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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. (1) Twenty-five percent of all such revenue, up to a 1 4 maximum ofthreefour millioneighttwo hundredtwenty-five1 5 fifty thousand dollars per quarter, shall be deposited into 1 6 and 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 (2) Four million two hundred fifty thousand dollars per 1 12 quarter, shall be deposited into and credited to the Iowa 1 13 comprehensive petroleum underground storage tank marketability 1 14 fund created in section 455G.21, and the moneys so deposited 1 15 are a continuing appropriation to be expended in accordance 1 16 with section 455G.21, and the moneys shall not be used for 1 17 other purposes. 1 18 Sec. 2. Section 424.3, subsection 5, Code 1995, is amended 1 19 to read as follows: 1 20 5. a. The cost factor is an amount per gallon of 1 21 diminution determined by the board pursuant to this 1 22 subsection. The board, after public hearing, shall determine, 1 23 or shall adjust, the cost factor to the greater of either an 1 24 amount reasonably calculated to generate an annual average 1 25 revenue, year to year, offifteenseventeen millionthree1 26hundred thousanddollars from the charge, excluding penalties 1 27 and interest, or ten dollars. The board may determine or 1 28 adjust the cost factor at any time but shall at minimum 1 29 determine the cost factor at least once each fiscal year. 1 30 b. Beginning July 1, 1995, the board shall adjust the cost 1 31 factor to the greater of either an amount reasonably 1 32 calculated to generate an annual average revenue of seventeen 1 33 million dollars from the charge, excluding penalties and 1 34 interest, or ten dollars. The revenue generated in this 1 35 paragraph shall be in addition to the revenue generated 2 1 pursuant to paragraph "a". 2 2 Sec. 3. Section 455B.304, subsection 15, Code 1995, is 2 3 amended by striking the subsection. 2 4 Sec. 4. Section 455B.471, subsection 2, Code 1995, is 2 5 amended by striking the subsection and inserting in lieu 2 6 thereof the following: 2 7 2. "Corrective action" means an action taken to reduce, 2 8 minimize, eliminate, clean up, control, or monitor a release 2 9 to protect the public health and safety or the environment. 2 10 Corrective action includes, but is not limited to, excavation 2 11 of an underground storage tank for purposes of repairing a 2 12 leak or removal of a tank, removal of contaminated soil, 2 13 disposal or processing of contaminated soil, cleansing of 2 14 groundwaters or surface waters, natural biodegradation, 2 15 institutional controls, and site management practices. 2 16 Corrective action does not include replacement of an 2 17 underground storage tank. Corrective action specifically 2 18 excludes third-party liability. 2 19 Sec. 5. Section 455B.474, subsection 1, paragraph d, 2 20 subparagraph (2), subparagraph subdivision (a), unnumbered 2 21 paragraph 1, Code 1995, is amended by striking the unnumbered 2 22 paragraph and inserting in lieu thereof the following: 2 23 A site shall be considered high risk when it is determined 2 24 that contamination from the site presents an unreasonable risk 2 25 to public health and safety or the environment under any of 2 26 the following conditions: 2 27 Sec. 6. Section 455B.474, subsection 1, paragraph d, 2 28 subparagraph (2), subparagraph subdivision (d), Code 1995, is 2 29 amended by striking the subparagraph subdivision and inserting 2 30 in lieu thereof the following: 2 31 (d) For purposes of reclassifying a site as either low 2 32 risk or no action required, the department shall rely upon the 2 33 example tier one risk-based screening level look-up table of 2 34 the American society for testing of materials' emergency 2 35 standard, ES38-94, or other look-up table as determined by the 3 1 department by rule. 3 2 Sec. 7. Section 455B.474, subsection 1, paragraph d, 3 3 subparagraph (2), Code 1995, is amended by adding the 3 4 following new subparagraph subdivision: 3 5 NEW SUBPARAGRAPH SUBDIVISION. (e) A site cleanup report 3 6 which classifies a site as either high risk, low risk, or no 3 7 action required shall be submitted by a groundwater 3 8 professional to the department with a certification that the 3 9 report complies with the provisions of this chapter and rules 3 10 adopted by the department. The report shall be determinative 3 11 of the appropriate classification of the site. However, if 3 12 the report is found to be inaccurate or incomplete, and if 3 13 based upon information in the report the risk classification 3 14 of the site cannot be reasonably determined by the department 3 15 based upon industry standards, the department shall work with 3 16 the groundwater professional to obtain the additional 3 17 information necessary to appropriately classify the site. A 3 18 groundwater professional who knowingly or intentionally makes 3 19 a false statement or misrepresentation which results in a 3 20 mistaken classification of a site shall be guilty of a serious 3 21 misdemeanor and shall have the groundwater professional's 3 22 certification revoked under section 455G.18. 3 23 Sec. 8. Section 455B.474, subsection 1, paragraph f, 3 24 subparagraphs (4), (5), and (6), Code 1995, are amended by 3 25 striking the subparagraphs and inserting in lieu thereof the 3 26 following: 3 27 (4) High risk sites shall be addressed pursuant to a 3 28 corrective action design report, as submitted by a groundwater 3 29 professional and as accepted by the department. The 3 30 corrective action design report shall determine the most 3 31 appropriate response to the high risk conditions presented. 3 32 The appropriate corrective action response shall be based upon 3 33 industry standards and shall take into account the following: 3 34 (a) The extent of remediation required to reclassify the 3 35 site as a low risk site. 4 1 (b) The most appropriate exposure scenarios based upon 4 2 residential, commercial, or industrial use or other predefined 4 3 industry accepted scenarios. 