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H0099aa.........................................................by BUSINESS
PETROLEUM CLEAN WATER TRUST FUND - Amends existing law to increase the
unencumbered balance in the Petroleum Clean Water Trust Fund before the
imposition of the transfer fee shall be suspended; to increase the fund
balance amount that will allow the imposition of the transfer fee to be
reinstated; and to provide that the board of trustees of the trust fund may
order the State Treasurer to invest moneys.
02/02 House intro - 1st rdg - to printing
02/05 Rpt prt - to Bus
02/14 Rpt out - rec d/p - to 2nd rdg
02/15 2nd rdg - to 3rd rdg
02/21 Ret'd to Bus
02/26 Rpt out - to Gen Ord
02/27 Rpt out amen - to engros
02/28 Rpt engros - 1st rdg - to 2nd rdg as amen
03/01 2nd rdg - to 3rd rdg as amen
03/05 3rd rdg as amen - PASSED - 51-17-2
AYES -- Anderson, Bell, Bilbao, Black, Block, Bock, Boe, Bolz,
Brackett, Bradford, Chadderdon, Chavez, Chew, Collins, Crane, Durst,
Edmunson, Eskridge, Hagedorn, Hart, Henbest, Henderson, Jaquet,
Killen, King, Kren, LeFavour, Luker, Marriott, Mathews, Nielsen,
Nonini, Pasley-Stuart, Patrick, Pence, Ringo, Roberts, Ruchti,
Rusche, Sayler, Shepherd(2), Shepherd(8), Shively, Smith(30),
Snodgrass, Stevenson, Thayn, Trail, Wills, Wood(27), Mr. Speaker
NAYS -- Andrus, Barrett, Bayer, Bedke, Clark, Harwood, Labrador,
Lake, Loertscher, Mortimer, Moyle, Raybould, Ring, Schaefer, Shirley,
Vander Woude, Wood(35)
Absent and excused -- McGeachin, Smith(24)
Floor Sponsor - Nonini
Title apvd - to Senate
03/06 Senate intro - 1st rdg - to Transp
03/14 Rpt out - rec d/p - to 2nd rdg
03/15 2nd rdg - to 3rd rdg
03/19 3rd rdg - PASSED - 28-3-4
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Cameron,
Coiner, Corder, Darrington, Davis, Geddes, Goedde, Hammond, Heinrich,
Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, McGee,
McKenzie, Richardson, Schroeder, Siddoway, Stegner, Werk
NAYS -- Fulcher, McKague, Pearce
Absent and excused -- Burkett, Gannon, Malepeai, Stennett
Floor Sponsor - Little
Title apvd - to House
03/20 To enrol - Rpt enrol - Sp signed
03/21 Pres signed - To Governor
03/27 Governor signed
Session Law Chapter 194
Effective: 07/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 99
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO THE PETROLEUM CLEAN WATER TRUST FUND; AMENDING SECTION 41-4909,
3 IDAHO CODE, TO CORRECT A STATUTORY CITATION, TO INCREASE THE UNENCUMBERED
4 BALANCE IN THE TRUST FUND BEFORE THE IMPOSITION OF THE TRANSFER FEE SHALL
5 BE SUSPENDED AND TO INCREASE THE FUND BALANCE AMOUNT THAT WILL ALLOW THE
6 IMPOSITION OF THE TRANSFER FEE TO BE REINITIATED; AND AMENDING SECTION
7 41-4914, IDAHO CODE, TO ALLOW THE STATE ENDOWMENT FUND TO INVEST TRUST
8 FUND MONEYS, TO PROVIDE CORRECT TERMINOLOGY AND TO PROVIDE THAT THE BOARD
9 SHALL DETERMINE BY RESOLUTION WHETHER THE STATE TREASURER OR STATE ENDOW-
10 MENT FUND SHALL MANAGE THE INVESTMENT OF ANY OR ALL FUNDS.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Section 41-4909, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 41-4909. SOURCE OF TRUST FUND -- APPLICATION FEES -- APPLICATION FOR
15 ENROLLMENT -- TRANSFER FEES. (1) Every owner or operator of an underground
16 storage tank may, if he desires to apply to the trust fund to insure the
17 underground tank, make application for and pay into the trust fund an initial
18 application fee set by the administrator, but not to exceed twenty-five dol-
19 lars ($25.00) for each tank for which application for coverage is made.
