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House Study Bill 135 - IntroducedA Bill ForAn Act 1relating to underground storage tanks, including by
2creating the Iowa tanks fund and Iowa tanks fund financing
3program, repealing the Iowa comprehensive petroleum
4underground storage tank fund, and eliminating the Iowa
5comprehensive petroleum underground storage tank fund
6board, requiring a study, and including effective date and
7transition provisions.
8BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2IOWA TANKS FUND
3 Section 1. Section 455B.471, subsection 1, Code 2021, is
4amended by striking the subsection.
5 Sec. 2. Section 455B.471, Code 2021, is amended by adding
6the following new subsections:
7 NEW SUBSECTION. 1A. “Claimant” means an owner or operator
8who has received assistance under the Iowa tanks fund or its
9predecessor, the Iowa comprehensive petroleum underground
10storage tank fund created in section 455G.3, Code 2020.
11 NEW SUBSECTION. 1B. “Community remediation” means a
12curriculum of coordinated testing, planning, or remediation
13involving two or more tank sites potentially connected with a
14continuous contaminated area, pursuant to rules adopted by the
15commission under section 455B.474. A community remediation
16does not expand the scope of coverage otherwise available or
17relieve liability otherwise imposed under state or federal law.
18 NEW SUBSECTION. 2A. “Costs” means all costs, charges,
19expenses, or other indebtedness incurred by a claimant that
20are determined by the department to be reasonable for carrying
21out all works and undertakings necessary or incidental to the
22accomplishment of any project. “Costs” includes reasonable
23attorney fees and costs of litigation for which moneys are
24expended from the fund in connection with a release.
25 NEW SUBSECTION. 3A. “Insurance” means any form of financial
26assistance or showing of financial responsibility sufficient
27to comply with the federal Resource Conservation and Recovery
28Act, 42 U.S.C. §6901 et seq., or the department’s underground
29storage tank financial responsibility rules.
30 NEW SUBSECTION. 7A. “Potentially responsible party” means
31a person who may be responsible or liable for a release for
32which payments from the fund were made for corrective action or
33third-party liability.
34 NEW SUBSECTION. 7B. “Program” means the Iowa tanks fund
35financing program created pursuant to section 455B.472A.
-1-1 NEW SUBSECTION. 10A. “Third-party liability” means any of
2the following:
3a. Property damage including physical injury to tangible
4property, but not including loss of use. Property damage does
5not include costs to remediate.
6b. Bodily injury including sickness, physical injury, or
7death.
8 Sec. 3. Section 455B.471, subsection 3, Code 2021, is
9amended to read as follows:
103. “Fund” means the Iowa comprehensive petroleum underground
11storage tank tanks fund created in section 455B.472A.
12 Sec. 4. Section 455B.472, Code 2021, is amended to read as
13follows:
14455B.472 Declaration of policy.
15The general assembly finds that the release of regulated
16substances from underground storage tanks constitutes a
17threat to the public health and safety and to the natural
18resources of the state, and that existing regulatory programs
19of the department and other agencies do not adequately or
20appropriately address this substantial public concern.
21Additionally, the general assembly recognizes that because the
22appropriation of moneys to the Iowa comprehensive petroleum
23underground storage tank fund created in section 455G.3, Code
242020, ended on December 31, 2016, it is in the public interest
25to expeditiously use any remaining moneys from the Iowa
26comprehensive petroleum underground storage tank fund to assist
27as many owners as possible with financing all or part of the
28costs of corrective action for petroleum releases from leaking
29underground storage tanks through the establishment of the Iowa
30tanks fund financing program. The financing program shall last
31as long as moneys remain available, and the general assembly
32recognizes that moneys available for the financing program will
33eventually be depleted.
34 Sec. 5. NEW SECTION. 455B.472A Iowa tanks fund financing
35program — fund created.
-2- 11. The department shall establish and administer an Iowa
2tanks fund financing program for the purpose of reimbursing
3eligible claimants for all or part of the costs of corrective
4action for petroleum releases previously eligible for payment
5from the Iowa comprehensive petroleum underground storage tank
6fund pursuant to chapter 455G, Code 2020.
72. The department shall distribute financial assistance, up
8to one million dollars total, for work conducted by eligible
9entities that comply with the requirements of the program. The
10department shall determine if work completed is eligible for
11reimbursement under the program.
123. The department may enter into and provide any agreements,
13documents, instruments, certificates, data, or information
14necessary in connection with the operation, administration, and
15financing of the program consistent with this part, the federal
16Resource Conservation and Recovery Act, 42 U.S.C. §6901 et
17seq., the rules of the commission, and other applicable federal
18and state law.
194. The department may act to conform the program to the
20applicable guidance and regulations adopted by the United
21States environmental protection agency.
225. The Iowa tanks fund is created in the state treasury
23under the control of the department. The fund shall consist
24of moneys appropriated or transferred to the fund, interest
25attributable to moneys in the fund, moneys in the form of
26a devise, gift, bequest, donation, federal or other grant,
27reimbursement, repayment, judgment, or payment from any source
28intended to be used for the purposes of the fund, all receipts
29by the fund, and any other moneys credited to the fund from
30any public or private source. Notwithstanding section 8.33,
31any moneys in the fund shall not revert to any other fund.
32Notwithstanding section 12C.7, subsection 2, interest or
33earnings on moneys in the fund shall be credited to the fund.
346. The department shall administer the fund to carry out
35the purposes of the program and shall manage the revenue,
-3-1administration, restrictions, and disposition of the fund.
27. Moneys in the fund shall be used to reimburse tank owners
3for all or part of the costs of a corrective action for a
4petroleum release and for permanent closure of an underground
5storage tank system under the program, for additional
6assessment and corrective action arising out of releases at
7sites for which a certificate of no further action has been
8issued, for tank operator training, and for administrative
9costs of the department associated with the program.
108. a. For the fiscal year beginning July 1, 2022, and for
11each fiscal year thereafter through the fiscal year beginning
12July 1, 2026, two hundred fifty thousand dollars per year of
13the moneys in the fund are appropriated to the department of
14agriculture and land stewardship for the sole and exclusive
15purpose of inspecting fuel quality at pipeline terminals and
16renewable fuel production facilities, including associated
17salaries, support, maintenance, and miscellaneous purposes.
18b. Notwithstanding section 8.33, moneys appropriated in this
19subsection that remain unencumbered or unobligated at the close
20of a fiscal year shall not revert but shall remain available
21for expenditure for the purposes designated until the close of
22the succeeding fiscal year.
239. Moneys in the fund are not considered part of the general
24fund of the state and are not subject to appropriation for any
25other purpose by the general assembly. The fund is a separate
26dedicated fund under the administration and control of the
27department.
