1999 Legislation
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SENATE BILL NO. 1136 – Petroleum Clean Water Fund, dist

SENATE BILL NO. 1136

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S1136.....................................................by TRANSPORTATION
PETROLEUM CLEAN WATER TRUST FUND - Amends existing law to provide for
distribution of moneys from the Idaho Petroleum Clean Water Trust Fund when
the unencumbered fund balance reaches $30,000,000; and to provide a
distribution formula from the trust fund when the unencumbered fund balance
equals $20,000,000.

02/10    Senate intro - 1st rdg - to printing
02/11    Rpt prt - to Transp

Bill Text


S1136


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1136

                               BY TRANSPORTATION COMMITTEE

 1                                        AN ACT
 2    RELATING TO THE IDAHO PETROLEUM  CLEAN  WATER  TRUST  FUND;  AMENDING  SECTION
 3        41-4908,  IDAHO  CODE,  TO  DELETE  THE REQUIREMENT THAT IMPOSITION OF THE
 4        TRANSFER FEE SHALL BE SUSPENDED WHEN THE UNENCUMBERED FUND BALANCE REACHES
 5        THIRTY MILLION DOLLARS,  TO PROVIDE FOR DISTRIBUTION OF  MONEYS  FROM  THE
 6        IDAHO  PETROLEUM CLEAN WATER TRUST FUND WHEN THE UNENCUMBERED FUND BALANCE
 7        REACHES THIRTY MILLION DOLLARS, TO PROVIDE A DISTRIBUTION FORMULA FROM THE
 8        TRUST FUND WHEN THE UNENCUMBERED FUND BALANCE EQUALS TWENTY  MILLION  DOL-
 9        LARS AND TO MAKE TECHNICAL CORRECTIONS.

10    Be It Enacted by the Legislature of the State of Idaho:

11        SECTION  1.  That  Section 41-4908, Idaho Code, be, and the same is hereby
12    amended to read as follows:

13        41-4908.  SOURCE OF TRUST FUND --  APPLICATION  FEES  --  APPLICATION  FOR
14    ENROLLMENT  --  TRANSFER  FEES.  (1) Every owner or operator of an underground
15    storage tank may, if he desires to apply to  the  trust  fund  to  insure  the
16    underground  tank, make application for and pay into the trust fund an initial
17    application fee set by the administrator, but not to exceed  twenty-five  dol-
18    lars ($25.00) for each tank for which application for coverage is made.
19        (2)  Every  owner  or  operator  of  an    above  ground  
20    aboveground  storage tank may, if he desires to apply to the trust  fund
21    to  insure  the   above ground   aboveground  tank, make
22    application for and pay into the trust fund an initial application fee set  by
23    the  administrator,  but  not  to exceed twenty-five dollars ($25.00) for each
24    tank for which application for coverage is made.
25        (3)  Every owner or operator of a farm tank or residential tank may, if he
26    desires to apply to the trust fund to insure the tank,  make  application  for
27    and  pay into the trust fund an initial application fee set by the administra-
28    tor, but not to exceed twenty-five dollars ($25.00) for each  tank  for  which
29    application for coverage is made.
30        (4)  Every owner or operator of a heating tank may, if he desires to apply
31    to  the  trust  fund to insure the tank, make application for and pay into the
32    trust fund an initial application fee set by the  administrator,  but  not  to
33    exceed  five  dollars ($5.00) for each tank for which application for coverage
34    is made.
35        (5)  The application for insurance shall be made to the  administrator  on
36    forms  furnished and prescribed by him for the purpose of eliciting reasonably
37    available information as to the type and use of the storage tank, the type  of
38    business  enterprise  of  the  tank  owner or operator, the age of the storage
39    tank, the materials used in the construction of the tank and  the  inside  and
40    outside  protective  coatings  and  other  corrosion protective measures, leak
41    detection methods, spill and overfill prevention  methods  of  the  tank,  the
42    location  of the tank and its proximity to roads and buildings, the foundation
43    and type of material used as a bedding and fill for the  tank,  any  available


