Connecticut Senate Bill SB01113

Connecticut 2011 Regular Session

• Introduced: 3/2/11
• Refer: 3/2/11

Caption

An Act Establishing A Connecticut Commercial Tank Insurance Account.

Impact

One of the significant impacts of this bill is on state laws governing environmental regulation and financial accountability for oil storage facilities. Owners of such facilities will now be subject to a fee structure that supports the Commercial Tank Insurance Account, which aligns with federal mandates for financial responsibility under the federal Oil Pollution Act. This regulatory framework aims to minimize the environmental risks associated with oil storage and to ensure that adequate funds are available for remediation in the event of oil spills.

Summary

SB01113 aims to establish a Connecticut Commercial Tank Insurance Account, serving as a financial safety net for owners of commercial underground petroleum storage tanks. The legislation stipulates that this account will assist in meeting federal requirements for demonstrating financial responsibility related to the cleanup of oil discharges. Specifically, it is designed to help owners address liabilities, ensuring that they can compensate for potential damages arising from discharges from their tanks. The account is capped at $20 million, with funding sourced from fees levied on oil terminal facilities in Connecticut, ensuring the viability and sustainability of the fund.

Contention

During discussions around SB01113, points of contention arose regarding the burden of fees imposed on facility owners and the administrative processes for claim submissions. Concerns were raised about the fairness of these fees, especially for smaller operators, and whether the proposed fund would adequately address potential shortfalls in financial support for cleanups. Additionally, there were debates over the accountability measures in place to ensure that funds are used solely for their intended purpose, which is necessary for maintaining public trust and environmental protection.