HB390INTRODUCED Page 0 HB390 3PPR1VV-1 By Representatives Shirey, Stadthagen RFD: Commerce and Small Business First Read: 05-Mar-25 1 2 3 4 5 3PPR1VV-1 03/04/2025 KMS (L)ccr 2025-1128 Page 1 First Read: 05-Mar-25 SYNOPSIS: Under existing law, the Alabama Drycleaning Environmental Response Trust Fund Advisory Board is responsible for administering a dry cleaners' self-insurance fund for the investigation, assessment, and remediation of environmental contamination caused by dry cleaning operations. This bill would delete the requirement that the Alabama Department of Environmental Management Act prevent other units of federal, state, and local governments from becoming involved in contamination problems. This bill would also reduce the balance of monies the board is required to maintain in the Alabama Drycleaning Environmental Response Trust Fund from one million to two hundred fifty thousand dollars. A BILL TO BE ENTITLED AN ACT Relating to the Alabama Drycleaning Environmental Response Trust Fund Advisory Board; to amend Sections 22-30D-4 and 22-30D-7, Code of Alabama 1975, to delete the requirement 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HB390 INTRODUCED Page 2 and 22-30D-7, Code of Alabama 1975, to delete the requirement that the Alabama Department of Environmental Management prevent the involvement of other units of federal, state, and local governments in contamination problems; and to reduce the required minimum balance to be maintained in the Alabama Drycleaning Environmental Response Trust Fund from one million to two hundred fifty thousand dollars. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. Sections 22-30D-4 and 22-30D-7 of the Code of Alabama 1975, are amended to read as follows: "§22-30D-4 (a)(1) All owners and operators and all wholesale distributors shall elect by May 24, 2001, to be covered or not to be covered by this chapter and shall do so by notifying the department in writing that such the owner or operator or wholesale distributor elects to be covered or not to be covered by this chapter. Following May 24, 2001, any owner or operator or wholesale distributor who may have initially elected not to be covered by this chapter or who may have inadvertently failed to notify the department may notify the department that such the owner or operator or wholesale distributor has reconsidered and desires to be covered by the fund, but any such owner or operator or wholesale distributor shall, with its notice of request for coverage, shall be required to pay to the Department of Revenue the registration fees which that would otherwise have been due to the fund had such the owner or operator or wholesale distributor elected to be covered by this chapter prior to May 24, 2001. Coverage by this chapter shall be effective on the date that a written 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 HB390 INTRODUCED Page 3 this chapter shall be effective on the date that a written notice of an election to be covered is received by the department. The department shall maintain a listing of all owners or operators or wholesale distributors who shall have elected to be covered or not to be covered by this chapter and shall advise the board from time to time of the names of those persons. (2) Any owner or operator or wholesale distributor who shall elect elects not to be covered by this chapter or shall fail fails to notify the department that it has determined to reconsider within the times set forth above in subdivision (1) shall be relieved of any of the obligations imposed on owners or operators or wholesale distributors under this chapter, including any obligation to register or pay registration fees. (3) Notwithstanding any provisions of this chapter to the contrary, any owner or operator or wholesale distributor who shall so elect elects not to be covered by this chapter or shall fail fails to notify the department that it has determined to reconsider within the times set forth above in subdivision (1) shall thereafter permanently and irrevocably waive and relinquish any benefit, coverage, protection, payment, or waiver of liability otherwise afforded by this chapter. An election not to be covered by the fund or a failure to reconsider by any owner or operator or wholesale distributor who shall be is an individual, shall include and bind any relative by blood within the third degree of consanguinity or by marriage, and in the case of a corporation or other legal entity, any current or former subsidiary, division, stockholder, parent company, partner, member, 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 HB390 INTRODUCED Page 4 division, stockholder, parent company, partner, member, successor or assign, or any predecessor-in-title or successor-in-title. (4) If on May 31, 2002, the registration fees collected by the Department of Revenue from owners or operators and wholesale distributors who shall have elected to be covered by this chapter shall not have not generated total receipts in excess of one million dollars ($1,000,000), then in such event the fund shall terminate, the board shall refund to all owners or operators or wholesale distributors who shall have paid into the fund the pro rata portion of payments to such that date, less expense of charges against the fund, and thereafter the provisions of this chapter shall be null and void and of no further force or effect of law. (b) It is the intent of the Legislature that the monies in the fund will only be utilized to address contamination that is caused by drycleaning agents occurring at or on drycleaning facilities, abandoned drycleaning facilities, wholesale distribution facilities, or real property of impacted third parties or adjacent landowners, whether such the contamination occurred or was discovered before or after May 24, 2000; provided , that