HS HCS HB 180 -- DRY CLEANING ENVIRONMENTAL RESPONSE FUND (Hoppe)

This substitute establishes a Dry Cleaning Solvent Environmental
Response Trust Fund to provide moneys for investigation,
assessment, and remediation of releases of solvents from dry
cleaning facilities.  The fund is administered by a board
appointed by the Governor and approved by the Senate.  The 8
members include operators of small, medium, and large dry
cleaning facilities, a wholesale distributor of dry cleaning
solvents, an environmental engineer or scientist, a lessor of
property used for a dry cleaning facility, a representative of
the general public, and the director of the Department of
Natural Resources.  Members serve 3-year staggered terms with no
term limits.  They are reimbursed for necessary expenses and
receive $50 per day while in attendance at regular meetings.
The board will meet at least once a year; special meetings may
be called by 3 or more members.

Payments from the fund are capped at a total of $2 million per
site, and may not exceed 25% of the fund per site during any
fiscal year.  There is a $10,000 deductible for active
facilities and a $20,000 deductible for abandoned sites.  Moneys
from the fund may not be used if the release was caused by
illegal operating practices, if the facility operator obstructs
actions by the Department of Natural Resources, or if the
operator is in arrears for payments to the fund.  Fund moneys
may also not be used to compensate third parties for damages.

Operators of active facilities must register annually with the
board and pay an annual registration surcharge to the fund.  The
surcharge is set initially at $250, but may be adjusted by the
board after one year to an amount between $50 and $500.  Sellers
of solvents initially must pay a solvent surcharge of $2.50 per
gallon for chlorinated solvents and 25 cents per gallon for
nonchlorinated solvents, collected quarterly.  The solvent
surcharge may be adjusted by the board after one year to an
amount between $0.50 and $5.  All surcharges are subject to a
late fee of 15% plus 10% per annum interest on unpaid balances.
If the unobligated balance of the fund exceeds $4 million,
surcharges are not collected until the fund balance falls below
$2 million.  The board will report the status of the fund
annually to the General Assembly and the Governor.

The substitute also requires the board and the Hazardous Waste
Management Commission to establish, within one year, standards
for new dry cleaning facilities, including requirements for
solvent delivery, storage, and disposal; prohibition of solvent
discharges into sewers, septic tanks, or waters of the state;
and containment structures for dry cleaning units.  The board
and commission will also establish a schedule for upgrading
existing dry cleaning facilities to the new standards within 3
years and determine facility closure procedures and appropriate
completion requirements for corrective actions in response to a
release.

Violators of any provisions of this substitute are subject to
civil penalties of up to $500 per violation, payable to the fund.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of $0
in FY 2000, $455,822 in FY 2001, and $420,430 in FY 2002.
Estimated Net Effect on Dry-Cleaning Environmental Response
Trust Fund of $0 in FY 2000, FY 2001, and FY 2002.

HCS HB 180 -- DRY CLEANING ENVIRONMENTAL RESPONSE FUND

SPONSOR:  Wiggins (Hoppe)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Environment and Energy by a vote of 10 to 7.

This substitute establishes a Dry Cleaning Solvent Environmental
Response Trust Fund to provide moneys for investigation,
assessment, and remediation of releases of solvents from dry
cleaning facilities.  The fund is administered by a board
appointed by the Governor and approved by the Senate.  The 7
members include operators of small and large dry cleaning
facilities, a wholesale distributor of dry cleaning solvents, an
environmental engineer or scientist, a lessor of property used
for a dry cleaning facility, a representative of the general
public, and the director of the Department of Natural
Resources.  Members serve 3-year staggered terms with no term
limits.  They are reimbursed for necessary expenses and receive
$50 per day while in attendance at regular meetings.  The board
will meet at least once a year; special meetings may be called
by 3 or more members.

Payments from the fund are capped at a total of $2 million per
site, and may not exceed 25% of the fund per site during any
fiscal year.  There is a $10,000 deductible for active
facilities and a $20,000 deductible for abandoned sites.  Moneys
from the fund may not be used if the release was caused by
illegal operating practices, if the facility operator obstructs
actions by the Department of Natural Resources, or if the
operator is in arrears for payments to the fund.  Fund moneys
may also not be used to compensate third parties for damages.

