CS for SB 702                                    First Engrossed
    1                        A bill to be entitled                      
    2         An act relating to petroleum cleanup; amending s.
    3         376.3071, F.S.; providing legislative findings,
    4         declarations, and intent; authorizing the Department
    5         of Environmental Protection to use funds from the
    6         Inland Protection Trust Fund to pay for specified
    7         activities related to removal and replacement of
    8         petroleum storage systems; providing for petroleum
    9         storage system repair or replacement due to damage
   10         caused by ethanol or biodiesel and for preventive
   11         measures to reduce the potential for such damage;
   12         revising requirements for a limited contamination
   13         assessment report required to be provided by a
   14         property owner, an operator, or a person otherwise
   15         responsible for site rehabilitation to the Department
   16         of Environmental Protection under the Petroleum
   17         Cleanup Participation Program; providing requirements
   18         for requesting and receiving payments for such repair,
   19         replacement, and measures; providing construction;
   20         prohibiting payments for certain costs; limiting the
   21         payment amount a petroleum storage system owner or
   22         operator is eligible to receive annually; requiring
   23         the department, after a specified date, to only
   24         register storage system equipment that meets certain
   25         fuel standards; amending s. 376.30713, F.S.; revising
   26         the contents of an advanced cleanup application to
   27         include a specified property owner or responsible
   28         party agreement; requiring an applicant to submit a
   29         scope of work after the department has accepted the
   30         applicant’s advanced cleanup application; requiring
   31         the department to issue a purchase order for a certain
   32         contamination assessment; providing an effective date.
   34  Be It Enacted by the Legislature of the State of Florida:
   36         Section 1. Paragraph (a) of subsection (2) and subsections
   37  (4) and (13) of section 376.3071, Florida Statutes, are amended,
   38  and paragraph (h) is added to subsection (1) and subsection (15)
   39  is added to that section, to read:
   40         376.3071 Inland Protection Trust Fund; creation; purposes;
   41  funding.—
   42         (1) FINDINGS.—In addition to the legislative findings set
   43  forth in s. 376.30, the Legislature finds and declares:
   44         (h) That Congress enacted the Energy Policy Act of 2005,
   45  amending the Clean Water Act, and that the state enacted the
   46  Renewable Fuels Standard, to establish a renewable fuel standard
   47  requiring the use of ethanol as an oxygenate additive for
   48  gasoline and biodiesel as an additive for ultra-low sulfur
   49  diesel fuel. An unintended consequence of the inclusion of
   50  ethanol in gasoline and biodiesel in diesel fuel has been to
   51  cause, and potentially cause, significant corrosion and other
   52  damage to storage tanks, piping, and storage tank system
   53  components regulated under this chapter. The Legislature further
   54  finds that storage tanks, piping, and storage tank system
   55  components have been found by the department in its equipment
   56  approval process to meet compatibility standards, however, these
   57  standards may have subsequently changed due to the introduction
   58  of ethanol and biodiesel. The state enacted secondary
   59  containment requirements before the mandated introduction of
   60  ethanol into gasoline and biodiesel into ultra-low sulfur diesel
   61  fuel. Therefore, owners and operators of petroleum storage
   62  facilities in the state that complied with the state’s secondary
   63  containment requirements and installed approved equipment that
   64  may not have been evaluated for compatibility with ethanol and
   65  biodiesel, cross-contamination due to the storage of gasoline
   66  and diesel fuel, and the effects of condensation and minimal
   67  amounts of water in storage tanks are at a particular risk for
   68  having to repair or replace equipment or take other preventive
   69  measures in advance of the equipment’s expected useful life in
   70  order to prevent releases or discharges of pollutants.
   71         (2) INTENT AND PURPOSE.—
   72         (a) It is the intent of the Legislature to establish the
   73  Inland Protection Trust Fund to serve as a repository for funds
   74  which will enable the department to respond without delay to
   75  incidents of inland contamination, and damage or potential
   76  damage to storage tank systems caused by ethanol or biodiesel as
   77  described in subsection (15) which may result in such incidents,
   78  related to the storage of petroleum and petroleum products in
   79  order to protect the public health, safety, and welfare and to
   80  minimize environmental damage.
