1.1                          A bill for an act
  1.2             relating to environment; authorizing reimbursements 
  1.3             under the petroleum tank release cleanup program for 
  1.4             corrective actions at petroleum contaminated sites 
  1.5             which are not associated with a release from a tank; 
  1.6             extending the authority of the commissioner of the 
  1.7             pollution control agency to issue liability assurances 
  1.8             in certain situations; amending Minnesota Statutes 
  1.9             1996, sections 115C.02, subdivision 1; 115C.03, 
  1.10            subdivision 9; 115C.08, subdivisions 2 and 4; and 
  1.11            115C.09, subdivision 1; proposing coding for new law 
  1.12            in Minnesota Statutes, chapter 115C. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 1996, section 115C.02, 
  1.15  subdivision 1, is amended to read: 
  1.16     Subdivision 1.  [APPLICABILITY.] Unless otherwise 
  1.17  specified, the definitions in this section apply to this chapter.
  1.18     Sec. 2.  Minnesota Statutes 1996, section 115C.03, 
  1.19  subdivision 9, is amended to read: 
  1.20     Subd. 9.  [REQUESTS FOR REVIEW, INVESTIGATION, AND 
  1.21  OVERSIGHT.] (a) The commissioner may, upon request:  
  1.22     (1) assist in determining whether a release has occurred; 
  1.23  and 
  1.24     (2) assist in or supervise the development and 
  1.25  implementation of reasonable and necessary corrective actions; 
  1.26  and 
  1.27     (3) assist in or supervise the investigation, development, 
  1.28  and implementation of reasonable and necessary corrective action 
  1.29  for corrective actions as defined in section 115C.121.  
  2.1      (b) Assistance may include review of agency records and 
  2.2   files and review and approval of a requester's investigation 
  2.3   plans and reports and corrective action plans and implementation.
  2.4      (c) Assistance may include the issuance of a written 
  2.5   determination that an owner or prospective buyer of real 
  2.6   property will not be a responsible person under section 
  2.7   115C.021, if the commissioner finds the release came from a tank 
  2.8   not located on the property.  The commissioner may also issue a 
  2.9   written confirmation that the real property was the site of a 
  2.10  release and that the tank from which the release occurred has 
  2.11  been removed or that the agency has issued a site closure letter 
  2.12  and has not revoked that status.  The issuance of the written 
  2.13  determination or confirmation applies to tanks not on the 
  2.14  property or removed only and does not affect liability for 
  2.15  releases from tanks that are on the property at the time of 
  2.16  purchase.  The commissioner may also issue site closure letters 
  2.17  and nonresponsible person determinations for sites contaminated 
  2.18  by petroleum where it is not certain that the contamination is 
  2.19  attributable to a release.  The written determination or 
  2.20  confirmation extends to the successors and assigns of the person 
  2.21  to whom it originally applied, if the successors and assigns are 
  2.22  not otherwise responsible for the release. 
  2.23     (d) The person requesting assistance under this subdivision 
  2.24  shall pay the agency for the agency's cost, as determined by the 
  2.25  commissioner, of providing assistance.  Money received by the 
  2.26  agency for assistance under this subdivision must be deposited 
  2.27  in the state treasury and credited to an account in the special 
  2.28  revenue fund.  Money in this account is annually appropriated to 
  2.29  the commissioner for purposes of administering the subdivision. 
  2.30     Sec. 3.  Minnesota Statutes 1996, section 115C.08, 
  2.31  subdivision 2, is amended to read: 
  2.32     Subd. 2.  [IMPOSITION OF FEE ACCOUNTS WITHIN PETROLEUM TANK 
  2.33  FUND.] There is established within the petroleum tank fund the 
  2.34  petroleum tank cleanup account and the petroleum contaminated 
  2.35  land cleanup account.  Amounts deposited into the petroleum tank 
  2.36  fund under subdivision 1 shall be deposited into the petroleum 
  3.1   tank cleanup account within the petroleum tank fund whenever the 
  3.2   board shall notify notifies the commissioner of revenue if that 
  3.3   the unencumbered balance of the fund petroleum tank cleanup 
  3.4   account falls below $4,000,000, and within 60 days after 
  3.5   receiving notice from the board,.  The commissioner of revenue 
  3.6   shall impose then deposit the revenues received from the 
  3.7   imposition of the fee established in subdivision 3 on the use of 
  3.8   a tank for four calendar months, with payment to be submitted 
  3.9   with each monthly distributor tax return into the petroleum tank 
  3.10  cleanup account.  At all other times, the commissioner of 
  3.11  revenue shall deposit such revenues into the petroleum 
  3.12  contaminated land cleanup account within the petroleum tank fund.
