Minnesota LegislatureOffice of the Revisor of Statutes
Minnesota Session Laws - 1999, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 203-H.F.No. 595
An act relating to storage tanks; imposing a specific
standard of proof for certain petrofund reimbursement
reductions; providing reimbursement for certain bulk
petroleum plants upgrading or closing aboveground
storage tanks; modifying application requirements for
contamination; cleanup grants; regulating the cleanup
of contaminated land; specifying the marking required
on petroleum product storage tanks; modifying the
application of the Fire Code to tanks; providing an
exception; amending Minnesota Statutes 1998, sections
115C.08, subdivision 4; 115C.09, subdivision 3, and by
adding a subdivision; 116J.553, subdivision 2;
116J.562, subdivision 2; 116J.567; and 239.752;
proposing coding for new law in Minnesota Statutes,
chapter 299F.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1998, 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 harmful substance compensation
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; and
(9) for contamination cleanup grants, as provided in
paragraph (c).
(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) $6,200,000 is annually appropriated from the fund to
the commissioner of trade and economic development for
contamination cleanup grants under section 116J.554, provided
that money appropriated in this paragraph may be used only for
cleanup costs attributable to petroleum contamination, as
determined by the commissioner of the pollution control agency.
Of this amount, the commissioner may spend up to $120,000
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 trade 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; and
(2) the costs of performing contamination investigation if
there is a reasonable basis to suspect the contamination is
attributable to petroleum.
Sec. 2. Minnesota Statutes 1998, section 115C.09,
subdivision 3, is amended to read:
Subd. 3. [REIMBURSEMENTS; SUBROGATION; APPROPRIATION.] (a)
The board shall reimburse an eligible applicant from the fund in
the following amounts:
(1) 90 percent of the total reimbursable costs on the first
$250,000 and 75 percent on any remaining costs in excess of
$250,000 on a site;
(2) for corrective actions at a residential site used as a
permanent residence at the time the release was discovered, 92.5
percent of the total reimbursable costs on the first $100,000
and 100 percent of any remaining costs in excess of $100,000; or
(3) 90 percent of the total reimbursable costs on the first
$250,000 and 100 percent of the cumulative total reimbursable
costs in excess of $250,000 at all sites in which the
responsible person had interest, and for which the commissioner
has not issued a closure letter as of April 3, 1996, if the
responsible person dispensed less than 1,000,000 gallons of
petroleum at each location in each of the last three calendar
years that the responsible person dispensed petroleum at the
location and:
(i) has owned no more than three locations in the state at
which motor fuel was dispensed into motor vehicles and has
discontinued operation of all petroleum retail operations; or
(ii) has owned no more than one location in the state at
which motor fuel was dispensed into motor vehicles.
Not more than $1,000,000 may be reimbursed for costs
associated with a single release, regardless of the number of
persons eligible for reimbursement, and not more than $2,000,000
may be reimbursed for costs associated with a single tank
facility.
(b) A reimbursement may not be made from the fund under
this chapter until the board has determined that the costs for
which reimbursement is requested were actually incurred and were
reasonable.
(c) When an applicant has obtained responsible competitive
bids or proposals according to rules promulgated under this
chapter prior to June 1, 1995, the eligible costs for the tasks,
procedures, services, materials, equipment, and tests of the low
bid or proposal are presumed to be reasonable by the board,
unless the costs of the low bid or proposal are substantially in
excess of the average costs charged for similar tasks,
procedures, services, materials, equipment, and tests in the
same geographical area during the same time period.
(d) When an applicant has obtained a minimum of two
responsible competitive bids or proposals on forms prescribed by
the board and where the rules promulgated under this chapter
after June 1, 1995, designate maximum costs for specific tasks,
procedures, services, materials, equipment and tests, the
eligible costs of the low bid or proposal are deemed reasonable
if the costs are at or below the maximums set forth in the rules.
(e) Costs incurred for change orders executed as prescribed
in rules promulgated under this chapter after June 1, 1995, are
presumed reasonable if the costs are at or below the maximums
set forth in the rules, unless the costs in the change order are
above those in the original bid or proposal or are
unsubstantiated and inconsistent with the process and standards
required by the rules.
(f) A reimbursement may not be made from the fund in
response to either an initial or supplemental application for
costs incurred after June 4, 1987, that are payable under an
applicable insurance policy, except that if the board finds that
the applicant has made reasonable efforts to collect from an
insurer and failed, the board shall reimburse the applicant.