2810. Payments for reimbursement or other costs relating to
29any claim or cause of action in connection with a tank not
30owned or operated by the state or an agency of the state shall
31be made solely from the fund and no liability is otherwise
32imposed upon the state. Moneys from the fund are limited
33to the extent of coverage provided by the applicable account
34within the fund under which a claim is submitted, subject
35to the terms and conditions of that coverage. A court, an
-4-1administrative law judge, the department, or the commission
2shall not order or approve a remedy that would require the
3fund to exceed the fund’s then current funding limitations to
4satisfy an award or that would restrict the availability of
5moneys for higher priority sites. The state is not otherwise
6liable for a claim related to the fund and moneys from the
7general fund shall not be used to pay for reimbursement
8or other costs relating to any claim or cause of action in
9connection with a tank not owned or operated by the state or an
10agency of the state.
11 Sec. 6. NEW SECTION. 455B.472B Cost recovery enforcement.
121. Full recovery sought by department. The department
13may seek full recovery from an owner, operator, or other
14potentially responsible party liable for a release that is the
15subject of a corrective action for which moneys from the fund
16are expended, or for which moneys from the Iowa comprehensive
17petroleum underground storage tank fund created in section
18455G.3, Code 2020, were expended, including for third-party
19liability and for all other costs. If federal cleanup moneys
20are recovered, the federal cleanup moneys shall be used solely
21for the purpose of future cleanup activities.
222. Limitation of liability of owner or operator. Except
23as provided in subsection 3, the department shall not seek
24recovery for expenses in connection with corrective action for
25a release from an owner or operator eligible for assistance
26under the program, except for any unpaid portion of the
27deductible or copayment. This section does not affect any
28authorization of the department to impose or collect civil or
29administrative fines, penalties, or fees. Moneys from the fund
30shall not be used to pay for any third-party liability.
313. Owner or operator not in compliance. Notwithstanding
32subsection 2, the liability of an owner or operator shall be
33the full and total costs of corrective action and bodily injury
34or property damage to third parties, as specified in subsection
351, if the owner or operator has not complied with the financial
-5-1responsibility or other underground storage tank rules of the
2department or with this part or rules adopted under this part.
34. Lien on tank site. Any amount for which an owner or
4operator is required to pay to the fund by statute, rule,
5contract, or determination of liability by the department after
6hearing, if not paid when due, shall constitute a lien upon the
7real property where the tank that was the subject of corrective
8action is located, and the payment shall be collected in the
9same manner as the environmental protection charge pursuant to
10section 424.11, Code 2016.
115. Joinder of parties. The department has standing in
12any case or contested action related to the fund or a tank
13to assert any claim that the department may have regarding
14the tank at issue in the case or contested action. Upon
15motion and sufficient showing by a party to a cost recovery or
16subrogation action provided for under this section, the court
17or the administrative law judge shall join to the action any
18potentially responsible party who may be liable for costs and
19expenditures of the type recoverable pursuant to this section.
206. Third-party contracts. An insurance, indemnification,
21hold-harmless, conveyance, or similar risk-sharing or
22risk-shifting agreement shall not be effective to transfer
23any liability for costs recoverable under this section. The
24department may proceed directly against the owner, operator, or
25other potentially responsible party. This section does not bar
26any agreement to insure, hold harmless, or indemnify a party to
27the agreement for any costs or expenditures under this part,
28and does not modify rights between the parties to an agreement,
29except to the extent the agreement shifts liability to an owner
30or operator eligible for assistance under the program for any
31damages or other costs in connection with a corrective action
32for which another potentially responsible party is or may be
33liable. Any such provision is void and of no further force and
34effect.
357. Later proceedings permitted against other parties. The
-6-1entry of judgment against a party to the action does not
2bar a future action by the department against another person
3who is later alleged to be or discovered to be liable for
4costs and expenditures paid from the fund. Notwithstanding
5section 668.5, a potentially responsible party shall not seek
6contribution or any other recovery from an owner or operator
7eligible for assistance under the program for damages or other
8costs in connection with corrective action for a release for
9which the potentially responsible party is or may be liable.
10Subsequent successful proceedings against another party shall
11not modify or reduce the liability of a party against whom
12judgment has been previously entered.
138. Claims against potentially responsible parties.
14a. Upon payment from the fund for corrective action or
15third-party liability pursuant to this part, the rights of the
16claimant to recover payment from any potentially responsible
17party are assumed by the department to the extent paid from the
18fund. A claimant shall not receive double compensation for the
19same injury.
20b. In an action brought pursuant to this part seeking
21damages for corrective action or third-party liability, the
22court shall allow evidence and argument as to the replacement
23or indemnification of actual economic losses incurred or to be
24incurred in the future by the claimant by reason of insurance
25benefits, governmental benefits or programs, or other sources.
26c. A claimant may elect to authorize the department
27to pursue the claimant’s cause of action for any injury
28not compensated from the fund against any potentially
29responsible party, provided the attorney general determines
30such representation would not be a conflict of interest. If
31a claimant so elects, the department’s litigation expenses
32shall be shared on a pro rata basis with the claimant, but the
33claimant’s share of litigation expenses is payable exclusively
34from any share of the settlement or judgment payable to the
35claimant.
-7- 19. Exclusion of punitive damages. Moneys from the fund
2shall not be used to pay punitive damages.
3 Sec. 7. NEW SECTION. 455B.472C Discretionary rulemaking.
41. The commission may adopt rules pursuant to chapter
517A conditioning receipt of moneys from the fund to those
6petroleum-contaminated properties that present a higher degree
7of risk to the public health and safety or the environment and
8providing for denial of moneys from the fund to a person who
9did not make a good-faith attempt to comply with this part.
10This subsection does not confer a legal right to an owner of a
11petroleum-contaminated property, or an owner or operator of an
12underground storage tank located on the property, for receipt
13of moneys under this part.
142. The commission may adopt rules pursuant to chapter
1517A providing for the transfer of all or a portion of the
16liabilities relating to the fund. Notwithstanding any other
17provision to the contrary, the department, upon such transfer,
18shall not maintain any duty to reimburse claimants for those
19liabilities transferred.
20 Sec. 8. Section 455B.474, subsection 1, paragraph a,
21subparagraph (6), subparagraph divisions (g), (i), and (j),
22Code 2021, are amended to read as follows:
23(g) An owner or operator may elect to proceed with
24additional corrective action on the site. However, any
25action taken in addition to that required pursuant to this
26subparagraph (6), shall be solely at the expense of the owner
27or operator and shall not be considered corrective action
28for purposes of section 455G.9 455B.472A, unless otherwise
29previously agreed to by the board department and the owner or
30operator pursuant to section 455G.9, subsection 7 455B.472A.
