Senate File 2401 - Introduced SENATE FILE 2401 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SF 2371) (SUCCESSOR TO SSB 3062) A BILL FOR An Act relating to underground storage tanks, including by 1 creating the Iowa tanks fund and Iowa tanks fund financing 2 program, repealing the Iowa comprehensive petroleum 3 underground storage tank fund, and eliminating the Iowa 4 comprehensive petroleum underground storage tank fund 5 board, requiring a study, and including effective date and 6 transition provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 5194SZ (2) 88 js/ns

S.F. 2401 DIVISION I 1 IOWA TANKS FUND 2 Section 1. Section 455B.471, subsection 1, Code 2020, is 3 amended by striking the subsection. 4 Sec. 2. Section 455B.471, Code 2020, is amended by adding 5 the following new subsections: 6 NEW SUBSECTION . 1A. “Claimant” means an owner or operator 7 who has received assistance under the Iowa tanks fund or its 8 predecessor, the Iowa comprehensive petroleum underground 9 storage tank fund created in section 455G.3, Code 2019. 10 NEW SUBSECTION . 1B. “Community remediation” means a 11 curriculum of coordinated testing, planning, or remediation 12 involving two or more tank sites potentially connected with a 13 continuous contaminated area, pursuant to rules adopted by the 14 commission under section 455B.474. A community remediation 15 does not expand the scope of coverage otherwise available or 16 relieve liability otherwise imposed under state or federal law. 17 NEW SUBSECTION . 2A. “Costs” means all costs, charges, 18 expenses, or other indebtedness incurred by a claimant that 19 are determined by the department to be reasonable for carrying 20 out all works and undertakings necessary or incidental to the 21 accomplishment of any project. “Costs” includes reasonable 22 attorney fees and costs of litigation for which moneys are 23 expended from the fund in connection with a release. 24 NEW SUBSECTION . 3A. “Insurance” means any form of financial 25 assistance or showing of financial responsibility sufficient 26 to comply with the federal Resource Conservation and Recovery 27 Act, 42 U.S.C. §6901 et seq., or the department’s underground 28 storage tank financial responsibility rules. 29 NEW SUBSECTION . 7A. “Potentially responsible party” means 30 a person who may be responsible or liable for a release for 31 which payments from the fund were made for corrective action or 32 third-party liability. 33 NEW SUBSECTION . 7B. “Program” means the Iowa tanks fund 34 financing program created pursuant to section 455B.472A. 35 -1- LSB 5194SZ (2) 88 js/ns 1/ 17

S.F. 2401 NEW SUBSECTION . 10A. “Third-party liability” means any of 1 the following: 2 a. Property damage including physical injury to tangible 3 property, but not including loss of use. Property damage does 4 not include costs to remediate. 5 b. Bodily injury including sickness, physical injury, or 6 death. 7 Sec. 3. Section 455B.471, subsection 3, Code 2020, is 8 amended to read as follows: 9 3. “Fund” means the Iowa comprehensive petroleum underground 10 storage tank tanks fund created in section 455B.472A . 11 Sec. 4. Section 455B.472, Code 2020, is amended to read as 12 follows: 13 455B.472 Declaration of policy. 14 The general assembly finds that the release of regulated 15 substances from underground storage tanks constitutes a 16 threat to the public health and safety and to the natural 17 resources of the state, and that existing regulatory programs 18 of the department and other agencies do not adequately or 19 appropriately address this substantial public concern. 20 Additionally, the general assembly recognizes that because the 21 appropriation of moneys to the Iowa comprehensive petroleum 22 underground storage tank fund created in section 455G.3, Code 23 2019, ended on December 31, 2016, it is in the public interest 24 to expeditiously use any remaining moneys from the Iowa 25 comprehensive petroleum underground storage tank fund to assist 26 as many owners as possible with financing all or part of the 27 costs of corrective action for petroleum releases from leaking 28 underground storage tanks through the establishment of the Iowa 29 tanks fund financing program. The financing program shall last 30 as long as moneys remain available, and the general assembly 31 recognizes that moneys available for the financing program will 32 eventually be depleted. 33 Sec. 5. NEW SECTION . 455B.472A Iowa tanks fund financing 34 program —— fund created. 35 -2- LSB 5194SZ (2) 88 js/ns 2/ 17

