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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO WATERS AND NAVIGATION -- OIL SPILL PREVENTION,

ADMINISTRATION AND RESPONSE FUND

     

     Introduced By: Senators DiMario, Euer, Pearson, Bissaillon, Britto, LaMountain,
Valverde, Kallman, Miller, and DiPalma

     Date Introduced: February 12, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 42-6.2-3.1 of the General Laws in Chapter 42-6.2 entitled "2021 Act

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on Climate" is hereby amended to read as follows:

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     42-6.2-3.1. Funding for the council.

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     There is hereby established a restricted receipt account in the general fund of the state and

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housed in the budget of the department of administration entitled “RGGI-executive climate change

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coordinating council projects.” The express purpose of this account is to record receipts and

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expenditures allocated pursuant to § §§ 23-82-6(a)(7), 23-82-6(a)(8), 46-12.9-11(a), and 46-12.9-

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11(b).

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     The Rhode Island executive climate change coordinating council shall report annually to

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the governor and general assembly within one hundred twenty (120) days of the end of each

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calendar year how the funds were used to achieve the statutory objectives of the 2021 Act on

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Climate.

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     SECTION 2. Section 46-12.7-13 of the General Laws in Chapter 46-12.7 entitled "Oil Spill

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Prevention, Administration and Response Fund" is hereby amended to read as follows:

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     46-12.7-13. Preventative uses of the fund.

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     (a) Recognizing the importance of the development of readiness and response programs,

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the legislature may allocate not more than two hundred fifty thousand dollars ($250,000) per annum

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of the amount then currently in the fund to be devoted to research and development in the causes,

 

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effects and removal of pollution caused by oil, petroleum products and their by-products on the

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marine environment and the monitoring of baseline environmental and economic conditions.

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     (b) The two hundred fifty thousand dollars ($250,000) per annum allocated for research,

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development, and monitoring shall be allocated to the Department of Environmental Management

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and expended consistent with the purposes of § 46-23.2-3 entitled “The Comprehensive Watershed

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and Marine Monitoring Act of 2004.”

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     (c) The remaining moneys in the fund which the legislature may allocate to research,

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development, and monitoring shall be used for purposes approved by the director. Such purpose

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may include, but shall not be limited to:

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     (1) Sensitive area data management and mapping;

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     (2) Scientific research and monitoring which is directly relevant to state legislation; and

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     (3) Development of more effective removal and containment technologies, appropriate for

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the cleanup and containment of refined fuel oils.; and

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     (4) Supporting the executive climate change coordinating council (EC4) efforts to reduce

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climate emissions and meet the act on climate goals.

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     SECTION 3. Sections 46-12.9-5 and 46-12.9-11 of the General Laws in Chapter 46-12.9

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entitled "Rhode Island Underground Storage Tank Financial Responsibility Act" are hereby

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amended to read as follows:

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     46-12.9-5. Purpose of fund Purposes of fund.

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     (a) The purpose purposes of the fund shall be to:

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     (1) facilitate Facilitate the clean-up of releases from leaking underground storage tanks,

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underground storage tank systems, including those located on sites in order to protect the

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environment, including drinking water supplies and public health.; and

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     (2) Support projects and initiatives to reduce emissions and meet the act on climate goals

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as directed by the executive climate change coordinating council (EC4).

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     (b) The fund shall provide reimbursement to responsible parties for the eligible costs

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incurred by them as a result of releases of certain petroleum from underground storage tanks or

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underground storage tank systems as provided herein. Monies in the fund shall be dispensed only

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upon the order of the department for the following purposes:

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     (1) The fund shall pay not more than one million dollars ($1,000,000) per incident, and up

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to two million dollars ($2,000,000) in the aggregate, for damages of eligible costs, as defined in

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regulations promulgated hereunder and, as further defined in § 46-12.9-3, excluding legal costs and

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expenses, incurred by a responsible party as a result of a release of petroleum from an underground

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storage tank or underground storage tank system; provided, however, that a responsible party may

 

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be responsible for the first twenty thousand dollars ($20,000) of said eligible costs;

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     (2) Reimbursement for any third-party claim including, but not limited to, claims for bodily

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injury, property damage, and damage to natural resources that are asserted against a responsible

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party and that have arisen as a result of a release of petroleum from an underground storage tank

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or underground storage tank system, in an amount not to exceed one million dollars ($1,000,000)

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for each release as set forth in subsection (b)(1); provided, that such claims are found by the

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department to be justified, reasonable, related to the release of petroleum, and not excessive or

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spurious in nature;

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     (3) Costs incurred by the department in carrying out the investigative, remedial, and

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corrective action activities at sites of a petroleum release associated with an underground storage

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tank or underground storage tank system where the responsible party fails to comply with an order

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of the department to undertake such activities. In the event of such failure or documented inability

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to comply, the department may access the fund to perform the ordered work and may proceed to

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recover from the responsible party, on behalf of the fund, any amount expended from the fund by