31Corrective action taken by an owner or operator due to the
32department’s failure to meet the time requirements provided in
33subparagraph division (e) shall be considered corrective action
34for purposes of section 455G.9 455B.472A.
35(i) Replacement or upgrade of a tank on a site classified
-8-1as a high or low risk site shall be equipped with a secondary
2containment system with monitoring of the space between the
3primary and secondary containment structures or other board
4approved tank system or methodology approved by the department.
5(j) The commission and the board department shall cooperate
6to ensure that remedial measures required by the corrective
7action rules adopted pursuant to this subparagraph (6) are
8reasonably cost-effective and shall, to the fullest extent
9possible, avoid duplicating and conflicting requirements.
10 Sec. 9. Section 455B.474, subsection 2, unnumbered
11paragraph 1, Code 2021, is amended to read as follows:
12The maintenance of evidence of financial responsibility as
13the director determines to be feasible and necessary for taking
14corrective action and for compensating third parties for bodily
15injury and property damage caused by release of a regulated
16substance from an underground storage a tank.
17 Sec. 10. Section 455B.474, subsection 9, paragraph d, Code
182021, is amended to read as follows:
19d. The certification of groundwater professionals shall not
20impose liability on the board, the department, or the fund for
21any claim or cause of action of any nature, based on the action
22or inaction of a groundwater professional certified pursuant
23to this subsection.
24 Sec. 11. Section 455B.474, Code 2021, is amended by adding
25the following new subsection:
26 NEW SUBSECTION. 11. Department practices and procedures
27for implementing and administering the Iowa tanks fund
28financing program. The rules shall include but are not limited
29to requirements for program eligibility, investigating and
30settling claims made against the fund, appeal procedures,
31community remediation, prioritization of fund moneys,
32funding for tank operator training, additional assessment
33and corrective action arising out of releases at sites for
34which a certificate of no further action has been issued, and
35reimbursement for the permanent closure of an underground
-9-1storage tank system.
2 Sec. 12. Section 455B.477, subsection 7, Code 2021, is
3amended to read as follows:
47. The civil penalties or other damages or moneys recovered
5by the state or the petroleum underground storage tank fund
6in connection with a petroleum underground storage tank under
7this part of this division or chapter 455G shall be credited
8to the fund created in section 455G.3 and allocated between
9fund accounts according to the fund budget. Any federal
10moneys, including but not limited to federal underground
11storage tank trust fund moneys, received by the state or the
12department of natural resources in connection with a release
13occurring on or after May 5, 1989, or received generally for
14underground storage tank programs on or after May 5, 1989,
15shall be credited to the fund created in section 455G.3 and
16allocated between fund accounts according to the fund budget
17 455B.472A, unless such use would be contrary to federal law.
18The department shall cooperate with the board of the Iowa
19comprehensive petroleum underground storage tank fund to
20 maximize the state’s eligibility for and receipt of federal
21funds for underground storage tank related purposes.
22 Sec. 13. EFFECTIVE DATE. This division of this Act takes
23effect July 1, 2022.
24DIVISION II
25CONFORMING CHANGES
26 Sec. 14. Section 68B.35, subsection 2, paragraph e, Code
272021, is amended to read as follows:
28e. Members of the state banking council, the Iowa ethics
29and campaign disclosure board, the credit union review board,
30the economic development authority, the employment appeal
31board, the environmental protection commission, the health
32facilities council, the Iowa finance authority, the Iowa public
33employees’ retirement system investment board, the board of
34the Iowa lottery authority, the natural resource commission,
35the board of parole, the petroleum underground storage tank
-10-1fund board, the public employment relations board, the state
2racing and gaming commission, the state board of regents, the
3transportation commission, the office of consumer advocate, the
4utilities board, the Iowa telecommunications and technology
5commission, and any full-time members of other boards and
6commissions as defined under section 7E.4 who receive an annual
7salary for their service on the board or commission. The Iowa
8ethics and campaign disclosure board shall conduct an annual
9review to determine if members of any other board, commission,
10or authority should file a statement and shall require the
11filing of a statement pursuant to rules adopted pursuant to
12chapter 17A.
13 Sec. 15. Section 159A.11, subsection 10, Code 2021, is
14amended by striking the subsection.
15 Sec. 16. Section 159A.13, subsection 6, Code 2021, is
16amended by striking the subsection.
17 Sec. 17. Section 159A.14, subsection 2, Code 2021, is
18amended to read as follows:
192. A person may apply to the department to receive financial
20incentives on a cost-share basis. The department shall forward
21the applications to the underground storage tank fund board as
22required by that board for evaluation and recommendation. The
23underground storage tank fund board may rank the applications
24with comments and shall forward them to the infrastructure
25board for approval or disapproval. The department shall award
26financial incentives on a cost-share basis to an eligible
27person whose application was approved by the infrastructure
28board.
29 Sec. 18. Section 159A.15, subsection 1, Code 2021, is
30amended to read as follows:
311. A person may apply to the department to receive financial
32incentives on a cost-share basis. The department shall forward
33the applications to the underground storage tank fund board as
34required by that board for evaluation and recommendation. The
35underground storage tank fund board may rank the applications
-11-1with comments and shall forward them to the infrastructure
2board for approval or disapproval. The department shall award
3financial incentives on a cost-share basis to an eligible
4person whose application was approved by the infrastructure
5board.
6 Sec. 19. Section 323.1, subsection 16, Code 2021, is amended
7to read as follows:
816. “Storage tank” means a motor fuel storage tank as
9defined in section 214.1, including an underground storage tank
10subject to regulation under chapter 455G 455B, division IV,
11part 8, or section 455G.31.
12 Sec. 20. Section 422.7, subsection 2, paragraph u, Code
132021, is amended by striking the paragraph.
14 Sec. 21. Section 455B.174, subsection 4, paragraph d, Code
152021, is amended to read as follows:
16d. If a public water supply has a groundwater source
17that contains petroleum, a fraction of crude oil, or their
18degradation products, or is located in an area deemed by the
19department as likely to be contaminated by such materials, and
20after consultation with the public water supply system and
21consideration of all applicable rules relating to remediation,
22the department may require the public water supply system to
23replace that groundwater source in order to receive a permit
24to operate. The requirement to replace the source shall only
25be made by the department if the public water supply system
26is fully compensated for any additional design, construction,
27operation, and monitoring costs from the Iowa comprehensive
28petroleum underground storage tank fund created by chapter
29455G or from any other funds that do not impose a financial
30obligation on the part of the public water supply system.
31Funds available to or provided by the public water supply
32system may be used for system improvements made in conjunction
33with replacement of the source. The department cannot require
34a public water supply system to replace its water source with a
35less reliable water source or with a source that does not meet
-12-1federal primary, secondary, or other health-based standards
2unless treatment is provided to ensure that the drinking water
3meets these standards. Nothing in this paragraph shall affect
4the public water supply system’s right to pursue recovery from
5a responsible party.
