UPDATED
SESSION OF 2021
SUPPLEMENTAL NOTE ON SENATE BILL NO. 27
As Recommended by Senate Committee on
Agriculture and Natural Resources

Brief*
SB 27 would extend the sunset dates for certain funds,
an advisory board, and operators’ ability to apply for funds
relating to underground storage tanks (UST). The bill would
also increase deductible amounts and liability and
replacement limits for certain funds within the Kansas
Storage Tank Act (Act) that are managed by the Kansas
Department of Health and Environment (KDHE). The bill
would also make technical changes.

Sunset Date Extensions
The bill would extend the following sunset dates:
● Underground Petroleum Storage Tank Release
Trust Fund (Underground Fund) from July 1, 2024,
to July 1, 2034;
● Aboveground Petroleum Storage Tank Release
Trust Fund (Aboveground Fund) from July 1, 2024,
to July 1, 2034;
● UST Redevelopment Fund Compensation Advisory
Board from July 1, 2024, to July 1, 2032;

____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
 ● UST Redevelopment Fund (UST Fund) from July 1,
2024, to July 1, 2032;
● The ability for certain petroleum storage tank
owners and operators to apply for reimbursement
for corrective action if contamination is discovered
and reported during the replacement of single-wall
underground storage tanks, from June 30, 2020, to
June 30, 2030; and
● The ability for owners and operators to apply for
reimbursement for the replacement of underground
single-wall storage tank systems with a secondary
containment system, from June 30, 2020, to June
30, 2030.

Increase of Fund Limitations
The bill would increase from $1.0 million to $2.0 million,
less the deductible amount, the limit on the liability of the
State from the Underground Fund or the Aboveground Fund
for any release from a petroleum storage tank. In continuing
law, the owner or operator of a petroleum storage tank must
agree to such limitation of state liability.
The bill would also increase from $1.0 million to $2.0
million the total limitation on the liability of the Underground
Fund and the Aboveground Fund for corrective action, less
any applicable deductible amounts of the owner or operator
for costs incurred in response to any one release from an
underground or aboveground petroleum storage tank.
Finally, the bill would increase the reimbursement limit
for the replacement of single-wall USTs and single-wall UST
systems with a secondary containment system to an amount
of no more than $100,000 per facility for replacement work
completed on and after July 1, 2020, and before July 1, 2030.
The bill would also clarify the $50,000 reimbursement limit in

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current law would apply to replacement work completed on
and after August 8, 2005, and before July 1, 2020.

Background
The bill was introduced by the Senate Committee on
Federal and State Affairs at the request of a representative of
Fuel True.
[Note: The bill contains the provisions of 2020 House
Sub. for SB 285, as recommended by the House Committee
on Agriculture.]

Senate Committee on Agriculture and Natural Resources
In the Senate Committee hearing, a representative of
Fuel True and the Section Chief of the Storage Tank Section,
Bureau of Environmental Remediation, KDHE, provided
proponent testimony on the bill, stating the bill is needed to
ensure KDHE can continue to manage the Storage Tank
program effectively now and in the future.
Written-only proponent testimony was provided by
representatives of the Kansas Cooperative Council and the
Kansas Grain and Feed Association.
No other testimony was provided.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, KDHE estimates the bill would
decrease revenue to the State General Fund by $141,500
annually and increase revenue to the Storage Tank Fee Fund
by the same amount. The estimate includes $137,500 from
UST permit fees (5,500 tanks x $25 per tank), $3,500 from
installation permit fees (35 installations x $100 per tank), and
$500 from tank registration fees (25 tanks x $20 per tank).
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KDHE indicates the bill would not require additional operating
expenditures to administer the Kansas Storage Tank Act. Any
fiscal effect associated with the bill is not reflected in The FY
2022 Governor’s Budget Report.
Aboveground storage tanks; underground storage tanks; Kansas Department of
Health and Environment


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Statutes affected:
As introduced: 65-34
Enrolled: 65-34