House File 2464 - Introduced HOUSE FILE 2464 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 2381) (SUCCESSOR TO HSB 638) A BILL FOR An Act eliminating allocations from the statutory allocations 1 fund to the Iowa comprehensive petroleum underground storage 2 tank fund and the renewable fuel infrastructure fund, making 3 related changes, including changes related to the repeal of 4 the environmental protection charge on petroleum diminution, 5 and including effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5257HZ (3) 86 tr/nh

H.F. 2464 DIVISION I 1 UNDERGROUND STORAGE TANK FUND ALLOCATIONS 2 Section 1. Section 321.145, subsection 2, paragraph a, Code 3 2016, is amended to read as follows: 4 a. Moneys shall be deposited into and credited to the 5 following funds: 6 (1) First, three million five hundred thousand dollars 7 per quarter shall be deposited into and credited to the Iowa 8 comprehensive petroleum underground storage tank fund created 9 in section 455G.3 , and the moneys so deposited are a continuing 10 appropriation for expenditure under chapter 455G , and moneys so 11 appropriated shall not be used for other purposes. 12 (2) Second, seven Seven hundred fifty thousand dollars per 13 quarter shall be deposited into and credited to the renewable 14 fuel infrastructure fund created in section 159A.16 , and 15 the moneys so deposited are a continuing appropriation for 16 expenditure under chapter 159A, subchapter III , and moneys so 17 appropriated shall not be used for other purposes. 18 Sec. 2. Section 455B.302, unnumbered paragraph 3, Code 19 2016, is amended to read as follows: 20 A city or county which provides closure or postclosure care 21 on the premises of a sanitary landfill owned by a private 22 agency, shall have a lien upon the property to secure payment 23 for the amount of materials and labor expended by the city or 24 county to perform the required closure or postclosure care on 25 the premises. The lien shall be recordable and collectable 26 in the same manner as provided in section 424.11 , Code 2016 . 27 The lien shall attach at the time the city or county incurs 28 expenses to provide closure or postclosure care on the premises 29 of the sanitary landfill. The lien shall be valid as against 30 subsequent mortgagees, purchasers, or judgment creditors, 31 for value and without notice of the lien, only upon filing a 32 notice of the lien with the recorder of the county in which the 33 property is located. Upon payment, the city or county shall 34 release the lien. If no lien has been recorded at the time 35 -1- LSB 5257HZ (3) 86 tr/nh 1/ 8

H.F. 2464 the property is sold or transferred, the property shall not be 1 subject to a lien or claim for any closure or postclosure costs 2 incurred by the city or county. 3 Sec. 3. Section 455B.392, subsection 7, paragraph d, Code 4 2016, is amended to read as follows: 5 d. Cleanup expenses incurred by the state or a political 6 subdivision shall be a lien upon the real estate constituting 7 the hazardous condition site, recordable and collectable in 8 the same manner as provided for in section 424.11 , Code 2016 , 9 subject to the terms of this subsection . The lien shall 10 attach at the time the state or a political subdivision incurs 11 expenses to clean up the hazardous condition site. The lien 12 shall be valid as against subsequent mortgagees, purchasers, 13 or judgment creditors, for value and without notice of the 14 lien, only when a notice of the lien is filed with the recorder 15 of the county in which the property is located. Upon payment 16 by the person to the state or a political subdivision, of 17 the amount specified in this subsection , the state or a 18 political subdivision shall release the lien. If no lien has 19 been recorded at the time the person sells or transfers the 20 property, then the person shall not be liable for any cleanup 21 costs incurred by the state or a political subdivision. 22 Sec. 4. Section 455G.1, subsection 2, unnumbered paragraph 23 1, Code 2016, is amended to read as follows: 24 This subchapter applies to petroleum underground storage 25 tanks for which an owner or operator is required to maintain 26 proof of financial responsibility under federal or state law, 27 from the effective date of the regulation of the federal 28 environmental protection agency governing that tank, and not 29 from the effective compliance date, unless the effective 30 compliance date of the regulation is the effective date of the 31 regulation. An owner or operator of a petroleum underground 32 storage tank required by federal or state law to maintain proof 33 of financial responsibility for that underground storage tank 34 is subject to this subchapter and chapter 424 . 35 -2- LSB 5257HZ (3) 86 tr/nh 2/ 8