4 4 (c) Exposure pathway characterizations including 4 5 contaminant sources, transport mechanisms, and exposure 4 6 pathways. 4 7 (d) Affected human or environmental receptors and exposure 4 8 scenarios based on current and projected use scenarios. 4 9 (e) Risk-based corrective action assessment principles 4 10 which identify the risks presented to the public health and 4 11 safety or the environment by each release in a manner that 4 12 will protect the public health and safety or the environment 4 13 using a tiered procedure consistent with the American society 4 14 for testing of materials' emergency standard, ES38-94. 4 15 (f) Other relevant site specific factors such as the 4 16 feasibility of available technologies, existing background 4 17 contaminant levels, current and planned future uses, 4 18 ecological, aesthetic, and other relevant criteria, and the 4 19 applicability and availability of engineering and 4 20 institutional controls. 4 21 (5) A corrective action design report, submitted by a 4 22 groundwater professional shall be accepted by the department 4 23 and shall be primarily relied upon by the department to 4 24 determine the corrective action response requirements of the 4 25 site. However, if the corrective action design report is 4 26 found to be inaccurate or incomplete, and if based upon 4 27 information in the report the appropriate corrective action 4 28 response cannot be reasonably determined by the department 4 29 based upon industry standards, the department shall work with 4 30 the groundwater professional to obtain the additional 4 31 information necessary to appropriately determine the 4 32 corrective action response requirements. A groundwater 4 33 professional who knowingly or intentionally makes a false 4 34 statement or misrepresentation which results in an improper or 4 35 incorrect corrective action response shall be guilty of a 5 1 serious misdemeanor and shall have the groundwater 5 2 professional's certification revoked under section 455G.18. 5 3 (6) Low risk sites shall be monitored as deemed necessary 5 4 by the department consistent with industry standards. 5 5 Monitoring shall not be required on a site which has received 5 6 a no further action certificate. 5 7 Sec. 9. Section 455B.474, subsection 1, paragraph f, Code 5 8 1995, is amended by adding the following new subparagraphs: 5 9 NEW SUBPARAGRAPH. (6A) Corrective action, for the release 5 10 of a regulated substance from an underground storage tank 5 11 required to maintain financial responsibility under chapter 5 12 455G, which occurs on or after January 1, 1996, shall be in 5 13 accordance with corrective action rules of the department 5 14 existing on January 1, 1995, rather than pursuant to this 5 15 paragraph "f". 5 16 NEW SUBPARAGRAPH. (6B) An owner or operator may elect to 5 17 proceed with additional corrective action on the site. 5 18 However, any action taken in addition to that required 5 19 pursuant to this paragraph "f" shall be solely at the expense 5 20 of the owner or operator and shall not be considered 5 21 corrective action for purposes of section 455G.9. 5 22 Sec. 10. Section 455B.474, subsection 1, paragraph h, Code 5 23 1995, is amended by striking the paragraph and inserting in 5 24 lieu thereof the following: 5 25 h. Issuing a no further action certificate or a monitoring 5 26 certificate to the owner or operator of an underground storage 5 27 tank site. 5 28 (1) A no further action certificate shall be issued by the 5 29 department for a site which has been classified as a no 5 30 further action site or which has been reclassified pursuant to 5 31 completion of a corrective action plan or monitoring plan to 5 32 be a no further action site. 5 33 (2) A monitoring certificate shall be issued by the 5 34 department for a site which does not require remediation, but 5 35 does require monitoring of the site. 6 1 (3) A certificate may be recorded with the county 6 2 recorder. The owner or operator of a site who has been issued 6 3 a certificate under this paragraph "h" or a subsequent 6 4 purchaser of the site shall not be required to perform further 6 5 corrective action solely because action standards are changed 6 6 at a later date. A certificate shall not prevent the 6 7 department from ordering corrective action of a new release. 6 8 Sec. 11. Section 455G.3, subsection 1, Code 1995, is 6 9 amended to read as follows: 6 10 1. The Iowa comprehensive petroleum underground storage 6 11 tank fund is created as a separate fund in the state treasury, 6 12 and any funds remaining in the fund at the end of each fiscal 6 13 year shall not revert to the general fund but shall remain in 6 14 the Iowa comprehensive petroleum underground storage tank 6 15 fund. Interest or other income earned by the fund shall be 6 16 deposited in the fund. The fund shall include moneys credited 6 17 to the fund under this section and sections 423.24, subsection 6 18 1, paragraph "a", subparagraph (1), 455G.8, 455G.9, 455G.10, 6 19 455G.11, and 455G.13, and other funds which by law may be 6 20 credited to the fund. The moneys in the fund are appropriated 6 21 to and for the purposes of the board as provided in this 6 22 chapter. Amounts in the fund shall not be subject to 6 23 appropriation for any other purpose by the general assembly, 6 24 but shall be used only for the purposes set forth in this 6 25 chapter. The treasurer of state shall act as custodian of the 6 26 fund and disburse amounts contained in it as directed by the 6 27 board including automatic disbursements of funds as received 6 28 pursuant to the terms of bond indentures and documents and 6 29 security provisions to trustees and custodians. The treasurer 6 30 of state is authorized to invest the funds deposited in the 6 31 fund at the direction of the board and subject to any 6 32 limitations contained in any applicable bond proceedings. The 6 33 income from such investment shall be credited to and deposited 6 34 in the fund. The fund shall be administered by the board 6 35 which shall make expenditures from the fund consistent with 7 1 the purposes of the programs set out in this chapter without 7 2 further appropriation. The fund may be divided into different 7 3 accounts with different depositories as determined by the 7 4 board and to fulfill the purposes of this chapter. 