   81         (4) USES.—Whenever, in its determination, incidents of
   82  inland contamination, or potential incidents as provided in
   83  subsection (15), related to the storage of petroleum or
   84  petroleum products may pose a threat to the public health,
   85  safety, or welfare, water resources, or the environment, the
   86  department shall obligate moneys available in the fund to
   87  provide for:
   88         (a) Prompt investigation and assessment of contamination
   89  sites.
   90         (b) Expeditious restoration or replacement of potable water
   91  supplies as provided in s. 376.30(3)(c)1.
   92         (c) Rehabilitation of contamination sites, which shall
   93  consist of cleanup of affected soil, groundwater, and inland
   94  surface waters, using the most cost-effective alternative that
   95  is technologically feasible and reliable and that provides
   96  adequate protection of the public health, safety, and welfare,
   97  and water resources, and that minimizes environmental damage,
   98  pursuant to the site selection and cleanup criteria established
   99  by the department under subsection (5), except that this
  100  paragraph does not authorize the department to obligate funds
  101  for payment of costs which may be associated with, but are not
  102  integral to, site rehabilitation, such as the cost for
  103  retrofitting or replacing petroleum storage systems.
  104         (d) Maintenance and monitoring of contamination sites.
  105         (e) Inspection and supervision of activities described in
  106  this subsection.
  107         (f) Payment of expenses incurred by the department in its
  108  efforts to obtain from responsible parties the payment or
  109  recovery of reasonable costs resulting from the activities
  110  described in this subsection.
  111         (g) Payment of any other reasonable costs of
  112  administration, including those administrative costs incurred by
  113  the Department of Health in providing field and laboratory
  114  services, toxicological risk assessment, and other assistance to
  115  the department in the investigation of drinking water
  116  contamination complaints and costs associated with public
  117  information and education activities.
  118         (h) Establishment and implementation of the compliance
  119  verification program as authorized in s. 376.303(1)(a),
  120  including contracting with local governments or state agencies
  121  to provide for the administration of such program through
  122  locally administered programs, to minimize the potential for
  123  further contamination sites.
  124         (i) Funding of the provisions of ss. 376.305(6) and
  125  376.3072.
  126         (j) Activities related to removal and replacement of
  127  petroleum storage systems, if repair, replacement, or other
  128  preventive measures are authorized under subsection (15), or
  129  exclusive of costs of any tank, piping, dispensing unit, or
  130  related hardware, if soil removal is approved as a component of
  131  site rehabilitation and requires removal of the tank where
  132  remediation is conducted under this section, or if such
  133  activities were justified in an approved remedial action plan.
  134         (k) Reasonable costs of restoring property as nearly as
  135  practicable to the conditions which existed before activities
  136  associated with contamination assessment or remedial action
  137  taken under s. 376.303(4).
  138         (l) Repayment of loans to the fund.
  139         (m) Expenditure of sums from the fund to cover ineligible
  140  sites or costs as set forth in subsection (13), if the
  141  department in its discretion deems it necessary to do so. In
  142  such cases, the department may seek recovery and reimbursement
  143  of costs in the same manner and pursuant to the same procedures
  144  established for recovery and reimbursement of sums otherwise
  145  owed to or expended from the fund.
  146         (n) Payment of amounts payable under any service contract
  147  entered into by the department pursuant to s. 376.3075, subject
  148  to annual appropriation by the Legislature.
  149         (o) Petroleum remediation pursuant to this section
  150  throughout a state fiscal year. The department shall establish a
  151  process to uniformly encumber appropriated funds throughout a
  152  state fiscal year and shall allow for emergencies and imminent
  153  threats to public health, safety, and welfare, water resources,
  154  and the environment as provided in paragraph (5)(a). This
  155  paragraph does not apply to appropriations associated with the
  156  free product recovery initiative provided in paragraph (5)(c) or
  157  the advanced cleanup program provided in s. 376.30713.
