House Study Bill 638 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF TRANSPORTATION BILL) A BILL FOR An Act modifying allocations from the statutory allocations 1 fund, creating the Iowa tanks fund and Iowa tanks fund 2 financing program, repealing a tax credit, making transfers 3 and appropriations, and including transition and effective 4 date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5257DP (9) 86 tr/tm

S.F. _____ H.F. _____ DIVISION I 1 UNDERGROUND STORAGE TANK FUND AND RENEWABLE FUEL INFRASTRUCTURE 2 FUND ALLOCATIONS —— UNDERGROUND STORAGE TANKS REMEDIAL ACTION 3 TAX CREDIT AND CLAIMS 4 Section 1. Section 321.145, subsection 2, paragraph a, Code 5 2016, is amended by striking the paragraph. 6 Sec. 2. Section 321.145, subsection 2, paragraph b, Code 7 2016, is amended to read as follows: 8 b. Moneys remaining after the operation of paragraph “a” 9 shall be credited in order of priority as follows: 10 (1) An amount equal to four percent of the revenue from the 11 operation of section 321.105A, subsection 2 , shall be credited 12 to the department, to be used for purposes of public transit 13 assistance under chapter 324A . 14 (2) An amount equal to two dollars per year of license 15 validity for each issued or renewed driver’s license which is 16 valid for the operation of a motorcycle shall be credited to 17 the motorcycle rider education fund established under section 18 321.179 . 19 (3) The amounts required to be transferred pursuant to 20 section 321.34 from revenues available under this subsection 21 shall be transferred and credited as provided in section 22 321.34, subsections 7, 10, 10A, 11, 11A, 11B, 13, 16, 17, 23 18, 19, 20, 20A, 20B, 20C, 21, 22, 23, 24, 25, and 26 for the 24 various purposes specified in those subsections. 25 Sec. 3. NEW SECTION . 427B.23 Repeal. 26 This division is repealed July 1, 2016. 27 Sec. 4. NEW SECTION . 455G.22 Eligible claims and date. 28 A claim for a release filed after December 31, 2016, shall 29 not be eligible for payment from the Iowa comprehensive 30 petroleum underground storage tank fund. 31 DIVISION II 32 IOWA TANKS FUND FINANCING PROGRAM —— UNDERGROUND STORAGE TANK 33 FUND REPEAL 34 Sec. 5. NEW SECTION . 16.145 Definitions. 35 -1- LSB 5257DP (9) 86 tr/tm 1/ 17

S.F. _____ H.F. _____ As used in this part: 1 1. “Claimant” means an owner or operator who has received 2 assistance under the Iowa tanks fund or its predecessor, the 3 Iowa comprehensive petroleum underground storage tank fund 4 created in chapter 455G, Code 2017. 5 2. “Costs” means all costs, charges, expenses, or other 6 indebtedness incurred by a claimant and determined by the 7 department as reasonable and necessary for carrying out 8 all works and undertakings necessary or incidental to the 9 accomplishment of any project. 10 3. “Department” means the department of natural resources 11 created in section 455A.2. 12 4. “Director” means the director of the department of 13 natural resources. 14 5. “Program” means the Iowa tanks fund financing program 15 created pursuant to section 455B.472A. 16 Sec. 6. NEW SECTION . 16.146 Iowa tanks fund financing 17 program. 18 1. The authority shall cooperate with the department in the 19 creation, administration, and financing of the program. 20 2. The authority shall administer the Iowa tanks fund 21 created in section 455B.472A to carry out the purposes of 22 the program and shall manage the funding, administration, 23 investment, restrictions, and disposition of the fund. 24 3. The authority shall work cooperatively with the director 25 to distribute financial assistance for work conducted by 26 eligible entities that comply with the requirements of the 27 program. The department shall determine if work completed is 28 eligible for reimbursement from the Iowa tanks fund created for 29 the program. 30 Sec. 7. Section 68B.35, subsection 2, paragraph e, Code 31 2016, is amended to read as follows: 32 e. Members of the state banking council, the ethics and 33 campaign disclosure board, the credit union review board, the 34 economic development authority, the employment appeal board, 35 -2- LSB 5257DP (9) 86 tr/tm 2/ 17