H.F. 2464 Sec. 5. Section 455G.3, subsection 1, Code 2016, is amended 1 to read as follows: 2 1. The Iowa comprehensive petroleum underground storage 3 tank fund is created as a separate fund in the state treasury, 4 and any funds remaining in the fund at the end of each fiscal 5 year shall not revert to the general fund but shall remain 6 in the Iowa comprehensive petroleum underground storage tank 7 fund. Interest or other income earned by the fund shall be 8 deposited in the fund. The fund shall include moneys credited 9 to the fund under this section , section 321.145, subsection 10 2 , paragraph “a” , Code 2016, and sections 455G.8 and 455G.9 , 11 and section 455G.11, Code 2003 , and other funds which by 12 law may be credited to the fund. The moneys in the fund are 13 appropriated to and for the purposes of the board as provided 14 in this subchapter . Amounts in the fund shall not be subject 15 to appropriation for any other purpose by the general assembly, 16 but shall be used only for the purposes set forth in this 17 subchapter . The treasurer of state shall act as custodian 18 of the fund and disburse amounts contained in it as directed 19 by the board including automatic disbursements of funds as 20 received pursuant to the terms of bond indentures and documents 21 and security provisions to trustees and custodians. The 22 treasurer of state is authorized to invest the funds deposited 23 in the fund at the direction of the board and subject to any 24 limitations contained in any applicable bond proceedings. The 25 income from such investment shall be credited to and deposited 26 in the fund. The fund shall be administered by the board which 27 shall make expenditures from the fund consistent with the 28 purposes of the programs set out in this subchapter without 29 further appropriation. The fund may be divided into different 30 accounts with different depositories as determined by the board 31 and to fulfill the purposes of this subchapter . 32 Sec. 6. Section 455G.3, subsection 5, Code 2016, is amended 33 by striking the subsection. 34 Sec. 7. Section 455G.4, subsection 3, paragraph b, Code 35 -3- LSB 5257HZ (3) 86 tr/nh 3/ 8

H.F. 2464 2016, is amended by striking the paragraph. 1 Sec. 8. Section 455G.5, unnumbered paragraphs 2 and 3, Code 2 2016, are amended to read as follows: 3 The board may enter into a contract or an agreement 4 authorized under chapter 28E with a private agency or person, 5 the department of natural resources, the Iowa finance 6 authority, the department of administrative services, the 7 department of revenue, other departments, agencies, or 8 governmental subdivisions of this state, another state, or 9 the United States, in connection with its administration and 10 implementation of this subchapter or chapter 424 or 455B . 11 The board may reimburse a contractor, public or private, 12 retained pursuant to this section for expenses incurred in the 13 execution of a contract or agreement. Reimbursable expenses 14 include, by way of example, but not exclusion, the costs of 15 collecting the environmental protection charge or administering 16 specific delegated duties or powers of the board. 17 Sec. 9. Section 455G.6, subsection 4, Code 2016, is amended 18 to read as follows: 19 4. Grant a mortgage, lien, pledge, assignment, or other 20 encumbrance on one or more improvements, revenues, asset of 21 right, accounts, or funds established or received in connection 22 with the fund, including revenues derived from the moneys 23 credited under section 321.145, subsection 2 , paragraph “a” , 24 Code 2016, and deposited in the fund or an account of the fund. 25 Sec. 10. Section 455G.8, subsection 2, Code 2016, is amended 26 to read as follows: 27 2. Statutory allocations fund. The moneys credited from the 28 statutory allocations fund under section 321.145, subsection 29 2 , paragraph “a” , Code 2016, shall be allocated, consistent 30 with this subchapter , among the fund’s accounts, for debt 31 service and other fund expenses, according to the fund budget, 32 resolution, trust agreement, or other instrument prepared or 33 entered into by the board or treasurer of state under direction 34 of the board. 35 -4- LSB 5257HZ (3) 86 tr/nh 4/ 8

H.F. 2464 Sec. 11. Section 455G.9, subsection 5, paragraph a, Code 1 2016, is amended to read as follows: 2 a. If an owner or operator ceases to own or operate a tank 3 site for which remedial account benefits were received within 4 ten years of the receipt of any account benefit and sells or 5 transfers a property interest in the tank site for an amount 6 which exceeds one hundred twenty percent of the precorrective 7 action value, adjusted for equipment and capital improvements, 8 the owner or operator shall refund to the remedial account 9 an amount equal to ninety percent of the amount in excess of 10 one hundred twenty percent of the precorrective action value 11 up to a maximum of the expenses incurred by the remedial 12 account associated with the tank site plus interest, equal 13 to the interest for the most recent twelve-month period for 14 the most recent bond issue for the fund, on the expenses 15 incurred, compounded annually. An owner or operator under this 16 subsection shall notify the board of the sale or transfer of 17 the property interest in the tank site. Expenses incurred 18 by the fund are a lien upon the property recordable and 19 collectible in the same manner as the lien provided for in 20 section 424.11 , Code 2016, at the time of sale or transfer, 21 subject to the terms of this section . 22 Sec. 12. Section 455G.9, subsections 7 and 10, Code 2016, 23 are amended to read as follows: 24 7. Expenses of cleanup not required. When an owner or 25 operator who is eligible for benefits under this subchapter 26 is allowed by the department of natural resources to monitor 27 in place, the expenses incurred for cleanup beyond the level 28 required by the department of natural resources may be covered 29 under any of the accounts established under the fund only 30 if approved by the board as cost-effective relative to the 31 department accepted monitoring plan or relative to the repeal 32 date specified in section 424.19 , Code 2016 . The cleanup 33 expenses incurred for work completed beyond what is required 34 is the responsibility of the person contracting for the excess 35 -5- LSB 5257HZ (3) 86 tr/nh 5/ 8

