House File 652 - Introduced HOUSE FILE 652 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 537) (SUCCESSOR TO HSB 170) A BILL FOR An Act relating to underground storage tanks, including by 1 establishing an underground storage tank cost share grant 2 program and fund and making an appropriation. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1613HZ (2) 86 tr/nh

H.F. 652 Section 1. Section 321.145, subsection 2, paragraph a, 1 subparagraph (1), Code 2015, is amended to read as follows: 2 (1) First, three one million five hundred seven hundred 3 fifty thousand dollars per quarter shall be deposited into 4 and credited to the Iowa comprehensive petroleum underground 5 storage tank fund created in section 455G.3 , and the moneys so 6 deposited are a continuing appropriation for expenditure under 7 chapter 455G , and moneys so appropriated shall not be used for 8 other purposes. 9 Sec. 2. Section 321.145, subsection 2, paragraph a, Code 10 2015, is amended by adding the following new subparagraph: 11 NEW SUBPARAGRAPH . (3) Third, one million seven hundred 12 fifty thousand dollars per quarter shall be deposited into 13 and credited to the underground storage tank cost share 14 grant program fund created in section 455G.6A. The moneys so 15 deposited are a continuing appropriation for expenditure under 16 that section and shall not be used for other purposes. 17 Sec. 3. NEW SECTION . 455G.6A Underground storage tank cost 18 share grant program and fund. 19 1. For purposes of this section, “grant program fund” means 20 the underground storage tank cost share grant program fund 21 established by this section. 22 2. An underground storage tank cost share grant program fund 23 is created as a separate fund in the state treasury under the 24 control of the board. The grant program fund is separate from 25 the general fund of the state. 26 3. a. The grant program fund is composed of moneys 27 deposited in the fund pursuant to section 321.145, subsection 28 2, paragraph “a” , subparagraph (3), other moneys appropriated 29 by the general assembly for deposit in the grant program fund, 30 and moneys available to and obtained or accepted by the board 31 from the United States government or private sources for 32 placement in the grant program fund. 33 b. The recapture of awards or penalties, or other repayments 34 of moneys originating from the grant program fund, shall be 35 -1- LSB 1613HZ (2) 86 tr/nh 1/ 3

H.F. 652 deposited into the grant program fund. 1 c. Notwithstanding section 12C.7, interest or earnings on 2 moneys in the grant program fund shall be credited to the grant 3 program fund. 4 d. Notwithstanding section 8.33, unencumbered and 5 unobligated moneys remaining in the grant program fund at the 6 close of each fiscal year shall not revert but shall remain 7 available in the grant program fund for the purposes of this 8 section. 9 e. Any owner or operator of a location where petroleum is 10 marketed in this state is eligible to apply for and receive 11 funding from the grant program. 12 4. The grant program fund shall be administered by the 13 board. 14 5. Moneys in the grant program fund are appropriated to and 15 shall be used by the board as provided in this subsection. 16 a. Up to fifty thousand dollars shall be allocated each 17 fiscal year to the board to support the administration of the 18 grant program. Otherwise the moneys shall not be transferred, 19 used, obligated, appropriated, or otherwise encumbered except 20 to allocate as grants by the board in accordance with this 21 subsection. 22 b. The board shall establish a grant program to award grants 23 from moneys in the grant program fund to eligible applicants to 24 replace underground storage tank infrastructure, including but 25 not limited to tanks, lines, pipes, hoses, connections, seals, 26 and pumps. 27 (1) The board shall adopt rules pursuant to chapter 17A 28 for implementation and administration of the grant program and 29 grant program fund. 30 (2) At a minimum, replacement infrastructure must be listed 31 by an independent testing laboratory as compatible for use with 32 ethanol blended gasoline classified as E-85. 33 (3) An eligible applicant may be awarded a grant worth up 34 to fifty percent of the cost to replace infrastructure, with 35 -2- LSB 1613HZ (2) 86 tr/nh 2/ 3

H.F. 652 a maximum grant of one hundred thousand dollars. The total 1 grants awarded to an eligible applicant shall not exceed one 2 million dollars per calendar year. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill creates an underground storage tank cost share 7 grant program and a corresponding fund within the state 8 treasury in Code chapter 455G. The bill reduces the amount 9 deposited in the Iowa comprehensive petroleum underground 10 storage tank fund each quarter from $3.5 million to $1.75 11 million. The grant program fund shall be credited $1.75 12 million per quarter from the statutory allocations fund 13 pursuant to Code section 321.145. The grant program fund shall 14 be administered by the Iowa comprehensive petroleum underground 15 storage tank fund board. The grant program funds shall be 16 allocated as grants by the board to replace underground storage 17 tank infrastructure, including but not limited to tanks, lines, 18 pipes, hoses, connections, seals, and pumps. At a minimum, 19 replacement infrastructure must be listed by an independent 20 testing laboratory as compatible for use with ethanol blended 21 gasoline classified as E-85. 22 Any owner or operator of a location where petroleum is 23 marketed in this state is eligible to apply for and receive 24 funding from the grant program. An eligible applicant may be 25 awarded a grant worth up to 50 percent of the cost to replace 26 infrastructure, with a maximum grant of $100,000. Total grants 27 awarded to an eligible applicant shall not exceed $1 million 28 per calendar year. The bill requires the Iowa comprehensive 29 petroleum underground storage tank fund board to adopt rules to 30 implement and administer the grant program and fund. 31 The bill changes the amount credited from the statutory 32 allocations fund to the Iowa comprehensive petroleum 33 underground storage tank fund per quarter from $3.5 million to 34 $1.75 million. 35 -3- LSB 1613HZ (2) 86 tr/nh 3/ 3