Bill Text: IA HF2337 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act relating to underground storage tanks, including by creating the Iowa tanks fund and Iowa tanks fund financing program, repealing the Iowa comprehensive petroleum underground storage tank fund, and eliminating the Iowa comprehensive petroleum underground storage tank fund board, requiring a study, making appropriations, and including effective date and transition provisions.(Formerly HF 840, HF 645, HSB 135.)

Spectrum: Committee Bill

Status: (Engrossed - Dead) 2022-05-20 - NOBA: Senate Full Approps [HF2337 Detail]

Download: Iowa-2021-HF2337-Introduced.html
House File 2337 - Introduced HOUSE FILE 2337 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 840) (SUCCESSOR TO HF 645) (SUCCESSOR TO HSB 135) 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 board, 5 requiring a study, making appropriations, and including 6 effective date and transition provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 1070HW (3) 89 js/ns
H.F. 2337 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 1070HW (3) 89 js/ns 1/ 17
H.F. 2337 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 1070HW (3) 89 js/ns 2/ 17
H.F. 2337 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 1070HW (3) 89 js/ns 3/ 17
H.F. 2337 administration, restrictions, and disposition of the fund. 1 7. Moneys in the fund are appropriated to the department for 2 all of the following purposes: 3 a. Reimbursement to tank owners for all or part of the 4 costs of a corrective action for a petroleum release under the 5 program. 6 b. Permanent closure of an underground storage tank system 7 under the program, additional assessment and corrective action 8 arising out of a release at a site for which a certificate of 9 no further action has been issued, and tank operator training. 10 Of the moneys not used for purposes specified in paragraphs “a” 11 and “c” , not less than four million dollars shall be used for 12 these purposes. 13 c. Administrative costs of the department associated with 14 the program. Not more than one hundred fifty thousand dollars 15 per year shall be used for this purpose. 16 8. a. For the fiscal year beginning July 1, 2023, and for 17 each fiscal year thereafter, there is appropriated from the 18 general fund of the state to the department of agriculture 19 and land stewardship for the sole purpose of inspecting 20 fuel quality at pipeline terminals and renewable fuel 21 production facilities, including associated salaries, support, 22 maintenance, and miscellaneous purposes, two hundred fifty 23 thousand dollars. 24 b. Notwithstanding section 8.33, moneys appropriated in this 25 subsection that remain unencumbered or unobligated at the close 26 of a fiscal year shall not revert but shall remain available 27 for expenditure for the purposes designated until the close of 28 the succeeding fiscal year. 29 9. Moneys in the fund are not considered part of the general 30 fund of the state and are not subject to appropriation for any 31 other purpose by the general assembly. The fund is a separate 32 dedicated fund under the administration and control of the 33 department. 34 10. Payments for reimbursement or other costs relating to 35 -4- LSB 1070HW (3) 89 js/ns 4/ 17
H.F. 2337 any claim or cause of action in connection with a tank not 1 owned or operated by the state or an agency of the state shall 2 be made solely from the fund and no liability is otherwise 3 imposed upon the state. Moneys from the fund are limited 4 to the extent of coverage provided by the applicable account 5 within the fund under which a claim is submitted, subject 6 to the terms and conditions of that coverage. A court, an 7 administrative law judge, the department, or the commission 8 shall not order or approve a remedy that would require the 9 fund to exceed the fund’s then current funding limitations to 10 satisfy an award or that would restrict the availability of 11 moneys for higher priority sites. The state is not otherwise 12 liable for a claim related to the fund and moneys from the 13 general fund shall not be used to pay for reimbursement 14 or other costs relating to any claim or cause of action in 15 connection with a tank not owned or operated by the state or an 16 agency of the state. 17 Sec. 6. NEW SECTION . 455B.472B Cost recovery enforcement. 18 1. Full recovery sought by department. The department 19 may seek full recovery from an owner, operator, or other 20 potentially responsible party liable for a release that is the 21 subject of a corrective action for which moneys from the fund 22 are expended, or for which moneys from the Iowa comprehensive 23 petroleum underground storage tank fund created in section 24 455G.3, Code 2022, were expended, including for third-party 25 liability and for all other costs. If federal cleanup moneys 26 are recovered, the federal cleanup moneys shall be used solely 27 for the purpose of future cleanup activities. 28 2. Limitation of liability of owner or operator. Except 29 as provided in subsection 3, the department shall not seek 30 recovery for expenses in connection with corrective action for 31 a release from an owner or operator eligible for assistance 32 under the program, except for any unpaid portion of the 33 deductible or copayment. This subsection does not affect any 34 authorization of the department to impose or collect civil or 35 -5- LSB 1070HW (3) 89 js/ns 5/ 17
