Kansas 2023-2024 Regular Session

Kansas House Bill HB2159 Compare Versions

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11 Session of 2023
22 HOUSE BILL No. 2159
33 By Committee on Agriculture and Natural Resources
44 1-24
55 AN ACT concerning the department of health and environment; relating to
66 fees established for the regulation of wastewater treatment facilities,
77 water wells and underground injection control wells; providing for
88 additional sources of revenue for the water program management fund;
99 authorizing the secretary of health and environment to establish
1010 additional fees for the regulation of underground injection control
1111 wells; amending K.S.A. 65-166b, 65-4514 and 82a-1206 and K.S.A.
1212 2022 Supp. 55-1,117 and repealing the existing sections.
1313 Be it enacted by the Legislature of the State of Kansas:
1414 Section 1. K.S.A. 2022 Supp. 55-1,117 is hereby amended to read as
1515 follows: 55-1,117. (a) As used in this section, and K.S.A. 65-171d and
1616 K.S.A. 55-1,118 through 55-1,122, and amendments thereto:
1717 (1) "Company or operator" means any form of legal entity including,
1818 but not limited to, a corporation, limited liability company and limited or
1919 general partnerships.
2020 (2) "Secretary" means the secretary of health and environment.
2121 (3) "Underground porosity storage" means the storage of
2222 hydrocarbons in underground, porous and permeable geological strata
2323 which that have been converted to hydrocarbon storage.
2424 (b) For the purposes of protecting the health, safety and property of
2525 the people of the state, and preventing surface and subsurface water
2626 pollution and soil pollution detrimental to public health or to the plant,
2727 animal and aquatic life of the state, the secretary of health and
2828 environment shall adopt separate and specific rules and regulations
2929 establishing requirements, procedures and standards for the following:
3030 (1) Salt solution mining;
3131 (2) the safe and secure underground storage of liquid petroleum gas
3232 and hydrocarbons, other than natural gas in underground porosity storage;
3333 and
3434 (3) the safe and secure underground storage of natural gas in bedded
3535 salt.
3636 (c) Such rules and regulations shall include, but not be limited to:
3737 (1) Site selection criteria;
3838 (2) design and development criteria;
3939 (3) operation criteria;
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7676 (4) casing requirements;
7777 (5) monitoring and measurement requirements;
7878 (6) safety requirements, including public notification;
7979 (7) closure and abandonment requirements, including the financial
8080 requirements of subsection (f); and
8181 (8) long termlong-term monitoring.
8282 (d) (1) The secretary may adopt rules and regulations establishing
8383 fees for the following services:
8484 (A) Permitting, monitoring and inspecting salt solution mining
8585 operators;
8686 (B) permitting, monitoring and inspecting underground storage of
8787 liquid petroleum gas and hydrocarbons, other than natural gas in
8888 underground porosity storage; and
8989 (C) permitting, monitoring and inspecting underground storage of
9090 natural gas in bedded salt.
9191 (2) The fees collected under this section by the secretary shall be
9292 remitted by the secretary to the state treasurer in accordance with the
9393 provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of
9494 each such remittance, the state treasurer shall deposit the entire amount in
9595 the state treasury to the credit of the subsurface hydrocarbon storage fund.
9696 (e) The secretary or the secretary's duly authorized representative
9797 may impose on any holder of a permit issued pursuant to this section such
9898 requirements relating to inspecting, monitoring, investigating, recording
9999 and reporting as the secretary or representative deems necessary to
100100 administer the provisions of this section and rules and regulations adopted
101101 hereunder.
102102 (f) Any company or operator receiving a permit under the provisions
103103 of this act shall demonstrate annually to the department of health and
104104 environment evidence, satisfactory to the department, that such permit
105105 holders have financial ability to cover the cost of closure of such permitted
106106 facility as required by the department.
107107 (g) The secretary may enter into contracts for services from
108108 consultants and other experts for the purposes of assisting in the drafting
109109 of rules and regulations pursuant to this section.
110110 (h) (1) For a period of two years from July 1, 2001, or until the rules
111111 and regulations provided for in subsection (b)(3) are adopted, the injection
112112 of working natural gas into underground storage in bedded salt is
113113 prohibited, except that cushion gas may be injected into existing
114114 underground storage in bedded salt. Natural gas currently stored in such
115115 underground storage may be extracted.
