ARC 9937C

ARC 9937C

ENVIRONMENTAL PROTECTION COMMISSION[567]

Notice of Intended Action

Proposing rulemaking related to financial responsibility for underground storage tanks
and providing an opportunity for public comment

    The Environmental Protection Commission (Commission) hereby proposes to rescind Chapter 136, “Financial Responsibility for Underground Storage Tanks,” Iowa Administrative Code, and to adopt a new Chapter 136 with the same title.

Legal Authority for Rulemaking

    This rulemaking is proposed under the authority provided in Iowa Code section 455B.474.

State or Federal Law Implemented

    This rulemaking implements, in whole or in part, Iowa Code chapter 455B and 40 CFR parts 280 and 281.

Purpose and Summary

    Proposed Chapter 136 establishes financial responsibility requirements for owners and operators of petroleum underground storage tanks (USTs).

    The purpose of these rules is to ensure that owners and operators of petroleum USTs can demonstrate financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from operation of petroleum USTs. Proposed Chapter 136 has been reviewed consistent with Executive Order 10. Unnecessary and obsolete rules have been removed, and updates and clarification have been made.

    Iowa’s UST rules have been approved by the U.S. Environmental Protection Agency into Iowa’s required State Program Approval.

Regulatory Analysis

    A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on September 3, 2025. A public hearing was held on the following date(s):

     ?   September 24, 2025

Fiscal Impact

    This rulemaking has no fiscal impact to the State of Iowa.

Jobs Impact

    After analysis and review of this rulemaking, no impact on jobs has been found.

Waivers

    Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any, pursuant to 567—Chapter 13.

Public Comment

    Any interested person may submit written comments concerning this proposed rulemaking, which must be received by the Department of Natural Resources (Department) no later than 4:30 p.m. on January 29, 2026. Comments should be directed to:

    Free Language Access: If you speak a non-English language, the Department offers language assistance services free of charge. Contact the Department at [email protected].

    Servicios gratuitos de asistencia lingüística: Si habla un idioma que no sea el inglés, los servicios de asistencia lingüística están disponibles de forma gratuita. Comuníquese con el Departamento al [email protected].

Public Hearing

    Public hearings at which persons may present their views orally or in writing will be held as follows:

    Persons who wish to attend a public hearing should contact Keith Wilken at [email protected]. A link will be provided prior to the hearing. Persons who wish to make oral comments at the public hearing must submit a request to Keith Wilken prior to the hearing to facilitate an orderly hearing.

    Persons who wish to make oral comments at a public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.

    Any persons who intend to attend a hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs.

    Free Language Assistance: If you need assistance in a language other than English, contact the Department at [email protected] or [email protected] or by telephone at 515.681.0794 at least seven days before the event.

    Asistencia lingüística gratuita: Si necesita ayuda en un idioma que no sea inglés, comuníquese con el Departamento al [email protected] o [email protected] o por teléfono a 515.681.0794 al menos siete días antes del evento.

Review by Administrative Rules Review Committee

    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

    The following rulemaking action is proposed:

    ITEM 1.  Rescind 567—Chapter 136 and adopt the following new chapter in lieu thereof:

CHAPTER 136

FINANCIAL RESPONSIBILITY FOR UNDERGROUND STORAGE TANKS

567—136.1(455B) Applicability.

    136.1(1) This chapter applies to owners and operators of all petroleum underground storage tank (UST) systems, except as otherwise provided in this rule.

    136.1(2) State and federal government entities whose debts and liabilities are the debts and liabilities of a state or the United States are exempt from the requirements of this chapter.

    136.1(3) The requirements of this chapter do not apply to owners and operators of farm or residential tanks of 1,100 gallons or less capacity installed prior to July 1, 1987, or any UST system described in 567—paragraph 135.1(3)“b” or 567—subparagraph 135.1(3)“c”(1), “c”(3) or “c”(4).

567—136.2(455B) Policy; adoption by reference.

    136.2(1) It is the policy of the commission to ensure consistency, equity, and efficiency in providing financial responsibility for Iowans and the businesses providing services to Iowans that owners and operators of UST systems in this state must comply with the provisions of the federal rules requiring and regulating the financial assurance of UST systems. This rule shall be interpreted in a manner consistent with this policy.

    136.2(2) The commission hereby adopts by reference 40 CFR Chapter I, Subchapter I, Part 280, Subpart H (2015), subject to the following conditions:

    a.  All uses of “Agency,” “Environmental Protection Agency,” “EPA,” and “implementing agency,” and any reference to the regional offices of the Environmental Protection Agency, shall be replaced with “Department of Natural Resources,” except where the context of the rule requires notice or submission to both federal and state entities, in which case the replacement language shall be in addition to the original language.

    b.  All uses of “Administrator” and “regional administrator,” and any reference to the designee of either, are replaced with “the director of the Department of Natural Resources or their designee,” except where the context of the rule requires notice or submission to both federal and state entities, in which case the replacement language shall be in addition to the original language.

    c.  40 CFR 280.100 is not adopted by reference.

    d.  40 CFR 280.101 is not adopted by reference.

567—136.3(455B) Additional requirements.

    136.3(1) Notice of extended reporting. In any written final cancellation or nonrenewal notice, an entity that provides insurance pursuant to this chapter shall notify the primary insured party and any additional named insured parties of the six-month extended reporting expiration date provided in 40 CFR 280.97 (2015).

    136.3(2) Notice and claim by the department. Notwithstanding any other requirement or limit in 40 CFR Chapter I, Subchapter I, Part 280, Subpart H (2015), timely notice of a release and claim for coverage to the insurer by the department of natural resources shall be deemed sufficient notice on behalf of the insured under the terms, conditions, and exclusions of a policy issued to demonstrate compliance with this chapter. Notice by the department shall not modify or enlarge the terms, conditions, and exclusions of coverage, but is only intended to preserve coverage to which the insured may otherwise be entitled under the policy.

These rules are intended to implement Iowa Code sections 455B.424 and 455B.474.