State of Illinois
92nd General Assembly
Legislation

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92_HB2575ham002

 










                                           LRB9202460LDcsam01

 1                    AMENDMENT TO HOUSE BILL 2575

 2        AMENDMENT NO.     .  Amend House Bill 2575,  AS  AMENDED,
 3    by  replacing  everything  after the enacting clause with the
 4    following:

 5        "Section 5.  The Environmental Protection Act is  amended
 6    by changing Section 57.8 as follows:

 7        (415 ILCS 5/57.8)
 8        Sec.   57.8.  Underground  Storage  Tank  Fund;  payment;
 9    options for State payment; deferred  correction  election  to
10    commence  corrective action upon availability of funds. If an
11    owner or operator  is  eligible  to  access  the  Underground
12    Storage Tank Fund pursuant to an Office of State Fire Marshal
13    eligibility/deductible  final  determination letter issued in
14    accordance with Section  57.9,  the  owner  or  operator  may
15    submit a complete application for final or partial payment to
16    the  Agency  for  activities taken in response to a confirmed
17    release. An owner  or  operator  may  submit  a  request  for
18    partial  or final payment regarding a site no more frequently
19    than once every 90 days.
20        (a)  Payment  after  completion  of   corrective   action
21    measures. The owner or operator may submit an application for
22    payment  for  activities performed at a site after completion
 
                            -2-            LRB9202460LDcsam01
 1    of the requirements of  Sections  57.6  and  57.7,  or  after
 2    completion   of   any   other   required  activities  at  the
 3    underground storage tank site.
 4             (1)  In the case of any approved plan and budget for
 5        which payment is being sought, the Agency  shall  make  a
 6        payment  determination  within 120 days of receipt of the
 7        application.  Such determination shall  be  considered  a
 8        final  decision.  The Agency's review shall be limited to
 9        generally accepted auditing and accounting practices.  In
10        no case shall the Agency conduct additional review of any
11        plan  which  was  completed  within  the  budget,  beyond
12        auditing for adherence to the corrective action  measures
13        in  the  proposal.   If  the  Agency fails to approve the
14        payment application within  120  days,  such  application
15        shall  be  deemed  approved  by  operation of law and the
16        Agency shall proceed to reimburse the owner  or  operator
17        the   amount   requested   in  the  payment  application.
18        However, in no event shall the Agency reimburse the owner
19        or operator an amount greater than the amount approved in
20        the plan.
21             (2)  If  sufficient  funds  are  available  in   the
22        Underground  Storage  Tank Fund, the Agency shall, within
23        60 days, forward to the Office of the State Comptroller a
24        voucher  in  the  amount  approved  under   the   payment
25        application.
26             (3)  In  the  case of insufficient funds, the Agency
27        shall form  a priority list for payment and shall  notify
28        persons in such priority list monthly of the availability
29        of  funds  and when payment shall be made.  Payment shall
30        be made  to  the  owner  or  operator  at  such  time  as
31        sufficient   funds   become   available   for  the  costs
32        associated with corrective action and costs expended  for
33        activities  performed  where  no proposal is required, if
34        applicable.  Such priority list shall be available to any
 
                            -3-            LRB9202460LDcsam01
 1        owner or operator  upon  request.  Priority  for  payment
 2        shall  be  determined  by  the date the Agency receives a
 3        complete request for  partial  or  final  payment.   Upon
 4        receipt   of   notification  from  the  Agency  that  the
 5        requirements of this Title have been met, the Comptroller
 6        shall make payment to the owner or operator of the amount
 7        approved by the Agency, if sufficient money exists in the
 8        Fund.  If there is insufficient money in the  Fund,  then
 9        payment  shall  not  be  made.   If the owner or operator
10        appeals a final Agency payment determination  and  it  is
11        determined  that  the  owner  or operator is eligible for
12        payment or additional payment, the priority date for  the
13        payment  or  additional  payment shall be the same as the
14        priority  date  assigned  to  the  original  request  for
15        partial or final payment.
16             (4)  Any deductible, as determined pursuant  to  the
17        Office  of  the  State  Fire  Marshal's  eligibility  and
18        deductibility  final  determination  in  accordance  with
19        Section  57.9,  shall  be  subtracted  from  any  payment
20        invoice  paid to an eligible owner or operator.  Only one
21        deductible shall apply per underground storage tank site.
22             (5)  In the event that costs are or will be incurred
23        in addition to those approved by  the  Agency,  or  after
24        payment,  the  owner  or  operator  may submit successive
25        plans containing amended budgets.   The  requirements  of
26        Section 57.7 shall apply to any amended plans.
27             (6)  For   purposes  of  this  Section,  a  complete
28        application shall consist of:
29                  (A)  A   certification    from    a    Licensed
30             Professional  Engineer  as required under this Title
31             and acknowledged by the owner or operator.
32                  (B)  A statement of the amount approved in  the
33             plan  and  the  amount  actually  sought for payment
34             along with a certified statement that the amount  so
 