(g) If the board reimburses an applicant for costs for
which the applicant has insurance coverage, the board is
subrogated to the rights of the applicant with respect to that
insurance coverage, to the extent of the reimbursement by the
board. The board may request the attorney general to bring an
action in district court against the insurer to enforce the
board's subrogation rights. Acceptance by an applicant of
reimbursement constitutes an assignment by the applicant to the
board of any rights of the applicant with respect to any
insurance coverage applicable to the costs that are reimbursed.
Notwithstanding this paragraph, the board may instead request a
return of the reimbursement under subdivision 5 and may employ
against the applicant the remedies provided in that subdivision,
except where the board has knowingly provided reimbursement
because the applicant was denied coverage by the insurer.
(h) Money in the fund is appropriated to the board to make
reimbursements under this chapter. A reimbursement to a state
agency must be credited to the appropriation account or accounts
from which the reimbursed costs were paid.
(i) The board may reduce the amount of reimbursement to be
made under this chapter if it finds that the applicant has not
complied with a provision of this chapter, a rule or order
issued under this chapter, or one or more of the following
requirements:
(1) the agency was given notice of the release as required
by section 115.061;
(2) the applicant, to the extent possible, fully cooperated
with the agency in responding to the release; and
(3) the state and federal rules and regulations applicable
to the condition or operation of the tank when the noncompliance
caused or failed to mitigate the release the state rules
applicable after December 22, 1993, to operating an underground
storage tank and appurtenances without leak detection;
(4) the state rules applicable after December 22, 1998, to
operating an underground storage tank and appurtenances without
corrosion protection or spill and overfill protection; and
(5) the state rule applicable after November 1, 1998, to
operating an aboveground tank without a dike or other structure
that would contain a spill at the aboveground tank site.
(j) The reimbursement may be reduced as much as 100 percent
for failure by the applicant to comply with the requirements in
paragraph (i), clauses (1) to (3) (5). In determining the
amount of the reimbursement reduction, the board shall consider:
(1) the reasonable determination by the agency of the
environmental impact of that the noncompliance poses a threat to
the environment;
(2) whether the noncompliance was negligent, knowing, or
willful;
(3) the deterrent effect of the award reduction on other
tank owners and operators; and
(4) the amount of reimbursement reduction recommended by
the commissioner; and
(5) the documentation of noncompliance provided by the
commissioner.
(k) An applicant may assign the right to receive
reimbursement to each lender who advanced funds to pay the costs
of the corrective action or to each contractor or consultant who
provided corrective action services. An assignment must be made
by filing with the board a document, in a form prescribed by the
board, indicating the identity of the applicant, the identity of
the assignee, the dollar amount of the assignment, and the
location of the corrective action. An assignment signed by the
applicant is valid unless terminated by filing a termination
with the board, in a form prescribed by the board, which must
include the written concurrence of the assignee. The board
shall maintain an index of assignments filed under this
paragraph. The board shall pay the reimbursement to the
applicant and to one or more assignees by a multiparty check.
The board has no liability to an applicant for a payment under
an assignment meeting the requirements of this paragraph.
Sec. 3. Minnesota Statutes 1998, section 115C.09, is
amended by adding a subdivision to read:
Subd. 3h. [REIMBURSEMENT; ABOVEGROUND TANKS IN BULK
PLANTS.] (a) As used in this subdivision, "bulk plant" means an
aboveground or underground tank facility with a storage capacity
of more than 1,100 gallons but less than 1,000,000 gallons that
is used to dispense petroleum into cargo tanks for
transportation and sale at another location.
(b) Notwithstanding any other provision in this chapter and
any rules adopted pursuant to this chapter, the board shall
reimburse 90 percent of an applicant's cost for bulk plant
upgrades or closures completed between June 1, 1998, and
November 1, 2003, to comply with Minnesota Rules, chapter 7151,
provided that the board determines the costs were incurred and
reasonable. The reimbursement may not exceed $10,000 per bulk
plant.
