Text: HSB00296 Text: HSB00298 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 423.24, subsection 1, paragraph a, Code 1 2 1995, is amended to read as follows: 1 3 a. Twenty-five percent of all such revenue, up to a 1 4 maximum ofthreefour millioneighttwo hundred twenty-five 1 5 thousand dollars per quarter, shall be deposited into and 1 6 credited to the Iowa comprehensive petroleum underground 1 7 storage tank fund created in section 455G.3, and the moneys so 1 8 deposited are a continuing appropriation for expenditure under 1 9 chapter 455G, and moneys so appropriated shall not be used for 1 10 other purposes. 1 11 Sec. 2. Section 424.3, subsection 5, Code 1995, is amended 1 12 to read as follows: 1 13 5. The cost factor is an amount per gallon of diminution 1 14 determined by the board pursuant to this subsection. The 1 15 board, after public hearing, shall determine, or shall adjust, 1 16 the cost factor to the greater of either an amount reasonably 1 17 calculated to generate an annual average revenue, year to 1 18 year, offifteensixteen millionthreenine hundred thousand 1 19 dollars from the charge, excluding penalties and interest, or 1 20 ten dollars. The board may determine or adjust the cost 1 21 factor at any time but shall at minimum determine the cost 1 22 factor at least once each fiscal year. 1 23 Sec. 3. Section 455B.304, subsection 15, Code 1995, is 1 24 amended by striking the subsection. 1 25 Sec. 4. Section 455B.474, subsection 1, paragraph d, 1 26 subparagraph (2), subparagraph subdivision (a), Code 1995, is 1 27 amended by striking the subparagraph subdivision and inserting 1 28 in lieu thereof the following: 1 29 (a) A site shall be considered high risk when it is 1 30 determined that contamination from the site presents an 1 31 unreasonable risk to human health or sensitive environmental 1 32 resources under any of the following conditions: 1 33 Sec. 5. Section 455B.474, subsection 1, paragraph d, 1 34 subparagraph (2), Code 1995, is amended by adding the 1 35 following new subparagraph subdivision: 2 1 NEW SUBPARAGRAPH SUBDIVISION. (e) A site cleanup report 2 2 which classifies a site as either high risk, low risk, or no 2 3 action required, or a corrective action plan which determines 2 4 the extent of the corrective action response to be taken on a 2 5 site, submitted by a registered groundwater professional, 2 6 shall be accepted by the department and shall be determinative 2 7 of the appropriate classification and corrective action 2 8 response requirements of the site. However, if the report or 2 9 plan is found to be inaccurate or incomplete, or if based upon 2 10 information in the report the risk classification of the site 2 11 or the appropriate corrective action response cannot be 2 12 reasonably determined by the department based upon industry 2 13 standards, the department shall work with the groundwater 2 14 professional to obtain the additional information necessary to 2 15 appropriately classify or determine the corrective action 2 16 response requirements. Any false statement or 2 17 misrepresentation made by a registered groundwater 2 18 professional which results in a mistaken classification of a 2 19 site or results in an improper or incorrect corrective action 2 20 response shall be considered a serious misdemeanor and shall 2 21 result in revocation of the groundwater professional's 2 22 registration under section 455G.18. 2 23 Sec. 6. Section 455B.474, subsection 1, paragraph d, Code 2 24 1995, is amended by adding the following new subparagraph: 2 25 NEW SUBPARAGRAPH. (3) For purposes of classifying a site 2 26 as either low risk or no action required, the department shall 2 27 rely upon the example tier one risk-based screening level 2 28 look-up table of the ASTM standard, ES38-94, or other look-up 2 29 table as determined by the department by rule. "ASTM 2 30 standard" means the American society for testing and materials 2 31 risk-based corrective action standard. 2 32 Sec. 7. Section 455B.474, subsection 1, paragraph f, 2 33 subparagraphs (4), (5), and (6), Code 1995, are amended by 2 34 striking the subparagraphs and inserting in lieu thereof the 2 35 following: 3 1 (4) High risk sites shall be addressed pursuant to a 3 2 corrective action plan, as submitted by a groundwater 3 3 professional and as accepted by the department. The 3 4 corrective action plan shall utilize industry standards in 3 5 determining the most appropriate response to the high risk 3 6 conditions presented and the extent of remediation which will 3 7 be required to reclassify the site to a low risk site. When 3 8 determining the appropriate response the groundwater 3 9 professional and the department shall take into consideration 3 10 industry standards and the following: 3 11 (a) Reasonable potential exposure scenarios based upon 3 12 residential, commercial, or industrial use or other predefined 3 13 industry accepted scenarios. 3 14 (b) Exposure pathway characterizations including 3 15 contaminant sources, transport mechanisms, and exposure 3 16 pathways. 