Opinion ID: 1057964
Heading Depth: 3
Heading Rank: 2

Heading: Oil Discharge Law

Text: The Oil Discharge Law, which is found in Article 11 of the Water Control Law, falls under the purview of the State Water Control Board. See Code §§ 62.1-44.3; -44.15. And in contrast to the breadth of the VWMA when first enacted, the original Oil Discharge Law, enacted in 1973, 18 contained only two sections. Former Code § 62.1-44.34:1 defined the terms discharge, oil, oil refinery, and vessel, and former Code § 62.1-44.34:2 contained the following liability provision: Any person, firm or corporation owning or operating an oil refinery or any vessel while within State waters, which permits or suffers a discharge of oil into such waters, shall be liable to the Commonwealth of Virginia for all costs of cleanup or property damage incurred by the State or a political subdivision thereof, and any person showing damage to his property resulting from such discharge. In any suit to enforce the claims under this article, it shall not be necessary for the State, political subdivision, or person showing property damage, to plead or prove negligence in any form or manner on the part of the oil refinery or vessel. In 1976, the General Assembly deleted the term oil refinery from that statute and replaced it with the term facility, which it defined as any development or installation . . . that deals in or handles oil, petroleum or any petroleum product or by-product. 1976 Acts ch. 51. In 1978, the Oil Discharge Law was amended, inter alia, to impose a cap on 18 See 1973 Acts ch. 417. 19 damages in the absence of negligence, grant the Water Control Board the authority to abate and contain a discharge of oil if the responsible party could not be identified, and require the person, firm or corporation owning or operating any facility, vessel or vehicle from which there is a discharge of oil to report such discharge to the Water Control Board. 1978 Acts ch. 816 (enacting former Code § 62.1-44.34:4). In addition, the General Assembly expanded the liability provision from a person, firm or corporation that owned a facility or vessel, to [a]ny person, firm or corporation causing or permitting a discharge of oil into State waters, or owning or operating any facility, vessel or vehicle from which there is a discharge of oil. Id. (amending former Code § 62.1-44.34:2(A)). In 1990, the General Assembly specifically defined the term person as any firm, corporation, association or partnership, one or more individuals, or any governmental unit or agency thereof. 1990 Acts ch. 917 (enacting Code § 62.1-44.34:14). At that time, the General Assembly also added provisions relating to financial responsibility and oil discharge contingency plans, as well as Exemptions and Exceptions. Id. (enacting Code §§ 62.1-44.34:16 and -44:34:17, and amending Code § 62.1-44.34:23). The Exemptions provision relieved facilities and vessels with smaller storage and handling capacities from the requirements of filing an oil discharge 20 contingency plan and complying with the financial responsibility requirements. Id. The Exceptions, meanwhile, precluded the application of any part of the Oil Discharge Law to several categories of unintentional discharges:
vehicles and equipment, marine engines, outboard motors or hydroelectric facilities; (ii) accidental discharges from farm vehicles or noncommercial vehicles; (iii) accidental discharges from the fuel tanks of commercial vehicles or vessels that have a fuel tank capacity of 150 gallons or less; (iv) discharges authorized by a valid permit issued by the Board . . . ; (v) underground storage tanks regulated under a state program. . . . Code § 62.1-44.34:23 (as amended by 1990 Acts ch. 917). The provision of the Oil Discharge Law under which the trial court held the County liable currently provides: Any person discharging or causing or permitting a discharge of oil into or upon state waters . . . within the Commonwealth, discharging or causing or permitting a discharge of oil which may reasonably be expected to enter state waters . . . and any operator of any facility, vehicle or vessel from which there is a discharge of oil into or upon state waters, . . . shall be liable to: . . . . 4. Any person for injury or damage to person or property, real or personal, loss of income, loss of the means of producing income, or loss of the use of the damaged property for recreational, commercial, industrial, agricultural or other reasonable uses, caused by such discharge. 21 Code § 62.1-44.34:18(C). The liability provision also: allows the recovery of attorneys' fees and costs, Code §§ 62.1- 44.34:18(F); imposes strict liability, -44.34:18(E); and requires any person or operator to implement any applicable oil spill contingency plan or take other action to contain and clean up a discharge, -44.34:18(B). The term [o]il is defined as oil of any kind and in any form, including, but not limited to, petroleum and petroleum byproducts, fuel oil, lubricating oils, sludge, oil refuse, oil mixed with other wastes, crude oils and all other liquid hydrocarbons regardless of specific gravity. Code § 62.1- 44.34:14. The term [p]erson, still defined according to the 1990 amendment, includes one or more individuals, or any governmental unit or agency thereof. Id. The term [d]ischarge is any spilling, leaking, pumping, pouring, emitting, emptying or dumping. Id. In the event of a discharge of oil, any [person or] operator of any facility, vehicle or vessel from which there is a discharge is required to immediately notify, among others, the Water Control Board. Code § 62.1-44.34:19. Upon finding a violation of the Oil Discharge Law, the Water Control Board may, inter alia, seek injunctive relief and recover costs, damages and civil penalties. Code § 62.1-44.34:20(B). A person who negligently or knowingly and willfully discharges oil in 22 violation of the Oil Discharge Law can be convicted of a misdemeanor or a felony, respectively. Code § 62.1-44.34:20(E). The remaining provisions of the Oil Discharge Law relate to facilities, operators, storage tanks, and vessels. In particular, Code § 62.1-44.34:15.1 authorizes the Water Control Board to promulgate regulations for aboveground storage tanks, and includes specific provisions to be included, while Code § 62.1-44.34:19.1 requires the registration of aboveground storage tanks. Pursuant to Code § 62.1-44.34:15(A), [n]o operator shall cause or permit the operation of a facility . . . unless an oil discharge contingency plan applicable to the facility has been filed. The term [f]acility is any development or installation within the Commonwealth that deals in, stores or handles oil, and includes a pipeline. Code § 62.1-44.34:14. The provisions of Code § 62.1-44.34:16 require the operators of facilities and tank vessels to establish and maintain financial responsibility against a discharge. Similarly, the Oil Discharge Law's exemptions and exceptions also apply to certain categories of vessels, storage tanks, and facilities. The exemptions, listed in Code § 62.1- 44.34:17, relieve facilities, tanks, and vessels with smaller storage and handling capacities from the oil contingency and financial responsibility provisions; exclude nonpetroleum hydrocarbon-based animal and vegetable oils from the definition 23 of oil for the purposes of the oil contingency plan and financial responsibility provisions; and relieve aboveground storage tanks with smaller storage capacity and facilities that do not resell oil from their aboveground storage tanks from the requirements of Code § 62.1-44.34:15.1. The current exceptions, which exclude all coverage under the Oil Discharge Law, add to the 1990 amendment an exception for releases from underground storage tanks . . . regardless of when the release occurred. Code § 62.1-44.34:23(A)(vi). The Virginia Administrative Code reflects a similar focus on storage tanks, vessels, and facilities. The regulations governing the Water Control Board contain two chapters dealing with the Oil Discharge Law: Chapter 91, titled Facility and Aboveground Storage Tank (AST) Regulation, 9 VAC § 25-91-10, et seq.; and Chapter 101, titled Tank Vessel Oil Discharge Contingency Plan and Financial Responsibility Regulation, 9 VAC § 25-101-10, et seq. As their titles suggest, these regulations apply only to aboveground storage tanks, facilities, and vessels. See 9 VAC § 25-91-20; 9 VAC § 25-101-20.