  158         (p) Enforcement of this section and ss. 376.30-376.317 by
  159  the Fish and Wildlife Conservation Commission and the Department
  160  of Environmental Protection. The department shall may disburse
  161  moneys to the commission for such purpose.
  162         (q) Payments for program deductibles, copayments, and
  163  limited contamination assessment reports that otherwise would be
  164  paid by another state agency for state-funded petroleum
  165  contamination site rehabilitation.
  166         (r) Payments for the repair or replacement of, or other
  167  preventive measures for, storage tanks, piping, or system
  168  components as provided in subsection (15). Such costs may
  169  include equipment, excavation, electrical work, and site
  170  restoration.
  172  The issuance of a site rehabilitation completion order pursuant
  173  to subsection (5) or paragraph (12)(b) for contamination
  174  eligible for programs funded by this section does not alter the
  175  project’s eligibility for state-funded remediation if the
  176  department determines that site conditions are not protective of
  177  human health under actual or proposed circumstances of exposure
  178  under subsection (5). The Inland Protection Trust Fund may be
  179  used only to fund the activities in ss. 376.30-376.317 except
  180  ss. 376.3078 and 376.3079. Amounts on deposit in the fund in
  181  each fiscal year must first be applied or allocated for the
  182  payment of amounts payable by the department pursuant to
  183  paragraph (n) under a service contract entered into by the
  184  department pursuant to s. 376.3075 and appropriated in each year
  185  by the Legislature before making or providing for other
  186  disbursements from the fund. This subsection does not authorize
  187  the use of the fund for cleanup of contamination caused
  188  primarily by a discharge of solvents as defined in s.
  189  206.9925(6), or polychlorinated biphenyls when their presence
  190  causes them to be hazardous wastes, except solvent contamination
  191  which is the result of chemical or physical breakdown of
  192  petroleum products and is otherwise eligible. Facilities used
  193  primarily for the storage of motor or diesel fuels as defined in
  194  ss. 206.01 and 206.86 are not excluded from eligibility pursuant
  195  to this section.
  197  detection, reporting, and cleanup of contamination caused by
  198  discharges of petroleum or petroleum products, the department
  199  shall, within the guidelines established in this subsection,
  200  implement a cost-sharing cleanup program to provide
  201  rehabilitation funding assistance for all property contaminated
  202  by discharges of petroleum or petroleum products from a
  203  petroleum storage system occurring before January 1, 1995,
  204  subject to a copayment provided for in a Petroleum Cleanup
  205  Participation Program site rehabilitation agreement. Eligibility
  206  is subject to an annual appropriation from the fund.
  207  Additionally, funding for eligible sites is contingent upon
  208  annual appropriation in subsequent years. Such continued state
  209  funding is not an entitlement or a vested right under this
  210  subsection. Eligibility shall be determined in the program,
  211  notwithstanding any other provision of law, consent order,
  212  order, judgment, or ordinance to the contrary.
  213         (a)1. The department shall accept any discharge reporting
  214  form received before January 1, 1995, as an application for this
  215  program, and the facility owner or operator need not reapply.
  216         2. Regardless of whether ownership has changed, owners or
  217  operators of property that is contaminated by petroleum or
  218  petroleum products from a petroleum storage system may apply for
  219  such program by filing a written report of the contamination
  220  incident, including evidence that such incident occurred before
  221  January 1, 1995, with the department. Incidents of petroleum
  222  contamination discovered after December 31, 1994, at sites which
  223  have not stored petroleum or petroleum products for consumption,
  224  use, or sale after such date shall be presumed to have occurred
  225  before January 1, 1995. An operator’s filed report shall be an
  226  application of the owner for all purposes.