                                          2

 1    inspection  records  of  the  tank including the gallons of petroleum products
 2    entered into the tank and the gallon dispersements from the  tank,  and  other
 3    information that is reasonably prudent in order to obtain a sufficient body of
 4    statistical  data  to  determine the relative hazards of various categories of
 5    tanks, the potential that future leaks or discharges may occur, and the condi-
 6    tions under which cleanup costs and personal injury and property damage  costs
 7    may  occur  and vary in the severity of the release and the resultant costs to
 8    the trust fund.
 9        (6)  The administrator shall act upon the application for  insurance  with
10    all    reasonable  promptness,  and  he  shall make such investigations of the
11    applicant as he deems advisable to determine if the information  contained  in
12    the  application  for  insurance  is  accurate and complete. The administrator
13    shall determine if the applicant's storage  tanks  meet  all  the  eligibility
14    requirements and promptly notify the applicant of the acceptance or nonaccept-
15    ance  of  the application for insurance. The absence of unknown data requested
16    on the application shall not preclude an applicant's acceptance  for  coverage
17    by  the trust fund, if the applicant is otherwise eligible for insurance under
18    this chapter.
19        (7)  In addition to the application fees received by the trust fund pursu-
20    ant to this section, the trust fund shall receive the revenue produced by  the
21    imposition  of  a "transfer fee" of one cent ($.01) per gallon on the delivery
22    or storage of all petroleum products as defined in subsection (24) of  section
23    41-4903,  Idaho  Code,  delivered  or  stored  within the state of Idaho. This
24    transfer fee is  hereby  imposed  upon  the  first  licensed  distributor  who
25    receives, as receipt is determined in section 63-2403, Idaho Code, a petroleum
26    product  within  this  state  for the privilege of engaging in the delivery or
27    storage of petroleum products whose delivery or storage may present the danger
28    of a discharge into the environment  and  thus  create  the  liability  to  be
29    funded. The fee imposed by this subsection shall not apply to (a) petroleum or
30    petroleum products which are first delivered or stored in this state in a con-
31    tainer  of fifty-five (55) gallons or less if such container is intended to be
32    transferred  to  the  ultimate  consumer  of  the   petroleum   or   petroleum
33    products  ;    or  (b) petroleum or petroleum products delivered or
34    stored in this state for the purpose of packaging or repackaging into contain-
35    ers of fifty-five (55) gallons or less if such container  is  intended  to  be
36    transferred to the ultimate consumer of the petroleum or petroleum products.
37        (8)  The  transfer  fee shall be collected by the commission on all petro-
38    leum products delivered or stored within this state after April 1, 1990.  This
39    transfer  fee  shall be in addition to any excise tax imposed on motor fuel or
40    other petroleum products and shall be remitted  to  the  commission  with  the
41    distributor's  monthly  report as required in section 63-2406, Idaho Code. The
42    distributor may deduct from his monthly  report  those  gallons  of  petroleum
43    products  returned  to  a licensed distributor's refinery or pipeline terminal
44    storage or exported from the state when supported by proper documents approved
45    by the commission. For the purpose of carrying out its duties under the provi-
46    sions of this chapter, the commission shall have the powers  and  duties  pro-
47    vided in sections 63-3038, 63-3039, 63-3042 through 63-3066, 63-3068, 63-3071,
48    and  63-3074  through  63-3078, Idaho Code, which sections are incorporated by
49    reference herein as though set out verbatim.
50        (9)  No person shall be excused from liability for any duty or fee imposed
51    in this chapter for failure to obtain a distributor's license.
52        (10) The director shall certify to the commission  when  the  unencumbered
53    balance  in the trust fund equals thirty million dollars ($30,000,000). Effec-
54    tive the first day of the second month following the date of  such  certifica-
55    tion, the imposition of the transfer fee shall be  suspended  


                                          3

 1    distributed  as  follows:   For the month of certification by the director and
 2    monthly thereafter, the balance of the transfer fees and accumulated  interest
 3    accruing  to  the Idaho petroleum clean water trust fund shall be distributed:
 4    ninety-seven percent (97%) to the restricted highway fund established in  sec-
 5    tion  40-701A,  Idaho  Code, and three percent (3%) to the Idaho department of
 6    parks and recreation to be distributed as provided in subsection (1)(e)1.,  2.
 7    and  3. of section 63-2412, Idaho Code, and to the accounts specified in those
 8    subparts according to the formula in those subparts  .  Thereafter,  the
 9    director  shall certify to the commission when the unencumbered balance in the
10    trust fund equals twenty million dollars ($20,000,000).  Effective  the  first
11    day  of the second month following the date of such certification, the imposi-
12    tion of the transfer fee shall be  reinitiated     distributed
13    as provided in section 41-4909, Idaho Code .

Statement of Purpose / Fiscal Impact


                 Statement of Purpose / Fiscal Impact

                         STATEMENT OF PURPOSE
                               RS 08940

This legislation relates to the "transfer fee" of the Idaho Petroleum
Clean Water Trust Fund, established under Idaho Code 4l-4908. This fund
provides insurance at the option of those who own or operate; aboveground
storage tanks, farm or residential tanks or any heating tank. Idaho Code
establishes two means of financing this fund; a twenty five dollar ($25)
initial application fee and a one cent ($.0l) per-gallon transfer fee on
delivery or storage of all petroleum products in the state of Idaho. Thislegislation pertains only to the transfer fee.        According to Idaho Code this transfer fee is to be suspended after
the director of the Department of Insurance has certified that the
unencumbered balance in the trust fund is more than thirty million dollars
($30,000,000). This measure would remove the suspension requirement and
change the distribution of the fee until the balance of the account has been
certified by the director to be twenty million dollars ($20,000,000).

This legislation redistribute the monies in the Idaho Petroleum Clean
Water Trust Fund account according to the following schedule:


  97% to the Restricted Highway Fund

  3% to Idaho Department of Parks and Recreation                   c=

                             FISCAL IMPACT
       None to the general fund.






                                CONTACT
Name: Stuart O. Davis
Agency: Idaho Association of Highway Districts
Phone: 345-5176

Statement of Purpose/Fiscal Impact         S 1136