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Minutes for SB287 - Committee on Agriculture
Short Title
Amending the Kansas storage tank act by extending the expiration of certain reimbursement provisions to 2030 and increasing the underground storage tank replacement reimbursement maximum.
Minutes Content for Thu, Mar 12, 2020
Chair Highland opened the hearing on SB287 at 3:57pm.
Kyle Hamilton, Assistant Revisor, Office of The Revisor of Statutes, provided an overview of SB287 and the statutes that it affects. There is a Fiscal Note for SB287.
PROPONENTS:
Bob Jurgens, Director, Bureau of Environmental Remediation, Kansas Department of Health & Environment (KDHE), appeared before the Committee in support of SB287. (Attachment 12) Kansas has one of the oldest inventories of Underground Storage Tanks (UST) in the country and a full system upgrade can routinely cost well over $250,000. The UST replacement program provides reimbursement to a tank owner for the removal of single-wall USTs and upgrade to double-wall UST systems. This bill will have a positive impact on tank owners by providing more incentive due to the maximum reimbursable amount increasing from $50,000 to $100,000 per facility. Contamination is often identified during tank removals and upgrades. KDHE anticipates an increased use of the reimbursement programs due to the higher reimbursement amount will help discover contamination in a more-timely manner.
Mr Jurgens responded to questions from the Committee.
Thomas Palace, Executive Director, Petroleum Marketers & Convenience Store Association, appeared before the Committee in support of SB287. (Attachment 13) This program is established for eligible tank owners who want to remove single-wall USTs and replace them with double-wall UST systems at their active facilities. The bill extends the sunset date with the intent to encourage more participation in this program by offering an increase in the maximum amount of funds that can be reimbursed per facility. Upgrading USTs are an expensive endeavor with costs that can reach $300,000 - $400,000 per site and NO return on investment. UST owners have no way to recoup costs associated tank upgrades. Application must be made to the State and pre-approved for specific cost reimbursement. The average age of USTs in Kansas exceeds 25 years, and this age is greater than the national average. Over 25 facilities have participated in this program since it began in 2015 resulting in the removal of 84 old USTs and replacing them with 86 new, double-wall UST systems.
Mr Palace responded to questions from the Committee.
Written only testimony in support of SB287 was received from:
- Randy Stookey, Senior Vice President of Government Affairs, Kansas Grain and Feed Association, Kansas Agribusiness Retailers Association, and Renew Kansas Biofuels Association (Attachment 14)
- Shahira Stafford, Kansas Cooperative Council (Attachment 15)
- Sheila Lowrie, Corporate Affairs Manager, Dillons Stores (Attachment 16)
There were no opponents/neutrals of SB287.
The hearing on SB287 was closed at 4:07pm.
The Chair asked if there was any objections to suspending the rules and take action on SB285. No objections were heard.
The Chair opened the debate and asked if there were any amendments.
Representative Smith made a conceptual amendment to SB285 creating a House Substitute for SB285 and asked Mr Hamilton to explain the amendment.
Representative Smith moved to create a House Substitute for SB285 using the contents of SB285, SB286, and SB287. Representative Thompson seconded the motion. The motion to amend was passed on a unanimous voice vote.
Representative Schreiber moved to recommend House Substitute for SB285 as amended favorable for passage. Representative Blex seconded the motion. The motion passed on a unanimous voice vote.
The Chair asked for a motion to take action on SB307 - Updating approved types of personal flotation devices.
Representative Smith moved to take action on SB307. Representative Seiwert seconded the motion. The motion passed on a voice vote.
Representative Smith moved to favorably pass SB307. Representative Seiwert seconded the motion. The motion passed on a voice vote.
The Chair adjourned the meeting at 4:12pm.
