SB 856 - This act modifies provisions relating to the Petroleum Storage Tank Insurance Fund. Under the act, the Fund shall not be administered in the manner of an express trust and moneys in the Fund shall not be deemed insurance for the purposes of provisions of law relating to insurance.
The act repeals a provision requiring the owner or operator of any underground storage tank in service on August 28, 1989, to submit a fee of $100 per tank to the Department of Natural Resources on or before December 31, 1989.
The act modifies the makeup of the board of trustees of the Fund. The board of trustees shall be a state agency for all pertinent purposes. The act repeals a provision allowing the board to contract with the Department of Natural Resources or another state agency for its staff.
The board may enter into contingency contracts to subrogate claims on behalf of its participants. Such contracts shall not be subject to provisions of law relating to limitations on contingent fee contracts.
A trustee may make a claim or receive benefits from the Fund so long as the trustee does not participate in deliberations or decisions of the board regarding the claim.
On December 31, 2025, and each year thereafter so long as moneys remain in the Fund, the board shall report to the State Treasurer an estimate of its remaining obligations, and by January 30th of the succeeding year the State Treasurer shall report to the General Assembly the amount remaining in the Fund and the board's estimate of remaining obligations. When all claims have been paid, the board shall report to the Treasurer, and the Treasurer shall then report to the General Assembly the amount, if any, remaining in the Fund.
Owners and operators of petroleum storage tanks may apply to participate in the Fund. Participation shall be subject to the terms of a participation agreement issued by the board of trustees.
Owners and operators of airport hydrant systems and other underground or aboveground storage tanks used to store and distribute fuel for railroad corporations and airline companies shall not be eligible to participate in the Fund.
Persons seeking to participate in the Fund no longer have to show compliance with technical standards established by the U.S. Environmental Protection Agency, but shall certify that the petroleum tanks meet or exceed and are in compliance with petroleum storage tank regulations established by the Department of Natural Resources and the Department of Agriculture. The act also repeals a list of specific options for proving tank integrity.
An applicant shall also submit evidence that the applicant can pay the first $10,000 of cleanup costs.
This act repeals provisions relating to claims for cleanup costs associated with a release from a petroleum storage tank and coverage for third party claims involving property damage or bodily injury caused by leaking petroleum storage tanks.
The board shall provide coverage to Fund participants for the cost of cleanup associated with a release from a petroleum storage tank and third party claims involving property damage or bodily injury arising from such release. The total liability shall not exceed $1 million per occurrence or $2 million in the aggregate per year. In addition to these limits, the board may provide legal defense of eligible third party claims and may specify a limit to legal defense coverage in the participation agreement.
No coverage shall be provided for repair of damages beyond that required to contain and cleanup a petroleum release or for loss of damage to other property owned by the participant. Additionally, no coverage shall be provided to a participant or third party for loss or damage of an intangible nature or for punitive damages.
The board shall have authority to investigate and settle any third party claim and, if legal defense coverage is provided, may choose and employ counsel to represent a participant and defend such claims.
Nothing in the provisions of law relating to petroleum storage tanks shall be construed to create a cause of action against the Fund or the board and such provisions shall not be construed to broaden the liability of the state nor to abolish nor waive any defense which might otherwise be available to the state or to any person.
The act repeals a provision relating to funding for cleanup of contamination where the owner or operator participated in or applied for participation in the Fund prior to December 31, 1997, regardless of when such release occurred.
The liability of the Fund for cleanups of contamination caused by releases from underground storage tanks which contained petroleum and which were taken out of use prior to December 31, 1997, shall be limited to $990,000 and the person initiating the cleanup shall pay the first $10,000 of cleanup costs.
The liability of the Fund for cleanups of contamination caused by releases from aboveground storage tanks utilized for the sale of various types of fuels and which were taken out of use prior to December 31, 1997, shall be limited to $990,000 and the person initiating the cleanup shall pay the first $10,000 of cleanup costs.
The board shall provide by regulation for the appeal of decisions denying, in whole or in part, requests by Fund participants for payment from the Fund. Any deliberations conducted and votes taken on such an appeal shall be closed to the applicant and the public until a final decision is rendered.
The act sets forth a list of records that are not public records under the Sunshine Law and shall not be available for public examination.
The board may establish procedures where persons may pay the annual fee to participate in the Fund in installments.
This act is substantially similar to HB 2215 (2020).
JAMIE ANDREWS