20 (2) Every owner or operator of an aboveground storage tank may, if he
21 desires to apply to the trust fund to insure the aboveground tank, make appli-
22 cation for and pay into the trust fund an initial application fee set by the
23 administrator, but not to exceed twenty-five dollars ($25.00) for each tank
24 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 the administrator for the purpose of elicit-
37 ing reasonably available information as to the type and use of the storage
38 tank, the type of business enterprise of the tank owner or operator, the age
39 of the storage tank, the materials used in the construction of the tank and
40 the inside and outside protective coatings and other corrosion protective mea-
41 sures, leak detection methods, spill and overfill prevention methods of the
42 tank, the location of the tank and its proximity to roads and buildings, the
43 foundation and type of material used as a bedding and fill for the tank, any
2
1 available inspection records of the tank including the gallons of petroleum
2 products entered into the tank and the gallon dispersements from the tank, and
3 other information that is reasonably prudent in order to obtain a sufficient
4 body of statistical data to determine the relative hazards of various catego-
5 ries of tanks, the potential that future leaks or discharges may occur, and
6 the conditions under which cleanup costs and personal injury and property dam-
7 age costs may occur and vary in the severity of the release and the resultant
8 costs to the trust fund.
9 (6) The administrator shall act upon the application for insurance with
10 all reasonable promptness, and the administrator shall make such investiga-
11 tions of the applicant as the administrator deems advisable to determine if
12 the information contained in the application for insurance is accurate and
13 complete. The administrator shall determine if the applicant's storage tanks
14 meet all the eligibility requirements and promptly notify the applicant of the
15 acceptance or nonacceptance of the application for insurance. The absence of
16 unknown data requested on the application shall not preclude an applicant's
17 acceptance for coverage by the trust fund, if the applicant is otherwise eli-
18 gible for insurance under 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 (1¢) per gallon on the delivery or
22 storage of all petroleum products as defined in subsection (243) 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
30 or petroleum products which are first delivered or stored in this state in a
31 container of fifty-five (55) gallons or less if such container is intended to
32 be transferred to the ultimate consumer of the petroleum or petroleum prod-
33 ucts; or (b) petroleum or petroleum products delivered or stored in this state
34 for the purpose of packaging or repackaging into containers of fifty-five (55)
35 gallons or less if such container is intended to be transferred to the ulti-
36 mate 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 twentythirty-five million dollars
54 ($235,000,000). Effective the first day of the second month following the date
55 of such certification, the imposition of the transfer fee shall be suspended.
3
1 Thereafter, the director shall certify to the commission when the unencumbered
2 balance in the trust fund equals fifteen twenty-five million dollars
3 ($125,000,000). Effective the first day of the second month following the date
4 of such certification, the imposition of the transfer fee shall be
5 reinitiated.
6 SECTION 2. That Section 41-4914, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 41-4914. DEPOSIT AND INVESTMENT OF FUNDS -- INTEREST. The state treasurer
9 or the state endowment fund shall deposit or, on order of the administrator
10 board of trustees of the trust fund, invest any portion of the Idaho petroleum
11 clean water trust fund not needed for immediate or currently anticipated use,
12 in the manner provided by law. Interest earned by such invested portion of the
13 trust fund shall be collected by the state treasurer or the state endowment
14 fund and placed to the credit of the trust fund. The board shall determine by
15 resolution whether the state treasurer or state endowment fund shall manage
16 the investment of any or all funds.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
Moved by Mathews
Seconded by Snodgrass
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 99
1 AMENDMENT TO SECTION 2
2 On page 3 of the printed bill, delete lines 8 through 16 and insert:
3 "41-4914. DEPOSIT AND INVESTMENT OF FUNDS -- INTEREST. The state trea-
4 surer shall deposit or, on order of the administrator board of trustees of the
5 trust fund, invest any portion of the Idaho petroleum clean water trust fund
6 not needed for immediate or currently anticipated use, in the manner provided
7 by law. Interest earned by such invested portion of the trust fund shall be
8 collected by the state treasurer and placed to the credit of the trust fund.".
