Florida Senate - 2017                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 1018
       
       
       
       
       
       
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                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: WD/2R          .                                
             04/28/2017 10:34 AM       .                                
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       Senator Grimsley moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 215 - 229
    4  and insert:
    5         Section 5. Paragraph (h) is added to subsection (1) of
    6  section 376.3071, Florida Statutes, paragraph (a) of subsection
    7  (2), subsection (4), and paragraph (h) of subsection (6) of that
    8  section are amended, and subsections (15) and (16) are added to
    9  that section, to read:
   10         376.3071 Inland Protection Trust Fund; creation; purposes;
   11  funding.—
   12         (1) FINDINGS.—In addition to the legislative findings set
   13  forth in s. 376.30, the Legislature finds and declares:
   14         (h)That Congress enacted the Energy Policy Act of 2005,
   15  amending the Clean Air Act, to establish a Renewable Fuel
   16  Standard requiring the use of ethanol as an oxygenate additive
   17  for gasoline and biodiesel as an additive for ultra-low sulfur
   18  diesel fuel. An unintended consequence of the inclusion of
   19  ethanol in gasoline and biodiesel in diesel fuel has been to
   20  cause, and potentially cause, significant corrosion and other
   21  damage to petroleum storage system components regulated under
   22  this chapter. The Legislature further finds that petroleum
   23  storage system components have been found by the department in
   24  its equipment approval process to meet compatibility standards;
   25  however, these standards may have subsequently changed due to
   26  the introduction of ethanol and biodiesel. This state enacted
   27  secondary containment requirements before Congress’ mandated
   28  introduction of ethanol into gasoline and biodiesel into ultra
   29  low sulfur diesel fuel. Therefore, owners and operators of
   30  underground petroleum storage facilities in Florida who complied
   31  with this state’s secondary containment requirements and
   32  installed approved equipment that may not have been evaluated
   33  for compatibility with ethanol and biodiesel, cross
   34  contamination due to the storage of gasoline and diesel fuel,
   35  and the effects of condensation and minimal amounts of water in
   36  underground storage tanks are at a particular risk for having to
   37  repair or replace equipment or take other preventive measures in
   38  advance of the end of the equipment’s expected useful life in
   39  order to prevent releases or discharges of pollutants.
   40         (2) INTENT AND PURPOSE.—
   41         (a) It is the intent of the Legislature to establish the
   42  Inland Protection Trust Fund to serve as a repository for funds
   43  which will enable the department to respond without delay to
   44  incidents of inland contamination, and damage or potential
   45  damage to underground storage tank systems caused by ethanol or
   46  biodiesel as described in subsection (15) which may result in
   47  such incidents, related to the storage of petroleum and
   48  petroleum products in order to protect the public health,
   49  safety, and welfare and to minimize environmental damage.
   50         (4) USES.—Whenever, in its determination, incidents of
   51  inland contamination, or potential incidents as provided in
   52  subsection (15), related to the storage of petroleum or
   53  petroleum products may pose a threat to the public health,
   54  safety, or welfare, water resources, or the environment, the
   55  department shall obligate moneys available in the fund to
   56  provide for:
   57         (a) Prompt investigation and assessment of contamination
   58  sites.
   59         (b) Expeditious restoration or replacement of potable water
   60  supplies as provided in s. 376.30(3)(c)1.
   61         (c) Rehabilitation of contamination sites, which shall
   62  consist of cleanup of affected soil, groundwater, and inland
   63  surface waters, using the most cost-effective alternative that
   64  is technologically feasible and reliable and that provides
   65  adequate protection of the public health, safety, and welfare,
   66  and water resources, and that minimizes environmental damage,
   67  pursuant to the site selection and cleanup criteria established
   68  by the department under subsection (5)., except that This
   69  paragraph does not authorize the department to obligate funds
   70  for payment of costs which may be associated with, but are not
   71  integral to, site rehabilitation, such as the cost for
   72  retrofitting or replacing petroleum storage systems, unless
   73  repair, replacement, or other preventive measures are authorized
   74  pursuant to subsection (15).