H.F. 2464 cleanup. The board shall seek to terminate the responsible 1 party’s environmental liabilities at such sites prior to the 2 board ceasing operation. 3 10. Expenses incurred by governmental subdivisions and public 4 works utilities. The board shall adopt rules for reimbursement 5 for reasonable expenses incurred by a governmental 6 subdivision or public works utility for sampling, treating, 7 handling, or disposing, as required by the department, of 8 petroleum-contaminated soil and groundwater encountered in a 9 public right-of-way during installation, maintenance, or repair 10 of a utility or public improvement. The board may seek full 11 recovery from a responsible party liable for the release for 12 such expenses and for all other costs and reasonable attorney 13 fees and costs of litigation for which moneys are expended by 14 the fund. Any expense described in this subsection incurred 15 by the fund constitutes a lien upon the property from which 16 the release occurred. A lien shall be recorded and an expense 17 shall be collected in the same manner as provided in section 18 424.11 , Code 2016 . 19 Sec. 13. Section 455G.13, subsection 5, Code 2016, is 20 amended to read as follows: 21 5. Lien on tank site. Any amount for which an owner or 22 operator is liable to the fund, if not paid when due, by 23 statute, rule, or contract, or determination of liability by 24 the board or department of natural resources after hearing, 25 shall constitute a lien upon the real property where the tank, 26 which was the subject of corrective action, is situated, and 27 the liability shall be collected in the same manner as the 28 environmental protection charge pursuant to section 424.11 , 29 Code 2016 . 30 Sec. 14. EFFECTIVE DATE. This division of this Act takes 31 effect December 31, 2016. 32 DIVISION II 33 ENVIRONMENTAL PROTECTION CHARGE ON PETROLEUM DIMINUTION REPEAL 34 Sec. 15. Section 424.19, Code 2016, is amended to read as 35 -6- LSB 5257HZ (3) 86 tr/nh 6/ 8

H.F. 2464 follows: 1 424.19 Future repeal. 2 This chapter is repealed effective June 30 December 31 , 3 2016. 4 Sec. 16. EFFECTIVE UPON ENACTMENT. This division of this 5 Act, being deemed of immediate importance, takes effect upon 6 enactment. 7 DIVISION III 8 RENEWABLE FUEL INFRASTRUCTURE FUND ALLOCATION REPEAL 9 Sec. 17. Section 321.145, subsection 2, paragraph a, Code 10 2016, as amended by division I of this Act, is amended by 11 striking the paragraph. 12 Sec. 18. Section 321.145, subsection 2, paragraph b, Code 13 2016, is amended to read as follows: 14 b. Moneys remaining after the operation of paragraph “a” 15 shall be credited in order of priority as follows: 16 (1) An amount equal to four percent of the revenue from the 17 operation of section 321.105A, subsection 2 , shall be credited 18 to the department, to be used for purposes of public transit 19 assistance under chapter 324A . 20 (2) An amount equal to two dollars per year of license 21 validity for each issued or renewed driver’s license which is 22 valid for the operation of a motorcycle shall be credited to 23 the motorcycle rider education fund established under section 24 321.179 . 25 (3) The amounts required to be transferred pursuant to 26 section 321.34 from revenues available under this subsection 27 shall be transferred and credited as provided in section 28 321.34, subsections 7, 10, 10A, 11, 11A, 11B, 13, 16, 17, 29 18, 19, 20, 20A, 20B, 20C, 21, 22, 23, 24, 25, and 26 for the 30 various purposes specified in those subsections. 31 Sec. 19. EFFECTIVE DATE. This division of this Act takes 32 effect June 30, 2017. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -7- LSB 5257HZ (3) 86 tr/nh 7/ 8

H.F. 2464 the explanation’s substance by the members of the general assembly. 1 This bill extends the environmental protection charge on 2 petroleum diminution, currently set to expire on June 30, 2016, 3 until December 31, 2016. The bill eliminates the allocation 4 from the statutory allocations fund to the Iowa comprehensive 5 petroleum underground storage tank fund effective December 31, 6 2016. The bill eliminates the allocation from the statutory 7 allocations fund to the renewable fuel infrastructure fund 8 effective June 30, 2017. The bill makes conforming changes 9 throughout the Code to reflect the changes implemented by the 10 bill. 11 -8- LSB 5257HZ (3) 86 tr/nh 8/ 8