S.F. 2401 1. The department shall establish and administer an Iowa 1 tanks fund financing program for the purpose of reimbursing 2 eligible claimants for all or part of the costs of corrective 3 action for petroleum releases previously eligible for payment 4 from the Iowa comprehensive petroleum underground storage tank 5 fund pursuant to chapter 455G, Code 2019. 6 2. The department shall distribute financial assistance, up 7 to one million dollars total, for work conducted by eligible 8 entities that comply with the requirements of the program. The 9 department shall determine if work completed is eligible for 10 reimbursement under the program. 11 3. The department may enter into and provide any agreements, 12 documents, instruments, certificates, data, or information 13 necessary in connection with the operation, administration, and 14 financing of the program consistent with this part, the federal 15 Resource Conservation and Recovery Act, 42 U.S.C. §6901 et 16 seq., the rules of the commission, and other applicable federal 17 and state law. 18 4. The department may act to conform the program to the 19 applicable guidance and regulations adopted by the United 20 States environmental protection agency. 21 5. The Iowa tanks fund is created in the state treasury 22 under the control of the department. The fund shall consist 23 of moneys appropriated or transferred to the fund, interest 24 attributable to moneys in the fund, moneys in the form of 25 a devise, gift, bequest, donation, federal or other grant, 26 reimbursement, repayment, judgment, or payment from any source 27 intended to be used for the purposes of the fund, all receipts 28 by the fund, and any other moneys credited to the fund from any 29 public or private source. Notwithstanding section 8.33, any 30 moneys in the fund shall not revert to the general fund of the 31 state. Notwithstanding section 12C.7, subsection 2, interest 32 or earnings on moneys in the fund shall be credited to the 33 fund. 34 6. The department shall administer the fund to carry out 35 -3- LSB 5194SZ (2) 88 js/ns 3/ 17

S.F. 2401 the purposes of the program and shall manage the revenue, 1 administration, restrictions, and disposition of the fund. 2 7. Moneys in the fund shall be used to reimburse tank owners 3 for all or part of the costs of a corrective action for a 4 petroleum release and for permanent closure of an underground 5 storage tank system under the program, for additional 6 assessment and corrective action arising out of releases at 7 sites for which a certificate of no further action has been 8 issued, for tank operator training, and for administrative 9 costs of the department associated with the program. 10 8. a. For the fiscal year beginning July 1, 2021, and for 11 each fiscal year thereafter through the fiscal year beginning 12 July 1, 2026, two hundred fifty thousand dollars per year of 13 the moneys in the fund are appropriated to the department of 14 agriculture and land stewardship for the sole and exclusive 15 purpose of inspecting fuel quality at pipeline terminals and 16 renewable fuel production facilities, including associated 17 salaries, support, maintenance, and miscellaneous purposes. 18 b. Notwithstanding section 8.33, moneys appropriated in this 19 subsection that remain unencumbered or unobligated at the close 20 of a fiscal year shall not revert but shall remain available 21 for expenditure for the purposes designated until the close of 22 the succeeding fiscal year. 23 9. Moneys in the fund are not considered part of the general 24 fund of the state and are not subject to appropriation for any 25 other purpose by the general assembly. The fund is a separate 26 dedicated fund under the administration and control of the 27 department. 28 10. Payments for reimbursement or other costs relating to 29 any claim or cause of action in connection with a tank not 30 owned or operated by the state or an agency of the state shall 31 be made solely from the fund and no liability is otherwise 32 imposed upon the state. Moneys from the fund are limited 33 to the extent of coverage provided by the applicable account 34 within the fund under which a claim is submitted, subject 35 -4- LSB 5194SZ (2) 88 js/ns 4/ 17