H.F. 2337 administrative fines, penalties, or fees. Moneys from the fund 1 shall not be used to pay for any third-party liability. 2 3. Owner or operator not in compliance. Notwithstanding 3 subsection 2, the liability of an owner or operator shall be 4 the full and total costs of corrective action and bodily injury 5 or property damage to third parties, as specified in subsection 6 1, if the owner or operator has not complied with the financial 7 responsibility or other underground storage tank rules of 8 the department or with this part 8 of subchapter IV or rules 9 adopted under this part. 10 4. Lien on tank site. Any amount for which an owner or 11 operator is required to pay to the fund by statute, rule, 12 contract, or determination of liability by the department after 13 hearing, if not paid when due, shall constitute a lien upon the 14 real property where the tank that was the subject of corrective 15 action is located, and the payment shall be collected in the 16 same manner as the environmental protection charge pursuant to 17 section 424.11, Code 2016. 18 5. Joinder of parties. The department has standing in 19 any case or contested action related to the fund or a tank 20 to assert any claim that the department may have regarding 21 the tank at issue in the case or contested action. Upon 22 motion and sufficient showing by a party to a cost recovery or 23 subrogation action provided for under this section, the court 24 or the administrative law judge shall join to the action any 25 potentially responsible party who may be liable for costs and 26 expenditures of the type recoverable pursuant to this section. 27 6. Third-party contracts. An insurance, indemnification, 28 hold-harmless, conveyance, or similar risk-sharing or 29 risk-shifting agreement shall not be effective to transfer 30 any liability for costs recoverable under this section. The 31 department may proceed directly against the owner, operator, 32 or other potentially responsible party. This subsection does 33 not bar any agreement to insure, hold harmless, or indemnify 34 a party to the agreement for any costs or expenditures under 35 -6- LSB 1070HW (3) 89 js/ns 6/ 17
H.F. 2337 this part 8 of subchapter IV, and does not modify rights 1 between the parties to an agreement, except to the extent the 2 agreement shifts liability to an owner or operator eligible 3 for assistance under the program for any damages or other 4 costs in connection with a corrective action for which another 5 potentially responsible party is or may be liable. Any such 6 provision is void and of no further force and effect. 7 7. Later proceedings permitted against other parties. The 8 entry of judgment against a party to the action does not 9 bar a future action by the department against another person 10 who is later alleged to be or discovered to be liable for 11 costs and expenditures paid from the fund. Notwithstanding 12 section 668.5, a potentially responsible party shall not seek 13 contribution or any other recovery from an owner or operator 14 eligible for assistance under the program for damages or other 15 costs in connection with corrective action for a release for 16 which the potentially responsible party is or may be liable. 17 Subsequent successful proceedings against another party shall 18 not modify or reduce the liability of a party against whom 19 judgment has been previously entered. 20 8. Claims against potentially responsible parties. 21 a. Upon payment from the fund for corrective action or 22 third-party liability pursuant to this part 8 of subchapter 23 IV, the rights of the claimant to recover payment from any 24 potentially responsible party are assumed by the department to 25 the extent paid from the fund. A claimant shall not receive 26 double compensation for the same injury. 27 b. In an action brought pursuant to this part 8 of 28 subchapter IV seeking damages for corrective action or 29 third-party liability, the court shall allow evidence and 30 argument as to the replacement or indemnification of actual 31 economic losses incurred or to be incurred in the future by the 32 claimant by reason of insurance benefits, governmental benefits 33 or programs, or other sources. 34 c. A claimant may elect to authorize the department 35 -7- LSB 1070HW (3) 89 js/ns 7/ 17