S.F. _____ H.F. _____ the environmental protection commission, the health facilities 1 council, the Iowa finance authority, the Iowa public employees’ 2 retirement system investment board, the board of the Iowa 3 lottery authority, the natural resource commission, the board 4 of parole, the petroleum underground storage tank fund board, 5 the public employment relations board, the state racing and 6 gaming commission, the state board of regents, the tax review 7 board, the transportation commission, the office of consumer 8 advocate, the utilities board, the Iowa telecommunications 9 and technology commission, and any full-time members of other 10 boards and commissions as defined under section 7E.4 who 11 receive an annual salary for their service on the board or 12 commission. The Iowa ethics and campaign disclosure board 13 shall conduct an annual review to determine if members of any 14 other board, commission, or authority should file a statement 15 and shall require the filing of a statement pursuant to rules 16 adopted pursuant to chapter 17A . 17 Sec. 8. Section 159A.11, subsection 10, Code 2016, is 18 amended by striking the subsection. 19 Sec. 9. Section 159A.13, subsection 6, Code 2016, is amended 20 by striking the subsection. 21 Sec. 10. Section 159A.14, subsection 2, Code 2016, is 22 amended to read as follows: 23 2. A person may apply to the department to receive financial 24 incentives on a cost-share basis. The department shall forward 25 the applications to the underground storage tank fund board as 26 required by that board for evaluation and recommendation. The 27 underground storage tank fund board may rank the applications 28 with comments and shall forward them to the infrastructure 29 board for approval or disapproval. The department shall award 30 financial incentives on a cost-share basis to an eligible 31 person whose application was approved by the infrastructure 32 board. 33 Sec. 11. Section 159A.15, subsection 1, Code 2016, is 34 amended to read as follows: 35 -3- LSB 5257DP (9) 86 tr/tm 3/ 17

S.F. _____ H.F. _____ 1. A person may apply to the department to receive financial 1 incentives on a cost-share basis. The department shall forward 2 the applications to the underground storage tank fund board as 3 required by that board for evaluation and recommendation. The 4 underground storage tank fund board may rank the applications 5 with comments and shall forward them to the infrastructure 6 board for approval or disapproval. The department shall award 7 financial incentives on a cost-share basis to an eligible 8 person whose application was approved by the infrastructure 9 board. 10 Sec. 12. Section 323.1, subsection 16, Code 2016, is amended 11 to read as follows: 12 16. “Storage tank” means a motor fuel storage tank as 13 defined in section 214.1 , including an underground storage tank 14 subject to regulation under chapter 455G . 15 Sec. 13. Section 422.7, subsection 2, paragraph u, Code 16 2016, is amended by striking the paragraph. 17 Sec. 14. Section 455B.174, subsection 4, paragraph d, Code 18 2016, is amended to read as follows: 19 d. If a public water supply has a groundwater source 20 that contains petroleum, a fraction of crude oil, or their 21 degradation products, or is located in an area deemed by the 22 department as likely to be contaminated by such materials, and 23 after consultation with the public water supply system and 24 consideration of all applicable rules relating to remediation, 25 the department may require the public water supply system to 26 replace that groundwater source in order to receive a permit 27 to operate. The requirement to replace the source shall only 28 be made by the department if the public water supply system 29 is fully compensated for any additional design, construction, 30 operation, and monitoring costs from the Iowa comprehensive 31 petroleum underground storage tank tanks fund created by 32 chapter 455G section 455B.472A or from any other funds that do 33 not impose a financial obligation on the part of the public 34 water supply system. Funds available to or provided by the 35 -4- LSB 5257DP (9) 86 tr/tm 4/ 17

