Senate Bill sb1318

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2005                                  SB 1318

    By the Committee on Environmental Preservation





    592-728A-05

  1                      A bill to be entitled

  2         An act relating to underground petroleum

  3         storage tanks; amending s. 376.3071, F.S.;

  4         directing the Department of Environmental

  5         Protection to encumber petroleum remediation

  6         funds uniformly throughout the state's fiscal

  7         year; providing for a prioritization within a

  8         priority scoring range; providing that limited

  9         source removal projects approved outside the

10         established priority order may be funded from

11         the Inland Protection Trust Fund; providing a

12         priority order for these projects; limiting the

13         use of the funds to certain specified purposes;

14         limiting the amount of money allocated to such

15         projects each fiscal year; providing for the

16         repeal of the law on a specified date; amending

17         s. 376.30713, F.S.; providing that the

18         preapproved advanced cleanup provisions may

19         apply to certain discharges under the petroleum

20         cleanup participation program; amending s.

21         376.3075, F.S.; authorizing the Inland

22         Protection Financing Corporation to borrow

23         money and issue bonds to pay for large-scale

24         cleanups that are eligible for state funding;

25         extending the termination date of the

26         corporation; providing an effective date.

27  

28         WHEREAS, all of Florida's underground petroleum storage

29  tank systems must be upgraded prior to January 1, 2010, and

30         WHEREAS, it is in the state's best interest to

31  encourage early replacement of such systems, and

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1         WHEREAS, it is in the state's best interest to provide

 2  financial assistance for limited source removal at the time of

 3  the system's replacement, and

 4         WHEREAS, it is in the state's best interest to provide

 5  for a method of payment for large-scale cleanups in the future

 6  so as to minimize the impact on other cleanups that are

 7  underway, NOW, THEREFORE,

 8  

 9  Be It Enacted by the Legislature of the State of Florida:

10  

11         Section 1.  Subsections (4) and (5) of section

12  376.3071, Florida Statutes, are amended to read:

13         376.3071  Inland Protection Trust Fund; creation;

14  purposes; funding.--

15         (4)  USES.--Whenever, in its determination, incidents

16  of inland contamination related to the storage of petroleum or

17  petroleum products may pose a threat to the environment or the

18  public health, safety, or welfare, the department shall

19  obligate moneys available in the fund to provide for:

20         (a)  Prompt investigation and assessment of

21  contamination sites.

22         (b)  Expeditious restoration or replacement of potable

23  water supplies as provided in s. 376.30(3)(c)1.

24         (c)  Rehabilitation of contamination sites, which shall

25  consist of cleanup of affected soil, groundwater, and inland

26  surface waters, using the most cost-effective alternative that

27  is technologically feasible and reliable and that provides

28  adequate protection of the public health, safety, and welfare

29  and minimizes environmental damage, in accordance with the

30  site selection and cleanup criteria established by the

31  department under subsection (5), except that nothing herein

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  shall be construed to authorize the department to obligate

 2  funds for payment of costs which may be associated with, but

 3  are not integral to, site rehabilitation, such as the cost for

 4  retrofitting or replacing petroleum storage systems.

 5         (d)  Maintenance and monitoring of contamination sites.

 6         (e)  Inspection and supervision of activities described

 7  in this subsection.

 8         (f)  Payment of expenses incurred by the department in

 9  its efforts to obtain from responsible parties the payment or

10  recovery of reasonable costs resulting from the activities

11  described in this subsection.

12         (g)  Payment of any other reasonable costs of

13  administration, including those administrative costs incurred

14  by the Department of Health in providing field and laboratory

15  services, toxicological risk assessment, and other assistance

16  to the department in the investigation of drinking water

17  contamination complaints and costs associated with public

18  information and education activities.

19         (h)  Establishment and implementation of the compliance

20  verification program as authorized in s. 376.303(1)(a),

21  including contracting with local governments or state agencies

22  to provide for the administration of such program through

23  locally administered programs, to minimize the potential for

24  further contamination sites.

25         (i)  Funding of the provisions of ss. 376.305(6) and

26  376.3072.

