House Study Bill 170 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON NATURAL RESOURCES BILL BY CHAIRPERSON MOORE) 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 1613YC (1) 86 tr/nh

H.F. _____ 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. Section 424.19, Code 2015, is amended to read as 18 follows: 19 424.19 Future repeal. 20 This chapter is repealed effective June 30, 2016 2026 . 21 Sec. 4. Section 455G.4, subsection 1, paragraph a, 22 subparagraph (5), Code 2015, is amended to read as follows: 23 (5) Three Five owners , consultants, or operators appointed 24 by the governor , two of which shall to be designated as 25 follows: 26 (a) One member shall be an owner or operator who is 27 self-insured. 28 (b) One member Two members shall be a member members of 29 the petroleum marketers and convenience stores of Iowa or its 30 designee. 31 (c) One member shall be a member of the Iowa petroleum 32 equipment contractors association or its designee. 33 Sec. 5. NEW SECTION . 455G.6A Underground storage tank cost 34 share grant program and fund. 35 -1- LSB 1613YC (1) 86 tr/nh 1/ 4

H.F. _____ 1. For purposes of this section, “grant program fund” means 1 the underground storage tank cost share grant program fund 2 established by this section. 3 2. An underground storage tank cost share grant program fund 4 is created as a separate fund in the state treasury under the 5 control of the board. The grant program fund is separate from 6 the general fund of the state. 7 3. a. The grant program fund is composed of moneys 8 deposited in the fund pursuant to section 321.145, subsection 9 2, paragraph “a” , subparagraph (3), other moneys appropriated 10 by the general assembly for deposit in the grant program fund, 11 and moneys available to and obtained or accepted by the board 12 from the United States government or private sources for 13 placement in the grant program fund. 14 b. The recapture of awards or penalties, or other repayments 15 of moneys originating from the grant program fund, shall be 16 deposited into the grant program fund. 17 c. Notwithstanding section 12C.7, interest or earnings on 18 moneys in the grant program fund shall be credited to the grant 19 program fund. 20 d. Notwithstanding section 8.33, unencumbered and 21 unobligated moneys remaining in the grant program fund at the 22 close of each fiscal year shall not revert but shall remain 23 available in the grant program fund for the purposes of this 24 section. 25 4. The grant program fund shall be administered by the 26 board. 27 5. Moneys in the grant program fund are appropriated to and 28 shall be used by the board as provided in this subsection. 29 a. Up to fifty thousand dollars shall be allocated each 30 fiscal year to the board to support the administration of 31 the grant program. The board may use up to one and one-half 32 percent of the moneys in the grant program fund each fiscal 33 year to market the grant program. Otherwise the moneys shall 34 not be transferred, used, obligated, appropriated, or otherwise 35 -2- LSB 1613YC (1) 86 tr/nh 2/ 4

H.F. _____ encumbered except to allocate as grants by the board in 1 accordance with this subsection. 2 b. The board shall establish a grant program to award grants 3 from moneys in the grant program fund to eligible applicants to 4 replace underground storage tank infrastructure, including but 5 not limited to tanks, lines, pipes, hoses, connections, seals, 6 and pumps. 7 (1) The board shall adopt rules pursuant to chapter 17A 8 for implementation and administration of the grant program and 9 grant program fund, including regarding the eligibility of 10 grant applicants. 11 (2) At a minimum, replacement infrastructure must be listed 12 by an independent testing laboratory as compatible for use with 13 ethanol blended gasoline classified as E-85. 14 (3) An eligible applicant may be awarded a grant worth up 15 to fifty percent of the cost to replace infrastructure, with a 16 maximum grant of one hundred thousand dollars. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill creates an underground storage tank cost share 21 grant program and a corresponding fund within the state 22 treasury in Code chapter 455G. The grant program fund shall 23 be credited $1.75 million per quarter from the statutory 24 allocations fund pursuant to Code section 321.145. The grant 25 program fund shall be administered by the Iowa comprehensive 26 petroleum underground storage tank fund board. The grant 27 program funds shall be allocated as grants by the board to 28 replace underground storage tank infrastructure, including but 29 not limited to tanks, lines, pipes, hoses, connections, seals, 30 and pumps. At a minimum, replacement infrastructure must be 31 listed by an independent testing laboratory as compatible 32 for use with ethanol blended gasoline classified as E-85. 33 An eligible applicant may be awarded a grant worth up to 50 34 percent of the cost to replace infrastructure, with a maximum 35 -3- LSB 1613YC (1) 86 tr/nh 3/ 4

H.F. _____ grant of $100,000. The bill requires the Iowa comprehensive 1 petroleum underground storage tank fund board to adopt rules to 2 implement and administer the grant program and fund. 3 The bill changes the amount credited from the statutory 4 allocations fund to the Iowa comprehensive petroleum 5 underground storage tank fund per quarter from $3.5 million to 6 $1.75 million. 7 The bill extends the duration of the environmental 8 protection charge on petroleum diminution collected from 9 underground storage tank owners or operators until June 30, 10 2026. 11 The bill increases from three to five the number of seats 12 on the Iowa comprehensive petroleum underground storage tank 13 fund board filled by owners or operators of underground storage 14 tanks and adds consultants to the possible persons who may fill 15 those five seats. 16 -4- LSB 1613YC (1) 86 tr/nh 4/ 4