UtahH.B. 182025 General SessionHouse

Petroleum Storage Tank Amendments

Sponsored By: Steve Eliason (Republican)

Signed by Governor

EnvironmentNatural ResourcesWasteUnderground Storage Tanks

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Bill Overview

Analyzed Economic Effects

15 provisions identified: 6 benefits, 4 costs, 5 mixed.

More funding paths for tank cleanup

For fiscal year 2026, July 1, 2025, through June 30, 2026, the law authorizes a one-time $4 million transfer. The money moves from the Petroleum Storage Tank Fund to the Petroleum Storage Tank Cleanup Fund; spending requires an appropriation. Beginning May 7, 2025, the director can also request legislative transfers of reserves above the level needed for financial soundness. Interest earned by the separate restricted account stays there. Restricted account money is appropriated to the department for tank program administration.

Liability protection after voluntary tank cleanup

Beginning May 7, 2025, voluntary cleanup liability protections include the Petroleum Storage Tank Act. Applicants not responsible for contamination when applying can receive protection after getting a completion certificate. The certificate releases state cleanup liability and state-law contribution claims for the matters it addresses. Protection can also cover later purchasers and secured lenders. Fraud, misrepresentation, knowing nondisclosure, prior responsibility, certain risk-increasing land-use changes, or further releases can defeat or limit protection.

Fee rebates for low-risk tank owners

By July 1, 2026, the division must set a risk model and rebate schedule for aboveground petroleum tanks. Participating owners and operators can qualify for refunds of up to 40% of their facility's environmental assurance fee. Rebates depend on the facility's risk profile at the end of the prior calendar year. They apply to fees collected after June 30, 2026, and can be claimed monthly.

Interest-free loans for tank owners

Beginning May 7, 2025, the director can offer loans for petroleum tank upgrades, replacements, or permanent closures. Loans charge 0% fixed interest and last no more than 10 years. Limits are $300,000 per facility, $100,000 per tank, and 80% of project cost. Applicants must provide adequate security, and all their tanks must substantially comply with requirements or reach compliance using loan money. Upgrade and replacement loans also require participation in the tank program.

More claim options for tank businesses

Beginning May 7, 2025, the director can approve cleanup fund payments for qualifying former responsible parties. They must have left ownership in good standing and lost release coverage because of a later responsible party's actions or inaction. Installation companies can also seek fund payments for releases occurring before a tank's compliance certificate was issued. Those claims must be filed within 12 months after certificate issuance, and the fund must have enough revenue.

Phased coverage for older tank contamination

Beginning May 7, 2025, participating aboveground and underground tanks can receive fund coverage for qualifying historic contamination. The contamination must be discovered more than five years after the owner or operator elects to participate. Coverage starts at 20% after five years of continuous participation. The law provides annual 20-percentage-point increases and full coverage after 10 years of continuous participation.

Broader cleanup liability for tank businesses

Beginning May 7, 2025, release-cost liability extends beyond underground systems to petroleum storage tank systems more broadly. Petroleum tank installation companies are included among responsible parties. For releases not covered by the fund, the director can recover state costs for overseeing cleanup and investigation. Bills are issued quarterly for each release and are due within 30 days. Recovered oversight costs go to the cleanup fund for program administration.

Tank installers face fees and penalties

Beginning May 7, 2025, installation companies owe $2,000 annually for 15 or fewer tanks installed in the prior 12 months. Companies with 16 or more owe $4,000; each tank also requires a $200 payment before installation. The annual fee is due 30 days before the fiscal year's first installation. Late payment adds $100 per company and 12% yearly interest on unpaid fees and penalties. If all amounts remain unpaid 30 days after that installation begins, the permit and claim-payment eligibility lapse on day 31. Installing without a valid company permit carries a $500 penalty per tank; unpaid installation fees carry a separate $500-per-tank penalty. Completing installation without both payment and a valid permit also bars company fund payments for releases before the tank's compliance certificate.

Tank owners and installers must notify

Aboveground petroleum tanks in use after May 5, 2021, must be registered. Tanks installed by June 30, 2022, had to register by then; later tanks require registration at least 30 days before installation. New owners or operators must report changes within 30 days. Aboveground tank installers must also give at least 30 days' advance notice; missed registration or required notice can bring a $1,000 penalty. Operation on or after June 30, 2023, requires program participation or another board-approved way to show financial responsibility. Beginning May 7, 2025, underground tank installers must give 30 days' advance notice instead of reporting within 60 days after completion.

Tank owners face annual program fees

Beginning May 7, 2025, participants owe $450 yearly per tank when facility throughput is 70,000 gallons or less; otherwise, $150. The $450 rate also applies when owners decline to report throughput or miss the 30-day response deadline. Replacement tanks carry over the old tank's current-year fee; new nonreplacement tanks pay $150. Fees are due July 1, with a $100 late penalty per facility and 12% yearly interest on fees and penalties. Eligibility for fund claim payments lapses unless all amounts are received by September 1.

