Senate Study Bill 3062 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED UNDERGROUND STORAGE TANK FUND BOARD BILL) A BILL FOR An Act relating to underground storage tanks, including by 1 creating the Iowa tanks fund and Iowa tanks fund financing 2 program, repealing the Iowa comprehensive petroleum 3 underground storage tank fund, and eliminating the Iowa 4 comprehensive petroleum underground storage tank fund board, 5 and including effective date and transition provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5194DP (6) 88 js/ns

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

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

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

S.F. _____ H.F. _____ the purposes of the program and shall manage the revenue, 1 administration, restrictions, and disposition of the fund. 2 7. Moneys in the fund shall be used to reimburse tank owners 3 for all or part of the costs of a corrective action for a 4 petroleum release and for permanent closure of an underground 5 storage tank system under the program, for tank operator 6 training, and for administrative costs of the department 7 associated with the program. 8 8. Moneys in the fund are not considered part of the general 9 fund of the state and are not subject to appropriation for any 10 other purpose by the general assembly. The fund is a separate 11 dedicated fund under the administration and control of the 12 department. 13 9. Payments for reimbursement or other costs relating to any 14 claim or cause of action in connection with a tank not owned or 15 operated by the state or an agency of the state shall be made 16 solely from the fund and no liability is otherwise imposed upon 17 the state. Moneys from the fund are limited to the extent of 18 coverage provided by the applicable account within the fund 19 under which a claim is submitted, subject to the terms and 20 conditions of that coverage. A court, an administrative law 21 judge, the department, or the commission shall not order or 22 approve a remedy that would require the fund to exceed the 23 fund’s then current funding limitations to satisfy an award 24 or that would restrict the availability of moneys for higher 25 priority sites. The state is not otherwise liable for a claim 26 related to the fund and moneys from the general fund shall not 27 be used to pay for reimbursement or other costs relating to any 28 claim or cause of action in connection with a tank not owned or 29 operated by the state or an agency of the state. 30 Sec. 6. NEW SECTION . 455B.472B Cost recovery enforcement. 31 1. Full recovery sought by department. The department 32 may seek full recovery from an owner, operator, or other 33 potentially responsible party liable for a release that is the 34 subject of a corrective action for which moneys from the fund 35 -4- LSB 5194DP (6) 88 js/ns 4/ 15

S.F. _____ H.F. _____ are expended, or for which moneys from the Iowa comprehensive 1 petroleum underground storage tank fund created in section 2 455G.3, Code 2019, were expended, including for third-party 3 liability and for all other costs. If federal cleanup moneys 4 are recovered, the federal cleanup moneys shall be used solely 5 for the purpose of future cleanup activities. 6 2. Limitation of liability of owner or operator. Except 7 as provided in subsection 3, the department shall not seek 8 recovery for expenses in connection with corrective action for 9 a release from an owner or operator eligible for assistance 10 under the program, except for any unpaid portion of the 11 deductible or copayment. This section does not affect any 12 authorization of the department to impose or collect civil or 13 administrative fines, penalties, or fees. Moneys from the fund 14 shall not be used to pay for any third-party liability. 15 3. Owner or operator not in compliance. Notwithstanding 16 subsection 2, the liability of an owner or operator shall be 17 the full and total costs of corrective action and bodily injury 18 or property damage to third parties, as specified in subsection 19 1, if the owner or operator has not complied with the financial 20 responsibility or other underground storage tank rules of the 21 department or with this part or rules adopted under this part. 22 4. Lien on tank site. Any amount for which an owner or 23 operator is required to pay to the fund by statute, rule, 24 contract, or determination of liability by the department after 25 hearing, if not paid when due, shall constitute a lien upon the 26 real property where the tank that was the subject of corrective 27 action is located, and the payment shall be collected in the 28 same manner as the environmental protection charge pursuant to 29 section 424.11, Code 2016. 30 5. Joinder of parties. The department has standing in 31 any case or contested action related to the fund or a tank 32 to assert any claim that the department may have regarding 33 the tank at issue in the case or contested action. Upon 34 motion and sufficient showing by a party to a cost recovery or 35 -5- LSB 5194DP (6) 88 js/ns 5/ 15

