RELATING TO DIGITAL FINANCIAL ASSET.

2025 Regular Session Introduced by Cory Chun and 9 co-sponsors

House Bill 1277 requires petroleum tank owners to pay a $7,500 deductible for corrective actions, enhancing accountability and environmental protection in Arkansas.

Received from House (Hse. Com. No. 347).

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Purpose and Intent

House Bill 1277 aims to amend existing regulations concerning payments for corrective actions related to petroleum storage tanks in Arkansas. The bill seeks to clarify financial responsibilities for owners and operators of these tanks, particularly regarding deductibles for corrective actions and the conditions under which payments can be denied.

Key Provisions

The bill includes several significant amendments to the Arkansas Code § 8-7-907, which governs payments for corrective actions regarding petroleum storage tanks:

Deductible Requirement:

Owners or operators must now expend a deductible of $7,500 before receiving payments from the Petroleum Storage Tank Trust Fund for corrective actions.
This deductible is intended to function similarly to an insurance policy deductible.

Increased Deductible Cap:

The bill allows for a maximum deductible of $30,000 for certain violations, as determined by rules set forth by the Arkansas Pollution Control and Ecology Commission, in consultation with the Advisory Committee on Petroleum Storage Tanks.

Payment Denial Conditions:

Payments for corrective actions may be denied if the owner or operator fails to report a release of petroleum as required, and this failure results in environmental harm due to delays in corrective action.

Rule-Making Authority:

The Arkansas Pollution Control and Ecology Commission is granted the authority to establish rules regarding the deductible amounts and conditions under which payments can be made or denied.

Affected Parties

Owners and Operators of Petroleum Storage Tanks: The primary stakeholders affected by this bill are the owners and operators of underground storage tanks, who will need to ensure they meet the new financial responsibility requirements.

Environmental Agencies: The Arkansas Pollution Control and Ecology Commission will be responsible for implementing the new rules and overseeing compliance.

Procedural Timeline

Introduced: January 28, 2025

Amendments: The bill underwent amendments, including the adoption of Amendment No. 1 on March 18, 2025, which refined the language and provisions of the bill.

Legislative Progress:

Passed the House on April 2, 2025.
Passed the Senate on April 10, 2025.
Signed into law as Act 706 on April 16, 2025.

Conclusion

House Bill 1277 represents a significant update to the regulatory framework governing petroleum storage tanks in Arkansas. By establishing clear financial responsibilities and conditions for corrective actions, the bill aims to enhance environmental protection while ensuring that owners and operators are held accountable for their operations.

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