§ 30:2195.2 — Uses of the Tank Trust Account

Louisiana § 30:2195.2

• Jurisdiction: Louisiana
• Title 30: Mortgages and Privileges

Text

§2195.2. Uses of the Tank Trust Account
A. The department shall administer the Tank Trust Account and shall make
disbursements from the account for all necessary and appropriate expenditures. Pursuant to
the authorization in R.S. 30:2195, the secretary of the Department of Environmental Quality
shall use the Tank Trust Account as follows:
(1) Whenever in the secretary's determination incidence of surface water,
groundwater, or soils contamination resulting from the storage of motor fuels may pose a
threat to the environment or the public health, safety, and welfare and the owner of the motor
fuel underground storage tank has been found to be an eligible participant, the department
shall obligate monies available in the Tank Trust Account to provide for the following
response actions:
(a) Investigation and assessment of sites shown to be contaminated by a release into
the surface water, groundwater, or soils from a motor fuel underground storage tank.
(b) Interim replacement and permanent restoration of potable water supply where it
has been demonstrated that the supply was contaminated by a leak from a motor fuel
underground storage tank.
(c)(i) To remediate sites contaminated by a leak from a motor fuel underground
storage tank to the extent necessary to return the site to the use and occupancy in effect at the
time the release occurred. Remediation may consist of cleanup of affected soil, groundwater,
and inland surface waters, using cost-effective methods that are technologically feasible and
reliable, while ensuring adequate protection of the public health, safety, and welfare and
minimizing environmental damage, in accordance with the site selection and cleanup criteria
established by the department. Notwithstanding any provision of R.S. 30:2194 through
2195.11 to the contrary, any remediation work contracted for on or after August 1, 1995,
shall be paid by the department to the response action contractor who performed the
department-approved assessment or remediation work upon the presentation of proper
invoices for the work.
(ii) The monies expended from the Tank Trust Account for any of the above approved
costs shall be spent only up to such sums as that which is necessary to satisfy federal
petroleum underground storage tank financial responsibility requirements, 40 CFR 280.93,
or two million dollars per occurrence, whichever is greater. This amount shall include any
third-party claim arising from the release of motor fuels from a motor fuel underground
storage tank. However, if the secretary determines that further action is needed to address a
condition that constitutes or may constitute a danger or potential danger to the public health
or the environment, monies from the Tank Trust Account may be expended above the
aggregate financial responsibility requirements of 40 CFR 280.93.
(2) Whenever costs have been incurred by the department for taking response actions
with respect to the release of motor fuels from an underground storage tank or the department
has expended funds from the Tank Trust Account for response costs or third-party liability
claims, the owner of the motor fuel underground storage tank shall be liable to the
department for such costs only if the owner was not an eligible participant on the date of
discharge of the motor fuels which necessitates the cleanup; otherwise liability is limited to
the provisions contained in R.S. 30:2195.9 and 2195.10. The expenditure of funds to
reimburse any party for costs otherwise authorized by this Subsection shall be expressly
prohibited if the costs were incurred as the result of a release of motor fuels, excluding new
and used motor oil, which occurred prior to July 15, 1988. For new and used motor oil
releases, the expenditure of funds to reimburse any party for costs otherwise authorized by
this Subsection shall be expressly prohibited for any costs relating to a release which
occurred prior to September 6, 1991, unless such release is determined by the secretary to
have been from an abandoned motor fuel underground storage tank. Nothing contained
herein shall be construed so as to authorize the expenditure from the Tank Trust Account on
behalf of any owner of an underground storage tank who is not an eligible participant at the
time of the release for any third-party liability.
(3) In the event funds have been expended by the secretary on behalf of an owner who
was not an eligible participant, and the Tank Trust Account is entitled to reimbursement of
those funds so expended, the secretary shall use any and all administrative and judicial
remedies, including the filing of a lien with the same ranking as that provided in R.S.