  227         (b) Subject to annual appropriation from the fund, sites
  228  meeting the criteria of this subsection are eligible for up to
  229  $400,000 of site rehabilitation funding assistance in priority
  230  order pursuant to subsections (5) and (6). Sites meeting the
  231  criteria of this subsection for which a site rehabilitation
  232  completion order was issued before June 1, 2008, do not qualify
  233  for the 2008 increase in site rehabilitation funding assistance
  234  and are bound by the pre-June 1, 2008, limits. Sites meeting the
  235  criteria of this subsection for which a site rehabilitation
  236  completion order was not issued before June 1, 2008, regardless
  237  of whether they have previously transitioned to nonstate-funded
  238  cleanup status, may continue state-funded cleanup pursuant to
  239  this section until a site rehabilitation completion order is
  240  issued or the increased site rehabilitation funding assistance
  241  limit is reached, whichever occurs first. The department may not
  242  pay expenses incurred beyond the scope of an approved contract.
  243         (c) The department may also approve supplemental funding of
  244  up to $100,000 for additional remediation and monitoring if such
  245  remediation and monitoring is necessary to achieve a
  246  determination of “No Further Action.”
  247         (d) Upon notification by the department that rehabilitation
  248  funding assistance is available for the site pursuant to
  249  subsections (5) and (6), the property owner, operator, or person
  250  otherwise responsible for site rehabilitation shall provide the
  251  department with a limited contamination assessment report and
  252  shall enter into a Petroleum Cleanup Participation Program site
  253  rehabilitation agreement with the department. The limited
  254  contamination assessment report must be sufficient to support
  255  the proposed course of action and to estimate the cost of the
  256  proposed course of action. The agreement must provide for a 25
  257  percent cost savings to the department, a copayment by the
  258  owner, operator, or person otherwise responsible for conducting
  259  site rehabilitation, or a combination of cost savings and a
  260  copayment. Cost savings to the department may be demonstrated in
  261  the form of reduced rates by the proposed agency term contractor
  262  or the difference in cost associated with a Risk Management
  263  Options Level I closure versus a Risk Management Options Level
  264  II closure. For the purpose of this paragraph, the term:
  265         1. “Risk Management Options Level I” means a “No Further
  266  Action” closure without institutional controls or without
  267  institutional and engineering controls. This closure option
  268  applies subject to conditions in department rules and
  269  agreements.
  270         2. “Risk Management Options Level II” means a “No Further
  271  Action” closure where institutional controls and, if
  272  appropriate, engineering controls apply if the controls are
  273  protective of human health, public safety, and the environment.
  274  This closure option applies subject to conditions in department
  275  rules and agreements The owner, operator, or person otherwise
  276  responsible for conducting site rehabilitation shall adequately
  277  demonstrate the ability to meet the copayment obligation. The
  278  limited contamination assessment report and the copayment costs
  279  may be reduced or eliminated if the owner and all operators
  280  responsible for restoration under s. 376.308 demonstrate that
  281  they cannot financially comply with the copayment and limited
  282  contamination assessment report requirements. The department
  283  shall take into consideration the owner’s and operator’s net
  284  worth in making the determination of financial ability. In the
  285  event the department and the owner, operator, or person
  286  otherwise responsible for site rehabilitation cannot complete
  287  negotiation of the cost-sharing agreement within 120 days after
  288  beginning negotiations, the department shall terminate
  289  negotiations and the site shall be ineligible for state funding
  290  under this subsection and all liability protections provided for
  291  in this subsection shall be revoked.
  292         (e) A report of a discharge made to the department by a
  293  person pursuant to this subsection or any rules adopted pursuant
  294  to this subsection may not be used directly as evidence of
  295  liability for such discharge in any civil or criminal trial
  296  arising out of the discharge.
  297         (f) This subsection does not preclude the department from
  298  pursuing penalties under s. 403.141 for violations of any law or
  299  any rule, order, permit, registration, or certification adopted
  300  or issued by the department pursuant to its lawful authority.
