House File 2646 H-8283 Amend House File 2646 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 STORAGE TANK MANAGEMENT ACCOUNT 5 Section 1. Section 455B.471, subsections 1 and 3, Code 2024, 6 are amended by striking the subsections. 7 Sec. 2. Section 455B.471, Code 2024, is amended by adding 8 the following new subsections: 9 NEW SUBSECTION . 1A. “Account” means the storage tank 10 management account created in the groundwater protection fund 11 created in section 455E.11. 12 NEW SUBSECTION . 1B. “Claimant” means an owner or operator 13 who has filed a claim for assistance under the account, and 14 that claim has been approved by the department, or the Iowa 15 comprehensive petroleum underground storage tank fund created 16 in section 455G.3, Code 2024. 17 NEW SUBSECTION . 1C. “Community remediation” means a 18 curriculum of coordinated testing, planning, or remediation 19 involving two or more tank sites potentially connected with a 20 continuous contaminated area, pursuant to rules adopted by the 21 commission under section 455B.474. A community remediation 22 does not expand the scope of coverage otherwise available or 23 relieve liability otherwise imposed under state or federal law. 24 NEW SUBSECTION . 2A. “Costs” means all costs, charges, 25 expenses, or other indebtedness incurred by a claimant that 26 are determined by the department to be reasonable for carrying 27 out all works and undertakings necessary or incidental to the 28 accomplishment of any project. “Costs” includes reasonable 29 attorney fees and costs of litigation for which moneys are 30 expended from the account in connection with a release. 31 NEW SUBSECTION . 3A. “Insurance” means any form of financial 32 assistance or showing of financial responsibility sufficient 33 to comply with the federal Resource Conservation and Recovery 34 Act, 42 U.S.C. §6901 et seq., or the department’s underground 35 -1- HF 2646.4061 (1) 90 (amending this HF 2646 to CONFORM to SF 2414) lh/js 1/ 14 #1.

storage tank financial responsibility rules. 1 NEW SUBSECTION . 7A. “Potentially responsible party” means a 2 person who may be responsible or liable for a release for which 3 payments from the account were made for corrective action or 4 third-party liability. 5 NEW SUBSECTION . 7B. “Program” means the storage tank 6 management account financing program created pursuant to 7 section 455B.472A. 8 NEW SUBSECTION . 10A. “Third-party liability” means any of 9 the following: 10 a. Property damage including physical injury to tangible 11 property, but not including loss of use. Property damage does 12 not include costs to remediate. 13 b. Bodily injury including sickness, physical injury, or 14 death. 15 Sec. 3. NEW SECTION . 455B.472A Storage tank management 16 account financing program. 17 1. The department shall establish and administer a storage 18 tank management account financing program for the purpose of 19 reimbursing eligible claimants for all or part of the costs of 20 corrective action for petroleum releases previously eligible 21 for payment from the Iowa comprehensive petroleum underground 22 storage tank fund pursuant to chapter 455G, Code 2024. 23 2. The department may enter into any agreements and provide 24 any documents, instruments, certificates, data, or information 25 necessary in connection with the operation, administration, 26 and financing of the program consistent with this part 8 of 27 subchapter IV, the federal Resource Conservation and Recovery 28 Act, 42 U.S.C. §6901 et seq., the rules of the commission, and 29 other applicable federal and state law. 30 3. The department may act to conform the program to the 31 applicable guidance and regulations adopted by the United 32 States environmental protection agency. 33 4. The department shall administer the moneys in the account 34 transferred pursuant to this Act to carry out the purposes 35 -2- HF 2646.4061 (1) 90 (amending this HF 2646 to CONFORM to SF 2414) lh/js 2/ 14

