_anchor":"H2","level":2,"prior_prefix":"H1","next_prefix":"I"},"13":{"id":228572,"text":"It is not a defense to any action brought for failure to comply with the cash deposit requirement or to provide acceptable evidence of financial responsibility that the person charged believed in good faith that the tank vessel or facility or the operator of the tank vessel or facility had made the required cash deposit or possessed evidence of financial responsibility accepted by the Board.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H2"}},"ancestry":[{"id":14927,"edition_id":1,"name":"Discharge of Oil Into Waters","identifier":"11","label":"article","depth":3,"order_by":1,"parent_id":13014,"metadata":{},"date_created":"2026-06-26 03:50:50","date_modified":"2026-06-26 03:50:50","permalink":{"id":269219,"object_type":"structure","relational_id":14927,"identifier":"11","token":"62.1\/3.1\/11","url":"\/62.1\/3.1\/11\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13014,"edition_id":1,"name":"State Water Control Law","identifier":"3.1","label":"chapter","depth":2,"order_by":1,"parent_id":12909,"metadata":{},"date_created":"2026-06-26 03:44:08","date_modified":"2026-06-26 03:44:08","permalink":{"id":269169,"object_type":"structure","relational_id":13014,"identifier":"3.1","token":"62.1\/3.1","url":"\/62.1\/3.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12909,"edition_id":1,"name":"Waters of the State, Ports and Harbors","identifier":"62.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:00","date_modified":"2026-06-26 03:44:00","permalink":{"id":268199,"object_type":"structure","relational_id":12909,"identifier":"62.1","token":"62.1","url":"\/62.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":82013,"structure_id":14927,"section_number":"62.1-44.34:14","catch_line":"Definitions","url":"\/62.1-44.34_14\/","token":"62.1\/3.1\/11\/62.1-44.34_14","metadata":false},{"id":76513,"structure_id":14927,"section_number":"62.1-44.34:15","catch_line":"Oil discharge contingency plans","url":"\/62.1-44.34_15\/","token":"62.1\/3.1\/11\/62.1-44.34_15","metadata":false},{"id":78401,"structure_id":14927,"section_number":"62.1-44.34:15.1","catch_line":"Regulations for aboveground storage tanks","url":"\/62.1-44.34_15.1\/","token":"62.1\/3.1\/11\/62.1-44.34_15.1","metadata":false},{"id":62684,"structure_id":14927,"section_number":"62.1-44.34:16","catch_line":"Financial responsibility for vessels and facilities","url":"\/62.1-44.34_16\/","token":"62.1\/3.1\/11\/62.1-44.34_16","metadata":false},{"id":73860,"structure_id":14927,"section_number":"62.1-44.34:17","catch_line":"Exemptions","url":"\/62.1-44.34_17\/","token":"62.1\/3.1\/11\/62.1-44.34_17","metadata":false},{"id":76130,"structure_id":14927,"section_number":"62.1-44.34:18","catch_line":"Discharge of oil prohibited; liability for permitting discharge","url":"\/62.1-44.34_18\/","token":"62.1\/3.1\/11\/62.1-44.34_18","metadata":false},{"id":70352,"structure_id":14927,"section_number":"62.1-44.34:19","catch_line":"Reporting of discharge","url":"\/62.1-44.34_19\/","token":"62.1\/3.1\/11\/62.1-44.34_19","metadata":false},{"id":56968,"structure_id":14927,"section_number":"62.1-44.34:19.1","catch_line":"Registration of aboveground storage tanks","url":"\/62.1-44.34_19.1\/","token":"62.1\/3.1\/11\/62.1-44.34_19.1","metadata":false},{"id":71617,"structure_id":14927,"section_number":"62.1-44.34:19.2","catch_line":"Recordkeeping and access to records and facilities","url":"\/62.1-44.34_19.2\/","token":"62.1\/3.1\/11\/62.1-44.34_19.2","metadata":false},{"id":69301,"structure_id":14927,"section_number":"62.1-44.34:20","catch_line":"Enforcement and penalties","url":"\/62.1-44.34_20\/","token":"62.1\/3.1\/11\/62.1-44.34_20","metadata":false},{"id":60531,"structure_id":14927,"section_number":"62.1-44.34:21","catch_line":"Administrative fees","url":"\/62.1-44.34_21\/","token":"62.1\/3.1\/11\/62.1-44.34_21","metadata":false},{"id":72481,"structure_id":14927,"section_number":"62.1-44.34:22","catch_line":"Applicability of Administrative Process Act","url":"\/62.1-44.34_22\/","token":"62.1\/3.1\/11\/62.1-44.34_22","metadata":false},{"id":67138,"structure_id":14927,"section_number":"62.1-44.34:23","catch_line":"Exceptions","url":"\/62.1-44.34_23\/","token":"62.1\/3.1\/11\/62.1-44.34_23","metadata":false}],"previous_section":{"id":78401,"structure_id":14927,"section_number":"62.1-44.34:15.1","catch_line":"Regulations for aboveground storage tanks","url":"\/62.1-44.34_15.1\/","token":"62.1\/3.1\/11\/62.1-44.34_15.1","metadata":false},"next_section":{"id":73860,"structure_id":14927,"section_number":"62.1-44.34:17","catch_line":"Exemptions","url":"\/62.1-44.34_17\/","token":"62.1\/3.1\/11\/62.1-44.34_17","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/62.1-44.34:16\/","history_text":"