monies in the fund shall be used only for payment for costs of investigation, assessment, or remediation that which are incurred after May 24, 2000; and further provided , that this chapter and the fund created hereby by this chapter shall benefit only those owners or operators, wholesale distributors, or persons owning abandoned drycleaning facilities who shall have elected to be covered by this chapter and impacted third parties and adjacent 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 HB390 INTRODUCED Page 5 this chapter and impacted third parties and adjacent landowners impacted or adjacent to drycleaning facilities or wholesale distribution facilities of such the owners or operators or wholesale distributors. The board and the department shall jointly administer this chapter under the following criteria: (1) The department shall allow owners or operators, persons owning abandoned drycleaning facilities, wholesale distributors, impacted third parties, and adjacent landowners, and their engineers and contractors to deal with address contamination under the oversight of the department utilizing monies in the fund under the oversight of the board, including costs incurred for initial investigations in determining that contamination has actually occurred. The fund shall not be used to deal with address contamination at any facilities other than drycleaning facilities, abandoned drycleaning facilities, wholesale distribution facilities, or the real property of impacted third parties or adjacent landowners. (2) If the response actions to releases are conducted pursuant to 40 C.F.R. Part 300 or pursuant to regulations adopted by the department under subsection (c), the department shall not require any owner or operator, person owning any abandoned drycleaning facility, wholesale distributor, impacted third party, or adjacent landowner to: (i) Obtain any state permit or engage in closure, post-closure, or corrective action pursuant to AHWMMA; (ii) establish or maintain any financial assurance or other financial requirement; or (iii) otherwise become obligated to pay for any costs, except for the deductible set forth in Section 22-30D-7, in connection 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 HB390 INTRODUCED Page 6 the deductible set forth in Section 22-30D-7, in connection with contamination occurring at any drycleaning facility, abandoned drycleaning facility, wholesale distribution facility, or at the real property of impacted third parties or adjacent landowners which may have failed to operate as a permitted treatment, storage , or disposal facility as defined under AHWMMA. (3) To the fullest extent allowed by law, the department shall provide its oversight in such a manner that other units of federal, state, and local government, including the United States Environmental Protection Agency, do not become involved in contamination problems resulting from drycleaning facilities, abandoned drycleaning facilities, or wholesale distribution facilities. (4)(3) To the fullest extent allowed by law, the department shall make every reasonable effort to allow for such interim action as may be necessary to keep sites where contamination exists off of the national priorities list, as defined in 40 C.F.R. § 300.5. (5)(4) The department shall not seek out contamination because of the existence of the fund or the other provisions of this chapter. Monies shall be made available by the board for the use as contamination is discovered, whether such the discovery is made before or after May 24, 2000. (6)(5) Careful consideration shall be given by the department to remedial activities which may result in an overall reduction of risk to human health and the environment and in reduction of total costs of remediation. Such The remedial activities should receive consideration by the 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 HB390 INTRODUCED Page 7 remedial activities should receive consideration by the department as a high priority. (7)(6) The department, in its discretion, may allow the use of innovative technology to perform remedial activities. (c) In addition to the powers and duties specified in this chapter and in Sections 22-22A-1 to 22-22A-16, inclusive, the department shall adopt rules and regulations necessary to administer and enforce this chapter, it being the intent of the Legislature that contamination caused by drycleaning agents shall be managed solely in accordance with this chapter and the rules and regulations to be adopted. Consistent with these purposes, such the rules and regulations shall , at a minimum, shall establish or adopt the following standards, schedule, and criteria: (1) Establishing performance standards for drycleaning facilities and wholesale distribution facilities first brought into use on or after the effective date of regulations rules authorized by this subsection. Such The performance standards shall be effective when the rules and regulations adopted become final. The performance standards for new drycleaning facilities and wholesale distribution facilities shall allow the use of new technology as it becomes available and shall, at a minimum, shall include provisions which are at least as protective of human health and the environment as each of the following standards: a. A requirement that, notwithstanding any contrary provision of law, any person who generates a regulated waste at a drycleaning facility or wholesale distribution facility and which wastes contain any regulated quantity of drycleaning 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 HB390 INTRODUCED Page 8 and which wastes contain any regulated quantity of drycleaning agent, shall ensure delivery of all such wastes to a facility that is legally authorized to manage or recycle wastes that contain drycleaning agents. b. A