Sec. 4. Minnesota Statutes 1998, section 116J.553,
subdivision 2, is amended to read:
Subd. 2. [REQUIRED CONTENT.] (a) The commissioner shall
prescribe and provide the application form. The application
must include at least the following information:
(1) identification of the site;
(2) an approved response action plan for the site,
including the results of engineering and other tests showing the
nature and extent of the release or threatened release of
contaminants at the site;
(3) a detailed estimate, along with necessary supporting
evidence, of the total cleanup costs for the site;
(4) an appraisal of the current market value of the
property, separately taking into account the effect of the
contaminants on the market value, prepared by a qualified
independent appraiser using accepted appraisal methodology;
(5) an assessment of the development potential or likely
use of the site after completion of the response action plan,
including any specific commitments from third parties to
construct improvements on the site;
(6) the manner in which the municipality will meet the
local match requirement; and
(7) any additional information or material that the
commissioner prescribes.
(b) A response action plan is not required as a condition
to receive a grant under section 116J.554, subdivision 1,
paragraph (c).
Sec. 5. Minnesota Statutes 1998, section 116J.562,
subdivision 2, is amended to read:
Subd. 2. [REDEVELOPMENT COSTS OR COSTS.] "Redevelopment
costs" or "costs" means the costs of land
acquisition, stabilizing unstable soils when infill is required,
demolition, infrastructure improvement, and ponding, or other
environmental infrastructure.
Sec. 6. Minnesota Statutes 1998, section 116J.567, is
amended to read:
116J.567 [SALE OF LAND.]
Bond proceeds funds in the account may only be used for
redevelopment costs for publicly owned property. Nonbond
proceeds funds in the account may be used for redevelopment
costs as defined in section 116J.562, subdivision 2, provided
that the land upon which the improvements are made will
ultimately be sold to a private developer at the fair market
value of the land, unless it can be determined by the
commissioner that a sale for less than fair market value does
not result in a subsidy to a private business or developer. Net
sale proceeds, up to the amount of the grant, must be paid to
the account by the development authority within two years of the
sale. The sale and repayment provisions of this section do not
apply to lands that will be acquired with nonbond proceeds funds
and retained in public ownership for infrastructure improvement
and ponding or other environmental infrastructure. For the
purpose of this section, "net sales proceeds" means the purchase
price of the land minus redevelopment costs related to the land
including redevelopment costs paid with grants made under
section 116J.564.
Sec. 7. Minnesota Statutes 1998, section 239.752, is
amended to read:
239.752 [STORAGE TANK MARKING; RETAIL LOCATION.]
Subdivision 1. [MARKING REQUIRED.] A person responsible
for the product shall securely mount affix a permanent engraved
plastic or stamped metal identification tag on the fill pipe of
a petroleum product storage tank at a business where petroleum
products are sold, offered for sale, or dispensed at retail into
the storage tanks of motor vehicles. A bulk storage facility
operator shall securely affix a metal identification tag on the
fill pipe of each storage tank at the distributor's bulk storage
facility. The identification tag must clearly display the grade
or trade name of the product stored in the tank. The grade or
trade name on the identification tag must be the same as the
grade or trade name displayed on the dispensers through which
the product is dispensed. The grade or trade name must not be
displayed on an access cover over a fill pipe be constructed and
printed according to subdivision 2 and installed according to
subdivision 3. The identification tag must be printed with the
appropriate product identification according to subdivision 4,
5, or 6. This section does not apply to storage tanks at
petroleum refineries or terminals.
Subd. 2. [IDENTIFICATION TAG; CONSTRUCTION, PRINTING.] The
identification tag required in subdivision 1 must be constructed
of one three and one-half inch by three and one-half inch piece
of aluminum or stainless steel. All surfaces of the tag must be
coated with a permanent enamel paint or powder coating. The
coating must be light blue for gasoline and alcohol products and
dark green for petroleum distillate products. Lettering must be
at least three-eighths of one inch high, and printed on the tag
with permanent enamel paint or powder coating. Lettering must
be black for gasoline and alcohol products and white for
petroleum distillate products.
Subd. 3. [IDENTIFICATION TAG; INSTALLATION.] The
identification tag required in subdivision 1 must be securely
affixed to a fill pipe by means of an adjustable steel band
clamp. The display surface of the tag must be positioned so
that the product information can be easily read by a person
filling the storage tank.