S.F. _____ H.F. _____ public water supply system may be used for system improvements 1 made in conjunction with replacement of the source. The 2 department cannot require a public water supply system to 3 replace its water source with a less reliable water source or 4 with a source that does not meet federal primary, secondary, or 5 other health-based standards unless treatment is provided to 6 ensure that the drinking water meets these standards. Nothing 7 in this paragraph shall affect the public water supply system’s 8 right to pursue recovery from a responsible party. 9 Sec. 15. Section 455B.471, Code 2016, is amended by adding 10 the following new subsections: 11 NEW SUBSECTION . 01. “Authority” means the Iowa finance 12 authority. 13 NEW SUBSECTION . 1A. “Claimant” means an owner or operator 14 who has received assistance under the Iowa tanks fund or its 15 predecessor, the Iowa comprehensive petroleum underground 16 storage tank fund created in chapter 455G, Code 2017. 17 NEW SUBSECTION . 2A. “Costs” means all costs, charges, 18 expenses, or other indebtedness incurred by a claimant and 19 determined by the department as reasonable and necessary for 20 carrying out all works and undertakings necessary or incidental 21 to the accomplishment of any project. 22 NEW SUBSECTION . 3A. “Insurance” means any form of financial 23 assistance or showing of financial responsibility sufficient 24 to comply with the federal Resource Conservation and Recovery 25 Act, 42 U.S.C. §6901 et seq., or the department’s underground 26 storage tank financial responsibility rules. 27 NEW SUBSECTION . 7A. “Potentially responsible party” means a 28 person who may be responsible or liable for a release for which 29 the fund has made payments for corrective action or third-party 30 liability. 31 NEW SUBSECTION . 9A. “Tank” means an underground storage 32 tank for which proof of financial responsibility is, or on a 33 date definite will be, required to be maintained pursuant to 34 the federal Resource Conservation and Recovery Act and the 35 -5- LSB 5257DP (9) 86 tr/tm 5/ 17

S.F. _____ H.F. _____ regulations from time-to-time adopted pursuant to that Act or 1 successor Acts or amendments. 2 NEW SUBSECTION . 10A. “Third-party liability” means both of 3 the following: 4 a. Property damage including physical injury to tangible 5 property, but not including loss of use, other than costs to 6 remediate. 7 b. Bodily injury including sickness, bodily injury, illness, 8 or death. 9 Sec. 16. Section 455B.471, subsection 1, Code 2016, is 10 amended by striking the subsection. 11 Sec. 17. Section 455B.471, subsection 3, Code 2016, is 12 amended to read as follows: 13 3. “Fund” means the Iowa comprehensive petroleum underground 14 storage tank tanks fund created in section 455B.472A . 15 Sec. 18. NEW SECTION . 455B.472A Iowa tanks fund financing 16 program —— fund created. 17 1. The department, in cooperation with the authority, 18 shall establish and administer an Iowa tanks fund financing 19 program for the purpose of reimbursing underground storage tank 20 owners for all or part of the costs of corrective action for 21 previously unknown petroleum releases. The department and the 22 authority may together enter into and provide any agreements, 23 documents, instruments, certificates, data, or information 24 necessary in connection with the operation, administration, 25 and financing of the program consistent with this part, the 26 federal Resource Conservation and Recovery Act, 42 U.S.C. 27 §6901 et seq., the rules of the commission, the rules of the 28 authority, and other applicable federal and state law. The 29 authority and the department may act to conform the program to 30 the applicable guidance and regulations adopted by the United 31 States environmental protection agency. 32 2. An Iowa tanks fund is created in the state treasury 33 under the control of the authority and consisting of moneys 34 appropriated or transferred to the fund, cost recovery 35 -6- LSB 5257DP (9) 86 tr/tm 6/ 17