S.F. 2401 to the terms and conditions of that coverage. A court, an 1 administrative law judge, the department, or the commission 2 shall not order or approve a remedy that would require the 3 fund to exceed the fund’s then current funding limitations to 4 satisfy an award or that would restrict the availability of 5 moneys for higher priority sites. The state is not otherwise 6 liable for a claim related to the fund and moneys from the 7 general fund shall not be used to pay for reimbursement 8 or other costs relating to any claim or cause of action in 9 connection with a tank not owned or operated by the state or an 10 agency of the state. 11 Sec. 6. NEW SECTION . 455B.472B Cost recovery enforcement. 12 1. Full recovery sought by department. The department 13 may seek full recovery from an owner, operator, or other 14 potentially responsible party liable for a release that is the 15 subject of a corrective action for which moneys from the fund 16 are expended, or for which moneys from the Iowa comprehensive 17 petroleum underground storage tank fund created in section 18 455G.3, Code 2019, were expended, including for third-party 19 liability and for all other costs. If federal cleanup moneys 20 are recovered, the federal cleanup moneys shall be used solely 21 for the purpose of future cleanup activities. 22 2. Limitation of liability of owner or operator. Except 23 as provided in subsection 3, the department shall not seek 24 recovery for expenses in connection with corrective action for 25 a release from an owner or operator eligible for assistance 26 under the program, except for any unpaid portion of the 27 deductible or copayment. This section does not affect any 28 authorization of the department to impose or collect civil or 29 administrative fines, penalties, or fees. Moneys from the fund 30 shall not be used to pay for any third-party liability. 31 3. Owner or operator not in compliance. Notwithstanding 32 subsection 2, the liability of an owner or operator shall be 33 the full and total costs of corrective action and bodily injury 34 or property damage to third parties, as specified in subsection 35 -5- LSB 5194SZ (2) 88 js/ns 5/ 17

S.F. 2401 1, if the owner or operator has not complied with the financial 1 responsibility or other underground storage tank rules of the 2 department or with this part or rules adopted under this part. 3 4. Lien on tank site. Any amount for which an owner or 4 operator is required to pay to the fund by statute, rule, 5 contract, or determination of liability by the department after 6 hearing, if not paid when due, shall constitute a lien upon the 7 real property where the tank that was the subject of corrective 8 action is located, and the payment shall be collected in the 9 same manner as the environmental protection charge pursuant to 10 section 424.11, Code 2016. 11 5. Joinder of parties. The department has standing in 12 any case or contested action related to the fund or a tank 13 to assert any claim that the department may have regarding 14 the tank at issue in the case or contested action. Upon 15 motion and sufficient showing by a party to a cost recovery or 16 subrogation action provided for under this section, the court 17 or the administrative law judge shall join to the action any 18 potentially responsible party who may be liable for costs and 19 expenditures of the type recoverable pursuant to this section. 20 6. Third-party contracts. An insurance, indemnification, 21 hold-harmless, conveyance, or similar risk-sharing or 22 risk-shifting agreement shall not be effective to transfer 23 any liability for costs recoverable under this section. The 24 department may proceed directly against the owner, operator, or 25 other potentially responsible party. This section does not bar 26 any agreement to insure, hold harmless, or indemnify a party to 27 the agreement for any costs or expenditures under this part, 28 and does not modify rights between the parties to an agreement, 29 except to the extent the agreement shifts liability to an owner 30 or operator eligible for assistance under the program for any 31 damages or other costs in connection with a corrective action 32 for which another potentially responsible party is or may be 33 liable. Any such provision is void and of no further force and 34 effect. 35 -6- LSB 5194SZ (2) 88 js/ns 6/ 17

S.F. 2401 7. Later proceedings permitted against other parties. The 1 entry of judgment against a party to the action does not 2 bar a future action by the department against another person 3 who is later alleged to be or discovered to be liable for 4 costs and expenditures paid from the fund. Notwithstanding 5 section 668.5, a potentially responsible party shall not seek 6 contribution or any other recovery from an owner or operator 7 eligible for assistance under the program for damages or other 8 costs in connection with corrective action for a release for 9 which the potentially responsible party is or may be liable. 10 Subsequent successful proceedings against another party shall 11 not modify or reduce the liability of a party against whom 12 judgment has been previously entered. 13 8. Claims against potentially responsible parties. 14 a. Upon payment from the fund for corrective action or 15 third-party liability pursuant to this part, the rights of the 16 claimant to recover payment from any potentially responsible 17 party are assumed by the department to the extent paid from the 18 fund. A claimant shall not receive double compensation for the 19 same injury. 20 b. In an action brought pursuant to this part seeking 21 damages for corrective action or third-party liability, the 22 court shall allow evidence and argument as to the replacement 23 or indemnification of actual economic losses incurred or to be 24 incurred in the future by the claimant by reason of insurance 25 benefits, governmental benefits or programs, or other sources. 26 c. A claimant may elect to authorize the department 27 to pursue the claimant’s cause of action for any injury 28 not compensated from the fund against any potentially 29 responsible party, provided the attorney general determines 30 such representation would not be a conflict of interest. If 31 a claimant so elects, the department’s litigation expenses 32 shall be shared on a pro rata basis with the claimant, but the 33 claimant’s share of litigation expenses is payable exclusively 34 from any share of the settlement or judgment payable to the 35 -7- LSB 5194SZ (2) 88 js/ns 7/ 17