6 Sec. 22. Section 455E.11, subsection 2, paragraph d,
7subparagraph (3), Code 2021, is amended by striking the
8subparagraph.
9 Sec. 23. Section 455I.2, subsection 5, paragraph a, Code
102021, is amended to read as follows:
11a. A federal or state program that is subject to the
12jurisdiction of an agency, including but not limited to
13programs established by chapters chapter 455B and 455G,
14corrective or response actions pursuant to 42 U.S.C. §6901 et
15seq., and remedial actions under 42 U.S.C. §9601 et seq.
16 Sec. 24. EFFECTIVE DATE. This division of this Act takes
17effect July 1, 2022.
18DIVISION III
19FUEL TESTING STUDY
20 Sec. 25. FUEL TESTING AND LABORATORY NEEDS STUDY.
211. The department of agriculture and land stewardship
22shall conduct a study regarding the long-term future fuel
23testing needs in Iowa and how to maximize and leverage the
24Iowa central fuel testing laboratory located at Iowa central
25community college. The department may consider any matter
26that it determines to be relevant, including but not limited
27to the weights and measures bureau’s testing needs for fuel
28inspection, cost analysis for future growth and laboratory
29equipment, and related support services for both the petroleum
30and renewable fuel industry in Iowa, which may be administered
31through a grant program.
322. The department may consult with Iowa central community
33college and shall seek comments from persons and fuel industry
34leaders in Iowa who have an interest in the Iowa central fuel
35testing laboratory.
-13- 13. The department shall submit a report regarding the study,
2including findings and recommendations, to the governor and
3general assembly not later than December 15, 2021. The report
4may include proposed legislation determined by the department
5to be necessary or desirable.
6DIVISION IV
7REPEAL AND TRANSITION
8 Sec. 26. NEW SECTION. 427B.23 Future repeal.
9This subchapter is repealed July 1, 2022. All credits
10existing upon repeal of this subchapter shall continue until
11their expiration.
12 Sec. 27. NEW SECTION. 455G.21A Claims not eligible.
13A claim for a release filed on or after January 1, 2022,
14shall not be eligible for payment from the fund.
15 Sec. 28. NEW SECTION. 455G.21B Future repeal.
16This subchapter is repealed July 1, 2022.
17 Sec. 29. TRANSITION PROVISIONS.
181. Upon repeal of chapter 455G, subchapter 1, and the
19creation of the Iowa tanks fund pursuant to section 455B.472A,
20as enacted in this Act, all moneys in all funds administered by
21the Iowa comprehensive petroleum underground storage tank fund
22board are transferred to the department of natural resources
23for deposit in the Iowa tanks fund. Any moneys credited to
24any fund administered by the Iowa comprehensive petroleum
25underground storage tank fund board on and after July 1, 2022,
26are transferred to the department for deposit in the Iowa tanks
27fund.
282. Any rule, regulation, form, order, or directive
29promulgated by the Iowa comprehensive petroleum underground
30storage tank fund board as required to administer and enforce
31the provisions relating to the Iowa comprehensive petroleum
32underground storage tank fund shall continue in full force
33and effect under the jurisdiction of the department of
34natural resources until amended, repealed, or supplemented by
35affirmative action of the department.
-14- 13. The Iowa comprehensive petroleum underground storage
2tank fund board shall administratively close or terminate
3any remaining liabilities, contracts, outstanding claims,
4payments, or other obligations for open comprehensive petroleum
5underground storage tank fund claims existing on or before June
630, 2022.
74. The department of natural resources may begin
8implementation of this Act prior to July 1, 2022, to the
9extent necessary to transition to full implementation of the
10provisions relating to the Iowa tanks fund and repeal of the
11Iowa comprehensive petroleum underground storage tank fund.
12EXPLANATION
13The inclusion of this explanation does not constitute agreement with
14the explanation’s substance by the members of the general assembly.
15Currently, the Iowa comprehensive petroleum underground
16storage tank fund exists under the control of the Iowa
17comprehensive petroleum underground storage tank fund board.
18The Iowa comprehensive petroleum underground storage tank fund
19contains an account with moneys available to fund corrective
20action for petroleum releases. The Iowa comprehensive
21petroleum underground storage tank fund also contains a loan
22guarantee account and a marketability fund.
23This bill repeals the Iowa comprehensive petroleum
24underground storage tank fund and eliminates the Iowa
25comprehensive petroleum underground storage tank fund board
26on July 1, 2022. The bill requires the department of natural
27resources (department) to establish and administer the Iowa
28tanks fund financing program to distribute financial assistance
29for work conducted by eligible entities. The bill creates the
30Iowa tanks fund within the state treasury under the control of
31the department and requires the department to administer the
32fund. The bill appropriates $250,000 per year from the fund to
33the department of agriculture and land stewardship (DALS) for
34the fiscal year beginning July 1, 2022, and each fiscal year
35thereafter through the fiscal year beginning July 1, 2026, to
-15-1inspect fuel quality at terminals and facilities. The program
2allows a claimant who has previously received assistance
3under the Iowa tanks fund or the Iowa comprehensive petroleum
4underground storage tank fund to receive reimbursement from
5the Iowa tanks fund for all or part of the costs of corrective
6action for a petroleum release. The bill allows for cost
7recovery efforts from potentially responsible parties when
8moneys from the Iowa tanks fund are used during the cleanup
9of contamination at a tank site. The bill directs the
10environmental protection commission to adopt rules for program
11eligibility, investigating and settling claims made against the
12fund, appeal procedures, community remediation, prioritization
13of fund moneys, funding for tank operator training, additional
14assessment and corrective action arising out of a release at a
15site for which a no further action certificate has been issued,
16and reimbursement for the permanent closure of an underground
17storage tank system. The bill provides that claims for
18releases filed on or after January 1, 2022, are not eligible
19for payment from the Iowa comprehensive petroleum underground
20storage tank fund.
21The bill requires DALS to conduct a study regarding the
22long-term future fuel testing needs in Iowa and how to maximize
23and leverage the Iowa central fuel testing laboratory located
24at Iowa central community college. The bill requires DALS to
25submit a report regarding the study to the governor and general
26assembly not later than December 15, 2021.
27The bill includes transition provisions retaining the
28effectiveness of rules, regulations, forms, orders, or
29directives promulgated by the Iowa comprehensive petroleum
30underground storage tank fund board until amended, repealed,
31or supplemented by affirmative action of the department. Any
32moneys credited to the Iowa comprehensive petroleum underground
33storage tank fund on and after July 1, 2022, are transferred to
34the department for deposit in the Iowa tanks fund.
35The divisions of the bill establishing the Iowa tanks fund
-16-1and making conforming Code changes take effect July 1, 2022.
