Stricken language would be deleted from and underlined language would be added to present law.
*JMB214* 01/24/2025 2:09:24 PM JMB214
State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1277 3
4
By: Representative Gramlich 5
By: Senator J. Boyd 6
7
For An Act To Be Entitled 8
AN ACT TO AMEND PAYMENTS FOR CORRECTIVE ACTION 9
REGARDING PETROLEUM STORAGE TANKS; TO ALLOW THIRD 10
PARTY CONSULTANTS OF OWNERS AND OPERATORS TO BE PAID 11
DIRECTLY FOR CORRECTIVE ACTION; AND FOR OTHER 12
PURPOSES. 13
14
15
Subtitle 16
TO AMEND PAYMENTS FOR CORRECTIVE ACTION 17
REGARDING PETROLEUM STORAGE TANKS; AND 18
TO ALLOW THIRD PARTY CONSULTANTS OF 19
OWNERS AND OPERATORS TO BE PAID DIRECTLY 20
FOR CORRECTIVE ACTION. 21
22
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23
24
SECTION 1. Arkansas Code § 8 -7-905(d)(3), concerning the purposes for 25
which moneys in the Petroleum Storage Tank Trust Fund may be expended, is 26
amended to read as follows: 27
(3) To pay reimbursement to owners and operators or third party 28
consultants of the owners and operators for taking corrective action or to 29
pay third parties for compensatory damages caused by accidental releases from 30
qualified storage tanks; 31
32
SECTION 2. Arkansas Code § 8 -7-907(a), concerning payments for 33
corrective action regarding petroleum storage tanks, is amended to read as 34
follows: 35
(a)(1)(A) No A payment for corrective action shall not be paid from 36 HB1277
2 01/24/2025 2:09:24 PM JMB214
the Petroleum Storage Tank Trust Fund until the owner or operator has 1
expended seven thousand five hundred dollars ($7,500) the deductible set by 2
the rule of the Division of Environmental Quality on corrective action for 3
the occurrence, except in cases in which the Director of the Division of 4
Environmental Quality is using emergency authority under § 8 -7-905(e). 5
(B) It is the intent of the General Assembly that this 6
initial level of expenditure be considered the equivalent of an insurance 7
policy deductible. 8
(2) Owners or operators of underground storage tanks must 9
demonstrate financial responsibility for the seven-thousand-five-hundred-10
dollar deductible for corrective actions. 11
12
SECTION 3. Arkansas Code § 8 -7-907(d), concerning payments for 13
corrective action regarding petroleum storage tanks, is amended to read as 14
follows: 15
(d)(1)(A) Payment for corrective action may be denied if the storage 16
tank owner or operator fails to report a release as required by rule 17
promulgated by the Arkansas Pollution Control and Ecology Commission, and the 18
failure to report the release causes a delay in the corrective action that 19
contributes to an adverse impact to the environment. The amount of the 20
deductible incurred by the owner or operator before the owner or operator is 21
eligible to receive payment for corrective action shall be established by 22
rule by the division with the advice and input of the Advisory Committee on 23
Petroleum Storage Tanks. 24
(B) However, the amount of the deductible shall not be 25
greater than thirty thousand dollars ($30,000). 26
(2)(A) The Arkansas Pollution Control and Ecology Commission, 27
with the advice and input of the Advisory Committee on Petroleum Storage 28
Tanks, shall provide through rule a deductible that is more than seven 29
thousand five hundred dollars ($7,500) but does not exceed thirty thousand 30
dollars ($30,000) for violations of rules of the division as identified at 31
the time of the request for payment for corrective action. 32
(B) The rule may differentiate the variation of the 33
deductible based on the provision or section of the commission rule that was 34
violated. 35
36 HB1277
3 01/24/2025 2:09:24 PM JMB214
SECTION 4. Arkansas Code § 8 -7-907, concerning payments for corrective 1
action regarding petroleum storage tanks, is amended to add an additional 2
subsection to read as follows: 3
(l) The commission may directly pay a third party consultant of an 4
owner or operator for corrective action taken on behalf of an owner or 5
operator. 6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36