S.F. 2401 claimant. 1 9. Exclusion of punitive damages. Moneys from the fund 2 shall not be used to pay punitive damages. 3 Sec. 7. NEW SECTION . 455B.472C Discretionary rulemaking. 4 1. The commission may adopt rules pursuant to chapter 5 17A conditioning receipt of moneys from the fund to those 6 petroleum-contaminated properties that present a higher degree 7 of risk to the public health and safety or the environment and 8 providing for denial of moneys from the fund to a person who 9 did not make a good-faith attempt to comply with this part. 10 This subsection does not confer a legal right to an owner of a 11 petroleum-contaminated property, or an owner or operator of an 12 underground storage tank located on the property, for receipt 13 of moneys under this part. 14 2. The commission may adopt rules pursuant to chapter 15 17A providing for the transfer of all or a portion of the 16 liabilities relating to the fund. Notwithstanding any other 17 provision to the contrary, the department, upon such transfer, 18 shall not maintain any duty to reimburse claimants for those 19 liabilities transferred. 20 Sec. 8. Section 455B.474, subsection 1, paragraph a, 21 subparagraph (6), subparagraph divisions (g), (i), and (j), 22 Code 2020, are amended to read as follows: 23 (g) An owner or operator may elect to proceed with 24 additional corrective action on the site. However, any 25 action taken in addition to that required pursuant to this 26 subparagraph (6), shall be solely at the expense of the owner 27 or operator and shall not be considered corrective action 28 for purposes of section 455G.9 455B.472A , unless otherwise 29 previously agreed to by the board department and the owner or 30 operator pursuant to section 455G.9, subsection 7 455B.472A . 31 Corrective action taken by an owner or operator due to the 32 department’s failure to meet the time requirements provided in 33 subparagraph division (e) shall be considered corrective action 34 for purposes of section 455G.9 455B.472A . 35 -8- LSB 5194SZ (2) 88 js/ns 8/ 17

S.F. 2401 (i) Replacement or upgrade of a tank on a site classified 1 as a high or low risk site shall be equipped with a secondary 2 containment system with monitoring of the space between the 3 primary and secondary containment structures or other board 4 approved tank system or methodology approved by the department . 5 (j) The commission and the board department shall cooperate 6 to ensure that remedial measures required by the corrective 7 action rules adopted pursuant to this subparagraph (6) are 8 reasonably cost-effective and shall, to the fullest extent 9 possible, avoid duplicating and conflicting requirements. 10 Sec. 9. Section 455B.474, subsection 2, unnumbered 11 paragraph 1, Code 2020, is amended to read as follows: 12 The maintenance of evidence of financial responsibility as 13 the director determines to be feasible and necessary for taking 14 corrective action and for compensating third parties for bodily 15 injury and property damage caused by release of a regulated 16 substance from an underground storage a tank. 17 Sec. 10. Section 455B.474, subsection 9, paragraph d, Code 18 2020, is amended to read as follows: 19 d. The certification of groundwater professionals shall not 20 impose liability on the board, the department , or the fund for 21 any claim or cause of action of any nature, based on the action 22 or inaction of a groundwater professional certified pursuant 23 to this subsection . 24 Sec. 11. Section 455B.474, Code 2020, is amended by adding 25 the following new subsection: 26 NEW SUBSECTION . 11. Department practices and procedures 27 for implementing and administering the Iowa tanks fund 28 financing program. The rules shall include but are not limited 29 to requirements for program eligibility, investigating and 30 settling claims made against the fund, appeal procedures, 31 community remediation, prioritization of fund moneys, 32 funding for tank operator training, additional assessment 33 and corrective action arising out of releases at sites for 34 which a certificate of no further action has been issued, and 35 -9- LSB 5194SZ (2) 88 js/ns 9/ 17