S.F. _____ H.F. _____ enforcement moneys collected pursuant to section 455B.472B, 1 civil enforcement moneys recovered pursuant to section 2 455B.477, interest attributable to moneys in the fund, moneys 3 in the form of a devise, gift, bequest, donation, federal or 4 other grant, reimbursement, repayment, judgment, or payment 5 from any source intended to be used for the purposes of the 6 fund, all receipts by the fund, and any other moneys credited 7 to the fund from any public or private source. Notwithstanding 8 section 12C.7, subsection 2, interest or earnings on moneys in 9 the Iowa tanks fund shall be credited to the Iowa tanks fund. 10 3. Moneys in the Iowa tanks fund shall be used to reimburse 11 tank owners for all or part of the costs of a corrective action 12 for a petroleum release, and for administrative costs of the 13 department. 14 4. Moneys in the Iowa tanks fund are not considered part of 15 the general fund of the state, are not subject to appropriation 16 for any other purpose by the general assembly, and the balance 17 of the Iowa tanks fund shall not be considered part of the 18 balance of the general fund of the state. The fund is a 19 separate dedicated fund under the administration and control of 20 the authority as provided under section 16.146. 21 5. The state, the general fund of the state, and all other 22 funds of the state other than the Iowa tanks fund are not 23 liable for a claim or cause of action in connection with a tank 24 not owned or operated by the state, or agency of the state. 25 All expenses incurred by the fund are payable solely from the 26 fund and no liability or obligation is imposed upon the state. 27 The liability of the fund is limited to the extent of coverage 28 provided by the applicable account within the fund under which 29 a claim is submitted, subject to the terms and conditions of 30 that coverage. The liability of the fund is further limited by 31 the moneys made available to the fund, and no remedy shall be 32 ordered which would require the fund to exceed its then current 33 funding limitations to satisfy an award or which would restrict 34 the availability of moneys for higher priority sites. The 35 -7- LSB 5257DP (9) 86 tr/tm 7/ 17

S.F. _____ H.F. _____ state is not liable for a claim presented against the fund. 1 6. The department shall prioritize uses of the moneys in the 2 fund based upon rules adopted by the commission in cooperation 3 with the authority. Department discretion for use of the 4 moneys in the fund shall not be subject to section 455B.478. 5 7. a. For the fiscal year beginning July 1, 2017, and each 6 fiscal year thereafter, there is appropriated from the Iowa 7 tanks fund to the department two hundred thousand dollars to 8 support the administration of the fund. 9 b. Notwithstanding section 8.33, moneys appropriated in this 10 subsection that remain unencumbered or unobligated at the close 11 of the fiscal year shall not revert but shall remain available 12 for expenditure for the purposes designated until the close of 13 the succeeding fiscal year. 14 c. This subsection is repealed July 1, 2022. 15 Sec. 19. NEW SECTION . 455B.472B Cost recovery enforcement. 16 1. Full recovery sought from owner. The department may seek 17 full recovery from the owner, operator, or other potentially 18 responsible party liable for the released petroleum which is 19 the subject of a corrective action, for which the Iowa tanks 20 fund expends moneys, or for which the former Iowa comprehensive 21 petroleum underground storage tank fund established pursuant 22 to section 455G.3, Code 2017, expended moneys, for corrective 23 action or third-party liability, and for all other costs, 24 including reasonable attorney fees and costs of litigation for 25 which moneys are expended by the fund in connection with the 26 release. When federal cleanup funds are recovered, the federal 27 cleanup funds shall be used solely for the purpose of future 28 cleanup activities. 29 2. Limitation of liability of owner or operator. Except 30 as provided in subsection 3, the department shall not seek 31 recovery for expenses in connection with corrective action for 32 a release from an owner or operator eligible for assistance 33 under the Iowa tanks fund except for any unpaid portion of the 34 deductible or copayment. This section does not affect any 35 -8- LSB 5257DP (9) 86 tr/tm 8/ 17