27         (j)  Activities related to removal and replacement of

28  petroleum storage systems, exclusive of costs of any tank,

29  piping, dispensing unit, or related hardware, if soil removal

30  is preapproved as a component of site rehabilitation and

31  requires removal of the tank where remediation is conducted

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  under s. 376.30711 or if such activities were justified in an

 2  approved remedial action plan performed pursuant to subsection

 3  (12).

 4         (k)  Activities related to reimbursement application

 5  preparation and activities related to reimbursement

 6  application examination by a certified public accountant

 7  pursuant to subsection (12).

 8         (l)  Reasonable costs of restoring property as nearly

 9  as practicable to the conditions which existed prior to

10  activities associated with contamination assessment or

11  remedial action taken under s. 376.303(4).

12         (m)  Repayment of loans to the fund.

13         (n)  Expenditure of sums from the fund to cover

14  ineligible sites or costs as set forth in subsection (13), if

15  the department in its discretion deems it necessary to do so.

16  In such cases, the department may seek recovery and

17  reimbursement of costs in the same manner and in accordance

18  with the same procedures as are established for recovery and

19  reimbursement of sums otherwise owed to or expended from the

20  fund.

21         (o)  Payment of amounts payable under any service

22  contract entered into by the department pursuant to s.

23  376.3075, subject to annual appropriation by the Legislature.

24         (p)  Petroleum remediation pursuant to s. 376.30711

25  throughout a state fiscal year. The department shall establish

26  a process to uniformly encumber appropriated funds throughout

27  a state fiscal year and shall allow for emergencies and

28  imminent threats to human health and the environment as

29  provided in paragraph (5)(a). This paragraph does not apply to

30  appropriations associated with the free product recovery

31  

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  initiative of paragraph (5)(c) or the preapproved advance

 2  cleanup program of s. 376.30713.

 3  

 4  The Inland Protection Trust Fund may only be used to fund the

 5  activities in ss. 376.30-376.319 except ss. 376.3078 and

 6  376.3079.  Amounts on deposit in the Inland Protection Trust

 7  Fund in each fiscal year shall first be applied or allocated

 8  for the payment of amounts payable by the department pursuant

 9  to paragraph (o) under a service contract entered into by the

10  department pursuant to s. 376.3075 and appropriated in each

11  year by the Legislature prior to making or providing for other

12  disbursements from the fund. Nothing in this subsection shall

13  authorize the use of the Inland Protection Trust Fund for

14  cleanup of contamination caused primarily by a discharge of

15  solvents as defined in s. 206.9925(6), or polychlorinated

16  biphenyls when their presence causes them to be hazardous

17  wastes, except solvent contamination which is the result of

18  chemical or physical breakdown of petroleum products and is

19  otherwise eligible. Facilities used primarily for the storage

20  of motor or diesel fuels as defined in ss. 206.01 and 206.86

21  shall be presumed not to be excluded from eligibility pursuant

22  to this section.

23         (5)  SITE SELECTION AND CLEANUP CRITERIA.--

24         (a)  The department shall adopt rules to establish

25  priorities based upon a scoring system for state-conducted

26  cleanup at petroleum contamination sites based upon factors

27  that include, but need not be limited to:

28         1.  The degree to which human health, safety, or

29  welfare may be affected by exposure to the contamination;

30         2.  The size of the population or area affected by the

31  contamination;

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1         3.  The present and future uses of the affected aquifer

 2  or surface waters, with particular consideration as to the

 3  probability that the contamination is substantially affecting,

 4  or will migrate to and substantially affect, a known public or

 5  private source of potable water; and

 6         4.  The effect of the contamination on the environment.

 7  

 8  Moneys in the fund shall then be obligated for activities

 9  described in paragraphs (4)(a)-(e) at individual sites in

10  accordance with such established criteria.  However, nothing

11  in this paragraph shall be construed to restrict the

12  department from modifying the priority status of a

13  rehabilitation site where conditions warrant, taking into

14  consideration the actual distance between the contamination

15  site and groundwater or surface water receptors or other

16  factors that affect the risk of exposure to petroleum

17  products' chemicals of concern. The department may use the

18  effective date of a department final order granting

19  eligibility pursuant to subsections (9) and (13) and ss.