prohibition of the release of wastewater containing any quantity of drycleaning agent from drycleaning facilities to any sanitary sewer or septic tank, any land or ground application thereof, or any discharge to the waters of this state. c. A requirement of compliance with the national emission standards for hazardous air pollutants for perchloroethylene drycleaning facilities promulgated adopted by the United States Environmental Protection Agency on September 22, 1993, including revisions and applicable regulations thereto. d. A requirement that all drycleaning agents or wastes containing drycleaning agents be stored in appropriate closed containers and handled so as to minimize the risk of spills or leaks. e. A requirement that dikes or other containment structures be installed around each drycleaning machine and each drycleaning agent or waste storage area, which structures shall be capable of containing a release of drycleaning agent. f. A requirement that those portions of all diked floor surfaces upon which any drycleaning agent may leak, spill, or otherwise be released be material impervious to drycleaning agents. g. A requirement that all drycleaning agents be delivered to each drycleaning machine or other storage 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 HB390 INTRODUCED Page 9 delivered to each drycleaning machine or other storage container located within a drycleaning facility by means of closed, direct-coupled delivery systems, but only after such the systems become generally available. h. A requirement for reporting of releases of a reportable quantity outside of containment of drycleaning agent occurring after May 24, 2000. (2) Adopting a schedule requiring the retrofitting of drycleaning facilities and wholesale distribution facilities in existence on or before May 24, 2000, in order to conform the drycleaning facility to the rules and regulations authorized by subdivision (1) and to implement the performance standards established pursuant to subdivision (1). The schedule may phase in the standards authorized by this subdivision at different times but shall make all such standards effective no later than May 24, 2005. This subdivision requiring retrofitting shall not require an owner or operator of a drycleaning facility existing on or before May 24, 2000, to replace an existing drycleaning unit unless required to do so by federal laws or rules and regulations promulgated adopted by the Environmental Protection Agency. (3) Establishing criteria for prompt reporting of suspected contamination or the discovery of contamination at drycleaning facilities, abandoned drycleaning facilities, wholesale distribution facilities, or on real property of impacted third parties or adjacent landowners, whether discovered before or after May 24, 2000, and procedures for initial investigation of such the contamination, if any, and determination of possible effects on or risk to human health 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 HB390 INTRODUCED Page 10 determination of possible effects on or risk to human health or the environment and necessary or appropriate emergency action, to assure that human health or safety is not threatened by such the contamination. (4) Establishing criteria to prioritize those sites at which contamination is reported to the department and which may require investigation, assessment, and, if necessary, remediation. The criteria shall include consideration of each of the following factors: a. The degree to which human health and the environment are actually affected by exposure to the contamination. b. The future risk to human health or the environment resulting from the contamination. c. The benefit to be derived from remediation compared to the cost of conducting such the remediation. d. The present and future use of an affected aquifer or surface water. e. The possibility of no further action. f. The effect that interim or immediate remedial measures will have on future costs. g. The amount of monies available in the fund. h. Such additional Additional factors as the director considers relevant or as required by other provisions of this chapter. (5) Establishing requirements for investigation, assessment, and, if necessary, remediation of contamination in the order of priority established by the department. (6) Establishing criteria under which a determination may be made by the department of the extent of contamination 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 HB390 INTRODUCED Page 11 may be made by the department of the extent of contamination at which: (i) no remediation is required at the site ,; or (ii) if remediation is necessary, the extent to which remediation shall be deemed completed ,; and (iii) that no further action is required. Criteria for determining completion of remediation shall include the factors set forth in subdivision (4). If contamination has or is suspected to have migrated from the site to real property of an adjacent landowner, investigation, assessment, and, if necessary, remediation of contamination will be determined under these criteria." "§22-30D-7 (a) Prior to the approval of an expenditure of any funds monies under this chapter with respect to payment for costs incurred for investigation, assessment, and, if necessary, remediation at a particular site, every owner or operator covered by this chapter, person owning any abandoned drycleaning facility eligible for coverage by this chapter, or impacted third party filing a request with the board for payment, shall accept responsibility for the first ten thousand dollars ($10,000), as a deductible amount, of the actual costs to be incurred with that particular site. Each wholesale distributor covered by this chapter shall accept responsibility for the first fifty thousand dollars ($50,000), as