30:2195(F)(2), which may be necessary for recovery of the expended funds plus legal interest
from the date of payment by the secretary and all costs associated with the recovery of the
funds. The secretary may expend the recovered funds for any use authorized under this
Section.
(4) The Environmental Trust Dedicated Fund Account may be used to reimburse or
pay for any costs associated with the review of applications for reimbursement from the trust,
legal fees associated with the collection of costs from parties who are not eligible
participants, audits of the Tank Trust Account and bulk operators, and accounting and
reporting of the uses of the trust. The Environmental Trust Dedicated Fund Account will also
reimburse the Department of Environmental Quality for costs associated with administering
the underground storage tank program in accordance with R.S. 30:2195(C) up to the amount
appropriated pursuant to R.S. 30:2195(B).
(5) The Tank Trust Account may be used to make payments to a third party who
brings a third-party claim against the secretary of the department and any owner of a motor
fuel underground storage tank because of damages sustained by a release into the
groundwater, surface waters, or soils and who obtains a final judgment in said action
enforceable in this state against the owner and the secretary if and only if it has been
satisfactorily demonstrated that the owner was an eligible participant at the time that the
release occurred as defined in R.S. 30:2194(B)(3). The indemnification limit of the trust with
respect to satisfaction of third-party claims shall be that which is necessary to satisfy federal
petroleum underground storage tank financial responsibility requirements.
(6) The secretary shall authorize the use of any monies obtained in cost recovery
actions or from interest on the Tank Trust Account to provide grants or loans to private
persons or entities for upgrading or improving underground storage tanks to a standard
dictated or recommended by federal or state environmental laws, regulations, or directives.
(a) A grant or loan may only be made pursuant to this Paragraph if all of the
following apply:
(i) The applicant is domiciled in Louisiana.
(ii) The site is registered with the department as a single wall underground storage
tank system.
(iii) The applicant is in compliance with and has paid all fees assessed by applicable
state law.
(b) Grants provided pursuant to this Paragraph shall only be made in the form of
reimbursement for completed upgrades and improvements after inspection and approval by
the department.
(c) No grant or loan shall exceed one hundred fifty thousand dollars, and the total
amount of grants per year shall not exceed three million dollars.
(d) Eligible applicants may only apply for one grant or loan each year.
(e) The secretary shall promulgate rules and regulations to implement this Paragraph,
including the application process, procedures the applicant shall follow prior to making
upgrades or improvements to the site, inspection and approval of upgrades or improvements
by the department, and procedures the applicant shall follow after completing the work to
either claim reimbursement or begin making repayments.
B.(1) Nothing in this Section shall be construed to authorize the expenditure from
the Tank Trust Account for response actions and third-party claims for the following
facilities:
(a) Motor fuel underground storage tanks owned by state and federal governmental
entities whose debts and liabilities are the debts and liabilities of a state or the United States.
(b) Any motor fuel underground storage tank excluded or deferred from regulation
under 40 CFR 280.10, with the exception of an underground storage tank that stores fuel
solely for use by emergency power generators.
(c) Repealed by Acts 2001, No. 550, §2.
(2) Nothing in this Section shall be construed to authorize or require the department
to obligate funds for payment of costs which may be associated with but are not integral to
site rehabilitation, such as the cost of retrofitting, replacing leaking motor fuel underground
storage tanks and attendant piping, or unapproved purchases of equipment needed in
assisting cleanup operations.

Legislative History

Acts 1988, No. 767, §2, eff. July 15, 1988; Acts 1989, No. 513, §1; Acts 1990, No. 1014, §1, eff. Sept. 1, 1990; Acts 1991, No. 890, §1; Acts 1995, No. 336, §1, eff. June 16, 1995; Acts 1997, No. 27, §1; Acts 1999, No. 303, §1, eff. June 14, 1999; Acts 2001, No. 550, §§1 and 2; Acts 2004, No. 692, §1, eff. July 6, 2004; Acts 2006, No. 447, §1; Acts 2015, No. 277, §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, §18, eff. July 1, 2022; Acts 2022, No. 277, §1; Acts 2024, No. 167, §1.