20  376.305(6) and 376.3072 to establish a prioritization system

21  within a particular priority scoring range.

22         (b)  It is the intent of the Legislature to protect the

23  health of all people under actual circumstances of exposure.

24  The secretary shall establish criteria by rule for the purpose

25  of determining, on a site-specific basis, the rehabilitation

26  program tasks that comprise a site rehabilitation program and

27  the level at which a rehabilitation program task and a site

28  rehabilitation program may be deemed completed.  In

29  establishing the rule, the department shall incorporate, to

30  the maximum extent feasible, risk-based corrective action

31  principles to achieve protection of human health and safety

                                  6

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  and the environment in a cost-effective manner as provided in

 2  this subsection. Criteria for determining what constitutes a

 3  rehabilitation program task or completion of site

 4  rehabilitation program tasks and site rehabilitation programs

 5  shall be based upon the factors set forth in paragraph (a) and

 6  the following additional factors:

 7         1.  The current exposure and potential risk of exposure

 8  to humans and the environment including multiple pathways of

 9  exposure.

10         2.  The appropriate point of compliance with cleanup

11  target levels for petroleum products' chemicals of concern.

12  The point of compliance shall be at the source of the

13  petroleum contamination.  However, the department is

14  authorized to temporarily move the point of compliance to the

15  boundary of the property, or to the edge of the plume when the

16  plume is within the property boundary, while cleanup,

17  including cleanup through natural attenuation processes in

18  conjunction with appropriate monitoring, is proceeding.  The

19  department also is authorized, pursuant to criteria provided

20  for in this paragraph, to temporarily extend the point of

21  compliance beyond the property boundary with appropriate

22  monitoring, if such extension is needed to facilitate natural

23  attenuation or to address the current conditions of the plume,

24  provided human health, public safety, and the environment are

25  adequately protected.  Temporary extension of the point of

26  compliance beyond the property boundary, as provided in this

27  subparagraph, shall include notice to local governments and

28  owners of any property into which the point of compliance is

29  allowed to extend.

30         3.  The appropriate site-specific cleanup goal.  The

31  site-specific cleanup goal shall be that all petroleum

                                  7

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  contamination sites ultimately achieve the applicable cleanup

 2  target levels provided in this paragraph. However, the

 3  department is authorized to allow concentrations of the

 4  petroleum products' chemicals of concern to temporarily exceed

 5  the applicable cleanup target levels while cleanup, including

 6  cleanup through natural attenuation processes in conjunction

 7  with appropriate monitoring, is proceeding, provided human

 8  health, public safety, and the environment are adequately

 9  protected.

10         4.  The appropriateness of using institutional or

11  engineering controls.  Site rehabilitation programs may

12  include the use of institutional or engineering controls to

13  eliminate the potential exposure to petroleum products'

14  chemicals of concern to humans or the environment.  Use of

15  such controls must be preapproved by the department and

16  institutional controls shall not be acquired with funds from

17  the Inland Protection Trust Fund.  When institutional or

18  engineering controls are implemented to control exposure, the

19  removal of such controls must have prior department approval

20  and must be accompanied immediately by the resumption of

21  active cleanup, or other approved controls, unless cleanup

22  target levels pursuant to this paragraph have been achieved.

23         5.  The additive effects of the petroleum products'

24  chemicals of concern.  The synergistic effects of petroleum

25  products' chemicals of concern shall also be considered when

26  the scientific data becomes available.

27         6.  Individual site characteristics which shall

28  include, but not be limited to, the current and projected use

29  of the affected groundwater in the vicinity of the site,

30  current and projected land uses of the area affected by the

31  contamination, the exposed population, the degree and extent

                                  8

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  of contamination, the rate of contaminant migration, the

 2  apparent or potential rate of contaminant degradation through

 3  natural attenuation processes, the location of the plume, and

 4  the potential for further migration in relation to site

 5  property boundaries.

 6         7.  Applicable state water quality standards.