Subd. 4. [PRODUCT IDENTIFICATION; GASOLINE, OXYGENATED
GASOLINE.] An identification tag placed on a storage tank
containing gasoline or oxygenated gasoline must be marked with
the word "GASOLINE" and with the correct octane number and the
appropriate product name of the fuel stored in the tank. The
product name must be selected from the following:
(1) "REGULAR" for oxygenated gasoline of less than 88
octane;
(2) "MID-GRADE" for oxygenated gasoline of at least 88
octane, but less than 91 octane;
(3) "PREMIUM" for oxygenated gasoline of at least 91
octane;
(4) "NON-OXY PREM" for nonoxygenated gasoline of at least
91 octane;
(5) "AVIATION" for gasoline used solely as a fuel for
aircraft;
(6) "RACING" for a special racing gasoline intended to be
sold for use in off-road motor vehicles; or
(7) "SPECIAL" for gasoline blended with mineral oil or
other additives and intended to be sold for use in boats,
chainsaws, snowmobiles, or off-road equipment.
Subd. 5. [PRODUCT IDENTIFICATION; ALCOHOL, ALCOHOL-BASED
MOTOR FUEL.] An identification tag placed on a storage tank
containing unblended alcohol or a predominantly alcohol-based
motor fuel must be marked with the word "ALCOHOL" and with the
appropriate product name of the fuel stored in the tank. The
product name must be selected from the following:
(1) "ETHANOL" for denatured ethanol, as defined in section
296A.01;
(2) "METHANOL" for methanol;
(3) "E-85" for an ethanol-gasoline blend, as defined in
section 296A.01; or
(4) "M-85" for a methanol-gasoline blend, as defined in
section 296A.01.
Subd. 6. [PRODUCT INFORMATION; PETROLEUM
DISTILLATES.] Storage tanks containing diesel fuel, heating
fuel, kerosene, or other petroleum distillate must be marked
with the word "DISTILLATE" and with the correct product grade
and appropriate tax status selected from the following:
(1) "#1 DIESEL" "UNDYED" for #1 diesel fuel for which the
motor fuel excise tax has been paid;
(2) "#1" "DYED" for #1 heating fuel or #1 diesel fuel
intended to be sold for use in off-road vehicles and equipment;
(3) "#2 DIESEL" "UNDYED" for #2 diesel fuel for which the
motor fuel excise tax has been paid;
(4) "#2" "DYED" for #2 heating fuel or #2 diesel fuel
intended to be sold for use in off-road vehicles and equipment;
(5) "DIESEL" "PREMIUM" "UNDYED" for premium diesel fuel for
which the motor fuel excise tax has been paid;
(6) "DIESEL" "PREMIUM" "DYED" for premium diesel fuel
intended to be sold off-road;
(7) "KEROSENE" "UNDYED" for kerosene for which the federal
motor fuel excise tax has been paid;
(8) "KEROSENE" "DYED" for kerosene intended to be sold for
use in off-road vehicles, heating equipment, and other off-road
equipment; or
(9) "JET/TURBINE" for jet fuel or turbine fuel.
Sec. 8. [299F.014] [ABOVEGROUND PETROLEUM STORAGE TANKS
NOT USED FOR DISPENSING TO THE PUBLIC; TANK VEHICLES.]
(a) Any rule of the commissioner of public safety that
adopts provisions of the Uniform Fire Code relating to
aboveground tanks for petroleum storage that are not used for
dispensing to the public is superseded by Minnesota Rules,
chapter 7151, in regard to: secondary containment, substance
transfer areas, tank and piping standards, overfill protection,
corrosion protection, leak detection, labeling, monitoring,
maintenance, recordkeeping, and decommissioning. If Minnesota
Rules, chapter 7151, does not address an issue relating to
aboveground tanks for petroleum storage that are not used for
dispensing to the public, any applicable provision of the
Uniform Fire Code, 1997 Edition, shall apply.
(b) A motorized tank vehicle used to transport petroleum
products may be parked within 500 feet of a residence if the
vehicle is parked at an aboveground tank facility used for
dispensing petroleum into cargo tanks for sale at another
location.
Sec. 9. [UNDERGROUND TANKS ON FARMS.]
An owner or operator of a registered underground storage
tank located on a farm in the state who fails to remove the
underground storage tank in compliance with the requirements of
Minnesota Rules, chapter 7150, before December 22, 2000, shall
not be subject to any penalties under state law for failure to
comply with the removal requirements of Minnesota Rules, chapter
7150, with regard to a tank located on a farm.
Sec. 10. [EFFECTIVE DATE.]
Sections 1 to 6 and 9 are effective the day following final
enactment. Section 7 is effective June 1, 2000.
Presented to the governor May 21, 1999
Signed by the governor May 24, 1999, 10:05 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes