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Illinois General Assembly· HB 3290Governor Approved

EPA-UST FUND-DEDUCTIBLES, the official text

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HB3290 Enrolled                     LRB104 11355 BDA 21443 b

1   AN ACT concerning safety.

2   Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4   Section 5. The Environmental Protection Act is amended by

5 changing Sections 57.8 and 57.9 as follows:

6   (415 ILCS 5/57.8)

7   Sec. 57.8. Underground Storage Tank Fund; payment; options

8 for State payment; deferred correction election to commence

9 corrective action upon availability of funds. If an owner or

10 operator is eligible to access the Underground Storage Tank

11 Fund pursuant to an Office of State Fire Marshal

12 eligibility/deductible final determination letter issued in

13 accordance with Section 57.9, the owner or operator may submit

14 a complete application for final or partial payment to the

15 Agency for activities taken in response to a confirmed

16 release. An owner or operator may submit a request for partial

17 or final payment regarding a site no more frequently than once

18 every 90 days.

19  (a) Payment after completion of corrective action

20 measures. The owner or operator may submit an application for

21 payment for activities performed at a site after completion of

22 the requirements of Sections 57.6 and 57.7, or after

23 completion of any other required activities at the underground
    HB3290 Enrolled   -2-  LRB104 11355 BDA 21443 b

1 storage tank site.

2   (1) In the case of any approved plan and budget for

3   which payment is being sought, the Agency shall make a

4   payment determination within 120 days of receipt of both

5   the complete application for payment and the report

6   documenting completion of the activities approved in the

7   plan, whichever is received later. Such determination

8   shall be considered a final decision. The Agency's review

9   shall be limited to generally accepted auditing and

10  accounting practices. In no case shall the Agency conduct

11  additional review of any plan which was completed within

12  the budget, beyond auditing for adherence to the

13  corrective action measures in the proposal. If the Agency

14  fails to approve the payment application within 120 days,

15  such application shall be deemed approved by operation of

16  law and the Agency shall proceed to reimburse the owner or

17  operator 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 60

23  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
    HB3290 Enrolled  -3-  LRB104 11355 BDA 21443 b

1   shall form a priority list for payment and shall notify

2   persons in such priority list monthly of the availability

3   of funds and when payment shall be made. Payment shall be

4   made to the owner or operator at such time as sufficient

5   funds become available for the costs associated with site

6   investigation and corrective action and costs expended for

7   activities performed where no proposal is required, if

8   applicable. Such priority list shall be available to any

9   owner or operator upon request. Priority for payment shall

10  be determined by the date the Agency receives a complete

11  request for partial or final payment. Upon receipt of

12  notification from the Agency that the requirements of this

13  Title have been met, the Comptroller shall make payment to

14  the owner or operator of the amount approved by the

15  Agency, if sufficient money exists in the Fund. If there

16  is insufficient money in the Fund, then payment shall not

17  be made. If the owner or operator appeals a final Agency

18  payment determination and it is determined that the owner

19  or operator is eligible for payment or additional payment,

20  the priority date for the payment or additional payment

21  shall be the same as the priority date assigned to the

22  original request for partial or final payment.

23  (4) Any deductible, as determined pursuant to the

24  Office of the State Fire Marshal's eligibility and

25  deductibility final determination in accordance with

26  Section 57.9, shall be subtracted from any payment invoice
    HB3290 Enrolled     -4-        LRB104 11355 BDA 21443 b

1   paid to an eligible owner or operator. Only one deductible

2   shall apply per underground storage tank site.

3   (5) In the event that costs are or will be incurred in

4   addition to those approved by the Agency, or after

5   payment, the owner or operator may submit successive plans

6   containing amended budgets. The requirements of Section

7   57.7 shall apply to any amended plans.

8   (6) For purposes of this Section, a complete

9   application shall consist of:

10  (A) A certification from a Licensed Professional

11  Engineer or Licensed Professional Geologist as

12  required under this Title and acknowledged by the

13  owner or operator.

14  (B) A statement of the amounts approved in the

15  budget and the amounts actually sought for payment

16  along with a certified statement by the owner or

17  operator that the amounts so sought were expended in

18  conformance with the approved budget.

19  (C) A copy of the Office of the State Fire

20  Marshal's eligibility and deductibility determination.

21  (D) Proof that approval of the payment requested

22  will not result in the limitations set forth in

23  subsection (g) of this Section being exceeded.