  3.13     Sec. 4.  Minnesota Statutes 1996, section 115C.08, 
  3.14  subdivision 4, is amended to read: 
  3.15     Subd. 4.  [EXPENDITURES.] (a) Money in the fund may only be 
  3.16  spent: 
  3.17     (1) to administer the petroleum tank release cleanup 
  3.18  program established in this chapter; 
  3.19     (2) for agency administrative costs under sections 116.46 
  3.20  to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
  3.21  action taken by the agency under section 115C.03, including 
  3.22  investigations; 
  3.23     (3) for costs of recovering expenses of corrective actions 
  3.24  under section 115C.04; 
  3.25     (4) for training, certification, and rulemaking under 
  3.26  sections 116.46 to 116.50; 
  3.27     (5) for agency administrative costs of enforcing rules 
  3.28  governing the construction, installation, operation, and closure 
  3.29  of aboveground and underground petroleum storage tanks; 
  3.30     (6) for reimbursement of the harmful substance compensation 
  3.31  account under subdivision 5 and section 115B.26, subdivision 4; 
  3.32     (7) for administrative and staff costs as set by the board 
  3.33  to administer the petroleum tank release program established in 
  3.34  this chapter; and 
  3.35     (8) for corrective action performance audits under section 
  3.36  115C.093; and 
  4.1      (9) to administer the petroleum contaminated land cleanup 
  4.2   program established in section 115C.121. 
  4.3      (b) Money in the fund is appropriated to the board to make 
  4.4   reimbursements or payments under this section. 
  4.5      Sec. 5.  Minnesota Statutes 1996, section 115C.09, 
  4.6   subdivision 1, is amended to read: 
  4.7      Subdivision 1.  [REIMBURSABLE COSTS.] (a) The board shall 
  4.8   provide reimbursement from the petroleum tank cleanup account 
  4.9   within the petroleum tank fund to eligible applicants for 
  4.10  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.  [115C.121] [PETROLEUM CONTAMINATED LAND CLEANUP.] 
  5.11     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  5.12  section, the terms in this subdivision have the meanings given 
  5.13  them. 
  5.14     (b) "Applicant" means a person eligible under this section 
  5.15  to receive reimbursement from the fund. 
  5.16     (c) "Corrective action" means an action taken to minimize, 
  5.17  eliminate, or clean up a release onto real property to protect 
  5.18  the public health and welfare or the environment. 
  5.19     (d) "Release" means any spilling, leaking, pumping, 
  5.20  pouring, emitting, emptying, discharging, injecting, escaping, 
  5.21  leaching, dumping, or disposing of petroleum into the 
  5.22  environment which occurred at a point in time or which continues 
  5.23  to occur. 
  5.24     (e) "Responsible person" means a person responsible for a 
  5.25  release under section 115B.03. 
  5.26     Subd. 2.  [REIMBURSABLE COSTS.] The board shall provide 
  5.27  reimbursement to eligible applicants from the petroleum 
  5.28  contaminated land cleanup account within the petroleum tank fund 
  5.29  for the following reimbursable costs: 
  5.30     (1) corrective action costs specifically related to a 
  5.31  release of petroleum incurred by the applicant and documented in 
  5.32  a form prescribed by the board; and 
  5.33     (2) up to 180 days worth of interest costs associated with 
  5.34  the financing of corrective action and incurred by the applicant 
  5.35  in a written financing contract signed by the applicant and 
  5.36  executed after May 25, 1991.  Interest costs are not eligible 
  6.1   for reimbursement to the extent they exceed two percentage 
  6.2   points above the adjusted prime rate charged by banks, as 
  6.3   defined in section 270.75, subdivision 5, at the time the 
  6.4   financing contract was executed. 
  6.5      Subd. 3.  [RESPONSIBLE PERSON ELIGIBILITY.] A responsible 
  6.6   person is not eligible for reimbursement under this section. 
  6.7      Subd. 4.  [REIMBURSEMENT PROGRAM ADMINISTRATION.] The board 
  6.8   may administer reimbursements for applicants under this section 
  6.9   as otherwise provided in this chapter.