HF 3298

Introduction - 94th Legislature (2025 - 2026)

Posted on 05/06/2025 06:40 p.m.

A bill for an act
relating to energy; establishing reimbursement program for underground petroleum
storage tank systems with pressurized single-walled steel piping; amending
Minnesota Statutes 2024, sections 115C.08, subdivision 4; 115C.09, by adding a
subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 115C.08, subdivision 4, is amended to read:

Subd. 4.

Expenditures.

(a) Money in the fund may only be spent:

(1) to administer the petroleum tank release cleanup program established in this chapter;

(2) for agency administrative costs under sections 116.46 to 116.50, sections 115C.03
to 115C.06, and costs of corrective action taken by the agency under section 115C.03,
including investigations;

(3) for costs of recovering expenses of corrective actions under section 115C.04;

(4) for training, certification, and rulemaking under sections 116.46 to 116.50;

(5) for agency administrative costs of enforcing rules governing the construction,
installation, operation, and closure of aboveground and underground petroleum storage
tanks;

(6) for reimbursement of the environmental response, compensation, and compliance
account under subdivision 5 and section 115B.26, subdivision 4;

(7) for administrative and staff costs as set by the board to administer the petroleum tank
release program established in this chapter;

(8) for corrective action performance audits under section 115C.093;

(9) for contamination cleanup grants, as provided in paragraph (c);

(10) to assess and remove abandoned underground storage tanks under section 115C.094
and, if a release is discovered, to pay for the specific consultant and contractor services
costs necessary to complete the tank removal project, including, but not limited to, excavation
soil sampling, groundwater sampling, soil disposal, and completion of an excavation report;
deleted text begin and
deleted text end

(11) to acquire interests in real or personal property, including easements, environmental
covenants under chapter 114E, and leases, that the agency determines are necessary for
corrective actions or to ensure the protectiveness of corrective actions. A donation of an
interest in real property to the agency is not effective until the agency executes a certificate
of acceptance. The state is not liable under this chapter solely as a result of acquiring an
interest in real property under this clause. Agency approval of an environmental covenant
under chapter 114E is sufficient evidence of acceptance of an interest in real property when
the agency is expressly identified as a holder in the covenant. Acquisition of real property
under this clause, except environmental covenants under chapter 114E, is subject to approval
by the board deleted text begin . deleted text end new text begin ; and
new text end

new text begin (12) to reimburse the cost of replacing pressurized single-walled steel piping in
underground petroleum storage tank systems under section 115C.09, subdivision 3l.
new text end

(b) Except as provided in paragraph (c), money in the fund is appropriated to the board
to make reimbursements or payments under this section.

(c) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund to
the commissioner of employment and economic development for contamination cleanup
grants under section 116J.554. Beginning in fiscal year 2012 and each year thereafter,
$6,200,000 is annually appropriated from the fund to the commissioner of employment and
economic development for contamination cleanup grants under section 116J.554. Of this
amount, the commissioner may spend up to $225,000 annually for administration of the
contamination cleanup grant program. The appropriation does not cancel and is available
until expended. The appropriation shall not be withdrawn from the fund nor the fund balance
reduced until the funds are requested by the commissioner of employment and economic
development. The commissioner shall schedule requests for withdrawals from the fund to
minimize the necessity to impose the fee authorized by subdivision 2. Unless otherwise
provided, the appropriation in this paragraph may be used for:

(1) project costs at a qualifying site if a portion of the cleanup costs are attributable to
petroleum contamination or new and used tar and tar-like substances, including but not
limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist
primarily of hydrocarbons and are found in natural deposits in the earth or are distillates,
fractions, or residues from the processing of petroleum crude or petroleum products as
defined in section 296A.01; and

(2) the costs of performing contamination investigation if there is a reasonable basis to
suspect the contamination is attributable to petroleum or new and used tar and tar-like
substances, including but not limited to bitumen and asphalt, but excluding bituminous or
asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits
in the earth or are distillates, fractions, or residues from the processing of petroleum crude
or petroleum products as defined in section 296A.01.

Sec. 2.

Minnesota Statutes 2024, section 115C.09, is amended by adding a subdivision to
read:

new text begin Subd. 31. new text end

new text begin Reimbursement; single-walled steel piping. new text end

new text begin (a) For the purposes of this
subdivision, the following terms have the meanings given:
new text end

new text begin (1) "eligible equipment" means all equipment between the underground petroleum storage
tank and the dispenser, including piping, probes, monitors, pumps, containment, and electrical
equipment to support such equipment. Eligible equipment does not include underground
petroleum storage tanks, dispensers, canopies, site improvements, or signage replacement;
new text end

new text begin (2) "eligible location" means an underground petroleum storage tank system that is
located in Minnesota, has pressurized single-walled steel piping, and was installed before
the effective date of this subdivision; and
new text end

new text begin (3) "qualified person" means someone who is registered as a contractor under sections
115C.11 to 115C.12 and, as part of the person's trade or business, installs or repairs
pressurized underground petroleum storage tank systems.
new text end

new text begin (b) Notwithstanding any other provision of this chapter or any rules adopted under this
chapter, for new projects beginning after January 1, 2026, the board must reimburse an
owner 50 percent of the cost of replacing eligible equipment that is at a minimum compatible
with E25 or B20 equipment at eligible locations if:
new text end

new text begin (1) the owner considered at least two bids and selected the bid with the lowest total cost;
and
new text end

new text begin (2) the board determines that the costs incurred were reasonable.
new text end

new text begin (c) The board must not reimburse costs that the board determines were unreasonable.
new text end

new text begin (d) Reimbursement under paragraph (b) may not exceed $100,000 per eligible location.
new text end

new text begin (e) The maximum annual expenditure from the fund for reimbursing the costs of replacing
pressurized single-walled steel piping may not exceed $4,000,000.
new text end

new text begin (f) An owner that owns or operates multiple eligible locations must not receive
reimbursement for more than two eligible locations per calendar year.
new text end

new text begin (g) An owner may be reimbursed for the costs of:
new text end

new text begin (1) all eligible equipment;
new text end

new text begin (2) labor completed by a qualified person and associated with eligible equipment
installation;
new text end

new text begin (3) labor completed by a qualified person and associated with dirt and concrete work
directly associated with installing eligible equipment; and
new text end

new text begin (4) permits, freight, and shipping directly related to eligible equipment.
new text end

new text begin (h) Nothing in this subdivision prohibits an owner from receiving reimbursement from
other sources for costs that are not reimbursed under this subdivision.
new text end

new text begin (i) This subdivision expires June 30, 2036.
new text end