Bill Text: IA HF2381 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act modifying allocations from the statutory allocations fund, creating the Iowa tanks fund and Iowa tanks fund financing program, repealing a tax credit, making transfers and appropriations, and including transition and effective date provisions. (Formerly HSB 638) (See Cmte. Bill HF 2464)

Sponsorship: Committee Bill

Status: (Introduced - Dead) 2016-04-25 - Withdrawn. H.J. 746. [HF2381 Detail]

Download: Iowa-2015-HF2381-Introduced.html

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House File 2381 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON
                                     TRANSPORTATION

                                 (SUCCESSOR TO HSB 638)

                                      A BILL FOR

  1 An Act modifying allocations from the statutory allocations
  2    fund, creating the Iowa tanks fund and Iowa tanks fund
  3    financing program, repealing a tax credit, making transfers
  4    and appropriations, and including transition and effective
  5    date provisions.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5257HV (2) 86
    tr/tm

PAG LIN



  1  1                           DIVISION I
  1  2 UNDERGROUND STORAGE TANK FUND AND RENEWABLE FUEL INFRASTRUCTURE
  1  3 FUND ALLOCATIONS == UNDERGROUND STORAGE TANKS REMEDIAL ACTION
  1  4                      TAX CREDIT AND CLAIMS
  1  5    Section 1.  Section 321.145, subsection 2, paragraph a, Code
  1  6 2016, is amended by striking the paragraph.
  1  7    Sec. 2.  Section 321.145, subsection 2, paragraph b, Code
  1  8 2016, is amended to read as follows:
  1  9    b.  Moneys remaining after the operation of paragraph "a"
  1 10  shall be credited in order of priority as follows:
  1 11    (1)  An amount equal to four percent of the revenue from the
  1 12 operation of section 321.105A, subsection 2, shall be credited
  1 13 to the department, to be used for purposes of public transit
  1 14 assistance under chapter 324A.
  1 15    (2)  An amount equal to two dollars per year of license
  1 16 validity for each issued or renewed driver's license which is
  1 17 valid for the operation of a motorcycle shall be credited to
  1 18 the motorcycle rider education fund established under section
  1 19 321.179.
  1 20    (3)  The amounts required to be transferred pursuant to
  1 21 section 321.34 from revenues available under this subsection
  1 22 shall be transferred and credited as provided in section
  1 23 321.34, subsections 7, 10, 10A, 11, 11A, 11B, 13, 16, 17,
  1 24 18, 19, 20, 20A, 20B, 20C, 21, 22, 23, 24, 25, and 26 for the
  1 25 various purposes specified in those subsections.
  1 26    Sec. 3.  NEW SECTION.  427B.23  Repeal.
  1 27    This division is repealed July 1, 2016.
  1 28    Sec. 4.  NEW SECTION.  455G.22  Eligible claims and date.
  1 29    A claim for a release filed after December 31, 2016, shall
  1 30 not be eligible for payment from the Iowa comprehensive
  1 31 petroleum underground storage tank fund.
  1 32                           DIVISION II
  1 33 IOWA TANKS FUND FINANCING PROGRAM  == UNDERGROUND STORAGE TANK
  1 34                           FUND REPEAL
  1 35    Sec. 5.  NEW SECTION.  16.145  Definitions.
  2  1 As used in this part:
  2  2    1.  "Claimant" means an owner or operator who has received
  2  3 assistance under the Iowa tanks fund or its predecessor, the
  2  4 Iowa comprehensive petroleum underground storage tank fund
  2  5 created in chapter 455G, Code 2017.
  2  6    2.  "Costs" means all costs, charges, expenses, or other
  2  7 indebtedness incurred by a claimant and determined by the
  2  8 department as reasonable and necessary for carrying out
  2  9 all works and undertakings necessary or incidental to the
  2 10 accomplishment of any project.
  2 11    3.  "Department" means the department of natural resources
  2 12 created in section 455A.2.
  2 13    4.  "Director" means the director of the department of
  2 14 natural resources.
  2 15    5.  "Program" means the Iowa tanks fund financing program
  2 16 created pursuant to section 455B.472A.
  2 17    Sec. 6.  NEW SECTION.  16.146  Iowa tanks fund financing
  2 18 program.
  2 19    1.  The authority shall cooperate with the department in the
  2 20 creation, administration, and financing of the program.