 7         a.  Cleanup target levels for petroleum products'

 8  chemicals of concern found in groundwater shall be the

 9  applicable state water quality standards. Where such standards

10  do not exist, the cleanup target levels for groundwater shall

11  be based on the minimum criteria specified in department rule.

12  The department shall consider the following, as appropriate,

13  in establishing the applicable minimum criteria: calculations

14  using a lifetime cancer risk level of 1.0E-6; a hazard index

15  of 1 or less; the best achievable detection limit; the

16  naturally occurring background concentration; or nuisance,

17  organoleptic, and aesthetic considerations.

18         b.  Where surface waters are exposed to petroleum

19  contaminated groundwater, the cleanup target levels for the

20  petroleum products' chemicals of concern shall be based on the

21  surface water standards as established by department rule.

22  The point of measuring compliance with the surface water

23  standards shall be in the groundwater immediately adjacent to

24  the surface water body.

25         8.  Whether deviation from state water quality

26  standards or from established criteria is appropriate. The

27  department may issue a "No Further Action Order" based upon

28  the degree to which the desired cleanup target level is

29  achievable and can be reasonably and cost-effectively

30  implemented within available technologies or engineering and

31  institutional control strategies. Where a state water quality

                                  9

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  standard is applicable, a deviation may not result in the

 2  application of cleanup target levels more stringent than said

 3  standard. In determining whether it is appropriate to

 4  establish alternate cleanup target levels at a site, the

 5  department may consider the effectiveness of source removal

 6  that has been completed at the site and the practical

 7  likelihood of:  the use of low yield or poor quality

 8  groundwater; the use of groundwater near marine surface water

 9  bodies; the current and projected use of the affected

10  groundwater in the vicinity of the site; or the use of

11  groundwater in the immediate vicinity of the storage tank

12  area, where it has been demonstrated that the groundwater

13  contamination is not migrating away from such localized

14  source; provided human health, public safety, and the

15  environment are adequately protected.

16         9.  Appropriate cleanup target levels for soils.

17         a.  In establishing soil cleanup target levels for

18  human exposure to petroleum products' chemicals of concern

19  found in soils from the land surface to 2 feet below land

20  surface, the department shall consider the following, as

21  appropriate: calculations using a lifetime cancer risk level

22  of 1.0E-6; a hazard index of 1 or less; the best achievable

23  detection limit; or the naturally occurring background

24  concentration.

25         b.  Leachability-based soil target levels shall be

26  based on protection of the groundwater cleanup target levels

27  or the alternate cleanup target levels for groundwater

28  established pursuant to this paragraph, as appropriate.

29  Source removal and other cost-effective alternatives that are

30  technologically feasible shall be considered in achieving the

31  leachability soil target levels established by the department.

                                  10

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  The leachability goals shall not be applicable if the

 2  department determines, based upon individual site

 3  characteristics, that petroleum products' chemicals of concern

 4  will not leach into the groundwater at levels which pose a

 5  threat to human health and safety or the environment.

 6  

 7  However, nothing in this paragraph shall be construed to

 8  restrict the department from temporarily postponing completion

 9  of any site rehabilitation program for which funds are being

10  expended whenever such postponement is deemed necessary in

11  order to make funds available for rehabilitation of a

12  contamination site with a higher priority status.

13         (c)  The department shall require source removal, if

14  warranted and cost-effective, at each site eligible for

15  restoration funding from the Inland Protection Trust Fund.

16         1.  Funding for free product recovery may be provided

17  in advance of the order established by the priority ranking

18  system under pursuant to paragraph (a) for site cleanup

19  activities. However, a separate prioritization for free

20  product recovery shall be established consistent with the

21  provisions of paragraph (a). No more than $5 million shall be

22  encumbered from the Inland Protection Trust Fund in any fiscal

23  year for free product recovery conducted in advance of the

24  priority order under pursuant to paragraph (a) established for

25  site cleanup activities.

