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90_HB2668
415 ILCS 5/57.4
415 ILCS 5/57.4a new
415 ILCS 5/57.4b new
415 ILCS 5/57.4c new
415 ILCS 5/57.11
430 ILCS 15/4 from Ch. 127 1/2, par. 156
Amends the Petroleum Underground Storage Tank Title of
the Environmental Protection Act to create the Underground
Storage Tank Management Board to oversee the payment of
claims under the Underground Storage Tank Fund. Provides for
the competitive selection of a Program Administrator to
handle the processing of claims and other tasks assigned by
the Management Board. Amends the Gasoline Storage Act to
provide that the Office of the State Fire Marshal shall
administer the Underground Storage Tank Program in
cooperation with the Management Board, in addition to the
Environmental Protection Agency. Effective immediately.
LRB9008765LDbdA
LRB9008765LDbdA
1 AN ACT concerning underground storage tanks, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Environmental Protection Act is amended
6 by changing Sections 57.4 and 57.11 and adding Sections
7 57.4a, 57.4b, and 57.4c as follows:
8 (415 ILCS 5/57.4)
9 Sec. 57.4. State Agencies. Except as provided under
10 Sections 57.4a, 57.4b, and 57.4c, the Office of the State
11 Fire Marshal and the Illinois Environmental Protection Agency
12 shall administer the Leaking Underground Storage Tank Program
13 in accordance with the terms of this Title.
14 (Source: P.A. 88-496.)
15 (415 ILCS 5/57.4a new)
16 Sec. 57.4a. Creation of Underground Storage Tank
17 Management Board.
18 (a) It is hereby declared to be in the public interest
19 to create a board to oversee the administration of the LUST
20 Program by a private entity under contract with the board.
21 (b) There is created the Underground Storage Tank (UST)
22 Management Board to manage the LUST Program. The UST
23 Management Board is created as a political subdivision and
24 body politic and corporate and is not a State agency.
25 (c) The UST Management Board shall consist of 11
26 members, including the Director of the Illinois
27 Environmental Protection Agency, the Director of the
28 Department of Revenue, the Director of the Department of
29 Insurance, and the State Fire Marshal, or their designees,
30 and 2 representatives each from the Illinois Petroleum
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1 Marketers Association, the Illinois Petroleum Council, and
2 the Illinois Manufacturers Association. The Governor shall
3 designate one member to serve as Chairperson.
4 (d) Initial UST Management Board members shall be
5 appointed by the Governor to serve as follows: 2 members
6 shall serve one-year terms, 3 members shall serve 2-year
7 terms, and 3 members shall serve 3-year terms, and until
8 their successors are appointed. As terms of initial members
9 expire, their successors shall be appointed to terms to
10 expire the first day of July 3 years following their
11 appointment.
12 (e) A vacancy in the UST Management Board occurring for
13 any reason other than the expiration of a term shall be
14 filled for the unexpired term in the same manner as the
15 original appointment.
16 (f) A member of the UST Management Board may be removed
17 by the Governor for neglect of duty, misfeasance,
18 malfeasance, or nonfeasance in office.
19 (415 ILCS 5/57.4b new)
20 Sec. 57.4b. Powers and duties of the UST Management
21 Board; immunity.
22 (a) The UST Management Board shall prepare an annual
23 report summarizing its activities during the preceding
24 calendar year, including but not limited to expenses incurred
25 in the administration of the LUST Program, paid claims and
26 incurred losses, and other information requested by the
27 Majority and Minority Leaders of the General Assembly. The
28 initial annual report shall be submitted to the Secretary of
29 the Senate and the Clerk of the House of Representatives one
30 year following the awarding of a contract to a Program
31 Administrator under Section 57.4c, and on the same day of
32 every year thereafter.
33 (b) The UST Management Board shall establish a plan for
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1 administering the LUST Program, including but not limited to
2 the following components:
3 (1) procedures for selecting a Program
4 Administrator in accordance with Section 57.4c of this
5 Act;
6 (2) procedures for the operation of the UST
7 Management Board;
8 (3) procedures for the handling and accounting of
9 assets and moneys of the Lust Program;
10 (4) an agenda for publicizing the LUST Program,
11 including its eligibility requirements, and for
12 maintaining public awareness of the LUST Program; and
13 (5) procedures for handling other matters as
14 necessary to fulfill its duties under this Section.
15 (c) The UST Management Board may enter into contracts as
16 necessary to carry out the provisions and purposes of this
17 Act.
18 (d) The UST Management Board may take legal action as it
19 deems necessary, including but not limited to avoiding the
20 payment of improper claims against the LUST Program and
21 recovering amounts mistakenly or improperly paid under the
22 LUST Program.
23 (e) The UST Management Board shall not be liable for any
24 obligation of the LUST Program. In addition, there shall be
25 no liability on the part of any member or employee of the
26 UST Management Board or their represented agencies or
27 associations and no cause of action of any nature may arise
28 against them for any action taken or omission made by them
29 in the performance of their duties, unless the action or
30 omission constitutes willful or wanton misconduct. The UST
31 Management Board may provide for the indemnification and
32 legal representation of its members and employees.