  2 21    2.  The authority shall administer the Iowa tanks fund
  2 22 created in section 455B.472A to carry out the purposes of
  2 23 the program and shall manage the funding, administration,
  2 24 investment, restrictions, and disposition of the fund.
  2 25    3.  The authority shall work cooperatively with the director
  2 26 to distribute financial assistance for work conducted by
  2 27 eligible entities that comply with the requirements of the
  2 28 program. The department shall determine if work completed is
  2 29 eligible for reimbursement from the Iowa tanks fund created for
  2 30 the program.
  2 31    Sec. 7.  Section 68B.35, subsection 2, paragraph e, Code
  2 32 2016, is amended to read as follows:
  2 33    e.  Members of the state banking council, the ethics and
  2 34 campaign disclosure board, the credit union review board, the
  2 35 economic development authority, the employment appeal board,
  3  1 the environmental protection commission, the health facilities
  3  2 council, the Iowa finance authority, the Iowa public employees'
  3  3 retirement system investment board, the board of the Iowa
  3  4 lottery authority, the natural resource commission, the board
  3  5 of parole, the petroleum underground storage tank fund board,
  3  6  the public employment relations board, the state racing and
  3  7 gaming commission, the state board of regents, the tax review
  3  8 board, the transportation commission, the office of consumer
  3  9 advocate, the utilities board, the Iowa telecommunications
  3 10 and technology commission, and any full=time members of other
  3 11 boards and commissions as defined under section 7E.4 who
  3 12 receive an annual salary for their service on the board or
  3 13 commission. The Iowa ethics and campaign disclosure board
  3 14 shall conduct an annual review to determine if members of any
  3 15 other board, commission, or authority should file a statement
  3 16 and shall require the filing of a statement pursuant to rules
  3 17 adopted pursuant to chapter 17A.
  3 18    Sec. 8.  Section 159A.11, subsection 10, Code 2016, is
  3 19 amended by striking the subsection.
  3 20    Sec. 9.  Section 159A.13, subsection 6, Code 2016, is amended
  3 21 by striking the subsection.
  3 22    Sec. 10.  Section 159A.14, subsection 2, Code 2016, is
  3 23 amended to read as follows:
  3 24    2.  A person may apply to the department to receive financial
  3 25 incentives on a cost=share basis. The department shall forward
  3 26 the applications to the underground storage tank fund board as
  3 27 required by that board for evaluation and recommendation. The
  3 28 underground storage tank fund board may rank the applications
  3 29 with comments and shall forward them to the infrastructure
  3 30 board for approval or disapproval. The department shall award
  3 31 financial incentives on a cost=share basis to an eligible
  3 32 person whose application was approved by the infrastructure
  3 33 board.
  3 34    Sec. 11.  Section 159A.15, subsection 1, Code 2016, is
  3 35 amended to read as follows:
  4  1    1.  A person may apply to the department to receive financial
  4  2 incentives on a cost=share basis. The department shall forward
  4  3 the applications to the underground storage tank fund board as
  4  4 required by that board for evaluation and recommendation. The
  4  5 underground storage tank fund board may rank the applications
  4  6 with comments and shall forward them to the infrastructure
  4  7 board for approval or disapproval. The department shall award
  4  8 financial incentives on a cost=share basis to an eligible
  4  9 person whose application was approved by the infrastructure
  4 10 board.
  4 11    Sec. 12.  Section 323.1, subsection 16, Code 2016, is amended
  4 12 to read as follows:
  4 13    16.  "Storage tank" means a motor fuel storage tank as
  4 14 defined in section 214.1, including an underground storage tank
  4 15 subject to regulation under chapter 455G.
  4 16    Sec. 13.  Section 422.7, subsection 2, paragraph u, Code
  4 17 2016, is amended by striking the paragraph.
