House Study Bill 670 HOUSE FILE BY (PROPOSED COMMITTEE ON ENVIRONMENTAL PROTECTION BILL BY CHAIRPERSON GREINER) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the comprehensive petroleum underground 2 storage tank fund. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6359HC 80 5 tm/gg/14 PAG LIN 1 1 Section 1. Section 455G.2, Code 2003, is amended by adding 1 2 the following new subsections: 1 3 NEW SUBSECTION. 0A. "Aboveground petroleum storage tank" 1 4 means the same as defined in section 101.21. 1 5 NEW SUBSECTION. 0B. "Aboveground petroleum storage tank 1 6 site" means the same as "tank site" as defined in section 1 7 101.21, subsection 8. 1 8 Sec. 2. Section 455G.3, subsection 3, Code Supplement 1 9 2003, is amended by adding the following new paragraph: 1 10 NEW PARAGRAPH. e. To establish an aboveground petroleum 1 11 storage tank fund as provided in section 455G.23. 1 12 Sec. 3. Section 455G.9, subsection 1, Code Supplement 1 13 2003, is amended by adding the following new paragraph: 1 14 NEW PARAGRAPH. l. Costs for the permanent closure of an 1 15 underground storage tank system that was in place on the date 1 16 an eligible claim was submitted under paragraph "a". 1 17 Reimbursement is limited to costs approved by the board prior 1 18 to the closure activities and the closure activities must be 1 19 completed not later than December 31, 2005. 1 20 Sec. 4. NEW SECTION. 455G.23 ABOVEGROUND PETROLEUM 1 21 STORAGE TANK FUND. 1 22 1. An aboveground petroleum storage tank fund is created 1 23 as a separate fund in the state treasury under the control of 1 24 the board. The board shall administer the aboveground 1 25 petroleum storage tank fund. Notwithstanding section 8.33, 1 26 moneys remaining in the aboveground petroleum storage tank 1 27 fund at the end of each fiscal year shall not revert to the 1 28 general fund but shall remain in the aboveground petroleum 1 29 storage tank fund. The aboveground petroleum storage tank 1 30 fund shall include, notwithstanding section 12C.7, interest 1 31 earned by the aboveground petroleum storage tank fund or other 1 32 income specifically allocated to the aboveground petroleum 1 33 storage tank fund. 1 34 2. The board may reimburse the owner of an aboveground 1 35 petroleum storage tank site up to twenty=five thousand dollars 2 1 per site, but not more than a total of one hundred thousand 2 2 dollars per owner, for the upgrade or permanent closure of the 2 3 aboveground petroleum storage tank site provided all of the 2 4 following criteria are met: 2 5 a. By January 1, 2004, the aboveground petroleum storage 2 6 tank site was registered with the state fire marshal pursuant 2 7 to section 101.22. 2 8 b. The aboveground petroleum storage tank contains 2 9 petroleum as defined in section 455B.471. 2 10 c. Not later than February 18, 2005, the owner shall 2 11 submit an application for reimbursement, on a form provided by 2 12 the board. 2 13 d. Upgrade expenses must be incurred after May 1, 2004, 2 14 and not later than February 18, 2005. Upgrade activities 2 15 include the installation or improvement of equipment or 2 16 systems required to comply with 40 C.F.R. } 112, including: 2 17 (1) Secondary containment. 2 18 (2) Corrosion protection. 2 19 (3) Loss prevention. 2 20 (4) Security. 2 21 (5) Drainage. 2 22 (6) Riveted tanks. 2 23 e. Permanent closure activities, including tank system 2 24 removal, decommission, and disposal, must occur after January 2 25 1, 2004, and not later than December 31, 2005, unless the 2 26 owner is a party to an agreement entered into pursuant to 2 27 subsection 3 and the tanks meet one of the following criteria: 2 28 (1) All tanks are empty by February 18, 2005. 2 29 (2) All tanks containing petroleum on or after February 2 30 18, 2005, meet the requirements of 40 C.F.R. } 112 et seq. 2 31 3. The board, or a contractor approved under subsection 6, 2 32 may enter into contracts with qualified businesses to provide 2 33 permanent closure services at eligible aboveground petroleum 2 34 storage tank sites. The board or a contractor may limit 2 35 reimbursement to those activities approved under the terms of 3 1 the contracts. The board or a contractor may allow permanent 3 2 closure activities to occur and be reimbursed after February 3 3 18, 2005, at those tank sites where the owner timely applied 3 4 for reimbursement and agreed to allow the board or a 3 5 contractor to complete the permanent closure at a time 3 6 determined to be convenient to the board. All activities 3 7 conducted under this subsection must be completed by December 3 8 31, 2006. 