  301         (g) Upon the filing of a discharge reporting form under
  302  paragraph (a), the department or local government may not pursue
  303  any judicial or enforcement action to compel rehabilitation of
  304  the discharge. This paragraph does not prevent any such action
  305  with respect to discharges determined ineligible under this
  306  subsection or to sites for which rehabilitation funding
  307  assistance is available pursuant to subsections (5) and (6).
  308         (h) The following are excluded from participation in the
  309  program:
  310         1. Sites at which the department has been denied reasonable
  311  site access to implement this section.
  312         2. Sites that were active facilities when owned or operated
  313  by the Federal Government.
  314         3. Sites that are identified by the United States
  315  Environmental Protection Agency to be on, or which qualify for
  316  listing on, the National Priorities List under Superfund. This
  317  exception does not apply to those sites for which eligibility
  318  has been requested or granted as of the effective date of this
  319  act under the Early Detection Incentive Program established
  320  pursuant to s. 15, chapter 86-159, Laws of Florida.
  321         4. Sites for which contamination is covered under the Early
  322  Detection Incentive Program, the Abandoned Tank Restoration
  323  Program, or the Petroleum Liability and Restoration Insurance
  324  Program, in which case site rehabilitation funding assistance
  325  shall continue under the respective program.
  327  department shall pay, pursuant to this subsection, up to $10
  328  million each fiscal year from the fund for the costs of labor
  329  and equipment to repair or replace petroleum storage systems
  330  that may have been damaged due to the storage of fuels blended
  331  with ethanol or biodiesel, or for preventive measures to reduce
  332  the potential for such damage.
  333         (a) A petroleum storage system owner or operator may
  334  request payment from the department for the repair or
  335  replacement of petroleum storage tanks, integral piping, or
  336  ancillary equipment that may have been damaged, or is subject to
  337  damage, by the storage of fuels blended with ethanol or
  338  biodiesel or for other preventive measures to ensure
  339  compatibility with ethanol or biodiesel in accordance with the
  340  following procedures:
  341         1. The petroleum storage system owner or operator may
  342  submit a request for payment to the department along with the
  343  following information:
  344         a. An affidavit from a petroleum storage system specialty
  345  contractor attesting to an opinion that the petroleum storage
  346  system may have been damaged as a result of the storage of fuel
  347  blended with ethanol or biodiesel or may not be compatible with
  348  fuels containing ethanol or biodiesel, or a combination of both.
  349  The affidavit must also include a proposal from the specialty
  350  contractor for repair or replacement of the equipment, or for
  351  the implementation of other preventive measures to reduce the
  352  probability of damage. If the specialty contractor proposes
  353  replacement of any equipment, the affidavit must include the
  354  reasons that repair or other preventive measures are not
  355  technically or economically feasible or practical.
  356         b. Copies of any inspection reports, including photographs,
  357  prepared by the specialty contractor or department or local
  358  program inspectors documenting the damage or potential for
  359  damage to the petroleum storage system.
  360         c. A proposal from the specialty contractor showing the
  361  proposed scope of the repair, replacement, or other preventive
  362  measures, including a detailed list of labor, equipment, and
  363  other associated costs. In the case of replacement or repair,
  364  the proposal must also include provisions for any preventive
  365  measures needed to prevent a recurrence of the damage, such as
  366  the use of corrosion inhibitors, the application of coatings
  367  compatible with ethanol or biodiesel, as appropriate, and the
  368  adoption of a maintenance plan.
  369         d. For proposals to replace storage tanks or piping, a
  370  statement from a certified public accountant indicating the
  371  depreciated value of the tanks or piping proposed for
  372  replacement. Applications for such proposals must also include
  373  documentation of the age of the storage tank or piping.
  374  Historical tank registration records may be used to determine
  375  the age of the storage tank and piping. The depreciated value
  376  shall be the maximum allowable replacement cost for the storage
  377  tank and piping, exclusive of labor costs. For the purposes of
  378  this paragraph, tanks that are 20 years old or older are deemed
  379  to be fully depreciated and have no replacement value.