  4 18    Sec. 14.  Section 455B.174, subsection 4, paragraph d, Code
  4 19 2016, is amended to read as follows:
  4 20    d.  If a public water supply has a groundwater source
  4 21 that contains petroleum, a fraction of crude oil, or their
  4 22 degradation products, or is located in an area deemed by the
  4 23 department as likely to be contaminated by such materials, and
  4 24 after consultation with the public water supply system and
  4 25 consideration of all applicable rules relating to remediation,
  4 26 the department may require the public water supply system to
  4 27 replace that groundwater source in order to receive a permit
  4 28 to operate. The requirement to replace the source shall only
  4 29 be made by the department if the public water supply system
  4 30 is fully compensated for any additional design, construction,
  4 31 operation, and monitoring costs from the Iowa comprehensive
  4 32 petroleum underground storage tank tanks fund created by
  4 33 chapter 455G section 455B.472A or from any other funds that do
  4 34 not impose a financial obligation on the part of the public
  4 35 water supply system. Funds available to or provided by the
  5  1 public water supply system may be used for system improvements
  5  2 made in conjunction with replacement of the source. The
  5  3 department cannot require a public water supply system to
  5  4 replace its water source with a less reliable water source or
  5  5 with a source that does not meet federal primary, secondary, or
  5  6 other health=based standards unless treatment is provided to
  5  7 ensure that the drinking water meets these standards. Nothing
  5  8 in this paragraph shall affect the public water supply system's
  5  9 right to pursue recovery from a responsible party.
  5 10    Sec. 15.  Section 455B.471, Code 2016, is amended by adding
  5 11 the following new subsections:
  5 12    NEW SUBSECTION.  01.  "Authority" means the Iowa finance
  5 13 authority.
  5 14    NEW SUBSECTION.  1A.  "Claimant" means an owner or operator
  5 15 who has received assistance under the Iowa tanks fund or its
  5 16 predecessor, the Iowa comprehensive petroleum underground
  5 17 storage tank fund created in chapter 455G, Code 2017.
  5 18    NEW SUBSECTION.  2A.  "Costs" means all costs, charges,
  5 19 expenses, or other indebtedness incurred by a claimant and
  5 20 determined by the department as reasonable and necessary for
  5 21 carrying out all works and undertakings necessary or incidental
  5 22 to the accomplishment of any project.
  5 23    NEW SUBSECTION.  3A.  "Insurance" means any form of financial
  5 24 assistance or showing of financial responsibility sufficient
  5 25 to comply with the federal Resource Conservation and Recovery
  5 26 Act, 42 U.S.C. {6901 et seq., or the department's underground
  5 27 storage tank financial responsibility rules.
  5 28    NEW SUBSECTION.  7A.  "Potentially responsible party" means a
  5 29 person who may be responsible or liable for a release for which
  5 30 the fund has made payments for corrective action or third=party
  5 31 liability.
  5 32    NEW SUBSECTION.  9A.  "Tank" means an underground storage
  5 33 tank for which proof of financial responsibility is, or on a
  5 34 date definite will be, required to be maintained pursuant to
  5 35 the federal Resource Conservation and Recovery Act and the
  6  1 regulations from time=to=time adopted pursuant to that Act or
  6  2 successor Acts or amendments.
  6  3    NEW SUBSECTION.  10A.  "Third=party liability" means both of
  6  4 the following:
  6  5    a.  Property damage including physical injury to tangible
  6  6 property, but not including loss of use, other than costs to
  6  7 remediate.
  6  8    b.  Bodily injury including sickness, bodily injury, illness,
  6  9 or death.
  6 10    Sec. 16.  Section 455B.471, subsection 1, Code 2016, is
  6 11 amended by striking the subsection.
  6 12    Sec. 17.  Section 455B.471, subsection 3, Code 2016, is
  6 13 amended to read as follows:
  6 14    3.  "Fund" means the Iowa comprehensive petroleum underground
  6 15 storage tank tanks fund created in section 455B.472A.
  6 16    Sec. 18.  NEW SECTION.  455B.472A  Iowa tanks fund financing
  6 17 program == fund created.
  6 18    1.  The department, in cooperation with the authority,
  6 19 shall establish and administer an Iowa tanks fund financing
  6 20 program for the purpose of reimbursing underground storage tank
  6 21 owners for all or part of the costs of corrective action for
  6 22 previously unknown petroleum releases. The department and the
  6 23 authority may together enter into and provide any agreements,
  6 24 documents, instruments, certificates, data, or information
  6 25 necessary in connection with the operation, administration,
  6 26 and financing of the program consistent with this part, the
  6 27 federal Resource Conservation and Recovery Act, 42 U.S.C.
  6 28 {6901 et seq., the rules of the commission, the rules of the
  6 29 authority, and other applicable federal and state law. The
  6 30 authority and the department may act to conform the program to
  6 31 the applicable guidance and regulations adopted by the United
  6 32 States environmental protection agency.
  6 33    2.  An Iowa tanks fund is created in the state treasury
  6 34 under the control of the authority and consisting of moneys
  6 35 appropriated or transferred to the fund, cost recovery
  7  1 enforcement moneys collected pursuant to section 455B.472B,
  7  2 civil enforcement moneys recovered pursuant to section
  7  3 455B.477, interest attributable to moneys in the fund, moneys
  7  4 in the form of a devise, gift, bequest, donation, federal or
  7  5 other grant, reimbursement, repayment, judgment, or payment
  7  6 from any source intended to be used for the purposes of the
  7  7 fund, all receipts by the fund, and any other moneys credited
  7  8 to the fund from any public or private source. Notwithstanding
  7  9 section 12C.7, subsection 2, interest or earnings on moneys in
  7 10 the Iowa tanks fund shall be credited to the Iowa tanks fund.
  7 11    3.  Moneys in the Iowa tanks fund shall be used to reimburse
  7 12 tank owners for all or part of the costs of a corrective action
  7 13 for a petroleum release, and for administrative costs of the
  7 14 department.
  7 15    4.  Moneys in the Iowa tanks fund are not considered part of
  7 16 the general fund of the state, are not subject to appropriation
  7 17 for any other purpose by the general assembly, and the balance
  7 18 of the Iowa tanks fund shall not be considered part of the
  7 19 balance of the general fund of the state. The fund is a
  7 20 separate dedicated fund under the administration and control of
  7 21 the authority as provided under section 16.146.
  7 22    5.  The state, the general fund of the state, and all other
  7 23 funds of the state other than the Iowa tanks fund are not
  7 24 liable for a claim or cause of action in connection with a tank
  7 25 not owned or operated by the state, or agency of the state.
  7 26 All expenses incurred by the fund are payable solely from the
  7 27 fund and no liability or obligation is imposed upon the state.
  7 28 The liability of the fund is limited to the extent of coverage
  7 29 provided by the applicable account within the fund under which
  7 30 a claim is submitted, subject to the terms and conditions of
  7 31 that coverage. The liability of the fund is further limited by
  7 32 the moneys made available to the fund, and no remedy shall be
  7 33 ordered which would require the fund to exceed its then current
  7 34 funding limitations to satisfy an award or which would restrict
  7 35 the availability of moneys for higher priority sites. The
  8  1 state is not liable for a claim presented against the fund.
  8  2    6.  The department shall prioritize uses of the moneys in the
  8  3 fund based upon rules adopted by the commission in cooperation
  8  4 with the authority. Department discretion for use of the
  8  5 moneys in the fund shall not be subject to section 455B.478.
  8  6    7.  a.  For the fiscal year beginning July 1, 2017, and each
  8  7 fiscal year thereafter, there is appropriated from the Iowa
  8  8 tanks fund to the department two hundred thousand dollars to
  8  9 support the administration of the fund.
  8 10    b.  Notwithstanding section 8.33, moneys appropriated in this
  8 11 subsection that remain unencumbered or unobligated at the close
  8 12 of the fiscal year shall not revert but shall remain available
  8 13 for expenditure for the purposes designated until the close of
  8 14 the succeeding fiscal year.
  8 15    c.  This subsection is repealed July 1, 2022.
  8 16    Sec. 19.  NEW SECTION.  455B.472B  Cost recovery enforcement.
  8 17    1.  Full recovery sought from owner.  The department may seek
  8 18 full recovery from the owner, operator, or other potentially
  8 19 responsible party liable for the released petroleum which is
  8 20 the subject of a corrective action, for which the Iowa tanks
  8 21 fund expends moneys, or for which the former Iowa comprehensive
  8 22 petroleum underground storage tank fund established pursuant
  8 23 to section 455G.3, Code 2017, expended moneys, for corrective
  8 24 action or third=party liability, and for all other costs,
  8 25 including reasonable attorney fees and costs of litigation for
  8 26 which moneys are expended by the fund in connection with the
  8 27 release. When federal cleanup funds are recovered, the federal
  8 28 cleanup funds shall be used solely for the purpose of future
  8 29 cleanup activities.
  8 30    2.  Limitation of liability of owner or operator.  Except
  8 31 as provided in subsection 3, the department shall not seek
  8 32 recovery for expenses in connection with corrective action for
  8 33 a release from an owner or operator eligible for assistance
  8 34 under the Iowa tanks fund except for any unpaid portion of the
  8 35 deductible or copayment. This section does not affect any
  9  1 authorization of the department to impose or collect civil or
  9  2 administrative fines or penalties or fees. The fund shall not
  9  3 be held liable for any third=party liability.