of the program and shall manage the revenue, administration, 1 restrictions, and disposition of the moneys in the account 2 transferred pursuant to this Act. 3 5. Moneys in the account transferred pursuant to this Act 4 are appropriated to the department for the purposes set forth 5 in section 455E.11, subsection 2, paragraph “d” , subparagraph 6 (1A). 7 6. Payments for reimbursement or other costs relating to any 8 claim or cause of action in connection with a tank not owned or 9 operated by the state or an agency of the state shall be made 10 solely from the moneys in the account transferred pursuant to 11 this Act and no liability is otherwise imposed upon the state. 12 Moneys from the account transferred pursuant to this Act are 13 limited to the extent of coverage provided by the provisions 14 set forth in section 455E.11, subsection 2, paragraph “d” , 15 subparagraph (1A). A court, an administrative law judge, the 16 department, or the commission shall not order or approve a 17 remedy that would require the account to exceed the account’s 18 then current funding limitations to satisfy an award or that 19 would restrict the availability of moneys for higher priority 20 purposes described in section 455E.11, subsection 2, paragraph 21 “d” , subparagraph (1A), subparagraph division (c). The state 22 is not otherwise liable for a claim related to the account 23 and moneys from the general fund shall not be used to pay for 24 reimbursement or other costs relating to any claim or cause of 25 action in connection with a tank not owned or operated by the 26 state or an agency of the state. 27 Sec. 4. NEW SECTION . 455B.472B Cost recovery enforcement. 28 1. Full recovery sought by department. The department 29 may seek full recovery from an owner, operator, or other 30 potentially responsible party liable for a release that is 31 the subject of a corrective action for which moneys from 32 the account are expended, or for which moneys from the Iowa 33 comprehensive petroleum underground storage tank fund created 34 in section 455G.3, Code 2024, were expended, including for 35 -3- HF 2646.4061 (1) 90 (amending this HF 2646 to CONFORM to SF 2414) lh/js 3/ 14

third-party liability and for all other costs. If federal 1 cleanup moneys are recovered, the federal cleanup moneys shall 2 be used solely for the purpose of future cleanup activities. 3 2. Limitation of liability of owner or operator. Except 4 as provided in subsection 3, the department shall not seek 5 recovery for expenses in connection with corrective action for 6 a release from an owner or operator eligible for assistance 7 under the program, except for any unpaid portion of the 8 deductible or copayment. This subsection does not affect any 9 authorization of the department to impose or collect civil or 10 administrative fines, penalties, or fees. Moneys from the 11 account shall not be used to pay for any third-party liability. 12 3. Owner or operator not in compliance. Notwithstanding 13 subsection 2, the liability of an owner or operator shall be 14 the full and total costs of corrective action and bodily injury 15 or property damage to third parties, as specified in subsection 16 1, if the owner or operator has not complied with the financial 17 responsibility or other underground storage tank rules of 18 the department or with this part 8 of subchapter IV or rules 19 adopted under this part. 20 4. Lien on tank site. Any amount for which an owner or 21 operator is required to pay to the account by statute, rule, 22 contract, or determination of liability by the department after 23 hearing, if not paid when due, shall constitute a lien upon the 24 real property where the tank that was the subject of corrective 25 action is located, and the payment shall be collected in the 26 same manner as the environmental protection charge pursuant to 27 section 424.11, Code 2016. 28 5. Joinder of parties. The department has standing in 29 any case or contested action related to the account or a tank 30 to assert any claim that the department may have regarding 31 the tank at issue in the case or contested action. Upon 32 motion and sufficient showing by a party to a cost recovery or 33 subrogation action provided for under this section, the court 34 or the administrative law judge shall join to the action any 35 -4- HF 2646.4061 (1) 90 (amending this HF 2646 to CONFORM to SF 2414) lh/js 4/ 14