3 17 (c) Affected receptors, if any, and exposure scenarios 3 18 based on current and projected reasonable use scenarios. 3 19 (d) Whether the site is an immediate threat, short-term 3 20 threat, or a long-term threat to human health, safety, or 3 21 sensitive environmental receptors utilizing ASTM standard, 3 22 ES38-94, or other standards as adopted by rule by the 3 23 department. For purposes of this subparagraph subdivision, 3 24 short-term threat means two years or less and long-term threat 3 25 means greater than two years. 3 26 (5) Additional remediation shall not be required on a site 3 27 if it can be documented that the site does not present an 3 28 immediate threat to human health, safety, or sensitive 3 29 environmental receptors, or a cancer risk at the point of 3 30 exposure of 1E-06 for residential areas or 1E-04 for 3 31 commercial and industrial areas, or other less stringent 3 32 standards as approved by the department taking into 3 33 consideration relevant site specific factors, such as the 3 34 feasibility of available technologies, existing background 3 35 contaminant levels, current and planned future reasonable 4 1 uses, ecological, aesthetic, and other relevant criteria, and 4 2 the applicability of engineering and institutional controls. 4 3 (6) Sites shall be monitored pursuant to a monitoring plan 4 4 as determined by the department consistent with industry 4 5 standards. Monitoring shall not be required on a site which 4 6 has received a no further action certificate, or on a site 4 7 which the department has determined, based upon substantial 4 8 evidence, will not present high risk characteristics now or in 4 9 the future. 4 10 Sec. 8. Section 455B.474, subsection 1, paragraph h, Code 4 11 1995, is amended by striking the paragraph and inserting in 4 12 lieu thereof the following: 4 13 h. Issuing a no further action certificate or a monitoring 4 14 certificate to the owner of an underground storage tank. 4 15 (1) A no further action certificate shall be issued by the 4 16 department for a site which has been certified by a 4 17 groundwater professional and accepted by the department to be 4 18 a site that does not present high risk characteristics and 4 19 will not present high risk characteristics in the future or a 4 20 site upon which a corrective action plan has been completed. 4 21 (2) A monitoring certificate shall be issued by the 4 22 department for a site which has been certified by a 4 23 groundwater professional and accepted by the department to be 4 24 a site that does not present high risk conditions, requiring 4 25 remediation, but presents conditions sufficient to warrant 4 26 monitoring of the site. 4 27 (3) A certificate shall be issued upon the request of the 4 28 owner and may be recorded with the county recorder. A person 4 29 issued a certificate or a subsequent purchaser shall not be 4 30 required to perform further corrective action solely because 4 31 action standards are changed at a later date. A certificate 4 32 shall not prevent the department from ordering corrective 4 33 action of a new release. 4 34 Sec. 9. Section 455G.9, subsection 5, Code 1995, is 4 35 amended by striking the subsection. 5 1 Sec. 10. Section 455G.10, subsections 1, 3, 5, and 6, Code 5 2 1995, are amended to read as follows: 5 3 1. The board may create a loan guarantee account to offer 5 4 loan guaranteesto small businessesfor the following 5 5 purposes: 5 6 a. All or a portion of the expenses incurred by the 5 7 applicantsmall businessfor its share of corrective action. 5 8 b. Tank and monitoring equipment improvements necessary to 5 9 satisfy federal technical standards to become insurable. 5 10 c. Capital improvements made on a tank site. 5 11 d. Purchase of a site contaminated by a leaking 5 12 underground storage tank. 5 13 Moneys from the revenues derived from the use tax imposed 5 14 under chapter 423 may be used to fund the loan guarantee 5 15 account according to the fund budget as approved by the board. 5 16 Loan guarantees shall be made on terms and conditions 5 17 determined by the board to be reasonable, except that in no 5 18 case may a loan guarantee satisfy more than ninety percent of 5 19 the outstanding balance of a loan. 5 20 3. The board shall administer the loan guarantee account. 5 21 The board may delegate administration of the account, provided 5 22 that the administrator is subject to the board's direct 5 23 supervision and direction. The board shall adopt rules 5 24 regarding the provision of loan guaranteesto financially5 25qualified small businesses for the purposes permitted by5 26subsection 1. The board may impose such terms and conditions 5 27 as it deems reasonable and necessary or appropriate. The 5 28 board shall take appropriate steps to publicize the existence 5 29 of the loan account. 