  380         2. The department shall review applications for
  381  completeness, accuracy, and the reasonableness of costs and
  382  scope of work. Within 30 days after receipt of an application,
  383  the department must approve or deny the application, propose
  384  modification to the application, or request additional
  385  information.
  386         (b) If an application is approved, the department shall
  387  issue a purchase order to the petroleum storage system owner or
  388  operator. The purchase order shall:
  389         1. Reflect a payment due to the owner for the cost of the
  390  scope of work approved by the department, less a deductible of
  391  25 percent.
  392         2. State that a payment is not due to the owner pursuant to
  393  the purchase order until the scope of work authorized by the
  394  department has been completed in substantial conformity with the
  395  purchase order.
  396         3. Except for preventive maintenance contracts, specify
  397  that the work authorized in the purchase order must be
  398  substantially completed and paid for by the petroleum storage
  399  system owner or operator within 180 days after the date of the
  400  purchase order. After such time, the purchase order is void.
  401         4. For preventive maintenance contracts, the department
  402  shall develop a maintenance completion and payment schedule for
  403  approved applicants. The failure of an owner or operator to meet
  404  scheduled payments shall invalidate the purchase order for all
  405  future payments due pursuant to the order.
  406         (c)1. Except for maintenance contracts, the applicant may
  407  request that the department make payment following completion of
  408  the work authorized by the department, in accordance with the
  409  terms of the purchase order. The request must include a
  410  sufficient demonstration that the work has been completed in
  411  substantial compliance with the purchase order and that the
  412  costs have been fully paid. Upon such a showing, the department
  413  must issue the payment pursuant to the terms of the purchase
  414  order.
  415         2. For maintenance contracts, the department must make
  416  periodic payments pursuant to the schedule specified in the
  417  purchase order upon satisfactory showing that maintenance work
  418  has been completed and costs have been paid by the owner or
  419  operator as specified in the purchase order.
  420         (d) The department may develop forms to be used for
  421  application and payment procedures. Until such forms are
  422  developed, an applicant may submit the required information in
  423  any format, as long as the documentation is complete.
  424         (e) The department may request the assistance of the
  425  Department of Management Services or a third-party administrator
  426  to assist in the administration of the application and payment
  427  process. Any costs associated with this administration shall be
  428  paid from the funds identified in this section.
  429         (f) This subsection does not affect the obligations of
  430  facility owners or operators or petroleum storage system owners
  431  or operators to timely comply with department rules regarding
  432  the maintenance, replacement, and repair of petroleum storage
  433  systems in order to prevent a release or discharge of
  434  pollutants.
  435         (g) Payments may not be made for the following:
  436         1. Proposal costs or costs related to preparation of the
  437  application and required documentation;
  438         2. Certified public accountant costs;
  439         3. Except as provided in subsection (k), any costs in
  440  excess of the amount approved by the department under paragraph
  441  (b) or which are not in substantial compliance with the purchase
  442  order;
  443         4. Costs associated with storage tanks, piping, or
  444  ancillary equipment that has previously been repaired or
  445  replaced for which costs have been paid under this section;
  446         5. Facilities that are not in compliance with department
  447  storage tank rules, until the noncompliance issues have been
  448  resolved; or
  449         6. Costs associated with damage to petroleum storage
  450  systems caused in whole or in part by causes other than the
  451  storage of fuels blended with ethanol or biodiesel.
  452         (h) Applications may be submitted on a first-come, first
  453  served basis. However, the department may not issue purchase
  454  orders unless funds remain for the current fiscal year.
  455         (i) A petroleum storage system owner or operator may not
  456  receive more than $200,000 annually for equipment replacement,
  457  repair, or preventive measures at any single facility, or
  458  $500,000 annually in aggregate for all facilities owned or
  459  operated by the owner or operator it owns or operates.