   75         (d) Maintenance and monitoring of contamination sites.
   76         (e) Inspection and supervision of activities described in
   77  this subsection.
   78         (f) Payment of expenses incurred by the department in its
   79  efforts to obtain from responsible parties the payment or
   80  recovery of reasonable costs resulting from the activities
   81  described in this subsection.
   82         (g) Payment of any other reasonable costs of
   83  administration, including those administrative costs incurred by
   84  the Department of Health in providing field and laboratory
   85  services, toxicological risk assessment, and other assistance to
   86  the department in the investigation of drinking water
   87  contamination complaints and costs associated with public
   88  information and education activities.
   89         (h) Establishment and implementation of the compliance
   90  verification program as authorized in s. 376.303(1)(a),
   91  including contracting with local governments or state agencies
   92  to provide for the administration of such program through
   93  locally administered programs, to minimize the potential for
   94  further contamination sites.
   95         (i) Funding of the provisions of ss. 376.305(6) and
   96  376.3072.
   97         (j) Activities related to removal and replacement of
   98  petroleum storage systems, if repair, replacement, or other
   99  preventive measures are authorized pursuant to subsection (15),
  100  or exclusive of costs of any tank, piping, dispensing unit, or
  101  related hardware, if soil removal is approved as a component of
  102  site rehabilitation and requires removal of the tank where
  103  remediation is conducted under this section, or if such
  104  activities were justified in an approved remedial action plan.
  105         (k) Reasonable costs of restoring property as nearly as
  106  practicable to the conditions which existed before activities
  107  associated with contamination assessment or remedial action
  108  taken under s. 376.303(4).
  109         (l) Repayment of loans to the fund.
  110         (m) Expenditure of sums from the fund to cover ineligible
  111  sites or costs as set forth in subsection (13), if the
  112  department in its discretion deems it necessary to do so. In
  113  such cases, the department may seek recovery and reimbursement
  114  of costs in the same manner and pursuant to the same procedures
  115  established for recovery and reimbursement of sums otherwise
  116  owed to or expended from the fund.
  117         (n) Payment of amounts payable under any service contract
  118  entered into by the department pursuant to s. 376.3075, subject
  119  to annual appropriation by the Legislature.
  120         (o) Petroleum remediation pursuant to this section
  121  throughout a state fiscal year. The department shall establish a
  122  process to uniformly encumber appropriated funds throughout a
  123  state fiscal year and shall allow for emergencies and imminent
  124  threats to public health, safety, and welfare, water resources,
  125  and the environment as provided in paragraph (5)(a). This
  126  paragraph does not apply to appropriations associated with the
  127  free product recovery initiative provided in paragraph (5)(c) or
  128  the advanced cleanup program provided in s. 376.30713.
  129         (p) Enforcement of this section and ss. 376.30-376.317 by
  130  the Fish and Wildlife Conservation Commission. The department
  131  shall disburse moneys to the commission for such purpose.
  132         (q) Payments for program deductibles, copayments, and
  133  limited contamination assessment reports that otherwise would be
  134  paid by another state agency for state-funded petroleum
  135  contamination site rehabilitation.
  136         (r)Repair of, replacement of, or other preventive measures
  137  for underground storage tanks, piping, or related hardware as
  138  provided in subsection (15). Such costs may include equipment,
  139  excavation, electrical work, and site restoration, all of which
  140  must be specifically related to the repair or replacement.
  141  
  142  The issuance of a site rehabilitation completion order pursuant
  143  to subsection (5) or paragraph (12)(b) for contamination
  144  eligible for programs funded by this section does not alter the
  145  project’s eligibility for state-funded remediation if the
  146  department determines that site conditions are not protective of
  147  human health under actual or proposed circumstances of exposure
  148  under subsection (5). The Inland Protection Trust Fund may be
  149  used only to fund the activities in ss. 376.30-376.317 except
  150  ss. 376.3078 and 376.3079. Amounts on deposit in the fund in
  151  each fiscal year must first be applied or allocated for the
  152  payment of amounts payable by the department pursuant to
  153  paragraph (n) under a service contract entered into by the
  154  department pursuant to s. 376.3075 and appropriated in each year
  155  by the Legislature before making or providing for other
  156  disbursements from the fund. This subsection does not authorize
  157  the use of the fund for cleanup of contamination caused
  158  primarily by a discharge of solvents as defined in s.