H.F. 2337 to pursue the claimant’s cause of action for any injury 1 not compensated from the fund against any potentially 2 responsible party, provided the attorney general determines 3 such representation would not be a conflict of interest. If 4 a claimant so elects, the department’s litigation expenses 5 shall be shared on a pro rata basis with the claimant, but the 6 claimant’s share of litigation expenses is payable exclusively 7 from any share of the settlement or judgment payable to the 8 claimant. 9 9. Exclusion of punitive damages. Moneys from the fund 10 shall not be used to pay punitive damages. 11 Sec. 7. NEW SECTION . 455B.472C Discretionary rulemaking. 12 1. The commission may adopt rules pursuant to chapter 13 17A conditioning receipt of moneys from the fund to those 14 petroleum-contaminated properties that present a higher degree 15 of risk to the public health and safety or the environment and 16 providing for denial of moneys from the fund to a person who 17 did not make a good-faith attempt to comply with this part 8 18 of subchapter IV. This subsection does not confer a legal 19 right to an owner of a petroleum-contaminated property, or an 20 owner or operator of an underground storage tank located on the 21 property, for receipt of moneys under this part 8 of subchapter 22 IV. 23 2. The commission may adopt rules pursuant to chapter 24 17A providing for the transfer of all or a portion of the 25 liabilities relating to the fund. Notwithstanding any other 26 provision to the contrary, the department, upon such transfer, 27 shall not maintain any duty to reimburse claimants for those 28 liabilities transferred. 29 Sec. 8. Section 455B.474, subsection 1, paragraph a, 30 subparagraph (6), subparagraph divisions (g), (i), and (j), 31 Code 2022, are amended to read as follows: 32 (g) An owner or operator may elect to proceed with 33 additional corrective action on the site. However, any 34 action taken in addition to that required pursuant to this 35 -8- LSB 1070HW (3) 89 js/ns 8/ 17
H.F. 2337 subparagraph (6), shall be solely at the expense of the owner 1 or operator and shall not be considered corrective action 2 for purposes of section 455G.9 455B.472A , unless otherwise 3 previously agreed to by the board department and the owner or 4 operator pursuant to section 455G.9, subsection 7 455B.472A . 5 Corrective action taken by an owner or operator due to the 6 department’s failure to meet the time requirements provided in 7 subparagraph division (e) shall be considered corrective action 8 for purposes of section 455G.9 455B.472A . 9 (i) Replacement or upgrade of a tank on a site classified 10 as a high or low risk site shall be equipped with a secondary 11 containment system with monitoring of the space between the 12 primary and secondary containment structures or other board 13 approved tank system or methodology approved by the department . 14 (j) The commission and the board department shall cooperate 15 to ensure that remedial measures required by the corrective 16 action rules adopted pursuant to this subparagraph (6) are 17 reasonably cost-effective and shall, to the fullest extent 18 possible, avoid duplicating and conflicting requirements. 19 Sec. 9. Section 455B.474, subsection 2, unnumbered 20 paragraph 1, Code 2022, is amended to read as follows: 21 The maintenance of evidence of financial responsibility as 22 the director determines to be feasible and necessary for taking 23 corrective action and for compensating third parties for bodily 24 injury and property damage caused by release of a regulated 25 substance from an underground storage a tank. 26 Sec. 10. Section 455B.474, subsection 9, paragraph d, Code 27 2022, is amended to read as follows: 28 d. The certification of groundwater professionals shall not 29 impose liability on the board, the department , or the fund for 30 any claim or cause of action of any nature, based on the action 31 or inaction of a groundwater professional certified pursuant 32 to this subsection . 33 Sec. 11. Section 455B.474, Code 2022, is amended by adding 34 the following new subsection: 35 -9- LSB 1070HW (3) 89 js/ns 9/ 17
