IdahoS 12652026 regular legislative sessionSenateWALLET

PETROLEUM CLEAN WATER TRUST FUND ACT – Amends existing law by removing outdated or unnecessary provisions related to the Petroleum Clean Water Trust Fund.

Sponsored By: HEALTH AND WELFARE COMMITTEE

Signed by Governor

PETROLEUM CLEAN WATER TRUST FUND ACT

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Tank insurance: delays and oversight

Beginning July 1, 2026, the trust fund administrator can defer issuing insurance contracts to some petroleum storage tank owners and operators to keep the fund sound. The administrator must weigh underwriting capacity, legal financial-responsibility rules, and its ability to process applications. Any deferral, or a later change to lift it, must be in the plan of operation and sent to the Insurance Director. The Director must promptly approve, modify, or disapprove and can require documents, including an actuarial review. If disapproved, the administrator must follow the original registration plan. Reviews follow state administrative procedures.

Fuel fee money to roads and parks

Beginning July 1, 2026, the law clarifies where remaining transfer-fee balances and interest go. For the April 1, 1997 distribution: 20% to the Petroleum Clean Water Trust Fund; 3% to Parks; $6,000,000 to the state highway account; and any remainder to the highway distribution account. For the end of fiscal year 1997 and monthly after, 77% of the remaining balance goes to the highway distribution account and 3% to Parks. Section 41-4910A is repealed.

Refunds guaranteed; collection costs capped

Beginning July 1, 2026, transfer-fee receipts must reimburse the state refund account for current refunds under this chapter. Refunds are paid from that account, and the money is continuously available. The commission may keep only its actual collection and enforcement costs, up to the amount the Legislature approves. Any unencumbered extra kept at year-end goes to the Petroleum Clean Water Trust Fund.

New board and rules for fund

Beginning July 1, 2026, the Governor appoints seven trustees: one senator, one representative, one finance expert, one remediation scientist, and three wholesale petroleum distributors. The Governor names the chair. Most terms are four years; the first two appointees after this date serve two years. A majority is a quorum, and members receive pay set by Idaho law. The State Insurance Fund serves as administrator unless the board replaces it; the board may hire staff and set pay. The trust fund follows state insurance laws with listed exceptions. It is not treated as a standard insurer, and some insurance-employee rules do not apply when staff only adjust trust fund claims. The prior registration section 41-4925 is repealed.

Sponsors & Cosponsors

Sponsor

HEALTH AND WELFARE COMMITTEE
Affiliation unavailable

Cosponsors

Camille Blaylock
Republican • Senate
Heather Scott
Republican • House

Roll Call Votes

All Roll Calls

Yes: 97 • No: 0

Senate vote • 3/6/2026

Senate Floor Vote

Yes: 64 • No: 0

Senate vote • 2/23/2026