S.F. _____ H.F. _____ authorization of the department to impose or collect civil or 1 administrative fines or penalties or fees. The fund shall not 2 be held liable for any third-party liability. 3 3. Owner or operator not in compliance, subject to full 4 and total cost recovery. Notwithstanding subsection 2, the 5 liability of an owner or operator shall be the full and total 6 costs of corrective action and bodily injury or property damage 7 to third parties, as specified in subsection 1, if the owner or 8 operator has not complied with the financial responsibility or 9 other underground storage tank rules of the department or with 10 this part and rules adopted under this part. 11 4. Treble damages for certain violations. 12 a. Notwithstanding subsections 2 and 3, the owner or 13 operator, or both, of a tank are liable to the Iowa tanks fund 14 for punitive damages in an amount equal to three times the 15 amount of any cost incurred or moneys expended by the fund as a 16 result of a release of petroleum from the tank if the owner or 17 operator did any of the following: 18 (1) Failed, without sufficient cause, to respond to a 19 release of petroleum from the tank upon, or in accordance with, 20 a notice issued by the director of the department. 21 (2) After May 5, 1989, failed to perform any of the 22 following: 23 (a) Failed to register the tank, which was known to exist or 24 reasonably should have been known to exist. 25 (b) Intentionally failed to report a known release. 26 b. The punitive damages imposed under this subsection are in 27 addition to any costs or expenditures recovered from the owner 28 or operator pursuant to this part and in addition to any other 29 penalty or relief provided by this part or any other law. 30 c. However, the state, a city, county, or other political 31 subdivision shall not be liable for punitive damages. 32 5. Lien on tank site. Any amount for which an owner 33 or operator is liable to the Iowa tanks fund, if not paid 34 when due, by statute, rule, or contract, or determination of 35 -9- LSB 5257DP (9) 86 tr/tm 9/ 17

S.F. _____ H.F. _____ liability by the department after hearing, shall constitute 1 a lien upon the real property where the tank, which was the 2 subject of corrective action, is situated, and the liability 3 shall be collected in the same manner as the environmental 4 protection charge pursuant to section 424.11, Code 2016. 5 6. Joinder of parties. The department has standing in any 6 case or contested action related to the Iowa tanks fund or a 7 tank to assert any claim that the department may have regarding 8 the tank at issue in the case or contested action. Upon 9 motion and sufficient showing by a party to a cost recovery or 10 subrogation action provided for under this section, the court 11 or the administrative law judge shall join to the action any 12 potentially responsible party who may be liable for costs and 13 expenditures of the type recoverable pursuant to this section. 14 7. Strict liability. The standard of liability for a 15 release of petroleum or other regulated substance is strict 16 liability. 17 8. Third-party contracts not binding on department 18 —— proceedings against responsible party. An insurance, 19 indemnification, hold harmless, conveyance, or similar 20 risk-sharing or risk-shifting agreement shall not be effective 21 to transfer any liability for costs recoverable under this 22 section. The department may proceed directly against the 23 owner or operator or other allegedly responsible party. 24 This section does not bar any agreement to insure, hold 25 harmless, or indemnify a party to the agreement for any costs 26 or expenditures under this part, and does not modify rights 27 between the parties to an agreement, except to the extent the 28 agreement shifts liability to an owner or operator eligible 29 for assistance under the Iowa tanks fund for any damages or 30 other expenses in connection with a corrective action for which 31 another potentially responsible party is or may be liable. Any 32 such provision is null and void and of no force or effect. 33 9. Later proceedings permitted against other parties. The 34 entry of judgment against a party to the action does not bar 35 -10- LSB 5257DP (9) 86 tr/tm 10/ 17

