SF3477

Purpose of the Bill

The bill aims to establish a reimbursement program for the replacement of outdated underground petroleum storage tank systems, specifically those with pressurized single-walled steel piping. It is intended to enhance environmental safety and compliance.

Main Provisions

• Reimbursement Program: The bill introduces a reimbursement program for the replacement of eligible equipment linked to underground petroleum storage tank systems.
• Eligible Costs: Eligible costs for reimbursement include replacement of equipment such as piping, pumps, and related electrical support, excluding storage tanks and site improvements.
• Compatibility Requirement: Replacement equipment must at least be compatible with E25 or B20 fuels.
• Owner Requirements: Owners must consider at least two bids and select the least expensive option for projects starting after January 1, 2026, to qualify for reimbursement.

Significant Changes to Existing Law

• Funding Allocation: The bill allows states’ petroleum tank release fund to be used specifically for reimbursing the costs associated with replacing the pressurized single-walled steel piping.
• Cost Limitations: There are limitations on the amount reimbursed per location ($100,000) and an annual cap of $4,000,000 for the program's total reimbursements.
• Annual Location Limit: Owners can only receive reimbursement for up to two eligible locations per year.

Relevant Terms

• Underground Petroleum Storage Tanks
• Pressurized Single-walled Steel Piping
• E25/B20 Fuel Compatibility
• Reimbursement Program
• Environmental Safety
• Cost Caps and Bids
• Contractor Requirements