                                 CODE OF VIRGINIA

VIRGINIA OFFSHORE ENERGY EMERGENCY RESPONSE FUND ESTABLISHED (§ 10.1-2503)

A. There is hereby created in the state treasury a special nonreverting fund to
be known as the Virginia Offshore Energy Emergency Response Fund, hereafter
referred to as &#8220;the Fund,&#8221; which shall be administered by the
Director of the Department of Environmental Quality. The Fund shall be
established on the books of the Comptroller. All amounts designated for deposit
to the Fund from revenues and royalties paid to the Commonwealth as a result of
offshore natural gas and oil drilling or exploration shall be paid into the
state treasury and credited to the Fund. Interest earned on moneys in the Fund
shall remain in the Fund and be credited to it. Any moneys remaining in the
Fund, including interest thereon, at the end of each fiscal year shall not
revert to the general fund but shall remain in the Fund. Expenditures and
disbursements from the Fund shall be made by the State Treasurer on warrants
issued by the Comptroller upon written request of the Director of the Department
of Environmental Quality. Moneys in the Fund shall be used solely for the
purposes stated in subsection B.

B. The Director of the Department of Environmental Quality shall use moneys in
the Fund solely for the purposes of emergency preparation, emergency response,
emergency environmental protection, or mitigation associated with a release of
liquid hydrocarbons or associated fluids directly related to offshore energy
exploration, development, production, or transmission.

C. The Director of the Department of Environmental Quality shall have the
authority to access the Fund for up to $500,000 per occurrence as long as the
disbursement does not exceed the balance for the agency account. If the Director
of the Department of Environmental Quality requests a disbursement in excess of
$500,000 or an amount exceeding the remaining agency balance, the disbursement
shall require the written approval of the Governor. The Department of
Environmental Quality shall develop guidelines that, after approval by the
Governor, determine how the Fund can be used for the purposes described herein.

D. Disbursements from the Fund may be made for the purposes outlined in
subsection B, including personnel, administrative, and equipment costs and
expenses directly incurred by the Department of Environmental Quality or by any
other agency or political subdivision, acting at the direction of the Department
of Environmental Quality, in and for preventing or alleviating damage, loss,
hardship, or suffering caused by a release of liquid hydrocarbons or associated
fluids directly related to offshore energy exploration, development, production,
or transmission.

E. The Department of Environmental Quality shall promptly seek reimbursement
from any person causing or contributing to such a release of liquid hydrocarbons
or associated fluids for all sums disbursed from the Fund for protection,
relief, or recovery from loss or damage caused by such person. In the event a
request for reimbursement is not paid within 60 days of receipt of a written
demand, the claim shall be referred to the Attorney General for collection. The
agency shall be allowed to recover all legal and court costs and other expenses
incident to such actions for collection.

HISTORY: 2014, c. 293.