Senate Study Bill 3042 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED UNDERGROUND STORAGE TANK FUND BOARD BILL) 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 5074DP (4) 89 js/ns

S.F. _____ H.F. _____ DIVISION I 1 IOWA TANKS FUND 2 Section 1. Section 455B.471, subsection 1, Code 2022, is 3 amended by striking the subsection. 4 Sec. 2. Section 455B.471, Code 2022, 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 2022. 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 5074DP (4) 89 js/ns 1/ 17

S.F. _____ H.F. _____ 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 2022, 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 2022, 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 2022, 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 5074DP (4) 89 js/ns 2/ 17

S.F. _____ H.F. _____ 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 2022. 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 any agreements and provide 12 any documents, instruments, certificates, data, or information 13 necessary in connection with the operation, administration, 14 and financing of the program consistent with this part 8 of 15 subchapter IV, the federal Resource Conservation and Recovery 16 Act, 42 U.S.C. §6901 et seq., the rules of the commission, and 17 other applicable federal 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 29 any public or private source. Notwithstanding section 8.33, 30 any moneys in the fund shall not revert to any other fund. 31 Notwithstanding section 12C.7, subsection 2, interest or 32 earnings on moneys in the fund shall be credited to the fund. 33 6. The department shall administer the fund to carry out 34 the purposes of the program and shall manage the revenue, 35 -3- LSB 5074DP (4) 89 js/ns 3/ 17

S.F. _____ H.F. _____ administration, restrictions, and disposition of the fund. 1 7. Moneys in the fund shall be used to reimburse tank owners 2 for all or part of the costs of a corrective action for a 3 petroleum release and for permanent closure of an underground 4 storage tank system under the program, for additional 5 assessment and corrective action arising out of releases at 6 sites for which a certificate of no further action has been 7 issued, for tank operator training, and for administrative 8 costs of the department associated with the program. 9 8. a. For the fiscal year beginning July 1, 2023, and for 10 each fiscal year thereafter, there is appropriated from the 11 general fund of the state to the department of agriculture 12 and land stewardship for the sole purpose of inspecting 13 fuel quality at pipeline terminals and renewable fuel 14 production facilities, including associated salaries, support, 15 maintenance, and miscellaneous purposes, two hundred fifty 16 thousand dollars. 17 b. Notwithstanding section 8.33, moneys appropriated in this 18 subsection that remain unencumbered or unobligated at the close 19 of a fiscal year shall not revert but shall remain available 20 for expenditure for the purposes designated until the close of 21 the succeeding fiscal year. 22 9. Moneys in the fund are not considered part of the general 23 fund of the state and are not subject to appropriation for any 24 other purpose by the general assembly. The fund is a separate 25 dedicated fund under the administration and control of the 26 department. 27 10. Payments for reimbursement or other costs relating to 28 any claim or cause of action in connection with a tank not 29 owned or operated by the state or an agency of the state shall 30 be made solely from the fund and no liability is otherwise 31 imposed upon the state. Moneys from the fund are limited 32 to the extent of coverage provided by the applicable account 33 within the fund under which a claim is submitted, subject 34 to the terms and conditions of that coverage. A court, an 35 -4- LSB 5074DP (4) 89 js/ns 4/ 17

S.F. _____ H.F. _____ administrative law judge, the department, or the commission 1 shall not order or approve a remedy that would require the 2 fund to exceed the fund’s then current funding limitations to 3 satisfy an award or that would restrict the availability of 4 moneys for higher priority sites. The state is not otherwise 5 liable for a claim related to the fund and moneys from the 6 general fund shall not be used to pay for reimbursement 7 or other costs relating to any claim or cause of action in 8 connection with a tank not owned or operated by the state or an 9 agency of the state. 10 Sec. 6. NEW SECTION . 455B.472B Cost recovery enforcement. 11 1. Full recovery sought by department. The department 12 may seek full recovery from an owner, operator, or other 13 potentially responsible party liable for a release that is the 14 subject of a corrective action for which moneys from the fund 15 are expended, or for which moneys from the Iowa comprehensive 16 petroleum underground storage tank fund created in section 17 455G.3, Code 2022, were expended, including for third-party 18 liability and for all other costs. If federal cleanup moneys 19 are recovered, the federal cleanup moneys shall be used solely 20 for the purpose of future cleanup activities. 21 2. Limitation of liability of owner or operator. Except 22 as provided in subsection 3, the department shall not seek 23 recovery for expenses in connection with corrective action for 24 a release from an owner or operator eligible for assistance 25 under the program, except for any unpaid portion of the 26 deductible or copayment. This subsection does not affect any 27 authorization of the department to impose or collect civil or 28 administrative fines, penalties, or fees. Moneys from the fund 29 shall not be used to pay for any third-party liability. 30 3. Owner or operator not in compliance. Notwithstanding 31 subsection 2, the liability of an owner or operator shall be 32 the full and total costs of corrective action and bodily injury 33 or property damage to third parties, as specified in subsection 34 1, if the owner or operator has not complied with the financial 35 -5- LSB 5074DP (4) 89 js/ns 5/ 17

