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Senate passes bill to align Utah environmental law with federal lender exemptions, sponsors say it will encourage lending
Summary
Senate Bill 120, which adds lender and fiduciary exemptions to Utah’s hazardous-substance and underground storage tank liability schemes (excluding residential property), passed third reading 28–0 with one absence; sponsors said it conforms state law to federal CERCLA/RCRA precedents and aims to promote economic development.
Senate Bill 120, described on the floor as a technical but important realignment of Utah law with recent federal rules, passed third reading after the Health and Environment Committee’s report was adopted. Senator Reese explained the bill would provide a lender exemption similar to federal CERCLA/RCRA protections, so creditors who do not participate in management of contaminated property are not made automatically liable for cleanup costs. The bill also extends similar protections to fiduciaries and trustees and explicitly excludes residential property from the exemption.
Senator Reese told colleagues the change is intended to encourage lending on environmentally impaired properties and avoid deterring foreclosures that would transfer cleanup liability onto creditors. He said the measure tracks federal statutory definitions and recent EPA regulations and that concerns raised by DEQ and business groups were resolved during committee consideration.
The Senate adopted the committee report and recorded a third-reading vote of 28 ayes, no nays, one absent. The bill was placed on the third-reading calendar for final passage procedures recorded in the journal.
