underground storage tanks
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Committee on Environment |
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Committee on Appropriations |
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Caucus and COW |
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As Passed the House |
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HB 2155 makes a variety of changes in the Underground Storage Tank (UST) program in DEQ and establishes a grant program for small communities that meet certain criteria.
History
DEQ administers the UST state assurance fund (SAF) through an application process. In FY 2000, the agency processed over 1000 applications, which totaled just over $19 million. Since the program's inception, over 9600 applications have been processed, totaling over $388 million. All applications are ranked and are prioritized for payment; the ranking criteria include risk to health and the environment and financial need. Claims average just over $40,000. Based on the existing average claim size and anticipated number of future claims, the agency estimates year end negative balances of $100 million in FY 01 and $120 million in FY 02. Total revenue from all sources in FY 00 was about $28.5 million; revenues for FY 01 and 02 are expected to be approximately $29 million annually.
Provisions
· Closure rules shall include a provision for in place closure without requiring filling or removal if DEQ determines the practice is not reasonable and would not threaten public health or the environment (ARS 49-1008).
· Corrective action cost coverage from the SAF is expanded to include permanent tank closure on or after July 1, 2001, by a person who is not statutorily defined as an owner or operator but who owns or has principal control of the property before that date. (ARS 49-1052 A. 8.); there would be 100% coverage for those reasonable and necessary corrective action costs (ARS 49-1054 A.); voluntary remediators are eligible for the 100% SAF coverage without regard to the date the release is reported (ARS 49-1052 I.).
· Eligibility of the grant account is expanded to include cities and towns with a population of less than 15,000 that have developed a comprehensive program for the removal or closure of tanks; the criteria for this new component is a concentration of at least 15 tanks within an area of two square miles or less; DEQ shall enter into local delegation agreements for these grants (ARS 49-1071); $5 million is appropriated from the general fund to DEQ in FY 01-02, with a minimum of half of the money to be used for the new grant component; the new grants shall be awarded prior to January 1, 2006 (session law).