SB250 Alabama 2022 Session

Summary

Primary Sponsor

Jimmy Holley

Republican

Session

Regular Session 2022

Title

Drycleaning and Environmental Response Trust Fund Act, all owners, operators, and wholesale distributors required to participate in program, former owner or operator may pay annual fee to participate, Secs. 22-30D-3 to 22-30D-7, inclusive, 22-30D-9 to 22-30D-12, inclusive, am'd.

Summary

SB250 would require all active and former Alabama drycleaning-related businesses to participate in the Drycleaning Environmental Response Trust Fund, funding coverage through new registration fees and extending eligibility to former owners who pay annual fees.

What This Bill Does

The bill amends the Drycleaning Environmental Response Trust Fund Act to mandate participation by owners, operators, and wholesale distributors, with former owners eligible by paying an annual fee. It creates and changes registration and annual fees funded through the Department of Revenue, to support investigation, assessment, and remediation of drycleaning-related contamination. It establishes cost-sharing rules, deductibles, spending limits, and liability protections for covered parties, and it sets governance and reporting requirements; the act takes effect January 1, 2023.

Who It Affects

• Active drycleaning facility owners/operators and wholesale distributors who elect to be covered will pay annual registration fees (and, for new or acquired facilities, additional fees) and participate in the fund to cover cleanup costs.
• Adjacent landowners and impacted third parties may seek payment from the fund for eligible investigation, assessment, and remediation costs and are affected by eligibility rules, site registration, and deductibles.

Key Provisions

• Mandatory participation: owners, operators, and wholesale distributors must elect to be covered by the act; former owners may join by paying an annual registration fee.
• Fee structure: owners/operators pay 2% of gross receipts in the state up to a $25,000 annual cap; wholesale distributors pay $5,000 per year; new and acquired facilities incur additional one-time and ongoing fees; retirees pay $500 annually; abandoned facilities incur $5,000 per site per year until no action remains.
• Deductibles and cost sharing: sites have deductibles (e.g., owners/operators $10,000–$25,000; wholesale distributors $50,000); adjacent landowners do not pay deductibles; the fund covers costs above deductibles through approved claims.
• Funding limits and emergencies: expenditures are limited per site per year and per site overall; fund balance requirements prevent depletion except in emergencies; the board can approve higher costs to address imminent and substantial endangerment.
• Scope and use of the fund: the fund funds only drycleaning-related contamination investigations, assessments, and remediation; no funds for non-drycleaning contamination; a priority and risk-based approach guides actions; allows use of innovative technology where appropriate.
• Liability and rights: covered parties have limited state liability for preexisting releases; no small businesses are liable to certain third parties for contamination costs; rights to indemnification and due care standards are preserved where applicable.
• Administration and oversight: the fund is a self-insurance program administered by the board with department oversight; registration fees are collected by the Department of Revenue; annual audits are required; information is subject to confidentiality rules.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Drycleaning Environmental Response Trust Fund