-17-js/ns
2creating the Iowa tanks fund and Iowa tanks fund financing
3program, repealing the Iowa comprehensive petroleum
4underground storage tank fund, and eliminating the Iowa
5comprehensive petroleum underground storage tank fund
6board, requiring a study, and including effective date and
7transition provisions.
8BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2IOWA TANKS FUND
3 Section 1. Section 455B.471, subsection 1, Code 2021, is
4amended by striking the subsection.
5 Sec. 2. Section 455B.471, Code 2021, is amended by adding
6the following new subsections:
7 NEW SUBSECTION. 1A. “Claimant” means an owner or operator
8who has received assistance under the Iowa tanks fund or its
9predecessor, the Iowa comprehensive petroleum underground
10storage tank fund created in section 455G.3, Code 2020.
11 NEW SUBSECTION. 1B. “Community remediation” means a
12curriculum of coordinated testing, planning, or remediation
13involving two or more tank sites potentially connected with a
14continuous contaminated area, pursuant to rules adopted by the
15commission under section 455B.474. A community remediation
16does not expand the scope of coverage otherwise available or
17relieve liability otherwise imposed under state or federal law.
18 NEW SUBSECTION. 2A. “Costs” means all costs, charges,
19expenses, or other indebtedness incurred by a claimant that
20are determined by the department to be reasonable for carrying
21out all works and undertakings necessary or incidental to the
22accomplishment of any project. “Costs” includes reasonable
23attorney fees and costs of litigation for which moneys are
24expended from the fund in connection with a release.
25 NEW SUBSECTION. 3A. “Insurance” means any form of financial
26assistance or showing of financial responsibility sufficient
27to comply with the federal Resource Conservation and Recovery
28Act, 42 U.S.C. §6901 et seq., or the department’s underground
29storage tank financial responsibility rules.
30 NEW SUBSECTION. 7A. “Potentially responsible party” means
31a person who may be responsible or liable for a release for
32which payments from the fund were made for corrective action or
33third-party liability.
34 NEW SUBSECTION. 7B. “Program” means the Iowa tanks fund
35financing program created pursuant to section 455B.472A.
-1-1 NEW SUBSECTION. 10A. “Third-party liability” means any of
2the following:
3a. Property damage including physical injury to tangible
4property, but not including loss of use. Property damage does
5not include costs to remediate.
6b. Bodily injury including sickness, physical injury, or
7death.
8 Sec. 3. Section 455B.471, subsection 3, Code 2021, is
9amended to read as follows:
103. “Fund” means the Iowa comprehensive petroleum underground
11storage tank tanks fund created in section 455B.472A.
12 Sec. 4. Section 455B.472, Code 2021, is amended to read as
13follows:
14455B.472 Declaration of policy.
15The general assembly finds that the release of regulated
16substances from underground storage tanks constitutes a
17threat to the public health and safety and to the natural
18resources of the state, and that existing regulatory programs
19of the department and other agencies do not adequately or
20appropriately address this substantial public concern.
21Additionally, the general assembly recognizes that because the
22appropriation of moneys to the Iowa comprehensive petroleum
23underground storage tank fund created in section 455G.3, Code
242020, ended on December 31, 2016, it is in the public interest
25to expeditiously use any remaining moneys from the Iowa
26comprehensive petroleum underground storage tank fund to assist
27as many owners as possible with financing all or part of the
28costs of corrective action for petroleum releases from leaking
29underground storage tanks through the establishment of the Iowa
30tanks fund financing program. The financing program shall last
31as long as moneys remain available, and the general assembly
32recognizes that moneys available for the financing program will
33eventually be depleted.
34 Sec. 5. NEW SECTION. 455B.472A Iowa tanks fund financing
35program — fund created.
-2- 11. The department shall establish and administer an Iowa
2tanks fund financing program for the purpose of reimbursing
3eligible claimants for all or part of the costs of corrective
4action for petroleum releases previously eligible for payment
5from the Iowa comprehensive petroleum underground storage tank
6fund pursuant to chapter 455G, Code 2020.
72. The department shall distribute financial assistance, up
8to one million dollars total, for work conducted by eligible
9entities that comply with the requirements of the program. The
10department shall determine if work completed is eligible for
11reimbursement under the program.
123. The department may enter into and provide any agreements,
13documents, instruments, certificates, data, or information
14necessary in connection with the operation, administration, and
15financing of the program consistent with this part, the federal
16Resource Conservation and Recovery Act, 42 U.S.C. §6901 et
17seq., the rules of the commission, and other applicable federal
18and state law.
194. The department may act to conform the program to the
20applicable guidance and regulations adopted by the United
21States environmental protection agency.
225. The Iowa tanks fund is created in the state treasury
23under the control of the department. The fund shall consist
24of moneys appropriated or transferred to the fund, interest
25attributable to moneys in the fund, moneys in the form of
26a devise, gift, bequest, donation, federal or other grant,
27reimbursement, repayment, judgment, or payment from any source
28intended to be used for the purposes of the fund, all receipts
29by the fund, and any other moneys credited to the fund from
30any public or private source. Notwithstanding section 8.33,
31any moneys in the fund shall not revert to any other fund.
32Notwithstanding section 12C.7, subsection 2, interest or
33earnings on moneys in the fund shall be credited to the fund.
346. The department shall administer the fund to carry out
35the purposes of the program and shall manage the revenue,
-3-1administration, restrictions, and disposition of the fund.
27. Moneys in the fund shall be used to reimburse tank owners
3for all or part of the costs of a corrective action for a
4petroleum release and for permanent closure of an underground
5storage tank system under the program, for additional
6assessment and corrective action arising out of releases at
7sites for which a certificate of no further action has been
8issued, for tank operator training, and for administrative
9costs of the department associated with the program.
108. a. For the fiscal year beginning July 1, 2022, and for
11each fiscal year thereafter through the fiscal year beginning
12July 1, 2026, two hundred fifty thousand dollars per year of
13the moneys in the fund are appropriated to the department of
14agriculture and land stewardship for the sole and exclusive
15purpose of inspecting fuel quality at pipeline terminals and
16renewable fuel production facilities, including associated
17salaries, support, maintenance, and miscellaneous purposes.
18b. Notwithstanding section 8.33, moneys appropriated in this
19subsection that remain unencumbered or unobligated at the close
20of a fiscal year shall not revert but shall remain available
21for expenditure for the purposes designated until the close of
22the succeeding fiscal year.
239. Moneys in the fund are not considered part of the general
24fund of the state and are not subject to appropriation for any
25other purpose by the general assembly. The fund is a separate
26dedicated fund under the administration and control of the
27department.