  159  206.9925(6), or polychlorinated biphenyls when their presence
  160  causes them to be hazardous wastes, except solvent contamination
  161  which is the result of chemical or physical breakdown of
  162  petroleum products and is otherwise eligible. Facilities used
  163  primarily for the storage of motor or diesel fuels as defined in
  164  ss. 206.01 and 206.86 are not excluded from eligibility pursuant
  165  to this section.
  166         (6) CONTRACTING AND CONTRACTOR SELECTION REQUIREMENTS.—
  167         (h) The contractor, or the person to whom which the
  168  contractor has assigned its right to payment pursuant to
  169  paragraph (e), shall make prompt payment to subcontractors and
  170  suppliers for their costs associated with an approved contract
  171  pursuant to s. 287.0585, except that the contractor, or the
  172  person to whom the contractor has assigned its right to payment
  173  pursuant to paragraph (e), may remit payments to subcontractors
  174  and suppliers within 30 working days after the contractor’s
  175  receipt of payment by the department before the penalties
  176  required by s. 287.0585(1) are applicable.
  177         (15)UNDERGROUND PETROLEUM STORAGE SYSTEM REPAIR OR
  178  REPLACEMENT DUE TO DAMAGE CAUSED BY ETHANOL OR BIODIESEL; OTHER
  179  PREVENTIVE MEASURES.—The department shall pay, in accordance
  180  with this subsection, up to $10 million each fiscal year from
  181  the fund for the costs of labor and equipment to repair or
  182  replace underground petroleum storage systems that have likely
  183  been damaged due to the underground storage of fuels blended
  184  with ethanol or biodiesel, or for preventive measures to reduce
  185  the potential for such damage.
  186         (a)An underground petroleum storage system owner or
  187  operator may request payment from the department for the repair
  188  or replacement of underground petroleum storage systems,
  189  including tanks, integral piping, or related hardware, that have
  190  likely been damaged, or are subject to damage, by the
  191  underground storage of fuels blended with ethanol or biodiesel
  192  or for other preventive measures to ensure compatibility with
  193  ethanol or biodiesel in accordance with the following
  194  procedures:
  195         1.The underground petroleum storage system owner or
  196  operator may submit a request for payment to the department
  197  along with the following information:
  198         a.An affidavit from an underground petroleum storage
  199  system specialty contractor attesting to an opinion that the
  200  underground petroleum storage system has likely been damaged as
  201  a result of the storage of fuel blended with ethanol or
  202  biodiesel or is not compatible with fuels containing ethanol or
  203  biodiesel, or a combination of both. The affidavit must also
  204  include a proposal from the specialty contractor for repair or
  205  replacement of the equipment, or for the implementation of other
  206  preventive measures to reduce the probability of damage. If the
  207  specialty contractor proposes replacement of any equipment, the
  208  specialty contractor must state the reasons that repair or other
  209  preventive measures are not technically or economically feasible
  210  or practical.
  211         b.Copies of any inspection reports, including photographs,
  212  prepared by the specialty contractor or department or local
  213  program inspectors documenting the damage or potential for
  214  damage to the underground petroleum storage system.
  215         c.A proposal from the specialty contractor showing the
  216  proposed scope of the repair, replacement, or other preventive
  217  measures, including a detailed list of labor, equipment, and
  218  other associated costs. Funding for preventative measures is
  219  only available for underground petroleum storage systems that
  220  have not received funding under this subsection. For eligible
  221  preventative measures, an owner or operator may only receive
  222  funding for up to 5 years or when the underground petroleum
  223  storage system is replaced, whichever comes first. The
  224  underground petroleum storage system specialty contractor who
  225  prepared the affidavit and proposed scope of work may not also
  226  perform the repair, replacement, or preventive measures.
