Senate Engrossed underground storage tanks; reimbursement State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SENATE BILL 1730 AN ACT amending sections 49-1015 and 49-1071, Arizona Revised Statutes; RELATING to underground storage tanks. (TEXT OF BILL BEGINS ON NEXT PAGE)
Senate Engrossed underground storage tanks; reimbursement
State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
SENATE BILL 1730
Senate Engrossed
underground storage tanks; reimbursement
State of Arizona
Senate
Fifty-seventh Legislature
First Regular Session
2025
SENATE BILL 1730
AN ACT
amending sections 49-1015 and 49-1071, Arizona Revised Statutes; RELATING to underground storage tanks.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona: Section 1. Section 49-1015, Arizona Revised Statutes, is amended to read: START_STATUTE49-1015. Underground storage tank revolving fund; use; purpose A. The underground storage tank revolving fund is established and shall be administered by the director. Monies in the fund are exempt from lapsing under section 35-190. notwithstanding section 49-1053, subsection l, on the DEPARTMENT'S approval of an application for preapproval, the department shall set aside from any other use or purpose any PREAPPROVED monies. B. The fund consists of monies appropriated by the legislature, underground storage tank tax revenues collected and distributed pursuant to section 49-1036, monies obtained from the fees imposed by this chapter and the rules adopted under this chapter and monies reimbursed to the fund by the department. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. C. Monies from the fund may be used for the following: 1. To provide state matching monies and to meet other obligations as prescribed by section 9003(h)(7)(B) of the solid waste disposal act (42 United States Code section 6991b(h)(7)(B)). 2. For all the reasonable and necessary costs incurred in taking corrective actions pursuant to section 49-1017 and noncorrective actions pursuant to section 49-1017.02. 3. For the costs of recovering the expenses of corrective actions pursuant to section 49-1017 and noncorrective actions pursuant to section 49-1017.02. 4. To provide reimbursement for eligible costs. 5. For the costs incurred in administering the regulatory requirements of this chapter. 6. To reimburse the department for the reasonable and necessary costs incurred by the department in administering the corrective action requirements of this chapter. 7. To reimburse the department for the reasonable and necessary costs incurred by the department in administering the underground storage tank site improvement program. 8. To reimburse the department for the reasonable and necessary costs incurred by the department in administering the fund. The department may not pay from the fund any costs, payments or other expenses that result from a contract awarded pursuant to this section unless the contract includes performance standards and contractual penalties for nonperformance or inadequate performance under the contract. D. The director shall reimburse the fund for any corrective action costs or noncorrective action costs that are paid out of the fund and that are subsequently recovered by the department. E. Monies in the fund may not be used to implement the water quality assurance revolving fund program pursuant to chapter 2, article 5 of this title. END_STATUTE Sec. 2. Section 49-1071, Arizona Revised Statutes, is amended to read: START_STATUTE49-1071. Noncorrective action tank site improvement; purposes; priority A. Subject to the availability of monies in the underground storage tank revolving fund that are annually allocated by the director for each of the following types of actions, an owner, operator or person that meets the requirements of section 49-1016, subsection C may request that the department provide monies for that person to conduct one or more of the following actions, up to a maximum of $300,000 per site: 1. Actions necessary to ensure that the underground storage tank, its piping and its under-dispenser containment comply with standards for new installations prescribed by section 49-1009 or other applicable federal requirements, including replacement of system components, up to a maximum of $200,000. 2. Removal of underground storage tanks for purposes of permanent closure or replacement, up to a maximum of $25,000 per tank. If petroleum contaminated media that require over-excavation are encountered during removal of the underground storage tank, up to an additional $15,000 per site is available for reimbursement. 3. Confirmation of a suspected release at a tank or site, up to a maximum of $20,000. 4. Obtaining a baseline assessment of a site as prescribed in section 49-1052, up to a maximum of $40,000. B. In determining the priority for requests under subsection A of this section, the director may consider the following factors: 1. The age, construction and operational history of the underground storage tank. 2. The hydrogeologic characteristics of the site where the underground storage tank is located and the surrounding area. 3. The proximity, quality and current and future uses of nearby surface water and groundwater. 4. The potential effects of residual contamination on nearby surface water and groundwater. 5. The degree of exposure. 6. The financial resources of the applicant. C. An application for funding and request for reimbursement under this section shall be on a form provided by the department and shall include: 1. Detailed information about the site, including the type, number and location of tanks. 2. Information about the owner and operator, including the type of financial responsibility. 3. A description of the evidence of any release or suspected release. 4. The proposed actions necessary to meet tank and system performance standards. D. Monies may not be provided under this section for work that takes place more than five hundred forty-five days after the date that monies are approved. E. An application for monies pursuant to subsection A, paragraph 1, 2 or 4 of this section may be filed with the department at any time but only those costs incurred after the department approves the application are eligible for reimbursement. For an application for monies pursuant to subsection A, paragraph 3 of this section, the department may reimburse costs incurred for work that takes place before the department's approval. The maximum amounts prescribed in this section apply to applications approved by the department whether before or after August 27, 2019. F. Applicants for reimbursement shall apply to the department within one year after the completion of work incurred pursuant to this section. For projects approved before September 1, 2025, applicants shall apply for reimbursement and submit all required documentation needed for cost reimbursement to the department within the later of February 1, 2026 or one year after the completion of work. From and after September 1, 2025, any applicant who has not timely submitted an application for reimbursement for eligible costs under this chapter shall lose eligibility for reimbursement of such costs. F. Notwithstanding any other provision of this section, for applications made pursuant to this section that are received by the department before September 30, 2020, the department may reimburse costs incurred for work conducted on or after October 1, 2020, including costs incurred for work that occurred before the department's final determination. END_STATUTE Sec. 3. Staffing; department of environmental quality The department of environmental quality shall fill all five unfilled full-time equivalent positions currently appropriated to the department of environmental quality to administer the underground storage tank program.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 49-1015, Arizona Revised Statutes, is amended to read:
START_STATUTE49-1015. Underground storage tank revolving fund; use; purpose
A. The underground storage tank revolving fund is established and shall be administered by the director. Monies in the fund are exempt from lapsing under section 35-190. notwithstanding section 49-1053, subsection l, on the DEPARTMENT'S approval of an application for preapproval, the department shall set aside from any other use or purpose any PREAPPROVED monies.