2810. Payments for reimbursement or other costs relating to
29any claim or cause of action in connection with a tank not
30owned or operated by the state or an agency of the state shall
31be made solely from the fund and no liability is otherwise
32imposed upon the state. Moneys from the fund are limited
33to the extent of coverage provided by the applicable account
34within the fund under which a claim is submitted, subject
35to the terms and conditions of that coverage. A court, an
-4-1administrative law judge, the department, or the commission
2shall not order or approve a remedy that would require the
3fund to exceed the fund’s then current funding limitations to
4satisfy an award or that would restrict the availability of
5moneys for higher priority sites. The state is not otherwise
6liable for a claim related to the fund and moneys from the
7general fund shall not be used to pay for reimbursement
8or other costs relating to any claim or cause of action in
9connection with a tank not owned or operated by the state or an
10agency of the state.
11 Sec. 6. NEW SECTION. 455B.472B Cost recovery enforcement.
121. Full recovery sought by department. The department
13may seek full recovery from an owner, operator, or other
14potentially responsible party liable for a release that is the
15subject of a corrective action for which moneys from the fund
16are expended, or for which moneys from the Iowa comprehensive
17petroleum underground storage tank fund created in section
18455G.3, Code 2020, were expended, including for third-party
19liability and for all other costs. If federal cleanup moneys
20are recovered, the federal cleanup moneys shall be used solely
21for the purpose of future cleanup activities.
222. Limitation of liability of owner or operator. Except
23as provided in subsection 3, the department shall not seek
24recovery for expenses in connection with corrective action for
25a release from an owner or operator eligible for assistance
26under the program, except for any unpaid portion of the
27deductible or copayment. This section does not affect any
28authorization of the department to impose or collect civil or
29administrative fines, penalties, or fees. Moneys from the fund
30shall not be used to pay for any third-party liability.
313. Owner or operator not in compliance. Notwithstanding
32subsection 2, the liability of an owner or operator shall be
33the full and total costs of corrective action and bodily injury
34or property damage to third parties, as specified in subsection
351, if the owner or operator has not complied with the financial
-5-1responsibility or other underground storage tank rules of the
2department or with this part or rules adopted under this part.
34. Lien on tank site. Any amount for which an owner or
4operator is required to pay to the fund by statute, rule,
5contract, or determination of liability by the department after
6hearing, if not paid when due, shall constitute a lien upon the
7real property where the tank that was the subject of corrective
8action is located, and the payment shall be collected in the
9same manner as the environmental protection charge pursuant to
10section 424.11, Code 2016.
115. Joinder of parties. The department has standing in
12any case or contested action related to the fund or a tank
13to assert any claim that the department may have regarding
14the tank at issue in the case or contested action. Upon
15motion and sufficient showing by a party to a cost recovery or
16subrogation action provided for under this section, the court
17or the administrative law judge shall join to the action any
18potentially responsible party who may be liable for costs and
19expenditures of the type recoverable pursuant to this section.
206. Third-party contracts. An insurance, indemnification,
21hold-harmless, conveyance, or similar risk-sharing or
22risk-shifting agreement shall not be effective to transfer
23any liability for costs recoverable under this section. The
24department may proceed directly against the owner, operator, or
25other potentially responsible party. This section does not bar
26any agreement to insure, hold harmless, or indemnify a party to
27the agreement for any costs or expenditures under this part,
28and does not modify rights between the parties to an agreement,
29except to the extent the agreement shifts liability to an owner
30or operator eligible for assistance under the program for any
31damages or other costs in connection with a corrective action
32for which another potentially responsible party is or may be
33liable. Any such provision is void and of no further force and
34effect.
357. Later proceedings permitted against other parties. The
-6-1entry of judgment against a party to the action does not
2bar a future action by the department against another person
3who is later alleged to be or discovered to be liable for
4costs and expenditures paid from the fund. Notwithstanding
5section 668.5, a potentially responsible party shall not seek
6contribution or any other recovery from an owner or operator
7eligible for assistance under the program for damages or other
8costs in connection with corrective action for a release for
9which the potentially responsible party is or may be liable.
10Subsequent successful proceedings against another party shall
11not modify or reduce the liability of a party against whom
12judgment has been previously entered.
138. Claims against potentially responsible parties.
14a. Upon payment from the fund for corrective action or
15third-party liability pursuant to this part, the rights of the
16claimant to recover payment from any potentially responsible
17party are assumed by the department to the extent paid from the
18fund. A claimant shall not receive double compensation for the
19same injury.
20b. In an action brought pursuant to this part seeking
21damages for corrective action or third-party liability, the
22court shall allow evidence and argument as to the replacement
23or indemnification of actual economic losses incurred or to be
24incurred in the future by the claimant by reason of insurance
25benefits, governmental benefits or programs, or other sources.
26c. A claimant may elect to authorize the department
27to pursue the claimant’s cause of action for any injury
28not compensated from the fund against any potentially
29responsible party, provided the attorney general determines
30such representation would not be a conflict of interest. If
31a claimant so elects, the department’s litigation expenses
32shall be shared on a pro rata basis with the claimant, but the
33claimant’s share of litigation expenses is payable exclusively
34from any share of the settlement or judgment payable to the
35claimant.
-7- 19. Exclusion of punitive damages. Moneys from the fund
2shall not be used to pay punitive damages.
3 Sec. 7. NEW SECTION. 455B.472C Discretionary rulemaking.
41. The commission may adopt rules pursuant to chapter
517A conditioning receipt of moneys from the fund to those
6petroleum-contaminated properties that present a higher degree
7of risk to the public health and safety or the environment and
8providing for denial of moneys from the fund to a person who
9did not make a good-faith attempt to comply with this part.
10This subsection does not confer a legal right to an owner of a
11petroleum-contaminated property, or an owner or operator of an
12underground storage tank located on the property, for receipt
13of moneys under this part.
142. The commission may adopt rules pursuant to chapter
1517A providing for the transfer of all or a portion of the
16liabilities relating to the fund. Notwithstanding any other
17provision to the contrary, the department, upon such transfer,
18shall not maintain any duty to reimburse claimants for those
19liabilities transferred.
20 Sec. 8. Section 455B.474, subsection 1, paragraph a,
21subparagraph (6), subparagraph divisions (g), (i), and (j),
22Code 2021, are amended to read as follows:
23(g) An owner or operator may elect to proceed with
24additional corrective action on the site. However, any
25action taken in addition to that required pursuant to this
26subparagraph (6), shall be solely at the expense of the owner
27or operator and shall not be considered corrective action
28for purposes of section 455G.9 455B.472A, unless otherwise
29previously agreed to by the board department and the owner or
30operator pursuant to section 455G.9, subsection 7 455B.472A.
31Corrective action taken by an owner or operator due to the
32department’s failure to meet the time requirements provided in
33subparagraph division (e) shall be considered corrective action
34for purposes of section 455G.9 455B.472A.