S.F. _____ H.F. _____ responsibility or other underground storage tank rules of 1 the department or with this part 8 of subchapter IV or rules 2 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, 25 or other potentially responsible party. This subsection does 26 not bar any agreement to insure, hold harmless, or indemnify 27 a party to the agreement for any costs or expenditures under 28 this part 8 of subchapter IV, and does not modify rights 29 between the parties to an agreement, except to the extent the 30 agreement shifts liability to an owner or operator eligible 31 for assistance under the program for any damages or other 32 costs in connection with a corrective action for which another 33 potentially responsible party is or may be liable. Any such 34 provision is void and of no further force and effect. 35 -6- LSB 5074DP (4) 89 js/ns 6/ 17

S.F. _____ H.F. _____ 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 8 of subchapter 16 IV, the rights of the claimant to recover payment from any 17 potentially responsible party are assumed by the department to 18 the extent paid from the fund. A claimant shall not receive 19 double compensation for the same injury. 20 b. In an action brought pursuant to this part 8 of 21 subchapter IV seeking damages for corrective action or 22 third-party liability, the court shall allow evidence and 23 argument as to the replacement or indemnification of actual 24 economic losses incurred or to be incurred in the future by the 25 claimant by reason of insurance benefits, governmental benefits 26 or programs, or other sources. 27 c. A claimant may elect to authorize the department 28 to pursue the claimant’s cause of action for any injury 29 not compensated from the fund against any potentially 30 responsible party, provided the attorney general determines 31 such representation would not be a conflict of interest. If 32 a claimant so elects, the department’s litigation expenses 33 shall be shared on a pro rata basis with the claimant, but the 34 claimant’s share of litigation expenses is payable exclusively 35 -7- LSB 5074DP (4) 89 js/ns 7/ 17

S.F. _____ H.F. _____ from any share of the settlement or judgment payable to the 1 claimant. 2 9. Exclusion of punitive damages. Moneys from the fund 3 shall not be used to pay punitive damages. 4 Sec. 7. NEW SECTION . 455B.472C Discretionary rulemaking. 5 1. The commission may adopt rules pursuant to chapter 6 17A conditioning receipt of moneys from the fund to those 7 petroleum-contaminated properties that present a higher degree 8 of risk to the public health and safety or the environment and 9 providing for denial of moneys from the fund to a person who 10 did not make a good-faith attempt to comply with this part 8 11 of subchapter IV. This subsection does not confer a legal 12 right to an owner of a petroleum-contaminated property, or an 13 owner or operator of an underground storage tank located on the 14 property, for receipt of moneys under this part 8 of subchapter 15 IV. 16 2. The commission may adopt rules pursuant to chapter 17 17A providing for the transfer of all or a portion of the 18 liabilities relating to the fund. Notwithstanding any other 19 provision to the contrary, the department, upon such transfer, 20 shall not maintain any duty to reimburse claimants for those 21 liabilities transferred. 22 Sec. 8. Section 455B.474, subsection 1, paragraph a, 23 subparagraph (6), subparagraph divisions (g), (i), and (j), 24 Code 2022, are amended to read as follows: 25 (g) An owner or operator may elect to proceed with 26 additional corrective action on the site. However, any 27 action taken in addition to that required pursuant to this 28 subparagraph (6), shall be solely at the expense of the owner 29 or operator and shall not be considered corrective action 30 for purposes of section 455G.9 455B.472A , unless otherwise 31 previously agreed to by the board department and the owner or 32 operator pursuant to section 455G.9, subsection 7 455B.472A . 33 Corrective action taken by an owner or operator due to the 34 department’s failure to meet the time requirements provided in 35 -8- LSB 5074DP (4) 89 js/ns 8/ 17