S.F. 2401 reimbursement for the permanent closure of an underground 1 storage tank system. 2 Sec. 12. Section 455B.477, subsection 7, Code 2020, is 3 amended to read as follows: 4 7. The civil penalties or other damages or moneys recovered 5 by the state or the petroleum underground storage tank fund 6 in connection with a petroleum underground storage tank under 7 this part of this division or chapter 455G shall be credited 8 to the fund created in section 455G.3 and allocated between 9 fund accounts according to the fund budget. Any federal 10 moneys, including but not limited to federal underground 11 storage tank trust fund moneys, received by the state or the 12 department of natural resources in connection with a release 13 occurring on or after May 5, 1989, or received generally for 14 underground storage tank programs on or after May 5, 1989, 15 shall be credited to the fund created in section 455G.3 and 16 allocated between fund accounts according to the fund budget 17 455B.472A , unless such use would be contrary to federal law. 18 The department shall cooperate with the board of the Iowa 19 comprehensive petroleum underground storage tank fund to 20 maximize the state’s eligibility for and receipt of federal 21 funds for underground storage tank related purposes. 22 Sec. 13. EFFECTIVE DATE. This division of this Act takes 23 effect July 1, 2021. 24 DIVISION II 25 CONFORMING CHANGES 26 Sec. 14. Section 68B.35, subsection 2, paragraph e, Code 27 2020, is amended to read as follows: 28 e. Members of the state banking council, the Iowa ethics 29 and campaign disclosure board, the credit union review board, 30 the economic development authority, the employment appeal 31 board, the environmental protection commission, the health 32 facilities council, the Iowa finance authority, the Iowa public 33 employees’ retirement system investment board, the board of 34 the Iowa lottery authority, the natural resource commission, 35 -10- LSB 5194SZ (2) 88 js/ns 10/ 17

S.F. 2401 the board of parole, the petroleum underground storage tank 1 fund board, the public employment relations board, the state 2 racing and gaming commission, the state board of regents, the 3 transportation commission, the office of consumer advocate, the 4 utilities board, the Iowa telecommunications and technology 5 commission, and any full-time members of other boards and 6 commissions as defined under section 7E.4 who receive an annual 7 salary for their service on the board or commission. The Iowa 8 ethics and campaign disclosure board shall conduct an annual 9 review to determine if members of any other board, commission, 10 or authority should file a statement and shall require the 11 filing of a statement pursuant to rules adopted pursuant to 12 chapter 17A . 13 Sec. 15. Section 159A.11, subsection 10, Code 2020, is 14 amended by striking the subsection. 15 Sec. 16. Section 159A.13, subsection 6, Code 2020, is 16 amended by striking the subsection. 17 Sec. 17. Section 159A.14, subsection 2, Code 2020, is 18 amended to read as follows: 19 2. A person may apply to the department to receive financial 20 incentives on a cost-share basis. The department shall forward 21 the applications to the underground storage tank fund board as 22 required by that board for evaluation and recommendation. The 23 underground storage tank fund board may rank the applications 24 with comments and shall forward them to the infrastructure 25 board for approval or disapproval. The department shall award 26 financial incentives on a cost-share basis to an eligible 27 person whose application was approved by the infrastructure 28 board. 29 Sec. 18. Section 159A.15, subsection 1, Code 2020, is 30 amended to read as follows: 31 1. A person may apply to the department to receive financial 32 incentives on a cost-share basis. The department shall forward 33 the applications to the underground storage tank fund board as 34 required by that board for evaluation and recommendation. The 35 -11- LSB 5194SZ (2) 88 js/ns 11/ 17