7 5 Sec. 12. Section 455G.3, subsection 3, Code 1995, is 7 6 amended by adding the following new paragraph: 7 7 NEW PARAGRAPH. d. To establish a marketability fund for 7 8 the purposes as stated in section 455G.21. 7 9 Sec. 13. Section 455G.6, subsection 4, Code 1995, is 7 10 amended to read as follows: 7 11 4. Grant a mortgage, lien, pledge, assignment, or other 7 12 encumbrance on one or more improvements, revenues, asset of 7 13 right, accounts, or funds established or received in 7 14 connection with the fund, including revenues derived from the 7 15 use taximposedunderchapter 423section 423.24, subsection 7 16 1, paragraph "a", subparagraph (1), and deposited in the fund 7 17 or an account of the fund. 7 18 Sec. 14. Section 455G.8, subsection 2, Code 1995, is 7 19 amended to read as follows: 7 20 2. USE TAX. The revenues derived from the use tax imposed 7 21 under chapter 423. The proceeds of the use tax under section 7 22 423.24, subsection 1, paragraph "a", subparagraph (1), shall 7 23 be allocated, consistent with this chapter, among the fund's 7 24 accounts, for debt service and other fund expenses, according 7 25 to the fund budget, resolution, trust agreement, or other 7 26 instrument prepared or entered into by the board or authority 7 27 under direction of the board. The proceeds of the use tax 7 28 under section 423.24, subsection 1, paragraph "a", 7 29 subparagraph (2), shall be allocated in accordance with 7 30 section 455G.21. 7 31 Sec. 15. Section 455G.9, subsection 5, Code 1995, is 7 32 amended by striking the subsection. 7 33 Sec. 16. Section 455G.10, subsections 1, 3, 5, and 6, Code 7 34 1995, are amended to read as follows: 7 35 1. The board may create a loan guarantee account to offer 8 1 loan guaranteesto small businessesfor the following 8 2 purposes: 8 3 a. All or a portion of the expenses incurred by the 8 4 applicantsmall businessfor its share of corrective action. 8 5 b. Tank and monitoring equipment improvements necessary to 8 6 satisfy federal technical standards to become insurable. 8 7 c. Capital improvements made on a tank site. 8 8 d. Purchase of a leaking underground storage tank site. 8 9 Moneys from the revenues derived from the use taximposed8 10 underchapter 423section 423.24, subsection 1, paragraph "a", 8 11 subparagraph (1), may be used to fund the loan guarantee 8 12 account according to the fund budget as approved by the board. 8 13 Loan guarantees shall be made on terms and conditions 8 14 determined by the board to be reasonable, except that in no 8 15 case may a loan guarantee satisfy more than ninety percent of 8 16 the outstanding balance of a loan. 8 17 3. The board shall administer the loan guarantee account. 8 18 The board may delegate administration of the account, provided 8 19 that the administrator is subject to the board's direct 8 20 supervision and direction. The board shall adopt rules 8 21 regarding the provision of loan guaranteesto financially8 22qualified small businesses for the purposes permitted by8 23subsection 1. The board may impose such terms and conditions 8 24 as it deems reasonable and necessary or appropriate. The 8 25 board shall take appropriate steps to publicize the existence 8 26 of the loan account. 8 27The benefits under this section shall be available to small8 28businesses entering into the petroleum business.8 29 5. As a condition of eligibility for financial assistance 8 30 from the loan guarantee account,a small businessan applicant 8 31 shall demonstrate satisfactory attempts to obtain financing 8 32 from private lending sources. When applying for loan 8 33 guarantee account assistance, thesmall businessapplicant 8 34 shall demonstrate good faith attempts to obtain financing from 8 35 at least two financial institutions. The board may first 9 1 refer a tank owner or operator to a financial institution 9 2 eligible to participate in the fund under section 455G.16; 9 3 however, if no such financial institution is currently willing 9 4 or able to make the required loan, thesmall business9 5 applicant shall determine if any of the previously contacted 9 6 financial institutions would make the loan in participation 9 7 with the loan guarantee account. The loan guarantee account 9 8 may offer to guarantee a loan, or provide other forms of 9 9 financial assistance to facilitate a private loan. 9 10 6. The maturity for each financial assistance package made 9 11 by the board pursuant to this chapter shall be the shortest 9 12 feasible term commensurate with the repayment ability of the 9 13small businessborrower. However, the maturity date of a loan 9 14 shall not exceed twenty years and the guarantee is ineffective 9 15 beyond the agreed term of the guarantee or twenty years from 9 16 initiation of the guarantee, whichever term is shorter. 9 17 Sec. 17. Section 455G.11, subsection 3, paragraph c, Code 9 18 1995, is amended to read as follows: 9 19 c. The applicant certifies in writing to the board that 9 20 the tank to be insured will be brought into compliance with 9 21 either paragraph "a" or "b", on or beforeJanuary 1, 19959 22 December 22, 1998, provided that prior to the provision of 9 23 insurance account coverage, the tank site tests release free. 9 24 An owner or operator who fails to comply as certified to the 9 25 board on or beforeJanuary 1, 1995December 22, 1998, shall 9 26 not insure that tank through the insurance account unless and 9 27 until the tank satisfies the requirements of paragraph "a" or 9 28 "b". An owner or operator who fails to comply with either 9 29 paragraph "a" or "b" by October 26, 1993, or who fails to 9 30 enter into a contract on or before October 26, 1993, which, 9 31 upon completion, will bring the owner or operator into 9 32 compliance with either paragraph "a" or "b" byJanuary 1,9 331995, shall payDecember 22, 1998, may be eligible for 9 34 financial assurance under this section but shall be subject to 9 35 an additional surcharge offoureight hundred dollars per tank 10 1 in addition to payment of a premium that is equal to two times 10 2 the cost of the premium required under subsection 4, paragraph 10 3 "g", per insured time period. 