                            -4-            LRB9202460LDcsam01
 1             sought  shall  be  expended  in conformance with the
 2             approved budget.
 3                  (C)  A copy of the Office  of  the  State  Fire
 4             Marshal's      eligibility     and     deductibility
 5             determination.
 6                  (D)  Proof  that  approval   of   the   payment
 7             requested  will  not  result  in the limitations set
 8             forth  in  subsection  (g)  of  this  Section  being
 9             exceeded.
10                  (E)  A federal taxpayer  identification  number
11             and  legal status disclosure certification on a form
12             prescribed and provided by the Agency.
13        (b)  Commencement of corrective action upon  availability
14    of  funds.  The  Board  shall adopt regulations setting forth
15    procedures based on risk to human health or  the  environment
16    under  which  the owner or operator who has received approval
17    for any budget plan submitted pursuant to Section  57.7,  and
18    who is eligible for payment from the Underground Storage Tank
19    Fund  pursuant  to  an  Office  of  the  State  Fire  Marshal
20    eligibility  and  deductibility  determination,  may elect to
21    defer   site   classification,   low   priority   groundwater
22    monitoring,  or  remediation  activities  until   funds   are
23    available  in  an  amount equal to the amount approved in the
24    budget plan.  The regulations shall establish criteria  based
25    on  risk  to  human  health or the environment to be used for
26    determining on  a  site-by-site  basis  whether  deferral  is
27    appropriate.    The  regulations  also  shall  establish  the
28    minimum  investigatory  requirements  for determining whether
29    the risk based criteria are present  at  a  site  considering
30    deferral  and  procedures  for  the notification of owners or
31    operators of insufficient funds, Agency review of request for
32    deferral, notification of Agency final  decisions,  returning
33    deferred  sites to active status, and earmarking of funds for
34    payment.
 
                            -5-            LRB9202460LDcsam01
 1        (c)  When the owner or operator requests  indemnification
 2    for  payment  of  costs  incurred as a result of a release of
 3    petroleum from an underground storage tank, if the  owner  or
 4    operator  has satisfied the requirements of subsection (a) of
 5    this Section, the Agency shall forward a copy of the  request
 6    to  the  Attorney General.  The Attorney General shall review
 7    and approve the request for indemnification if:
 8             (1)  there is a legally enforceable judgment entered
 9        against the owner  or  operator  and  such  judgment  was
10        entered due to harm caused by a release of petroleum from
11        an  underground  storage  tank  and such judgment was not
12        entered as a result of fraud; or
13             (2)  a settlement  with  a  third  party  due  to  a
14        release  of petroleum from an underground storage tank is
15        reasonable.
16        (d)  Notwithstanding any other provision of  this  Title,
17    the  Agency shall not approve payment to an owner or operator
18    from  the  Fund   for   costs   of   corrective   action   or
19    indemnification  incurred during a calendar year in excess of
20    the following  aggregate  amounts  based  on  the  number  of
21    petroleum underground storage tanks owned or operated by such
22    owner or operator in Illinois.
23             Amount                               Number of Tanks
24             $1,000,000............................fewer than 101
25             $3,000,000 $2,000,000....................101 or more
26             (1)  Costs  incurred  in  excess  of  the  aggregate
27        amounts  set  forth  in  paragraph (1) of this subsection
28        shall not be eligible for payment in subsequent years.
29             (2)  For  purposes  of  this  subsection,   requests
30        submitted  by  any  of the agencies, departments, boards,
31        committees or commissions of the State of Illinois  shall
32        be acted upon as claims from a single owner or operator.
33             (3)  For  purposes  of  this  subsection,  owner  or
34        operator  includes  (i)  any subsidiary, parent, or joint
 