S.F. _____ H.F. _____ subparagraph division (e) shall be considered corrective action 1 for purposes of section 455G.9 455B.472A . 2 (i) Replacement or upgrade of a tank on a site classified 3 as a high or low risk site shall be equipped with a secondary 4 containment system with monitoring of the space between the 5 primary and secondary containment structures or other board 6 approved tank system or methodology approved by the department . 7 (j) The commission and the board department shall cooperate 8 to ensure that remedial measures required by the corrective 9 action rules adopted pursuant to this subparagraph (6) are 10 reasonably cost-effective and shall, to the fullest extent 11 possible, avoid duplicating and conflicting requirements. 12 Sec. 9. Section 455B.474, subsection 2, unnumbered 13 paragraph 1, Code 2022, is amended to read as follows: 14 The maintenance of evidence of financial responsibility as 15 the director determines to be feasible and necessary for taking 16 corrective action and for compensating third parties for bodily 17 injury and property damage caused by release of a regulated 18 substance from an underground storage a tank. 19 Sec. 10. Section 455B.474, subsection 9, paragraph d, Code 20 2022, is amended to read as follows: 21 d. The certification of groundwater professionals shall not 22 impose liability on the board, the department , or the fund for 23 any claim or cause of action of any nature, based on the action 24 or inaction of a groundwater professional certified pursuant 25 to this subsection . 26 Sec. 11. Section 455B.474, Code 2022, is amended by adding 27 the following new subsection: 28 NEW SUBSECTION . 11. Department practices and procedures 29 for implementing and administering the Iowa tanks fund 30 financing program. The rules shall include but are not limited 31 to requirements for program eligibility, investigating and 32 settling claims made against the fund, appeal procedures, 33 community remediation, prioritization of fund moneys, 34 funding for tank operator training, additional assessment 35 -9- LSB 5074DP (4) 89 js/ns 9/ 17

S.F. _____ H.F. _____ and corrective action arising out of releases at sites for 1 which a certificate of no further action has been issued, and 2 reimbursement for the permanent closure of an underground 3 storage tank system. 4 Sec. 12. Section 455B.477, subsection 7, Code 2022, is 5 amended to read as follows: 6 7. The civil penalties or other damages or moneys recovered 7 by the state or the petroleum underground storage tank fund in 8 connection with a petroleum underground storage tank under this 9 part 8 of subchapter IV or chapter 455G shall be credited to 10 the fund created in section 455G.3 and allocated between fund 11 accounts according to the fund budget. Any federal moneys, 12 including but not limited to federal underground storage tank 13 trust fund moneys, received by the state or the department of 14 natural resources in connection with a release occurring on 15 or after May 5, 1989, or received generally for underground 16 storage tank programs on or after May 5, 1989, shall be 17 credited to the fund created in section 455G.3 and allocated 18 between fund accounts according to the fund budget, unless 19 such use would be contrary to federal law. The department 20 shall cooperate with the board of the Iowa comprehensive 21 petroleum underground storage tank fund to maximize the state’s 22 eligibility for and receipt of federal funds for underground 23 storage tank related purposes. 24 Sec. 13. EFFECTIVE DATE. This division of this Act takes 25 effect July 1, 2023. 26 DIVISION II 27 CONFORMING CHANGES 28 Sec. 14. Section 68B.35, subsection 2, paragraph e, Code 29 2022, is amended to read as follows: 30 e. Members of the state banking council, the Iowa ethics 31 and campaign disclosure board, the credit union review board, 32 the economic development authority, the employment appeal 33 board, the environmental protection commission, the health 34 facilities council, the Iowa finance authority, the Iowa public 35 -10- LSB 5074DP (4) 89 js/ns 10/ 17

S.F. _____ H.F. _____ employees’ retirement system investment board, the board of 1 the Iowa lottery authority, the natural resource commission, 2 the board of parole, the petroleum underground storage tank 3 fund board, the public employment relations board, the state 4 racing and gaming commission, the state board of regents, the 5 transportation commission, the office of consumer advocate, the 6 utilities board, the Iowa telecommunications and technology 7 commission, and any full-time members of other boards and 8 commissions as defined under section 7E.4 who receive an annual 9 salary for their service on the board or commission. The Iowa 10 ethics and campaign disclosure board shall conduct an annual 11 review to determine if members of any other board, commission, 12 or authority should file a statement and shall require the 13 filing of a statement pursuant to rules adopted pursuant to 14 chapter 17A . 15 Sec. 15. Section 159A.11, subsection 10, Code 2022, is 16 amended by striking the subsection. 17 Sec. 16. Section 159A.13, subsection 6, Code 2022, is 18 amended by striking the subsection. 19 Sec. 17. Section 159A.14, subsection 2, Code 2022, is 20 amended to read as follows: 21 2. A person may apply to the department to receive financial 22 incentives on a cost-share basis. The department shall forward 23 the applications to the underground storage tank fund board as 24 required by that board for evaluation and recommendation. The 25 underground storage tank fund board may rank the applications 26 with comments and shall forward them to the infrastructure 27 board for approval or disapproval. The department shall award 28 financial incentives on a cost-share basis to an eligible 29 person whose application was approved by the infrastructure 30 board. 31 Sec. 18. Section 159A.15, subsection 1, Code 2022, is 32 amended to read as follows: 33 1. A person may apply to the department to receive financial 34 incentives on a cost-share basis. The department shall forward 35 -11- LSB 5074DP (4) 89 js/ns 11/ 17

