HCS HB 327 -- PETROLEUM STORAGE TANK INSURANCE FUND

SPONSOR:  Rizzo

COMMITTEE ACTION:  Voted "do pass" by the Committee on Commerce
and Economic Development by a vote of 22 to 0.

The Petroleum Storage Tank Insurance Fund expires on December
31, 2003.  This substitute extends the fund to December 31,
2010.  Thereafter, the fund's board of trustees may function
only to complete payment of claims made prior to the expiration
date.

Current law allows the board to set, by rule, the surcharge paid
into the fund for each petroleum transport load.  The substitute
allows the board to adjust the surcharge after 60 days notice
and an opportunity for public comment.  The maximum surcharge is
increased from $25 to $60 per load.  If the fund's balance
exceeds its liabilities by 10% on the first day of any month,
the surcharge reverts to $25 per load 2 months later.

The board, in consultation with the Department of Natural
Resources, may prioritize claims and expenditures from the
fund.  Tank owners and operators may continue participating in
the fund after transferring their property to another party.

The substitute states that funds will be provided for the
cleanup of contamination caused by petroleum storage tanks if,
by August 28, 2000, the owner or operator was already
participating in the fund or had made application for
participation in the fund.  This is an extension of current law,
which set this date at December 31, 1997.

FISCAL NOTE:  Estimated Net Income to Petroleum Storage Tank
Insurance Fund of $6,100,980 in FY 2002, $10,975,980 in FY 2003,
and $1,370,546 in FY 2004.  Savings to Road Fund of $0 in FY
2002 and FY 2003, and $95,000 in FY 2004.

PROPONENTS:  Supporters say that this program has been very
successful during the last 10 years and they are now able to use
this fund to pay for the cleanup of spills that occurred before
insurance was available.  Since 1991, the fund has paid out $54
million dollars across the state.  It is "self-funding," which
means that it does not require any federal, state, or local
dollars.  It is funded through a transportation fee, which is
included in the price of every petroleum unit sold.  This fund
has dramatically lessened Missouri's ground water and
environmental problems.  If the fund is not extended, state
funds may be required in the future to pay for any contamination
caused by petroleum storage tanks.

Testifying for the bill were Representative Rizzo; Petroleum
Storage Tank Insurance Fund; Department of Natural Resources;
and Missouri Petroleum Marketers and Convenience Store
Association.

OPPONENTS:  Those who oppose the bill say that the
transportation fee, which funds the fund, is too high and that
good operators, who aren't likely to need access to this fund,
are being harmed.  This is a major problem for good operators
because it is a tax increase that is difficult for them to pass
on to a third party or to recoup in some other manner.

Testifying against the bill was Casey General Stores.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:43 am