33 (f) The UST Management Board may adopt rules as
34 necessary to implement this Section and Section 57.4c.
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1 (415 ILCS 5/57.4c new)
2 Sec. 57.4c. LUST Program Administrator selection;
3 duties.
4 (a) The UST Management Board shall meet on or before
5 July 15, 1998 to develop a Request for Proposal that shall
6 be distributed for the purpose of selecting a Lust Program
7 Administrator. The Request for Proposal shall be prepared on
8 or before September 1, 1998 and distributed on or before
9 September 15, 1998. Persons or entities interested shall
10 respond to the UST Management Board's Request on or before
11 November 1, 1998. The UST Management Board shall select a
12 proposal and award a contract on or before January 1, 1999.
13 If a contract is not awarded by the UST Management Board
14 before February 1, 1999, the UST Management Board shall
15 terminate on that date and all of the changes made by this
16 amendatory Act of 1998 shall be rendered null and void.
17 (b) The UST Management Board shall develop the Request
18 for Proposal based on the following minimum criteria:
19 (1) the respondent's ability to manage the LUST
20 Program;
21 (2) the efficiency of the respondent's claim
22 reimbursement procedures;
23 (3) an estimate of the total charges for
24 administering the LUST Program; and
25 (4) the respondent's ability to administer the LUST
26 Program in a cost-effective manner.
27 (c) The LUST Program Administrator shall serve for a
28 period of 5 years subject to removal for cause, as determined
29 by majority vote of at least 5 members of the UST Management
30 Board, and subject to the terms, conditions, and limitations
31 of the contract between the UST Management Board and LUST
32 Program Administrator. At least one year before the
33 expiration of each 5-year period of service by a Program
34 Administrator, the UST Management Board shall advertise for,
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1 and accept bids to serve as, the Program Administrator for
2 the succeeding 5-year period.
3 (d) The LUST Program Administrator shall:
4 (1) perform all necessary functions as may be
5 assigned by the Board to assure timely payment of claims
6 to participants under the LUST Program;
7 (2) develop an efficient claim processing system to
8 ensure accurate and timely claims processing;
9 (3) comply with environmental cleanup standards
10 that adequately remedy environmental contamination while
11 controlling costs to the greatest extent possible;
12 (4) develop statistically-based norms and standards
13 for use in reasonable and necessary corrective action
14 cost decisions to determine the most cost-effective
15 method to respond to incidents;
16 (5) ensure that the LUST Program is in compliance
17 with State and federal laws and regulations; and
18 (6) review claims for reimbursement and forward the
19 claims to the Agency for final approval and payment.
20 (415 ILCS 5/57.11)
21 Sec. 57.11. Underground Storage Tank Fund; creation.
22 (a) There is hereby created in the State Treasury a
23 special fund to be known as the Underground Storage Tank
24 Fund. There shall be deposited into the Underground Storage
25 Tank Fund all monies received by the Office of the State Fire
26 Marshal as fees for underground storage tanks under Sections
27 4 and 5 of the Gasoline Storage Act and as fees pursuant to
28 the Motor Fuel Tax Law. All amounts held in the Underground
29 Storage Tank Fund shall be invested at interest by the State
30 Treasurer. All income earned from the investments shall be
31 deposited into the Underground Storage Tank Fund no less
32 frequently than quarterly. Moneys in the Underground Storage
33 Tank Fund, pursuant to appropriation, may be used by the
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1 Agency and the Office of the State Fire Marshal for the
2 following purposes:
3 (1) To take action authorized under Section 57.12
4 to recover costs under Section 57.12.
5 (2) To assist in the reduction and mitigation of
6 damage caused by leaks from underground storage tanks,
7 including but not limited to, providing alternative water
8 supplies to persons whose drinking water has become
9 contaminated as a result of those leaks.
10 (3) To be used as a matching amount towards federal
11 assistance relative to the release of petroleum from
12 underground storage tanks.
13 (4) For the costs of administering activities of
14 the Agency, and the Office of the State Fire Marshal, and
15 the UST Management Board relative to the Underground
16 Storage Tank Fund.
17 (5) For payment of costs of corrective action
18 incurred by and indemnification to operators of
19 underground storage tanks as provided in this Title.
20 (6) For a total of 2 demonstration projects in
21 amounts in excess of a $10,000 deductible charge designed
22 to assess the viability of corrective action projects at
23 sites which have experienced contamination from petroleum
24 releases. Such demonstration projects shall be conducted
25 in accordance with the provision of this Title.