S.F. 2401 underground storage tank fund board may rank the applications 1 with comments and shall forward them to the infrastructure 2 board for approval or disapproval. The department shall award 3 financial incentives on a cost-share basis to an eligible 4 person whose application was approved by the infrastructure 5 board. 6 Sec. 19. Section 323.1, subsection 16, Code 2020, is amended 7 to read as follows: 8 16. “Storage tank” means a motor fuel storage tank as 9 defined in section 214.1 , including an underground storage tank 10 subject to regulation under chapter 455G 455B, division IV, 11 part 8, or section 455G.31 . 12 Sec. 20. Section 422.7, subsection 2, paragraph u, Code 13 2020, is amended by striking the paragraph. 14 Sec. 21. Section 455B.174, subsection 4, paragraph d, Code 15 2020, is amended to read as follows: 16 d. If a public water supply has a groundwater source 17 that contains petroleum, a fraction of crude oil, or their 18 degradation products, or is located in an area deemed by the 19 department as likely to be contaminated by such materials, and 20 after consultation with the public water supply system and 21 consideration of all applicable rules relating to remediation, 22 the department may require the public water supply system to 23 replace that groundwater source in order to receive a permit 24 to operate. The requirement to replace the source shall only 25 be made by the department if the public water supply system 26 is fully compensated for any additional design, construction, 27 operation, and monitoring costs from the Iowa comprehensive 28 petroleum underground storage tank fund created by chapter 29 455G or from any other funds that do not impose a financial 30 obligation on the part of the public water supply system. 31 Funds available to or provided by the public water supply 32 system may be used for system improvements made in conjunction 33 with replacement of the source. The department cannot require 34 a public water supply system to replace its water source with a 35 -12- LSB 5194SZ (2) 88 js/ns 12/ 17

S.F. 2401 less reliable water source or with a source that does not meet 1 federal primary, secondary, or other health-based standards 2 unless treatment is provided to ensure that the drinking water 3 meets these standards. Nothing in this paragraph shall affect 4 the public water supply system’s right to pursue recovery from 5 a responsible party. 6 Sec. 22. Section 455E.11, subsection 2, paragraph d, 7 subparagraph (3), Code 2020, is amended by striking the 8 subparagraph. 9 Sec. 23. Section 455I.2, subsection 5, paragraph a, Code 10 2020, is amended to read as follows: 11 a. A federal or state program that is subject to the 12 jurisdiction of an agency, including but not limited to 13 programs established by chapters chapter 455B and 455G , 14 corrective or response actions pursuant to 42 U.S.C. §6901 et 15 seq., and remedial actions under 42 U.S.C. §9601 et seq. 16 Sec. 24. EFFECTIVE DATE. This division of this Act takes 17 effect July 1, 2021. 18 DIVISION III 19 FUEL TESTING STUDY 20 Sec. 25. FUEL TESTING AND LABORATORY NEEDS STUDY. 21 1. The department of agriculture and land stewardship 22 shall conduct a study regarding the long-term future fuel 23 testing needs in Iowa and how to maximize and leverage the 24 Iowa central fuel testing laboratory located at Iowa central 25 community college. The department may consider any matter 26 that it determines to be relevant, including but not limited 27 to the weights and measures bureau’s testing needs for fuel 28 inspection, cost analysis for future growth and laboratory 29 equipment, and related support services for both the petroleum 30 and renewable fuel industry in Iowa, which may be administered 31 through a grant program. 32 2. The department may consult with Iowa central community 33 college and shall seek comments from persons and fuel industry 34 leaders in Iowa who have an interest in the Iowa central fuel 35 -13- LSB 5194SZ (2) 88 js/ns 13/ 17

S.F. 2401 testing laboratory. 1 3. The department shall submit a report regarding the study, 2 including findings and recommendations, to the governor and 3 general assembly not later than December 15, 2020. The report 4 may include proposed legislation determined by the department 5 to be necessary or desirable. 6 DIVISION IV 7 REPEAL AND TRANSITION 8 Sec. 26. NEW SECTION . 427B.23 Future repeal. 9 This subchapter is repealed July 1, 2021. All credits 10 existing upon repeal of this subchapter shall continue until 11 their expiration. 12 Sec. 27. NEW SECTION . 455G.22A Claims not eligible. 13 A claim for a release filed on or after January 1, 2021, 14 shall not be eligible for payment from the fund. 15 Sec. 28. NEW SECTION . 455G.22B Future repeal. 16 This subchapter is repealed July 1, 2021. 17 Sec. 29. TRANSITION PROVISIONS. 18 1. Upon repeal of chapter 455G, subchapter 1, and the 19 creation of the Iowa tanks fund pursuant to section 455B.472A, 20 as enacted in this Act, all moneys in all funds administered by 21 the Iowa comprehensive petroleum underground storage tank fund 22 board are transferred to the department of natural resources 23 for deposit in the Iowa tanks fund. Any moneys credited to 24 any fund administered by the Iowa comprehensive petroleum 25 underground storage tank fund board on and after July 1, 2021, 26 are transferred to the department for deposit in the Iowa tanks 27 fund. 28 2. Any rule, regulation, form, order, or directive 29 promulgated by the Iowa comprehensive petroleum underground 30 storage tank fund board as required to administer and enforce 31 the provisions relating to the Iowa comprehensive petroleum 32 underground storage tank fund shall continue in full force 33 and effect under the jurisdiction of the department of 34 natural resources until amended, repealed, or supplemented by 35 -14- LSB 5194SZ (2) 88 js/ns 14/ 17

