HF 2122 (LSB 5463YH (6) 86)

HOUSE FILE 2122

BY  ISENHART

A BILL FOR

An Act providing for the establishment of a crude oil disaster prevention and response fund, establishing fees, and making an appropriation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  455B.702  Crude oil disaster prevention and response fund.
   1.  A crude oil disaster prevention and response fund is created within the state treasury under the control of the department of natural resources consisting of moneys received in the form of crude oil disaster prevention and response fees as provided in section 455B.703. Moneys in the fund are appropriated to the department for the purposes specified in subsection 3. 
   2.  Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund. Notwithstanding section 8.33, moneys credited to the fund that remain unexpended or unobligated at the end of a fiscal year shall not revert to any other fund.
   3.  The director may use moneys deposited in the fund for any of the following purposes:
   a.  For railroad, highway, and bridge safety inspections in collaboration with the department of transportation.
   b.  For transfer to the department of commerce revolving fund created in section 546.12 to supplement amounts received for hazardous liquid pipeline safety inspections pursuant to section 479B.11.
   c.  For the control, abatement, and prevention of hazardous conditions resulting from the accidental discharge of crude oil being transported through the state, including but not limited to emergency responder training and equipment, and prevention, response, cleanup, and mitigation efforts. The director shall make all reasonable efforts to recover the full amount of moneys expended from the fund for prevention, response, cleanup, and mitigation efforts through litigation or cooperative agreements with responsible persons, with moneys recovered deposited with the treasurer of state and credited to the crude oil disaster prevention and response fund.
    Sec. 2.  NEW SECTION.  455B.703  Crude oil disaster prevention and response fee.
   A crude oil disaster prevention and response fee shall be payable by the owner or operator of a pipeline company, as defined in section 479B.2, in an amount equal to twenty-four ten-thousandths of one cent per gallon of crude oil transported out of the state by pipeline, rail, truck, or other means, whether extracted in or out of the state. The director shall establish by rule procedures for collection of the fees. Fees collected pursuant to this section shall be deposited in the crude oil disaster prevention and response fund created in section 455B.702.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to the transporting of crude oil through Iowa by establishing a crude oil disaster prevention and response fee and fund.
   The bill creates the crude oil disaster prevention and response fund in the state treasury under the control of the department of natural resources. The bill appropriates moneys deposited in the fund to the department and provides that the director of the department may use moneys deposited in the fund for any of several purposes, including for providing railroad, highway, and bridge safety inspections in collaboration with the department of transportation, for transfer to the department of commerce revolving fund to supplement hazardous pipeline inspection fees received pursuant to Code section 479B.11, and for the control, abatement, and prevention of hazardous conditions resulting from the accidental discharge of crude oil being transported through the state, including but not limited to emergency responder training and equipment, and disaster prevention, response, and mitigation efforts. 
   With regard to prevention, response, cleanup, and mitigation efforts, the bill provides that the director shall make all reasonable efforts to recover the full amount of moneys expended from the fund for response, cleanup, and mitigation efforts through litigation or cooperative agreements with responsible persons, with moneys recovered credited to the crude oil disaster prevention and response fund.
   The bill establishes a crude oil disaster prevention and response fee payable by the owner or operator of a pipeline company, as defined in Code section 479B.2, in an amount equal to 0.0024 of 1 cent per gallon of crude oil transported out of the state by pipeline, rail, truck, or other means, whether extracted in or out of the state. The bill provides that the director shall establish by rule procedures for collection of the fees, and that the fees shall be deposited in the crude oil disaster prevention and response fund.