This law was first created in 1990. The record of its establishment is cataloged in chapter 917 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1990 \u201cActs\u201d aren\u2019t available online. It has been modified 5 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1992, chapters 456 and 819; in 1993, chapter 375; in 1994, chapter 196<\/a>; in 1999, chapter 91<\/a>; in 2004, chapter 276<\/a>.<\/p>","references":[{"id":76424,"section_number":"62.1-44.34:12","catch_line":"Financial responsibility","order_by":null,"url":"\/62.1-44.34_12\/"},{"id":73860,"section_number":"62.1-44.34:17","catch_line":"Exemptions","order_by":null,"url":"\/62.1-44.34_17\/"},{"id":76130,"section_number":"62.1-44.34:18","catch_line":"Discharge of oil prohibited; liability for permitting discharge","order_by":null,"url":"\/62.1-44.34_18\/"},{"id":69301,"section_number":"62.1-44.34:20","catch_line":"Enforcement and penalties","order_by":null,"url":"\/62.1-44.34_20\/"},{"id":60531,"section_number":"62.1-44.34:21","catch_line":"Administrative fees","order_by":null,"url":"\/62.1-44.34_21\/"}],"refers_to":[{"id":76424,"section_number":"62.1-44.34:12","catch_line":"Financial responsibility","order_by":null,"url":"\/62.1-44.34_12\/"}],"permalink":{"id":269233,"object_type":"law","relational_id":62684,"identifier":"62.1-44.34:16","token":"62.1\/3.1\/11\/62.1-44.34_16","url":"\/62.1-44.34_16\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/62.1-44.34_16\/","token":"62.1\/3.1\/11\/62.1-44.34_16","dublin_core":{"Title":"Financial responsibility for vessels and facilities","Type":"Text","Format":"text\/html","Identifier":"\u00a7 62.1-44.34:16","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The operator<\/span> of any tank vessel<\/span> entering upon state waters<\/span> shall have a Certificate<\/span> of Financial Responsibility approved by the U.S. Coast Guard pursuant to § 4202 of the federal Oil<\/span> Pollution<\/span> Act of 1990 or shall deposit with the Board<\/span> cash or its equivalent in the amount of $500 per gross ton of such vessel. Any such cash deposits received by the Board<\/span> shall be held in escrow in the Virginia Petroleum Storage Tank Fund. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If the Board<\/span> determines that oil<\/span> has been discharged in violation of this article or that there has been a substantial threat of such discharge<\/span> from a vessel for which a cash deposit has been made, any amount held in escrow may be used to pay any fines, penalties or damages<\/span> imposed under this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The Board<\/span> shall exempt an operator<\/span> of a tank vessel<\/span> from the cash deposit requirements specified in this section if the operator<\/span> of the tank vessel<\/span> provides evidence<\/span> of financial responsibility pursuant to the terms and conditions of this subsection. The Board<\/span> shall adopt requirements for operators<\/span> of tank vessels<\/span> for maintaining evidence<\/span> of financial responsibility in an amount equivalent to the cash deposit which would be required for such tank vessel<\/span> pursuant to this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Board<\/span> is authorized to promulgate regulations<\/span> requiring operators<\/span> of facilities to demonstrate financial responsibility sufficient to comply with the requirements of this article as a condition of operation. Operators<\/span> of facilities shall demonstrate financial responsibility based on the total storage capacity of all facilities operated within the Commonwealth. Regulations<\/span> governing the amount of any financial responsibility required shall take into consideration the type, oil<\/span> storage or handling capacity and location of a facility<\/span>, the risk of a discharge<\/span> of oil<\/span> at that type of facility<\/span> in the Commonwealth, the potential damage or injury to state waters<\/span> or the impairment of their beneficial use<\/span> that may result from a discharge<\/span> at that type of facility<\/span>, the potential cost of containment and cleanup<\/span> at that type of facility<\/span>, and the nature and degree of injury or interference with general health, welfare and property that may result from a discharge<\/span> at that type of facility<\/span>. In no instance shall the financial responsibility requirements for facilities exceed $.05 per gallon of aboveground storage capacity or $5 million for a pipeline<\/span>. In no instance shall any financial test of self-insurance require the operator<\/span> of a facility<\/span> to demonstrate more than $1 of net worth for each dollar of required financial responsibility. If such net worth does not equal the required financial responsibility, then the operator<\/span> shall demonstrate the minimum required amount by a combination of financial responsibility mechanisms in accordance with subsection E of this section. No governmental agency shall be required to comply with any such regulations<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Financial responsibility may be demonstrated by self-insurance, insurance, guaranty or surety<\/span>, or any other method approved by the Board<\/span>, or any combination