Consensus
developed around two ideas: extending the Fund's sunset date and increasing
the transport load fee. There was also considerable discussion about
the need for a risk-based approach to cleanups as a means of reducing
costs.
The Committee's
recommendation was adopted by the PSTIF Board of Trustees on November
15, and is reprinted in its entirety below:
Recommended
Legislative Solution
The
Petroleum Storage Tank Insurance Fund (PSTIF) Board of Trustees should
be given authority to raise and/or lower transport load fee as needed
to finance PSTIF's obligations, subject to the following limitations:
Maximum
allowable fee is $60 per transport load (8,000 gallons);
If the
Fund's cash balance on the first day of any month exceeds the sum
of its liabilities plus ten percent, the transport load fee automatically
reverts to $25 per transport load on the first day of the second month
following this event;
A cap
of $100 million remains in statute (i.e., collection of transport
load fee ceases if Fund balance reaches $100 million);
PSTIF
Board of Trustees can only raise or lower the fee after giving at
least 60 days' notice to all fee payers of its intention to do so,
and must coordinate its actions with Department of Revenue to allow
adequate time for implementation of any changes;
Language
is added to the statute limiting any additional expenditures from
the Fund for regulatory or other activities which are not directly
related to the purposes of the Fund, and which are conducted without
a contractual agreement between the Board and the party spending the
money.
PSTIF
Board of Trustees should be given explicit authority in the statute
to prioritize claims, in consultation with the Department of Natural
Resources (as it has already done by putting new remedial claims "on
hold.")
Sunset
date should be extended to December 31, 2010, with the Board given
explicit authority to continue in existence beyond that date, to carry
out activities as needed, and to pay out funds as needed to complete
cleanups and finalize processing of all claims received by that date.
(This means UST and AST owners could continue buying insurance from
PSTIF until December 31, 2010.)
Legislative
Action
The concept
recommended by the Advisory Committee and approved by the Board of
Trustees will now have to be transformed into a bill for consideration
by the Missouri legislature. Both the Missouri House of Representatives
and the Missouri Senate are still in the process of getting organized
after the recent elections. One or more sponsors for the bill will
be enlisted, and the Legislature will consider the bill after it begins
work in January.
The PSTIF
is grateful for the advice, support and assistance it receives from
oil companies, petroleum marketers, environmental consultants and
contractors, insurance agents and brokers, attorneys, property owners,
and others. Trade associations representing some of these interests
will be active in supporting the proposed legislative solution, with
the Missouri Association of Petroleum Marketers and Convenience Stores
expected to take a lead role.
Additional
information about the legislation will be provided in subsequent issues
of this newsletter.
Closure
Guidance Manual
The
Department of Natural Resources is circulating a proposed revision
of its Closure Guidance Document, which contains procedures for removal
of tanks and reporting on tank removal projects. The draft contains
several new items and changes from the 1996 version.
Substantive
changes are proposed, including requiring a registered geologist to
participate in certain projects. In addition, DNR is proposing to
lower the cleanup standards for MTBE and benzene in soil and raise
the TPH standards. Changes to this document can affect costs of cleanup,
and PSTIF's staff and Advisory Committee are reviewing the proposed
changes.
Other
interested parties may obtain a copy for review by contacting DNR's
Tanks Section at (573) 751-6822. The Department is requesting comments
by December 15 and plans to hold a training session for contractors
and consultants in January to explain the new guidance.
DNR
AST Regulations
Also
"on the table" for discussion is a new regulation drafted by DNR to
set requirements for cleanup of AST sites. Current regulations only
address UST sites, although DNR's Tanks Section has been using a similar
approach to review site characterization reports and corrective action
plans for AST sites.
PSTIF
has encouraged the publication of a rule formally establishing cleanup
requirements for AST sites, so the Fund and AST property owners will
know what is required. The PSTIF Advisory Committee provided a significant
number of comments on the draft rule to DNR staff at its November
9 meeting.
USTfield
Pilot Project
A Kansas
City, Missouri location was selected by US EPA as one of ten pilot
projects where federal monies from the LUST Trust Fund will be used
to address an "USTfield" problem. Similar to Brownfields, USTfields
are properties where abandoned underground tanks and the associated
environmental liability prevent redevelopment of the site.
PSTIF
staff, working with EPA, DNR and city staff, identified sites in Kansas
City and St. Louis as candidates for the pilot program. The Kansas
City location, which is a combination of properties, was selected
by EPA and an announcement was made on October 31 that $100,000 is
being awarded for the project. The funds will flow through EPA to
the state, who plans to use the money for tank removal and cleanup.
The city
and PSTIF are participating as partners in the project to provide
required matching funds.
Gasoline-Based
Fuel Cell
In August,
ExxonMobil and General Motors made an announcement that could have
an impact on future gasoline usage and air emissions. The companies
have developed a processor which uses gasoline to create the hydrogen
necessary to power a fuel cell.
Research
and development efforts continue. The invention could mean vehicles
with higher fuel efficiency and lower emissions which make use of
the existing gasoline storage and supply infrastructure. GM plans
to have a demonstration vehicle using the technology within 18 months.
Latest
Leaks is a newsletter of the Missouri Petroleum Storage
Tank Insurance Fund.
Board
of Trustees
William
"Bart" Creech III, Chairman
Bob Abernathy, Vice Chairman
John Boehm
Sam Carter
Gary D. Collins
Neal A. Gibbons, Sr.
Ron Hooker
Robert "Bob" Jackson
Steve Mahfood
Don Shaikewitz
Katherine "Katie" Wesselschmidt
Executive
Director
Carol R. Eighmey
PO Box 836
Jefferson City, MO 65102
573-522-2352
Third
Party Administrator
Williams & Company Consulting, Inc.
1-800-765-2765
Send
address changes to:
PSTIF, PO Box 104116
Jefferson City, MO 65110
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