Senate File 489 - Introduced SENATE FILE 489 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 1267) A BILL FOR An Act relating to underground storage tanks, including by 1 establishing an underground storage tank cost share grant 2 program and fund, making an appropriation, and extending the 3 environmental protection surcharge. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1613SV (2) 86 tr/nh

S.F. 489 Section 1. Section 321.145, subsection 2, paragraph a, 1 subparagraph (1), Code 2015, is amended to read as follows: 2 (1) First, three one million five hundred seven hundred 3 fifty thousand dollars per quarter shall be deposited into 4 and credited to the Iowa comprehensive petroleum underground 5 storage tank fund created in section 455G.3 , and the moneys so 6 deposited are a continuing appropriation for expenditure under 7 chapter 455G , and moneys so appropriated shall not be used for 8 other purposes. 9 Sec. 2. Section 321.145, subsection 2, paragraph a, Code 10 2015, is amended by adding the following new subparagraph: 11 NEW SUBPARAGRAPH . (3) Third, one million seven hundred 12 fifty thousand dollars per quarter shall be deposited into 13 and credited to the underground storage tank cost share 14 grant program fund created in section 455G.6A. The moneys so 15 deposited are a continuing appropriation for expenditure under 16 that section and shall not be used for other purposes. 17 Sec. 3. Section 424.19, Code 2015, is amended to read as 18 follows: 19 424.19 Future repeal. 20 This chapter is repealed effective June 30, 2016 2026 . 21 Sec. 4. NEW SECTION . 455G.6A Underground storage tank cost 22 share grant program and fund. 23 1. For purposes of this section, “grant program fund” means 24 the underground storage tank cost share grant program fund 25 established by this section. 26 2. An underground storage tank cost share grant program fund 27 is created as a separate fund in the state treasury under the 28 control of the board. The grant program fund is separate from 29 the general fund of the state. 30 3. a. The grant program fund is composed of moneys 31 deposited in the fund pursuant to section 321.145, subsection 32 2, paragraph “a” , subparagraph (3), other moneys appropriated 33 by the general assembly for deposit in the grant program fund, 34 and moneys available to and obtained or accepted by the board 35 -1- LSB 1613SV (2) 86 tr/nh 1/ 4

S.F. 489 from the United States government or private sources for 1 placement in the grant program fund. 2 b. The recapture of awards or penalties, or other repayments 3 of moneys originating from the grant program fund, shall be 4 deposited into the grant program fund. 5 c. Notwithstanding section 12C.7, interest or earnings on 6 moneys in the grant program fund shall be credited to the grant 7 program fund. 8 d. Notwithstanding section 8.33, unencumbered and 9 unobligated moneys remaining in the grant program fund at the 10 close of each fiscal year shall not revert but shall remain 11 available in the grant program fund for the purposes of this 12 section. 13 e. Any owner or operator of a location where petroleum is 14 marketed in this state is eligible to apply for and receive 15 funding from the grant program. 16 4. The grant program fund shall be administered by the 17 board. 18 5. Moneys in the grant program fund are appropriated to and 19 shall be used by the board as provided in this subsection. 20 a. Up to fifty thousand dollars shall be allocated each 21 fiscal year to the board to support the administration of 22 the grant program. The board may use up to one and one-half 23 percent of the moneys in the grant program fund each fiscal 24 year to market the grant program. Otherwise the moneys shall 25 not be transferred, used, obligated, appropriated, or otherwise 26 encumbered except to allocate as grants by the board in 27 accordance with this subsection. 28 b. The board shall establish a grant program to award grants 29 from moneys in the grant program fund to eligible applicants to 30 replace underground storage tank infrastructure, including but 31 not limited to tanks, lines, pipes, hoses, connections, seals, 32 and pumps. 33 (1) The board shall adopt rules pursuant to chapter 17A 34 for implementation and administration of the grant program and 35 -2- LSB 1613SV (2) 86 tr/nh 2/ 4

S.F. 489 grant program fund. 1 (2) At a minimum, replacement infrastructure must be listed 2 by an independent testing laboratory as compatible for use with 3 ethanol blended gasoline classified as E-85. 4 (3) An eligible applicant may be awarded a grant worth up 5 to fifty percent of the cost to replace infrastructure, with 6 a maximum grant of one hundred thousand dollars. The total 7 grants awarded to an eligible applicant shall not exceed one 8 million dollars per calendar year. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill creates an underground storage tank cost share 13 grant program and a corresponding fund within the state 14 treasury in Code chapter 455G. The bill reduces the amount 15 deposited in the Iowa comprehensive petroleum underground 16 storage tank fund each quarter from $3.5 million to $1.75 17 million. The grant program fund shall be credited $1.75 18 million per quarter from the statutory allocations fund 19 pursuant to Code section 321.145. The grant program fund shall 20 be administered by the Iowa comprehensive petroleum underground 21 storage tank fund board. The grant program funds shall be 22 allocated as grants by the board to replace underground storage 23 tank infrastructure, including but not limited to tanks, lines, 24 pipes, hoses, connections, seals, and pumps. At a minimum, 25 replacement infrastructure must be listed by an independent 26 testing laboratory as compatible for use with ethanol blended 27 gasoline classified as E-85. 28 Any owner or operator of a location where petroleum is 29 marketed in this state is eligible to apply for and receive 30 funding from the grant program. An eligible applicant may be 31 awarded a grant worth up to 50 percent of the cost to replace 32 infrastructure, with a maximum grant of $100,000. Total grants 33 awarded to an eligible applicant shall not exceed $1 million 34 per calendar year. The bill requires the Iowa comprehensive 35 -3- LSB 1613SV (2) 86 tr/nh 3/ 4

S.F. 489 petroleum underground storage tank fund board to adopt rules to 1 implement and administer the grant program and fund. 2 The bill extends the duration of the environmental 3 protection charge on petroleum diminution collected from 4 underground storage tank owners or operators until June 30, 5 2026. 6 -4- LSB 1613SV (2) 86 tr/nh 4/ 4