S.F. _____ H.F. _____ the applications to the underground storage tank fund board as 1 required by that board for evaluation and recommendation. The 2 underground storage tank fund board may rank the applications 3 with comments and shall forward them to the infrastructure 4 board for approval or disapproval. The department shall award 5 financial incentives on a cost-share basis to an eligible 6 person whose application was approved by the infrastructure 7 board. 8 Sec. 19. Section 323.1, subsection 16, Code 2022, is amended 9 to read as follows: 10 16. “Storage tank” means a motor fuel storage tank as 11 defined in section 214.1 , including an underground storage tank 12 subject to regulation under chapter 455G 455B, subchapter IV, 13 part 8, or section 455G.31 . 14 Sec. 20. Section 422.7, subsection 2, paragraph u, Code 15 2022, is amended by striking the paragraph. 16 Sec. 21. Section 455B.174, subsection 4, paragraph d, Code 17 2022, is amended to read as follows: 18 d. If a public water supply has a groundwater source 19 that contains petroleum, a fraction of crude oil, or their 20 degradation products, or is located in an area deemed by the 21 department as likely to be contaminated by such materials, and 22 after consultation with the public water supply system and 23 consideration of all applicable rules relating to remediation, 24 the department may require the public water supply system to 25 replace that groundwater source in order to receive a permit 26 to operate. The requirement to replace the source shall only 27 be made by the department if the public water supply system 28 is fully compensated for any additional design, construction, 29 operation, and monitoring costs from the Iowa comprehensive 30 petroleum underground storage tank fund created by chapter 31 455G or from any other funds that do not impose a financial 32 obligation on the part of the public water supply system. 33 Funds available to or provided by the public water supply 34 system may be used for system improvements made in conjunction 35 -12- LSB 5074DP (4) 89 js/ns 12/ 17

S.F. _____ H.F. _____ with replacement of the source. The department cannot require 1 a public water supply system to replace its water source with a 2 less reliable water source or with a source that does not meet 3 federal primary, secondary, or other health-based standards 4 unless treatment is provided to ensure that the drinking water 5 meets these standards. Nothing in this paragraph shall affect 6 the public water supply system’s right to pursue recovery from 7 a responsible party. 8 Sec. 22. Section 455E.11, subsection 2, paragraph d, 9 subparagraph (3), Code 2022, is amended by striking the 10 subparagraph. 11 Sec. 23. Section 455I.2, subsection 5, paragraph a, Code 12 2022, is amended to read as follows: 13 a. A federal or state program that is subject to the 14 jurisdiction of an agency, including but not limited to 15 programs established by chapters chapter 455B and 455G , 16 corrective or response actions pursuant to 42 U.S.C. §6901 et 17 seq., and remedial actions under 42 U.S.C. §9601 et seq. 18 Sec. 24. EFFECTIVE DATE. This division of this Act takes 19 effect July 1, 2023. 20 DIVISION III 21 FUEL TESTING STUDY 22 Sec. 25. FUEL TESTING AND LABORATORY NEEDS STUDY. 23 1. The department of agriculture and land stewardship 24 shall conduct a study regarding the long-term future fuel 25 testing needs in Iowa and how to maximize and leverage the 26 Iowa central fuel testing laboratory located at Iowa central 27 community college. The department may consider any matter 28 that it determines to be relevant, including but not limited 29 to the weights and measures bureau’s testing needs for fuel 30 inspection, cost analysis for future growth and laboratory 31 equipment, and related support services for both the petroleum 32 and renewable fuel industry in Iowa, which may be administered 33 through a grant program. 34 2. The department may consult with Iowa central community 35 -13- LSB 5074DP (4) 89 js/ns 13/ 17

