1.1                          A bill for an act
  1.2             relating to the environment; providing for cleanup of 
  1.3             petroleum-contaminated sites that are not associated 
  1.4             with a release from a tank; extending the authority of 
  1.5             the commissioner of the pollution control agency to 
  1.6             issue liability assurances in certain situations; 
  1.7             appropriating money; amending Minnesota Statutes 1996, 
  1.8             sections 115C.02, subdivision 1; 115C.03, subdivision 
  1.9             9; 115C.08, subdivisions 2 and 4; 115C.09, subdivision 
  1.10            1; and 116J.554, by adding a subdivision. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1996, section 115C.02, 
  1.13  subdivision 1, is amended to read: 
  1.14     Subdivision 1.  [APPLICABILITY.] Unless otherwise 
  1.15  specified, the definitions in this section apply to this chapter.
  1.16     Sec. 2.  Minnesota Statutes 1996, section 115C.03, 
  1.17  subdivision 9, is amended to read: 
  1.18     Subd. 9.  [REQUESTS FOR REVIEW, INVESTIGATION, AND 
  1.19  OVERSIGHT.] (a) The commissioner may, upon request:  
  1.20     (1) assist in determining whether a release has occurred; 
  1.21  and 
  1.22     (2) assist in or supervise the development and 
  1.23  implementation of reasonable and necessary corrective actions; 
  1.24  and 
  1.25     (3) assist in or supervise the investigation, development, 
  1.26  and implementation of reasonable and necessary actions to 
  1.27  minimize, eliminate, or clean up petroleum contamination at 
  1.28  sites where it is not certain that the contamination is 
  2.1   attributable to a release.  
  2.2      (b) Assistance may include review of agency records and 
  2.3   files and review and approval of a requester's investigation 
  2.4   plans and reports and corrective action plans and implementation.
  2.5      (c) Assistance may include the issuance of a written 
  2.6   determination that an owner or prospective buyer of real 
  2.7   property will not be a responsible person under section 
  2.8   115C.021, if the commissioner finds the release came from a tank 
  2.9   not located on the property.  The commissioner may also issue a 
  2.10  written confirmation that the real property was the site of a 
  2.11  release and that the tank from which the release occurred has 
  2.12  been removed or that the agency has issued a site closure letter 
  2.13  and has not revoked that status.  The issuance of the written 
  2.14  determination or confirmation applies to tanks not on the 
  2.15  property or removed only and does not affect liability for 
  2.16  releases from tanks that are on the property at the time of 
  2.17  purchase.  The commissioner may also issue site closure letters 
  2.18  and nonresponsible person determinations for sites contaminated 
  2.19  by petroleum where it is not certain that the contamination is 
  2.20  attributable to a release.  The written determination or 
  2.21  confirmation extends to the successors and assigns of the person 
  2.22  to whom it originally applied, if the successors and assigns are 
  2.23  not otherwise responsible for the release. 
  2.24     (d) The person requesting assistance under this subdivision 
  2.25  shall pay the agency for the agency's cost, as determined by the 
  2.26  commissioner, of providing assistance.  Money received by the 
  2.27  agency for assistance under this subdivision must be deposited 
  2.28  in the state treasury and credited to an account in the special 
  2.29  revenue fund.  Money in this account is annually appropriated to 
  2.30  the commissioner for purposes of administering the subdivision. 
  2.31     Sec. 3.  Minnesota Statutes 1996, section 115C.08, 
  2.32  subdivision 2, is amended to read: 
  2.33     Subd. 2.  [IMPOSITION OF FEE; ACCOUNTS IN PETROLEUM TANK 
  2.34  FUND.] There is established within the petroleum tank fund the 
  2.35  petroleum tank cleanup account and the petroleum-contaminated 
  2.36  land cleanup account.  The board shall notify the commissioner 
  3.1   of revenue if the unencumbered balance of the fund petroleum 
  3.2   tank cleanup account falls below $4,000,000, and within 60 days 
  3.3   after receiving notice from the board, the commissioner of 
  3.4   revenue shall impose the fee established in subdivision 3 on the 
  3.5   use of a tank for four six calendar months, with payment to be 
  3.6   submitted with each monthly distributor tax return, provided 
  3.7   that: 
  3.8      (1) the proceeds from the first four months must be 
  3.9   credited to the petroleum tank cleanup account and the proceeds 
  3.10  from the last two months must be credited to the 
  3.11  petroleum-contaminated land cleanup account; and 
  3.12     (2) the petroleum-contaminated land cleanup account must 
  3.13  not receive more than two months of proceeds in any calendar 
  3.14  year. 
