SB 505: ENVIRONMENTAL CONTROL: Provides relative to the Motor Fuels Underground Storage Tank Trust Dedicated Fund Account. (7/1/26) (EN INCREASE SG EX See Note) - Louisiana

SB505 Original → SB505 Act 524 · 5 edits

MODERATE

This bill updates the Motor Fuels Underground Storage Tank Trust Dedicated Fund Account to increase funding limits and adjust application timelines. It raises the maximum single grant from $150,000 to $300,000 and the annual total cap from $3 million to $7.5 million, while also shifting the application windows to align with fiscal years. The legislation clarifies that grants are restricted to sites with single-wall tanks installed before December 20, 2008, and mandates that upgrades be completed within three years of program approval.

Scope change

The bill narrows eligibility to sites with single-wall tanks installed prior to December 20, 2008, and changes the application periods from calendar quarters to fiscal quarters.

FISCAL

Increased the maximum single grant amount from $150,000 to $300,000 and raised the annual total grant cap from $3 million to $7.5 million.

TIMELINE

Changed application periods from calendar quarters (Jan-Mar, Jul-Sep) to fiscal quarters (Jul-Sep, Jan-Mar) and updated the completion deadline to three years from program approval rather than three fiscal years after approval.

ELIGIBILITY

Added a specific eligibility requirement that grants are only available for single-wall underground storage tank systems installed before December 20, 2008.

REQUIREMENT

Clarified that an eligible applicant must be the natural person or entity that owns the specific facility where the upgrade will occur.

Mandated that applicants disclose the ownership structure of the underground storage tank project facility.

SB505 Enrolled → SB505 Original · 4 edits

MODERATE

The bill was renumbered and its title was shortened to remove specific statutory references, focusing instead on the fund's purpose. Substantively, the funding limits were increased from $3 million to $6 million annually, and the maximum single grant was raised from $150,000 to $300,000. The application period dates were adjusted, and the total number of grants allowed per year was reduced from 40 to 15 per application period while keeping the annual cap at 40. The deadline for completing upgrades was clarified to be within three fiscal years.

Scope change

The bill's scope regarding eligible applicants remains largely the same, requiring the applicant to be the owner of the facility, but the text was tightened to explicitly require disclosure of the ownership structure.

FISCAL

Increased the annual total grant limit from $3 million to $6 million and the single grant maximum from $150,000 to $300,000.

TIMELINE

Changed the application period dates from July-September and January-March to January-March and July-September, and adjusted the grant count limits to 15 per period and 40 per year.

REQUIREMENT

Clarified that upgrades must be completed within three fiscal years of approval.

TECHNICAL

Removed specific statutory citations from the title and bill text, and updated the bill number.

SB505 Reengrossed → SB505 Enrolled · 6 edits · May 25, 2026

MODERATE

This bill was finalized as an enrolled version, meaning it has been signed into law. The substantive policy changes include expanding the Tank Trust Account to cover third-party claims for environmental damages, updating grant eligibility to include older single-wall tanks, and adjusting funding limits and application rules to better manage the distribution of funds.

Scope change

The bill's scope expanded to explicitly allow the Tank Trust Account to pay third parties for damages caused by fuel releases, whereas the previous version focused primarily on funding upgrades.

ELIGIBILITY

Added eligibility for grants to sites with single-wall underground storage tanks installed before December 20, 2008, broadening the range of sites that can receive funding.

ENFORCEMENT

Added authority for the Tank Trust Account to make payments to third parties who win lawsuits against the state or tank owners for environmental damages, provided the owner was eligible at the time of the release.

FISCAL

Revised the total annual grant cap from three million dollars to seventy-five percent of the unobligated interest balance, changing how the total funding pool is calculated.

REQUIREMENT

Changed the maximum number of grants per year from a fixed limit of forty to a flexible limit set by the board, not to exceed forty.

TIMELINE

Updated the application period dates to align with calendar quarters (July-September and January-March) instead of specific day ranges.

TECHNICAL

Removed the 'Reengrossed' status and replaced it with 'Enrolled,' indicating the bill has passed all legislative stages and been signed by the Governor.

SB505 Engrossed → SB505 Reengrossed · 4 edits · May 19, 2026

MODERATE

The bill was reengrossed to correct a critical effective date error, changing the implementation date from August 1, 2026, to July 1, 2026. Additionally, the text was reorganized to clarify that grant limits are now set by the board rather than being fixed at specific dollar amounts, and the application period dates were swapped to align with the new fiscal year start.

Scope change

The bill's applicability was extended to sites receiving approval on or after July 1, 2026, and the effective date was moved forward by one month.

TIMELINE

The effective date was changed from August 1, 2026, to July 1, 2026, and a new provision was added to clarify the effective date if the bill is vetoed and overridden.

The specific dates for the grant application periods were swapped; the first quarter is now July 1 to September 30, and the third quarter is January 1 to March 31.

REQUIREMENT

The specific dollar limits for single grants ($300,000) and total annual grants ($6 million) were removed and replaced with language allowing the board to set these limits, subject to a maximum of 75% of the unobligated interest balance.

TECHNICAL

The bill text was restructured to add a new Section 2 regarding applicability and Section 3 regarding the effective date, replacing the previous digest-style summary at the end.

ENVIRONMENTAL CONTROL: Provides relative to the Motor Fuels Underground Storage Tank Trust Dedicated Fund Account. (7/1/26) (EN INCREASE SG EX See Note)

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