10 4 Sec. 18. Section 455G.11, subsection 4, paragraph g, Code 10 5 1995, is amended by adding the following new unnumbered 10 6 paragraph: 10 7 NEW UNNUMBERED PARAGRAPH. Tanks receiving financial 10 8 assurance pursuant to subsection 3, paragraph "c", shall not 10 9 be included in the general tank population for purposes of 10 10 determining actuarially sound premiums under this paragraph. 10 11 Sec. 19. Section 455G.11, subsection 5, paragraph a, Code 10 12 1995, is amended by striking the paragraph and inserting in 10 13 lieu thereof the following: 10 14 a. The payment of claims filed prior to the effective date 10 15 of any future repeal, against the insurance account until 10 16 moneys in the account are exhausted. Upon exhaustion of the 10 17 moneys in the account, any remaining claims shall be invalid. 10 18 Sec. 20. Section 455G.11, subsection 10, paragraph a, Code 10 19 1995, is amended to read as follows: 10 20 a. ADDITIONAL CLEANUP REQUIREMENTS. An owner, operator, 10 21 landowner, or financial institution may purchase insurance 10 22 coverage under the insurance account to cover environmental 10 23 damage caused by a tank in the event that governmental action 10 24 requires additional cleanup beyondaction level standards in10 25effectthat which was required at the time acertificate of10 26clean was issued under section 455B.304, subsection 15,no 10 27 further action certificate or a monitoring certificate was 10 28 issued under section 455B.474, subsection 1, paragraph "h". 10 29 Sec. 21. Section 455G.11, subsection 10, paragraph b, 10 30 subparagraphs (1) and (4), Code 1995, are amended to read as 10 31 follows: 10 32 (1) Acertificate of clean has been issued for the site10 33under section 455B.304, subsection 15,no further action 10 34 certificate or a monitoring certificate has been issued for 10 35 the site under section 455B.474, subsection 1, paragraph "h". 11 1 Property transfer coverage shall be effective on a monitored 11 2 site only for the time period for which monitoring is allowed 11 3 as specified in the monitoring certificate. A site which has 11 4 not been issued a no further action certificateof clearor a 11 5 monitoring certificate shall not be eligible for property 11 6 transfer coverage. 11 7 (4) The additional cleanup isrequired to meet new11 8corrective action level standardsmandated by governmental 11 9 action requiring cleanup beyond that which was required at the 11 10 time a no further action certificate or a monitoring 11 11 certificate under section 455B.474, subsection 1, paragraph 11 12 "h", was issued for a site. 11 13 Sec. 22. Section 455G.11, subsection 10, paragraph d, 11 14 subparagraph (5), Code 1995, is amended by striking the 11 15 subparagraph. 11 16 Sec. 23. Section 455G.11, subsection 10, paragraph h, Code 11 17 1995, is amended by striking the paragraph. 11 18 Sec. 24. Section 455G.18, Code 1995, is amended to read as 11 19 follows: 11 20 455G.18 GROUNDWATER PROFESSIONALS &endash;REGISTRATION11 21 CERTIFICATION. 11 22 1. The department of natural resources shall adopt rules 11 23 pursuant to chapter 17A requiringthatthe certification of 11 24 groundwater professionalsregister with the department of11 25natural resources. The rules shall include provisions for 11 26 suspension or revocation ofregistrationcertification for 11 27 good cause. The administrator of the fund shall administer 11 28 the certification program. 11 29 2. A groundwater professional is a person who provides 11 30 subsurface soil contamination and groundwater consulting 11 31 services or who contracts to perform remediation or corrective 11 32 action services and is one or more of the following: 11 33 a. A person certified by the American institute of 11 34 hydrology, the national water well association, the American 11 35 board of industrial hygiene, or the association of groundwater 12 1 scientists and engineers. 12 2 b. A professional engineer registered in Iowa. 12 3 c. A professional geologist certified by a national 12 4 organization. 12 5 d. Any person who has five years of direct and related 12 6 experience and training as a groundwater professional or in 12 7 the field of earth sciences as of June 10, 1991. 12 8 e. Any other person with a license, certification, or 12 9 registration to practice hydrogeology or groundwater hydrology 12 10 issued by any state in the United States or by any national 12 11 organization, provided that the license, certification, or 12 12 registration process requires, at a minimum, all of the 12 13 following: 12 14 (1) Possession of a bachelor's degree from an accredited 12 15 college. 12 16 (2) Five years of related professional experience. 12 17 3. The department of natural resources may provide for a 12 18 civil penalty of no more than fifty dollars forthefailure to 12 19registerobtain certification. An interested person may 12 20 obtain a list ofregistrantscertified groundwater 12 21 professionals from the department of natural resources. The 12 22 department of natural resources may impose a fee for the 12 23registrationcertification of persons under this section. 12 24 4. Theregistrationcertification of groundwater 12 25 professionals shall not impose liability on the board, the 12 26 department, or the fund for any claim or cause of action of 12 27 any nature, based on the action or inaction of groundwater 12 28 professionalsregisteredcertified pursuant to this section. 12 29 5. Any person who was not previously registered as a 12 30 groundwater professional who requests certification under this 12 31 section, after January 1, 1996, shall be required to attend a 12 32 course of instruction and pass a certification examination. 