116116 (2) Any existing underground storage of natural gas in bedded salt
117117 shall comply with the rules and regulations adopted under this section
118118 prior to the commencement of injection of working natural gas into such
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162162 underground storage.
163163 (3) Rules and regulations adopted under subsection (b)(3) shall be
164164 adopted on or before July 1, 2003.
165165 (i) No hydrocarbon storage shall be allowed in any underground
166166 formation if water within the formation contains less than 5,000
167167 milligrams per liter chlorides.
168168 (i) (1) The secretary shall adopt rules and regulations to establish
169169 fees for permitting, monitoring, testing, inspecting and regulating
170170 underground injection control class I wells. Such fees shall not exceed:
171171 (A) $6,500 per active, hazardous waste injection well;
172172 (B) $4,500 per active, non-hazardous waste injection well; or
173173 (C) $1,000 for any hazardous or non-hazardous waste injection well
174174 in monitoring or inactive status.
175175 (2) The secretary shall provide for a reduction in such fees for
176176 facilities already subject to fees under subsection (d).
177177 (j) The secretary shall adopt rules and regulations to establish fees
178178 for permitting, monitoring, testing, inspecting and regulating underground
179179 injection control class V wells, but in no case shall such fees be
180180 established for small-capacity, sanitary septic systems. Such fees shall not
181181 exceed $2,000 per well.
182182 (k) The secretary shall remit all moneys collected from fees
183183 established in subsections (i) and (j) to the state treasurer in accordance
184184 with the provisions of K.S.A. 75-4215, and amendments thereto. Upon
185185 receipt of each such remittance, the state treasurer shall deposit the entire
186186 amount in the state treasury to the credit of the subsurface hydrocarbon
187187 storage fund established pursuant to K.S.A. 55-1,118, and amendments
188188 thereto.
189189 Sec. 2. K.S.A. 65-166b is hereby amended to read as follows: 65-
190190 166b. (a) There is hereby created in the state treasury the water program
191191 management fund. The secretary shall remit to the state treasurer, in
192192 accordance with the provisions of K.S.A. 75-4215, and amendments
193193 thereto, all moneys collected or received by the secretary from the
194194 following sources:
195195 (1) Water pollution control permit system fees imposed pursuant to
196196 K.S.A. 65-166a, and amendments thereto;
197197 (2) operators of water supply system and wastewater treatment
198198 facility certification fees imposed pursuant to K.S.A. 65-4513, and
199199 amendments thereto;
200200 (3) water well contractor fees imposed pursuant to K.S.A. 82a-1206,
201201 and amendments thereto;
202202 (4) interest attributable to investment of moneys in the water program
203203 management fund;
204204 (3)(5) gifts, grants, reimbursements or appropriations intended to be
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248248 used for the purposes of the fund, but excluding federal grants and
249249 cooperative agreements; and
250250 (4)(6) any other moneys provided by law.
251251 Upon receipt of each such remittance, the state treasurer shall deposit in
252252 the state treasury any amount remitted pursuant to this subsection to the
253253 credit of the water program management fund.
254254 (b) Moneys in the water program management fund shall be
255255 expended for the following purposes:
256256 (1) Monitoring and investigating the quality of waters of the state;
257257 (2) payment of the state's share of the clean water act matching costs,
258258 as required by the federal clean water act, 33 U.S.C. § 1256(d);
259259 (3) payment for emergency action by the secretary as necessary or
260260 appropriate to assure that the public health or safety is not threatened
261261 whenever there is a release from a wastewater treatment facility;
262262 (4) payment of the administrative, technical and legal costs incurred
263263 by the secretary in carrying out the provisions of K.S.A. 65-159 through
264264 65-171y, 65-4501 through 65-4517 and 82a-1201 through 82a-1219, and
265265 amendments thereto, including the cost of any additional employees or
266266 increased general operating costs of the department attributable therefore;
267267 and
268268 (5) development of educational materials and programs for informing
269269 the public about water issues.
270270 (c) Expenditures from the water program management fund shall be
271271 made in accordance with appropriation acts upon warrants of the director
272272 of accounts and reports issued pursuant to vouchers approved by the
273273 secretary or a person designated by the secretary.
