§ 30:2195 — Motor Fuels Underground Storage Tank Trust Dedicated Fund Account

Louisiana § 30:2195

• Jurisdiction: Louisiana
• Title 30: Mortgages and Privileges

Text

§2195. Motor Fuels Underground Storage Tank Trust Dedicated Fund Account
A. The legislature hereby finds and declares that the preservation of its groundwater
is a matter of highest urgency and priority, as these waters provide a primary source of
potable water in this state and that the leakage of motor fuels from underground storage tanks
within the state poses threats of damage to the environment of this state, to citizens of the
state, and to interests deriving livelihood from this state. It further finds and declares that
such hazards have occurred in the past, are now occurring, and will continue to occur, and
that remediation of contamination of surface water, groundwater, or soils should be
conducted with all due haste, and to the extent possible those persons who have owned such
storage tanks should bear the costs of such remediation, and that such remediation should be
done under the supervision and regulation of the department. The legislature also declares
that taxpayers' funds should, to the greatest extent possible, not be used for the payment of
the cost of such remediation, that the state should be encouraged where possible to use
assistance from private sources for the payment of these costs, that where private sources
cannot obtain insurance or other means of financial assurances to pay for said remediation
that a state private contractor agreement between the state and the private legal entity
administered by the secretary of the department can best provide assurance of financial
responsibility for remediation of leaking motor fuel underground storage tanks.
B. There is hereby established a special statutorily dedicated fund account in the state
treasury to be known as the Motor Fuel Underground Storage Tank Trust Dedicated Fund
Account, hereafter referred to in this Chapter as the "Tank Trust Account", into which the
state treasurer shall, each fiscal year, deposit the revenues received from the collection of the
fees as established in R.S. 30:2195.3(A)(1)(a) and (B). The secretary is authorized pursuant
to Article VII, Section 9(A) of the Constitution of Louisiana and R.S. 30:2031 to enter into
an agreement with a private legal entity to receive and administer the Tank Trust Account
for the purpose of providing financial responsibility for underground motor fuel storage
tanks. On an annual basis, all owners of registered tanks shall remit to the department a tank
registration fee of sixty dollars for each tank. The revenue from the tank registration fees
shall be deposited directly into the Environmental Trust Account as provided by R.S.
30:2015 and utilized for underground storage tank activities only, and any deviation from the
aforesaid shall be documented and reported to the House Committee on Natural Resources
and Environment and the Senate Committee on Environmental Quality. Revenues received
from annual maintenance and monitoring fees, other than those established in R.S.
30:2195.3(B), shall be deposited into the Environmental Trust Account. The department
shall promulgate rules and regulations for the implementation of this Section in accordance
with the Administrative Procedure Act, R.S. 49:950 et seq.
C. Monies so deposited in the Environmental Trust Account shall be used to defray
the cost to the state of administering the underground storage tank program and the cost of
investigation, testing, containment, control, and cleanup of releases from underground
storage tanks containing regulated substances. Only monies recovered pursuant to cost
recovery efforts and interest earned on the Tank Trust Account may be used for the grants
and loans authorized by R.S. 30:2195.2(A)(6). These monies shall also be used to provide
money or services as the state share of matching funds for federal grants involving
underground storage tanks. At the end of each fiscal year, all monies that were deposited
into the Environmental Trust Account from the fees established in R.S. 30:2195.3(A)(1)(a)
and (B) which remain unspent, including all accrued interest, shall be transferred to the Tank
Trust Account.
D. The funds placed in the Tank Trust Account shall only be used in accordance with
the terms and conditions of R.S. 30:2194 through 2195.11 and shall not be placed in the
general fund but shall be subject to the appropriation process of the legislature. The monies
in the Tank Trust Account shall be invested by the state treasurer in the same manner as
monies in the state general fund. Monies deposited into this account shall be used to defray
the cost of investment fees; shall be categorized as fees and self-generated revenue for the
sole purpose of reporting related to the executive budget, supporting documents, and general