35(i) Replacement or upgrade of a tank on a site classified
-8-1as a high or low risk site shall be equipped with a secondary
2containment system with monitoring of the space between the
3primary and secondary containment structures or other board
4approved tank system or methodology approved by the department.
5(j) The commission and the board department shall cooperate
6to ensure that remedial measures required by the corrective
7action rules adopted pursuant to this subparagraph (6) are
8reasonably cost-effective and shall, to the fullest extent
9possible, avoid duplicating and conflicting requirements.
10 Sec. 9. Section 455B.474, subsection 2, unnumbered
11paragraph 1, Code 2021, is amended to read as follows:
12The maintenance of evidence of financial responsibility as
13the director determines to be feasible and necessary for taking
14corrective action and for compensating third parties for bodily
15injury and property damage caused by release of a regulated
16substance from an underground storage a tank.
17 Sec. 10. Section 455B.474, subsection 9, paragraph d, Code
182021, is amended to read as follows:
19d. The certification of groundwater professionals shall not
20impose liability on the board, the department, or the fund for
21any claim or cause of action of any nature, based on the action
22or inaction of a groundwater professional certified pursuant
23to this subsection.
24 Sec. 11. Section 455B.474, Code 2021, is amended by adding
25the following new subsection:
26 NEW SUBSECTION. 11. Department practices and procedures
27for implementing and administering the Iowa tanks fund
28financing program. The rules shall include but are not limited
29to requirements for program eligibility, investigating and
30settling claims made against the fund, appeal procedures,
31community remediation, prioritization of fund moneys,
32funding for tank operator training, additional assessment
33and corrective action arising out of releases at sites for
34which a certificate of no further action has been issued, and
35reimbursement for the permanent closure of an underground
-9-1storage tank system.
2 Sec. 12. Section 455B.477, subsection 7, Code 2021, is
3amended to read as follows:
47. The civil penalties or other damages or moneys recovered
5by the state or the petroleum underground storage tank fund
6in connection with a petroleum underground storage tank under
7this part of this division or chapter 455G shall be credited
8to the fund created in section 455G.3 and allocated between
9fund accounts according to the fund budget. Any federal
10moneys, including but not limited to federal underground
11storage tank trust fund moneys, received by the state or the
12department of natural resources in connection with a release
13occurring on or after May 5, 1989, or received generally for
14underground storage tank programs on or after May 5, 1989,
15shall be credited to the fund created in section 455G.3 and
16allocated between fund accounts according to the fund budget
17 455B.472A, unless such use would be contrary to federal law.
18The department shall cooperate with the board of the Iowa
19comprehensive petroleum underground storage tank fund to
20 maximize the state’s eligibility for and receipt of federal
21funds for underground storage tank related purposes.
22 Sec. 13. EFFECTIVE DATE. This division of this Act takes
23effect July 1, 2022.
24DIVISION II
25CONFORMING CHANGES
26 Sec. 14. Section 68B.35, subsection 2, paragraph e, Code
272021, is amended to read as follows:
28e. Members of the state banking council, the Iowa ethics
29and campaign disclosure board, the credit union review board,
30the economic development authority, the employment appeal
31board, the environmental protection commission, the health
32facilities council, the Iowa finance authority, the Iowa public
33employees’ retirement system investment board, the board of
34the Iowa lottery authority, the natural resource commission,
35the board of parole, the petroleum underground storage tank
-10-1fund board, the public employment relations board, the state
2racing and gaming commission, the state board of regents, the
3transportation commission, the office of consumer advocate, the
4utilities board, the Iowa telecommunications and technology
5commission, and any full-time members of other boards and
6commissions as defined under section 7E.4 who receive an annual
7salary for their service on the board or commission. The Iowa
8ethics and campaign disclosure board shall conduct an annual
9review to determine if members of any other board, commission,
10or authority should file a statement and shall require the
11filing of a statement pursuant to rules adopted pursuant to
12chapter 17A.
13 Sec. 15. Section 159A.11, subsection 10, Code 2021, is
14amended by striking the subsection.
15 Sec. 16. Section 159A.13, subsection 6, Code 2021, is
16amended by striking the subsection.
17 Sec. 17. Section 159A.14, subsection 2, Code 2021, is
18amended to read as follows:
192. A person may apply to the department to receive financial
20incentives on a cost-share basis. The department shall forward
21the applications to the underground storage tank fund board as
22required by that board for evaluation and recommendation. The
23underground storage tank fund board may rank the applications
24with comments and shall forward them to the infrastructure
25board for approval or disapproval. The department shall award
26financial incentives on a cost-share basis to an eligible
27person whose application was approved by the infrastructure
28board.
29 Sec. 18. Section 159A.15, subsection 1, Code 2021, is
30amended to read as follows:
311. A person may apply to the department to receive financial
32incentives on a cost-share basis. The department shall forward
33the applications to the underground storage tank fund board as
34required by that board for evaluation and recommendation. The
35underground storage tank fund board may rank the applications
-11-1with comments and shall forward them to the infrastructure
2board for approval or disapproval. The department shall award
3financial incentives on a cost-share basis to an eligible
4person whose application was approved by the infrastructure
5board.
6 Sec. 19. Section 323.1, subsection 16, Code 2021, is amended
7to read as follows:
816. “Storage tank” means a motor fuel storage tank as
9defined in section 214.1, including an underground storage tank
10subject to regulation under chapter 455G 455B, division IV,
11part 8, or section 455G.31.
12 Sec. 20. Section 422.7, subsection 2, paragraph u, Code
132021, is amended by striking the paragraph.
14 Sec. 21. Section 455B.174, subsection 4, paragraph d, Code
152021, is amended to read as follows:
16d. If a public water supply has a groundwater source
17that contains petroleum, a fraction of crude oil, or their
18degradation products, or is located in an area deemed by the
19department as likely to be contaminated by such materials, and
20after consultation with the public water supply system and
21consideration of all applicable rules relating to remediation,
22the department may require the public water supply system to
23replace that groundwater source in order to receive a permit
24to operate. The requirement to replace the source shall only
25be made by the department if the public water supply system
26is fully compensated for any additional design, construction,
27operation, and monitoring costs from the Iowa comprehensive
28petroleum underground storage tank fund created by chapter
29455G or from any other funds that do not impose a financial
30obligation on the part of the public water supply system.
31Funds available to or provided by the public water supply
32system may be used for system improvements made in conjunction
33with replacement of the source. The department cannot require
34a public water supply system to replace its water source with a
35less reliable water source or with a source that does not meet
-12-1federal primary, secondary, or other health-based standards
2unless treatment is provided to ensure that the drinking water
3meets these standards. Nothing in this paragraph shall affect
4the public water supply system’s right to pursue recovery from
5a responsible party.