  3.15     Sec. 4.  Minnesota Statutes 1996, section 115C.08, 
  3.16  subdivision 4, is amended to read: 
  3.17     Subd. 4.  [EXPENDITURES.] (a) Money in the fund petroleum 
  3.18  tank cleanup account may only be spent: 
  3.19     (1) to administer the petroleum tank release cleanup 
  3.20  program established in this chapter; 
  3.21     (2) for agency administrative costs under sections 116.46 
  3.22  to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
  3.23  action taken by the agency under section 115C.03, including 
  3.24  investigations; 
  3.25     (3) for costs of recovering expenses of corrective actions 
  3.26  under section 115C.04; 
  3.27     (4) for training, certification, and rulemaking under 
  3.28  sections 116.46 to 116.50; 
  3.29     (5) for agency administrative costs of enforcing rules 
  3.30  governing the construction, installation, operation, and closure 
  3.31  of aboveground and underground petroleum storage tanks; 
  3.32     (6) for reimbursement of the harmful substance compensation 
  3.33  account under subdivision 5 and section 115B.26, subdivision 4; 
  3.34     (7) for administrative and staff costs as set by the board 
  3.35  to administer the petroleum tank release program established in 
  3.36  this chapter; and 
  4.1      (8) for corrective action performance audits under section 
  4.2   115C.093. 
  4.3      (b) Money in the fund petroleum tank cleanup account is 
  4.4   appropriated to the board to make reimbursements or payments 
  4.5   under this section. 
  4.6      Sec. 5.  Minnesota Statutes 1996, section 115C.09, 
  4.7   subdivision 1, is amended to read: 
  4.8      Subdivision 1.  [REIMBURSABLE COSTS.] (a) The board shall 
  4.9   provide reimbursement from the petroleum tank cleanup account in 
  4.10  the fund to eligible applicants for reimbursable costs.  
  4.11     (b) The following costs are reimbursable for purposes of 
  4.12  this chapter:  
  4.13     (1) corrective action costs incurred by the applicant and 
  4.14  documented in a form prescribed by the board, except the costs 
  4.15  related to the physical removal of a tank; 
  4.16     (2) costs that the responsible person is legally obligated 
  4.17  to pay as damages to third parties for bodily injury, property 
  4.18  damage, or corrective action costs incurred by a third party 
  4.19  caused by a release where the responsible person's liability for 
  4.20  the costs has been established by a court order or 
  4.21  court-approved settlement; 
  4.22     (3) up to 180 days worth of interest costs associated with 
  4.23  the financing of corrective action and incurred by the applicant 
  4.24  in a written financing contract signed by the applicant and 
  4.25  executed after May 25, 1991.  Interest costs are not eligible 
  4.26  for reimbursement to the extent they exceed two percentage 
  4.27  points above the adjusted prime rate charged by banks, as 
  4.28  defined in section 270.75, subdivision 5, at the time the 
  4.29  financing contract was executed; and 
  4.30     (4) preremoval site assessment costs incurred by the 
  4.31  applicant and eligible for reimbursement under section 115C.092. 
  4.32     (c) A cost for liability to a third party is incurred by 
  4.33  the responsible person when an order or court-approved 
  4.34  settlement is entered that sets forth the specific costs 
  4.35  attributed to the liability.  Except as provided in this 
  4.36  paragraph, reimbursement may not be made for costs of liability 
  5.1   to third parties until all eligible corrective action costs have 
  5.2   been reimbursed.  If a corrective action is expected to continue 
  5.3   in operation for more than one year after it has been fully 
  5.4   constructed or installed, the board may estimate the future 
  5.5   expense of completing the corrective action and, after 
  5.6   subtracting this estimate from the total reimbursement available 
  5.7   under subdivision 3, reimburse the costs for liability to third 
  5.8   parties.  The total reimbursement may not exceed the limit set 
  5.9   forth in subdivision 3. 
  5.10     Sec. 6.  Minnesota Statutes 1996, section 116J.554, is 
  5.11  amended by adding a subdivision to read: 
  5.12     Subd. 1b.  [PETROLEUM CONTAMINATION.] Money in the 
  5.13  petroleum-contaminated land cleanup account established in 
  5.14  section 115C.08, subdivision 2, is appropriated to the 
  5.15  commissioner for grants under this section, provided that money 
  5.16  from the account may be used only for cleanup costs attributable 
  5.17  to petroleum contamination, as determined by the commissioner of 
  5.18  the pollution control agency. 
  5.19     Sec. 7.  [CREDIT OF EXISTING BALANCE.] 
  5.20     The unencumbered balance in the petroleum tank fund as of 
  5.21  the effective date of this act must be credited to the petroleum 
  5.22  tank cleanup account in the petroleum tank release cleanup fund.