19-6-405.3.   Creation of Petroleum Storage Tank Loan Fund -- Purposes -- Loan eligibility -- Loan restrictions -- Rulemaking.
     (1) There is created the revolving loan fund entitled the Petroleum Storage Tank Loan Fund.
     (2) The sources of monies for the loan fund are:
     (a) appropriations to the loan fund;
     (b) principal and interest received from the repayment of loans made by the executive secretary under Subsection (3); and
     (c) all investment income derived from money in the fund.
     (3) The executive secretary may loan, in accordance with this section, monies available in the loan fund to persons to be used for:
     (a) upgrading petroleum storage tanks and associated piping with corrosion protection, or spill and overfill prevention equipment as necessary to meet the federal deadline required under 40 CFR 280.21;
     (b) replacing underground storage tanks; or
     (c) permanently closing underground storage tanks.
     (4) A person may apply to the executive secretary for a loan under Subsection (3) if all tanks owned or operated by that person are in substantial compliance with all state and federal requirements or will be brought into substantial compliance using money from the loan fund.
     (5) The executive secretary shall consider loan applications under Subsection (4) to meet the following objectives:
     (a) support availability of gasoline in rural parts of the state;
     (b) support small businesses; and
     (c) reduce the threat of a petroleum release endangering the environment.
     (6) Loans made under this section shall:
     (a) be for no more than $45,000 for all tanks at any one facility;
     (b) be for no more than $15,000 per tank;
     (c) be for no more than 80% of the total cost of:
     (i) upgrading a tank and associated piping to meet requirements of 40 CFR 280.21;
     (ii) replacing the underground storage tank; or
     (iii) permanently closing the underground storage tank;
     (d) have a fixed annual interest rate of 3%;
     (e) have a term no longer than ten years;
     (f) be made on the condition the loan applicant obtains adequate security for the loan as established by board rule under Subsection (7); and
     (g) comply with rules made by the board under Subsection (7).
     (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the board shall make rules establishing:
     (a) form, content, and procedure for loan applications;
     (b) criteria and procedures for prioritizing loan applications;
     (c) requirements and procedures for securing loans;
     (d) procedures for making the loans;
     (e) procedures for administering and ensuring repayment of loans, including late payment penalties; and
     (f) procedures for recovering on defaulted loans.

     (8) The decisions of the executive secretary in loaning money from the loan fund and otherwise administering the loan fund are not subject to Title 63G, Chapter 4, Administrative Procedures Act.
     (9) The Legislature shall appropriate monies for administration of the loan fund to the department from the loan fund.
     (10) The executive secretary may enter into agreements with public entities or private organizations to perform any tasks associated with administration of the loan fund.

Amended by Chapter 382, 2008 General Session
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Last revised: Thursday, May 28, 2009