5 30The benefits under this section shall be available to small5 31businesses entering into the petroleum business.5 32 5. As a condition of eligibility for financial assistance 5 33 from the loan guarantee account,a small businessan applicant 5 34 shall demonstrate satisfactory attempts to obtain financing 5 35 from private lending sources. When applying for loan 6 1 guarantee account assistance, thesmall businessapplicant 6 2 shall demonstrate good faith attempts to obtain financing from 6 3 at least two financial institutions. The board may first 6 4 refer a tank owner or operator to a financial institution 6 5 eligible to participate in the fund under section 455G.16; 6 6 however, if no such financial institution is currently willing 6 7 or able to make the required loan, thesmall business6 8 applicant shall determine if any of the previously contacted 6 9 financial institutions would make the loan in participation 6 10 with the loan guarantee account. The loan guarantee account 6 11 may offer to guarantee a loan, or provide other forms of 6 12 financial assistance to facilitate a private loan. 6 13 6. The maturity for each financial assistance package made 6 14 by the board pursuant to this chapter shall be the shortest 6 15 feasible term commensurate with the repayment ability of the 6 16small businessborrower. However, the maturity date of a loan 6 17 shall not exceed twenty years and the guarantee is ineffective 6 18 beyond the agreed term of the guarantee or twenty years from 6 19 initiation of the guarantee, whichever term is shorter. 6 20 Sec. 11. Section 455G.10, subsection 4, Code 1995, is 6 21 amended by striking the subsection. 6 22 Sec. 12. Section 455G.11, subsection 5, paragraph a, Code 6 23 1995, is amended by striking the paragraph and inserting in 6 24 lieu thereof the following: 6 25 a. The payment of claims filed prior to the effective date 6 26 of any future repeal, against the insurance account until 6 27 moneys in the account are exhausted. Upon exhaustion of the 6 28 moneys in the account, any remaining claims shall be invalid. 6 29 Sec. 13. Section 455G.11, subsection 10, paragraph a, Code 6 30 1995, is amended to read as follows: 6 31 a. ADDITIONAL CLEANUP REQUIREMENTS. An owner, operator, 6 32 landowner, or financial institution may purchase insurance 6 33 coverage under the insurance account to cover environmental 6 34 damage caused by a tank in the event that governmental action 6 35 requires additional cleanup beyondaction level standards in7 1effectbeyond that which was required at the time a 7 2certificate of clean was issued under section 455B.304,7 3subsection 15,no further action certificate or a monitoring 7 4 certificate was issued under section 455B.474, subsection 1, 7 5 paragraph "h". 7 6 Sec. 14. Section 455G.11, subsection 10, paragraph b, 7 7 subparagraphs (1) and (4), Code 1995, are amended to read as 7 8 follows: 7 9 (1) Acertificate of clean has been issued for the site7 10under section 455B.304, subsection 15,no further action 7 11 certificate or a monitoring certificate has been issued for 7 12 the site under section 455B.474, subsection 1, paragraph "h". 7 13 Property transfer coverage shall be effective on a monitored 7 14 site only for the time period for which monitoring is allowed 7 15 as specified in the monitoring certificate. A site which has 7 16 not been issued a certificate of clean or a monitoring 7 17 certificate shall not be eligible for property transfer 7 18 coverage. 7 19 (4) The additional cleanup isrequired to meet new7 20corrective action level standardsmandated by governmental 7 21 action requiring cleanup beyond that which was required at the 7 22 time a no further action certificate or a monitoring 7 23 certificate under section 455B.474, subsection 1, paragraph 7 24 "h", was issued for a site. 7 25 Sec. 15. Section 455G.11, subsection 10, paragraph d, 7 26 subparagraph (5), Code 1995, is amended by striking the 7 27 subparagraph. 7 28 Sec. 16. Section 455G.11, subsection 10, paragraph h, Code 7 29 1995, is amended by striking the paragraph. 7 30 Sec. 17. Section 455G.12, Code 1995, is amended to read as 7 31 follows: 7 32 455G.12 BOARD AUTHORITY FOR PRIORITIZATION. 7 33 If the board determines that, within the realm of sound 7 34 business judgment and practice, prioritization of assistance 7 35 is necessary in light of funds available for remedial 8 1 benefits, loan guarantees or insurance coverage, the board may 8 2 develop rules for assistance or coverage prioritization based 8 3 upon adherence or planned adherence of the owner or operator 8 4 to higher than minimum environmental protection and safety 8 5 compliance considerations. 8 6 Prior to the adoption of prioritization rules, the board 8 7 shall at minimum review the following issues: 8 8 1. The positive environmental impact of assistance 8 9 prioritization. 8 10 2. The economic feasibility, including the availability of 8 11 private financing, for an owner or operator to obtain priority 8 12 status. 8 13 3. Any negative impact on Iowa's rural petroleum 8 14 distribution network which could result from prioritization. 8 15 4. Any similar prioritization systems in use by the 8 16 private financing or insurance markets in this state, 8 17 including terms, conditions, or exclusions. 8 18 5. The intent of this chapter that the board shall 8 19 maximize the availability of remedial benefits for small 8 20 businesses, reasonably priced, financially sound insurance 8 21 coverage or loan guarantee assistance. 