26         2.  Funding for limited interim soil-source removals

27  for sites that will become inaccessible for future remediation

28  due to road infrastructure and right-of-way restrictions

29  resulting from a pending Department of Transportation road

30  construction project or for secondary containment upgrading of

31  underground storage tanks required under Rule

                                  11

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  62-761.510(2)(d), Florida Administrative Code, may be provided

 2  in advance of the order established by the priority ranking

 3  system under paragraph (a) for site cleanup activities. The

 4  department shall provide written guidance on the limited

 5  source removal information and technical evaluation necessary

 6  to justify a request for a limited source removal in advance

 7  of the priority order pursuant to paragraph (a) established

 8  for site cleanup activities. Prioritization for limited source

 9  removal projects associated with a secondary containment

10  upgrade in any fiscal year shall be determined on a

11  first-come, first-served basis according to the approval date

12  issued under s. 376.30711 for the limited source removal.

13  Funding for limited source removals associated with secondary

14  containment upgrades shall be limited to 10 sites in each

15  fiscal year for each facility owner and any related person.

16  The limited source removal for secondary containment upgrades

17  shall be completed no later than 6 months after the department

18  issues its approval of the project and the approval

19  automatically expires at the end of the 6 months. Funding for

20  Department of Transportation and secondary containment upgrade

21  source removals may not exceed $50,000 for a single facility

22  unless the department makes a determination that it is

23  cost-effective and environmentally beneficial to exceed this

24  amount, but in no event shall the department authorize costs

25  in excess of $100,000 for a single facility. Department

26  funding for limited interim soil-source removals associated

27  with Department of Transportation projects and secondary

28  containment upgrades shall be limited to supplemental soil

29  assessment, soil screening, soil removal, backfill material,

30  treatment or disposal of the contaminated soil, dewatering

31  related to the contaminated soil removal in an amount of up to

                                  12

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  10 percent of the total project costs, treatment, and disposal

 2  of the contaminated groundwater and preparation of the source

 3  removal report. No other costs associated with the facility

 4  upgrade may be paid with department funds. No more than $1

 5  million for Department of Transportation limited source

 6  removal projects and $10 million for secondary containment

 7  upgrade limited source removal projects conducted in advance

 8  of the priority order established under paragraph (a) for site

 9  cleanup activities shall be encumbered from the Inland

10  Protection Trust Fund in any fiscal year. This subparagraph is

11  repealed effective June 30, 2008.

12         3.  Once free product removal and other source removal

13  identified in this paragraph are completed at a site, and

14  notwithstanding the order established by the priority ranking

15  system under paragraph (a) for site cleanup activities is

16  complete, the department may shall reevaluate the site to

17  determine the degree of active cleanup needed to continue site

18  rehabilitation.  Further, the department shall determine if

19  the reevaluated site qualifies for natural attenuation

20  monitoring only or if no further action is required to

21  rehabilitate the site.  If additional site rehabilitation is

22  necessary to reach no further action status, the site

23  rehabilitation shall be conducted in the order established by

24  the priority ranking system under paragraph (a) and the

25  department is encouraged to utilize natural attenuation and

26  monitoring where site conditions warrant.

27         Section 2.  Subsection (1) of section 376.30713,

28  Florida Statutes, is amended to read:

29         376.30713  Preapproved advanced cleanup.--

30         (1)  In addition to the legislative findings provided

31  in s. 376.30711, the Legislature finds and declares:

                                  13

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1         (a)  That the inability to conduct site rehabilitation

 2  in advance of a site's priority ranking pursuant to s.

 3  376.3071(5)(a) may substantially impede or prohibit property

 4  transactions or the proper completion of public works

 5  projects.

 6         (b)  While the first priority of the state is to

 7  provide for protection of the water resources of the state,

 8  human health, and the environment, the viability of commerce

 9  is of equal importance to the state.

10         (c)  It is in the public interest and of substantial

11  economic benefit to the state to provide an opportunity for

12  site rehabilitation to be conducted on a limited basis at

13  contaminated sites, in advance of the site's priority ranking,

14  to facilitate property transactions or public works projects.