S.F. _____ H.F. _____ college and shall seek comments from persons and fuel industry 1 leaders in Iowa who have an interest in the Iowa central fuel 2 testing laboratory. 3 3. The department shall submit a report regarding the study, 4 including findings and recommendations, to the governor and 5 general assembly not later than December 15, 2022. The report 6 may include proposed legislation determined by the department 7 to be necessary or desirable. 8 DIVISION IV 9 REPEAL AND TRANSITION 10 Sec. 26. NEW SECTION . 427B.23 Future repeal. 11 This subchapter is repealed July 1, 2023. All credits 12 existing upon repeal of this subchapter shall continue until 13 their expiration. 14 Sec. 27. NEW SECTION . 455G.21A Claims not eligible. 15 A claim for a release filed on or after January 1, 2023, 16 shall not be eligible for payment from the fund. 17 Sec. 28. NEW SECTION . 455G.21B Future repeal. 18 This subchapter is repealed July 1, 2023. 19 Sec. 29. TRANSITION PROVISIONS. 20 1. Upon repeal of chapter 455G, subchapter 1, and the 21 creation of the Iowa tanks fund pursuant to section 455B.472A, 22 as enacted in this Act, all moneys in all funds administered by 23 the Iowa comprehensive petroleum underground storage tank fund 24 board are transferred to the department of natural resources 25 for deposit in the Iowa tanks fund. Any moneys credited to 26 any fund administered by the Iowa comprehensive petroleum 27 underground storage tank fund board on and after July 1, 2023, 28 are transferred to the department for deposit in the Iowa tanks 29 fund. 30 2. Any rule, regulation, form, order, or directive 31 promulgated by the Iowa comprehensive petroleum underground 32 storage tank fund board as required to administer and enforce 33 the provisions relating to the Iowa comprehensive petroleum 34 underground storage tank fund shall continue in full force 35 -14- LSB 5074DP (4) 89 js/ns 14/ 17

S.F. _____ H.F. _____ and effect under the jurisdiction of the department of 1 natural resources until amended, repealed, or supplemented by 2 affirmative action of the department. 3 3. The Iowa comprehensive petroleum underground storage 4 tank fund board shall administratively close or terminate 5 any remaining liabilities, contracts, outstanding claims, 6 payments, or other obligations for open comprehensive petroleum 7 underground storage tank fund claims existing on or before June 8 30, 2023. 9 4. The department of natural resources may begin 10 implementation of this Act prior to July 1, 2023, to the 11 extent necessary to transition to full implementation of the 12 provisions relating to the Iowa tanks fund and repeal of the 13 Iowa comprehensive petroleum underground storage tank fund. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 Currently, the Iowa comprehensive petroleum underground 18 storage tank fund exists under the control of the Iowa 19 comprehensive petroleum underground storage tank fund board. 20 The Iowa comprehensive petroleum underground storage tank fund 21 contains an account with moneys available to fund corrective 22 action for petroleum releases. The Iowa comprehensive 23 petroleum underground storage tank fund also contains a loan 24 guarantee account and a marketability fund. 25 This bill repeals the Iowa comprehensive petroleum 26 underground storage tank fund and eliminates the Iowa 27 comprehensive petroleum underground storage tank fund board 28 on July 1, 2023. The bill requires the department of natural 29 resources (DNR) to establish and administer the Iowa tanks 30 fund financing program to distribute financial assistance for 31 work conducted by eligible entities. The bill creates the 32 Iowa tanks fund within the state treasury under the control 33 of DNR and requires DNR to administer the fund. The bill 34 appropriates $250,000 per year from the general fund to the 35 -15- LSB 5074DP (4) 89 js/ns 15/ 17

S.F. _____ H.F. _____ department of agriculture and land stewardship (DALS) beginning 1 July 1, 2023, to inspect fuel quality at terminals and 2 facilities. The program allows a claimant who has previously 3 received assistance under the Iowa tanks fund or the Iowa 4 comprehensive petroleum underground storage tank fund to 5 receive reimbursement from the Iowa tanks fund for all or part 6 of the costs of corrective action for a petroleum release. 7 The bill allows for cost recovery efforts from potentially 8 responsible parties when moneys from the Iowa tanks fund are 9 used during the cleanup of contamination at a tank site. The 10 bill directs the environmental protection commission to adopt 11 rules for program eligibility, investigating and settling 12 claims made against the fund, appeal procedures, community 13 remediation, prioritization of fund moneys, funding for tank 14 operator training, additional assessment and corrective action 15 arising out of a release at a site for which a no further 16 action certificate has been issued, and reimbursement for 17 the permanent closure of an underground storage tank system. 18 The bill provides that claims for releases filed on or after 19 January 1, 2023, are not eligible for payment from the Iowa 20 comprehensive petroleum underground 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, 2022. 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, or 31 supplemented by affirmative action of DNR. Any moneys credited 32 to the Iowa comprehensive petroleum underground storage tank 33 fund on and after July 1, 2023, are transferred to DNR for 34 deposit in the Iowa tanks fund. 35 -16- LSB 5074DP (4) 89 js/ns 16/ 17