8 22 Sec. 18. STUDY. The Iowa comprehensive petroleum 8 23 underground storage tank fund board shall study the issue of 8 24 selling all or a portion of the insurance program under 8 25 section 455G.11. The board shall provide the general assembly 8 26 with recommendations regarding sale of the insurance fund by 8 27 January 1, 1996. The recommendations shall include an 8 28 analysis of the use of the insurance reserve account. 8 29 Sec. 19. DEPARTMENT RULES. The department of natural 8 30 resources shall use existing ASTM standards until such times 8 31 as the department adopts rules implementing the changes to 8 32 section 455B.474 contained in this Act. 8 33 Sec. 20. EFFECTIVE DATE. This Act, being deemed of 8 34 immediate importance, takes effect upon enactment. 8 35 EXPLANATION 9 1 This bill makes several changes to the underground storage 9 2 tank program. 9 3 1. Environmental protection charge. The bill amends 9 4 sections 423.24 and 424.3 to increase the amount of the 9 5 environmental protection charge which is allocated to the 9 6 underground storage tank fund. The bill does not increase the 9 7 environmental protection charge. The current statutory 9 8 language limits the amount which is deposited in the 9 9 underground storage tank fund to $3,825,000 per quarter or 9 10 $15,300,000 per year. This bill increases that amount to 9 11 $4,225,000 per quarter or $16,900,000 per year. 9 12 2. Site classifications and cleanup. The bill makes 9 13 several changes to the current site cleanup classification and 9 14 requirements by requiring that sites be evaluated and 9 15 remediated based upon national risk-based corrective action 9 16 standards developed by the American Society for Testing and 9 17 Materials (ASTM). The bill takes the current designation of 9 18 high risk sites and adds overriding criteria requiring an 9 19 initial determination of unreasonable risk. The bill states 9 20 that a site shall be considered high risk when it is 9 21 determined that contamination from the site presents an 9 22 unreasonable risk to human health or to sensitive 9 23 environmental resources if contamination at the site is 9 24 affecting or likely to affect groundwater which is used as a 9 25 source water for public or private water supplies, to a level 9 26 rendering them unsafe for human consumption, if contamination 9 27 is actually affecting or is likely to affect surface water 9 28 bodies to a level where surface water quality standards will 9 29 be exceeded, or if harmful or explosive concentrations of 9 30 petroleum substances or vapors affecting structures or utility 9 31 installations exist or are likely to occur. A site which does 9 32 not meet this criteria is classified as either a low risk or 9 33 no further action site and that classification is to be based 9 34 upon risk-based screening levels contained in the ASTM 9 35 standards. 10 1 The bill makes major changes in determining the extent of 10 2 cleanup required on a high risk site. It requires that when 10 3 determining the appropriate cleanup response on a high risk 10 4 site the groundwater professional and department shall take 10 5 into account industry standards and reasonable potential 10 6 exposure scenarios based upon residential, commercial, or 10 7 industrial use; exposure pathway characterizations, including 10 8 contaminant sources, transport mechanisms, and exposure 10 9 pathways; affected receptors, based on current and projected 10 10 reasonable use scenarios; and whether the site is an 10 11 immediate, short-term, or long-term threat to human health, 10 12 safety, or sensitive environmental receptors utilizing, ASTM 10 13 standard, ES38-94, which is the emergency standard guide for 10 14 risk-based corrective action applied at petroleum release 10 15 sites. 10 16 The bill provides that additional remediation shall not be 10 17 required on a site if it can be documented that the site does 10 18 not present an immediate threat to human health, safety, or 10 19 sensitive environmental receptors, or a cancer risk at the 10 20 point of exposure of 1E-06 for residential areas or 1E-04 for 10 21 commercial and industrial areas, or other less stringent 10 22 standards as approved by the department taking into account 10 23 relevant site specific factors. Those factors are the 10 24 feasibility of available technologies, existing background 10 25 contaminant levels, current and planned future reasonable 10 26 uses, ecological, aesthetic, and other relevant criteria and 10 27 the applicability of engineering and institutional controls. 10 28 1E-06 is a cancer risk which is calculated to be one in one 10 29 million and 1E-04 is a cancer risk which is calculated to be 10 30 one in ten thousand. 10 31 The bill strikes the current monitoring schedule and 10 32 replaces it with flexible authority given to the department to 10 33 monitor as warranted and as consistent with industry 10 34 standards. The bill provides that monitoring shall not be 10 35 required on a site that has been issued a no further action 11 1 certificate or on a site which, based upon substantial 11 2 evidence, has been determined by the department not to present 11 3 high risk characteristics now or in the future. 