potentially responsible party who may be liable for costs and 1 expenditures of the type recoverable pursuant to this section. 2 6. Third-party contracts. An insurance, indemnification, 3 hold-harmless, conveyance, or similar risk-sharing or 4 risk-shifting agreement shall not be effective to transfer 5 any liability for costs recoverable under this section. The 6 department may proceed directly against the owner, operator, 7 or other potentially responsible party. This subsection does 8 not bar any agreement to insure, hold harmless, or indemnify 9 a party to the agreement for any costs or expenditures under 10 this part 8 of subchapter IV, and does not modify rights 11 between the parties to an agreement, except to the extent the 12 agreement shifts liability to an owner or operator eligible 13 for assistance under the program for any damages or other 14 costs in connection with a corrective action for which another 15 potentially responsible party is or may be liable. Any such 16 provision is void and of no further force and effect. 17 7. Later proceedings permitted against other parties. The 18 entry of judgment against a party to the action does not bar 19 a future action by the department against another person who 20 is later alleged to be or discovered to be liable for costs 21 and expenditures paid from the account. Notwithstanding 22 section 668.5, a potentially responsible party shall not seek 23 contribution or any other recovery from an owner or operator 24 eligible for assistance under the program for damages or other 25 costs in connection with corrective action for a release for 26 which the potentially responsible party is or may be liable. 27 Subsequent successful proceedings against another party shall 28 not modify or reduce the liability of a party against whom 29 judgment has been previously entered. 30 8. Claims against potentially responsible parties. 31 a. Upon payment from the account for corrective action or 32 third-party liability pursuant to this part 8 of subchapter 33 IV, the rights of the claimant to recover payment from any 34 potentially responsible party are assumed by the department to 35 -5- HF 2646.4061 (1) 90 (amending this HF 2646 to CONFORM to SF 2414) lh/js 5/ 14

the extent paid from the account. A claimant shall not receive 1 double compensation for the same injury. 2 b. In an action brought pursuant to this part 8 of 3 subchapter IV seeking damages for corrective action or 4 third-party liability, the court shall allow evidence and 5 argument as to the replacement or indemnification of actual 6 economic losses incurred or to be incurred in the future by the 7 claimant by reason of insurance benefits, governmental benefits 8 or programs, or other sources. 9 c. A claimant may elect to authorize the department 10 to pursue the claimant’s cause of action for any injury 11 not compensated from the fund against any potentially 12 responsible party, provided the attorney general determines 13 such representation would not be a conflict of interest. If 14 a claimant so elects, the department’s litigation expenses 15 shall be shared on a pro rata basis with the claimant, but the 16 claimant’s share of litigation expenses is payable exclusively 17 from any share of the settlement or judgment payable to the 18 claimant. 19 9. Exclusion of punitive damages. Moneys from the account 20 shall not be used to pay punitive damages. 21 Sec. 5. NEW SECTION . 455B.472C Discretionary rulemaking. 22 1. The commission may adopt rules pursuant to chapter 17A 23 conditioning receipt of moneys from the account transferred 24 pursuant to this Act to those petroleum-contaminated properties 25 that present a higher degree of risk to the public health and 26 safety or the environment and providing for denial of moneys 27 from the account transferred pursuant to this Act to a person 28 who did not make a good-faith attempt to comply with this part 29 8 of subchapter IV. This subsection does not confer a legal 30 right to an owner of a petroleum-contaminated property, or an 31 owner or operator of an underground storage tank located on the 32 property, for receipt of moneys under this part 8 of subchapter 33 IV. 34 2. The commission may adopt rules pursuant to chapter 35 -6- HF 2646.4061 (1) 90 (amending this HF 2646 to CONFORM to SF 2414) lh/js 6/ 14

17A providing for the transfer of all or a portion of the 1 liabilities relating to the account. Notwithstanding any other 2 provision to the contrary, the department, upon such transfer, 3 shall not maintain any duty to reimburse claimants for those 4 liabilities transferred. 5 Sec. 6. Section 455B.474, subsection 1, paragraph a, 6 subparagraph (6), subparagraph divisions (g), (i), and (j), 7 Code 2024, are amended to read as follows: 8 (g) An owner or operator may elect to proceed with 9 additional corrective action on the site. However, any 10 action taken in addition to that required pursuant to this 11 subparagraph (6) , shall be solely at the expense of the owner 12 or operator and shall not be considered corrective action 13 for purposes of section 455G.9 455B.472A , unless otherwise 14 previously agreed to by the board department and the owner or 15 operator pursuant to section 455G.9, subsection 7 455B.472A . 16 Corrective action taken by an owner or operator due to the 17 department’s failure to meet the time requirements provided in 18 subparagraph division (e) shall be considered corrective action 19 for purposes of section 455G.9 455B.472A . 20 (i) Replacement or upgrade of a tank on a site classified 21 as a high or low risk site shall be equipped with a secondary 22 containment system with monitoring of the space between the 23 primary and secondary containment structures or other board 24 approved tank system or methodology approved by the department . 25 (j) The commission and the board department shall cooperate 26 to ensure that remedial measures required by the corrective 27 action rules adopted pursuant to this subparagraph (6) are 28 reasonably cost-effective and shall, to the fullest extent 29 possible, avoid duplicating and conflicting requirements. 30 Sec. 7. Section 455B.474, subsection 9, paragraph d, Code 31 2024, is amended to read as follows: 32 d. The certification of groundwater professionals shall 33 not impose liability on the board, the department , or the 34 fund account for any claim or cause of action of any nature, 35 -7- HF 2646.4061 (1) 90 (amending this HF 2646 to CONFORM to SF 2414) lh/js 7/ 14