26 (7) Subject to appropriation, moneys in the
27 Underground Storage Tank Fund may also be used by the
28 Department of Revenue for the costs of administering its
29 activities relative to the Fund and for refunds provided
30 for in Section 13a.8 of the Motor Fuel Tax Act.
31 (b) Moneys in the Underground Storage Tank Fund may,
32 pursuant to appropriation, be used by the Office of the State
33 Fire Marshal or the Agency to take whatever emergency action
34 is necessary or appropriate to assure that the public health
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1 or safety is not threatened whenever there is a release or
2 substantial threat of a release of petroleum from an
3 underground storage tank and for the costs of administering
4 its activities relative to the Underground Storage Tank Fund.
5 (c) Beginning July 1, 1993, the Governor shall certify
6 to the State Comptroller and State Treasurer the monthly
7 amount necessary to pay debt service on State obligations
8 issued pursuant to Section 6 of the General Obligation Bond
9 Act. On the last day of each month, the Comptroller shall
10 order transferred and the Treasurer shall transfer from the
11 Underground Storage Tank Fund to the General Obligation Bond
12 Retirement and Interest Fund the amount certified by the
13 Governor, plus any cumulative deficiency in those transfers
14 for prior months.
15 (Source: P.A. 90-491, eff. 1-1-98.)
16 Section 10. The Gasoline Storage Act is amended by
17 changing Section 4 as follows:
18 (430 ILCS 15/4) (from Ch. 127 1/2, par. 156)
19 Sec. 4. Underground Storage Tank Program;
20 administration.
21 (a) In cooperation with the Illinois Environmental
22 Protection Agency and the Underground Storage Tank Management
23 Board created under Section 57.4a of the Environmental
24 Protection Act, the Office of the State Fire Marshal shall
25 administer the Illinois Underground Storage Tank Program in
26 accordance with this Section and Section 22.12 of the
27 Environmental Protection Act.
28 (b) (1)(A) The owner of an underground storage tank that
29 was not taken out of operation before January 2, 1974, and
30 that at any time between January 1, 1974, and September 24,
31 1987, contained petroleum or petroleum products or hazardous
32 substances, with the exception of hazardous wastes, shall
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1 register the tank with the Office of the State Fire Marshal.
2 No underground storage tank taken out of operation before
3 January 2, 1974, may be registered under this Act. No
4 underground storage tank otherwise required to be registered
5 under this subparagraph (A) may be registered under this Act
6 if that tank was removed before September 24, 1987.
7 (B) The owner of a heating oil underground storage tank
8 having a capacity of greater than 1100 gallons that was not
9 taken out of operation before January 2, 1974, and that at
10 any time between January 1, 1974, and July 11, 1990,
11 contained heating oil shall register the tank with the Office
12 of the State Fire Marshal. No heating oil underground storage
13 tank taken out of operation before January 2, 1974, may be
14 registered under this Act. No heating oil underground
15 storage tank otherwise required to be registered under this
16 subparagraph (B) may be registered under this Act if that
17 tank was removed before July 11, 1990.
18 (C) The owner of a heating oil underground storage tank
19 having a capacity of 1,100 gallons or less that was not taken
20 out of operation before January 2, 1974, and that any time
21 between January 1, 1974, and September 6, 1991, contained
22 heating oil shall register the tank with the Office of State
23 Fire Marshal. No heating oil underground storage tank taken
24 out of operation before January 2, 1974, may be registered
25 under this Act. No heating oil underground storage tank
26 otherwise required to be registered under this subparagraph
27 (C) may be registered under this Act if that tank was removed
28 before September 6, 1991.
29 (D) "Operation", as used in this subsection (b), means
30 that the tank must have had input or output of petroleum,
31 petroleum products, or hazardous substances, with the
32 exception of hazardous wastes, during the regular course of
33 its usage. "Operation" does not include (i) compliance with
34 leak detection requirements as prescribed by rules and
-9- LRB9008765LDbdA
1 regulations of the Office of State Fire Marshal or (ii) the
2 mere containment or storage of petroleum, petroleum products,
3 or hazardous substances, with the exception of hazardous
4 wastes.
5 (2) The owner of an underground storage tank who
6 registered the tank with the Office of the State Fire Marshal
7 under Section 4 of the State Fire Marshal Act prior to
8 September 24, 1987 shall be deemed to have registered the
9 tank under paragraph (1).
