LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 247 SLS 24RS 461
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 15, 2024 10:27 AM Author: CATHEY
Dept./Agy.: Department of Environmental Quality
Subject: Motor Fuels Underground Storage Tank Analyst: Richie Anderson
ENVIRONMENTAL CONTROL EN INCREASE SG EX See Note Page 1 of 1
Provides for the Motor Fuels Underground Storage Tank Trust Dedicated Fund Account. (8/1/24)
Proposed law changes the definition of an eligible participant to include owners who have registered their tank as temporarily
closed. Additionally, the proposed law broadens the scope of abandonment of a tank by only requiring one of the conditions
to declare it abandoned and not all of the conditions. Proposed law allows the secretary to declare a tank abandoned where a
release is not eligible for the Tank Trust Account or where action by the Department of Environmental Quality (DEQ) is the
most efficient way to address conditions. Present law states that monies expended from the Tank Trust Account shall be
spent up to such sums that are necessary to satisfy federal petroleum underground storage tank financial responsibility
requirements or $1.5 M. Proposed law increases this threshold to $2 M and adds that expenditures may exceed federal
requirements where the secretary determines necessary. Proposed law will also remove the provision that the initial
assessment has to be within 2 years. All unexpended and unencumbered funds in the account at the end of the fiscal year
shall remain in the account and be available for expenditure in future fiscal years.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. INCREASE INCREASE INCREASE INCREASE INCREASE
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
The proposed law will increase SGR expenditures out of the Motor Fuels Underground Storage Tank Trust Dedicated Fund
Account. DEQ estimates that over the next five fiscal years, 19 sites are currently projected to reach the maximum
reimbursement. Without the maximum increase, these sites may not be fully remediated. The Fund Account had a balance of
$134.9 M at the beginning of FY 24, of which $127.5 M is not restricted for specific purposes and could be appropriated
towards remediation of these tank sites. If all 19 sites utilize the added $500,000 it could cost as much as $9.5 M; however,
DEQ is unable to estimate the timing or actual amount needed beyond the $1.5 M limit for these sites.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer


Statutes affected:
SB247 Original: 30:2194(B)(4), 30:2195(D), 30:2(A)(1), 30:4(A)(1), 30:10(D), 30:2194(C)(4), 30:4(A)(3)
SB247 Engrossed: 30:2194(B)(4), 30:2195(D), 30:2(A)(1), 30:4(A)(1), 30:10(D), 30:2194(C)(4), 30:4(A)(3)
SB247 Reengrossed: 30:2194(B)(4), 30:2195(D), 30:2(A)(1), 30:4(A)(1), 30:10(D), 30:4(A)(3)
SB247 Enrolled: 30:2194(B)(4), 30:2195(D), 30:2(A)(1), 30:4(A)(1), 30:10(D), 30:4(A)(3)
SB247 Act : 30:2194(B)(4), 30:2195(D), 30:2(A)(1), 30:4(A)(1), 30:10(D), 30:4(A)(3)