11 4 The bill strikes references to the current clean 11 5 certificate and replaces it with a no further action 11 6 certificate for a site which has been certified by a 11 7 groundwater professional and accepted by the department to be 11 8 a site that does not present high risk characteristics now or 11 9 in the future or a site upon which corrective action has been 11 10 completed in accordance with the corrective action plan. 11 11 Finally, the bill requires that the department must accept 11 12 a site cleanup report or a corrective action plan submitted by 11 13 a groundwater professional unless the report is found to be 11 14 inaccurate or incomplete or if based upon the information in 11 15 the report or plan the department cannot reasonably determine 11 16 the site classification or corrective action response. The 11 17 department is required to determine the proper classification 11 18 of the site and the corrective action response based upon the 11 19 certification of the groundwater professional. A false 11 20 statement or misrepresentation made by a groundwater 11 21 professional which results in a mistaken classification of a 11 22 site or an improper or incorrect corrective action response 11 23 shall be a serious misdemeanor and shall result in revocation 11 24 of the groundwater professionals registration under section 11 25 455G.18. A serious misdemeanor is punishable by a fine of at 11 26 least $250 but not to exceed $1,500 and imprisonment not to 11 27 exceed one year. 11 28 3. Prioritization. The underground storage tank fund 11 29 board has the authority under section 455G.9 to prioritize 11 30 remedial benefits if funds are not available to immediately 11 31 settle all current claims. The board has exercised this 11 32 authority by adopting administrative rules which prioritize 11 33 benefits so that the first priority for moneys is allocated to 11 34 high risk sites with small business owners. A small business 11 35 is defined in section 455G.2 to mean a business that is 12 1 independently owner and operated, with no more than 12 tanks 12 2 at no more than two different tank sites and with a net worth 12 3 of $400,000 or less. This administrative rule also excludes 12 4 political subdivisions who were otherwise eligible for 12 5 remedial benefits. This bill strikes the board's authority to 12 6 prioritize remedial benefits under the remedial account 12 7 provisions of section 455G.9, but gives the board authority to 12 8 prioritize in the same manner and with the same criteria as 12 9 authorized for prioritizing loan guarantees or insurance 12 10 coverage under section 455G.12. This prioritization schema 12 11 lists the positive environmental impact of assistance 12 12 prioritization as the number one priority. 12 13 4. Marketability. The bill amends the loan guarantee 12 14 account under section 455G.10 and the property transfer 12 15 insurance coverage offered under section 455G.11 to promote 12 16 marketability of contaminated property. The loan guarantee 12 17 program offers a 90 percent guarantee on behalf of small 12 18 businesses for the payment of corrective action costs or 12 19 upgrades. This bill expands the coverage by striking 12 20 references to small businesses, thus allowing anyone to apply 12 21 for a loan guarantee and by providing that a loan guarantee 12 22 may be granted for capital improvements on a tank site or for 12 23 purchase of property contaminated by a leaking underground 12 24 storage tank. 12 25 Property transfer insurance is currently provided to cover 12 26 environmental damage caused by a tank in the event that 12 27 governmental action required additional cleanup beyond action 12 28 level standards in effect at the time a certificate of clean 12 29 was issued or a monitoring certificate was issued. This bill 12 30 expands the coverage by providing that any cleanup beyond that 12 31 which was required at the time a no further action certificate 12 32 or a monitoring certificate was issued shall be covered by the 12 33 policy instead of requiring that action standards change in 12 34 order to receive coverage. In addition, the bill strikes a 12 35 provision conditioning coverage upon continued approval by the 13 1 United States environmental protection agency. 13 2 5. Insurance Account. The bill strikes a provision 13 3 relating to repeal of the insurance account and requires the 13 4 board to study the issue of selling all or a portion of the 13 5 insurance program under section 455G.11. The study is to be 13 6 provided to the general assembly by January 1, 1996 and shall 13 7 include an analysis of the use of the insurance reserve 13 8 account. 13 9 The bill is effective upon enactment. 13 10 LSB 1599XL 76 13 11 js/cf/24
Text: HSB00296 Text: HSB00298 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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