3 9 4. The board may enter into an agreement authorized under 3 10 chapter 28E with the state fire marshal for the development 3 11 and maintenance of a database to track registration, technical 3 12 information, and other information determined necessary to 3 13 evaluate the operation and safety of aboveground petroleum 3 14 storage tank sites in Iowa. 3 15 5. The board may limit reimbursement to those activities 3 16 that receive prior budget approval from the board. 3 17 6. The board may enter into a contract with a qualified 3 18 business to provide for administration of this section. 3 19 EXPLANATION 3 20 This bill relates to the comprehensive petroleum 3 21 underground storage tank fund. 3 22 The bill provides that moneys in the remedial account of 3 23 the fund may be used for costs for the permanent closure of an 3 24 underground storage tank system that was in place on the date 3 25 an eligible claim was submitted under the remedial account. 3 26 The bill provides that reimbursement is limited to costs 3 27 approved by the board prior to the closure activities and the 3 28 closure activities must be completed not later than December 3 29 31, 2005. 3 30 The bill establishes an aboveground petroleum storage tank 3 31 fund as a separate fund in the state treasury under the 3 32 control of the Iowa comprehensive petroleum underground 3 33 storage tank board. The bill provides that the board may 3 34 enter into a contract with a qualified business to provide for 3 35 administration of the fund. The bill provides that the board 4 1 may reimburse the owner of an aboveground petroleum storage 4 2 tank site up to $25,000 per site, but not more than a total of 4 3 $100,000 per owner, for the upgrade or permanent closure of 4 4 the aboveground petroleum storage tank site provided all of 4 5 the following criteria are met: 4 6 1. By January 1, 2004, the aboveground petroleum storage 4 7 tank site was registered with the state fire marshal. 4 8 2. The aboveground petroleum storage tank contains 4 9 petroleum. 4 10 3. Not later than February 18, 2005, the owner submits an 4 11 application for reimbursement. 4 12 4. Upgrade expenses are incurred after May 1, 2004, and 4 13 not later than February 18, 2005. 4 14 5. Permanent closure activities, including tank system 4 15 removal, decommission, and disposal, occur after January 1, 4 16 2004, and not later than December 31, 2005, unless the owner 4 17 is subject to a contract with a qualified business and the 4 18 tanks meet certain criteria. 4 19 The board, or a contractor, may enter into contracts with 4 20 qualified businesses to provide permanent closure services at 4 21 eligible aboveground petroleum storage tank sites. The board, 4 22 or a contractor, may limit reimbursement to those activities 4 23 approved under the terms of the contracts. The board, or a 4 24 contractor, may allow permanent closure activities to occur 4 25 and be reimbursed after February 18, 2005, at those tank sites 4 26 where the owner timely applied for reimbursement and agreed to 4 27 allow the board or a contractor to complete the permanent 4 28 closure at a time determined to be convenient to the board. 4 29 All activities conducted under these provisions must be 4 30 completed by December 31, 2006. 4 31 The board may enter into an agreement authorized under Code 4 32 chapter 28E with the state fire marshal for the development 4 33 and maintenance of a database to track registration, technical 4 34 information, and other information determined necessary to 4 35 evaluate the operation and safety of aboveground petroleum 5 1 storage tank sites in Iowa. 5 2 The board may limit reimbursement to those activities that 5 3 receive prior budget approval from the board. 5 4 LSB 6359HC 80 5 5 tm/gg/14