H.F. 2337 NEW SUBSECTION . 11. Department practices and procedures 1 for implementing and administering the Iowa tanks fund 2 financing program. The rules shall include but are not limited 3 to requirements for program eligibility, investigating and 4 settling claims made against the fund, appeal procedures, 5 community remediation, prioritization of fund moneys, 6 funding for tank operator training, additional assessment 7 and corrective action arising out of releases at sites for 8 which a certificate of no further action has been issued, and 9 reimbursement for the permanent closure of an underground 10 storage tank system. 11 Sec. 12. Section 455B.477, subsection 7, Code 2022, is 12 amended to read as follows: 13 7. The civil penalties or other damages or moneys recovered 14 by the state or the petroleum underground storage tank fund 15 in connection with a petroleum underground storage tank under 16 this part 8 of subchapter IV or chapter 455G shall be credited 17 to the fund created in section 455G.3 and allocated between 18 fund accounts according to the fund budget. Any federal 19 moneys, including but not limited to federal underground 20 storage tank trust fund moneys, received by the state or the 21 department of natural resources in connection with a release 22 occurring on or after May 5, 1989, or received generally for 23 underground storage tank programs on or after May 5, 1989, 24 shall be credited to the fund created in section 455G.3 and 25 allocated between fund accounts according to the fund budget 26 455B.472A , unless such use would be contrary to federal law. 27 The department shall cooperate with the board of the Iowa 28 comprehensive petroleum underground storage tank fund to 29 maximize the state’s eligibility for and receipt of federal 30 funds for underground storage tank related purposes. 31 Sec. 13. EFFECTIVE DATE. This division of this Act takes 32 effect July 1, 2023. 33 DIVISION II 34 CONFORMING CHANGES 35 -10- LSB 1070HW (3) 89 js/ns 10/ 17
H.F. 2337 Sec. 14. Section 68B.35, subsection 2, paragraph e, Code 1 2022, is amended to read as follows: 2 e. Members of the state banking council, the Iowa ethics 3 and campaign disclosure board, the credit union review board, 4 the economic development authority, the employment appeal 5 board, the environmental protection commission, the health 6 facilities council, the Iowa finance authority, the Iowa public 7 employees’ retirement system investment board, the board of 8 the Iowa lottery authority, the natural resource commission, 9 the board of parole, the petroleum underground storage tank 10 fund board, the public employment relations board, the state 11 racing and gaming commission, the state board of regents, the 12 transportation commission, the office of consumer advocate, the 13 utilities board, the Iowa telecommunications and technology 14 commission, and any full-time members of other boards and 15 commissions as defined under section 7E.4 who receive an annual 16 salary for their service on the board or commission. The Iowa 17 ethics and campaign disclosure board shall conduct an annual 18 review to determine if members of any other board, commission, 19 or authority should file a statement and shall require the 20 filing of a statement pursuant to rules adopted pursuant to 21 chapter 17A . 22 Sec. 15. Section 159A.11, subsection 10, Code 2022, is 23 amended by striking the subsection. 24 Sec. 16. Section 159A.13, subsection 6, Code 2022, is 25 amended by striking the subsection. 26 Sec. 17. Section 159A.14, subsection 2, Code 2022, is 27 amended to read as follows: 28 2. A person may apply to the department to receive financial 29 incentives on a cost-share basis. The department shall forward 30 the applications to the underground storage tank fund board as 31 required by that board for evaluation and recommendation. The 32 underground storage tank fund board may rank the applications 33 with comments and shall forward them to the infrastructure 34 board for approval or disapproval. The department shall award 35 -11- LSB 1070HW (3) 89 js/ns 11/ 17
H.F. 2337 financial incentives on a cost-share basis to an eligible 1 person whose application was approved by the infrastructure 2 board. 3 Sec. 18. Section 159A.15, subsection 1, Code 2022, is 4 amended to read as follows: 5 1. A person may apply to the department to receive financial 6 incentives on a cost-share basis. The department shall forward 7 the applications to the underground storage tank fund board as 8 required by that board for evaluation and recommendation. The 9 underground storage tank fund board may rank the applications 10 with comments and shall forward them to the infrastructure 11 board for approval or disapproval. The department shall award 12 financial incentives on a cost-share basis to an eligible 13 person whose application was approved by the infrastructure 14 board. 15 Sec. 19. Section 323.1, subsection 16, Code 2022, is amended 16 to read as follows: 17 16. “Storage tank” means a motor fuel storage tank as 18 defined in section 214.1 , including an underground storage tank 19 subject to regulation under chapter 455G 455B, subchapter IV, 20 part 8, or section 455G.31 . 21 Sec. 20. Section 422.7, subsection 2, paragraph u, Code 22 2022, is amended by striking the paragraph. 23 Sec. 21. Section 455B.174, subsection 4, paragraph d, Code 24 2022, is amended to read as follows: 25 d. If a public water supply has a groundwater source 26 that contains petroleum, a fraction of crude oil, or their 27 degradation products, or is located in an area deemed by the 28 department as likely to be contaminated by such materials, and 29 after consultation with the public water supply system and 30 consideration of all applicable rules relating to remediation, 31 the department may require the public water supply system to 32 replace that groundwater source in order to receive a permit 33 to operate. The requirement to replace the source shall only 34 be made by the department if the public water supply system 35 -12- LSB 1070HW (3) 89 js/ns 12/ 17