10 (3)(A) Each person required to register an underground
11 storage tank, other than a heating oil underground storage
12 tank, under paragraph (1) shall pay the Office of the State
13 Fire Marshal a registration fee of $500 for each tank
14 registered, to be deposited in the Underground Storage Tank
15 Fund.
16 (B) Each person required to register a heating oil
17 underground storage tank shall pay to the Office of the State
18 Fire Marshal a registration fee of $100 for each tank
19 registered before July 2, 1992, and $500 for each tank
20 registered after July 1, 1992, to be deposited into the
21 Underground Storage Tank Fund.
22 (C) No registration fee shall be due under this
23 paragraph (3) for underground storage tanks deemed registered
24 pursuant to paragraph (2).
25 (4) The Office of the State Fire Marshal shall establish
26 procedures relating to the collection of the fees authorized
27 by this subsection. Such procedures shall include, but need
28 not be limited to, the time and manner of payment to the
29 Office of the State Fire Marshal.
30 (5) The State Fire Marshal is authorized to enter into
31 such contracts and agreements as may be necessary, and as
32 expeditiously as necessary, to carry out the Office of the
33 State Fire Marshal's duties under this subsection.
34 (6)(A) The owner of an underground storage tank, other
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1 than a heating oil underground storage tank, which is
2 installed or replaced after September 24, 1987, and which
3 contained, contains or may contain petroleum or petroleum
4 products or hazardous substances, with the exception of
5 hazardous wastes, shall register the tank with the Office of
6 the State Fire Marshal prior to the installation or
7 replacement.
8 (B) The owner of a heating oil underground storage tank
9 installed or replaced after July 11, 1990, and which
10 contained or may contain heating oil shall register the tank
11 with the Office of the State Fire Marshal before the
12 installation or replacement.
13 (7) Any person required to register an underground
14 storage tank under paragraph (1) or paragraph (6) of this
15 subsection shall register the tank on forms provided by the
16 Office of the State Fire Marshal.
17 (c) Except as otherwise provided in subsection (d), a
18 person who is the owner of an underground storage tank
19 containing petroleum or petroleum products or hazardous
20 substances, except hazardous waste, registered under
21 subsection (b) shall notify the Office of the State Fire
22 Marshal of any change in the information required under this
23 Section or of the removal of an underground storage tank from
24 service.
25 (d) A person who is the owner of an underground storage
26 tank containing petroleum or petroleum products or hazardous
27 substances, except hazardous waste, the contents of which are
28 changed routinely, shall indicate all the materials which are
29 stored in the tank on the registration form. A person
30 providing the information described in this subsection is not
31 required to notify the Office of the State Fire Marshal of
32 changes in the contents of the tank unless the material to be
33 stored in the tank differs from the information provided on
34 the registration form.
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1 (e) For purposes of this Act:
2 The terms "petroleum" and "underground storage tank"
3 shall have the meanings ascribed to them in Subtitle I of the
4 Hazardous and Solid Waste Amendments of 1984 (P.L. 98-616) of
5 the Resource Conservation and Recovery Act of 1976 (P.L.
6 94-580), except that "underground storage tank" shall include
7 heating oil underground storage tanks; however no release
8 detection shall be required of heating oil tanks, in
9 existence as of July 11, 1990, prior to December 22, 1998.
10 The Office of the State Fire Marshal shall have the authority
11 to determine the criteria for classification of an
12 underground storage tank as being either a petroleum
13 underground storage tank or a hazardous substance underground
14 storage tank.
15 When used in connection with, or when otherwise relating
16 to underground storage tanks, the terms "operator", "owner",
17 and "facility" shall have the meanings ascribed to them in
18 Subtitle I of the Hazardous and Solid Waste Amendments of
19 1984 (P.L. 98-616) of the Resource Conservation and Recovery
20 Act of 1976 (P.L. 94-580).
21 "Bodily injury" means bodily injury, sickness, or disease
22 sustained by a person, including death at any time, resulting
23 from a release of petroleum from an underground storage tank.
24 "Property damage" means physical injury to, destruction
25 of, or contamination of tangible property, including all
26 resulting loss of use of that property; or loss of use of
27 tangible property that is not physically injured, destroyed,
28 or contaminated, but has been evacuated, withdrawn from use,
29 or rendered inaccessible because of an occurrence.
30 "Occurrence" means an accident, including continuous or
31 repeated exposure to conditions, which results in a release
32 of petroleum into the environment from an underground storage
33 tank.
34 "Heating oil" means petroleum that is No. 1, No. 2, No. 4
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1 light, No. 4 heavy, No. 5 light, No. 5 heavy, or No. 6
2 technical grades of fuel oil; or other residual fuel oils
3 including Navy Special Fuel Oil and Bunker C.
4 "Heating oil underground storage tank" means an
5 underground storage tank serving other than farms or
6 residential units that is used exclusively to store heating
7 oil for consumptive use on the premises where stored.
8 (Source: P.A. 87-323; 87-1088; 88-496.)
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.