HB 18: Petroleum Storage Tank Amendments - Utah

Amended 1/23/2025 11:01:982 → Substitute #1 · 10 edits

MAJOR

This bill updates Utah's petroleum storage tank regulations to modernize definitions, clarify registration requirements for underground and aboveground tanks, and adjust fees and funding mechanisms. It creates a new restricted account to earn interest, modifies the environmental assurance fee based on fund cash balance, and expands eligibility for fund participation while clarifying liability rules. The bill also repeals an outdated section and makes technical amendments to align terminology throughout the code.

Scope change

The bill expands the regulatory scope to explicitly include aboveground petroleum storage tanks alongside underground tanks, clarifying that both types require registration and compliance with the same standards. It also broadens the definition of 'petroleum storage tank' to include voluntarily submitted tanks for fund participation.

DEFINITION

Updated definitions to clarify terms like 'underground' and 'petroleum' and explicitly define 'aboveground petroleum storage tank' as a tank less than 10% buried in the ground with specific capacity and usage criteria.

FISCAL

Created a new 'Petroleum Storage Tank Restricted Account' in the General Fund that earns interest, which must be deposited back into the account for program administration costs.

Modified the environmental assurance fee assessment to reduce the rate to 1/4 cent per gallon when the Petroleum Storage Tank Fund cash balance exceeds $60 million, with automatic reversion to 13/20 cent per gallon if the balance drops below $20 million.

REQUIREMENT

Changed registration requirements for aboveground petroleum storage tanks to require notification by June 30, 2022 for tanks installed on or before that date, and within 30 days after installation for newer tanks.

Modified fee structures for petroleum storage tanks and installation companies, including new annual fees based on facility throughput rates and installation company activity levels.

Updated loan provisions for the Petroleum Storage Tank Fund to support upgrading, replacing, or permanently closing underground tanks, with specific limits on loan amounts and terms.

ELIGIBILITY

Modified eligibility rules for participating in the Petroleum Storage Tank Fund, including provisions for historic contamination coverage that increases over time (20% per year up to 100% after 10 years of participation) for tanks that previously opted out.

ENFORCEMENT

Adjusted civil penalties for failure to register or provide notice, increasing late fees for tank owners/operators and clarifying penalty amounts for installation companies.

TECHNICAL

Repealed Section 19-6-401, which was an outdated provision that had been renumbered and amended in 1991.

Made technical amendments throughout the code to change 'underground storage tank' to 'petroleum storage tank' where appropriate and ensure consistent terminology.

Amended Excerpts 1/23/2025 11:01:982 → Amended 1/23/2025 11:01:982 · 4 edits

MODERATE

The bill text was reformatted and reorganized, with the main substantive content (definitions, fund provisions, and code amendments) remaining intact. The changes primarily involve structural adjustments to the bill's presentation rather than policy modifications.

Scope change

No substantive change to the bill's scope or applicability; the content remains focused on petroleum storage tank regulation in Utah.

TECHNICAL

Header and formatting were updated to reflect a substitute bill format with sponsor information and a long title section.

House committee amendment markers and line-by-line amendment notes were removed in favor of a clean bill text presentation.

A general description and highlighted provisions section was added to clarify the bill's purpose and key features.

Page numbering and timestamp formatting were adjusted to match standard legislative document conventions.

Enrolled → Amended Excerpts 1/23/2025 11:01:982 · 7 edits

MODERATE

This bill updates Utah's petroleum storage tank regulations to modernize definitions, expand coverage to aboveground tanks, adjust fee structures, and modify fund eligibility rules. Key changes include clarifying what constitutes a petroleum storage tank, updating registration and compliance requirements, revising environmental assurance fees based on fund cash balances, and adjusting penalty amounts and timelines for late payments.

Scope change

The bill expands the scope to explicitly include aboveground petroleum storage tanks in addition to underground tanks, and clarifies definitions to ensure consistent application across different tank types.

DEFINITION

Updated definitions to clarify 'petroleum storage tank' includes both underground and aboveground tanks, and added specific criteria for what qualifies as an aboveground petroleum storage tank.

FISCAL

Adjusted the environmental assurance fee assessment based on the Petroleum Storage Tank Fund cash balance, with thresholds changed from $50 million to $60 million for fee reduction and $20 million for fee reversion.

REQUIREMENT

Modified registration and notification timelines for underground and aboveground petroleum storage tanks, including new deadlines for aboveground tank registration and financial responsibility requirements.

ENFORCEMENT

Increased late payment penalties for petroleum storage tank fees from $60 to $100 per facility, and adjusted penalty amounts for underground storage tank installation company permit violations from $60 to $500 per tank.

ELIGIBILITY

Changed eligibility lapse timelines for non-payment from 60 days after July 1 to 30 days after the first install of the fiscal year, and modified the timeline for reinstating eligibility.

TIMELINE

Updated deadlines for corrective action plan submission from 'within seven days' to 'by no later than seven days after beginning corrective action' and adjusted billing payment deadlines to 'no later than 30 days from billing'.

TECHNICAL

Made technical amendments to align terminology, update references to current statutes, and conform language throughout the Petroleum Storage Tank Act chapters.

Introduced → Enrolled · 8 edits · Feb 28, 2025

MODERATE

This bill updates Utah's petroleum storage tank regulations to modernize definitions, clarify liability rules, and improve the financial management of the Petroleum Storage Tank Fund. It primarily adds a new Senate sponsor, updates formatting, and makes technical corrections to ensure consistency across the code.

Scope change

The bill's scope remains focused on regulating petroleum storage tanks, but definitions were broadened to include aboveground tanks and clarify what constitutes a 'responsible party' for liability purposes.

TECHNICAL

Added Senate Sponsor David P. Hinkins to the bill header, which was missing in the introduced version.

Made numerous technical and conforming amendments throughout the code to correct formatting, cross-references, and ensure consistency between sections.

DEFINITION

Updated definitions to explicitly include aboveground petroleum storage tanks alongside underground tanks, ensuring both are regulated under the same framework.

Clarified the definition of 'responsible party' to exclude certain financial owners who hold title primarily for security interests, aligning with federal standards.

FISCAL

Modified the Petroleum Storage Tank Restricted Account to explicitly state that interest earned on the account must be deposited back into the account, improving fund sustainability.

Modified the environmental assurance fee assessment based on the cash balance of the Petroleum Storage Tank Fund, allowing for fee reductions when the fund has sufficient reserves.

REQUIREMENT

Updated registration deadlines and notification requirements for both underground and aboveground petroleum storage tanks to ensure timely compliance.

ELIGIBILITY

Adjusted eligibility criteria for participation in the Environmental Assurance Program, including provisions for historic contamination coverage after five years of continuous participation.

Petroleum Storage Tank Amendments

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