  227         d.For proposals to replace underground storage tanks or
  228  piping, a statement from a certified public accountant
  229  indicating the depreciated value of the tanks or piping proposed
  230  for replacement. Applications for such proposals must also
  231  include documentation of the age of the storage tank or piping.
  232  Historical tank registration records may be used to determine
  233  the age of the storage tank and piping. The depreciated value
  234  shall be the maximum allowable replacement cost for the storage
  235  tank and piping, including prorated labor costs. For the
  236  purposes of this paragraph, tanks that are 20 years old or older
  237  are deemed to be fully depreciated and have no replacement value
  238  and are not eligible for funding under this subsection.
  239         2.The department shall review applications for
  240  completeness, accuracy, and reasonableness of costs. The
  241  department shall determine whether the proposed scope of work is
  242  reasonable and appropriate for the site in question. The
  243  department must, within 30 days after receipt of an application,
  244  approve it, deny it, propose modification to it, or request
  245  additional information.
  246         (b)If an application is approved, the department shall
  247  issue a purchase order to the underground petroleum storage
  248  system owner or operator. The purchase order shall:
  249         1.Reflect a payment due to the owner or operator for the
  250  cost of the scope of work approved by the department, less a
  251  deductible of 50 percent.
  252         2.State that moneys are not due to the owner or operator
  253  pursuant to the purchase order until the scope of work
  254  authorized by the department has been completed in substantial
  255  conformity with the purchase order.
  256         3.Specify that the work authorized in the purchase order
  257  must be substantially completed and paid for by the underground
  258  petroleum storage system owner or operator within 180 days after
  259  the date of the purchase order. After such time, the purchase
  260  order is void. This requirement does not apply to preventive
  261  measure purchase orders.
  262         4.Develop a maintenance completion and payment deadline
  263  schedule for approved applicants for preventive measure purchase
  264  orders. The failure of an owner or operator to meet these
  265  scheduled deadlines shall invalidate the purchase order for all
  266  future payments due pursuant to the order. An approved
  267  maintenance plan for preventive measures may not exceed 5 years.
  268  An owner or operator may not receive funding for preventive
  269  measures for an underground petroleum storage system after
  270  receiving funds under this subsection for the replacement of
  271  that underground petroleum storage system.
  272         (c)1.Except for preventive measure purchase orders, the
  273  applicant may request that the department make payment following
  274  completion of the work authorized by the department, in
  275  accordance with the terms of the purchase order. The request
  276  must include a sufficient demonstration that the work has been
  277  completed in substantial conformance with the purchase order and
  278  that the costs have been fully paid. Upon such a showing, the
  279  department must issue the payment in accordance with the terms
  280  of the purchase order.
  281         2.For preventive measures purchase orders, the department
  282  must make periodic payments in accordance with the schedule
  283  specified in the purchase order upon satisfactory showing that
  284  maintenance work has been completed and costs have been paid by
  285  the owner or operator as specified in the purchase order.
  286         (d)The department may develop forms to be used for
  287  application and payment procedures. Until such forms are
  288  developed, an applicant may submit the required information in
  289  any format, as long as the documentation is complete.
  290         (e)The department may request the assistance of the
  291  Department of Management Services or a third-party administrator
  292  to assist in the administration of the application and payment
  293  process. Any costs associated with this administration shall be
  294  paid from the funds identified in this section. Not more than 3
  295  percent of the appropriated funds may be used for
  296  administration.
  297         (f)This subsection may not affect the obligations of a
  298  facility owner or operator or underground petroleum storage
  299  system owner or operator to timely comply with department rules
  300  regarding the maintenance, replacement, and repair of
  301  underground petroleum storage systems in order to prevent a
  302  release or discharge of pollutants.
