Senate Engrossed

 

underground storage tanks; reimbursement

 

 

 

 

State of Arizona

Senate

Fifty-seventh Legislature

First Regular Session

2025

 

 

 

SENATE BILL 1730

 

 

 

 

AN ACT

 

amending sections 49-1024 and 49-1071, Arizona Revised Statutes; RELATING to underground storage tanks.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 49-1024, Arizona Revised Statutes, is amended to read:

START_STATUTE49-1024. Reports; underground storage tank revolving fund program; preapproval process

a. The department shall compile a report on the underground storage tank revolving fund program on or before December 31, 2017, and on or before December 31 every three years thereafter. The department shall submit the report to the governor, the president of the senate and the speaker of the house of representatives and provide a copy of each report to the secretary of state. The department shall post each report on an accessible, public web page on the department's website. The report shall contain the department's findings and shall include the following information:

1. Underground storage tank revolving fund financial information, including revenues, expenditures and current account balances.

2. The amount of any remaining unpaid time-barred claims.

3. A description of the work completed for each program grant component.

4. The amount of reimbursements made annually from the fund.

5. A listing of new releases reported and sites closed, a listing of liabilities owed to small owners and other owners and projected liabilities for the fund through the termination of the program.

6. A description of any state-led corrective actions, including the number of new sites, the number of new releases reported, the number of sites closed, the average cost of corrective action and projected liabilities for state-led corrective actions through the termination of the program.

7. The total number of open releases that are cleaned to closure, the remaining number of open releases, the number of application or reimbursement denials by the department and the number of preapproval appeals.

b. On or before September 1, 2025 and on or before September 1 every year thereafter, the department shall compile a report on the underground storage tank revolving fund preapproval process. The department shall submit the report to the governor, the joint LEGISLATIVE budget committee, the president of the senate and the speaker of the house of representatives and provide a copy of the report to the secretary of state. The report shall include the following information:

1. the monies ASSOCIATED with applications that the DEPARTMENT has preapproved PURSUANT to section 49-1051.

2. The dollar amount ASSOCIATED with each preapproved application.

3. the dollar amount ASSOCIATED with each preapproved application that the department has yet to distribute. END_STATUTE

Sec. 2. Section 49-1071, Arizona Revised Statutes, is amended to read:

START_STATUTE49-1071. Noncorrective action tank site improvement; purposes; priority

A. Subject to the availability of monies in the underground storage tank revolving fund that are annually allocated by the director for each of the following types of actions, an owner, operator or person that meets the requirements of section 49-1016, subsection C may request that the department provide monies for that person to conduct one or more of the following actions, up to a maximum of $300,000 per site:

1. Actions necessary to ensure that the underground storage tank, its piping and its under-dispenser containment comply with standards for new installations prescribed by section 49-1009 or other applicable federal requirements, including replacement of system components, up to a maximum of $200,000.

2. Removal of underground storage tanks for purposes of permanent closure or replacement, up to a maximum of $25,000 per tank.  If petroleum contaminated media that require over-excavation are encountered during removal of the underground storage tank, up to an additional $15,000 per site is available for reimbursement.

3. Confirmation of a suspected release at a tank or site, up to a maximum of $20,000.

4. Obtaining a baseline assessment of a site as prescribed in section 49-1052, up to a maximum of $40,000.

B. In determining the priority for requests under subsection A of this section, the director may consider the following factors:

1. The age, construction and operational history of the underground storage tank.

2. The hydrogeologic characteristics of the site where the underground storage tank is located and the surrounding area.

3. The proximity, quality and current and future uses of nearby surface water and groundwater.

4. The potential effects of residual contamination on nearby surface water and groundwater.

5. The degree of exposure.

6. The financial resources of the applicant.

C. An application for funding and request for reimbursement under this section shall be on a form provided by the department and shall include:

1. Detailed information about the site, including the type, number and location of tanks.

2. Information about the owner and operator, including the type of financial responsibility.

3. A description of the evidence of any release or suspected release.

4. The proposed actions necessary to meet tank and system performance standards.

D. Monies may not be provided under this section for work that takes place more than five hundred forty-five days after the date that monies are approved.

E. An application for monies pursuant to subsection A, paragraph 1, 2 or 4 of this section may be filed with the department at any time but only those costs incurred after the department approves the application are eligible for reimbursement.  For an application for monies pursuant to subsection A, paragraph 3 of this section, the department may reimburse costs incurred for work that takes place before the department's approval.  The maximum amounts prescribed in this section apply to applications approved by the department whether before or after August 27, 2019.

F. Applicants for reimbursement shall apply to the department within one year after the completion of work incurred pursuant to this section. For projects approved before September 1, 2025, applicants shall apply for reimbursement and submit all required documentation needed for cost reimbursement to the department within the later of February 1, 2026 or one year after the completion of work. From and after September 1, 2025, any applicant who has not timely submitted an application for reimbursement for eligible costs under this chapter shall lose eligibility for reimbursement of such costs.

F. Notwithstanding any other provision of this section, for applications made pursuant to this section that are received by the department before September 30, 2020, the department may reimburse costs incurred for work conducted on or after October 1, 2020, including costs incurred for work that occurred before the department's final determination. END_STATUTE