  460         (j) Owners or operators that have incurred costs for
  461  repair, replacement, or other preventive measures as described
  462  in this subsection during the period of July 1, 2015, through
  463  June 30, 2019, may apply to request payment for such costs from
  464  the department using the procedure in paragraphs (b), (c), and
  465  (d). The department may not disburse payment for approved
  466  applications for such work until all purchase orders for
  467  previously approved applications have been paid and unless funds
  468  remain available for the fiscal year. Such payment is subject to
  469  a deductible of 25 percent of the cost of the scope of work
  470  approved by the department under this paragraph.
  471         (k) For new petroleum requirement registrations after July
  472  1, 2019, the department shall only register equipment that meets
  473  applicable standards for compatibility for ethanol blends,
  474  biodiesel blends, and other alternative fuels that are likely to
  475  be stored in such systems.
  476         Section 2. Subsection (2) of section 376.30713, Florida
  477  Statutes, is amended to read:
  478         376.30713 Advanced cleanup.—
  479         (2) The department may approve an application for advanced
  480  cleanup at eligible sites, including applications submitted
  481  pursuant to paragraph (c), notwithstanding the site’s priority
  482  ranking established pursuant to s. 376.3071(5)(a), pursuant to
  483  this section. Only the facility owner or operator or the person
  484  otherwise responsible for site rehabilitation qualifies as an
  485  applicant under this section.
  486         (a) Advanced cleanup applications may be submitted between
  487  May 1 and June 30 and between November 1 and December 31 of each
  488  fiscal year. Applications submitted between May 1 and June 30
  489  shall be for the fiscal year beginning July 1. An application
  490  must consist of:
  491         1. A commitment to pay 25 percent or more of the total
  492  cleanup cost deemed recoverable under this section along with
  493  proof of the ability to pay the cost share. The department shall
  494  determine whether the cost savings demonstration is acceptable.
  495  Such determination is not subject to chapter 120.
  496         a. Applications for the aggregate cleanup of five or more
  497  sites may be submitted in one of two formats to meet the cost
  498  share requirement:
  499         (I) For an aggregate application proposing that the
  500  department enter into a performance-based contract, the
  501  applicant may use a commitment to pay, a demonstrated cost
  502  savings to the department, or both to meet the requirement.
  503         (II) For an aggregate application relying on a demonstrated
  504  cost savings to the department, the applicant shall, in
  505  conjunction with the proposed agency term contractor, establish
  506  and provide in the application the percentage of cost savings in
  507  the aggregate that is being provided to the department for
  508  cleanup of the sites under the application compared to the cost
  509  of cleanup of those same sites using the current rates provided
  510  to the department by the proposed agency term contractor.
  511         b. Applications for the cleanup of individual sites may be
  512  submitted in one of two formats to meet the cost-share
  513  requirement:
  514         (I) For an individual application proposing that the
  515  department enter into a performance-based contract, the
  516  applicant may use a commitment to pay, a demonstrated cost
  517  savings to the department, or both to meet the requirement.
  518         (II) For an individual application relying on a
  519  demonstrated cost savings to the department, the applicant
  520  shall, in conjunction with the proposed agency term contractor,
  521  establish and provide in the application a 25-percent cost
  522  savings to the department for cleanup of the site under the
  523  application compared to the cost of cleanup of the same site
  524  using the current rates provided to the department by the
  525  proposed agency term contractor.
  526         2. A nonrefundable review fee of $250 to cover the
  527  administrative costs associated with the department’s review of
  528  the application.
  529         3. A property owner or responsible party agreement in which
  530  the property owner or responsible party commits to continue to
  531  participate in the advanced cleanup program upon completion of
  532  the limited contamination assessment and finalization of the
  533  proposed course of action limited contamination assessment
  534  report.
  535         4. A conceptual proposed course of action.
  536         5. A department site access agreement, or similar
  537  agreements approved by the department that do not violate state
  538  law, entered into with the property owner or owners, as
  539  applicable, and evidence of authorization from such owner or
  540  owners for petroleum site rehabilitation program tasks
  541  consistent with the proposed course of action where the
  542  applicant is not the property owner for any of the sites
  543  contained in the application.