15         (d)  It is appropriate for persons responsible for site

16  rehabilitation to share the costs associated with managing and

17  conducting preapproved advanced cleanup, to facilitate the

18  opportunity for preapproved advanced cleanup, and to mitigate

19  the additional costs that will be incurred by the state in

20  conducting site rehabilitation in advance of the site's

21  priority ranking.  Such cost sharing will result in more

22  contaminated sites being cleaned up and greater environmental

23  benefits to the state. The provisions of this section shall

24  only be available for sites eligible for restoration funding

25  under EDI, ATRP, or PLIRP. This section is available for

26  discharges eligible for restoration funding under the

27  petroleum cleanup participation program for the state's cost

28  share of site rehabilitation. Applications shall include a

29  cost-sharing commitment for this section in addition to the

30  25-percent-copayment requirement of the petroleum cleanup

31  participation program. This section is not available for any

                                  14

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  discharge under a petroleum cleanup participation program

 2  where the 25-percent-copayment requirement of the petroleum

 3  cleanup participation program has been reduced or eliminated

 4  pursuant to s. 376.3071(13)(c).

 5         Section 3.  Section 376.3075, Florida Statutes, is

 6  amended to read:

 7         376.3075  Inland Protection Financing Corporation.--

 8         (1)  There is hereby created a nonprofit public benefit

 9  corporation to be known as the "Inland Protection Financing

10  Corporation" for the purpose of financing the rehabilitation

11  of petroleum contamination sites pursuant to ss.

12  376.30-376.319 and the payment, purchase, and settlement of

13  reimbursement obligations of the department pursuant to s.

14  376.3071(12), existing as of December 31, 1996.  Such

15  reimbursement obligations are referred to in this section as

16  existing reimbursement obligations.  The corporation shall

17  terminate on July 1, 2025 2011.

18         (2)  The corporation shall be governed by a board of

19  directors consisting of the Governor or the Governor's

20  designee, the Chief Financial Officer or the Chief Financial

21  Officer's designee, the chair of the Florida Black Business

22  Investment Board, and the secretary of the Department of

23  Environmental Protection. The executive director of the State

24  Board of Administration shall be the chief executive officer

25  of the corporation and shall direct and supervise the

26  administrative affairs of the corporation and shall control,

27  direct, and supervise the operation of the corporation. The

28  corporation shall also have such other officers as may be

29  determined by the board of directors.

30         (3)  The corporation shall have all the powers of a

31  corporate body under the laws of the state to the extent not

                                  15

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  inconsistent with or restricted by the provisions of this

 2  section, including, but not limited to, the power to:

 3         (a)  Adopt, amend, and repeal bylaws not inconsistent

 4  with this section.

 5         (b)  Sue and be sued.

 6         (c)  Adopt and use a common seal.

 7         (d)  Acquire, purchase, hold, lease, and convey such

 8  real and personal property as may be proper or expedient to

 9  carry out the purposes of the corporation and this section,

10  and to sell, lease, or otherwise dispose of such property.

11         (e)  Elect or appoint and employ such officers, agents,

12  and employees as the corporation deems advisable to operate

13  and manage the affairs of the corporation, which officers,

14  agents, and employees may be officers or employees of the

15  department and the state agencies represented on the board of

16  directors of the corporation.

17         (f)  Borrow money and issue notes, bonds, certificates

18  of indebtedness, or other obligations or evidences of

19  indebtedness necessary to pay the backlog or to reimburse

20  moneys from the Inland Protection Trust Fund used pursuant to

21  subsection (6) and to pay for large-scale cleanups, such as

22  ports, airports, and terminal facilities, which are eligible

23  for state funding.

24         (g)  Make and execute any and all contracts, trust

25  agreements, and other instruments and agreements necessary or

26  convenient to accomplish the purposes of the corporation and

27  this section.

28         (h)  Select, retain, and employ professionals,

29  contractors, or agents, which may include the Florida State

30  Board of Administration's Division of Bond Finance, as shall

31  be necessary or convenient to enable or assist the corporation

                                  16

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  in carrying out the purposes of the corporation and this

 2  section.

 3         (i)  Do any act or thing necessary or convenient to

 4  carry out the purposes of the corporation and this section and

 5  the powers provided in this section.