H.F. 2337 is fully compensated for any additional design, construction, 1 operation, and monitoring costs from the Iowa comprehensive 2 petroleum underground storage tank fund created by chapter 3 455G or from any other funds that do not impose a financial 4 obligation on the part of the public water supply system. 5 Funds available to or provided by the public water supply 6 system may be used for system improvements made in conjunction 7 with replacement of the source. The department cannot require 8 a public water supply system to replace its water source with a 9 less reliable water source or with a source that does not meet 10 federal primary, secondary, or other health-based standards 11 unless treatment is provided to ensure that the drinking water 12 meets these standards. Nothing in this paragraph shall affect 13 the public water supply system’s right to pursue recovery from 14 a responsible party. 15 Sec. 22. Section 455E.11, subsection 2, paragraph d, 16 subparagraph (3), Code 2022, is amended by striking the 17 subparagraph. 18 Sec. 23. Section 455I.2, subsection 5, paragraph a, Code 19 2022, is amended to read as follows: 20 a. A federal or state program that is subject to the 21 jurisdiction of an agency, including but not limited to 22 programs established by chapters chapter 455B and 455G , 23 corrective or response actions pursuant to 42 U.S.C. §6901 et 24 seq., and remedial actions under 42 U.S.C. §9601 et seq. 25 Sec. 24. EFFECTIVE DATE. This division of this Act takes 26 effect July 1, 2023. 27 DIVISION III 28 FUEL TESTING STUDY 29 Sec. 25. FUEL TESTING AND LABORATORY NEEDS STUDY. 30 1. The department of agriculture and land stewardship 31 shall conduct a study regarding the long-term future fuel 32 testing needs in Iowa and how to maximize and leverage the 33 Iowa central fuel testing laboratory located at Iowa central 34 community college. The department may consider any matter 35 -13- LSB 1070HW (3) 89 js/ns 13/ 17
H.F. 2337 that it determines to be relevant, including but not limited 1 to the weights and measures bureau’s testing needs for fuel 2 inspection, cost analysis for future growth and laboratory 3 equipment, and related support services for both the petroleum 4 and renewable fuel industry in Iowa, which may be administered 5 through a grant program. 6 2. The department may consult with Iowa central community 7 college and shall seek comments from persons and fuel industry 8 leaders in Iowa who have an interest in the Iowa central fuel 9 testing laboratory. 10 3. The department shall submit a report regarding the study, 11 including findings and recommendations, to the governor and 12 general assembly not later than December 15, 2022. The report 13 may include proposed legislation determined by the department 14 to be necessary or desirable. 15 DIVISION IV 16 REPEAL AND TRANSITION 17 Sec. 26. NEW SECTION . 427B.23 Future repeal. 18 This subchapter is repealed July 1, 2023. All credits 19 existing upon repeal of this subchapter shall continue until 20 their expiration. 21 Sec. 27. NEW SECTION . 455G.21A Claims not eligible. 22 A claim for a release filed on or after January 1, 2023, 23 shall not be eligible for payment from the fund. 24 Sec. 28. NEW SECTION . 455G.21B Future repeal. 25 This subchapter is repealed July 1, 2023. 26 Sec. 29. TRANSITION PROVISIONS. 27 1. Upon repeal of chapter 455G, subchapter 1, and the 28 creation of the Iowa tanks fund pursuant to section 455B.472A, 29 as enacted in this Act, all moneys in all funds administered by 30 the Iowa comprehensive petroleum underground storage tank fund 31 board are transferred to the department of natural resources 32 for deposit in the Iowa tanks fund. Any moneys credited to 33 any fund administered by the Iowa comprehensive petroleum 34 underground storage tank fund board on and after July 1, 2023, 35 -14- LSB 1070HW (3) 89 js/ns 14/ 17