  545  The limited contamination assessment report must be sufficient
  546  to support the proposed course of action and to estimate the
  547  cost of the proposed course of action. Costs incurred related to
  548  conducting the limited contamination assessment report are not
  549  refundable from the Inland Protection Trust Fund. Site
  550  eligibility under this subsection or any other provision of this
  551  section is not an entitlement to advanced cleanup or continued
  552  restoration funding.
  553         6.A certification The applicant shall certify to the
  554  department that the applicant has the prerequisite authority to
  555  enter into an advanced cleanup contract with the department. The
  556  certification must be submitted with the application.
  557         (b) The department shall rank the applications based on the
  558  percentage of cost-sharing commitment proposed by the applicant,
  559  with the highest ranking given to the applicant who proposes the
  560  highest percentage of cost sharing. If the department receives
  561  applications that propose identical cost-sharing commitments and
  562  that exceed the funds available to commit to all such proposals
  563  during the advanced cleanup application period, the department
  564  shall proceed to rerank those applicants. Those applicants
  565  submitting identical cost-sharing proposals that exceed funding
  566  availability must be so notified by the department and offered
  567  the opportunity to raise their individual cost-share
  568  commitments, in a period specified in the notice. At the close
  569  of the period, the department shall proceed to rerank the
  570  applications pursuant to this paragraph.
  571         (c) Applications for the advanced cleanup of individual
  572  sites scheduled for redevelopment are not subject to the
  573  application period limitations or the requirement to pay 25
  574  percent of the total cleanup cost specified in paragraph (a) or
  575  to the cost-sharing commitment specified in paragraph (1)(d).
  576  Applications must be accepted on a first-come, first-served
  577  basis and are not subject to the ranking provisions of paragraph
  578  (b). Applications for the advanced cleanup of individual sites
  579  scheduled for redevelopment must include:
  580         1. A nonrefundable review fee of $250 to cover the
  581  administrative costs associated with the department’s review of
  582  the application.
  583         2. A limited contamination assessment report. The report
  584  must be sufficient to support the proposed course of action and
  585  to estimate the cost of the proposed course of action. Costs
  586  incurred related to conducting and preparing the report are not
  587  refundable from the Inland Protection Trust Fund.
  588         3. A proposed course of action for cleanup of the site.
  589         4. If the applicant is not the property owner for any of
  590  the sites contained in the application, a department site access
  591  agreement, or a similar agreement approved by the department and
  592  not in violation of state law, entered into with the property
  593  owner or owners, as applicable, and evidence of authorization
  594  from such owner or owners for petroleum site rehabilitation
  595  program tasks consistent with the proposed course of action.
  596         5. A certification to the department stating that the
  597  applicant has the prerequisite authority to enter into an
  598  advanced cleanup contract with the department. The advanced
  599  cleanup contract must include redevelopment and site
  600  rehabilitation milestones.
  601         6. Documentation, in the form of a letter from the local
  602  government having jurisdiction over the area where the site is
  603  located, which states that the local government is in agreement
  604  with or approves the proposed redevelopment and that the
  605  proposed redevelopment complies with applicable law and
  606  requirements for such redevelopment.
  607         7. A demonstrated reasonable assurance that the applicant
  608  has sufficient financial resources to implement and complete the
  609  redevelopment project.
  610         (d) Upon acceptance of an advanced cleanup application, the
  611  applicant’s selected agency term contractor shall submit to the
  612  department a scope of work for a limited contamination
  613  assessment. When the scope of work is negotiated and agreed
  614  upon, the department shall issue one or more purchase orders of
  615  up to $35,000 each for the limited contamination assessment. The
  616  limited contamination assessment report must be sufficient to
  617  support the proposed course of action and to estimate the cost
  618  of the proposed course of action.
  619         (e) Site eligibility under this section is not an
  620  entitlement to advanced cleanup funding or continued restoration
  621  funding.
  622         Section 3. This act shall take effect July 1, 2020.