 6         (4)  The corporation is authorized to enter into one or

 7  more service contracts with the department pursuant to which

 8  the corporation shall provide services to the department in

 9  connection with financing the functions and activities

10  provided for in ss. 376.30-376.319.  The department may enter

11  into one or more such service contracts with the corporation

12  and to provide for payments under such contracts pursuant to

13  s. 376.3071(4)(o), subject to annual appropriation by the

14  Legislature.  The proceeds from such service contracts may be

15  used for the costs and expenses of administration of the

16  corporation after payments as set forth in subsection (5).

17  Each service contract shall have a term not to exceed 10 years

18  and shall terminate no later than July 1, 2025 2011.  The

19  aggregate amount payable from the Inland Protection Trust Fund

20  under all such service contracts shall not exceed $65 million

21  in any state fiscal year.  Amounts annually appropriated and

22  applied to make payments under such service contracts shall

23  not include any funds derived from penalties or other payments

24  received from any property owner or private party, including

25  payments received from s. 376.3071(6)(b).  In compliance with

26  provisions of s. 287.0641 and other applicable provisions of

27  law, the obligations of the department under such service

28  contracts shall not constitute a general obligation of the

29  state or a pledge of the faith and credit or taxing power of

30  the state nor shall such obligations be construed in any

31  manner as an obligation of the State Board of Administration

                                  17

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  or entities for which it invests funds, other than the

 2  department as provided in this section, but shall be payable

 3  solely from amounts available in the Inland Protection Trust

 4  Fund, subject to annual appropriation.  In compliance with

 5  this subsection and s. 287.0582, the service contract shall

 6  expressly include the following statement:  "The State of

 7  Florida's performance and obligation to pay under this

 8  contract is contingent upon an annual appropriation by the

 9  Legislature."

10         (5)  The corporation may issue and incur notes, bonds,

11  certificates of indebtedness, or other obligations or

12  evidences of indebtedness payable from and secured by amounts

13  payable to the corporation by the department under a service

14  contract entered into pursuant to subsection (4) for the

15  purpose of paying, purchasing, or settling existing

16  reimbursement obligations.  The term of any such note, bond,

17  certificate of indebtedness, or other obligation or evidence

18  of indebtedness shall not have a financing term that exceeds 6

19  years, nor shall the total payments for principal and interest

20  on any such note, bond, certificate of indebtedness, or other

21  obligation or evidence of indebtedness exceed the original

22  amount of approved reimbursement claims to be paid, purchased,

23  or settled by the corporation by more than $50 million.  The

24  corporation may select its financing team and issue its

25  obligations through competitive bidding or negotiated

26  contracts, whichever is most cost-effective. Any such

27  indebtedness of the corporation shall not constitute a debt or

28  obligation of the state or a pledge of the faith and credit or

29  taxing power of the state, but shall be payable from and

30  secured by payments made by the department under the service

31  contract pursuant to s. 376.3071(4)(o).

                                  18

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1         (6)  Upon the issuance of debt obligations by the

 2  corporation pursuant to subsection (5) for the payment,

 3  purchase, or settlement of existing reimbursement obligations,

 4  amounts on deposit in the Inland Protection Trust Fund shall

 5  not be available for the payment, purchase, or settlement of

 6  existing reimbursement obligations to the extent proceeds of

 7  such debt obligations are available for the payment of such

 8  existing reimbursement obligations.  If, after the initial

 9  issuance of debt obligations pursuant to subsection (5),

10  amounts on deposit in the Inland Protection Trust Fund are

11  used to pay existing reimbursement obligations, the

12  corporation shall reimburse the Inland Protection Trust Fund

13  for such payments from available proceeds of debt obligations

14  issued pursuant to subsection (5).  Payment, purchase, or

15  settlement by the corporation of existing reimbursement

16  obligations otherwise payable pursuant to s. 376.3071(12)

17  shall satisfy the obligation of the department to make such

18  payments.  Any such existing reimbursement obligations

19  purchased by the corporation shall be satisfied and

20  extinguished upon purchase by the corporation.