S.F. 2401 affirmative action of the department. 1 3. The Iowa comprehensive petroleum underground storage 2 tank fund board shall administratively close or terminate 3 any remaining liabilities, contracts, outstanding claims, 4 payments, or other obligations for open comprehensive petroleum 5 underground storage tank fund claims existing on or before June 6 30, 2021. 7 4. The department of natural resources may begin 8 implementation of this Act prior to July 1, 2021, to the 9 extent necessary to transition to full implementation of the 10 provisions relating to the Iowa tanks fund and repeal of the 11 Iowa comprehensive petroleum underground storage tank fund. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 Currently, the Iowa comprehensive petroleum underground 16 storage tank fund exists under the control of the Iowa 17 comprehensive petroleum underground storage tank fund board. 18 The Iowa comprehensive petroleum underground storage tank fund 19 contains an account with moneys available to fund corrective 20 action for petroleum releases. The Iowa comprehensive 21 petroleum underground storage tank fund also contains a loan 22 guarantee account and a marketability fund. 23 This bill repeals the Iowa comprehensive petroleum 24 underground storage tank fund and eliminates the Iowa 25 comprehensive petroleum underground storage tank fund board 26 on July 1, 2021. The bill requires the department of natural 27 resources (department) to establish and administer the Iowa 28 tanks fund financing program to distribute financial assistance 29 for work conducted by eligible entities. The bill creates the 30 Iowa tanks fund within the state treasury under the control of 31 the department and requires the department to administer the 32 fund. The bill appropriates $250,000 per year from the fund to 33 the department of agriculture and land stewardship (DALS) for 34 the fiscal year beginning July 1, 2021, and each fiscal year 35 -15- LSB 5194SZ (2) 88 js/ns 15/ 17

S.F. 2401 thereafter through the fiscal year beginning July 1, 2026, to 1 inspect fuel quality at terminals and facilities. The program 2 allows a claimant who has previously received assistance 3 under the Iowa tanks fund or the Iowa comprehensive petroleum 4 underground storage tank fund to receive reimbursement from 5 the Iowa tanks fund for all or part of the costs of corrective 6 action for a petroleum release. The bill allows for cost 7 recovery efforts from potentially responsible parties when 8 moneys from the Iowa tanks fund are used during the cleanup 9 of contamination at a tank site. The bill directs the 10 environmental protection commission to adopt rules for program 11 eligibility, investigating and settling claims made against the 12 fund, appeal procedures, community remediation, prioritization 13 of fund moneys, funding for tank operator training, additional 14 assessment and corrective action arising out of a release at a 15 site for which a no further action certificate has been issued, 16 and reimbursement for the permanent closure of an underground 17 storage tank system. The bill provides that claims for 18 releases filed on or after January 1, 2021, are not eligible 19 for payment from the Iowa comprehensive petroleum underground 20 storage tank fund. 21 The bill requires DALS to conduct a study regarding the 22 long-term future fuel testing needs in Iowa and how to maximize 23 and leverage the Iowa central fuel testing laboratory located 24 at Iowa central community college. The bill requires DALS to 25 submit a report regarding the study to the governor and general 26 assembly not later than December 15, 2020. 27 The bill includes transition provisions retaining the 28 effectiveness of rules, regulations, forms, orders, or 29 directives promulgated by the Iowa comprehensive petroleum 30 underground storage tank fund board until amended, repealed, 31 or supplemented by affirmative action of the department. Any 32 moneys credited to the Iowa comprehensive petroleum underground 33 storage tank fund on and after July 1, 2021, are transferred to 34 the department for deposit in the Iowa tanks fund. 35 -16- LSB 5194SZ (2) 88 js/ns 16/ 17