P0706 Volvo Xc70 shows up when there's an electrical problem that causes the fuel volume regulator to malfunction and open. It's quite an unusual problem and likely intermittent. As you drive and when specific conditions are slowly met, the vapors will gradually purge from the charcoal canister and will get burned within your engine.
Possible Causes :
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If the scan tool has that capability, and the scan tool can operate the IMRC valves, then the problem is either resolved and a simple code clearing is all that's left or a new PCM would be called for. Find out what kind of system you have and verify that voltage to the fuel level sensor is present at the fuel pump wiring harness.
Diagnostic trouble code P0706 Volvo Xc70 is not difficult to diagnose and repair. Thus, it always pays to have a qualified technician to look after your vehicle should this error code arise.
Diagnosing this code requires the engine to be in good running shape, without unmetered air entering the engine. If other codes that relates to misfiring condition, lean running or air entering the engine is present, then you must first fix those error codes before P0706 Volvo Xc70.
Fortunately, P0706 Volvo Xc70 is a fairly common OBD code, meaning that it applies to all makes and models of vehicles made after 1996.