based on the action or inaction of a groundwater professional 1 certified pursuant to this subsection . 2 Sec. 8. Section 455B.474, Code 2024, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 11. Department practices and procedures 5 for implementing and administering the storage tank management 6 account financing program. The rules shall include but 7 are not limited to requirements for program eligibility, 8 investigating and settling claims made against the account, 9 appeal procedures, community remediation, prioritization of 10 account moneys, funding for tank operator training, additional 11 assessment and corrective action arising out of releases at 12 sites for which a certificate of no further action has been 13 issued, and reimbursement for the permanent closure of an 14 underground storage tank system. 15 Sec. 9. Section 455B.477, subsection 7, Code 2024, is 16 amended to read as follows: 17 7. The civil penalties or other damages or moneys recovered 18 by the state or the petroleum underground storage tank fund in 19 connection with a petroleum underground storage tank under this 20 part 8 of subchapter IV or chapter 455G shall be credited to 21 the fund created in section 455G.3 and allocated between fund 22 accounts according to the fund budget. Any federal moneys, 23 including but not limited to federal underground storage tank 24 trust fund moneys, received by the state or the department of 25 natural resources in connection with a release occurring on 26 or after May 5, 1989, or received generally for underground 27 storage tank programs on or after May 5, 1989, shall be 28 credited to the fund account created in section 455G.3 and 29 allocated between fund accounts according to the fund budget 30 455E.11, subsection 2, paragraph “d” , unless such use would 31 be contrary to federal law. The department shall cooperate 32 with the board of the Iowa comprehensive petroleum underground 33 storage tank fund to maximize the state’s eligibility for and 34 receipt of federal funds for underground storage tank related 35 -8- HF 2646.4061 (1) 90 (amending this HF 2646 to CONFORM to SF 2414) lh/js 8/ 14

purposes. 1 Sec. 10. Section 455E.11, subsection 2, paragraph d, 2 unnumbered paragraph 1, Code 2024, is amended to read as 3 follows: 4 A storage tank management account. All The account shall 5 consist of moneys appropriated to, transferred to, or deposited 6 in the account, including fees collected pursuant to section 7 455B.473, subsection 5 , section 455B.477, subsection 7, and 8 section 455B.479 , shall be deposited in the storage tank 9 management account . Moneys deposited in the account shall be 10 expended for all of the following purposes: 11 Sec. 11. Section 455E.11, subsection 2, paragraph d, Code 12 2024, is amended by adding the following new subparagraph: 13 NEW SUBPARAGRAPH . (1A) Moneys transferred under this Act to 14 the account are appropriated for the following purposes until 15 such moneys are fully expended: 16 (a) For reimbursement to tank owners or operators for all 17 or part of the costs of a corrective action for a petroleum 18 release. 19 (b) For the annual appropriation to the department 20 of agriculture and land stewardship in the amount of two 21 hundred fifty thousand dollars for the purpose of inspecting 22 fuel quality at pipeline terminals and renewable fuel 23 production facilities, including associated salaries, support, 24 maintenance, and miscellaneous purposes. 25 (c) For permanent closure of an underground storage tank 26 system under a remedial program pursuant to chapter 455B, 27 subchapter IV, part 8, for additional assessment and corrective 28 action arising out of releases at sites for which a certificate 29 of no further action has been issued, and for tank operator 30 training. At least three million dollars of the total moneys 31 expended pursuant to this subparagraph shall be expended for 32 the purposes described in this subparagraph division, but not 33 more than fifty thousand dollars shall be utilized for operator 34 training each fiscal year. 35 -9- HF 2646.4061 (1) 90 (amending this HF 2646 to CONFORM to SF 2414) lh/js 9/ 14

