1.1                          A bill for an act 
  1.2             relating to the environment; providing that petroleum 
  1.3             tank release cleanup funds may be used to assist in 
  1.4             the replacement of underground storage tanks; amending 
  1.5             Minnesota Statutes 1996, section 115C.09, subdivision 
  1.6             1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 115C.09, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [REIMBURSABLE COSTS.] (a) The board shall 
  1.11  provide reimbursement to eligible applicants for reimbursable 
  1.12  costs.  
  1.13     (b) The following costs are reimbursable for purposes of 
  1.14  this chapter:  
  1.15     (1) corrective action costs incurred by the applicant and 
  1.16  documented in a form prescribed by the board, except the costs 
  1.17  related to the physical removal of a tank; 
  1.18     (2) costs that the responsible person is legally obligated 
  1.19  to pay as damages to third parties for bodily injury, property 
  1.20  damage, or corrective action costs incurred by a third party 
  1.21  caused by a release where the responsible person's liability for 
  1.22  the costs has been established by a court order or 
  1.23  court-approved settlement; 
  1.24     (3) up to 180 days worth of interest costs associated with 
  1.25  the financing of corrective action and incurred by the applicant 
  1.26  in a written financing contract signed by the applicant and 
  2.1   executed after May 25, 1991.  Interest costs are not eligible 
  2.2   for reimbursement to the extent they exceed two percentage 
  2.3   points above the adjusted prime rate charged by banks, as 
  2.4   defined in section 270.75, subdivision 5, at the time the 
  2.5   financing contract was executed; ~~and~~ 
  2.6      (4) preremoval site assessment costs incurred by the 
  2.7   applicant and eligible for reimbursement under section 115C.092; 
  2.8   and 
  2.9      (5) costs of complying with closure or upgrading 
  2.10  requirements under Minnesota Rules, chapter 7150. 
  2.11     (c) A cost for liability to a third party is incurred by 
  2.12  the responsible person when an order or court-approved 
  2.13  settlement is entered that sets forth the specific costs 
  2.14  attributed to the liability.  Except as provided in this 
  2.15  paragraph, reimbursement may not be made for costs of liability 
  2.16  to third parties until all eligible corrective action costs have 
  2.17  been reimbursed.  If a corrective action is expected to continue 
  2.18  in operation for more than one year after it has been fully 
  2.19  constructed or installed, the board may estimate the future 
  2.20  expense of completing the corrective action and, after 
  2.21  subtracting this estimate from the total reimbursement available 
  2.22  under subdivision 3, reimburse the costs for liability to third 
  2.23  parties.  The total reimbursement may not exceed the limit set 
  2.24  forth in subdivision 3.