S.F. _____ H.F. _____ subrogation action provided for under this section, the court 1 or the administrative law judge shall join to the action any 2 potentially responsible party who may be liable for costs and 3 expenditures of the type recoverable pursuant to this section. 4 6. Third-party contracts. An insurance, indemnification, 5 hold-harmless, conveyance, or similar risk-sharing or 6 risk-shifting agreement shall not be effective to transfer 7 any liability for costs recoverable under this section. The 8 department may proceed directly against the owner, operator, or 9 other potentially responsible party. This section does not bar 10 any agreement to insure, hold harmless, or indemnify a party to 11 the agreement for any costs or expenditures under this part, 12 and does not modify rights between the parties to an agreement, 13 except to the extent the agreement shifts liability to an owner 14 or operator eligible for assistance under the program for any 15 damages or other costs in connection with a corrective action 16 for which another potentially responsible party is or may be 17 liable. Any such provision is void and of no further force and 18 effect. 19 7. Later proceedings permitted against other parties. The 20 entry of judgment against a party to the action does not 21 bar a future action by the department against another person 22 who is later alleged to be or discovered to be liable for 23 costs and expenditures paid from the fund. Notwithstanding 24 section 668.5, a potentially responsible party shall not seek 25 contribution or any other recovery from an owner or operator 26 eligible for assistance under the program for damages or other 27 costs in connection with corrective action for a release for 28 which the potentially responsible party is or may be liable. 29 Subsequent successful proceedings against another party shall 30 not modify or reduce the liability of a party against whom 31 judgment has been previously entered. 32 8. Claims against potentially responsible parties. 33 a. Upon payment from the fund for corrective action or 34 third-party liability pursuant to this part, the rights of the 35 -6- LSB 5194DP (6) 88 js/ns 6/ 15

S.F. _____ H.F. _____ claimant to recover payment from any potentially responsible 1 party are assumed by the department to the extent paid from the 2 fund. A claimant shall not receive double compensation for the 3 same injury. 4 b. In an action brought pursuant to this part seeking 5 damages for corrective action or third-party liability, the 6 court shall allow evidence and argument as to the replacement 7 or indemnification of actual economic losses incurred or to be 8 incurred in the future by the claimant by reason of insurance 9 benefits, governmental benefits or programs, or other sources. 10 c. A claimant may elect to authorize the department 11 to pursue the claimant’s cause of action for any injury 12 not compensated from the fund against any potentially 13 responsible party, provided the attorney general determines 14 such representation would not be a conflict of interest. If 15 a claimant so elects, the department’s litigation expenses 16 shall be shared on a pro rata basis with the claimant, but the 17 claimant’s share of litigation expenses is payable exclusively 18 from any share of the settlement or judgment payable to the 19 claimant. 20 9. Exclusion of punitive damages. Moneys from the fund 21 shall not be used to pay punitive damages. 22 Sec. 7. NEW SECTION . 455B.472C Discretionary rulemaking. 23 1. The commission may adopt rules pursuant to chapter 24 17A conditioning receipt of moneys from the fund to those 25 petroleum-contaminated properties that present a higher degree 26 of risk to the public health and safety or the environment and 27 providing for denial of moneys from the fund to a person who 28 did not make a good-faith attempt to comply with this part. 29 This subsection does not confer a legal right to an owner of a 30 petroleum-contaminated property, or an owner or operator of an 31 underground storage tank located on the property, for receipt 32 of moneys under this part. 33 2. The commission may adopt rules pursuant to chapter 34 17A providing for the transfer of all or a portion of the 35 -7- LSB 5194DP (6) 88 js/ns 7/ 15

S.F. _____ H.F. _____ liabilities relating to the fund. Notwithstanding any other 1 provision to the contrary, the department, upon such transfer, 2 shall not maintain any duty to reimburse claimants for those 3 liabilities transferred. 4 Sec. 8. Section 455B.474, subsection 1, paragraph a, 5 subparagraph (6), subparagraph divisions (g), (i), and (j), 6 Code 2020, are amended to read as follows: 7 (g) An owner or operator may elect to proceed with 8 additional corrective action on the site. However, any 9 action taken in addition to that required pursuant to this 10 subparagraph (6), shall be solely at the expense of the owner 11 or operator and shall not be considered corrective action 12 for purposes of section 455G.9 455B.472A , unless otherwise 13 previously agreed to by the board department and the owner or 14 operator pursuant to section 455G.9, subsection 7 455B.472A . 15 Corrective action taken by an owner or operator due to the 16 department’s failure to meet the time requirements provided in 17 subparagraph division (e) shall be considered corrective action 18 for purposes of section 455G.9 455B.472A . 19 (i) Replacement or upgrade of a tank on a site classified 20 as a high or low risk site shall be equipped with a secondary 21 containment system with monitoring of the space between the 22 primary and secondary containment structures or other board 23 approved tank system or methodology approved by the department . 24 (j) The commission and the board department shall cooperate 25 to ensure that remedial measures required by the corrective 26 action rules adopted pursuant to this subparagraph (6) are 27 reasonably cost-effective and shall, to the fullest extent 28 possible, avoid duplicating and conflicting requirements. 29 Sec. 9. Section 455B.474, subsection 2, unnumbered 30 paragraph 1, Code 2020, is amended to read as follows: 31 The maintenance of evidence of financial responsibility as 32 the director determines to be feasible and necessary for taking 33 corrective action and for compensating third parties for bodily 34 injury and property damage caused by release of a regulated 35 -8- LSB 5194DP (6) 88 js/ns 8/ 15

S.F. _____ H.F. _____ substance from an underground storage a tank. 1 Sec. 10. Section 455B.474, subsection 9, paragraph d, Code 2 2020, is amended to read as follows: 3 d. The certification of groundwater professionals shall not 4 impose liability on the board, the department , or the fund for 5 any claim or cause of action of any nature, based on the action 6 or inaction of a groundwater professional certified pursuant 7 to this subsection . 8 Sec. 11. Section 455B.474, Code 2020, is amended by adding 9 the following new subsection: 10 NEW SUBSECTION . 11. Department practices and procedures 11 for implementing and administering the Iowa tanks fund 12 financing program. The rules shall include but are not limited 13 to requirements for program eligibility, investigating and 14 settling claims made against the fund, appeal procedures, 15 community remediation, prioritization of fund moneys, 16 funding for tank operator training, additional assessment 17 and corrective action arising out of releases at sites for 18 which a certificate of no further action has been issued, and 19 reimbursement for the permanent closure of an underground 20 storage tank system. 21 Sec. 12. Section 455B.477, subsection 7, Code 2020, is 22 amended to read as follows: 23 7. The civil penalties or other damages or moneys recovered 24 by the state or the petroleum underground storage tank fund 25 in connection with a petroleum underground storage tank under 26 this part of this division or chapter 455G shall be credited 27 to the fund created in section 455G.3 and allocated between 28 fund accounts according to the fund budget. Any federal 29 moneys, including but not limited to federal underground 30 storage tank trust fund moneys, received by the state or the 31 department of natural resources in connection with a release 32 occurring on or after May 5, 1989, or received generally for 33 underground storage tank programs on or after May 5, 1989, 34 shall be credited to the fund created in section 455G.3 and 35 -9- LSB 5194DP (6) 88 js/ns 9/ 15

S.F. _____ H.F. _____ allocated between fund accounts according to the fund budget 1 455B.472A , unless such use would be contrary to federal law. 2 The department shall cooperate with the board of the Iowa 3 comprehensive petroleum underground storage tank fund to 4 maximize the state’s eligibility for and receipt of federal 5 funds for underground storage tank related purposes. 6 Sec. 13. EFFECTIVE DATE. This division of this Act takes 7 effect July 1, 2021. 8 DIVISION II 9 CONFORMING CHANGES 10 Sec. 14. Section 68B.35, subsection 2, paragraph e, Code 11 2020, is amended to read as follows: 12 e. Members of the state banking council, the Iowa ethics 13 and campaign disclosure board, the credit union review board, 14 the economic development authority, the employment appeal 15 board, the environmental protection commission, the health 16 facilities council, the Iowa finance authority, the Iowa public 17 employees’ retirement system investment board, the board of 18 the Iowa lottery authority, the natural resource commission, 19 the board of parole, the petroleum underground storage tank 20 fund board, the public employment relations board, the state 21 racing and gaming commission, the state board of regents, the 22 transportation commission, the office of consumer advocate, the 23 utilities board, the Iowa telecommunications and technology 24 commission, and any full-time members of other boards and 25 commissions as defined under section 7E.4 who receive an annual 26 salary for their service on the board or commission. The Iowa 27 ethics and campaign disclosure board shall conduct an annual 28 review to determine if members of any other board, commission, 29 or authority should file a statement and shall require the 30 filing of a statement pursuant to rules adopted pursuant to 31 chapter 17A . 32 Sec. 15. Section 159A.11, subsection 10, Code 2020, is 33 amended by striking the subsection. 34 Sec. 16. Section 159A.13, subsection 6, Code 2020, is 35 -10- LSB 5194DP (6) 88 js/ns 10/ 15

S.F. _____ H.F. _____ amended by striking the subsection. 1 Sec. 17. Section 159A.14, subsection 2, Code 2020, is 2 amended to read as follows: 3 2. A person may apply to the department to receive financial 4 incentives on a cost-share basis. The department shall forward 5 the applications to the underground storage tank fund board as 6 required by that board for evaluation and recommendation. The 7 underground storage tank fund board may rank the applications 8 with comments and shall forward them to the infrastructure 9 board for approval or disapproval. The department shall award 10 financial incentives on a cost-share basis to an eligible 11 person whose application was approved by the infrastructure 12 board. 13 Sec. 18. Section 159A.15, subsection 1, Code 2020, is 14 amended to read as follows: 15 1. A person may apply to the department to receive financial 16 incentives on a cost-share basis. The department shall forward 17 the applications to the underground storage tank fund board as 18 required by that board for evaluation and recommendation. The 19 underground storage tank fund board may rank the applications 20 with comments and shall forward them to the infrastructure 21 board for approval or disapproval. The department shall award 22 financial incentives on a cost-share basis to an eligible 23 person whose application was approved by the infrastructure 24 board. 25 Sec. 19. Section 323.1, subsection 16, Code 2020, is amended 26 to read as follows: 27 16. “Storage tank” means a motor fuel storage tank as 28 defined in section 214.1 , including an underground storage tank 29 subject to regulation under chapter 455G 455B, division IV, 30 part 8, or section 455G.31 . 31 Sec. 20. Section 422.7, subsection 2, paragraph u, Code 32 2020, is amended by striking the paragraph. 33 Sec. 21. Section 455B.174, subsection 4, paragraph d, Code 34 2020, is amended to read as follows: 35 -11- LSB 5194DP (6) 88 js/ns 11/ 15

S.F. _____ H.F. _____ d. If a public water supply has a groundwater source 1 that contains petroleum, a fraction of crude oil, or their 2 degradation products, or is located in an area deemed by the 3 department as likely to be contaminated by such materials, and 4 after consultation with the public water supply system and 5 consideration of all applicable rules relating to remediation, 6 the department may require the public water supply system to 7 replace that groundwater source in order to receive a permit 8 to operate. The requirement to replace the source shall only 9 be made by the department if the public water supply system 10 is fully compensated for any additional design, construction, 11 operation, and monitoring costs from the Iowa comprehensive 12 petroleum underground storage tank fund created by chapter 13 455G or from any other funds that do not impose a financial 14 obligation on the part of the public water supply system. 15 Funds available to or provided by the public water supply 16 system may be used for system improvements made in conjunction 17 with replacement of the source. The department cannot require 18 a public water supply system to replace its water source with a 19 less reliable water source or with a source that does not meet 20 federal primary, secondary, or other health-based standards 21 unless treatment is provided to ensure that the drinking water 22 meets these standards. Nothing in this paragraph shall affect 23 the public water supply system’s right to pursue recovery from 24 a responsible party. 25 Sec. 22. Section 455E.11, subsection 2, paragraph d, 26 subparagraph (3), Code 2020, is amended by striking the 27 subparagraph. 28 Sec. 23. Section 455I.2, subsection 5, paragraph a, Code 29 2020, is amended to read as follows: 30 a. A federal or state program that is subject to the 31 jurisdiction of an agency, including but not limited to 32 programs established by chapters chapter 455B and 455G , 33 corrective or response actions pursuant to 42 U.S.C. §6901 et 34 seq., and remedial actions under 42 U.S.C. §9601 et seq. 35 -12- LSB 5194DP (6) 88 js/ns 12/ 15

S.F. _____ H.F. _____ Sec. 24. EFFECTIVE DATE. This division of this Act takes 1 effect July 1, 2021. 2 DIVISION III 3 REPEAL AND TRANSITION 4 Sec. 25. NEW SECTION . 427B.23 Future repeal. 5 This subchapter is repealed July 1, 2021. All credits 6 existing upon repeal of this subchapter shall continue until 7 their expiration. 8 Sec. 26. NEW SECTION . 455G.22A Claims not eligible. 9 A claim for a release filed on or after January 1, 2021, 10 shall not be eligible for payment from the fund. 11 Sec. 27. NEW SECTION . 455G.22B Future repeal. 12 This subchapter is repealed July 1, 2021. 13 Sec. 28. TRANSITION PROVISIONS. 14 1. Upon repeal of chapter 455G, subchapter 1, and the 15 creation of the Iowa tanks fund pursuant to section 455B.472A, 16 as enacted in this Act, all moneys in all funds administered by 17 the Iowa comprehensive petroleum underground storage tank fund 18 board are transferred to the department of natural resources 19 for deposit in the Iowa tanks fund. Any moneys credited to 20 any fund administered by the Iowa comprehensive petroleum 21 underground storage tank fund board on and after July 1, 2021, 22 are transferred to the department for deposit in the Iowa tanks 23 fund. 24 2. Any rule, regulation, form, order, or directive 25 promulgated by the Iowa comprehensive petroleum underground 26 storage tank fund board as required to administer and enforce 27 the provisions relating to the Iowa comprehensive petroleum 28 underground storage tank fund shall continue in full force 29 and effect under the jurisdiction of the department of 30 natural resources until amended, repealed, or supplemented by 31 affirmative action of the department. 32 3. The Iowa comprehensive petroleum underground storage 33 tank fund board shall administratively close or terminate 34 any remaining liabilities, contracts, outstanding claims, 35 -13- LSB 5194DP (6) 88 js/ns 13/ 15

S.F. _____ H.F. _____ payments, or other obligations for open comprehensive petroleum 1 underground storage tank fund claims existing on or before June 2 30, 2021. 3 4. The department of natural resources may begin 4 implementation of this Act prior to July 1, 2021, to the 5 extent necessary to transition to full implementation of the 6 provisions relating to the Iowa tanks fund and repeal of the 7 Iowa comprehensive petroleum underground storage tank fund. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 Currently, the Iowa comprehensive petroleum underground 12 storage tank fund exists under the control of the Iowa 13 comprehensive petroleum underground storage tank fund board. 14 The Iowa comprehensive petroleum underground storage tank fund 15 contains an account with moneys available to fund corrective 16 action for petroleum releases. The Iowa comprehensive 17 petroleum underground storage tank fund also contains a loan 18 guarantee account and a marketability fund. 19 This bill repeals the Iowa comprehensive petroleum 20 underground storage tank fund and eliminates the Iowa 21 comprehensive petroleum underground storage tank fund board 22 on July 1, 2021. The bill requires the department of natural 23 resources (department) to establish and administer the Iowa 24 tanks fund financing program to distribute financial assistance 25 for work conducted by eligible entities. The bill creates the 26 Iowa tanks fund within the state treasury under the control 27 of the department and requires the department to administer 28 the fund. The program allows a claimant who has previously 29 received assistance under the Iowa tanks fund or the Iowa 30 comprehensive petroleum underground storage tank fund to 31 receive reimbursement from the Iowa tanks fund for all or part 32 of the costs of corrective action for a petroleum release. 33 The bill allows for cost recovery efforts from potentially 34 responsible parties when moneys from the Iowa tanks fund are 35 -14- LSB 5194DP (6) 88 js/ns 14/ 15

S.F. _____ H.F. _____ used during the cleanup of contamination at a tank site. The 1 bill directs the environmental protection commission to adopt 2 rules for program eligibility, investigating and settling 3 claims made against the fund, appeal procedures, community 4 remediation, prioritization of fund moneys, funding for tank 5 operator training, additional assessment and corrective action 6 arising out of a release at a site for which a no further 7 action certificate has been issued, and reimbursement for 8 the permanent closure of an underground storage tank system. 9 The bill provides that claims for releases filed on or after 10 January 1, 2021, are not eligible for payment from the Iowa 11 comprehensive petroleum underground storage tank fund. 12 The bill includes transition provisions retaining the 13 effectiveness of rules, regulations, forms, orders, or 14 directives promulgated by the Iowa comprehensive petroleum 15 underground storage tank fund board until amended, repealed, 16 or supplemented by affirmative action of the department. Any 17 moneys credited to the Iowa comprehensive petroleum underground 18 storage tank fund on and after July 1, 2021, are transferred to 19 the department for deposit in the Iowa tanks fund. 20 The divisions of the bill establishing the Iowa tanks fund 21 and making conforming Code changes take effect July 1, 2021. 22 -15- LSB 5194DP (6) 88 js/ns 15/ 15