A. The water quality assurance revolving fund is established to be administered by the director. The fund consists of monies from the following sources:

1. 1. Monies appropriated by the legislature.
2. 2. Fertilizer license fees allocated under section 3-272, subsection B, paragraph 2.
3. 3. Pesticide registration fees allocated under section 3-351, subsection D, paragraph 2.
4. 4. The tax on water use pursuant to section 42-5302.
5. 5. Water quality assurance fees collected under section 45-616.
6. 6. Industrial discharge registration fees collected under section 49-209.
7. 7. Hazardous waste facility registration fees collected under section 49-929.
8. 8. Hazardous waste resource recovery facility registration fees collected under section 49-930.
9. 9. Monies recovered from responsible parties as remedial action costs.
10. 10. Monies received as costs for a review of remedial actions at the request of a person other than this state.
11. 11. Monies received from the collection of corporate income taxes under title 43, chapter 11, article 2 as prescribed by subsection B of this section.
12. 12. Prospective purchaser or prospective remediator agreement fees collected under section 49-285.01.

E. Monies from the water quality assurance revolving fund shall be used for the following purposes:

1. 1. To provide state matching monies or to meet such other obligations as are prescribed by section 104 of CERCLA.

2. 2. For all reasonable and necessary costs to implement this article, including:

   1. (a) Taking remedial actions.
   2. (b) Conducting investigations of an area to determine if a release or a threatened release of a hazardous substance exists.
   3. (c) Conducting remedial investigations, feasibility studies, health effect studies and risk assessments.
   4. (d) Identifying and investigating potentially responsible parties and allocating liability among the responsible parties.
   5. (e) Funding orphan shares.
   6. (f) Participating in the allocation process, administrative appeals and court actions.
   7. (g) Funding the community advisory boards and other community involvement activities.
   8. (h) Remediating pollutants if necessary to remediate a hazardous substance.
3. 3. For the reasonable and necessary costs of monitoring, assessing, identifying, locating and evaluating the degradation, destruction, loss of or threat to the waters of the state resulting from a release of a hazardous substance to the environment.
4. 4. For the reasonable and necessary costs of administering the fund.
5. 5. For the reasonable and necessary costs of administering the industrial discharge registration program under section 49-209.
6. 6. For the costs of the water quality monitoring program described in section 49-225.
7. 7. For compliance monitoring, investigation and enforcement activities pertaining to generating, transporting, treating, storing and disposing of hazardous waste. The amount to be used pursuant to chapter 5 of this title is limited to the amount received in the prior fiscal year from the hazardous waste facility registration fee.
8. 8. For emergency response use as prescribed in section 49-282.02.
9. 9. For all reasonable and necessary costs of the preparation and execution of prospective purchaser agreements.
10. 10. For all reasonable and necessary costs of the voluntary remediation program.
11. 11. To reimburse a political subdivision of this state for its reasonable, necessary and cost-effective remedial action costs incurred in response to a release or threat of a release of a hazardous substance or pollutants that presents an immediate and substantial endangerment to the public health or the environment. The political subdivision is not eligible for reimbursement until it has taken all reasonable efforts to obtain reimbursement from the responsible party and the federal government. Not more than $250,000 may be spent from the fund for this purpose in any fiscal year.
12. 12. For all reasonable and necessary costs incurred by the department pursuant to section 49-282.04 and the department of water resources pursuant to section 45-605 for well inspections, remedial actions and review and approval of well construction necessary to prevent vertical cross-contamination. The director of environmental quality and the director of water resources shall enter into an agreement for the transfer of these costs.
13. 13. For actions that are taken pursuant to section 49-282.03 before the selection of a remedy.
14. 14. For the reasonable and necessary costs of the conveyance, use or discharge of water remediated as part of a remedy under this article.

15. 15. For the reasonable and necessary costs incurred by the department of health services at the request of the director of environmental quality to assess and evaluate the effect of a release or threatened release of hazardous substances to the public health or welfare and the environment. The director of environmental quality and the director of the department of health services shall enter into an agreement for the transfer of these costs. The assessment and evaluation by the department of health services may include:

    1. (a) Performing health effect studies and risk assessments.
    2. (b) Evaluating and calculating cleanup standards.
    3. (c) Assisting in communicating health and risk issues to the public.
16. 16. For the reasonable and necessary costs incurred by the department of law to provide legal services at the request of the director of environmental quality.
17. 17. For the reasonable and necessary costs of contracting for the goods and services to enable the director to implement this article.
18. 18. For remediation demonstration projects that use bioremediation or other alternative technologies. The department may not use more than $500,000 in a fiscal year pursuant to this paragraph.