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Senate amends leaking‑tank bill to ease insurance costs, funds program with environmental surcharge
Summary
Lawmakers amended Senate Bill 26 to align some insurance levels for smaller underground storage tanks with federal rules and proposed a funding mix — tank fees plus a half‑cent environmental surcharge — to create a multimillion‑dollar fund for cleanup and insurance compliance. Discussion of actuarial soundness and fiscal risk continued and the item remained unfinished.
The Utah Senate considered amendments to Senate Bill 26, a package to address leaking underground storage tanks, including changes to insurance coverage levels for smaller tanks and a funding plan intended to make the program actuarially sound.
Senator Finlayson and Senator Leavitt described amendments reducing insurance coverage requirements for smaller tanks (bringing those categories into line with federal rules) and lowering associated tank fees. Sponsors said the change would ease premiums for small agricultural and rural tank owners while preserving protection for sites with higher throughput.
Lawmakers discussed a proposed funding plan combining the existing tank fee with a half‑cent environmental surcharge to create a revenue stream of about $7.5 million and a fund target ceiling designed with EPA actuarial input. Senator Leavitt explained the structure: “we put on a half a cent, as an environmental surcharge…that would go on and that's what raises the $5,000,000…and we would have a revenue stream of approximately 7 and a half million dollars coming in to fund our program.” He said the surcharge would drop off when the fund reached a set ceiling to avoid a permanent new tax.
Sponsors said the mix of fee and temporary surcharge was necessary after reviewing other states (Florida was cited for larger program needs) and recommended the amendments to reduce potential fiscal exposure to the state. The chamber adopted amendments but left further work as unfinished business for additional consideration and fiscal review.
Next steps include final floor consideration when the bill is resumed, refinement of eligibility thresholds (gallon thresholds were corrected on the floor from 11,000 to 1,100 gallons) and additional fiscal analysis.
Vote/action status: Amendments adopted on floor; the bill was left unfinished and will be returned to the Senate calendar for further action.