B. The fund consists of monies appropriated by the legislature, underground storage tank tax revenues collected and distributed pursuant to section 49-1036, monies obtained from the fees imposed by this chapter and the rules adopted under this chapter and monies reimbursed to the fund by the department. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.
C. Monies from the fund may be used for the following:
1. To provide state matching monies and to meet other obligations as prescribed by section 9003(h)(7)(B) of the solid waste disposal act (42 United States Code section 6991b(h)(7)(B)).
2. For all the reasonable and necessary costs incurred in taking corrective actions pursuant to section 49-1017 and noncorrective actions pursuant to section 49-1017.02.
3. For the costs of recovering the expenses of corrective actions pursuant to section 49-1017 and noncorrective actions pursuant to section 49-1017.02.
4. To provide reimbursement for eligible costs.
5. For the costs incurred in administering the regulatory requirements of this chapter.
6. To reimburse the department for the reasonable and necessary costs incurred by the department in administering the corrective action requirements of this chapter.
7. To reimburse the department for the reasonable and necessary costs incurred by the department in administering the underground storage tank site improvement program.
8. To reimburse the department for the reasonable and necessary costs incurred by the department in administering the fund. The department may not pay from the fund any costs, payments or other expenses that result from a contract awarded pursuant to this section unless the contract includes performance standards and contractual penalties for nonperformance or inadequate performance under the contract.
D. The director shall reimburse the fund for any corrective action costs or noncorrective action costs that are paid out of the fund and that are subsequently recovered by the department.
E. Monies in the fund may not be used to implement the water quality assurance revolving fund program pursuant to chapter 2, article 5 of this title. END_STATUTE
Sec. 2. Section 49-1071, Arizona Revised Statutes, is amended to read:
START_STATUTE49-1071. Noncorrective action tank site improvement; purposes; priority
A. Subject to the availability of monies in the underground storage tank revolving fund that are annually allocated by the director for each of the following types of actions, an owner, operator or person that meets the requirements of section 49-1016, subsection C may request that the department provide monies for that person to conduct one or more of the following actions, up to a maximum of $300,000 per site:
1. Actions necessary to ensure that the underground storage tank, its piping and its under-dispenser containment comply with standards for new installations prescribed by section 49-1009 or other applicable federal requirements, including replacement of system components, up to a maximum of $200,000.
2. Removal of underground storage tanks for purposes of permanent closure or replacement, up to a maximum of $25,000 per tank. If petroleum contaminated media that require over-excavation are encountered during removal of the underground storage tank, up to an additional $15,000 per site is available for reimbursement.
3. Confirmation of a suspected release at a tank or site, up to a maximum of $20,000.
4. Obtaining a baseline assessment of a site as prescribed in section 49-1052, up to a maximum of $40,000.
B. In determining the priority for requests under subsection A of this section, the director may consider the following factors:
1. The age, construction and operational history of the underground storage tank.
2. The hydrogeologic characteristics of the site where the underground storage tank is located and the surrounding area.
3. The proximity, quality and current and future uses of nearby surface water and groundwater.
4. The potential effects of residual contamination on nearby surface water and groundwater.
5. The degree of exposure.
6. The financial resources of the applicant.
C. An application for funding and request for reimbursement under this section shall be on a form provided by the department and shall include:
1. Detailed information about the site, including the type, number and location of tanks.
2. Information about the owner and operator, including the type of financial responsibility.
3. A description of the evidence of any release or suspected release.
4. The proposed actions necessary to meet tank and system performance standards.
D. Monies may not be provided under this section for work that takes place more than five hundred forty-five days after the date that monies are approved.
E. An application for monies pursuant to subsection A, paragraph 1, 2 or 4 of this section may be filed with the department at any time but only those costs incurred after the department approves the application are eligible for reimbursement. For an application for monies pursuant to subsection A, paragraph 3 of this section, the department may reimburse costs incurred for work that takes place before the department's approval. The maximum amounts prescribed in this section apply to applications approved by the department whether before or after August 27, 2019.
F. Applicants for reimbursement shall apply to the department within one year after the completion of work incurred pursuant to this section. For projects approved before September 1, 2025, applicants shall apply for reimbursement and submit all required documentation needed for cost reimbursement to the department within the later of February 1, 2026 or one year after the completion of work. From and after September 1, 2025, any applicant who has not timely submitted an application for reimbursement for eligible costs under this chapter shall lose eligibility for reimbursement of such costs.
F. Notwithstanding any other provision of this section, for applications made pursuant to this section that are received by the department before September 30, 2020, the department may reimburse costs incurred for work conducted on or after October 1, 2020, including costs incurred for work that occurred before the department's final determination. END_STATUTE
Sec. 3. Staffing; department of environmental quality
The department of environmental quality shall fill all five unfilled full-time equivalent positions currently appropriated to the department of environmental quality to administer the underground storage tank program.