24  (E) A federal taxpayer identification number and

25  legal status disclosure certification on a form

26  prescribed and provided by the Agency.
    HB3290 Enrolled       -5-  LRB104 11355 BDA 21443 b

1   (F) If the Agency determined under subsection

2   (c)(3) of Section 57.7 of this Act that corrective

3   action must include a project labor agreement, a

4   certification from the owner or operator that the

5   corrective action was (i) performed under a project

6   labor agreement that meets the requirements of Section

7   25 of the Project Labor Agreements Act and (ii)

8   implemented in a manner consistent with the terms and

9   conditions of the Project Labor Agreements Act and in

10  full compliance with all statutes, regulations, and

11  Executive Orders as required under that Act and the

12  Prevailing Wage Act.

13  (b) Commencement of site investigation or corrective

14 action upon availability of funds. The Board shall adopt

15 regulations setting forth procedures based on risk to human

16 health or the environment under which the owner or operator

17 who has received approval for any budget plan submitted

18 pursuant to Section 57.7, and who is eligible for payment from

19 the Underground Storage Tank Fund pursuant to an Office of the

20 State Fire Marshal eligibility and deductibility

21 determination, may elect to defer site investigation or

22 corrective action activities until funds are available in an

23 amount equal to the amount approved in the budget. The

24 regulations shall establish criteria based on risk to human

25 health or the environment to be used for determining on a

26 site-by-site basis whether deferral is appropriate. The
    HB3290 Enrolled  -6-                LRB104 11355 BDA 21443 b

1 regulations also shall establish the minimum investigatory

2 requirements for determining whether the risk based criteria

3 are present at a site considering deferral and procedures for

4 the notification of owners or operators of insufficient funds,

5 Agency review of request for deferral, notification of Agency

6 final decisions, returning deferred sites to active status,

7 and earmarking of funds for payment.

8   (c) When the owner or operator requests indemnification

9 for payment of costs incurred as a result of a release of

10 petroleum from an underground storage tank, if the owner or

11 operator has satisfied the requirements of subsection (a) of

12 this Section, the Agency shall forward a copy of the request to

13 the Attorney General. The Attorney General shall review and

14 approve the request for indemnification if:

15  (1) there is a legally enforceable judgment entered

16  against the owner or operator and such judgment was

17  entered due to harm caused by a release of petroleum from

18  an underground storage tank and such judgment was not

19  entered as a result of fraud; or

20  (2) a settlement with a third party due to a release of

21  petroleum from an underground storage tank is reasonable.

22  (d) (1) Notwithstanding any other provision of this Title,

23 the Agency shall not approve payment to an owner or operator

24 from the Fund for costs of corrective action or

25 indemnification incurred during a calendar year in excess of

26 the following aggregate amounts based on the number of
    HB3290 Enrolled             -7-  LRB104 11355 BDA 21443 b

1 petroleum underground storage tanks owned or operated by such

2 owner or operator in Illinois.

3   Amount                                   Number of Tanks

4   $2,000,000 ............................ fewer than 101

5   $3,000,000 .............................. 101 or more

6   (2) (1) Costs incurred in excess of the aggregate amounts

7 set forth in paragraph (1) of this subsection shall not be

8 eligible for payment in subsequent years.

9   (3) (2) For purposes of this subsection, requests

10 submitted by any of the agencies, departments, boards,

11 committees, or commissions of the State of Illinois shall be

12 acted upon as claims from a single owner or operator.

13  (4) (3) For purposes of this subsection, owner or operator

14 includes (i) any subsidiary, parent, or joint stock company of

15 the owner or operator and (ii) any company owned by any parent,

16 subsidiary, or joint stock company of the owner or operator.

17  (e) Costs of corrective action or indemnification incurred

18 by an owner or operator which have been paid to an owner or

19 operator under a policy of insurance, another written

20 agreement, or a court order are not eligible for payment under

21 this Section. An owner or operator who receives payment under

22 a policy of insurance, another written agreement, or a court

23 order shall reimburse the State to the extent such payment

24 covers costs for which payment was received from the Fund. Any

25 monies received by the State under this subsection (e) shall

26 be deposited into the Fund.
    HB3290 Enrolled             -8-  LRB104 11355 BDA 21443 b

1   (f) (Blank.).