a deductible amount , of the actual cost to be incurred with a wholesale distribution facility. An adjacent landowner shall not be required to accept responsibility for any costs incurred at a site. (b) Payments from the fund may be obtained from the board by complying with the following procedure: 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 HB390 INTRODUCED Page 12 board by complying with the following procedure: (1) An owner or operator covered by this chapter, a person owning any abandoned drycleaning facility eligible for coverage by this chapter, or a wholesale distributor covered by this chapter may request payment from the fund for cost of investigation, assessment, and remediation above the applicable deductible set forth in subsection (a) incurred in connection with a contamination discovered before or after May 24, 2000, that has been reported to the board and the department by filing a request for reimbursement pursuant to the procedures established by the board ; provided, however that no. No payment shall be made from the fund for cost of investigation, assessment, and remediation incurred prior to May 24, 2000. An impacted third party or adjacent landowner may seek payment from the fund for cost of investigation, assessment, or remediation above the applicable deductible(s) deductible or deductibles set forth in subsection (a) incurred in connection with contamination by filing a request for payment pursuant to the procedures established by the board ; provided the. The board shall determine that : (i) the owner or operator covered by this chapter, person owning any abandoned drycleaning facility eligible for coverage by this chapter, or wholesale distributor covered by this chapter has failed or refused to engage in investigation, assessment, or remediation in connection with the contamination ,; and (ii) that the director has made an initial determination that the impact to the impacted third party or adjacent landowner poses a threat to the environment or the public health, safety, or welfare which warrants investigation, assessment, or remedial action 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 HB390 INTRODUCED Page 13 which warrants investigation, assessment, or remedial action in accordance with criteria established by this chapter and the rules and regulations adopted by the director. (2) The board shall not obligate the expenditure of funds from the fund in the amount in excess of two hundred fifty thousand dollars ($250,000) per fiscal year of the fund for costs of investigation, assessment, and remediation of contamination at any particular site, unless upon request by any party, including the department, the board first determines that such the excess expenditure is required to avoid an imminent and substantial endangerment to human health or the environment. (3) The board shall not obligate a distribution of monies from the fund that at any time would result in the diminution of the fund below a balance of one million dollars ($1,000,000) two hundred fifty thousand dollars ($250,000) unless an emergency exists that the board has determined constitutes an imminent and substantial endangerment to human health or the environment. In the event of an emergency as described herein, the board shall approve the payment of reasonable response costs to remove the imminent and substantial endangerment to human health or the environment. (4) The board shall not authorize distribution of fund monies to any of the following sites or facilities: a. Sites that are contaminated by drycleaning agents where the contamination at such the sites did not result from the operation of a drycleaning facility, abandoned drycleaning facility, or wholesale distribution facility. b. Sites that are not drycleaning facilities, abandoned 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 HB390 INTRODUCED Page 14 b. Sites that are not drycleaning facilities, abandoned drycleaning facilities, wholesale distribution facilities, or the real property of impacted third parties or adjacent landowners, but are contaminated by a release that resulted from drycleaning agents being transported to or from a drycleaning facility, abandoned drycleaning facility, or wholesale distribution facility. c. Any drycleaning facility, abandoned drycleaning facility, wholesale distribution facility, or any property of any impacted third party or adjacent landowner that has been, or is in the future, identified by the United States Environmental Protection Agency as a federal superfund site pursuant to 40 C.F.R. Part 300 et seq. d. Any drycleaning facility, abandoned drycleaning facility, wholesale distribution facility, or any real property of any impacted third party or adjacent landowner which has obtained a treatment, storage, or disposal permit pursuant to the federal Resource Conservation and Recovery Act (RCRA) or AHWMMA regulations. e. Any drycleaning facility, abandoned drycleaning facility, wholesale distribution facility, or any real property owned or leased by any owner or operator or wholesale distributor who shall elect elects not to be covered by the provisions of this chapter within the time(s) time or times required by this chapter or any real property of any impacted third party or adjacent landowner impacted by or adjacent to any such owner or operator or wholesale distributor. f. Any owner or operator, wholesale distributor, owner of any abandoned drycleaning facility, or impacted third party 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 HB390 INTRODUCED Page 15 of any abandoned drycleaning facility, or impacted third party who shall fail fails to pay or be delinquent in payment of the registration fees required by the provisions of this chapter." Section 2. This act shall become effective on October 1, 2025. 393 394 395 396