HF3298

Purpose of the Bill

The purpose of this bill is to establish a reimbursement program for replacing underground petroleum storage tank systems that have pressurized single-walled steel piping in Minnesota. The bill aims to incentivize system upgrades that are compatible with newer fuel standards and enhance safety and environmental compliance.

Main Provisions

• Reimbursement Program: The bill introduces a program to reimburse owners for 50% of the costs associated with replacing eligible equipment at underground petroleum storage tank systems. The new equipment must be compatible with E25 or B20 fuels.
• Eligibility Criteria: The reimbursement applies to underground storage systems installed before the bill's effective date, specifically those with pressurized single-walled steel piping.
• Cost and Funding Limits:
  • Reimbursement is capped at $100,000 per eligible location.
  • Annual reimbursement expenditure is limited to $4,000,000.
  • An owner can receive reimbursement for only up to two locations per calendar year.

Significant Changes

• Inclusion of Eligible Equipment: Defined as components between the storage tank and the fuel dispenser, excluding items like the tanks themselves and certain site improvements.
• Contractor Qualifications: Replacements must be carried out by contractors registered under Minnesota regulations.
• Funding Specifications: The bill specifies detailed conditions for reimbursement, such as requiring multiple cost bids and determining cost reasonableness by a board.
• Fund Allocation Amendment: The bill amends existing statutes to include reimbursement of these costs as a permissible use of the petroleum tank release cleanup fund.
• Expiration: The reimbursement program is set to expire on June 30, 2036.

Relevant Terms

• Underground Petroleum Storage Tanks
• Pressurized Single-Walled Steel Piping
• E25 and B20 Fuel Compatibility
• Reimbursement Program
• Environmental Compliance
• Petroleum Tank Release Cleanup Fund