Illinois General Assembly - Full Text of SB0171
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Full Text of SB0171  101st General Assembly




State of Illinois
2019 and 2020


Introduced 1/30/2019, by Sen. Iris Y. Martinez


415 ILCS 135/10
415 ILCS 135/40
415 ILCS 135/85

    Amends the Drycleaner Environmental Response Trust Fund Act. Provides that an active drycleaning facility that has previously received or is currently receiving reimbursement for the costs of a remedial action shall maintain continuous financial assurance for environmental liability coverage in the amount of at least $500,000 until the earlier of (i) January 1, 2030 (currently, January 1, 2020) or (ii) the date the Drycleaner Environmental Response Trust Fund Council determines the drycleaning facility is an inactive drycleaning facility. Extends the repeal date for specified fee and tax provisions of the Drycleaner Environmental Response Trust Fund Act to January 1, 2030 (currently, January 1, 2020). Effective immediately.

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1    AN ACT concerning safety.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Drycleaner Environmental Response Trust
5Fund Act is amended by changing Sections 10, 40, and 85 as
7    (415 ILCS 135/10)
8    Sec. 10. Drycleaner Environmental Response Trust Fund.
9    (a) The Drycleaner Environmental Response Trust Fund is
10created as a special fund in the State Treasury. Moneys
11deposited into the Fund shall be used solely for the purposes
12of the Council and for other purposes as provided in this Act.
13The Fund shall include moneys credited to the Fund under this
14Act and other moneys that by law may be credited to the Fund.
15The State Treasurer may invest Funds deposited into the Fund at
16the direction of the Council. Interest, income from the
17investments, and other income earned by the Fund shall be
18credited to and deposited into the Fund.
19    Pursuant to appropriation, all moneys in the Drycleaner
20Environmental Response Trust Fund shall be disbursed by the
21Agency to the Council for the purpose of making disbursements,
22if any, in accordance with this Act and for the purpose of
23paying the ordinary and contingent expenses of the Council.



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1After June 30, 1999, pursuant to appropriation, all moneys in
2the Drycleaner Environmental Response Trust Fund may be used by
3the Council for the purpose of making disbursements, if any, in
4accordance with this Act and for the purpose of paying the
5ordinary and contingent expenses of the Council.
6    The Fund may be divided into different accounts with
7different depositories to fulfill the purposes of the Act as
8determined by the Council.
9    Moneys in the Fund at the end of a State fiscal year shall
10be carried forward to the next fiscal year and shall not revert
11to the General Revenue Fund.
12    Notwithstanding any other law to the contrary, the
13Drycleaner Environmental Response Trust Fund is not subject to
14sweeps, administrative charge-backs, or any other fiscal
15maneuver that would in any way transfer any amounts from the
16Drycleaner Environmental Response Trust Fund into any other
17fund of the State.
18    (b) The specific purposes of the Fund include but are not
19limited to the following:
20        (1) To establish an account to fund remedial action of
21    drycleaning solvent releases from drycleaning facilities
22    as provided by Section 40.
23        (2) To establish an insurance account for insuring
24    environmental risks from releases from drycleaning
25    facilities within this State as provided by Section 45.
26    (c) The State, the General Revenue Fund, and any other Fund



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1of the State, other than the Drycleaner Environmental Response
2Trust Fund, shall not be liable for a claim or cause of action
3in connection with a drycleaning facility not owned or operated
4by the State or an agency of the State. All expenses incurred
5by the Fund shall be payable solely from the Fund and no
6liability or obligation shall be imposed upon the State. The
7State is not liable for a claim presented against the Fund.
8    (d) The liability of the Fund is limited to the extent of
9coverage provided by the account under which a claim is
10submitted, subject to the terms and conditions of that
11coverage. The liability of the Fund is further limited by the
12moneys made available to the Fund, and no remedy shall be
13ordered that would require the Fund to exceed its then current
14funding limitations to satisfy an award or which would restrict
15the availability of moneys for higher priority sites.
16    (e) Nothing in this Act shall be construed to limit,
17restrict, or affect the authority and powers of the Agency or
18another State agency or statute unless the State agency or
19statute is specifically referenced and the limitation is
20clearly set forth in this Act.
21(Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)
22    (415 ILCS 135/40)
23    Sec. 40. Remedial action account.
24    (a) The remedial action account is established to provide
25reimbursement to eligible claimants for drycleaning solvent



