HB 1282 – Excess Liability Trust Fund
Authored by Rep. Sean Eberhart (R-Shelbyville)

The bill provides that the administrator shall, not later than March 31, 2020, pay claims for costs from the Excess Liability Trust Fund (ELTF) for claims submitted within a specified period of time. It also establishes a formula for paying claims for reimbursement from the ELTF to claimants before the establishment of standards for reasonableness and cost effectiveness by the Underground Storage Tank Financial Assurance Board.  The bill provides that if a person submitted a claim after December 31, 2017, and before March 1, 2019, and was denied for the reason that the claimant was determined not to be an eligible party, the IDEM shall pay the ELTF claim for costs to a claimant.​ The bill also provides that for claims submitted before the establishment of standards for determining reasonableness and cost-effectiveness, the IDEM shall pay claims in the amount that is equal to the average percentage of the dollar amount of all claims submitted by a claimant and was reimbursed by the IDEM for the three years beginning January 1, 2015, and ending December 31, 2017​.

Chamber position: Oppose

The latest: The bill was heard in the House Environmental Affairs Committee on Wednesday, where it passed by a vote of 7-4. Committee chairman David Wolkins (R-Warsaw) voted against the bill. The measure was referred to the House Ways and Means Committee.

Indiana Chamber action/commentary: In testimony, the Chamber indicated its strong opposition to the bill, as this matter was determined to be one of the Chamber’s legislative priorities for 2020. We support fundamental and transformational changes to the Indiana Department of Environmental Management’s implementation and administration of Indiana’s ELTF funds to pay for the cleanup of leaking underground storage tanks. These changes are needed to protect the longevity of the ELTF.​ In 2017, the national average paid for these types of claims was $147,309. Yet, the average in Indiana for the same time period was $524,638. This bill would eliminate the ability of the administrator of the fund to deny claims that are determined not reasonable or cost effective. It would require payment to parties already determined not to be eligible parties. Those parties had an opportunity to appeal the determination at the administrative​ level.

Resource: Greg Ellis at (317) 264-6881 or email: gellis@indianachamber.com