12 33 The administrator of the fund shall hold certification courses 12 34 and offer examinations. An applicant who successfully passes 12 35 the examination shall be certified as a groundwater 13 1 professional. 13 2 6. A groundwater professional who was registered prior to 13 3 January 1, 1996, shall not be required to attend the course of 13 4 instruction but shall be required to pass the certification 13 5 examination by January 1, 1997. 13 6 7. All groundwater professionals shall be required to 13 7 complete continuing education requirements as adopted by rule 13 8 by the department. 13 9 8. Notwithstanding the certification requirements of this 13 10 section, a site cleanup report or corrective action design 13 11 report submitted by a registered groundwater professional 13 12 shall be accepted by the department in accordance with 13 13 sections 455B.474, subsection 1, paragraph "d", subparagraph 13 14 (2), subparagraph subdivision (e), and paragraph "f", 13 15 subparagraph (5). 13 16 Sec. 25. NEW SECTION. 455G.21 MARKETABILITY FUND. 13 17 1. A marketability fund is created as a separate fund in 13 18 the state treasury under the control of the board. The board 13 19 shall administer the marketability fund. Notwithstanding 13 20 section 8.33, moneys remaining in the marketability fund at 13 21 the end of each fiscal year shall not revert to the general 13 22 fund but shall remain in the marketability fund. The 13 23 marketability fund shall include the following moneys: 13 24 a. Seventeen million dollars per year pursuant to section 13 25 423.24, subsection 1, paragraph "a", subparagraph (2). 13 26 b. Notwithstanding section 12C.7, interest earned by the 13 27 marketability fund or other income specifically allocated to 13 28 the marketability fund. 13 29 2. The marketability fund shall be used for the following 13 30 purposes: 13 31 a. Five million dollars per year shall be allocated to the 13 32 innocent landowners fund which shall be established as a 13 33 separate fund in the state treasury under the control of the 13 34 board. Notwithstanding section 455G.1, subsection 2, benefits 13 35 for the costs of corrective action shall be provided to the 14 1 owner of a petroleum contaminated property, who is not 14 2 otherwise eligible to receive benefits under section 455G.9. 14 3 An owner of a petroleum contaminated property shall be 14 4 eligible for payment of total corrective action costs subject 14 5 to copayment requirements under section 455G.9, subsection 4, 14 6 paragraph "a", subparagraphs (1) and (2). The board may adopt 14 7 rules conditioning receipt of benefits under this paragraph to 14 8 those petroleum contaminated properties which present a higher 14 9 degree of risk to the public health and safety or the 14 10 environment and may adopt rules providing for denial of 14 11 benefits under this paragraph to a person who did not make a 14 12 good faith attempt to comply with the provisions of this 14 13 chapter. This paragraph does not confer a legal right to an 14 14 owner of petroleum contaminated property for receipt of 14 15 benefits under this paragraph. 14 16 b. Twelve million dollars per year shall be used for 14 17 payment of remedial benefits as provided in section 455G.9. 14 18 3. Moneys in the fund shall not be used for purposes of 14 19 bonding or providing security for bonding under chapter 455G. 14 20 Sec. 26. REPEAL. 14 21 1. Section 423.24, subsection 1, paragraph "a", 14 22 subparagraph (2), and section 424.3, subsection 5, paragraph 14 23 "b", are repealed on July 1, 2002. 14 24 2. Section 455G.19, Code 1995, is repealed. 14 25 Sec. 27. DEPARTMENTAL RULES. 14 26 1. In adopting the rules to implement the amendments to 14 27 section 455B.474, contained in this Act, the environmental 14 28 protection commission shall: 14 29 a. Direct the department to work jointly with a technical 14 30 advisory committee to prepare a draft of these rules and 14 31 standards for the commission's consideration. 14 32 (1) The technical advisory committee members shall consist 14 33 of the following: 14 34 (a) The chairperson of the Iowa environmental council or 14 35 the chairperson's designee. 15 1 (b) The managing director of the petroleum marketers of 15 2 Iowa or the managing director's designee. 15 3 (c) The executive director of the Iowa league of cities or 15 4 the executive director's designee. 15 5 (d) The president of the Iowa groundwater association or 15 6 the president's designee who is a groundwater professional 15 7 pursuant to section 455G.18. 15 8 (e) The executive director of the Iowa petroleum council 15 9 or the executive director's designee. 15 10 (f) The executive director of the consulting engineers of 15 11 Iowa or the executive director's designee who is a registered 15 12 engineer. 15 13 (g) The executive director of the Iowa association of 15 14 business and industry or the executive director's designee. 15 15 (h) The administrator of the Iowa comprehensive petroleum 15 16 underground storage tank fund board. 15 17 (2) The technical advisory committee shall: 15 18 (a) Draw upon the technical expertise of its members' 15 19 constituent organizations. 15 20 (b) Submit a written report to the environmental 15 21 protection commission concerning rules and standards to 15 22 implement section 455B.474, as amended by this Act, by October 15 23 15, 1995. 15 24 (3) The technical advisory committee shall cease to exist 15 25 upon completion of the report in subparagraph (2). 15 26 b. File a notice of intended action with the 15 27 administrative rules review committee by November 15, 1995. 15 28 2. In implementing the amendments to section 455B.474 15 29 contained in this Act, the department: 15 30 a. May allow but shall not require revision, modification, 15 31 or replacement of any site cleanup report, site assessment, or 15 32 remedial investigation previously accepted by the department. 15 33 b. Shall collect information from historical records, 15 34 visual inspections, and minimal site assessment data in order 15 35 to determine whether the release is appropriate for regulatory 16 1 concern and whether a site cleanup report is required. 