S.F. _____ H.F. _____ a future action by the department against another person who 1 is later alleged to be or discovered to be liable for costs 2 and expenditures paid by the Iowa tanks fund. Notwithstanding 3 section 668.5, a potentially responsible party shall not seek 4 contribution or any other recovery from an owner or operator 5 eligible for assistance under the fund for damages or other 6 expenses in connection with corrective action for a release for 7 which the potentially responsible party is or may be liable. 8 Subsequent successful proceedings against another party shall 9 not modify or reduce the liability of a party against whom 10 judgment has been previously entered. 11 10. Claims against potentially responsible parties. 12 a. Upon payment by the Iowa tanks fund for corrective 13 action or third-party liability pursuant to this part, the 14 rights of the claimant to recover payment from any potentially 15 responsible party are assumed by the department to the extent 16 paid by the fund. A claimant is precluded from receiving 17 double compensation for the same injury. 18 b. In an action brought pursuant to this part seeking 19 damages for corrective action or third-party liability, the 20 court shall permit evidence and argument as to the replacement 21 or indemnification of actual economic losses incurred or to be 22 incurred in the future by the claimant by reason of insurance 23 benefits, governmental benefits or programs, or from any other 24 source. 25 c. A claimant may elect to permit the department to 26 pursue the claimant’s cause of action for any injury not 27 compensated by the Iowa tanks fund against any potentially 28 responsible party, provided the attorney general determines 29 such representation would not be a conflict of interest. If 30 a claimant so elects, the department’s litigation expenses 31 shall be shared on a pro rata basis with the claimant, but the 32 claimant’s share of litigation expenses is payable exclusively 33 from any share of the settlement or judgment payable to the 34 claimant. 35 -11- LSB 5257DP (9) 86 tr/tm 11/ 17

S.F. _____ H.F. _____ 11. Exclusion of punitive damages. The Iowa tanks fund 1 shall not be liable in any case for punitive damages. 2 Sec. 20. Section 455B.474, subsection 1, paragraph a, 3 subparagraph (6), subparagraph divisions (g), (i), and (j), 4 Code 2016, are amended to read as follows: 5 (g) An owner or operator may elect to proceed with 6 additional corrective action on the site. However, any 7 action taken in addition to that required pursuant to this 8 subparagraph (6), shall be solely at the expense of the owner 9 or operator and shall not be considered corrective action 10 for purposes of section 455G.9 455B.472A , unless otherwise 11 previously agreed to by the board department and the owner or 12 operator pursuant to section 455G.9, subsection 7 455B.472A . 13 Corrective action taken by an owner or operator due to the 14 department’s failure to meet the time requirements provided in 15 subparagraph division (e) shall be considered corrective action 16 for purposes of section 455G.9 455B.472A . 17 (i) Replacement or upgrade of a tank on a site classified 18 as a high or low risk site shall be equipped with a secondary 19 containment system with monitoring of the space between the 20 primary and secondary containment structures or other board 21 approved department-approved tank system or methodology. 22 (j) The commission and the board department shall cooperate 23 to ensure that remedial measures required by the corrective 24 action rules adopted pursuant to this subparagraph (6) are 25 reasonably cost-effective and shall, to the fullest extent 26 possible, avoid duplicating and conflicting requirements. 27 Sec. 21. Section 455B.474, subsection 9, paragraph d, Code 28 2016, is amended to read as follows: 29 d. The certification of groundwater professionals shall not 30 impose liability on the board, the department , or the fund for 31 any claim or cause of action of any nature, based on the action 32 or inaction of a groundwater professional certified pursuant 33 to this subsection . 34 Sec. 22. Section 455B.474, Code 2016, is amended by adding 35 -12- LSB 5257DP (9) 86 tr/tm 12/ 17