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the department;

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     (4) Nothing contained in this chapter shall be construed to prevent subrogation by the state

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of Rhode Island against any responsible party, other than the owner and/or operator, for all sums

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of money that the fund shall be obligated to pay hereunder, plus reasonable attorney’s fees and

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costs of litigation and such right of subrogation is hereby created; and

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     (5) Eligible costs incurred by the department to support the fund, including, but not limited

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to, all personnel support to process and review claims in order to formulate recommendations for

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reimbursement for consideration; provided, however, that no more than five hundred and fifty

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thousand dollars ($550,000) shall be dispensed from the fund for administrative purposes during

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any fiscal year. The department shall directly access the fund, pursuant to the limits set forth in

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subsection (b)(1) of this section, to pay for such expenses.

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     (6) [Deleted by P.L. 2016, ch. 148, § 1 and P.L. 2016, ch. 160, § 1].

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     (7) Projects and initiatives that have been approved by the executive climate change

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coordinating council, and have been determined to reduce emissions and support the act on climate.

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     46-12.9-11. Fundings.

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     (a) There is hereby imposed an environmental protection regulatory fee of one cent ($0.01)

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per gallon payable of motor fuel, to be collected by distributors of motor fuel when the product is

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sold to owners and/or operators of underground storage tanks. Each distributor shall be responsible

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to the tax administrator for the collection of the regulatory fee, and if the distributor is unable to

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recover the fee from the person who ordered the product, the distributor shall nonetheless remit to

 

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the tax administrator the regulatory fee associated with the delivery. In accordance with the

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regulations to be promulgated hereunder, the fee shall be collected, reported, and paid to the Rhode

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Island division of taxation as a separate, line-item entry, on a quarterly tax report by those persons

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charged with the collection, reporting, and payment of motor fuels taxes. This fee shall be

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administered and collected by the division of taxation. Notwithstanding the provisions of this

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section, the fee shall not be applicable to purchases by the United States government.

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     (b)(1) Of the one-cent-per-gallon ($0.01) environmental protection regulatory fee collected

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by distributors of motor fuel and paid to the Rhode Island division of taxation, one-half cent

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($0.005) shall be deposited in the intermodal surface transportation fund to be distributed pursuant

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to § 31-36-20 and one-half cent ($0.005) shall be paid to the fund. All environmental protection

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regulatory fees paid to the department shall be received by the department, which shall keep such

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money in a distinct, interest-bearing, restricted-receipt account to the credit of, and for the exclusive

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use of, the fund provided that for the period January 1, 2008, through June 30, 2008, all revenues

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generated by the environmental protection regulatory fee, up to a maximum of two million dollars

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($2,000,000), shall be deposited into the general fund. In fiscal year 2009, all revenues generated

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by the environmental protection regulatory fee, up to a maximum equivalent to two million two

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hundred thirty-seven thousand five hundred dollars ($2,237,500), shall be deposited into the

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intermodal surface transportation fund. All fees collected may be invested as provided by law and

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all interest received on such investment shall be credited to the fund.

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     (2) Commencing in fiscal year 2025, revenues generated by the environmental protection

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regulatory fee, up to a maximum equivalent of two million dollars ($2,000,000), shall be allocated

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to the executive climate change coordinating council (EC4) and in subsequent fiscal years, up to a

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maximum of one million dollars ($1,000,000) shall be allocated.

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     (c) When the fund reaches the sum of eight million dollars ($8,000,000), the imposition of

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the fee set forth in this chapter shall be suspended, and the division of taxation shall notify all

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persons responsible for the collection, reporting, and payments of the fee of the suspension. In the

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event that the account balance of the fund subsequently is reduced to a sum less than five million

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dollars ($5,000,000) as a result of fund activity, the fee shall be reinstated by the division of

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taxation, following proper notice thereof, and once reinstated, the collection, reporting, and

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payment of the fee shall continue until the account balance again reaches the sum of eight million

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dollars ($8,000,000).

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     (d) Upon the determination by the department that the fund has reached a balance sufficient

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to satisfy all pending or future claims, the department shall recommend to the general assembly the

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discontinuation of the imposition of the fee created in this section.

 

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     SECTION 4. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO WATERS AND NAVIGATION -- OIL SPILL PREVENTION,

ADMINISTRATION AND RESPONSE FUND

***

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     This act would provide that the funds allocated to the Rhode Island Underground Storage

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Tank Financial Responsibility Act be used to support the Executive Climate Change Coordinating

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Council (EC4) efforts to reduce climate emissions and meet the Act on Climate goals and allocate,

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in fiscal year 2025, the sum of two million dollars ($2,000,000) to the Executive Climate Change

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Coordinating Council (EC4) and up to one million dollars ($1,000,000) per fiscal year thereafter

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for that purpose. This act would also authorize the use of funds from the oil spill prevention,

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administration and response fund to support the efforts of the EC4

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     This act would take effect upon passage.

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