274274 (d) On or before the 10
275275 th
276276 day of each month, the director of accounts
277277 and reports shall transfer from the state general fund to the water program
278278 management fund interest earnings based on:
279279 (1) The average daily balance of moneys in the water program
280280 management fund for the preceding month; and
281281 (2) the net earnings rate of the pooled money investment portfolio for
282282 the preceding month.
283283 (e) The water program management fund shall be used for the
284284 purposes set forth in this act and for no other governmental purposes. It is
285285 the intent of the legislature that the fund shall remain intact and inviolate
286286 for the purposes set forth in this act, and moneys in the fund shall not be
287287 subject to the provisions of K.S.A. 75-3722, 75-3725a and 75-3726a, and
288288 amendments thereto.
289289 (f) The secretary shall prepare and deliver to the legislature, on or
290290 before the first day of each regular legislative session, a report which that
291291 summarizes all expenditures from the water program management fund,
292292 fund revenues and recommendations regarding the adequacy of the fund to
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336336 support necessary water program management programs.
337337 Sec. 3. K.S.A. 65-4514 is hereby amended to read as follows: 65-
338338 4514. (a) The secretary shall remit all moneys received by or for the
339339 secretary from fees, charges or penalties from the certification of operators
340340 of water supply systems and wastewater treatment facilities under the
341341 provisions of this act and the rules and regulations adopted hereunder to
342342 the state treasurer in accordance with the provisions of K.S.A. 75-4215,
343343 and amendments thereto. Upon receipt of each such remittance, the state
344344 treasurer shall deposit the entire amount in the state treasury to the credit
345345 of the state general fund water program management fund established
346346 pursuant to K.S.A. 65-166b, and amendments thereto.
347347 (b) On July 1, 1983, the director of accounts and reports shall transfer
348348 all moneys in the certification of operators of water supply systems and
349349 wastewater treatment facilities fee fund to the state general fund. All
350350 liabilities of the certification of operators of water supply systems and
351351 wastewater treatment facilities fee fund are hereby transferred to and
352352 imposed upon the state general fund. The certification of operators of
353353 water supply systems and wastewater treatment facilities fee fund is
354354 hereby abolished.
355355 Sec. 4. K.S.A. 82a-1206 is hereby amended to read as follows: 82a-
356356 1206. (a) Every well contractor desiring to engage in the business of
357357 constructing, reconstructing or treating water wells in this state shall make
358358 initial application for a license to the secretary. Every contractor making
359359 such application shall set out such information as may be required upon
360360 forms to be adopted and furnished by the secretary. The secretary shall
361361 charge an application fee as established by rules and regulations for the
362362 filing of such initial application by a contractor, and the secretary shall not
363363 act upon any application until such application fee has been paid.
364364 (b) All application fees and license fees collected hereunder shall be
365365 remitted to the state treasurer in accordance with the provisions of K.S.A.
366366 75-4215, and amendments thereto. Upon receipt of each such remittance,
367367 the state treasurer shall deposit the entire amount in the state treasury to
368368 the credit of the state general fund. On July 1, 1983, the director of
369369 accounts and reports shall transfer all moneys in the water well contractors
370370 licensing fund to the state general fund. All liabilities of the water well
371371 contractors licensing fund are hereby transferred to and imposed upon the
372372 state general fund. The water well contractors licensing fund is hereby
373373 abolished water program management fund established pursuant to K.S.A.
374374 65-166b, and amendments thereto.
375375 (c) A license to construct water wells shall be issued to any applicant
376376 if, under the standards set forth in K.S.A. 82a-1207, and amendments
377377 thereto, the secretary shall determine such applicant is qualified to conduct
378378 water well construction operations. In the granting of such licenses due
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422422 regard shall be given to the interest of the state of Kansas in the protection
423423 of its underground water resources. Application fees paid hereunder shall
424424 be retained by the secretary whether such initial license is issued or denied,
425425 but if denied, the license fee shall be refunded.
426426 (d) Applicants for licenses hereunder who are engaged in business as
427427 water well contractors in this state, if incorporated, shall submit evidence
428428 of current good standing with the registration requirements for
429429 corporations of the secretary of state.
430430 Sec. 5. K.S.A. 65-166b, 65-4514 and 82a-1206 and K.S.A. 2022
431431 Supp. 55-1,117 are hereby repealed.
432432 Sec. 6. This act shall take effect and be in force from and after its
433433 publication in the statute book.
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