S.F. _____ H.F. _____ the following new subsection: 1 NEW SUBSECTION . 11. Prioritization for use of moneys from 2 the Iowa tanks fund for corrective action to address releases 3 from petroleum underground storage tanks. 4 Sec. 23. Section 455B.475, Code 2016, is amended by adding 5 the following new subsections: 6 NEW SUBSECTION . 4. Assure that in combination with existing 7 state statutes and rules governing underground storage tanks, 8 the state will be, and continue to be, recognized by the 9 federal government as having an “approved state account” under 10 the federal Resource Conservation and Recovery Act, 42 U.S.C. 11 §6921–6934, especially by compliance with the Act’s subtitle I 12 financial responsibility requirements as enacted in the federal 13 Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. 14 §9601 et seq., and the financial responsibility regulations 15 adopted by the United States environmental protection agency at 16 40 C.F.R. pts. 280 and 281. Whenever possible, this part shall 17 be interpreted to further the purposes of, and to comply and 18 not to conflict with, such federal requirements. 19 NEW SUBSECTION . 5. Coordinate with the Iowa finance 20 authority to process, review, and pay claims under the Iowa 21 tanks fund financing program established in section 455B.472A. 22 Sec. 24. Section 455B.477, subsection 7, Code 2016, is 23 amended to read as follows: 24 7. The civil penalties or other damages or moneys recovered 25 by the state or the petroleum underground storage tank fund 26 in connection with a petroleum underground storage tank under 27 this part of this division or chapter 455G shall be credited 28 to the Iowa tanks fund created in section 455G.3 and allocated 29 between fund accounts according to the fund budget 455B.472A . 30 Any federal moneys, including but not limited to federal 31 underground storage tank trust fund moneys, received by the 32 state or the department of natural resources in connection 33 with a release occurring on or after May 5, 1989, or received 34 generally for underground storage tank programs on or after 35 -13- LSB 5257DP (9) 86 tr/tm 13/ 17

S.F. _____ H.F. _____ May 5, 1989, shall be credited to the fund created in section 1 455G.3 and allocated between fund accounts according to the 2 fund budget, unless such use would be contrary to federal 3 law. The department shall cooperate with the board of the 4 Iowa comprehensive petroleum underground storage tank fund to 5 maximize the state’s eligibility for and receipt of federal 6 funds for underground storage tank related purposes 455B.472A . 7 Sec. 25. Section 455B.478, Code 2016, is amended to read as 8 follows: 9 455B.478 Judicial review. 10 Except as provided in section 455B.477, subsection 5 , and 11 section 455B.472A , judicial review of an order or other action 12 of the commission or the director may be sought in accordance 13 with chapter 17A . Notwithstanding chapter 17A , the Iowa 14 administrative procedure Act, petitions for judicial review 15 may be filed in the district court of the county in which the 16 alleged offense was committed or the final order was entered. 17 Sec. 26. Section 455E.11, subsection 2, paragraph d, 18 subparagraph (3), Code 2016, is amended by striking the 19 subparagraph. 20 Sec. 27. NEW SECTION . 455G.22A Future repeal. 21 This subchapter is repealed July 1, 2017. 22 Sec. 28. Section 455I.2, subsection 5, paragraph a, Code 23 2016, is amended to read as follows: 24 a. A federal or state program that is subject to the 25 jurisdiction of an agency, including but not limited to 26 programs established by chapters chapter 455B and 455G section 27 455B.472A , corrective or response actions pursuant to 42 U.S.C. 28 §6901 et seq., and remedial actions under 42 U.S.C. §9601 et 29 seq. 30 Sec. 29. TRANSITION PROVISIONS. 31 1. Upon repeal of chapter 455G, subchapter I, and the 32 creation of the Iowa tanks fund pursuant to section 455B.472A, 33 as enacted in this Act, all moneys in all funds administered by 34 the Iowa comprehensive petroleum underground storage tank fund 35 -14- LSB 5257DP (9) 86 tr/tm 14/ 17

S.F. _____ H.F. _____ board are transferred to the Iowa finance authority for deposit 1 in the Iowa tanks fund. Any moneys credited to any fund 2 administered by the Iowa comprehensive petroleum underground 3 storage tank fund board after July 1, 2017, are transferred to 4 the Iowa finance authority for deposit in the Iowa tanks fund. 5 2. Any rule, regulation, form, order, or directive 6 promulgated by the Iowa comprehensive petroleum underground 7 storage tank fund board as required to administer and enforce 8 the provisions relating to the Iowa comprehensive petroleum 9 underground storage tank fund shall continue in full force and 10 effect until amended, repealed, or supplemented by affirmative 11 action of the department of natural resources and the Iowa 12 finance authority. 13 3. The Iowa comprehensive petroleum underground storage 14 tank fund board shall administratively close or terminate 15 any remaining liabilities, contracts, outstanding claims, 16 payments, or other obligations for open comprehensive petroleum 17 underground storage tank fund claims in existence on June 30, 18 2017. 19 Sec. 30. EFFECTIVE DATE and IMPLEMENTATION. This division 20 of this Act shall take effect July 1, 2017, except that the 21 department of natural resources and the Iowa finance authority 22 may begin implementation prior to July 1, 2017, to the 23 extent necessary to transition to full implementation of the 24 provisions relating to the Iowa tanks fund and repeal of the 25 Iowa comprehensive petroleum underground storage tank fund. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill creates the Iowa tanks fund within the Iowa 30 finance authority (authority), and authorizes the authority to 31 cooperate with the department of natural resources to create, 32 administer, and finance the fund. 33 Under current law, funds collected through the environmental 34 protection charge created in Code chapter 424 are deposited 35 -15- LSB 5257DP (9) 86 tr/tm 15/ 17

