HB1383
To Amend The Petroleum Storage Tank Trust Fund Act; And To Modify The Amount Of The Payment For Corrective Action.
AI-Generated Summary
This bill proposes amendments to the existing Petroleum Storage Tank Trust Fund Act in Arkansas. The primary change involves modifying the maximum amount of interim payments for corrective actions. Specifically, the bill seeks to increase the cap on these interim payments from ninety percent (90%) of one million five hundred thousand dollars ($1,500,000) to ninety percent (90%) of two million dollars ($2,000,000). The remaining ten percent (10%) of the total payment for corrective action would still be released only after the final completion and payment for the corrective action related to the specific incident. The bill aims to provide additional financial resources for petroleum storage tank cleanup efforts. It does not introduce new trust fund mechanisms or alter the overall responsibility for corrective actions. The purpose is to adjust the financial parameters of existing corrective action payments.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be owners and operators of petroleum storage tanks in Arkansas who are required to undertake corrective actions for releases from their tanks. By increasing the maximum interim payment amount available from the Petroleum Storage Tank Trust Fund, these individuals or entities may experience improved cash flow and potentially faster access to funds needed to address contamination, thereby easing the financial burden of cleanup operations.
Who Might Suffer?
The potential negative impact of this bill would primarily fall on the Petroleum Storage Tank Trust Fund itself, and by extension, potentially on other stakeholders who contribute to or rely on the fund. By increasing the maximum payout for corrective actions, the fund's reserves could be depleted more quickly, potentially leading to a reduction in available funds for future claims or requiring increased contributions from other sources in the future. If the fund's capacity is strained, it could indirectly affect the ability of other tank owners to receive timely assistance.