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