HB1277
To Amend Payments For Corrective Action Regarding Petroleum Storage Tanks.
AI-Generated Summary
This bill amends provisions related to payments for corrective action concerning petroleum storage tanks in Arkansas. It revises the deductible amount that owners or operators must pay before receiving funds from the Petroleum Storage Tank Trust Fund. The bill initially establishes this deductible at seven thousand five hundred dollars ($7,500), which is intended to function as an insurance policy deductible. Owners and operators are required to demonstrate financial responsibility for this deductible. Furthermore, the bill introduces provisions where payments for corrective action could be denied if a release is not reported properly, leading to environmental delays. The deductible amount, which must be more than $7,500 but not exceed $30,000, will be established by rule by the Division of Environmental Quality with input from an advisory committee. This rule may also differentiate deductible amounts based on specific rule violations.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be the state of Arkansas, particularly the Petroleum Storage Tank Trust Fund, as it aims to ensure that owners and operators bear a greater initial financial responsibility for corrective actions. This could lead to a more sustainable fund for addressing environmental issues. Additionally, the Arkansas Pollution Control and Ecology Commission and the Division of Environmental Quality would benefit from having more defined parameters and potential for increased compliance due to the revised deductible structure.
Who Might Suffer?
The primary entities that would be negatively impacted by this bill are owners and operators of petroleum storage tanks. They would be required to cover a higher initial deductible amount for corrective actions, potentially increasing their out-of-pocket expenses. This could be particularly burdensome for smaller businesses or those with older or less compliant storage tank systems. Moreover, the possibility of denial of payment for corrective action due to reporting failures could also create significant financial and operational challenges for these entities.