  303         (g)Payments may not be made for the following:
  304         1.Proposal costs or costs related to preparation of the
  305  application and required documentation;
  306         2.Certified public accountant costs;
  307         3.Except as provided in paragraph (j), any costs in excess
  308  of the amount approved by the department pursuant to paragraph
  309  (b) or which are not in substantial conformance with the
  310  purchase order;
  311         4.Costs associated with underground storage tanks, piping,
  312  or related hardware that has previously been repaired or
  313  replaced for which costs have been paid under this section;
  314         5.Facilities that are not in compliance with department
  315  underground storage tank rules, until the noncompliance issues
  316  have been resolved; or
  317         6.Costs associated with damage to underground petroleum
  318  storage systems caused in whole or in part by causes other than
  319  the storage of fuels blended with ethanol or biodiesel.
  320         (h)The department must review and approve applications on
  321  a first-come, first-served basis. However, the department may
  322  not issue purchase orders unless funds remain for the current
  323  fiscal year.
  324         (i)An underground petroleum storage system owner or
  325  operator may not receive more than $200,000 annually for
  326  equipment replacement, repair, or preventive measures at any
  327  single facility, or $500,000 annually in aggregate for all
  328  facilities it owns or operates. An approved maintenance plan for
  329  preventive measures may not exceed 5 years. An owner or operator
  330  may not receive funding for preventive measures for an
  331  underground petroleum storage system after receiving funds under
  332  this subsection for the replacement of that underground
  333  petroleum storage system.
  334         (j)An owner or operator who has incurred costs for repair,
  335  replacement, or other preventive measures as described in this
  336  subsection during the period of July 1, 2015, through June 30,
  337  2017, may apply to request payment for such costs from the
  338  department using the procedure in paragraphs (b), (c), and (d).
  339  The department may not disburse payment for approved
  340  applications for such work until all purchase orders for
  341  previously approved applications have been paid and unless funds
  342  remain available for the fiscal year. Such payment is subject to
  343  a deductible of 50 percent of the cost of the scope of work
  344  approved by the department pursuant to the application specified
  345  under this paragraph.
  346         (16)COMPLIANCE WITH COMPATIBILITY STANDARDS.—The
  347  department shall ensure that underground petroleum storage
  348  systems approved after July 1, 2017, meet applicable standards
  349  for compatibility for ethanol blends, biodiesel blends, and
  350  other alternative fuels that are likely to be stored in such
  351  systems.
  352  
  353  ================= T I T L E  A M E N D M E N T ================
  354  And the title is amended as follows:
  355         Delete lines 30 - 31
  356  and insert:
  357         legislative findings; revising legislative intent;
  358         specifying that funds in the Inland Protection Trust
  359         Fund may be used for certain purposes relating to
  360         damage or potential damage to underground petroleum
  361         storage systems caused by ethanol or biodiesel;
  362         providing an exception to prompt payment requirements
  363         to subcontractors and suppliers; specifying the
  364         maximum funds that may be used for such purposes;
  365         specifying the process for underground petroleum
  366         storage system owners or operators to request approval
  367         for work and payment from the department; authorizing
  368         the department to develop forms for certain procedures
  369         and request administrative assistance from the
  370         Department of Management Services or a third-party
  371         administrator; specifying that certain costs are not
  372         eligible for payment; requiring the department to
  373         review and approve applications on a first-come,
  374         first-served basis, with purchase orders subject to
  375         certain remaining funds; limiting the amount an
  376         underground storage tank owner or operator may receive
  377         annually for such measures; providing applicability of
  378         certain purchase order requirements; specifying that
  379         the department may also pay the cost for certain
  380         previously completed repairs, replacement, or other
  381         preventive measures relating to damage or potential
  382         damage to underground storage tank systems caused by
  383         ethanol or biodiesel; requiring the department to
  384         ensure that underground petroleum storage systems
  385         approved after a certain date meet certain standards
  386         for ethanol blend, biodiesel blend, and other
  387         alternative fuel compatibility; amending s. 376.30713,