LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6467 NOTE PREPARED: Jan 22, 2024
BILL NUMBER: HB 1242 BILL AMENDED: Jan 22, 2024
SUBJECT: Excess Liability Trust Fund.
FIRST AUTHOR: Rep. Morrison BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) The bill allows the Department of Environmental Management
(IDEM) to pay an Excess Liability Trust Fund claim to replace an underground petroleum storage tank being
decommissioned and replaced with an underground or aboveground petroleum storage tank. It provides that
remaining funds that have not been allocated at the end of the fiscal year shall roll over to the next year and
be used to decommission and replace underground petroleum storage tanks.
Effective Date: July 1, 2024.
Explanation of State Expenditures: The bill amends the “50% Cost Reimbursement for Decommissioning
or Replacing Qualified Underground Storage Tanks (UST)” program to allow the option of replacing a UST
with an aboveground tank. The bill will have an indeterminate impact on expenditures from the Excess
Liability Trust Fund. Current program expenditures are not yet known, as the program became effective on
July 1, 2023 (per SEA 246-2023), but expenditures are expected to meet the statutory caps. This bill may
reduce expenses for these claims, if aboveground tanks are less costly, or may allow more claims to be paid.
The bill also allows remaining funds from a fiscal year to roll over to the next fiscal year for the program.
IDEM reports that they have approved 36 unique facilities for decommissioning and 85 unique facilities for
both decommissioning and reinstallation [a total of 407 tank compartments to decommission and 287 tank
compartments to replace], but IDEM has not yet received any cost claims for reimbursement (as of December
19, 2023). IDEM expects these claims to meet the statutory caps for FY 2024, if submitted by the mid-June
deadline. If expenses for claims under the current law would meet the caps each fiscal year, the bill would
not increase expenditures.
HB 1242 1 [Caps are set for each fiscal year based on ownership categories: $10 M for applicants who own 1-12 tanks,
$7.5 M for applicants who own 13-100 tanks, and $2.5 M for applicants who own more than 100 tanks].
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Department of Environmental Management.
Local Agencies Affected:
Information Sources: Department of Environmental Management;
https://www.in.gov/idem/files/forms_olq_ust_decommission_reinstall_costs_instr.pdf;
https://www.in.gov/idem/files/forms_olq_ust_decommission_reinstall_eligibility_instr.pdf;
https://www.in.gov/idem/tanks/files/eltf_announcement_20230621_eltf_reimbursement.pdf;
https://www.in.gov/idem/tanks/files/records_energy_policy_act.pdf;
https://www.in.gov/idem/tanks/resources/data-and-reports/;
https://www.indianamap.org/datasets/103d6dee7d694b609c243efdb925a7ec/explore;
https://directank.com/comparing-aboveground-and-underground-storage-tanks/.
Fiscal Analyst: Heather Puletz, 317-234-9484.
HB 1242 2