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1investigation, remedial action planning, and remedial action
2activities for existing drycleaning solvent contamination
3discovered at their drycleaning facilities.
4    (b) The following persons are eligible for reimbursement
5from the remedial action account:
6        (1) In the case of claimant who is the owner or
7    operator of an active drycleaning facility licensed by the
8    Council under this Act at the time of application for
9    remedial action benefits afforded under the Fund, the
10    claimant is only eligible for reimbursement of remedial
11    action costs incurred in connection with a release from
12    that drycleaning facility, subject to any other
13    limitations under this Act.
14        (2) In the case of a claimant who is the owner of an
15    inactive drycleaning facility and was the owner or operator
16    of the drycleaning facility when it was an active
17    drycleaning facility, the claimant is only eligible for
18    reimbursement of remedial action costs incurred in
19    connection with a release from the drycleaning facility,
20    subject to any other limitations under this Act.
21    (c) An eligible claimant requesting reimbursement from the
22remedial action account shall meet all of the following:
23        (1) The claimant demonstrates that the source of the
24    release is from the claimant's drycleaning facility.
25        (2) At the time the release was discovered by the
26    claimant, the claimant and the drycleaning facility were in



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1    compliance with the Agency reporting and technical
2    operating requirements.
3        (3) The claimant reported the release in a timely
4    manner to the Agency in accordance with State law.
5        (4) (Blank).
6        (5) If the claimant is the owner or operator of an
7    active drycleaning facility, the claimant has provided to
8    the Council proof of implementation and maintenance of the
9    following pollution prevention measures:
10            (A) That all drycleaning solvent wastes generated
11        at a drycleaning facility be managed in accordance with
12        applicable State waste management laws and rules.
13            (B) A prohibition on the discharge of wastewater
14        from drycleaning machines or of drycleaning solvent
15        from drycleaning operations to a sanitary sewer or
16        septic tank or to the surface or in groundwater.
17            (C) That every drycleaning facility:
18                (I) install a containment dike or other
19            containment structure around each machine, item of
20            equipment, drycleaning area, and portable waste
21            container in which any drycleaning solvent is
22            utilized, which shall be capable of containing
23            leaks, spills, or releases of drycleaning solvent
24            from that machine, item, area, or container. The
25            containment dike or other containment structure
26            shall be capable of at least the following: (i)



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1            containing a capacity of 110% of the drycleaning
2            solvent in the largest tank or vessel within the
3            machine; (ii) containing 100% of the drycleaning
4            solvent of each item of equipment or drycleaning
5            area; and (iii) containing 100% of the drycleaning
6            solvent of the largest portable waste container or
7            at least 10% of the total volume of the portable
8            waste containers stored within the containment
9            dike or structure, whichever is greater.
10                Petroleum underground storage tank systems
11            that are upgraded in accordance with USEPA upgrade
12            standards pursuant to 40 CFR Part 280 for the tanks
13            and related piping systems and use a leak detection
14            system approved by the USEPA or IEPA are exempt
15            from this secondary containment requirement; and
16                (II) seal or otherwise render impervious those
17            portions of diked floor surfaces on which a
18            drycleaning solvent may leak, spill, or otherwise
19            be released.
20            (D) A requirement that all drycleaning solvent
21        shall be delivered to drycleaning facilities by means
22        of closed, direct-coupled delivery systems.
23        (6) An active drycleaning facility has maintained
24    continuous financial assurance for environmental liability
25    coverage in the amount of at least $500,000 at least since
26    the date of award of benefits under this Section or July 1,



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1    2000, whichever is earlier. An uninsured drycleaning
2    facility that has filed an application for insurance with
3    the Fund by January 1, 2004, obtained insurance through
4    that application, and maintained that insurance coverage
5    continuously shall be considered to have conformed with the
6    requirements of this subdivision (6). To conform with this
7    requirement the applicant must pay the equivalent of the
8    total premiums due for the period beginning June 30, 2000
9    through the date of application plus a 20% penalty of the
10    total premiums due for that period.
11        (7) The release was discovered on or after July 1, 1997
12    and before July 1, 2006.
13    (d) A claimant shall submit a completed application form
14provided by the Council. The application shall contain
15documentation of activities, plans, and expenditures
16associated with the eligible costs incurred in response to a
17release of drycleaning solvent from a drycleaning facility.
18Application for remedial action account benefits must be
19submitted to the Council on or before June 30, 2005.
20    (e) Claimants shall be subject to the following deductible
21requirements, unless modified pursuant to the Council's
22authority under Section 75:
23        (1) An eligible claimant submitting a claim for an
24    active drycleaning facility is responsible for the first
25    $5,000 of eligible investigation costs and for the first
26    $10,000 of eligible remedial action costs incurred in