thereof, under the terms the Board<\/span> may prescribe. To obtain an exemption from the cash deposit requirements under this section: the operator<\/span> of a tank vessel<\/span> and insurer, guarantor or surety<\/span> shall appoint an agent for service of process<\/span> in the Commonwealth; any insurer must be authorized by the Commonwealth to engage in the insurance business; and any instrument of insurance, guaranty or surety<\/span> must provide that actions may be brought on such instrument of insurance, guaranty or surety<\/span> directly against the insurer, guarantor or surety<\/span> for any violation of this chapter by the operator<\/span> up to, but not exceeding, the amount insured, guaranteed or otherwise pledged. An operator<\/span> of a tank vessel<\/span> or facility<\/span> whose financial responsibility is accepted by the Board<\/span> under this subsection shall notify the Board<\/span> at least 30 days before the effective date of a change, expiration or cancellation of any instrument of insurance, guaranty or surety<\/span>. Operators<\/span> of facilities who are unable to demonstrate financial responsibility in the amounts established pursuant to subsection D may establish an insurance pool pursuant to the requirements of § 62.1-44.34:12<\/a> in order<\/span> to demonstrate such financial responsibility. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Acceptance of proof of financial responsibility for tank vessels<\/span> shall expire: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> One year from the date on which the Board<\/span> exempts an operator<\/span> from the cash deposit requirement based on evidence<\/span> of self-insurance, except that the Board<\/span> may establish by regulation<\/span> a different expiration date for acceptance of evidence<\/span> of self-insurance submitted by public agencies; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> On the effective date of any change in the operator<\/span>’s instrument of insurance, guaranty or surety<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Upon the expiration or cancellation of any instrument of insurance, guaranty or surety<\/span>.\n\t\t\t\tApplication for renewal of acceptance of proof of financial responsibility shall be filed 30 days before the date of expiration. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Operators<\/span> of facilities shall annually demonstrate and maintain evidence<\/span> of financial responsibility for containment and cleanup<\/span> in accordance with regulations<\/span> adopted by the Board<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> The Board<\/span>, after notice and opportunity for hearing<\/span>, may revoke its acceptance of evidence<\/span> of financial responsibility if it determines that: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Acceptance has been procured by fraud<\/span> or misrepresentation; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A change in circumstances has occurred that would warrant denial of acceptance of evidence<\/span> of financial responsibility under this section or the requirements established by the Board<\/span> pursuant to this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> It is not a defense to any action brought for failure to comply with the cash deposit requirement or to provide acceptable evidence<\/span> of financial responsibility that the person<\/span> charged believed in good faith that the tank vessel<\/span> or facility<\/span> or the operator<\/span> of the tank vessel<\/span> or facility<\/span> had made the required cash deposit or possessed evidence<\/span> of financial responsibility accepted by the Board<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFINANCIAL RESPONSIBILITY FOR VESSELS AND FACILITIES (\u00a7 62.1-44.34:16)\n\nA. The operator of any tank vessel entering upon state waters shall have a\nCertificate of Financial Responsibility approved by the U.S. Coast Guard\npursuant to § 4202 of the federal Oil Pollution Act of 1990 or shall\ndeposit with the Board cash or its equivalent in the amount of $500 per gross\nton of such vessel. Any such cash deposits received by the Board shall be held\nin escrow in the Virginia Petroleum Storage Tank Fund.\n\nB. If the Board determines that oil has been discharged in violation of this\narticle or that there has been a substantial threat of such discharge from a\nvessel for which a cash deposit has been made, any amount held in escrow may be\nused to pay any fines, penalties or damages imposed under this chapter.\n\nC. The Board shall exempt an operator of a tank vessel from the cash deposit\nrequirements specified in this section if the operator of the tank vessel\nprovides evidence of financial responsibility pursuant to the terms and\nconditions of this subsection. The Board shall adopt requirements for operators\nof tank vessels for maintaining evidence of financial responsibility in an\namount equivalent to the cash deposit which would be required for such tank\nvessel pursuant to this section.