16 2 c. Take steps to assure that department staff is 16 3 adequately trained to implement and utilize the standards 16 4 being enacted pursuant to this section by January 1, 1996. In 16 5 preparing its staff, the department shall utilize, to the 16 6 fullest extent possible, training and funding programs offered 16 7 by the United States environmental protection agency, the 16 8 American society for testing and materials (ASTM), or other 16 9 appropriate entities. 16 10 d. May use existing ASTM standards until the rules 16 11 implementing the changes to section 455B.474 contained in this 16 12 Act are adopted. 16 13 Sec. 28. STUDY. 16 14 1. The Iowa comprehensive petroleum underground storage 16 15 tank fund board shall study the following issues: 16 16 a. Privatization of all or a portion of the insurance 16 17 program under section 455G.11. 16 18 b. Expansion of innocent landowner benefits under section 16 19 455G.21. 16 20 2. The board shall provide the general assembly with the 16 21 study's report and recommendations by January 1, 1996. 16 22 Sec. 29. RETROACTIVE APPLICABILITY. Sections 17 and 18 of 16 23 this Act, which amend section 455G.11, subsections 3 and 4, 16 24 apply retroactively to January 1, 1995. 16 25 Sec. 30. EFFECTIVE DATE. Sections 3 through 10, sections 16 26 15 through 25, section 26, subsection 2, and sections 27 16 27 through 29, being deemed of immediate importance, take effect 16 28 upon enactment. Sections 1 and 2, sections 11 through 14, and 16 29 section 26, subsection 1, are effective July 1, 1995. 16 30 EXPLANATION 16 31 This bill makes several changes to the underground storage 16 32 tank program. 16 33 1. Environmental Protection Charge. This bill amends 16 34 sections 423.24 and 424.3 to increase the amount of the 16 35 environmental protection charge. The environmental protection 17 1 charge is based upon diminution of petroleum and is collected 17 2 by a depositor from a receiver of petroleum when deposited 17 3 into a tank. Currently per statute, the amount that is 17 4 allocated to the Iowa comprehensive petroleum underground 17 5 storage tank fund from use tax revenues is $15.3 million per 17 6 year. This bill increases that amount in two ways. First, it 17 7 raises the cap on the initial environmental protection charge 17 8 to $17 million. Secondly, it increases the environmental 17 9 protection charge by a cost factor which is equivalent to an 17 10 extra one cent per gallon which generates an additional $17 17 11 million. The additional one cent increase in the 17 12 environmental protection charge is allocated to the new 17 13 marketability fund and is repealed on July 1, 2002. 17 14 2. Marketability Fund. This bill creates a new 17 15 marketability fund which receives the additional $17 million 17 16 per year from the increase in the environmental protection 17 17 charge. Five million dollars of the moneys allocated to the 17 18 marketability fund are to be appropriated to the innocent 17 19 landowner fund which is also created in this bill. The 17 20 innocent landowner fund will provide an owner of petroleum 17 21 contaminated property, who is not otherwise eligible for 17 22 receipt of benefits under the remedial account, benefits for 17 23 the costs of corrective action, subject to the copayment 17 24 requirements of section 455G.9, subsection 4. The first 17 25 $20,000 of site cleanup report costs will be paid by the 17 26 innocent landowner fund. The owner is required to pay 18 17 27 percent of the first $80,000 of corrective action costs and 35 17 28 percent of the remainder. The bill provides that the UST 17 29 board may adopt rules conditioning receipt of benefits to 17 30 those petroleum contaminated properties which present a higher 17 31 degree of risk to the public health and safety or the 17 32 environment and may adopt rules providing for exclusion of 17 33 benefits to a person who did not make a good faith attempt to 17 34 comply with the provisions of chapter 455G. The bill states 17 35 that the provisions of the innocent landowner fund do not 18 1 confer a legal right to an owner of petroleum contaminated 18 2 property for receipt of benefits under the fund. The 18 3 remaining $12 million per year is to be used solely for 18 4 providing remedial benefits under section 455G.9. The bill 18 5 specifically prohibits use of the moneys in the marketability 18 6 fund for bonding purposes. The bill requires the underground 18 7 storage tank fund board to conduct a study and provide the 18 8 general assembly with recommendations regarding expansion of 18 9 the innocent landowner fund to include additional corrective 18 10 action benefits by January 1, 1996. 18 11 3. Risk-Based Corrective Action (RBCA) Standards. The 18 12 bill amends provisions contained in chapter 455B relating to 18 13 site classification and cleanup requirements in order to 18 14 require the department of natural resources to implement the 18 15 use of national risk-based corrective action standards 18 16 developed by the American Society for Testing and Materials 18 17 (ASTM). The Emergency Standard Guide for Risk-Based 18 18 Corrective Action Applied at Petroleum Release Sites (ES38-94) 18 19 states that RBCA is a "consistent decision-making process for 18 20 the assessment and response to subsurface contamination, based 18 21 upon the protection of human health and environmental 18 22 resources .... The RBCA process ..... utilizes a tiered 18 23 approach where assessment and remediation activities are 18 24 appropriately tailored to site-specific conditions and risks." 