21         (7)  The corporation shall pay, purchase, or settle

22  existing reimbursement obligations as determined by the

23  department.  The department shall implement the repayment

24  priorities and method and amount of payments pursuant to s.

25  376.3071(12). However, any claims for reimbursement pursuant

26  to s. 376.3071(12) that the corporation is unable to pay

27  because of the limitations contained in subsection (5) shall

28  be paid by the department from the receipts of the Inland

29  Protection Trust Fund.

30         (8)  The fulfillment of the purposes of the corporation

31  promotes the health, safety, and general welfare of the people

                                  19

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  of the state and serves as essential governmental functions

 2  and a paramount public purpose.

 3         (9)  The corporation is exempt from taxation and

 4  assessments of any nature whatsoever upon its income and any

 5  property, assets, or revenues acquired, received, or used in

 6  the furtherance of the purposes provided in this chapter.  The

 7  obligations of the corporation incurred pursuant to subsection

 8  (5) and the interest and income thereon and all security

 9  agreements, letters of credit, liquidity facilities, or other

10  obligations or instruments arising out of, entered into in

11  connection therewith, or given to secure payment thereof are

12  exempt from all taxation, provided such exemption does not

13  apply to any tax imposed by chapter 220 on the interest,

14  income, or profits on debt obligations owned by corporations.

15         (10)  The corporation shall validate obligations to be

16  incurred pursuant to subsection (5) and the validity and

17  enforceability of any service contracts providing for payments

18  pledged to the payment thereof by proceedings under chapter

19  75.  The validation complaint shall be filed only in the

20  Circuit Court for Leon County.  The notice required to be

21  published by s. 75.06 shall be published in Leon County and

22  the complaint and order of the circuit court shall be served

23  only on the State Attorney for the Second Judicial Circuit.

24  Sections 75.04(2) and 75.06(2) shall not apply to a complaint

25  for validation filed as authorized in this subsection.  The

26  validation of at least the first obligations incurred pursuant

27  to subsection (5) shall be appealed to the Supreme Court, to

28  be handled on an expedited basis.

29         (11)  The corporation shall not be deemed to be a

30  special district for purposes of chapter 189 or a unit of

31  local government for purposes of part III of chapter 218.  The

                                  20

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 1318
    592-728A-05




 1  provisions of chapters 120 and 215, except the limitation on

 2  interest rates provided by s. 215.84 which applies to

 3  obligations of the corporation issued pursuant to this

 4  section, and part I of chapter 287, except ss. 287.0582 and

 5  287.0641, shall not apply to this section, the corporation

 6  created hereby, the service contracts entered into pursuant to

 7  this section, or to debt obligations issued by the corporation

 8  as contemplated in this section.

 9         (12)  In no event shall any of the benefits or earnings

10  of the corporation inure to the benefit of any private person.

11         (13)  Upon dissolution of the corporation, title to all

12  property owned by the corporation shall revert to the state.

13         (14)  The corporation may contract with the State Board

14  of Administration to serve as trustee with respect to debt

15  obligations issued by the corporation as contemplated by this

16  section and to hold, administer, and invest proceeds of such

17  debt obligations and other funds of the corporation and to

18  perform other services required by the corporation.  The State

19  Board of Administration may perform such services and may

20  contract with others to provide all or a part of such services

21  and to recover its and such other costs and expenses thereof.

22         Section 4.  This act shall take effect July 1, 2005.

23  

24            *****************************************

25                          SENATE SUMMARY

26    Authorizes the Department of Environmental Protection to
      use moneys in the Inland Protection Trust Fund for
27    petroleum remediation. Requires that the department
      establish cleanup priorities based on a scoring system.
28    Authorizes certain limited source removal for secondary
      containment upgrades. Provides that provisions
29    authorizing certain preapproved advanced cleanup apply to
      a discharge under the petroleum cleanup participation
30    program. Provides for the Inland Protection Financing
      Corporation to fund certain large-scale cleanups. Extends
31    the termination date of the corporation until 2025. (See
      bill for details.)
                                  21

CODING: Words stricken are deletions; words underlined are additions.