  9  4    3.  Owner or operator not in compliance, subject to full
  9  5 and total cost recovery.  Notwithstanding subsection 2, the
  9  6 liability of an owner or operator shall be the full and total
  9  7 costs of corrective action and bodily injury or property damage
  9  8 to third parties, as specified in subsection 1, if the owner or
  9  9 operator has not complied with the financial responsibility or
  9 10 other underground storage tank rules of the department or with
  9 11 this part and rules adopted under this part.
  9 12    4.  Treble damages for certain violations.
  9 13    a.  Notwithstanding subsections 2 and 3, the owner or
  9 14 operator, or both, of a tank are liable to the Iowa tanks fund
  9 15 for punitive damages in an amount equal to three times the
  9 16 amount of any cost incurred or moneys expended by the fund as a
  9 17 result of a release of petroleum from the tank if the owner or
  9 18 operator did any of the following:
  9 19    (1)  Failed, without sufficient cause, to respond to a
  9 20 release of petroleum from the tank upon, or in accordance with,
  9 21 a notice issued by the director of the department.
  9 22    (2)  After May 5, 1989, failed to perform any of the
  9 23 following:
  9 24    (a)  Failed to register the tank, which was known to exist or
  9 25 reasonably should have been known to exist.
  9 26    (b)  Intentionally failed to report a known release.
  9 27    b.  The punitive damages imposed under this subsection are in
  9 28 addition to any costs or expenditures recovered from the owner
  9 29 or operator pursuant to this part and in addition to any other
  9 30 penalty or relief provided by this part or any other law.
  9 31    c.  However, the state, a city, county, or other political
  9 32 subdivision shall not be liable for punitive damages.
  9 33    5.  Lien on tank site.  Any amount for which an owner
  9 34 or operator is liable to the Iowa tanks fund, if not paid
  9 35 when due, by statute, rule, or contract, or determination of
 10  1 liability by the department after hearing, shall constitute
 10  2 a lien upon the real property where the tank, which was the
 10  3 subject of corrective action, is situated, and the liability
 10  4 shall be collected in the same manner as the environmental
 10  5 protection charge pursuant to section 424.11, Code 2016.
 10  6    6.  Joinder of parties.  The department has standing in any
 10  7 case or contested action related to the Iowa tanks fund or a
 10  8 tank to assert any claim that the department may have regarding
 10  9 the tank at issue in the case or contested action. Upon
 10 10 motion and sufficient showing by a party to a cost recovery or
 10 11 subrogation action provided for under this section, the court
 10 12 or the administrative law judge shall join to the action any
 10 13 potentially responsible party who may be liable for costs and
 10 14 expenditures of the type recoverable pursuant to this section.
 10 15    7.  Strict liability.  The standard of liability for a
 10 16 release of petroleum or other regulated substance is strict
 10 17 liability.
 10 18    8.  Third=party contracts not binding on department
 10 19 == proceedings against responsible party.  An insurance,
 10 20 indemnification, hold harmless, conveyance, or similar
 10 21 risk=sharing or risk=shifting agreement shall not be effective
 10 22 to transfer any liability for costs recoverable under this
 10 23 section. The department may proceed directly against the
 10 24 owner or operator or other allegedly responsible party.
 10 25 This section does not bar any agreement to insure, hold
 10 26 harmless, or indemnify a party to the agreement for any costs
 10 27 or expenditures under this part, and does not modify rights
 10 28 between the parties to an agreement, except to the extent the
 10 29 agreement shifts liability to an owner or operator eligible
 10 30 for assistance under the Iowa tanks fund for any damages or
 10 31 other expenses in connection with a corrective action for which
 10 32 another potentially responsible party is or may be liable. Any
 10 33 such provision is null and void and of no force or effect.
 10 34    9.  Later proceedings permitted against other parties.  The
 10 35 entry of judgment against a party to the action does not bar
 11  1 a future action by the department against another person who
 11  2 is later alleged to be or discovered to be liable for costs
 11  3 and expenditures paid by the Iowa tanks fund. Notwithstanding
 11  4 section 668.5, a potentially responsible party shall not seek
 11  5 contribution or any other recovery from an owner or operator
 11  6 eligible for assistance under the fund for damages or other
 11  7 expenses in connection with corrective action for a release for
 11  8 which the potentially responsible party is or may be liable.
 11  9 Subsequent successful proceedings against another party shall
 11 10 not modify or reduce the liability of a party against whom
 11 11 judgment has been previously entered.