18 25 a. Classification. The bill retains the current 18 26 designations for high risk sites and adds overriding criteria 18 27 requiring an initial determination of unreasonable risk. The 18 28 bill states that a site shall be considered high risk when it 18 29 is determined that contamination from the site presents an 18 30 unreasonable risk to public health and safety or the 18 31 environment if contamination at the site is affecting or 18 32 likely to affect groundwater which is used as a source water 18 33 for public or private water supplies, to a level rendering 18 34 them unsafe for human consumption, if contamination is 18 35 actually affecting or is likely to affect surface water bodies 19 1 to a level where surface water quality standards will be 19 2 exceeded, or if harmful or explosive concentrations of 19 3 petroleum substances or vapors affecting structures or utility 19 4 installations exist or are likely to occur. Currently sites 19 5 which do not meet this high risk criteria are classified as 19 6 either a low risk or no further action site. This bill 19 7 requires that reclassification of a site is to be based upon 19 8 risk-based screening levels contained in the ASTM standards. 19 9 b. Corrective Action Response Requirements. The bill 19 10 makes major changes in determining the extent of cleanup 19 11 required on a high risk site. It requires that when 19 12 determining the appropriate corrective action response, the 19 13 corrective action design report must consider the extent of 19 14 remediation required to reclassify the site to a low risk 19 15 site, the most appropriate exposure scenarios, exposure 19 16 pathway characterizations, current and projected use 19 17 scenarios, risk-based corrective action assessment principles, 19 18 and other relevant site specific factors such as the 19 19 feasibility of available technologies, existing background 19 20 contaminate levels, current and planned future uses, 19 21 ecological, aesthetic, and other relevant criteria, and the 19 22 applicability and availability of engineering and 19 23 institutional controls. The bill requires that corrective 19 24 action for releases which occur on or after January 1, 1996, 19 25 must be remediated in accordance with corrective action rules 19 26 and regulations of the department of natural resources 19 27 existing on January 1, 1995, if the release is from an 19 28 underground storage tank required to maintain financial 19 29 responsibility under chapter 455G. The bill allows an owner 19 30 or operator to perform additional corrective action at the 19 31 owner's or operator's expense. 19 32 c. Monitoring. The bill strikes the current monitoring 19 33 schedule and provides that low risk sites shall be monitored 19 34 as the department of natural resources deems necessary and as 19 35 consistent with industry standards. Section 455B.474 20 1 currently requires that low risk sites be monitored a maximum 20 2 of three times per year for years one through three, a maximum 20 3 of two times per year for years 4 through 6, one time per year 20 4 for years 7 through 9, and one time in the 12th year. If 20 5 there has been no significant increase or movement of 20 6 contamination after the 12th year, the department is directed 20 7 to reclassify the site to a no further action site. 20 8 d. Certificates. The bill strikes references to the 20 9 current clean site certificate and replaces it with a no 20 10 further action certificate for a site upon which the 20 11 department of natural resources has determined that no further 20 12 action is required. 20 13 e. Site Cleanup and Corrective Action Design Reports. The 20 14 bill requires that the department must accept a site cleanup 20 15 report or corrective action design report submitted by a 20 16 groundwater professional unless the report is found to be 20 17 incomplete or inaccurate or if based upon information in the 20 18 report or plan the site classification or appropriate 20 19 corrective action response cannot be reasonably determined. 20 20 The groundwater professional is required to certify that the 20 21 site cleanup report complies with the provisions of chapter 20 22 455B and rules adopted by the department. A false statement 20 23 or misrepresentation made by a groundwater professional which 20 24 results in a mistaken classification of a site or an improper 20 25 or incorrect corrective action response is a serious 20 26 misdemeanor and results in revocation of the groundwater 20 27 professional's certification under section 455G.18. A serious 20 28 misdemeanor is punishable by a fine of at least $250 but not 20 29 to exceed $1,500 and imprisonment not to exceed one year. 20 30 f. Implementation of Risk-Based Corrective Action (RBCA) 20 31 Standards. Finally, the bill includes several provisions 20 32 relating to implementation of the new RBCA rules by the 20 33 department of natural resources. The bill requires formation 20 34 of a technical advisory committee to work with and assist the 20 35 department in development of rules for approval by the 21 1 environmental protection commission. The members of the 21 2 technical advisory committee consist of representatives of the 21 3 following groups: the Iowa environmental council, the 21 4 petroleum marketers of Iowa, the Iowa league of cities, the 21 5 Iowa groundwater association, the Iowa petroleum council, the 21 6 consulting engineers of Iowa, the Iowa association of business 21 7 and industry, and the administrator of the underground storage 21 8 tank fund board. The technical advisory committee is required 21 9 to submit a written report to the environmental protection 21 10 commission by October 15, 1995. Upon completion of the 21 11 report, the committee will cease to exist. 21 12 The environmental protection commission is directed to file 21 13 a notice of intended action with the administrative rules 21 14 review committee to adopt rules for implementation of RBCA 21 15 standards by November 15, 1995. The department is prohibited 21 16 from requiring any revision, modification, or replacement of 21 17 any site cleanup report, site assessment, or remedial 21 18 investigation previously accepted by the department. In 21 19 addition the department is directed to collect information 21 20 from historical records, visual inspections, and minimal site 21 21 assessment data in order to determine whether a release is 21 22 appropriate for regulatory concern and whether a site cleanup 21 23 report is necessary and to ensure that departmental staff are 21 24 properly trained to implement RBCA standards by January 1, 21 25 1996. The department is authorized to use existing RBCA 21 26 standards until the rules are adopted. 