19-6-405.3 - Creation of Petroleum Storage Tank Loan Fund -- Purposes -- Loan eligibility -- Loan restrictions -- Rulemaking. - Utah Statutes

19-6-405.3. Creation of Petroleum Storage Tank Loan Fund -- Purposes -- Loaneligibility -- Loan restrictions -- Rulemaking.
(1) There is created a revolving loan fund known as the Petroleum Storage Tank LoanFund.
(2) The sources of money for the loan fund are:
(a) appropriations to the loan fund;
(b) principal and interest received from the repayment of loans made by the executivesecretary 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, money available inthe loan fund to a person to be used for:
(a) upgrading a petroleum storage tank;
(b) replacing an underground storage tank; or
(c) permanently closing an underground storage tank.
(4) A person may apply to the executive secretary for a loan under Subsection (3) if alltanks owned or operated by that person are in substantial compliance with all state and federalrequirements 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 meetthe 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 may not:
(a) be for more than $150,000 for all tanks at any one facility;
(b) be for more than $50,000 per tank;
(c) be for more than 80% of the total cost of:
(i) upgrading a tank;
(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 10 years;
(f) be made on the condition the loan applicant obtains adequate security for the loan asestablished 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, theboard shall make rules establishing:
(a) form, content, and procedure for a loan application;
(b) criteria and procedures for prioritizing a loan application;
(c) requirements and procedures for securing a loan;
(d) procedures for making a loan;
(e) procedures for administering and ensuring repayment of a loan, including latepayment penalties; and
(f) procedures for recovering on a defaulted loan.
(8) A decision by the executive secretary to loan money from the loan fund andotherwise administer the loan fund is not subject to Title 63G, Chapter 4, Administrative

Procedures Act.
(9) The Legislature shall appropriate money from the loan fund to the department for theadministration of the loan.
(10) The executive secretary may enter into an agreement with a public entity or privateorganization to perform a task associated with administration of the loan fund.

Amended by Chapter 186, 2010 General Session