9 CORRECTION TO TITLE
10 On page 1, delete lines 7 through 10 and insert: "41-4914, IDAHO CODE, TO
11 PROVIDE THAT THE BOARD OF TRUSTEES MAY ORDER THE STATE TREASURER TO INVEST
12 MONEYS NOT NEEDED FOR IMMEDIATE OR CURRENTLY ANTICIPATED USE.".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 99, As Amended
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO THE PETROLEUM CLEAN WATER TRUST FUND; AMENDING SECTION 41-4909,
3 IDAHO CODE, TO CORRECT A STATUTORY CITATION, TO INCREASE THE UNENCUMBERED
4 BALANCE IN THE TRUST FUND BEFORE THE IMPOSITION OF THE TRANSFER FEE SHALL
5 BE SUSPENDED AND TO INCREASE THE FUND BALANCE AMOUNT THAT WILL ALLOW THE
6 IMPOSITION OF THE TRANSFER FEE TO BE REINITIATED; AND AMENDING SECTION
7 41-4914, IDAHO CODE, TO PROVIDE THAT THE BOARD OF TRUSTEES MAY ORDER THE
8 STATE TREASURER TO INVEST MONEYS NOT NEEDED FOR IMMEDIATE OR CURRENTLY
9 ANTICIPATED USE.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 41-4909, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 41-4909. 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 aboveground storage tank may, if he
20 desires to apply to the trust fund to insure the aboveground tank, make appli-
21 cation for and pay into the trust fund an initial application fee set by the
22 administrator, but not to exceed twenty-five dollars ($25.00) for each tank
23 for which application for coverage is made.
24 (3) Every owner or operator of a farm tank or residential tank may, if he
25 desires to apply to the trust fund to insure the tank, make application for
26 and pay into the trust fund an initial application fee set by the administra-
27 tor, but not to exceed twenty-five dollars ($25.00) for each tank for which
28 application for coverage is made.
29 (4) Every owner or operator of a heating tank may, if he desires to apply
30 to the trust fund to insure the tank, make application for and pay into the
31 trust fund an initial application fee set by the administrator, but not to
32 exceed five dollars ($5.00) for each tank for which application for coverage
33 is made.
34 (5) The application for insurance shall be made to the administrator on
35 forms furnished and prescribed by the administrator for the purpose of elicit-
36 ing reasonably available information as to the type and use of the storage
37 tank, the type of business enterprise of the tank owner or operator, the age
38 of the storage tank, the materials used in the construction of the tank and
39 the inside and outside protective coatings and other corrosion protective mea-
40 sures, leak detection methods, spill and overfill prevention methods of the
41 tank, the location of the tank and its proximity to roads and buildings, the
42 foundation and type of material used as a bedding and fill for the tank, any
43 available inspection records of the tank including the gallons of petroleum
2
1 products entered into the tank and the gallon dispersements from the tank, and
2 other information that is reasonably prudent in order to obtain a sufficient
3 body of statistical data to determine the relative hazards of various catego-
4 ries of tanks, the potential that future leaks or discharges may occur, and
5 the conditions under which cleanup costs and personal injury and property dam-
6 age costs may occur and vary in the severity of the release and the resultant
7 costs to the trust fund.
8 (6) The administrator shall act upon the application for insurance with
9 all reasonable promptness, and the administrator shall make such investiga-
10 tions of the applicant as the administrator deems advisable to determine if
11 the information contained in the application for insurance is accurate and
12 complete. The administrator shall determine if the applicant's storage tanks
13 meet all the eligibility requirements and promptly notify the applicant of the
14 acceptance or nonacceptance of the application for insurance. The absence of
15 unknown data requested on the application shall not preclude an applicant's
16 acceptance for coverage by the trust fund, if the applicant is otherwise eli-
17 gible for insurance under this chapter.