21 27 4. Prioritization. The bill amends section 455G.9 by 21 28 striking subsection 5 which authorizes the underground storage 21 29 tank fund board to prioritize remedial benefits if the fund 21 30 cannot currently pay all claims. The administrative rules 21 31 review committee approved rules in January 1995 which gave 21 32 priority in allocation of benefits to small business owners on 21 33 high risk sites. This means that larger owners and political 21 34 subdivisions, i.e., school districts, cities, and counties, 21 35 must wait to receive benefits. A small business as defined in 22 1 section 455G.2 means an independently owned and operated 22 2 business with no more than 12 tanks at no more than two 22 3 different tank sites with a net worth of $400,000 or less. 22 4 5. Loan Guarantee Account. The current loan guarantee 22 5 program offers a 90 percent guarantee on behalf of small 22 6 businesses for the payment of corrective action costs or 22 7 upgrades. This bill expands the loan guarantee program under 22 8 section 455G.10 by striking the requirement that the applicant 22 9 be a small business, thus allowing anyone to apply for a loan 22 10 guarantee and by providing that a loan guarantee may be 22 11 granted for capital improvements on a tank site or for 22 12 purchase of property contaminated by a leaking underground 22 13 storage tank. A person must attempt to obtain financing from 22 14 at least two private lending sources before requesting a loan 22 15 guarantee. 22 16 6. Insurance. The bill amends section 455G.11 to extend 22 17 the upgrade date to December 22, 1998, and to provide for 22 18 expanded property transfer insurance coverage. The federal 22 19 government has mandated that regulated tanks conform to 22 20 technical upgrade requirements by December 22, 1998. In Iowa, 22 21 an owner or operator was to have upgraded a tank by January 1, 22 22 1995, in order to continue to be eligible for insurance 22 23 coverage under the fund. This bill extends the state upgrade 22 24 date to be consistent with the federally mandated upgrade date 22 25 and allows an owner or operator to maintain state insurance 22 26 with an $800 per tank surcharge in addition to paying two 22 27 times the normal premium rate. The bill provides that tanks 22 28 that are not upgraded shall not be included within the general 22 29 tank population for purposes of determining actuarially sound 22 30 premiums under section 455G.11, subsection 4, paragraph "g". 22 31 The section in this bill that amends section 455G.11, 22 32 subsection 3, paragraph "c", to extend upgrade dates is 22 33 effective upon enactment and is retroactively applicable to 22 34 January 1, 1995. 22 35 Property transfer insurance is currently provided to cover 23 1 environmental damage caused by a tank in the event that 23 2 governmental action requires additional cleanup beyond action 23 3 level standards in effect at the time a certificate of clean 23 4 was issued or a monitoring certificate was issued. This bill 23 5 expands the coverage by providing that any cleanup beyond that 23 6 which was required at the time a no further action certificate 23 7 or a monitoring certificate was issued shall be covered by the 23 8 policy instead of requiring that action standards change in 23 9 order to receive coverage. In addition, the bill strikes a 23 10 provision conditioning coverage upon continued approval by the 23 11 United States environmental protection agency. 23 12 7. Groundwater Professionals. This bill amends section 23 13 455G.18 by requiring that all groundwater professionals be 23 14 certified. A groundwater professional is a person who 23 15 provides subsurface soil contamination and groundwater 23 16 consulting services or who contracts to perform remediation or 23 17 corrective action services. Currently section 455G.18 23 18 requires that all groundwater professionals be registered with 23 19 the department of natural resources. The bill provides that 23 20 any person not previously registered as a groundwater 23 21 professional who requests certification after January 1, 1996, 23 22 must complete a course of instruction and pass a certification 23 23 examination. Groundwater professionals registered prior to 23 24 January 1, 1996, must pass the certification examination by 23 25 January 1, 1997. The bill requires that all groundwater 23 26 professionals must take continuing education requirements in 23 27 order to maintain certification. In addition, the bill 23 28 provides that the administrator of the underground storage 23 29 tank fund will administer the groundwater professional 23 30 certification program. 23 31 8. Environmental Damage Offset. This bill repeals the 23 32 environmental damage offset. The environmental damage offset 23 33 applied to a person receiving benefits under section 455G.9 23 34 who closed a tank but still used the site for commercial 23 35 purposes and required that person to pay a predetermined 24 1 amount per year or deduct the amount from benefits received 24 2 under the underground storage tank fund. The environmental 24 3 damage offset was equal to the amount of the environmental 24 4 protection charge which would have been paid by a tank that 24 5 was similar in size to the tank that was closed. 24 6 9. Underground Storage Tank Fund Board Study. The bill 24 7 requires the Iowa comprehensive petroleum underground storage 24 8 tank fund board to study two issues and provide 24 9 recommendations to the general assembly by January 1, 1996. 24 10 The two issues are privatization of the insurance fund and 24 11 expansion of innocent landowner benefits under section 24 12 455G.21. 24 13 LSB 2592SV 76 24 14 js/cf/24.1
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