2   (g) The Agency shall not approve any payment from the Fund

3 to pay an owner or operator:

4   (1) for costs of corrective action incurred by such

5   owner or operator in an amount in excess of $1,500,000 per

6   occurrence; and

7   (2) for costs of indemnification of such owner or

8   operator in an amount in excess of $1,500,000 per

9   occurrence.

10  (h) Payment of any amount from the Fund for corrective

11 action or indemnification shall be subject to the State

12 acquiring by subrogation the rights of any owner, operator, or

13 other person to recover the costs of corrective action or

14 indemnification for which the Fund has compensated such owner,

15 operator, or person from the person responsible or liable for

16 the release.

17  (i) If the Agency refuses to pay or authorizes only a

18 partial payment, the affected owner or operator may petition

19 the Board for a hearing in the manner provided for the review

20 of permit decisions in Section 40 of this Act.

21  (j) Costs of corrective action or indemnification incurred

22 by an owner or operator prior to July 28, 1989, shall not be

23 eligible for payment or reimbursement under this Section.

24  (k) The Agency shall not pay costs of corrective action or

25 indemnification incurred before providing notification of the

26 release of petroleum in accordance with the provisions of this
    HB3290 Enrolled    -9-          LRB104 11355 BDA 21443 b

1 Title.

2   (l) Corrective action does not include legal defense

3 costs. Legal defense costs include legal costs for seeking

4 payment under this Title unless the owner or operator prevails

5 before the Board in which case the Board may authorize payment

6 of legal fees.

7   (m) The Agency may apportion payment of costs for plans

8 submitted under Section 57.7 if:

9         (1) the owner or operator was deemed eligible to

10  access the Fund for payment of corrective action costs for

11  some, but not all, of the underground storage tanks at the

12  site; and

13        (2) the owner or operator failed to justify all costs

14  attributable to each underground storage tank at the site.

15  (n) The Agency shall not pay costs associated with a

16 corrective action plan incurred after the Agency provides

17 notification to the owner or operator pursuant to item (7) of

18 subsection (b) of Section 57.7 that a revised corrective

19 action plan is required. Costs associated with any

20 subsequently approved corrective action plan shall be eligible

21 for reimbursement if they meet the requirements of this Title.

22 (Source: P.A. 98-109, eff. 7-25-13; revised 7-30-24.)

23  (415 ILCS 5/57.9)

24  Sec. 57.9. Underground Storage Tank Fund; eligibility and

25 deductibility.
    HB3290 Enrolled      - 10 - LRB104 11355 BDA 21443 b

1   (a) The Underground Storage Tank Fund shall be accessible

2 by owners and operators who have a confirmed release from an

3 underground storage tank or related tank system of a substance

4 listed in this Section. The owner or operator is eligible to

5 access the Underground Storage Tank Fund if the eligibility

6 requirements of this Title are satisfied and:

7   (1) Neither the owner nor the operator is the United

8   States Government.

9   (2) The tank does not contain fuel which is exempt

10  from the Motor Fuel Tax Law.

11  (3) The costs were incurred as a result of a confirmed

12  release of any of the following substances:

13  (A) "Fuel", as defined in Section 1.19 of the

14  Motor Fuel Tax Law.

15  (B) Aviation fuel.

16  (C) Heating oil.

17  (D) Kerosene.

18  (E) Used oil which has been refined from crude oil

19  used in a motor vehicle, as defined in Section 1.3 of

20  the Motor Fuel Tax Law.

21  (4) The owner or operator registered the tank and paid

22  all fees in accordance with the statutory and regulatory

23  requirements of the Gasoline Storage Act.

24  (5) The owner or operator notified the Illinois

25  Emergency Management Agency of a confirmed release, the

26  costs were incurred after the notification and the costs
    HB3290 Enrolled        - 11 - LRB104 11355 BDA 21443 b

1   were a result of a release of a substance listed in this

2   Section. Costs of corrective action or indemnification

3   incurred before providing that notification shall not be

4   eligible for payment.

5   (6) The costs have not already been paid to the owner

6   or operator under a private insurance policy, other

7   written agreement, or court order.

8   (7) The costs were associated with "corrective action"

9   of this Act.