 11 12    10.  Claims against potentially responsible parties.
 11 13    a.  Upon payment by the Iowa tanks fund for corrective
 11 14 action or third=party liability pursuant to this part, the
 11 15 rights of the claimant to recover payment from any potentially
 11 16 responsible party are assumed by the department to the extent
 11 17 paid by the fund. A claimant is precluded from receiving
 11 18 double compensation for the same injury.
 11 19    b.  In an action brought pursuant to this part seeking
 11 20 damages for corrective action or third=party liability, the
 11 21 court shall permit evidence and argument as to the replacement
 11 22 or indemnification of actual economic losses incurred or to be
 11 23 incurred in the future by the claimant by reason of insurance
 11 24 benefits, governmental benefits or programs, or from any other
 11 25 source.
 11 26    c.  A claimant may elect to permit the department to
 11 27 pursue the claimant's cause of action for any injury not
 11 28 compensated by the Iowa tanks fund against any potentially
 11 29 responsible party, provided the attorney general determines
 11 30 such representation would not be a conflict of interest. If
 11 31 a claimant so elects, the department's litigation expenses
 11 32 shall be shared on a pro rata basis with the claimant, but the
 11 33 claimant's share of litigation expenses is payable exclusively
 11 34 from any share of the settlement or judgment payable to the
 11 35 claimant.
 12  1    11.  Exclusion of punitive damages.  The Iowa tanks fund
 12  2 shall not be liable in any case for punitive damages.
 12  3    Sec. 20.  Section 455B.474, subsection 1, paragraph a,
 12  4 subparagraph (6), subparagraph divisions (g), (i), and (j),
 12  5 Code 2016, are amended to read as follows:
 12  6    (g)  An owner or operator may elect to proceed with
 12  7 additional corrective action on the site. However, any
 12  8 action taken in addition to that required pursuant to this
 12  9 subparagraph (6), shall be solely at the expense of the owner
 12 10 or operator and shall not be considered corrective action
 12 11 for purposes of section 455G.9 455B.472A, unless otherwise
 12 12 previously agreed to by the board department and the owner or
 12 13 operator pursuant to section 455G.9, subsection 7 455B.472A.
 12 14 Corrective action taken by an owner or operator due to the
 12 15 department's failure to meet the time requirements provided in
 12 16 subparagraph division (e) shall be considered corrective action
 12 17 for purposes of section 455G.9 455B.472A.
 12 18    (i)  Replacement or upgrade of a tank on a site classified
 12 19 as a high or low risk site shall be equipped with a secondary
 12 20 containment system with monitoring of the space between the
 12 21 primary and secondary containment structures or other board
 12 22 approved department=approved tank system or methodology.
 12 23    (j)  The commission and the board department shall cooperate
 12 24 to ensure that remedial measures required by the corrective
 12 25 action rules adopted pursuant to this subparagraph (6) are
 12 26 reasonably cost=effective and shall, to the fullest extent
 12 27 possible, avoid duplicating and conflicting requirements.
 12 28    Sec. 21.  Section 455B.474, subsection 9, paragraph d, Code
 12 29 2016, is amended to read as follows:
 12 30    d.  The certification of groundwater professionals shall not
 12 31 impose liability on the board, the department, or the fund for
 12 32 any claim or cause of action of any nature, based on the action
 12 33 or inaction of a groundwater professional certified pursuant
 12 34 to this subsection.
 12 35    Sec. 22.  Section 455B.474, Code 2016, is amended by adding
 13  1 the following new subsection:
 13  2    NEW SUBSECTION.  11.  Prioritization for use of moneys from
 13  3 the Iowa tanks fund for corrective action to address releases
 13  4 from petroleum underground storage tanks.
 13  5    Sec. 23.  Section 455B.475, Code 2016, is amended by adding
 13  6 the following new subsections:
 13  7    NEW SUBSECTION.  4.  Assure that in combination with existing
 13  8 state statutes and rules governing underground storage tanks,
 13  9 the state will be, and continue to be, recognized by the
 13 10 federal government as having an "approved state account" under
 13 11 the federal Resource Conservation and Recovery Act, 42 U.S.C.
 13 12 {6921=6934, especially by compliance with the Act's subtitle I
 13 13 financial responsibility requirements as enacted in the federal
 13 14 Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C.