18 (7) In addition to the application fees received by the trust fund pursu-
19 ant to this section, the trust fund shall receive the revenue produced by the
20 imposition of a "transfer fee" of one cent (1¢) per gallon on the delivery or
21 storage of all petroleum products as defined in subsection (243) of section
22 41-4903, Idaho Code, delivered or stored within the state of Idaho. This
23 transfer fee is hereby imposed upon the first licensed distributor who
24 receives, as receipt is determined in section 63-2403, Idaho Code, a petroleum
25 product within this state for the privilege of engaging in the delivery or
26 storage of petroleum products whose delivery or storage may present the danger
27 of a discharge into the environment and thus create the liability to be
28 funded. The fee imposed by this subsection shall not apply to: (a) petroleum
29 or petroleum products which are first delivered or stored in this state in a
30 container of fifty-five (55) gallons or less if such container is intended to
31 be transferred to the ultimate consumer of the petroleum or petroleum prod-
32 ucts; or (b) petroleum or petroleum products delivered or stored in this state
33 for the purpose of packaging or repackaging into containers of fifty-five (55)
34 gallons or less if such container is intended to be transferred to the ulti-
35 mate consumer of the petroleum or petroleum products.
36 (8) The transfer fee shall be collected by the commission on all petro-
37 leum products delivered or stored within this state after April 1, 1990. This
38 transfer fee shall be in addition to any excise tax imposed on motor fuel or
39 other petroleum products and shall be remitted to the commission with the
40 distributor's monthly report as required in section 63-2406, Idaho Code. The
41 distributor may deduct from his monthly report those gallons of petroleum
42 products returned to a licensed distributor's refinery or pipeline terminal
43 storage or exported from the state when supported by proper documents approved
44 by the commission. For the purpose of carrying out its duties under the provi-
45 sions of this chapter, the commission shall have the powers and duties pro-
46 vided in sections 63-3038, 63-3039, 63-3042 through 63-3066, 63-3068, 63-3071,
47 and 63-3074 through 63-3078, Idaho Code, which sections are incorporated by
48 reference herein as though set out verbatim.
49 (9) No person shall be excused from liability for any duty or fee imposed
50 in this chapter for failure to obtain a distributor's license.
51 (10) The director shall certify to the commission when the unencumbered
52 balance in the trust fund equals twentythirty-five million dollars
53 ($235,000,000). Effective the first day of the second month following the date
54 of such certification, the imposition of the transfer fee shall be suspended.
55 Thereafter, the director shall certify to the commission when the unencumbered
3
1 balance in the trust fund equals fifteen twenty-five million dollars
2 ($125,000,000). Effective the first day of the second month following the date
3 of such certification, the imposition of the transfer fee shall be
4 reinitiated.
5 SECTION 2. That Section 41-4914, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 41-4914. DEPOSIT AND INVESTMENT OF FUNDS -- INTEREST. The state treasurer
8 shall deposit or, on order of the administrator board of trustees of the trust
9 fund, invest any portion of the Idaho petroleum clean water trust fund not
10 needed for immediate or currently anticipated use, in the manner provided by
11 law. Interest earned by such invested portion of the trust fund shall be col-
12 lected by the state treasurer and placed to the credit of the trust fund.
STATEMENT OF PURPOSE
RS 16599C1
This legislation will amend Idaho Code Sections 41-4909(7) and (10)
and Idaho Code Section 41-4914 to 1) clarify the definition of
petroleum products; 2) ensure the financial integrity of the trust
fund, thereby complying with federal and state financial assurance
laws by providing insurance to clean up petroleum storage tanks;
and 3) to allow the board of the Petroleum Clean Water Trust Fund
to determine by resolution whether the state treasurer or state
endowment fund shall manage the investments of the funds. These
changes are necessary to establish long-term financial stability
for petroleum storage tanks insurance and to meet the goals of the
state of Idaho to protect the environment and groundwater from
petroleum contamination from tanks through the use of insurance.
The Petroleum Clean Water Trust Fund has successfully insured
petroleum tanks throughout the state of Idaho, and the transfer fee
needs to be temporarily reinstated when the unencumbered balance in
the trust fund equals twenty-five million dollars ($25,000,000.00),
and the transfer fee suspended when the unencumbered balance in the
trust fund equals thirty-five million dollars ($35,000,000.00).
The current fifteen million dollar ($15,000,000.00) level to
reinstate the transfer fee is actuarially too low as the fund will
not be able to generate sufficient levels to remain solvent and
meet its statutory obligations.
FISCAL NOTE
There is no fiscal impact to the general fund.
Contact
Name: W. Hugh O'Riordan, Givens Pursley LLP
Petroleum Clean Water Trust Fund
Phone: 208-388-1255
STATEMENT OF PURPOSE/FISCAL NOTE H 99