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1    connection with the release from the drycleaning facility
2    and is only eligible for reimbursement for costs that
3    exceed those amounts, subject to any other limitations of
4    this Act.
5        (2) An eligible claimant submitting a claim for an
6    inactive drycleaning facility is responsible for the first
7    $10,000 of eligible investigation costs and for the first
8    $10,000 of eligible remedial action costs incurred in
9    connection with the release from that drycleaning
10    facility, and is only eligible for reimbursement for costs
11    that exceed those amounts, subject to any other limitations
12    of this Act.
13    (f) Claimants are subject to the following limitations on
15        (1) Subsequent to meeting the deductible requirements
16    of subsection (e), and pursuant to the requirements of
17    Section 75, reimbursement shall not exceed $300,000 per
18    active drycleaning facility and $50,000 per inactive
19    drycleaning facility.
20        (2) A contract in which one of the parties to the
21    contract is a claimant, for goods or services that may be
22    payable or reimbursable from the Council, is void and
23    unenforceable unless and until the Council has found that
24    the contract terms are within the range of usual and
25    customary rates for similar or equivalent goods or services
26    within this State and has found that the goods or services



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1    are necessary for the claimant to comply with Council
2    standards or other applicable regulatory standards.
3        (3) A claimant may appoint the Council as an agent for
4    the purposes of negotiating contracts with suppliers of
5    goods or services reimbursable by the Fund. The Council may
6    select another contractor for goods or services other than
7    the one offered by the claimant if the scope of the
8    proposed work or actual work of the claimant's offered
9    contractor does not reflect the quality of workmanship
10    required or if the costs are determined to be excessive, as
11    determined by the Council.
12        (4) The Council may require a claimant to obtain and
13    submit 3 bids and may require specific terms and conditions
14    in a contract subject to approval.
15        (5) The Council may enter into a contract or an
16    exclusive contract with the supplier of goods or services
17    required by a claimant or class of claimants, in connection
18    with an expense reimbursable from the Fund, for a specified
19    good or service at a gross maximum price or fixed rate, and
20    may limit reimbursement accordingly.
21        (6) Unless emergency conditions exist, a service
22    provider shall obtain the Council's approval of the budget
23    for the remediation work before commencing the work. No
24    expense incurred that is above the budgeted amount shall be
25    paid unless the Council approves the expense prior to its
26    being incurred. All invoices and bills relating to the



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1    remediation work shall be submitted with appropriate
2    documentation, as deemed necessary by the Council.
3        (7) Neither the Council nor an eligible claimant is
4    responsible for payment for costs incurred that have not
5    been previously approved by the Council, unless an
6    emergency exists.
7        (8) The Council may determine the usual and customary
8    costs of each item for which reimbursement may be awarded
9    under this Section. The Council may revise the usual and
10    customary costs from time to time as necessary, but costs
11    submitted for reimbursement shall be subject to the rates
12    in effect at the time the costs were incurred.
13        (9) If a claimant has pollution liability insurance
14    coverage other than coverage provided by the insurance
15    account under this Act, that coverage shall be primary.
16    Reimbursement from the remedial account shall be limited to
17    the deductible amounts under the primary coverage and the
18    amount that exceeds the policy limits of the primary
19    coverage, subject to the deductible amounts of this Act. If
20    there is a dispute between the claimant and the primary
21    insurance provider, reimbursement from the remedial action
22    account may be made to the claimant after the claimant
23    assigns all of his or her interests in the insurance
24    coverage to the Council.
25    (g) The source of funds for the remedial action account
26shall be moneys allocated to the account by the Council



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1according to the Fund budget approved by the Council.
2    (h) A drycleaning facility will be classified as active or
3inactive for purposes of determining benefits under this
4Section based on the status of the facility on the date a claim
5is filed.
6    (i) Eligible claimants shall conduct remedial action in
7accordance with the Site Remediation Program under the
8Environmental Protection Act and Part 740 of Title 35 of the
9Illinois Administrative Code and the Tiered Approach to Cleanup
10Objectives under Part 742 of Title 35 of the Illinois
11Administrative Code.
12    (j) Effective January 1, 2012, an active drycleaning
13facility that has previously received or is currently receiving
14reimbursement for the costs of a remedial action, as defined in
15this Act, shall maintain continuous financial assurance for
16environmental liability coverage in the amount of at least
17$500,000 until the earlier of (i) January 1, 2030 2020 or (ii)
18the date the Council determines the drycleaning facility is an
19inactive drycleaning facility. Failure to comply with this
20requirement will result in the revocation of the drycleaning
21facility's existing license and in the inability of the
22drycleaning facility to obtain or renew a license under Section
2360 of this Act.
24(Source: P.A. 96-774, eff. 1-1-10; 97-377, eff. 1-1-12.)
25    (415 ILCS 135/85)



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1    Sec. 85. Repeal of fee and tax provisions. Sections 60 and
265 of this Act are repealed on January 1, 2030 2020.
3(Source: P.A. 93-201, eff. 1-1-04.)
4    Section 99. Effective date. This Act takes effect upon
5becoming law.