10  If the underground storage tank which experienced a

11  release of a substance listed in this Section was

12  installed after July 28, 1989, the owner or operator is

13  eligible to access the Underground Storage Tank Fund if it

14  is demonstrated to the Office of the State Fire Marshal

15  the tank was installed and operated in accordance with

16  Office of the State Fire Marshal regulatory requirements.

17  Office of the State Fire Marshal certification is prima

18  facie evidence the tank was installed pursuant to the

19  Office of the State Fire Marshal regulatory requirements.

20  (b) For releases reported prior to June 8, 2010 (the

21 effective date of Public Act 96-908) this amendatory Act of

22 the 96th General Assembly, an owner or operator may access the

23 Underground Storage Tank Fund for costs associated with an

24 Agency approved plan and the Agency shall approve the payment

25 of costs associated with corrective action after the

26 application of a $10,000 deductible, except in the following
    HB3290 Enrolled  - 12 - LRB104 11355 BDA 21443 b

1 situations:

2   (1) For costs incurred prior to the effective date of

3   this amendatory Act of the 104th General Assembly, a A

4   deductible of $100,000 shall apply when none of the

5   underground storage tanks were registered prior to July

6   28, 1989, except in the case of underground storage tanks

7   used exclusively to store heating oil for consumptive use

8   on the premises where stored and which serve other than

9   farms or residential units, a deductible of $100,000 shall

10  apply when none of these tanks were registered prior to

11  July 1, 1992.

12  (2) For costs incurred prior to the effective date of

13  this amendatory Act of the 104th General Assembly, a A

14  deductible of $50,000 shall apply if any of the

15  underground storage tanks were registered prior to July

16  28, 1989, and the State received notice of the confirmed

17  release prior to July 28, 1989.

18  (3) For costs incurred prior to the effective date of

19  this amendatory Act of the 104th General Assembly, a A

20  deductible of $15,000 shall apply when one or more, but

21  not all, of the underground storage tanks were registered

22  prior to July 28, 1989, and the State received notice of

23  the confirmed release on or after July 28, 1989.

24  In cases where paragraph (1), (2), or (3) of this

25 subsection applies, costs incurred after the effective date of

26 this amendatory Act shall be subject to the $10,000
    HB3290 Enrolled  - 13 - LRB104 11355 BDA 21443 b

1 deductible, which shall be reduced by any deductible amount

2 applied to costs incurred prior to the effective date of this

3 amendatory Act of the 104th General Assembly.

4   For releases reported on or after June 8, 2010 (the

5 effective date of Public Act 96-908) this amendatory Act of

6 the 96th General Assembly, an owner or operator may access the

7 Underground Storage Tank Fund for costs associated with an

8 Agency approved plan, and the Agency shall approve the payment

9 of costs associated with corrective action after the

10 application of a $5,000 deductible.

11  A deductible shall apply annually for each site at which

12 costs were incurred under a claim submitted pursuant to this

13 Title, except that if corrective action in response to an

14 occurrence takes place over a period of more than one year, in

15 subsequent years, no deductible shall apply for costs incurred

16 in response to such occurrence.

17  (c) Eligibility and deductibility determinations shall be

18 made by the Office of the State Fire Marshal.

19  (1) When an owner or operator reports a confirmed

20  release of a regulated substance, the Office of the State

21  Fire Marshal shall provide the owner or operator with an

22  "Eligibility and Deductibility Determination" form. The

23  form shall either be provided on-site or within 15 days of

24  the Office of the State Fire Marshal receipt of notice

25  indicating a confirmed release. The form shall request

26  sufficient information to enable the Office of the State
    HB3290 Enrolled           - 14 - LRB104 11355 BDA 21443 b

1   Fire Marshal to make a final determination as to owner or

2   operator eligibility to access the Underground Storage

3   Tank Fund pursuant to this Title and the appropriate

4   deductible. The form shall be promulgated as a rule or

5   regulation pursuant to the Illinois Administrative

6   Procedure Act by the Office of the State Fire Marshal.

7   Until such form is promulgated, the Office of the State

8   Fire Marshal shall use a form which generally conforms

9   with this Act.

10  (2) Within 60 days of receipt of the "Eligibility and

11  Deductibility Determination" form, the Office of the State

12  Fire Marshal shall issue one letter enunciating the final

13  eligibility and deductibility determination, and such

14  determination or failure to act within the time prescribed

15  shall be a final decision appealable to the Illinois

16  Pollution Control Board.

17 (Source: P.A. 96-908, eff. 6-8-10; revised 7-30-24.)
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