H.F. 2337 are transferred to the department for deposit in the Iowa tanks 1 fund. 2 2. Any rule, regulation, form, order, or directive 3 promulgated by the Iowa comprehensive petroleum underground 4 storage tank fund board as required to administer and enforce 5 the provisions relating to the Iowa comprehensive petroleum 6 underground storage tank fund shall continue in full force 7 and effect under the jurisdiction of the department of 8 natural resources until amended, repealed, or supplemented by 9 affirmative action of the department. 10 3. The Iowa comprehensive petroleum underground storage 11 tank fund board shall administratively close or terminate 12 any remaining liabilities, contracts, outstanding claims, 13 payments, or other obligations for open comprehensive petroleum 14 underground storage tank fund claims existing on or before June 15 30, 2023. 16 4. The department of natural resources may begin 17 implementation of this Act prior to July 1, 2023, to the 18 extent necessary to transition to full implementation of the 19 provisions relating to the Iowa tanks fund and repeal of the 20 Iowa comprehensive petroleum underground storage tank fund. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 Currently, the Iowa comprehensive petroleum underground 25 storage tank fund exists under the control of the Iowa 26 comprehensive petroleum underground storage tank fund board. 27 The Iowa comprehensive petroleum underground storage tank fund 28 contains an account with moneys available to fund corrective 29 action for petroleum releases. The Iowa comprehensive 30 petroleum underground storage tank fund also contains a loan 31 guarantee account and a marketability fund. 32 This bill repeals the Iowa comprehensive petroleum 33 underground storage tank fund and eliminates the Iowa 34 comprehensive petroleum underground storage tank fund board 35 -15- LSB 1070HW (3) 89 js/ns 15/ 17
H.F. 2337 on July 1, 2023. The bill requires the department of natural 1 resources (department) to establish and administer the Iowa 2 tanks fund financing program to distribute financial assistance 3 for work conducted by eligible entities. The bill creates the 4 Iowa tanks fund within the state treasury under the control of 5 the department and requires the department to administer the 6 fund. Moneys in the fund are appropriated to the department 7 for the purposes of providing reimbursement to tank owners 8 for all or part of the costs of a corrective action; for 9 permanently closing an underground storage tank system, 10 assessment and corrective action arising out of a release, and 11 tank operator training; and administrative costs. 12 The bill appropriates $250,000 per year from the general 13 fund to the department of agriculture and land stewardship 14 (DALS) beginning July 1, 2023, to inspect fuel quality at 15 terminals and facilities. The program allows a claimant who 16 has previously received assistance under the Iowa tanks fund or 17 the Iowa comprehensive petroleum underground storage tank fund 18 to receive reimbursement from the Iowa tanks fund for all or 19 part of the costs of corrective action for a petroleum release. 20 The bill allows for cost recovery efforts from potentially 21 responsible parties when moneys from the Iowa tanks fund are 22 used during the cleanup of contamination at a tank site. The 23 bill directs the environmental protection commission to adopt 24 rules for program eligibility, investigating and settling 25 claims made against the fund, appeal procedures, community 26 remediation, prioritization of fund moneys, funding for tank 27 operator training, additional assessment and corrective action 28 arising out of a release at a site for which a no further 29 action certificate has been issued, and reimbursement for 30 the permanent closure of an underground storage tank system. 31 The bill provides that claims for releases filed on or after 32 January 1, 2023, are not eligible for payment from the Iowa 33 comprehensive petroleum underground storage tank fund. 34 The bill requires DALS to conduct a study regarding the 35 -16- LSB 1070HW (3) 89 js/ns 16/ 17
H.F. 2337 long-term future fuel testing needs in Iowa and how to maximize 1 and leverage the Iowa central fuel testing laboratory located 2 at Iowa central community college. The bill requires DALS to 3 submit a report regarding the study to the governor and general 4 assembly not later than December 15, 2022. 5 The bill includes transition provisions retaining the 6 effectiveness of rules, regulations, forms, orders, or 7 directives promulgated by the Iowa comprehensive petroleum 8 underground storage tank fund board until amended, repealed, 9 or supplemented by affirmative action of the department. Any 10 moneys credited to the Iowa comprehensive petroleum underground 11 storage tank fund on and after July 1, 2023, are transferred to 12 the department for deposit in the Iowa tanks fund. 13 The divisions of the bill establishing the Iowa tanks fund 14 and making conforming Code changes take effect July 1, 2023. 15 -17- LSB 1070HW (3) 89 js/ns 17/ 17
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