Gasoline tank operators face vapor controls

Beginning May 7, 2025, gasoline loading must meet applicable vapor-control requirements. Tanks dispensing at least 10,000 gallons in a calendar month require a properly installed and maintained vapor collection system. They must also use submerged or bottom filling, with emissions capped at 0.640 pounds per 1,000 gallons transferred. The requirements do not apply when a facility lacks the equipment needed to comply. These controls limit gasoline vapors while placing operating duties on covered tank businesses.

Broader tank oversight with possible exemptions

Beginning May 7, 2025, state oversight extends from underground tanks to petroleum storage tanks more broadly. The director can require records, monitoring, testing, sampling, and reasonable access, and represent Utah in interstate tank matters. The board must set certification rules for installers, inspectors, testers, removers, and consultants. It must also set tank registration, program administration, and aboveground compliance rules. The board can exempt tanks by rule when it finds they fall outside the law's purposes.

Tank law ends in July 2028

The law sets July 1, 2028, as the repeal date for the Petroleum Storage Tank Act. The repeal ends a statutory framework that combines financial assistance and coverage with regulatory duties for tank businesses. The law does not specify replacement rules or how existing coverage, liabilities, and funds are handled after repeal.

Broader tank coverage with entry requirements

Beginning May 7, 2025, petroleum tank owners can elect program coverage beyond the previously listed tank categories. Participation requires payment of tank fees and the environmental assurance fee. Each facility must hold a compliance certificate based on registration, financial assurance, substantial legal compliance, and required tank tests. Rejoining after nonparticipation requires a tank tightness test, submission of required tests and samples, and usually a site check. Site checks are waived for aboveground tanks, underground tanks that previously opted out, or when the director reasonably finds samples unnecessary.

Fuel fee drops require larger reserves

Beginning May 7, 2025, the fund balance needed to trigger a fuel-fee cut rises from $50 million to $60 million. The fee drops from 0.65 cent to 0.25 cent per gallon when the June 30 balance exceeds $60 million. After a reduction, it returns to 0.65 cent when a June 30 balance falls below $20 million. Each rate change starts the following November 1.

Sponsors & Cosponsors

Sponsor

  • Steve Eliason

    Republican • House

Cosponsors

  • David P. Hinkins

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 127 • No: 0

Senate vote • 2/11/2025

Senate/ passed 3rd reading

Yes: 22 • No: 0

Senate vote • 2/5/2025

Senate Comm - Favorable Recommendation

Yes: 3 • No: 0

Senate vote • 2/5/2025

Senate Comm - Consent Calendar Recommendation

Yes: 3 • No: 0

House vote • 1/30/2025

House/ passed 3rd reading

Yes: 71 • No: 0

House vote • 1/22/2025

House Comm - Substitute Recommendation

Yes: 9 • No: 0

House vote • 1/22/2025

House Comm - Favorable Recommendation

Yes: 10 • No: 0

House vote • 1/22/2025

House Comm - Amendment Recommendation

Yes: 9 • No: 0

Actions Timeline

  1. Governor Signed

    2/27/2025
  2. House/ to Governor

    2/20/2025House
  3. House/ received enrolled bill from Printing

    2/20/2025House
  4. House/ enrolled bill to Printing

    2/19/2025House
  5. Enrolled Bill Returned to House or Senate

    2/19/2025
  6. Draft of Enrolled Bill Prepared

    2/13/2025
  7. Bill Received from House for Enrolling

    2/13/2025
  8. House/ signed by Speaker/ sent for enrolling

    2/11/2025House
  9. House/ received from Senate

    2/11/2025House
  10. Senate/ to House

    2/11/2025Senate
  11. Senate/ signed by President/ returned to House

    2/11/2025Senate
  12. Senate/ passed 3rd reading

    2/11/2025Senate
  13. Senate/ 3rd reading

    2/11/2025Senate
  14. Senate/ 2nd reading

    2/6/2025Senate
  15. Senate/ comm rpt/ placed on Consent Calendar

    2/6/2025Senate
  16. Senate Comm - Consent Calendar Recommendation

    2/5/2025Senate
  17. Senate Comm - Favorable Recommendation

    2/5/2025Senate
  18. Senate/ to standing committee

    2/3/2025Senate
  19. Senate/ 1st reading (Introduced)

    1/31/2025Senate
  20. Senate/ received from House

    1/30/2025Senate
  21. House/ to Senate

    1/30/2025House
  22. House/ passed 3rd reading

    1/30/2025House
  23. House/ 3rd reading

    1/30/2025House
  24. House/ 2nd reading

    1/23/2025House
  25. House/ comm rpt/ substituted/ amended

    1/23/2025House

Bill Text

  • Enrolled

    2/19/2025

  • Amended 1/23/2025 11:01:982

    1/23/2025

  • Substitute #1

    1/16/2025

  • Introduced

    12/16/2024

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