Sec. 12. Section 455E.11, subsection 2, paragraph d, 1 subparagraph (2), Code 2024, is amended to read as follows: 2 (2) The moneys remaining in the account after the 3 appropriation appropriations in subparagraph subparagraphs (1) 4 and (1A) are appropriated from the storage tank management 5 account to the department of natural resources for the 6 administration of a state storage tank program pursuant to 7 chapter 455B, subchapter IV, part 8 , and for programs which 8 that reduce the potential for harm to the environment and the 9 public health from storage tanks. 10 Sec. 13. REPEAL. Sections 455G.1, 455G.2, 455G.2A, 455G.3, 11 455G.4, 455G.5, 455G.6, 455G.7, 455G.8, 455G.9, 455G.12, 12 455G.12A, 455G.13, 455G.14, 455G.15, 455G.16, 455G.20, and 13 455G.21, Code 2024, are repealed. 14 DIVISION II 15 CONFORMING CHANGES 16 Sec. 14. Section 68B.35, subsection 2, paragraph e, Code 17 2024, is amended to read as follows: 18 e. Members of the state banking council, the Iowa ethics and 19 campaign disclosure board, the credit union review board, the 20 economic development authority, the employment appeal board, 21 the environmental protection commission, the health facilities 22 council, the Iowa finance authority, the Iowa public employees’ 23 retirement system investment board, the Iowa lottery board 24 created in section 99G.8 , the natural resource commission, 25 the board of parole, the petroleum underground storage tank 26 fund board, the public employment relations board, the state 27 racing and gaming commission, the state board of regents, the 28 transportation commission, the office of consumer advocate, the 29 utilities board, the Iowa telecommunications and technology 30 commission, and any full-time members of other boards and 31 commissions as defined under section 7E.4 who receive an annual 32 salary for their service on the board or commission. The Iowa 33 ethics and campaign disclosure board shall conduct an annual 34 review to determine if members of any other board, commission, 35 -10- HF 2646.4061 (1) 90 (amending this HF 2646 to CONFORM to SF 2414) lh/js 10/ 14

or authority should file a statement and shall require the 1 filing of a statement pursuant to rules adopted pursuant to 2 chapter 17A . 3 Sec. 15. Section 323.1, subsection 16, Code 2024, is amended 4 to read as follows: 5 16. “Storage tank” means a motor fuel storage tank as 6 defined in section 214.1 , including an underground storage 7 tank subject to regulation under chapter 455G 455B, subchapter 8 IV, part 8, section 455E.11, subsection 2, paragraph “d” , 9 subparagraph (1A), or section 455G.31 . 10 Sec. 16. Section 422.7, subsection 2, paragraph u, Code 11 2024, is amended by striking the paragraph. 12 Sec. 17. Section 455B.174, subsection 4, paragraph d, Code 13 2024, is amended to read as follows: 14 d. If a public water supply has a groundwater source 15 that contains petroleum, a fraction of crude oil, or their 16 degradation products, or is located in an area deemed by the 17 department as likely to be contaminated by such materials, and 18 after consultation with the public water supply system and 19 consideration of all applicable rules relating to remediation, 20 the department may require the public water supply system to 21 replace that groundwater source in order to receive a permit 22 to operate. The requirement to replace the source shall only 23 be made by the department if the public water supply system 24 is fully compensated for any additional design, construction, 25 operation, and monitoring costs from the Iowa comprehensive 26 petroleum underground storage tank fund created by chapter 27 455G or from any other funds that do not impose a financial 28 obligation on the part of the public water supply system. 29 Funds available to or provided by the public water supply 30 system may be used for system improvements made in conjunction 31 with replacement of the source. The department cannot require 32 a public water supply system to replace its water source with a 33 less reliable water source or with a source that does not meet 34 federal primary, secondary, or other health-based standards 35 -11- HF 2646.4061 (1) 90 (amending this HF 2646 to CONFORM to SF 2414) lh/js 11/ 14