appropriation bills; and shall be available for annual appropriation by the legislature. All
unexpended and unencumbered monies in the account at the end of the fiscal year shall
remain in the account and be available for expenditure in future fiscal years.
E. Annually, the department shall prepare a report for the House Committee on
Natural Resources and Environment and the Senate Committee on Environmental Quality
of all disbursements of monies from the Tank Trust Account and the Environmental Trust
Account. The report shall include the number of sites actively seeking reimbursement,
grants, or loans from the Tank Trust Account as of June thirtieth of each year, the number
of sites deemed eligible for the Tank Trust Account during the previous fiscal year, and the
number of sites that have been granted "No Further Action", and the department has received
the last application for reimbursement during the previous fiscal year. Regarding
disbursements from the Tank Trust Account as provided by R.S. 30:2195.2, the report shall
include a list of all reimbursements, grants, and loans; all pending reimbursements, grants,
and loans; the date the application was made for each reimbursement, grant, and loan; and
the date each reimbursement, grant, or loan was made by the department. The report shall
be delivered to the respective legislative committees no later than March first of each year.
F.(1) All interest monies earned by the Tank Trust Account and all monies received
from cost recovery efforts shall be used for the closure of abandoned motor fuel underground
storage tanks, assessment and remediation of property contaminated by abandoned motor
fuel underground storage tanks, and the grants and loans authorized by R.S.
30:2195.2(A)(6).
(2) The state shall have a lien or privilege against immovable property for the costs
incurred for closure of abandoned motor fuel underground storage tanks and for costs
incurred associated with the assessment and remediation of property contaminated by an
abandoned motor fuel underground storage tank. Following the expenditure of funds by the
state of Louisiana through the department, such lien or privilege may be perfected against
such property by filing a notice of lien containing the name of the current record owner and
the legal description of the immovable property in the mortgage records of the parish in
which the immovable property is located. Except as otherwise provided in this Paragraph,
the lien of the state, through the Department of Environmental Quality, shall have priority
in rank over all other privileges, liens, encumbrances, or other security interest affecting the
property. As to all privileges, liens, encumbrances, or other security interests affecting the
property that are filed or otherwise perfected before the filing of the notice of lien of the state
authorized by this Section, such prior recorded security interests shall have priority over the
state lien, but only to the extent of the fair market value that the property had prior to closure,
assessment, or remedial action by the state, and prior recorded security interests shall be
subordinate to the state lien for any amount in excess of the fair market value of the property
prior to such closure, assessment, or remediation.
(3) A tank may be declared to be an abandoned motor fuel underground storage tank
by the secretary upon a finding that any of the following apply:
(a) The release at the site is not eligible for the Tank Trust Account and the secretary
has determined that action by the department is the most timely and efficient way to address
conditions at the site.
(b) All of the following apply to the site:
(i) It has received motor fuels in an underground storage tank.
(ii) The motor fuel underground storage tank was not closed or the site was not
assessed or remediated in accordance with the requirements of this Subtitle and the
regulations adopted hereunder.
(iii) It constitutes or may constitute a danger or potential danger to the public health
or the environment.
(iv) It has no financially responsible owner or operator who can be located, or such
person has failed or refused to undertake action ordered by the secretary pursuant to R.S.
30:2194 and the regulations adopted thereunder.

Legislative History

Acts 1985, No. 493, §1, eff. July 12, 1985; Acts 1995, No. 336, §1, eff. June 16, 1995; Acts 1997, No. 27, §1; Acts 1999, No. 303, §1, eff. June 14, 1999; Acts 1999, No. 348, §1, eff. June 16, 1999; Acts 2001, No. 1121, §1; Acts 2002, 1st Ex. Sess., No. 134, §1, eff. July 1, 2002; Acts 2004, No. 692, §1, eff. July 6, 2004; Acts 2008, No. 580, §2; Acts 2016, No. 451, §1; Acts 2016, No. 521, §1; Acts 2018, No. 612, §9, eff. July 1, 2020; Acts 2019, No. 404, §1, eff. July 1, 2020; Acts 2021, No. 114, §6, eff. July 1, 2022; Acts 2022, No. 277, §1; Acts 2024, No. 167, §1.