underground storage tanks
DPA |
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).
HB 2155 was amended in the Environment Committee as follows:
· The in place closure rules section was removed. (ARS 49-1008)
Municipal Tank Closure Program (replaces the expanded grant account program)
· The municipal tank closure program fund is established in DEQ. The funding is a general fund appropriation of $5,000,000 plus approximately $3.2 million transferred from the UST grant account (which was not obligated).
· Cities and towns are eligible to receive grants if all of the following conditions are met:
1) The population is less than 15,000 persons.
2) There are at least 15 underground storage tanks located at sites for which the person who owns the property or the person with principal control of the property or underground storage tank is not an owner or operator of the tank.
3) There are 3 or more reported leaking underground storage tank sites within the boundaries of the city or town.
· An application shall be submitted to DEQ including:
1) A drawing identifying tank location.
2) Consent of the owner for closure of a tank.
3) Evidence the owner will agree to undertake corrective actions.
4) A comprehensive cost estimate for the project.
5) A closure plan including the schedule of closure.
6) Contact information for person responsible for project.
7) A copy of the work contract.
· Applications shall be considered in the order that DEQ receives them and the availability of monies. A determination on the application shall be given within 90 days of receipt. The maximum award is $500,000 and not more than one award shall be given to a city or town. There is also a maximum of $40,000 that may be awarded to successful applicants for costs incurred in preparing the application.
· After closure, the city or town shall provide a report to DEQ which includes the following:
1) Facility information.
2) Soil and water sampling information.
3) Copies of lab reports and chain of custody forms.
4) A brief narrative description of the quality assurance quality control program followed in the field.
5) A scaled and oriented engineering drawing showing the locations of the closed tanks, piping and dispensers, as well as location of all samples.
6) A completed notification for underground storage tanks form for each tank closed under the project.
· DEQ shall issue a determination statement within 30 days of receiving the above report as to whether the closure requirements were met. If the requirements were met, within 45 days DEQ shall:
1) Issue a letter to the affected persons stating that the closure requirements were met.
2) Release funds for the actual costs incurred for each underground storage tank closure.