 13 15 {9601 et seq., and the financial responsibility regulations
 13 16 adopted by the United States environmental protection agency at
 13 17 40 C.F.R. pts. 280 and 281. Whenever possible, this part shall
 13 18 be interpreted to further the purposes of, and to comply and
 13 19 not to conflict with, such federal requirements.
 13 20    NEW SUBSECTION.  5.  Coordinate with the Iowa finance
 13 21 authority to process, review, and pay claims under the Iowa
 13 22 tanks fund financing program established in section 455B.472A.
 13 23    Sec. 24.  Section 455B.477, subsection 7, Code 2016, is
 13 24 amended to read as follows:
 13 25    7.  The civil penalties or other damages or moneys recovered
 13 26 by the state or the petroleum underground storage tank fund
 13 27  in connection with a petroleum underground storage tank under
 13 28 this part of this division or chapter 455G shall be credited
 13 29 to the Iowa tanks fund created in section 455G.3 and allocated
 13 30 between fund accounts according to the fund budget 455B.472A.
 13 31 Any federal moneys, including but not limited to federal
 13 32 underground storage tank trust fund moneys, received by the
 13 33 state or the department of natural resources in connection
 13 34 with a release occurring on or after May 5, 1989, or received
 13 35 generally for underground storage tank programs on or after
 14  1 May 5, 1989, shall be credited to the fund created in section
 14  2 455G.3 and allocated between fund accounts according to the
 14  3 fund budget, unless such use would be contrary to federal
 14  4 law. The department shall cooperate with the board of the
 14  5 Iowa comprehensive petroleum underground storage tank fund to
 14  6 maximize the state's eligibility for and receipt of federal
 14  7 funds for underground storage tank related purposes 455B.472A.
 14  8    Sec. 25.  Section 455B.478, Code 2016, is amended to read as
 14  9 follows:
 14 10    455B.478  Judicial review.
 14 11    Except as provided in section 455B.477, subsection 5, and
 14 12 section 455B.472A, judicial review of an order or other action
 14 13 of the commission or the director may be sought in accordance
 14 14 with chapter 17A.  Notwithstanding chapter 17A, the Iowa
 14 15 administrative procedure Act, petitions for judicial review
 14 16 may be filed in the district court of the county in which the
 14 17 alleged offense was committed or the final order was entered.
 14 18    Sec. 26.  Section 455E.11, subsection 2, paragraph d,
 14 19 subparagraph (3), Code 2016, is amended by striking the
 14 20 subparagraph.
 14 21    Sec. 27.  NEW SECTION.  455G.22A  Future repeal.
 14 22    This subchapter is repealed July 1, 2017.
 14 23    Sec. 28.  Section 455I.2, subsection 5, paragraph a, Code
 14 24 2016, is amended to read as follows:
 14 25    a.  A federal or state program that is subject to the
 14 26 jurisdiction of an agency, including but not limited to
 14 27 programs established by chapters chapter 455B and 455G section
 14 28 455B.472A, corrective or response actions pursuant to 42 U.S.C.
 14 29 {6901 et seq., and remedial actions under 42 U.S.C. {9601 et
 14 30 seq.
 14 31    Sec. 29.  TRANSITION PROVISIONS.
 14 32    1.  Upon repeal of chapter 455G, subchapter I, and the
 14 33 creation of the Iowa tanks fund pursuant to section 455B.472A,
 14 34 as enacted in this Act, all moneys in all funds administered by
 14 35 the Iowa comprehensive petroleum underground storage tank fund
 15  1 board are transferred to the Iowa finance authority for deposit
 15  2 in the Iowa tanks fund. Any moneys credited to any fund
 15  3 administered by the Iowa comprehensive petroleum underground
 15  4 storage tank fund board after July 1, 2017, are transferred to
 15  5 the Iowa finance authority for deposit in the Iowa tanks fund.
 15  6    2.  Any rule, regulation, form, order, or directive
 15  7 promulgated by the Iowa comprehensive petroleum underground
 15  8 storage tank fund board as required to administer and enforce
 15  9 the provisions relating to the Iowa comprehensive petroleum
 15 10 underground storage tank fund shall continue in full force and
 15 11 effect until amended, repealed, or supplemented by affirmative
 15 12 action of the department of natural resources and the Iowa
 15 13 finance authority.
 15 14    3.  The Iowa comprehensive petroleum underground storage
 15 15 tank fund board shall administratively close or terminate
 15 16 any remaining liabilities, contracts, outstanding claims,
 15 17 payments, or other obligations for open comprehensive petroleum
 15 18 underground storage tank fund claims in existence on June 30,
 15 19 2017.