\n\nD. The Board is authorized to promulgate regulations requiring operators of\nfacilities to demonstrate financial responsibility sufficient to comply with the\nrequirements of this article as a condition of operation. Operators of\nfacilities shall demonstrate financial responsibility based on the total storage\ncapacity of all facilities operated within the Commonwealth. Regulations\ngoverning the amount of any financial responsibility required shall take into\nconsideration the type, oil storage or handling capacity and location of a\nfacility, the risk of a discharge of oil at that type of facility in the\nCommonwealth, the potential damage or injury to state waters or the impairment\nof their beneficial use that may result from a discharge at that type of\nfacility, the potential cost of containment and cleanup at that type of\nfacility, and the nature and degree of injury or interference with general\nhealth, welfare and property that may result from a discharge at that type of\nfacility. In no instance shall the financial responsibility requirements for\nfacilities exceed $.05 per gallon of aboveground storage capacity or $5 million\nfor a pipeline. In no instance shall any financial test of self-insurance\nrequire the operator of a facility to demonstrate more than $1 of net worth for\neach dollar of required financial responsibility. If such net worth does not\nequal the required financial responsibility, then the operator shall demonstrate\nthe minimum required amount by a combination of financial responsibility\nmechanisms in accordance with subsection E of this section. No governmental\nagency shall be required to comply with any such regulations.\n\nE. Financial responsibility may be demonstrated by self-insurance, insurance,\nguaranty or surety, or any other method approved by the Board, or any\ncombination thereof, under the terms the Board may prescribe. To obtain an\nexemption from the cash deposit requirements under this section: the operator of\na tank vessel and insurer, guarantor or surety shall appoint an agent for\nservice of process in the Commonwealth; any insurer must be authorized by the\nCommonwealth to engage in the insurance business; and any instrument of\ninsurance, guaranty or surety must provide that actions may be brought on such\ninstrument of insurance, guaranty or surety directly against the insurer,\nguarantor or surety for any violation of this chapter by the operator up to, but\nnot exceeding, the amount insured, guaranteed or otherwise pledged. An operator\nof a tank vessel or facility whose financial responsibility is accepted by the\nBoard under this subsection shall notify the Board at least 30 days before the\neffective date of a change, expiration or cancellation of any instrument of\ninsurance, guaranty or surety. Operators of facilities who are unable to\ndemonstrate financial responsibility in the amounts established pursuant to\nsubsection D may establish an insurance pool pursuant to the requirements of\n§ 62.1-44.34:12 in order to demonstrate such financial responsibility.\n\nF. Acceptance of proof of financial responsibility for tank vessels shall\nexpire:\n\n 1. One year from the date on which the Board exempts an operator from the cash\n deposit requirement based on evidence of self-insurance, except that the Board\n may establish by regulation a different expiration date for acceptance of\n evidence of self-insurance submitted by public agencies;\n\n 2. On the effective date of any change in the operator’s instrument of\n insurance, guaranty or surety; or\n\n 3. Upon the expiration or cancellation of any instrument of insurance,\n guaranty or surety.\n \t\t\t\tApplication for renewal of acceptance of proof of financial responsibility\n shall be filed 30 days before the date of expiration.\n\nG. Operators of facilities shall annually demonstrate and maintain evidence of\nfinancial responsibility for containment and cleanup in accordance with\nregulations adopted by the Board.\n\nH. The Board, after notice and opportunity for hearing, may revoke its\nacceptance of evidence of financial responsibility if it determines that:\n\n 1. Acceptance has been procured by fraud or misrepresentation; or\n\n 2. A change in circumstances has occurred that would warrant denial of\n acceptance of evidence of financial responsibility under this section or the\n requirements established by the Board pursuant to this section.\n\nI. It is not a defense to any action brought for failure to comply with the cash\ndeposit requirement or to provide acceptable evidence of financial\nresponsibility that the person charged believed in good faith that the tank\nvessel or facility or the operator of the tank vessel or facility had made the\nrequired cash deposit or possessed evidence of financial responsibility accepted\nby the Board.\n\nHISTORY: 1990, c. 917; 1992, cc. 456, 819; 1993, c. 375; 1994, c. 196; 1999, c.\n91; 2004, c. 276.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}