unless treatment is provided to ensure that the drinking water 1 meets these standards. Nothing in this paragraph shall affect 2 the public water supply system’s right to pursue recovery from 3 a responsible party. 4 Sec. 18. Section 455E.11, subsection 2, paragraph d, 5 subparagraph (3), Code 2024, is amended by striking the 6 subparagraph. 7 Sec. 19. Section 455I.2, subsection 5, paragraph a, Code 8 2024, is amended to read as follows: 9 a. A federal or state program that is subject to the 10 jurisdiction of an agency, including but not limited to 11 programs established by chapters 455B and 455G 455E , corrective 12 or response actions pursuant to 42 U.S.C. §6901 et seq., and 13 remedial actions under 42 U.S.C. §9601 et seq. 14 Sec. 20. REPEAL. Sections 427B.20, 427B.21, and 427B.22, 15 Code 2024, are repealed. 16 DIVISION III 17 TRANSITION PROVISIONS 18 Sec. 21. TRANSITION PROVISIONS. 19 1. Upon repeal of sections 455G.1, 455G.2, 455G.2A, 455G.3, 20 455G.4, 455G.5, 455G.6 455G.7, 455G.8, 455G.9, 455G.12, 21 455G.12A, 455G.13, 455G.14, 455G.15, 455G.16, 455G.20, 22 and 455G.21, pursuant to this Act, all moneys in all funds 23 administered by the Iowa comprehensive petroleum underground 24 storage tank fund board are transferred to the treasurer of 25 state for deposit in the storage tank management account 26 created in the groundwater protection fund created in section 27 455E.11. Any moneys credited to any fund administered by the 28 Iowa comprehensive petroleum underground storage tank fund 29 board on and after the effective date of divisions I and II 30 of this Act are transferred to the treasurer of state for 31 deposit in the storage tank management account created in the 32 groundwater protection fund created in section 455E.11. 33 2. Any rule, regulation, form, order, or directive 34 promulgated by the Iowa comprehensive petroleum underground 35 -12- HF 2646.4061 (1) 90 (amending this HF 2646 to CONFORM to SF 2414) lh/js 12/ 14

storage tank fund board as required to administer and enforce 1 the provisions relating to the Iowa comprehensive petroleum 2 underground storage tank fund shall continue in full force 3 and effect under the jurisdiction of the department of 4 natural resources until amended, repealed, or supplemented by 5 affirmative action of the department. 6 3. Any remaining liabilities, contracts, outstanding 7 claims, payments, or other obligations for open claims from 8 the comprehensive petroleum underground storage tank fund 9 existing on or before the effective date of divisions I and II 10 of this Act shall continue in full force and effect under the 11 jurisdiction of the department of natural resources. A claim 12 for a release filed on or after the effective date of divisions 13 I and II of this Act shall not be eligible for payment from the 14 Iowa comprehensive petroleum underground storage tank fund. 15 4. The department of natural resources may begin 16 implementation of subsections 2 and 3 prior to the effective 17 date of divisions I and II of this Act, to the extent necessary 18 to transition to full implementation of the provisions 19 relating to the storage tank management account created in the 20 groundwater protection fund created in section 455E.11 and 21 repeal of the Iowa comprehensive petroleum underground storage 22 tank fund created in section 455G.3, Code 2024. 23 5. All property tax credits provided under chapter 427B, 24 subchapter IV, existing upon the repeal of sections 427B.20, 25 427B.21, and 427B.22 shall continue until their expiration. 26 Sec. 22. EFFECTIVE DATE. This division of this Act, being 27 deemed of immediate importance, takes effect upon enactment. > 28 2. Title page, by striking lines 1 through 3 and inserting 29 < An Act relating to underground storage tanks, including 30 repealing the Iowa comprehensive petroleum underground storage 31 tank fund and eliminating the Iowa comprehensive petroleum 32 underground storage tank fund board, making appropriations, and 33 including effective date and transition provisions. > 34 -13- HF 2646.4061 (1) 90 (amending this HF 2646 to CONFORM to SF 2414) lh/js 13/ 14