Operators of active facilities must register annually with the
board and pay an annual registration surcharge to the fund.  The
surcharge is set initially at $500, but may be adjusted by the
board after one year to an amount between $100 and $1,000.
Sellers of solvents initially must pay a solvent surcharge of
$10 per gallon for chlorinated solvents and 50 cents per gallon
for nonchlorinated solvents, collected quarterly.  The solvent
surcharge may be adjusted by the board after one year to an
amount between $1 and $10.  All surcharges are subject to a late
fee of 15% plus 10% per annum interest on unpaid balances.  If
the unobligated balance of the fund exceeds $4 million,
surcharges are not collected until the fund balance falls below
$2 million.  The board will report the status of the fund
annually to the General Assembly and the Governor.

The substitute also requires the Hazardous Waste Management
Commission to establish, within one year, standards for new dry
cleaning facilities, including requirements for solvent
delivery, storage, and disposal; prohibition of solvent
discharges into sewers, septic tanks, or waters of the state;
and containment structures for dry cleaning units.  The
commission will also establish a schedule for upgrading existing
dry cleaning facilities to the new standards within 3 years and
determine facility closure procedures and appropriate completion
requirements for corrective actions in response to a release.

Violators of any provisions of this substitute are subject to
civil penalties of up to $500 per violation, payable to the fund.

FISCAL NOTE:  Estimated Net Effect on Dry-Cleaning Environmental
Response Trust Fund of $0 in FY 2000, FY 2001, and FY 2002.

PROPONENTS:  Supporters say that by establishing operational
standards and an environmental remediation fund, the bill
protects the environment and provides liability coverage for dry
cleaners and their landlords.

Testifying for the bill were Representative Hoppe; Mid-America
Fabric Care Association; West Oak Cleaners; Dry Cleaners
Exchange; Pride Cleaners, USA; and Dix Road Cleaners.

OPPONENTS:  There was no opposition voiced to the committee.

Terry Finger, Senior Legislative Analyst

HB 180 -- Dry Cleaning Environmental Response Commission

Sponsor:  Hoppe

This bill creates the Dry Cleaning Environmental Response
Commission within the Department of Natural Resources (DNR) to
address releases of dry cleaning solvents into soil or water.
The 7 commission members, appointed by the Governor and approved
by the Senate, include operators of small, medium, and large dry
cleaning facilities, a wholesale distributor of dry cleaning
solvents, an environmental engineer or scientist, a lessor of
property used for a dry cleaning facility, and the director of
DNR.  Members serve 3-year staggered terms with no term limits.
They are reimbursed for necessary expenses and receive $50 per
day while in attendance at regular meetings.  The commission
will meet at least once a year; special meetings may be called
by 3 or more members.

Within 180 days, the commission will establish standards for new
dry cleaning facilities, including requirements for solvent
delivery, storage, and disposal; prohibition of solvent
discharges into sewers, septic tanks, or waters of the state;
compliance with federal air emission standards; and containment
structures for dry cleaning units.  The commission will also
establish a schedule for upgrading existing dry cleaning
facilities to the new standards within 3 years and determine
facility closure procedures and appropriate completion
requirements for corrective actions in response to a release.

The bill also establishes a Dry Cleaning Solvent Environmental
Response Trust Fund to provide moneys for investigation,
assessment, and remediation of releases of solvents from dry
cleaning facilities.  The commission will establish priorities
for use of the fund.  Payments are capped at a total of $2
million per site, and may not exceed 25% of the fund per site
during any fiscal year.  There is a $10,000 deductible for
active facilities and a $20,000 deductible for abandoned sites.
Moneys from the fund may not be used if the release was caused
by illegal operating practices, if the facility operator
obstructs actions by DNR, or if the operator is in arrears for
payments to the fund.  Fund moneys may also not be used to
compensate third parties for damages.

Operators of active facilities must register annually with DNR
and pay an annual registration surcharge of $1,000 to the fund.
Sellers of solvents pay a solvent surcharge of $10 per gallon
for chlorinated solvents and $1 per gallon for nonchlorinated
solvents, collected quarterly.  Surcharges are subject to a late
fee of 15% plus 10% per annum interest on unpaid balances.  If
the unobligated balance of the fund exceeds $4 million,
surcharges are not collected until the fund balance falls below
$2 million.  Violators of any provisions of this bill are
subject to civil penalties of up to $500 per violation, payable
to the fund.  DNR will report the status of the fund annually to
the General Assembly and the Governor.