                            -6-            LRB9202460LDcsam01
 1        stock company of the  owner  or  operator  and  (ii)  any
 2        company  owned  by any parent, subsidiary, or joint stock
 3        company of the owner or operator.
 4        (e)  Costs  of  corrective  action   or   indemnification
 5    incurred  by  an owner or operator which have been paid to an
 6    owner or  operator  under  a  policy  of  insurance,  another
 7    written  agreement,  or  a  court  order are not eligible for
 8    payment  under  this  Section.   An  owner  or  operator  who
 9    receives payment under a policy of insurance, another written
10    agreement, or a court order shall reimburse the State to  the
11    extent  such  payment  covers  costs  for  which  payment was
12    received from the Fund.  Any monies  received  by  the  State
13    under this subsection (e) shall be deposited into the Fund.
14        (f)  Until  the  Board  adopts  regulations  pursuant  to
15    Section 57.14, handling charges are eligible for payment only
16    if  they  are  equal to or less than the amount determined by
17    the following table:
18        Subcontract or field      Eligible Handling Charges
19        Purchase Cost             as a Percentage of Cost

20        $0 - $5,000...........................................12%
21        $5,001 - $15,000.............$600+10% of amt. over $5,000
22        $15,001 - $50,000...........$1600+8% of amt. over $15,000
23        $50,001 - $100,000..........$4400+5% of amt. over $50,000
24        $100,001 - $1,000,000......$6900+2% of amt. over $100,000
25        (g)  The Agency shall not approve any  payment  from  the
26    Fund to pay an owner or operator:
27             (1)  for costs of corrective action incurred by such
28        owner  or  operator  in an amount in excess of $1,000,000
29        per occurrence; and
30             (2)  for costs of indemnification of such  owner  or
31        operator  in  an  amount  in  excess  of  $1,000,000  per
32        occurrence.
33        (h)  Payment  of  any amount from the Fund for corrective
34    action or indemnification  shall  be  subject  to  the  State
 
                            -7-            LRB9202460LDcsam01
 1    acquiring  by  subrogation the rights of any owner, operator,
 2    or other person to recover the costs of corrective action  or
 3    indemnification  for  which  the  Fund  has  compensated such
 4    owner, operator, or person from  the  person  responsible  or
 5    liable for the release.
 6        (i)  If  the  Agency  refuses to pay or authorizes only a
 7    partial payment, the affected owner or operator may  petition
 8    the Board for a hearing in the manner provided for the review
 9    of permit decisions in Section 40 of this Act.
10        (j)  Costs   of   corrective  action  or  indemnification
11    incurred by an owner or operator  prior  to  July  28,  1989,
12    shall not be eligible for payment or reimbursement under this
13    Section.
14        (k)  The  Agency shall not pay costs of corrective action
15    or indemnification incurred before providing notification  of
16    the release of petroleum in accordance with the provisions of
17    this Title.
18        (l)  Corrective  action  does  not  include legal defense
19    costs.  Legal defense costs include legal costs  for  seeking
20    payment  under  this  Title  unless  the  owner  or  operator
21    prevails  before  the  Board  in  which  case  the  Board may
22    authorize payment of legal fees.
23        (m)  The Agency may apportion payment of costs for  plans
24    submitted under Section 57.7(c)(4)(E)(iii) if:
25             (1)  the  owner  or  operator was deemed eligible to
26        access the Fund for payment of  corrective  action  costs
27        for  some,  but not all, of the underground storage tanks
28        at the site; and
29             (2)  the owner or operator  failed  to  justify  all
30        costs  attributable  to  each underground storage tank at
31        the site.
32    (Source: P.A. 91-357, eff. 7-29-99.)

33        Section  10.  The Environmental Impact Fee Law is amended
 
                            -8-            LRB9202460LDcsam01
 1    by changing Section 390 as follows:

 2        (415 ILCS 125/390)
 3        (Section scheduled to be repealed on January 1, 2003)
 4        Sec. 390.  Repeal.  This Article is repealed  on  January
 5    1, 2013 2003.
 6    (Source: P.A. 89-428, eff. 1-1-96; 89-457, eff. 5-22-96.)

 7        Section  99.  Effective date.  This Act takes effect upon
 8    becoming law.".

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