S.F. _____ H.F. _____ into the statutory allocations fund of the department of 1 transportation and allocated to the Iowa comprehensive 2 petroleum underground storage tank fund and the renewable fuel 3 infrastructure fund. The environmental protection charge 4 expires on June 30, 2016. The bill eliminates transfers from 5 the statutory allocations fund to the Iowa comprehensive 6 petroleum underground storage tank fund and the renewable fuel 7 infrastructure fund effective July 1, 2016. 8 The bill amends the Code in several instances to update the 9 name of the fund used to compensate the replacement of public 10 water supply wells contaminated with petroleum from the Iowa 11 comprehensive petroleum underground storage tank fund to the 12 Iowa tanks fund. 13 The bill creates the Iowa tanks fund financing program 14 within the department of natural resources to be cooperatively 15 administered with the authority. For the fiscal year beginning 16 July 1, 2017, and each fiscal year thereafter, the bill 17 appropriates from the Iowa tanks fund to the department 18 $200,000 for purposes of supporting the department’s protection 19 of the state’s groundwater from petroleum releases from leaking 20 underground storage tanks. This appropriation sunsets after 21 five years. The bill allows for cost recovery efforts from 22 potentially liable parties when moneys from the Iowa tanks fund 23 are used during the cleanup of contamination at a tank site. 24 The bill directs the environmental protection commission 25 to adopt rules for prioritizing the use of moneys and 26 eligible expenses from the Iowa tanks fund. The bill includes 27 provisions designed to assure that the Iowa tanks fund will 28 be recognized by the federal government as an approved state 29 account, as the Iowa comprehensive petroleum underground 30 storage tank fund is currently. 31 The bill states that the discretion of the department of 32 natural resources regarding the prioritization of the use of 33 funds in the Iowa tanks fund is not subject to judicial review. 34 The bill repeals the existing Iowa comprehensive petroleum 35 -16- LSB 5257DP (9) 86 tr/tm 16/ 17

S.F. _____ H.F. _____ underground storage tank fund and eliminates the Iowa 1 comprehensive petroleum underground storage tank fund board 2 as of July 1, 2017. The bill repeals a local option tax 3 credit available to those who remediate underground storage 4 tanks as of July 1, 2016. The bill provides that claims for 5 releases filed after December 31, 2016, shall not be eligible 6 for payment from the Iowa comprehensive petroleum underground 7 storage tank fund. 8 The bill includes transition provisions providing for 9 the effectiveness of rules, regulations, forms, orders, or 10 directives promulgated by the Iowa comprehensive petroleum 11 underground storage tank fund board until amended, repealed, or 12 supplemented by affirmative action of the department of natural 13 resources and the Iowa finance authority. 14 The portions of the bill related to the transfers from the 15 statutory allocations fund, setting a cut-off date for claims 16 for releases from the Iowa comprehensive petroleum underground 17 storage tank fund, and repealing the tax credit are effective 18 July 1, 2016. The remaining portions of the bill are effective 19 July 1, 2017, except that the department of natural resources 20 and the Iowa finance authority may begin implementation prior 21 to that date. 22 -17- LSB 5257DP (9) 86 tr/tm 17/ 17