 15 20    Sec. 30.  EFFECTIVE DATE AND IMPLEMENTATION.  This division
 15 21 of this Act shall take effect July 1, 2017, except that the
 15 22 department of natural resources and the Iowa finance authority
 15 23 may begin implementation prior to July 1, 2017, to the
 15 24 extent necessary to transition to full implementation of the
 15 25 provisions relating to the Iowa tanks fund and repeal of the
 15 26 Iowa comprehensive petroleum underground storage tank fund.
 15 27                           EXPLANATION
 15 28 The inclusion of this explanation does not constitute agreement with
 15 29 the explanation's substance by the members of the general assembly.
 15 30    This bill creates the Iowa tanks fund within the Iowa
 15 31 finance authority (authority), and authorizes the authority to
 15 32 cooperate with the department of natural resources to create,
 15 33 administer, and finance the fund.
 15 34    Under current law, funds collected through the environmental
 15 35 protection charge created in Code chapter 424 are deposited
 16  1 into the statutory allocations fund of the department of
 16  2 transportation and allocated to the Iowa comprehensive
 16  3 petroleum underground storage tank fund and the renewable fuel
 16  4 infrastructure fund. The environmental protection charge
 16  5 expires on June 30, 2016. The bill eliminates transfers from
 16  6 the statutory allocations fund to the Iowa comprehensive
 16  7 petroleum underground storage tank fund and the renewable fuel
 16  8 infrastructure fund effective July 1, 2016.
 16  9    The bill amends the Code in several instances to update the
 16 10 name of the fund used to compensate the replacement of public
 16 11 water supply wells contaminated with petroleum from the Iowa
 16 12 comprehensive petroleum underground storage tank fund to the
 16 13 Iowa tanks fund.
 16 14    The bill creates the Iowa tanks fund financing program
 16 15 within the department of natural resources to be cooperatively
 16 16 administered with the authority. For the fiscal year beginning
 16 17 July 1, 2017, and each fiscal year thereafter, the bill
 16 18 appropriates from the Iowa tanks fund to the department
 16 19 $200,000 for purposes of supporting the department's protection
 16 20 of the state's groundwater from petroleum releases from leaking
 16 21 underground storage tanks. This appropriation sunsets after
 16 22 five years. The bill allows for cost recovery efforts from
 16 23 potentially liable parties when moneys from the Iowa tanks fund
 16 24 are used during the cleanup of contamination at a tank site.
 16 25    The bill directs the environmental protection commission
 16 26 to adopt rules for prioritizing the use of moneys and
 16 27 eligible expenses from the Iowa tanks fund. The bill includes
 16 28 provisions designed to assure that the Iowa tanks fund will
 16 29 be recognized by the federal government as an approved state
 16 30 account, as the Iowa comprehensive petroleum underground
 16 31 storage tank fund is currently.
 16 32    The bill states that the discretion of the department of
 16 33 natural resources regarding the prioritization of the use of
 16 34 funds in the Iowa tanks fund is not subject to judicial review.
 16 35    The bill repeals the existing Iowa comprehensive petroleum
 17  1 underground storage tank fund and eliminates the Iowa
 17  2 comprehensive petroleum underground storage tank fund board
 17  3 as of July 1, 2017. The bill repeals a local option tax
 17  4 credit available to those who remediate underground storage
 17  5 tanks as of July 1, 2016. The bill provides that claims for
 17  6 releases filed after December 31, 2016, shall not be eligible
 17  7 for payment from the Iowa comprehensive petroleum underground
 17  8 storage tank fund.
 17  9    The bill includes transition provisions providing for
 17 10 the effectiveness of rules, regulations, forms, orders, or
 17 11 directives promulgated by the Iowa comprehensive petroleum
 17 12 underground storage tank fund board until amended, repealed, or
 17 13 supplemented by affirmative action of the department of natural
 17 14 resources and the Iowa finance authority.
 17 15    The portions of the bill related to the transfers from the
 17 16 statutory allocations fund, setting a cut=off date for claims
 17 17 for releases from the Iowa comprehensive petroleum underground
 17 18 storage tank fund, and repealing the tax credit are effective
 17 19 July 1, 2016. The remaining portions of the bill are effective
 17 20 July 1, 2017, except that the department of natural resources
 17 21 and the Iowa finance authority may begin implementation prior
 17 22 to that date.
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