6 Sec. 22. Section 455E.11, subsection 2, paragraph d,
7subparagraph (3), Code 2021, is amended by striking the
8subparagraph.
9 Sec. 23. Section 455I.2, subsection 5, paragraph a, Code
102021, is amended to read as follows:
11a. A federal or state program that is subject to the
12jurisdiction of an agency, including but not limited to
13programs established by chapters chapter 455B and 455G,
14corrective or response actions pursuant to 42 U.S.C. §6901 et
15seq., and remedial actions under 42 U.S.C. §9601 et seq.
16 Sec. 24. EFFECTIVE DATE. This division of this Act takes
17effect July 1, 2022.
18DIVISION III
19FUEL TESTING STUDY
20 Sec. 25. FUEL TESTING AND LABORATORY NEEDS STUDY.
211. The department of agriculture and land stewardship
22shall conduct a study regarding the long-term future fuel
23testing needs in Iowa and how to maximize and leverage the
24Iowa central fuel testing laboratory located at Iowa central
25community college. The department may consider any matter
26that it determines to be relevant, including but not limited
27to the weights and measures bureau’s testing needs for fuel
28inspection, cost analysis for future growth and laboratory
29equipment, and related support services for both the petroleum
30and renewable fuel industry in Iowa, which may be administered
31through a grant program.
322. The department may consult with Iowa central community
33college and shall seek comments from persons and fuel industry
34leaders in Iowa who have an interest in the Iowa central fuel
35testing laboratory.
-13- 13. The department shall submit a report regarding the study,
2including findings and recommendations, to the governor and
3general assembly not later than December 15, 2021. The report
4may include proposed legislation determined by the department
5to be necessary or desirable.
6DIVISION IV
7REPEAL AND TRANSITION
8 Sec. 26. NEW SECTION. 427B.23 Future repeal.
9This subchapter is repealed July 1, 2022. All credits
10existing upon repeal of this subchapter shall continue until
11their expiration.
12 Sec. 27. NEW SECTION. 455G.21A Claims not eligible.
13A claim for a release filed on or after January 1, 2022,
14shall not be eligible for payment from the fund.
15 Sec. 28. NEW SECTION. 455G.21B Future repeal.
16This subchapter is repealed July 1, 2022.
17 Sec. 29. TRANSITION PROVISIONS.
181. Upon repeal of chapter 455G, subchapter 1, and the
19creation of the Iowa tanks fund pursuant to section 455B.472A,
20as enacted in this Act, all moneys in all funds administered by
21the Iowa comprehensive petroleum underground storage tank fund
22board are transferred to the department of natural resources
23for deposit in the Iowa tanks fund. Any moneys credited to
24any fund administered by the Iowa comprehensive petroleum
25underground storage tank fund board on and after July 1, 2022,
26are transferred to the department for deposit in the Iowa tanks
27fund.
282. Any rule, regulation, form, order, or directive
29promulgated by the Iowa comprehensive petroleum underground
30storage tank fund board as required to administer and enforce
31the provisions relating to the Iowa comprehensive petroleum
32underground storage tank fund shall continue in full force
33and effect under the jurisdiction of the department of
34natural resources until amended, repealed, or supplemented by
35affirmative action of the department.
-14- 13. The Iowa comprehensive petroleum underground storage
2tank fund board shall administratively close or terminate
3any remaining liabilities, contracts, outstanding claims,
4payments, or other obligations for open comprehensive petroleum
5underground storage tank fund claims existing on or before June
630, 2022.
74. The department of natural resources may begin
8implementation of this Act prior to July 1, 2022, to the
9extent necessary to transition to full implementation of the
10provisions relating to the Iowa tanks fund and repeal of the
11Iowa comprehensive petroleum underground storage tank fund.
12EXPLANATION
13The inclusion of this explanation does not constitute agreement with
14the explanation’s substance by the members of the general assembly.
15Currently, the Iowa comprehensive petroleum underground
16storage tank fund exists under the control of the Iowa
17comprehensive petroleum underground storage tank fund board.
18The Iowa comprehensive petroleum underground storage tank fund
19contains an account with moneys available to fund corrective
20action for petroleum releases. The Iowa comprehensive
21petroleum underground storage tank fund also contains a loan
22guarantee account and a marketability fund.
23This bill repeals the Iowa comprehensive petroleum
24underground storage tank fund and eliminates the Iowa
25comprehensive petroleum underground storage tank fund board
26on July 1, 2022. The bill requires the department of natural
27resources (department) to establish and administer the Iowa
28tanks fund financing program to distribute financial assistance
29for work conducted by eligible entities. The bill creates the
30Iowa tanks fund within the state treasury under the control of
31the department and requires the department to administer the
32fund. The bill appropriates $250,000 per year from the fund to
33the department of agriculture and land stewardship (DALS) for
34the fiscal year beginning July 1, 2022, and each fiscal year
35thereafter through the fiscal year beginning July 1, 2026, to
-15-1inspect fuel quality at terminals and facilities. The program
2allows a claimant who has previously received assistance
3under the Iowa tanks fund or the Iowa comprehensive petroleum
4underground storage tank fund to receive reimbursement from
5the Iowa tanks fund for all or part of the costs of corrective
6action for a petroleum release. The bill allows for cost
7recovery efforts from potentially responsible parties when
8moneys from the Iowa tanks fund are used during the cleanup
9of contamination at a tank site. The bill directs the
10environmental protection commission to adopt rules for program
11eligibility, investigating and settling claims made against the
12fund, appeal procedures, community remediation, prioritization
13of fund moneys, funding for tank operator training, additional
14assessment and corrective action arising out of a release at a
15site for which a no further action certificate has been issued,
16and reimbursement for the permanent closure of an underground
17storage tank system. The bill provides that claims for
18releases filed on or after January 1, 2022, are not eligible
19for payment from the Iowa comprehensive petroleum underground
20storage tank fund.
21The bill requires DALS to conduct a study regarding the
22long-term future fuel testing needs in Iowa and how to maximize
23and leverage the Iowa central fuel testing laboratory located
24at Iowa central community college. The bill requires DALS to
25submit a report regarding the study to the governor and general
26assembly not later than December 15, 2021.
27The bill includes transition provisions retaining the
28effectiveness of rules, regulations, forms, orders, or
29directives promulgated by the Iowa comprehensive petroleum
30underground storage tank fund board until amended, repealed,
31or supplemented by affirmative action of the department. Any
32moneys credited to the Iowa comprehensive petroleum underground
33storage tank fund on and after July 1, 2022, are transferred to
34the department for deposit in the Iowa tanks fund.
35The divisions of the bill establishing the Iowa tanks fund
-16-1and making conforming Code changes take effect July 1, 2022.
-17-js/ns